IGA Guest Contributor Perspective

A Sure Thing

A message to the IGA Alliance from...
Michael Sansolo
President, Sansolo Solutions
Contributing editor, morningnewsbeat.com

Michael Sansolo is an industry consultant, speaker and author. Register to attend the 2012 IGA Global Rally in Las Vegas this February to hear more of Sansolo's insights related to independent grocery retailing.

Ordinarily, I don't get very excited about a trip to Las Vegas for two simple reasons. First, a key activity in Las Vegas is gambling and I am not a good gambler. Secondly, I'm a bad loser. Just like that I have two big strikes against a good trip to Las Vegas.

I feel differently about this February when I'll be part of the annual IGA Global Rally. My reason for optimism is pretty simple too: the Rally is a "Sure Thing"—especially for members of the IGA community. Here's why: the Rally offers great odds on any attendee coming away with a winning experience that's sure to make your company better.

Retailers get a chance to meet fellow IGA operators from around the world in an environment where they can share ideas, fellowship, feedback and more. It's a rare chance to see the best of the best in the world of IGA, which means you are guaranteed to find ways to use all the tools IGA offers better than ever before.

The entire IGA community—retailers, LDCs and Red Oval partners—get a unparalleled opportunity to find ways to use the Alliance to build both better relationships and, of course, sales. It's a great chance to find out about all the new programs and initiatives, including how to strike the important balance between IGA Exclusive Brands and Red Oval partner national brands. That's a merchandising balance that every retailer needs to understand to succeed these days.

The Rally is a chance to build knowledge, excitement, awareness, community and more. Taken together that's a certain opportunity for a winning experience in Las Vegas. I can't wait to see you there as we rake in the winnings together.

Thanks,

Michael Sansolo

Retail News

Delhaize America will close 126 stores and retire its Bloom banner. The chain will close 113 underperforming Food Lion stores, primarily in markets in which the company has the least store density; convert 64 Bloom and Bottom Dollar Food stores in Maryland, North Carolina and Virginia to Food Lion stores; close seven underperforming Bloom stores and six underperforming Bottom Dollar Food stores in overlapping Food Lion markets; convert one Food Lion store in Florida to a Harveys store; discontinue operations of its distribution center located in Clinton, TN; and accelerate the roll out of the Food Lion brand strategy in an additional 600 to 700 stores. All affected stores will close within 30 days. Full Story

Food prices fell in December, with the FAO Food Price Index dropping 2.4% from November. At 211 points, the Index was 11.3% below its peak in February 2011. The decline was driven by sharp falls in international prices of cereals, sugar and oils due to bumper 2011 crops coupled with slowing demand and a stronger U.S. dollar. Full Story

FreshDirect is reportedly considering a move to a 500,000-sq. ft. warehouse in Bronx, NY that would more than double its current Long Island City, NY warehouse space, reported The New York Post. Full Story

Kum & Go LC will build 20 to 25 stores in the Colorado Springs, CO region within the next five years, reported The Des Moines Register. The first store in the region is expected to open this year. Full Story

Shop24 Global installed a robotic convenience store location at Ohio Northern University that will be owned and operated by Kroger, reported Vending Marketwatch. Full Story

New Store News: Giant Eagle, Inc. opened a 90,000-sq. ft. Market District store in Pine, PA. Full Story ... Wal-Mart Stores plans to open a 64-000-sq. ft. grocery this year and a 76,000-sq. ft. store next year in Bellevue, WA. The larger store is scheduled to open in the first half of 2013, reported The Seattle Times. Full Story (Free Registration Required) ... Wal-Mart also proposed opening a 60,000-sq. ft. grocery store in Oregon City, OR, reported OregonLive.com. Full Story (Free Registration Required)

Meijer and Johnsonville Sausage launched a football-themed Facebook poetry contest, entitled "Meijer Pigskin Poetry." The contest invites participants to go to the Meijer Facebook page and create a fun football-themed poem in 30 words or less through Feb. 4 for a chance to win a fan package. Full Story

Manufacturer News

General Mills reformulated more than 50 products across its portfolio of Big G cereals, with the products displaying a white check that indicates the predominance of whole grain over any other single ingredient. The reformulations include Honey Nut Cheerios, Lucky Charms, Total, Cinnamon Toast Crunch and Cheerios. Full Story

Deep Foods received halal certification for all chicken and lamb dishes through the Islamic Society of North America (ISNA). The ISNA logo will be displayed on all Deep Foods lamb and chicken dishes. Full Story

The Pulse Beverage Corp. entered into a Master Distribution Agreement with Bernick's Beverages and Vending for distribution of its products in Minnesota and Wisconsin. Full Story

Executives on the Move: Mizkan Americas revealed numerous organizational changes for Mizkan Americas, Mizkan Europe, and Border Foods, Inc. Michael Smith was promoted to EVP of Sales/Border Foods. Full Story ... Arby's Restaurant Group, Inc. named Russ Klein CMO. Full Story ... Functional Technologies Corp. named Kito Tosetti COO. Full Story

Foodservice News

U.S. eating and drinking place sales surged over 10% in December compared to a year earlier, according to Food Institute analysis of just-released government data. That is the first double-digit increase in foodservice sales since March of 2006 - 69 months ago. This put overall 2011 foodservice sales 6.1% above 2010, outpacing the 5.5% increase of retail food store sales for 2011. Full Story (FI Membership Required)

Subway plans to open 2,500 outlets in the U.S. and Canada in 2012. Full Story

About 75% of consumers, most of them female, are paying more attention to eating healthfully than they did five years ago, according to a survey released by Allrecipes and HealthyWomen, Allrecipes' Measuring Cup Consumer Trends Report. More than 56% eat at fast food restaurants at least several times a month. Among those, nearly 15% ate fast food two or more times a week. Full Story

Restaurant Roundup: Dunkin' Donuts' 500th store in the Chicago area boasts a new design and features including interactive video menu boards. Full Story ... Restaurant.com formed partnerships with several restaurant chains in the fourth quarter of 2011 including IHOP Restaurants. Full Story ... Quaker Steak & Lube introduced a new menu. Full Story ... Cinemark Holdings, Inc. rolled out the Lite Bites snack pack, which contains a 16-oz. Coke Zero, a Jamba Fruit & Nut Trail Mix and a calorie-counter's portion of Cinemark's Orville Redenbacher popcorn. Full Story ... BlackGold Biofuels and SLM Facility Solutions Nationwide formed a strategic partnership to provide recycling options for hospitality-industry wastes. Full Story

Restaurateurs mindful of sustainability are finding ways to expand the possibilities of what they can recycle at their establishments. As a result, they are moving beyond glass, plastic and paper to other, more complex items materials that range from carpets to cargo containers and adding momentum to the movement as both recyclers and users of recovered materials, according to the National Restaurant Association. Full Story

Related is buying a partnership stake in Union Square Events, the catering, sports and entertainment unit of Union Square Hospitality Group, reported Bloomberg Businessweek. Related will work to bring brands including Shake Shack and Blue Smoke into stadiums, parks and other properties around the world. Full Story

Bob Evans Farms Inc. is reportedly in a good position to lure bids from leveraged buyout firms, according to Miller Tabak & Co. The chain is the least expensive U.S. restaurant chain with a value greater than $1 billion, according to data compiled by Bloomberg. Full Story

The veggie burger is seeing a renaissance in restaurants, with listings on menus up 17% since 2008, according to the National Restaurant Association. While staples such as soy, grains and black beans are still used, chefs are employing unconventional ingredients like black-eyed peas, cannellini beans, edamame, beets, corn, nuts and quinoa, reported The Denver Post. Full Story

Health News

Consuming poultry lowers the risk of stroke while eating red meat raises the risk, claims a study published in Stroke. People who ate the most chicken or turkey each day had a 13% reduced risk of stroke compared with those who ate barely more than a serving a day, reported Reuters. Full Story

Washington News

Dr Pepper Snapple Group, Inc. (DPS) and Dr Pepper Bottling Co. of Dublin, Texas, resolved all litigation over the Dr Pepper trademark and distribution rights. Under the terms of their agreement, DPS purchased all of the Dublin bottler's sales and distribution operations and related assets, as well as the rights to distribute Dr Pepper and other DPS brands in the six-county territory previously served by Dublin. The former Dr Pepper bottler will continue to produce other soft drinks at its bottling facility. Full Story

Pepsi Beverages agreed to pay $3.13 million and provide job offers and training to resolve a charge of race discrimination filed in the Minneapolis Area Office of the U.S. Equal Employment Opportunity Commission. Full Story

SSI Group Holding Corp. sold substantially all of its assets to Captain D's, LLC, and LNC Ventures, LLC in two separate sale transactions. The transactions, which closed in December, were effectuated pursuant to the U.S. Bankruptcy Code. SSI Group is an operator and franchisor of two distinct restaurant concepts in 14 states across the U.S., Souper Salad and Grandy's, with a total of 150 restaurants across both brands. Full Story

Massachusetts state officials are considering the use of DNA testing to combat fish mislabeling. The officials are also weighing a ban on the sale of escolar and launching a pilot program in partnership with Legal Sea Foods to trace fish through the supply chain, reported The Boston Globe. Full Story (Free Registration Required)

An AMS proposed rule would address a recommendation submitted by the National Organic Standards Board to continue the exemption for nutrient vitamins and minerals for five years after the Oct. 21 sunset date of the 2012 Sunset Review of the listing for the substances on USDA's National List of Allowed and Prohibited Substances. A proposed amendment to the annotation would also clarify what synthetic substances are allowed as nutrient vitamins and minerals in organic products labeled as "organic" or "made with organic (specified ingredients or food group(s))." Full Notice

The National Retail Federation issued an open letter to President Obama, urging a call for action on initiatives that support a strong retail sector during the January State of the Union address. The letter asked President Obama to include three key issues in his speech to Congress: sales tax fairness legislation; corporate tax reform that would eliminate deductions and credits in return for lowering tax rates for all businesses; and free and open trade initiatives building on recent Free Trade Agreements. Full Story, Letter

Zip International Group LLC initiated a voluntary recall of sliced herring fillet due to Listeria contamination. Full Story

Blount Fine Foods initiated a voluntary recall of Blount Fine Foods branded Rip Roarin' Crab Soup in 16-oz. retail cup pack size because of undeclared milk, wheat and crab allergens. Full Story

Global News

Grain companies in Canada are preparing for the dismantling of the Canadian Wheat Board. Richardson International Ltd. is expanding its storage capacity to boost shipping and Bunge Ltd. is considering expanding its Canadian operations, reported The Globe and Mail. Full Story (Free Registration Required)

Japan doubled grain purchases from Europe in the past two months, heading for a record volume from the region this year, as local feed mills seek less expensive alternatives to U.S. supply. Corn purchases by Japanese trading companies from the Black Sea region including Ukraine, Romania and Hungary topped 1.5 million metric tons for shipments from November to March, according to Continental Rice Corp., reported Bloomberg.com. Full Story

Market News

The Florida all orange forecast, at 147 million boxes, is down 2% from the December forecast but up 5% from last season's final utilization. Florida FCOJ yield forecast for the 2011-2012 season is 1.56 gallons per box at 42.0 degrees Brix, down 3% from the December forecast, and down 2% from last season's final yield. The 2011-2012 U.S. grapefruit crop is forecast at 1.15 million tons, down 2% from the previous forecast and down 9% from last season's final utilization. USDA Report

U.S. wheat ending stocks for 2011/12 are projected slightly lower this month as reductions in expected domestic use mostly offset higher projected exports. U.S. feed grain supplies for 2011/12 are projected higher as an increase in estimated corn production more than offsets a reduction for sorghum. USDA Report

Early January freezing weather in Florida growing regions may cause some small gaps in tomato production. In mid-February, buyers should expect a gap or lighter volume from Immokalee, FL, reported The Packer Online. Full Story

The 2012 season could bring significant reductions in acreage for some rice producing states due to drought, damaged crops and a delayed planting season, among many factors. States including California, Arkansas, Louisiana, Missouri, Mississippi and Texas could all be affected, reported Western Farm Press. Full Story

Sheds east of the Mississippi could be running out of apple products earlier than expected this summer, due to continued brisk movement and strong markets, according to apple shippers and officials from across the U.S., reported The Packer Online. Full Story

Archer Daniels Midland Company will eliminate about 3% of its global workforce, or 1,000 positions, in order to streamline its organizational structure. Full Story

A late start to the Chilean stone fruit deals strengthened demand and kept product moving at a brisk pace, importers noted. The plum market was particularly hot the week of Jan. 9. As volumes increase in January, prices will likely come down a little. Peaches and nectarines could settle in the $14 to $16-per-box range, and plums in the $18 to $22 range, reported The Packer Online. Full Story

A second wave of Dungeness crab is expected to hit the market when the North Coast of California opens to commercial crabbers on Jan. 15. A West Sacramento supplier claimed that cooked and cleaned crab will cost from $4.99 to $5.25 a pound, a 50 cent increase from last year, reported The Sacramento Bee. Full Story (Free Registration Required)

The spotted-wing Asian fruit fly was discovered at five locations in Maine, after taking four years to travel across the country from California, according to University of Maine Cooperative Extension fruit and pest management specialists. The Drosophila suzukii fly poses a serious threat to Maine fruit growers' blueberry, strawberry, raspberry and potentially other soft-skinned fruits and possibly even vegetables, reported Western Farm Press. Full Story