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July 2010

Mike Gilliland, Chairman & CEO


Presorted Standard U.S. Postage PAID San Dimas, CA Permit No. 410





Ron Parucki, Fry's Food Stores ­ Chairman Jim Tooms, IGW L.L.C. - 1st Vice Chairman Jeff Nelson, Co-Sales Company - 2nd Vice Chairman Doug Sanders, Sprouts Farmers Market - 3rd Vice Chairman Geoff Stickler, Express Foods ­ Treasurer Don Olsen, Olsens IGA ­ Past Chairman

JULY 2010


FEATURES Barrel O' Fun... "better than ever" ........................................16 Sunflower Farmers Market... Serious Food at Silly Prices ..........12 COLUMNS Around Arizona History ........................................................8 www.commentary ............................................................10 DEPARTMENTS Industry Calendar ..............................................................17 Industry & Government ........................................................6 Names in the News ..........................................................20 WORTH A LOOK AFMA Board Member Profile ..............................................17 AFMA's Summer Golf Classic ........................................23 - 24 Art's Angle ........................................................................4 Department of Weights & Measures Visits AFMA ......................9 ADVERTISERS ACS ................................14 Arizona Lottery ....................5 Bar S Foods ......................18 Blue Bell............................14 Blue Bunny ..........................9 Crescent Crown ..................2 Daisy Brand ......................22


Frank Cannistra, Safeway Joe Cotroneo, Crescent Crown Distributing Shane Dorcheus, Albertsons L.L.C. Louis Diab, Circle K Ray Kruckner, 7-Eleven Mark Miller, Hensley Randy Ong, Sunflower Farmers Market Mike Provenzano, Ranch Markets T.J. Shope, Shope's IGA Bette Taylor, Foodtown IGA Tim Thomas, The Arizona Republic


AFMA STAFF Debbie Roth - General Manager Raynetta Hughes - Administrative Coordinator Paul Bancroft-Turner - Marketing Coordinator ACR STAFF Dan Tennessen - Director Greg Colyar - Field Agent Judy Lettow - Customer Care/Office Manager JOURNAL STAFF Debbie Roth - Editor Lisa Schnebly Heidinger - Feature Writer Jim Marshall - Photographer Layton Printing - Printer JMT Graphics - Graphic Design

Dreyer's ............................15 Klein's Pickle ........................9 Mission Foods....................19 Nestle Waters....................11 Summer Golf Classic in the Pines..................23 - 24

ARIZONA FOOD MARKETING ALLIANCE 120 E. PIERCE ST., PHOENIX, AZ 85004 602.252.9761 · FAX: 602.252.9021 [email protected] WWW.AFMAAZ.ORG ANNUAL SUBSCRIPTION $50


Mike Gilliland, Chairman & CEO

Sunflower Farmers Market

Art's Angle

"It's the Economy Stupid!"

-- James Carville

When Carville took over Bill Clinton's 1992 Presidential Campaign he made it crystal clear, job number one was to make sure Clinton was not linked to Jimmy Carter. Remember the 18% mortgage interest rates! Carter's four years were very hard on the economy. So that his campaign remained clear and focused Carville wrote the words, "It's the economy, stupid!" across the top of the white board in the war room at the Clinton campaign headquarters in Little Rock, Arkansas. Some eighteen years later it would serve us well as retailers to write Carville's four word impact statement across the top of white boards in our meeting rooms. Recently two heavy hitters in the consumer products and retail industr y have made major changes to their long standing and historically successful business plans. At an investors conference A.G. Lafley, CEO of Proctor and Gamble announced they would expand their "value selection" which now includes only Luvs diapers and Gain detergent. Since those two brands were converted to value pricing, their sales have significantly exceeded P & G's premium brands. "You have to see reality as it really is," Lafley commented explaining the change in marketing strategy. Until very recently the Costco business plan has not allowed for the acceptance of government issued food stamps, too expensive to handle in their highly efficient business model. However, recently Costco, CEO Jim Sinegal announced, "We are mindful that many of our fellow citizens are facing unprecedented economic challenges at this time and it seemed to us it was worth reconsidering at this point". Costco will be testing their revised plan in New York City stores. It may be a stretch, but would you agree Lafley and Senigal could have simply said, "It's the economy, stupid!" We are modifying our business plan to fit today's consumer. I am intrigued by what I see happening in the retail grocery universe. There is a definite separation in sales growth between those retailers offering low everyday pricing and the traditional conventional supermarket who historically had built sales around a weekly ad. A review of best food day ads of conventional supermarkets recently showed the following. The ads, inserts in this case ran 6 to 8 pages and included 150 to 350 items and was effective for seven days. Simple enough! Not so much. Further review show some interesting twists and turns the customer has to take to benefit from these bargains. Although all ads clearly stated prices effective Wednesday through Tuesday here is what the fine print said. Several items predominantly displayed on the front page were only in effect Friday, Saturday and Sunday. "Mrs. Customer we're sorry you made your $150.00 purchase on Tuesday. Those prices are not for you!" A special on national brand beverages 4/$11.00. "Don't forget the coupon prominently displayed next to the price, and you may need a calculator!" Buy one, get one free with no prices. How does the consumer know the value? Coupons for items that required a minimum purchase. Items that when purchased result in cash rebates. Saturday only pricing on ready to eat meals. Special pricing running Sunday through Saturday. Coupons good for eight days only. The point is many supermarkets are making the customer jump through hoops to save money and based on sales and transaction counts they are leaving conventional supermarkets for everyday low price formats. Public supermarket chains are showing identical year over year sales ranging from +2% to -6%. Dollar stores reporting up to 30% of their sales in food categories are reporting identical year over year sales increases in double digits. Wal-Mart's food sales are pushing 50% of total sales and last quarter sales were up 4%, identical stores. WINCO is a private company, specifically an ESOP so we don't see their numbers. I can tell you this, their managers are wearing those, "We're up 10% smiles". Low price formats tend to advertise on a limited basis. It appears the "rules of engagement" are changing. The customer has defined value as price. It has often been said that customers vote with their feet. Don't give them a reason to leave your store by making it difficult for them to get your best price. Keep your marketing plan simple. "It's the economy, stupid!" Chase those simple sales.

After a 40-year grocery career that included executive level positions with Safeway, Lucky Stores, Appletree Markets and SaveMart/Food Maxx, Art Patch retired from the grocery retail business in 2007. He is on the ExecuForce Team of Encore associates, is a counselor for SCORE, helping new and emerging businesses, and Chairman of the Board of the Stanislaus/San Joaquin County Food Bank.

Page 4 · Arizona Food Industry Journal · July 2010

.... a summary of the issues that affect your business.

"Nearly all men can stand adversity, but if you want to test a man's character, give him power." --Abraham Lincoln



US Supreme Court Stays Clean Elections Matching Funds

The US Supreme Court issued a temporary order today which has the effect of stopping the matching funds provisions for Arizona candidates who are campaigning for election under the publicly funded Clean Elections system in Arizona. The most noteworthy consequence of the order is to prohibit the issuance of campaign matching funds for two of three Republican candidates for Governor, including incumbent and current front runner Governor Janice Brewer. The amount of the potential match is over one million dollars. Also affected is the Democrat candidate for Governor, Attorney General Terry Goddard. The match provision was placed in play when a relatively unknown businessman from Prescott, Arizona, "Buz" Mills, contributed over two million dollars from personal funds to finance his run for the office. All of the other statewide races are also affected by the order, as well as all state legislative races. All though we have heard no further information from the various campaigns we anticipate attorneys for both sides of the matter will be speaking out on possible efforts to convince the Supreme Court to reconsider the order or to move for an immediate final consideration of the matter. The case originally was tried in the Federal District Court in Phoenix which resulted in a ruling that terminated or stayed the matching funds provisions. An appeal to the Ninth Circuit Court of Appeals in San Francisco reversed the lower court ruling in a unanimous decision by a three Judge panel of the Ninth Circuit Court of Appeals. We will attempt to keep you informed about the developments in the case.

we've addressed the concerns of states regarding their ability to provide services to the unemployed and the concerns of small financial firms regarding their ability to provide services to the unbanked. We've exempted states from interchange regulations and have included protections to ensure those who can at least afford it are protected from unnecessary fees. These changes make a strong amendment stronger and I urge all conferees to support them." Under the agreement, the new language will be offered by the House to the Senate during the conference negotiations on the Wall Street reform package as early as today. It is expected to be debated and eventually accepted by the conference committee, subject to ratification by the Committee Chairmen, and become the final language regarding interchange fees. The conference committee hopes to finish its work on the bill this week and the House and Senate are expected to pass the final legislation before July 4. "The banks will howl and still try to water down and strip this compromise out," said Beckwith. "We must have grassroots support for this deal and opposition to any further amendments to it." "I urge you to have your colleagues call their elected officials directly by dialing the Capitol Switchboard at (202) 224-3121," said Beckwith. Here is a summary of the modifications to the Durbin interchange amendment:

Government administered cards

The Senate-passed amendment would regulate the interchange fees associated with debit or prepaid cards issued by large banks on behalf of government-administered payment programs (e.g., unemployment insurance, TANF, child support). The compromise exempts federal, state and local government program debit and prepaid cards from interchange regulation, provided that after a two-year grace period the prepaid cardholding beneficiaries are not charged any overdraft fees or fees for the first monthly in-network ATM withdrawal.


Sen. Durbin and House Conferees Reach Agreement on Interchange Fees

Assistant Senate Majority Leader Dick Durbin (D-IL) announced that an agreement has been reached with key conferees on the Wall Street reform bill regarding his amendment regulating interchange fees. The agreement makes minor, clarifying changes to the language, which passed the Senate 64 to 33 on May 13, and responds to concerns raised by state governments regarding their use of prepaid and debit cards distribution of government benefits. "NACS is supporting this deal," said NACS Senior Vice President of Government Relations Lyle Beckwith. "Please contact your elected officials and urge them to support the deal as well -- the banks are putting enormous pressure on Congress to reject these provisions." "I'm pleased that we were able to reach an agreement which makes minor changes to strengthen consumer protections and bring competition to a market where there is none," Sen. Durbin said. "Most importantly,

Definition of "interchange transaction fee"

The Senate-passed amendment defined "interchange transaction fee" to include debit card fees that are established by a payment card network (e.g., Visa and MasterCard) and that accrue to either the cardissuing bank or to the network itself. The compromise provides that the Fed cannot regulate network fees (i.e., the fees that Visa and MasterCard charge and that accrue to themselves) except to ensure that the fees are not used to circumvent interchange fee regulation. These changes are a different way of accomplishing the same goal of protecting consumers from loopholes, which would allow banks to raise fees to cover any loss in interchange revenue.

Reloadable prepaid cards

The Senate-passed amendment would regulate the interchange fees associated with reloadable prepaid debit cards, which are in common use by consumers who lack bank accounts. The compromise exempts these cards from interchange regulation, provided that after a two-year

Page 6 · Arizona Food Industry Journal · July 2010

grace period the issuing bank must not charge cardholders any overdraft fees or fees for the first monthly in-network ATM withdrawal. The compromise is an attempt to protect the unbanked from being driven to payday lenders and other non-bank entities for their financial needs. It further ensures that fees won't be charged on those who can least afford them.

discrimination. The compromise amendment contains a rule of construction affirmatively stating that nothing shall be construed to authorize any person to discriminate between debit cards or between credit cards on the basis of the issuer who issued the card. This language further clarifies the Senate passed language regarding nondiscrimination between card issuers.

Fraud prevention costs

The Senate-passed amendment did not permit consideration of fraud prevention costs in the calculation of reasonable and proportional interchange rates. The compromise provides that the Fed can adjust the interchange fee rate received by a particular card-issuing bank if the bank demonstrates that the adjustment is reasonably necessary to cover fraud prevention costs incurred by the bank. In order to qualify for this adjustment, the bank would have to comply with standards established by the Fed that would demonstrate that the bank is taking effective steps to reduce fraud, and the bank would also have to show that the adjustment it seeks is limited to those reasonably necessary fraud prevention costs. This compromise provides competition where there is currently none. Banks will be incentivized to efficiently and effectively prevent fraud while competing to provide the best protection for the lowest cost. These changes will make the market more efficient and allow for savings to be passed on to consumers.

Authority of the Federal Reserve Board vs. the Consumer Financial Protection Agency/Bureau

The Senate-passed amendment provided for regulatory authority under the amendment to migrate to the Consumer Financial Protection Agency/Bureau after the CFPA/B is established. The compromise provides that regulatory authority under the amendment shall remain with the Fed.

Non-applicability to USDA nutrition assistance program EBT cards

The Senate-passed amendment was silent on the applicability of the amendment to USDA's nutrition assistance programs in which interchange fees are not charged for electronic benefit transfer (EBT) transactions. The compromise makes clear that nothing in the amendment shall apply to these nutrition assistance programs.

Discounting between card networks

The Senate-passed amendment provided that card networks could no longer prevent merchants from offering customers a discount to use one card network vs. another (e.g., a discount to use Visa vs. MasterCard), and that this discount would apply in both the credit card and debit card contexts. This provision has been removed from the amendment. In its place, the compromise includes a provision directing the Fed to issue rules preventing card networks from requiring that their debit cards can only be used on one debit card network (thereby ensuring that merchants will have the choice of at least two networks upon which to run debit transactions). This provision also provides additional competition to a previously non-competitive part of the market. It allows merchants to choose the debit network with the lowest cost ­ the opposite of the current system where merchants are forced to use a specific network with fixed prices.

New FDA regulations designed to protect children from tobacco and its deadly effects.

The new rules, which went into effect on June 22, limit the sale and marketing of cigarettes and smokeless tobacco by: -Prohibiting the sale of cigarettes or smokeless tobacco to people younger than 18; -Prohibiting the sale of cigarette packages with less than 20 cigarettes; Prohibiting distribution of free samples of cigarettes; -Restricting distribution of free samples of smokeless tobacco; and -Prohibiting tobacco companies from sponsoring any athletic, musical or other social or cultural events, among other things.

U.S. Postal Service Curbs Tobacco Mailing

Beginning June 29, the U.S. Postal Service (USPS) will no longer accept or transport cigarettes or smokeless tobacco, the Richmond TimesDispatch reports. A new federal law intended to stop illegal cigarette trafficking allows the USPS to refuse packages if the agency reasonably thinks the packages have cigarettes or smokeless tobacco. The new regulations are for international and domestic shipments, but do not encompass cigars. Other delivery companies, including DHL, FedEx and UPS, do not ship cigarettes under arrangements with state attorneys general designed to keep tobacco out of the hands of minors.

Discounting between forms of payment

The Senate-passed amendment provided that card networks cannot prevent merchants from offering a discount for one form of payment vs. another (cash vs. check vs. credit vs. debit). The compromise clarifies that these discounts cannot be offered if the discounts differentiate between card issuers or card networks. The compromise further clarifies that the discount must be offered to all prospective buyers and disclosed clearly and conspicuously to the extent required by federal and applicable state law, though a network would not be permitted to penalize a merchant for a discount that is provided in compliance with federal and state law. This change simply clarifies the language in the Senate bill, which allowed merchants the ability to offer discounts for one form of payment over another.

FDA Survey Focuses on Recall Responses

In the hopes of drafting better messages to consumers during recalls, the Food and Drug Administration is preparing a survey, and asking for the industry's comments on the subject. Notice of the pending survey was in the June 18 Federal Register and interested parties have until Aug. 17 to send comments. The agency said the proposed "Survey on Consumers' Emotional and Cognitive Reactions to Food Recalls" will be undertaken by the Joint Institute for Food Safety and Applied Nutrition and the Center for Risk Communication Research at the University of Maryland. In the Federal Register, the agency noted that food recalls have varied effects on consumers. Existing data show that many consumers do not take appropriate protective actions during a foodborne illness outbreak or food recall, the notice said. About 40% of U.S. consumers say they have never looked for any recalled product in their home. Emotion apparently plays a big role in consumer reaction, and the agency said that may not always be good. The notice said findings from this study will help FDA understand the emotional response to food recalls and design more effective consumer food recall messages, the agency said.

Setting of maximum/minimum transaction thresholds for use of a credit card

The Senate-passed amendment provided that card networks could not prevent merchants from setting a minimum or maximum dollar amount for payment by credit card. The compromise provides that such a minimum may not exceed $10, with authority given to the Fed to increase that dollar amount. The compromise also limits the ability to set maximums for payment by credit card to the Federal government and colleges and universities. The compromise further clarifies the Senate language and establishes that a minimum payment not exceed $10 ­ matching laws currently on the books in a number of states.

Non-discrimination between cards issued by different banks

The Senate-passed amendment did not change the existing prohibition in the operating rules of Visa and MasterCard against card issuer

July 2010 · Arizona Food Industry Journal · Page 7

Around Arizona History

"You need your food, you need your water, and you need your history!"

A Superstore Ahead of its Time:

Clyde Smith and Smitty's Big Town

By Jack L. August, Ph.D.

On November 18, 1988 the Retail Grocers Association of Arizona (AFMA), at their second annual banquet honoring their Hall of Fame inductees, saluted Clyde Smith, founder of Smitty's, as an industry innovator. Smith introduced what was then called "onestop shopping convenience," Clyde Smith taking supermarkets into family merchandising with full-scale departments that sold clothing, house wares, electronics, automotive supplies and more. In-store banking and restaurants were other ideas Smith tried. Competitors marveled at how Smith seemed to "know intuitively what people wanted and how to give it to them."Once he even opened a cocktail bar and lounge in one of the stores, though this experiment gained little traction. Smith's roots were in rural Iowa, and there he tested and refined a concept that many thought was ahead of its time. He grew up on a farm, was a paratrooper in World War II, and returned to Iowa after the war. As he reflected on his war time experience and how it impacted his career in grocery retail, he noted that it started with a penny ante dice game on the farm that was transferred to the fox holes where he called "sevens and elevens during long, lonely periods." "When the war was over,"he recalled in an interview in 1965, "I came home with $2,000.00 saved from my winnings. It was the down payment on my future. I'd always wanted to be in the grocery business for myself." Smith had a mentor in Ames, Iowa, where he learned the ropes before the war. "I'd always regarded Mr. Rushing, a store owner in Ames, as someone special...he took an interest in me and gave me the opportunity to learn all facets of a grocery operation. I worked for him for seven years."It was there that he learned a valuable lesson: "I learned how to listen and to put down the exact thing to fill an order. A mistake meant the order came back to be filled again."After the war his $2,000.00 and Rushing's co-signature on a note put him into the business." Smith's first venture was a small meat market in Roland, Iowa. He slaughtered and butchered his own beef and pigs. In two years he had reached his volume potential so he bought a larger store in a larger town and proceeded to make that venture the leading volume store in the area. During the 1950s he opened six Smitty's grocery stores in Iowa and his ambitions grew. He concluded that "Bigness is excitement for the shopper and that this excitement relieved the dullness of shopping." In 1960 he found Arizona and sought to elaborate and expand upon his developing concept. Smith arrived in Arizona with a vision--a new concept of a "superstore" where traditional grocery merchandise would be augmented with a range of nonfood products in a store of more than 30,000 square feet. The April 1961 edition of Arizona Grocer announced: "Central Arizona's Newest Super Market, Smitty's Big Town, with 31,000 square feet of food selling space introduces several innovations in retail food merchandising into the area." In fact, it was double the size of any other store in the Valley. Located at 16th Street and Buckeye, the new retailer offered "several new features which are innovations for this area."Consumers were especially intrigued with the restaurant and waitresses inside the store: "Located in the building is a fine restaurant that has seating capacity of 100, featuring quality food and excellent service. As a sample, Wednesday's and Friday's menus feature a fish fry, all you can eat for 99 cents. Sunday features country fried chicken (half chicken) for the same price including all the trimmings." With the original six families he brought from Iowa, affectionately called "The Team,"he established a corporate family that ultimately numbered over 7,000 associates. During the two decades that Smith and his family owned and ran Smitty's in the Valley, he took personal interest in developing personnel for his management staff from within the company. This created a work force that was extremely loyal and dedicated. Indeed, one of the distinguishing characteristics that mark Smitty's rise in the Phoenix market is the fond memories and reflections of those who worked at one of the twenty or more stores. They remembered Smith's personal touch, humor, and genuine caring for their welfare and their families. In 1998, for example, about 100 former employees of the iconic supermarket chain had a reunion. One forty-nine year-old man remembered when he walked into the store in 1975 he had no idea how much the job would affect his life. "We had to get haircuts, we had to wear ties and we had to smile at customers. A lot of people worked there 20 to 30 years. It was more than a job, it was a family," he added. One woman who worked at the store off Granite Reef and McDowell in Scottsdale recalled that Clyde Smith was "the sweetest person....He had charisma, was always well dressed," and even though she worked in the cosmetics department, she knew that he "was ahead of his time with the overall concept." The man who provided pest control for Smitty's recalled that Clyde was "always pleasant and just a nice guy....He knew everybody and everybody knew Clyde....He had the best market in the whole area and he always looked the part of the boss." In 1980 Clyde Smith sold Smitty's to a Canadian retailer, Steinberg. He left Arizona chasing another dream; he wanted to build a resort with a convention center that was surrounded by a golf course. By the end of the decade, Smith was living that dream in Boerne, Texas, just east of San Antonio. This entrepreneurial venture, like its earlier counterpart in Arizona, created hundreds of jobs. He entered the Arizona Grocers Hall of Fame over two decades ago, but his Arizona legacy, and his innovative "supermarket" concept of a generation ago, lives on and beckons another generation of grocery retail innovators.

Dr. Jack L. August, Jr. is Research Professor in the History of Water Resource Development and Land Use in the American West in the College of Agriculture and Life Sciences at the University of Arizona. He also serves as Executive Director of the Barry Goldwater Center for the Southwest and is Visiting Scholar in Legal History at Snell & Wilmer L.L.P. He is a former Fulbright Scholar, National Endowment for the Humanities Research Fellow, and Pulitzer Prize nominee for his volume, Vision in the Desert: Carl Hayden and Hydropolitics in the American Southwest (Ft. Worth: TCU Press, 1999). Dr. August is the author of numerous books on the history of the New American West and has taught at the University of Houston, University of Northern British Columbia, and Northern Arizona University where his courses focused on the American West and environmental history.

Page 8 · Arizona Food Industry Journal · July 2010


By Debbie Roth

Last month, AFMA hosted a "Meet and Greet" for Kevin Tyne, the Interim Director for the Arizona Department of Weights and Measures (ADWM). The event was well attended by representatives from Fry's Food Stores, Safeway, Albertsons, Bashas', Sprouts, Sunflower and The Arizona Republic. Prior to his position with the Department of Weights & Measures, Kevin worked for Jan Brewer as her Chief of Staff when she was a Maricopa County Supervisor, as her Deputy Secretary of State when she was the Secretary of State and was also instrumental during the transition when Governor Brewer succeeded Governor Napolitano. Under Governor Brewer's strong leadership, the Department has made critical and important strides in delivering quality services while being absolutely efficient and costeffective with the taxpayers' dollars. As the Interim Director at the Department of Weights & Measures, Kevin has inherited a 20% reduction in staff. The good news is he inherited a great staff that is experienced and working harder and smarter in the face of department cuts due to the economy. With cut-backs eliminating a Deputy Director and Media person, everyone is taking on more responsibility. Going forward, Shawn Marquez, Director of Compliance Programs is responsible for overseeing compliance issues and Duane Yantorno, Director of Transportation Fuels and Air Quality Programs will oversee gasoline issues. Through the use of GPS devices, IT tracking and logistical planning, the Department is lean yet focused. In fact, in recent months, the Department has increased their inspections by 16% with an emphasis on areas that have not seen inspections in quite some time. Under Kevin's direction, the Department clearly has a positive and pro business attitude when going about their business of inspections. In regards to the age-old issue of UPC price posting, lead Investigator Shawn Marquez commented that he regularly uses the Grocery Industry as a shining example of how to do it right! Kevin also pointed out that although his Department is consistently contacted by media looking for problems, typically they respond with "no comment". They are not interested in reporting "bad news" to the media. Theirs is a success story of cooperation and partnering with the Grocery Industry.


The Department will not be assessing any additional fees during these difficult economic times The Department will continue to provide corporate education Retailers are encouraged to protect themselves from fraud by spot checking packaging weights received from 3rd party packaging companies Currently Seafood is a hotspot for concern. Remember these items must be sold by the pound, not by the item. Contact Shawn if you have questions on how to market your items staying within compliance The Department will continue to investigate consumer complaints Communication is the key

Kevin concluded his comments by saying "the mission of the Department of Weights and Measures is to maintain a fair, competitive and equitable marketplace."

(l-r) Tim McCabe, AFMA President; Kevin Tyne, Interim Director ADWM and Shawn Marquez, Director of Compliance Programs

Shawn Marquez visits with representatives from Sprouts

July 2010 · Arizona Food Industry Journal · Page 9


By Phil Hawkes

Supermarket Barometer Check - Part II

Last month we checked on how well supermarkets were keeping up with new or trendy foods and recipes from The Food Channel's top ten lists of the past decade. This month we will look at how well supermarkets are tracking against other food industry trends. Top Ten Restaurant Trends of the Decade

1. Fast Casual Concept This concept involves offering more ambitious recipes

that utilize more fresh foods at a bit more expense than standard fast food. And, no table service keeps costs down from restaurant levels. Chipotle, Panda Express, Baja Fresh and Jason's Deli are good examples of fast casual. Today's supermarket delis are on board with this trend, as everything from sandwich to chicken offerings are an upgrade from the past, and most supermarkets now have seating. Tapas and Shareables Tapas, a Spanish cuisine staple, were the original appetizers. They're served family style, designed to be shared. Restaurant menus increasingly offer shareable appetizer alternatives. Supermarket delis have not picked up on this trend yet. But they should! Gastropub Traditionally, pub food in England consisted of pretzels. English pubs have started serving hot foods and meals over the last few years. Bars in the U.S. have been adding food service, as well. Sigh...... If only there was a pub inside a supermarket. Molecular Gastronomy Cooking is the preparation of food. Gastronomy is the study and the knowledge of the science of cooking. Putting molecular in front of gastronomy serves to make it sound more scientific. An example of molecular gastronomy would be investigating how different cooking methods affect the flavor and texture of an ingredient and applying that to existing recipes or new dishes. I have a supermarket project for the molecular gastronomy crowd. Figure out how to make the London Broil cut of meat edible. Taco Trucks The taco truck phenomenon started in cities that had growing Hispanic populations. They were essentially the traditional catering truck concept with a predominantly Mexican food offering. But, unlike catering trucks, which are always on the move, most taco trucks stay put and the consumer comes to them. I have often wondered why supermarkets didn't put their brand on catering trucks and the same question applies to taco trucks. Underground Dining The underground dining concept traces to the Prohibition era, when consumers had to go to a speakeasy in order to obtain an alcoholic drink. A speakeasy was not open to the public and wasn't officially an establishment of any kind. Today's underground dining locations can be informal food clubs that meet for purposes of formal dining. Underground dining can also take place in actual, but unofficial private restaurants operated by chefs who don't have the financing to afford the necessary licenses to open a legitimate business establishment. Fusion Fusion cuisine combines elements of different culinary traditions to create something new and different. Fusion can create a new regional style of cooking, like California cuisine, or can be a combination of regional styles, like Tex-Mex. It can also be a food from one cuisine, made with foods from another cuisine, like a taco pizza. Supermarkets will never be the venue to launch fusion initiatives. But they should always be on the lookout to copy successful fusion incarnations.





DIY Restaurants are increasingly adopting a "do it yourself "attitude toward the preparation of their recipes. It can save money and add a fresher element to the menu. Do it yourself initiatives could include cutting meat yourself instead of purchasing specific cuts, or making a trip to the farmers market for fresh produce instead of ordering from the distributor. We can only hope that the DIY trend is contagious because when consumers do it themselves, that translates as supermarket shopping! 9. Catering Taking your restaurant brand on the road is called catering. It takes extra effort but it accomplishes a few things. One, it creates extra revenue. Two, it serves as a form of advertising and sampling of your brand. And three, it can create new customers. Every one of those benefits would apply to a supermarket, as well. Get out there supermarkets........step up your catering efforts! 10. Upscaling of Bar Food In the span of just a few years, the bar has been raised considerably on what constitutes acceptable bar food. A single, sloppy presentation of chicken wings doesn't cut it anymore. Bruschetta, sushi, gourmet fries and even vegetarian alternatives are becoming the new norm for bar food. Supermarkets should look at their in-store deli and bakery assortments in the same way. The same handful of best sellers from 2000 had better not be your same assortment in 2010.


Top Ten Flavors of the Decade Let's grade how the supermarket assortment reflects the popularity of the flavor.

1. Pomegranate Grade: A......But enough of pomegranate already.... 2. Wasabi 3. 4. 5. 6. 7.

8. it's everywhere! Grade: C......Let's face it, while wasabi is tasty, it has limited application. Cranberry Grade: A.....Frankly, as sour as cranberries are, they are assortment over achievers. Ginger Grade D.....C'mon, I would challenge this as a top 5 flavor. Blueberry Grade: B.....Opposite problem of cranberry...... blueberries are so sweet, it hinders its assortment potential. Hibiscus Grade: F.....Hibiscus is a flavor? Bacon Grade: D.....The problem......bacon flavor anything don't sell very well. Bacon sells very well. Green Tea Grade: D.....How could it be a top flavor? ...... It hardly has any flavor! Dark Chocolate Grade: D.....When the consumer makes their purchase decision, milk chocolate beats dark chocolate almost every time. Mint Grade: B.....The perennial all-star flavor addition to a product line.



9. 10.

Page 10 · Arizona Food Industry Journal · July 2010


Serious Food at Silly Prices

By Lisa Schnebly Heidinger



e all know the line, "If I only knew then what I know now." When Gilliland started Wild Oats, he didn't know some things he knows now. So after he sold it and retired, he wanted a do-over.

That's Sunflower Farmers Market. Sunflower is Gilliland's chance to apply now what he didn't know then. Even Wild Oats wasn't his first foray into the world of commerce. "I grew up all over," says Gilliland, an easy-going man who looks younger than his middle age. Sandy-haired and casual, he evokes Jimmy Buffet, in that he is relaxed about what he does, but deadly serious about how he does it. "I had a couple of businesses; first a crepe stand in New Orleans, then a parasailing business in St. Croix." That was after he met his wife, an American from Bermuda, in France. (When your dad works for the government and you move around your whole life, that kind of thing happens.) The wife wanted law school and he wanted a degree, "and Colorado University was the only place who let us both in." So after running a few convenience stores, Gilliland stumbled into buying what he calls "a hard-core hippie health food store complete with vegetarian cuisine, crystals and Guatemalan clothing." He learned the natural foods business there, and founded Wild Oats in 1988. In 13 years Wild Oats went from a single store in Boulder to 115 stores in 28 states and Canada, with just under a billion dollars in annual sales. Gilliland stayed retired for six months before he decided to do it all over again. His 21-year-old twins were grown and gone: the son is now at CU Boulder, daughter in Buenos Aires. He adds dryly, "My now-ex-wife says starting over was a sign of a lack of imagination." But to Gilliland it made sense. "I knew I wanted to do something, and the whole value thing grabbed me. It wasn't Wild Oats shtick. We did a lot of wheeling and dealing there, a lot of acquisitions. I didn't want to sprawl like that again." What Gilliland missed by the end of the Wild Oats era was a kind of passionate earnestness he remembered from the hippie health food days. "Everyone was vegetarian, and in love with the lifestyle, the ethos of the green movement. In the early days of natural foods we didn't view ourselves as grocers, we saw ourselves as saving the world. Then it became more of a big business. We had a 2,000 square foot store in New York, a 45.000 square-foot store in Portland. And then we sold to Whole Foods."

Mike Gilliland, Chairman & CEO and Chris Sherrell, President

Page 12 · Arizona Food Industry Journal · July 2010

So for his second turn up at bat, Gilliland went back to his roots. He wanted "decent growth, but not crazy growth," which has turned out to be 29 stores in seven years. He says he's tried to learn lessons. So this time he's been seeking out recycled real estate, empty food stores or big boxes. He says only a quarter of the Sunflower Farmers Markets are built from the ground up. "We keep the overhead low, buy used equipment and not a lot of fancy fixtures. We keep costs low." And hence the slogan: "Serious food at silly prices." The slogan Gilliland actually wanted was already being used by another natural food store chain, "A stepping store to better health." "We couldn't steal that, but I liked it. It speaks to the fact that our customers are transitional shoppers. They don't like glitz, they're not hardcore. They're casually interested." He says Wild Oats appealed to the top ten percent of the population in income and education. Now at Sunflower, he's appealing to the next 50 percent; people who aren't super-elite. "I don't have facts to back this up, but anecdotally, probably a quarter of our customers are Whole Foods refugees, who don't want to pay those prices. Probably half are people who know organic is better, but don't have superior knowledge about natural foods. And the other 25 percent just want five avocadoes for a buck." Ask people who know about Sunflower Farmers Markets, and they will almost invariably talk about the produce. They will tell you those "five avocados for a buck" sit next to boxes full of excellent produce, with which you can fill an entire grocery cart for very little money. Gilliland says produce accounts for about 25 percent of their business, compared to about eight percent in a traditional grocery store. Bulk foods, which occupy a lot of floor space, make up only about seven percent of the total business, but people rely on it. He says as a low-cost natural foods store, Sunflower's competition runs to Trader Joe's and Whole Foods, but he smiles as he calls the whole industry "incestuous." "Henry Boney founded Henry's roughly 50 years ago. His sons then ran the business until I bought it in the late 90's. The grandson, Shon Boney, ran it for awhile under Wild Oats' ownership before leaving in 2000 or so to move to Phoenix and start Sprouts. We're all kind of intimate; we know each other, trade employees all the time."

Part of what makes "serious food at silly prices" possible at Sunflower Farmers Markets is the merchandizing approach, which is low-profile shelving and lots of crates. Gilliland loves that. "It brings out the huntergatherer in me. I love to put a cart in the middle of the store, and wander around bringing things back to it." This "stack it high, watch it fly" approach also means keeping choices down. Sunflower Farmers Markets carry two or three brands of olive oil, instead of 30. Gilliland hopes to expand the private label offerings also. "We already have our own fair trade coffee, for $6.99 every day. And our olive bar is $6.99 instead of the $10.99 or $11.99 at other stores. I hope the private label goes from about 25 percent of our inventory to 50 percent." Gilliland also loves the fact that they make their own sausage, both turkey and pork. Asked what he wants to improve, Gilliland says the deli and prepared food sections could be more robust. But not having a full-service deli in stores is part of what keeps overhead low, in addition to not having droves of employees on the floor at all times. "The meat department is half self-serve, and the deli is graband-go. Our bakery is mostly thaw and bake items." Speaking of meat, Gilliland thinks that's one of Sunflower Farmers Markets' best departments. "I think it's fabulous. We have Harris Ranch beef, and all natural products. We make our sausage from scratch. We also have great frozen seafood." The most intensive training surely comes in the health and beauty department, where scores of products, some mysterious in nature or origin, crowd the shelves. Gilliland smiles, "Even after 25 years in the business, that department scares me. Fortunately we have people who are passionate about it, constantly learning. Vendors will take our people to lunch and do a seminar; there are constant training opportunities. And we have speakers come in, to talk about heart health and things." He says several hundred people recently came to the Scottsdale store to hear a speaker on menopause. "It's a big opportunity for us to educate people, on everything from how to cook to what issues are facing the nation." He thinks one outgrowth of a poor economy is that people are stepping up to take charge of their health more. Shoppers are buying more immune-system boosters, herbal supplements and preventive items. Now, Gilliland is cautiously optimistic that the worst of the recession is over. He says people are buying a few more impulse items, opening their wallets a bit wider. Arizona has been the

Mike Gilliland lends a hand during a store opening.

July 2010 · Arizona Food Industry Journal · Page 13

toughest market of all the states Sunflower is in. "At stores in other states, people are constantly asking, `are these prices for real?' Here it's so cut-throat, we lose money on everything on the front page of the ad; it's all loss leaders." Gilliland says for the most part, Sunflower stores stock the same items, with only about ten percent varying from region to region. (Arizona is stronger on chips and salsa.) He would like to see more foods locally grown, but with the Valley's hot weather he doesn't expect that to change significantly. Sunflower Farmers Markets does have a farm in Colorado, where Gilliland lives half the year. The first year they farmed two of the 40 acres available, and fifteen acres the second year. There is a CSA program, which stands for Community Supported Agriculture. People subscribe, and then once they're members, they receive a box every month, with a variety of what's been grown recently. It might be honey, or eggs, or produce. "There's a real connection for people," says Gilliland. "They like to see where their food is grown. We don't grow even one percent of what we sell, but it's a fun connection, as well as a lot of work." Part of Sunflower Farmers Market's commitment to the environment is building a LEED-certified store recently. LEED stands for Leadership in Energy and Environmental Design. Gilliland says the store, which is in the Denver Highlands neighborhood, has lights that adjust as outside light changes as well as skylights. As for the coming year, Gilliland says his goals are to continue to open seven to ten stores a year, and move into California. But there, the stores will be called Newflower. "We don't actually own the Sunflower name. We have a weird deal that we pay annually for the right to use it, but don't own it. I offered the owner

a million dollars and he turned it down. So in Texas or California we have to be Newflower." The chain had boasted in the past about being so folksy it didn't have a corporate headquarters, but Gilliland says that is changing somewhat. "Now we do have some offices. We have a warehouse near McDowell and 43rd Avenue, and an office near Dunlap and I-17. Not one big monolithic building, but we have people working here and there." He says about 80 percent of the management team was formerly with Wild Oats. "Wild Oats had become a big company. A lot of our management team are second generation, who were junior managers when I left Wild Oats. It's been kind of fun to have a second act with the same people. We spent a lot of time contemplating what we did wrong. I don't think we left Wild Oats feeling totally satisfied. By the time we sold, we were getting our butts kicked by Whole Foods. We got out gracefully and made some money, but part of the inspiration for the concept of Sunflower came from that experience." To that end, Gilliland says Sunflower always tries to have the best price on eggs, milk, and staples people buy. "We also try to have the best price on Brie, different things." It appears the lessons learned are working. Gilliland likes having a smaller chain, because changes can be made quickly; he compares change in a huge chain as turning a battleship. He would like to open a store or two in Northern Arizona. He says the retail picture is brighter, meaning the company can move from staying afloat to expanding. And staying afloat isn't bad. Gilliland says last year top line sales grew by 50 percent, even in a lean economy, from $200 million to $300 million. He hopes to reach $375 million this year. The prices may be silly, but that growth is serious.





Greg Colyar Field Agent

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Page 14 · Arizona Food Industry Journal · July 2010

"better than ever"

By Lisa Schnebly Heidinger


pend any time at the gleaming facility that makes salty snacks, and you will f ind it aptly named. With General Manager Charlie Nelson as a tour guide, you feel like a third grader on a very cool field trip. Barrel O' Fun is new to the Valley, but at its plant in Perham, Minnesota chips, cheese balls and popcorn have been rolling off conveyer belts since 1973. The new manufacturing facility back there is three times the size of this one, which occupies 130,000 gleaming feet of shiny clean space. Nelson explains that this manufacturing plant was constructed to cut down on freight costs to western markets, in order to remain as competitively priced to their partners as they can. He stopped making sales calls for the pet food line of the business to take the position here. Nelson is the third generation in this family-owned and ­operated business; his grandfather, nicknamed Tuffy, started Tuffy's pet foods in 1964. Nelson's father created Barrel O' Fun (the name came to him one day while on an elevator), which made salty snacks, and then founded Kenny's Candy, which specializes in licorice. The next big change came in 2003, when the new plant was constructed in Perham, Minn. "We were shipping all over the country ­ Arizona, New Mexico, Utah," says Nelson. "We thought we could service customers better by building in the southwest. We just started making product the first of the year." That means that while an occasional glitch needs to be worked out, in each case a quality control worker has seen the anomaly even before it leaves the conveyor belt and snapped it up. While genial, the workers are spotlessly arrayed and completely dedicated to their jobs everywhere you walk. Fun is for the break room. Dedication to product reigns on the factory floor.

Coming from what was almost a company town to Arizona has been an adjustment. Nelson says the family companies: Tuffy's, Barrel O' Fun and Kenny's Candy, have grown so much in 30 years that it employs about 1,000 people in a town of 2,500. (Assuming families are of traditional size that could be more than one member of each household!) Nelson points to a poster in his office picturing himself, his father, and a Barrel O' Fun employee. "He was 59, and had given us 41 years," he says. "That kind of thing is common back there." Because employees are loyal, the family feeling at the Perham facility runs deep. Picnics and pictures are shared; everyone comes from a similar place. Here, while up to 30 people may apply for work on any given day, it will take time to become anything close to as cohesive as in Perham. "We show films of our scenario in Minnesota, and try to give people here the best feel we can," he says. "We want them to understand they're part of something important." Nelson says key employees have been taken to the Minnesota headquarters to get a sense of the place. In addition, workers from Perham have come out to work with the management team and workers here on everything from human resources to packaging. "We have three to six people here from Minnesota every week, whether they are in logistics or bagging operations. It's also good for our people to be able to put a name with a face." While Barrel O' Fun products are made in both Perham and Phoenix, Kenny's Candy Licorice and Tuffy's Pet Foods are manufactured only in Perham. On any given day, it could be chips, cheese balls or other salty snacks being made in Arizona. On potato chip day, the machines run in cooperation like gears in a complicated clock. Potatoes are sorted and washed, cut and

Page 16 · Arizona Food Industry Journal · July 2010

fried; the oil drains just in time for salt to gently sift through the gleaming new chips. Then seasonings dictate what bags they will go into: barbecue, sour cream and onion, salt and vinegar. (In another area, a gargantuan tub of pre-cheesed curls look fascinating and young without their distinctive orange coat.) Barrel O' Fun's slogan is "better than ever," and it fits. The company is growing phenomenally well in a weak economy; more than 100 people work at the Arizona facility, and that doesn't include contract employees like drivers. Another way "Better than ever" comes into play is in the building itself. Built to a Green Globes standard, which takes into consideration using energy-efficient design, this facility uses water-saving devices and recycles all cardboard, plastic and paper. Barrel O' Fun focuses on their own brand of products, and just as important is their co-pack partners, whether that be a high-quality marketing company, or a local retailer. If a store sells tortilla chips, the bag identified with that grocery brand waits in the warehouse to be filled. Like a discreet hair stylist or sports agent, Nelson won't talk publicly about whose products come out his doors, packed in pristine shipping boxes. But he is proud of the relationships being built here in Arizona, and looking forward to supplying even more retail outlets as the company grows. Nelson may have grown up in the business, but he came to it late compared to a teenager starting in the stockroom. He spent some time in professional baseball first, in the outfield. Still a Minnesota Twins fan, Nelson can say Barrel O' Fun is a major corporate sponsor for his old home team and provides a lot of concessions. Some of those are regional. Arizona shoppers are familiar with Vic's popcorn, a gourmet product that came to our stores from Minnesota years before Barrel O' Fun built here. We are less familiar with Rachels, and Jonny Rapp's, other company brands. Nelson's own favorite of the family products is a fairly new one; the black bean and salsa tortilla chip. He says initially Barrel O' Fun assumed that enough tortilla chips were being supplied in Arizona to stay out of the competition, but that's changed. He also says as Americans have become more health-conscious, some of the product lines have changed. "For instance, schools now have very specific guidelines about how your labeling panel reads, and about what ingredients can be used. Organic is still a small segment of the total market, but it's growing and an important one." He says both Barrel O' Fun facilities are certified organic as well as kosher. Because consistency is so important, both the Minnesota and Arizona branches receive the same raw materials. Bags of powdered corn, spices, and containers of oil come to each, and Nelson says there is a lively exchange of products flying between the two, to ensure consistency. Nelson works long hours, talking frequently to the folks in Minnesota. "One thing you can't buy is experience. Learning from people who have done this for a long time is important." Asked if he has a son or daughter following in the family footsteps, Nelson laughs. Between pro ball, working with the Minnesota Vikings in sales, some time as a broker and then being on the road for the years leading up to his Arizona management position, there hasn't been room or time for a family. Right now, his priorities are the family-owned business, the highquality products, and the excitement of this new venture.


Raymond Kruckner

Raymond Kruckner is the Market Manager employed by 7-Eleven. He is now the newest member of the AFMA Board of Directors just replacing Don Buck. Ray has spent the last 34 years in the Food Industry business ­ all with 7Eleven. He began his career as a Sales Associate then progressed through the ranks as follows... Assistant Store Manager, Store Manager, Field Consultant, Operations Training Specialist, Training Specialist, Training Manager, Merchandise Manager and finally Market Manager. Ray serves on the AFMA Board of Directors to represent 7-Eleven stores and ensure convenience stores in general are supported. When asked what does AFMA mean to you, he replied, "AFMA is a coalition of retailers and suppliers that support the Food Industry in our state." Ray has travelled extensively living in Iceland, the Philippines and Japan during his school years.


AUGUST 10, 2010 AFMA SUMMER GOLF CLASSIC The Rim Club Payson, AZ AUGUST 24-27, 2010 LEAGUE OF CITIES & TOWNS Glendale, AZ OCTOBER 7, 2010 AFC GOLF TOURNAMENT Legacy Golf Resort Phoenix, AZ OCTOBER 19, 2010 ACES HIGH GOLF TOURNAMENT Revere Golf Club Henderson, NV OCTOBER 31, 2010 ARIZONA WALK NOW FOR AUTISM SPEAKS Tempe Beach Park Tempe, AZ NOVEMBER 19, 2010 EXCELLENCE IN LEADERSHIP AWARDS Downtown Sheraton Phoenix, AZ MARCH 3, 2011 AFMA GOLF CLASSIC We-Ko-Pa Fort McDowell Yavapai Nation

July 2010 · Arizona Food Industry Journal · Page 17

Page 18 · Arizona Food Industry Journal · July 2010

July 2010 · Arizona Food Industry Journal · Page 19

Names In The News

ideas so the City can make informed decisions to best serve the public. Each event allows residents an opportunity to ask questions, discuss concerns and offer suggestions in an informal setting that is both comfortable and convenient. Mayor Rogers chose to host the next "City Hall Comes To You" at Avondale's neighborhood Food City store, as it participates in Bag Central Station, a voluntary plastic bag recycling program in Arizona. In March 2010, Avondale passed a resolution that encourages retailers to promote reusable bags and collect Avondale Mayor Marie Lopez Rogers plastic bags so they can be and Food City Store Director Sammy Garcia recycled properly. "Plastic bags are not biodegradable, and often end up in our waterways, roads, parks and surrounding parks," said Les Miller, Avondale's Recycling Coordinator. "The City of Avondale is committed to educating the public about the importance of recycling plastic bags the right way ­ by bringing them to a neighborhood grocery store like Food City." Most grocery stores in Avondale proudly and prominently display large recycling bins with clearly marked Bag Central Station signs at their entrances. Bag Central Station locations allow residents and businesses to recycle plastic bags as well as many other plastic materials that are not accepted in the City's curbside blue bins. "The choices that businesses make impact the quality of life in the communities in which they operate," said Avondale's Food City Store Director Sam Garcia, Jr. "As a local, family-owned grocer, we believe it's important to work together for a cleaner Arizona ­ for the families that we serve who live here today, and for the many more who will be here tomorrow." To go with the green theme, residents were asked to bring in at least 5 plastic bags to the store to get a free reusable "Shop Avondale" Bag at the event. Residents also had a chance to fill out an "I Pledge To Go Bag Less" form, which entered them into a drawing for a $50 Food City gift card. Representatives from the City's Recycling Team also were on hand to answer questions about recycling in Avondale. For more information, visit or

David Dillon - CEO, Kroger Co. David Dillon loved law school, especially the criminal justice clinic. His law professors say he was a natural in the courtroom and a zealous defender of the underprivileged. There was never any doubt that he would be an extraordinary advocate. "F. Lee Bailey wrote a book that said you have to do your homework, that you have to understand the case better than the prosecutor," says Dillon, a 1976 graduate of Southern Methodist University's Dedman School of Law. "I learned that I couldn't successfully tackle an issue or problem until I understood it from every possible direction." Employing this principle for the past 25 years, Dillon has experienced extraordinary achievement and has become the unequivocal leader of his profession. His career has thrived. His firm's revenues dwarf even those of the largest law practices in the world. But Dillon has never tried a lawsuit or even practiced law. Instead, he is chief executive officer of the Kroger Co., the largest grocery store chain in the country, according to Fortune, with revenues of $76 billion. "I love selling groceries," he says. "I went to law school not to be a lawyer but to study how society operates and to learn why we don't kill each other. The rule of law has a lot to do with that." Dillon is an example of a new trend among the nation's largest corporations to select lawyers to lead their conglomerates. Nine of the Fortune 50 companies now have a lawyer as chief executive, up from three just a decade ago. In December, Bank of America and Continental Airlines became the two most recent publicly traded corporations to do so. Also in 2009, Citigroup named Richard Parsons, another lawyer, as its chairman, which is separate from the CEO. Business leaders and corporate headhunters agree that the JD is once again an alternative to the MBA as the degree of choice for CEO candidates, and that the trend is very likely to increase over the next decade.

Avondale Mayor Holds "City Hall Comes To You" Gathering at Neighborhood Food City Store

As part of its ongoing series of "City Hall Comes To You" events, Avondale Mayor Marie Lopez Rogers welcomed the opportunity to meet with residents on Tuesday, May 25, from 10 to 11 a.m. at the Food City at 1450 North Dysart Road in Avondale. Avondale's series of "City Hall Comes to You" events allow elected officials and City staff to be more accessible to residents, encouraging a one-on-one dialogue between residents and the City. During these informal gatherings, held at local coffee shops and grocery stores in Avondale, residents can share their comments and

Community Food Bank Receives Almost 250,000 Pounds of Food from Letter Carriers' Drive, Recycles More Than 47,970 Plastic and Paper Bags

Thanks to Southern Arizona residents, who participated in this year's "Stamp Out Hunger" food drive, the Community Food Bank received almost 250,000 pounds of food for hungry families. Thanks to Food City, Community Food Bank also was able to recycle the more than 47,970 plastic and paper bags that held the food donations. "Of all the drives that we participate in, this one brings in the most pounds of food each year," said Bill Carnegie, Community Food Bank

Page 20 · Arizona Food Industry Journal · July 2010

President/CEO. "Every pound of food that's been collected will immediately assist hungry families in Southern Arizona, and we feel good knowing that Food City will help us to recycle the plastic bags from this drive." "Stamp Out Hunger" is the nation's largest single-day food drive. Every year, on the second Saturday of May, more than 230,000 U.S. Postal Service letter carriers hit the streets to collect non-perishable food donations from homes across the country. The food is then delivered to food banks and hunger relief organizations in more than 10,000 communities, including neighborhoods throughout Tucson and Southern Arizona. "This large food donation couldn't come at a more perfect time, as we're experiencing such an increase in demand right now," said Carnegie. "In part, this is due to kids being out of school during the summer months, but it's also because more families are seeking assistance than in previous years. To give you an idea of what the demand is like, this large donation of food will only last us until August." Food City assisted the food bank by picking up more than 47,970 plastic and paper bags in one of its 48-foot semitrailers so that the bags could be recycled properly ­ into things like paper, plastic decking, park benches and playground equipment ­ rather than end up in a landfill. "We were thrilled to assist the Community Food Bank with this drive because it helps so many local families in need," said Tucson Food City Store Director Ramon Lopez. "We're also committed to doing our part by encouraging residents to bring their plastic bags to their neighborhood grocery store so the bags can be recycled the right way." Most grocery stores in Tucson proudly and prominently display large recycling bins with clearly marked Bag Central Station signs at their entrances. Bag Central Station locations allow residents and visitors to recycle plastic bags as well as many other plastic materials that are not accepted in curbside recycling bins.

Science degree from Arizona State University and an MBA from the University of Chicago. Since 1989, he has served as principal of Diamond E Consulting Ltd, where he specializes in strategic consulting. For 24 years, Mr. Everett held various high-level positions within the Amoco Oil Company. Mr. Everett has a long history of community involvement, having previously served as mayor and city councilman of the City of Sedona and chair of the Verde Valley Habitat for Humanity. His experience also includes membership in several northern Arizona organizations, including the Sedona Medical Center Foundation, the Greater Sedona Community Foundation, the Sedona Fine Arts Festival, Church of the Red Rocks Council and the Sedona Red Rock Rotary Club. He currently serves as board chairman for the Verde Valley Medical Center Board of Directors, and is a board member of the Verde Healthcare Initiative and the Northern Arizona Healthcare Board of Directors. Mr. Everett's appointment is subject to Senate confirmation. He fills the vacancy left by former Director Jerry Oliver, who retired earlier last month. Tim Black has served as Interim Director since Oliver's departure, and returned to his Deputy Director role when Mr. Everett began his duties on June 21st. "I would like to thank Mr. Oliver for his dedication and service to the State of Arizona and Mr. Black for stepping up to the plate to serve as Interim Director," said Governor Brewer.

Sprouts Celebrates Opening of 50th Location

Founded in 1976, the Community Food Bank provides education, advocacy, and food for people throughout Southern Arizona including Pima, Santa Cruz, Cochise, Graham and Greenlee Counties.

Governor Jan Brewer Announces Director of Department of Liquor Licenses and Control

Governor Jan Brewer today announced the appointment of Mr. Alan Everett as the Director of the Arizona Department of Liquor Licenses and Control. Mr. Everett will be responsible for overseeing the Department's duties of liquor industry licensure and ensuring compliance with state liquor laws. "I am pleased to announce my appointment of Alan Everett as Director of the Department of Liquor," said Governor Brewer. "Mr. Everett brings with him over 45 years of managerial Alan Everett and leadership experience. His knowledge and skills will be a tremendous asset to the State of Arizona. His experience as a member of the State Liquor Board from 2004-2010 has provided him particularly valuable insight into administrative and enforcement matters that he will now utilize as agency Director." Mr. Everett's educational experience includes a Bachelor of

Last month, Sprouts Farmers Market opened its 50th store in Sunnyvale, California to record crowds. There were over 300 people in the parking lot opening morning, and the crowd continued to grow throughout the day! Thankfully, there are 12 registers at this store. "Achieving our goal of 50 stores in 5 years was most definitely a TEAM effort", said Doug Sanders, President and COO. "But I would be remiss if I didn't recognize the efforts of our new store opening leaders ­ Eric Davidson and Jared Kjelvik. Spending weeks upon weeks away from home, their efforts have been instrumental to the success of so many of our new stores and I want to personally thank them for all their contributions ­ Great Job!!"

Page 22 · Arizona Food Industry Journal · July 2010

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