IGA Coca-Cola Institute Perspective

Celebrating the Success of the Spring Supermarket Management Class:
Make Plans for our Fall Class Today

A message to IGA Retailers from …
Dr. Paulo Goelzer
CEO
IGA Coca-Cola Institute

For the past several months we've been promoting our spring session of the Supermarket Management Class in this column, telling you about the shared learning opportunities the class would afford your store associates. Today I am pleased to report that class, which took place last week Mar.3 – 7, was a rousing success.

In total we had 35 participants, mainly stores owners and managers, from around the world. Eighty percent of attendees were from U.S. states including California, New Mexico, Kentucky, Wyoming, Oklahoma and Alabama – and 20 percent of attendees from locations around the world including Barbados, Kingdom of Bahrain, Tortola, St. Lucia and St. Kitts. These attendees represented 19 stores/organizations, 63 percent of which were IGA members, and 37 percent of which were other independent retail organizations.

During the class, our 16 faculty members discussed keys issues in the grocery industry, and fostered a best practices exchange of information among the attendees. At the end of the class attendees developed their own "To Do" lists designed to continue the learning within their own stores. Also 30 percent of the attendees decided to enrich their educational experience by blending the classroom training with an online curriculum. Attendees who complete this additional requirement will be awarded a diploma.

To see the class attendees of the spring class please visit our SMC Graduate page on the IGA Institute Web site, or visit the Institute's home page to learn more about the fall Supermarket Management class at The Coca-Cola Company headquarters in Atlanta, Ga., during the week of October 13 – 18, 2008.

Thanks,

Paulo Goelzer

Retail News

Target Corporation will soon complete construction of its first food distribution center in Lake City, FL, according to Industrial Info Resources. The facility will enable a variety of frozen, refrigerated and fresh produce items to reach customers in the southeast and will operate in partnership with Supervalu Incorporated. Full Story

"There really are no clear signs of the customer pulling back at Kroger," according to the chief executive of the 2,507-unit supermarket chain, David B. Dillon. Although same-store sales in the most recent quarter were flat, Kroger executives estimated that product cost inflation in the fourth quarter was 3.8% compared with a year earlier, the highest that the company executives had seen in many years, reported The New York Times on the Web. Full Story (Free Registration Required)

CHS Inc. signed a purchase agreement to acquire 33 Zip Trip convenience stores in the Spokane area, owned in part by Jopo, Inc., and Jo-By Enterprises, LLC. CHS will operate Zip Trip locations under its Cenex energy brand. Full Story

Awareness of in-store health clinics as a concept increased from 38% last year to 47% this year, according to WSL Strategic Retail's Pulse report. The number of Americans who claimed to have used an in-store clinic increased modestly, from 6% to 8% overall, and from 15% to 18% among those aware of clinics, reported Supermarket News. Full Story

Carnival Food Stores, Inc. will open its first in-store dental clinic, an All Smiles Dental and Orthodontics practice, at its newly remodeled Carnival Super Market in Plano, TX. Low-cost dental care will also be provided at other Carnival stores through All Smiles' mobile dental clinics. Full Story

Manufacturer News

Pilgrim's Pride Corporation will close a chicken processing complex and six of its 13 distribution centers in the U.S., part of a plan to curtail losses amid record-high costs for corn, soybean meal and other feed ingredients and an oversupply of chicken in the U.S. The closings are expected to begin immediately and will be completed by June. Additionally, the company is in the process of reviewing other production facilities for potential mix changes, closure and/or consolidation in response to current negative industry fundamentals. Full Story

Sales of rechargeable batteries increased 14% in 2007 to 15.5 million units and generated $170.7 million in revenue in 2007, according to the NPD Group. To keep pace with that surge, suppliers are creating more powerful and sophisticated chargers and batteries that are due out soon or in stores already, reported Drug Store News. Full Story (Free Registration Required)

Conditioners are driving sales growth in the hair care industry as consumers look to put back into their hair what other styling products have taken out. Sales of conditioner increased 34% in Italy and 25% in Germany between 2002 and 2007, according to Mintel. The trend is expected to hit the U.S., reported Cosmetic Design. Full Story

Country Fresh Inc. opened a new facility in Hatfield, PA. The 55,000-sq. ft. processing plant will produce the company's full line of fruit and vegetable products and manage its year-round production of fresh-cut apples. Full Story

Skyy Spirits will launch Skyy Infusions, a premium, fruit-infused vodka made in five all-natural varieties: citrus, raspberry, cherry, passion fruit and grape. By focusing on the natural trend, the company hopes to gain market share from its U.S. competitors, where the brand is currently the number four vodka behind Smirnoff, Absolut and Grey Goose, reported Brandweek.com. Full Story

Flavors company AM Todd will introduce two new mint oil blends that it claims will allow food companies to stop the trend of rising mint prices, reported Food Navigator. Full Story

General Mills introduced Strawberry Chex, which combines oven-toasted rice and corn squares with a touch of berry. Full Story

Foodservice News

McDonald's launched Station M, an internal blog, geared at increasing interactions between crews at nearly 15,000 locations across the U.S. and Canada. Station M allows employees to post content and begin online discussions on a variety of topics, including new McDonald's products, promotions and operations, as well as general, nonbusiness related issues. The company hopes blogging will help improve internal communications and help sustain strong sales, reported Brandweek.com. Full Story

Starbuck's temporary closure of 7,100 stores for employee training caused minor inconveniences to coffee drinkers and little gain for competitors, according to global research firm Synovate. The survey showed that Starbucks' timing was ideal, with only about one in 10 respondents saying they planned to purchase coffee between 5:30 and 8:30 pm, reported QSR Magazine. Full Story

Papa Gino's, Inc. selected the ONOSYS Online Ordering system for its Papa Gino's Pizzeria and D'Angelo Grilled Sandwiches restaurant chains. The online ordering technology provides guests with a way to view menu choices and place orders for pickup or delivery. Full Story

Health News

Treating patients with bacteria may be an effective way of reducing their risk of repeatedly developing painful kidney stones, according to researchers at Boston University. People naturally carrying the bacterium Oxalobacter formigenes were found to be 70% less likely to have problems, and scientists are now investigating the possibility of using the bacteria as a "probiotic" treatment, reported BBC News. Full Story

Washington News

The president of the Westland/Hallmark slaughterhouse claims no unsafe beef was processed at the company's plant, and that the video showing ill cows being pushed with a forklift depicted animals headed for euthanasia, not for the food supply, reported The Associated Press. Full Story

Meanwhile, several companies are quietly recalling products that used Westland/Hallmark meat, according to The Seattle Times. Because the recall is indirect, USDA did not contact food producers, and food manufacturers said they are under no obligation to notify consumers. Full Story

Several congressional leaders agreed in principle for an extension for the Farm Bill until Apr. 18 after realizing that the bill would not meet the original extension deadline of Mar. 15, reported Feedstuffs. Full Story

Houston convenience store owners will have to register their businesses with the city and install cameras, drop safes and panic buttons under a proposal headed to the City Council. The council's Public Safety and Homeland Security Committee recommend the proposed ordinance, which is aimed at controlling crime at hundreds of convenience stores across the city, reported the Houston Chronicle. Full Story

FDA has no standards for acceptable levels of pharmaceutical residue in bottled or tap water, though it does set limits for chemicals, bacteria, and radiation, reported The Associated Press. Full Story

Global News

Ahold plans to repurchase 56 supermarkets in the Netherlands from Schuitema, the supermarket retailer that Ahold has been seeking to divest. The stores, branded C1000, would add about $706 million to Ahold's retail sales in the Netherlands, reported Supermarket News. Full Story

Mumbai, India-based Marico Limited sold its processed foods business under the brand "Sil" to to the Indian subsidiary of Good Food Group A/S, Scandic Food India Private Limited. Full Story

German retailer Tengelmann is selling the Hungarian operations of its Plus chain to Austria's Spar group. Following the merger, which is subject to cartel approval, the number of SPAR Hungary branches would rise to 378, reported Interactive Investor. Full Story

A United Arab Emirates supermarket chain, Union Cooperative Society, agreed to a government request to control the price of several basic food items as the country grapples with near-record inflation. Union Cooperative Society agreed to fix the retail price of 16 food items such as cooking oil, flour and rice this year and raise them in line with increases in wholesale prices. Basic food prices could rise as much as 30% this year, according to Union Co-op, according to Trade Arabia. Full Story

All prepackaged food products in United Arab Emirates must have an Arabic label, effective Apr. 25, according to United Arab Emirates government. Full Report

China's Zhongpin Inc. began construction on its prepared meat facility in Changge City, Henan Province. The new facility will add 28,800 metric tons in annual capacity of prepared meat for a 114% increase over Zhongpin's current capacity, bringing total capacity of prepared meats to 54,000 metric tons. The facility is expected to cost $13.2 million. Full Story

Vietnamese fast-food companies are using Western branding techniques to gain leverage in the country's fast-growing consumer market. Next year, the country will face pressure to make it easier for foreign fast-food stores to open under the terms of the country's entry into the World Trade Organization in 2007, reported The Wall Street Journal. Full Story (WSJ Subscription Required)

McDonald's chicken products will now be featured more prominently on the menus in New Zealand in an effort to overtake KFC as the country's largest chicken chain. The move comes as the burger chain struggles with flat demand in New Zealand, reported The New Zealand Herald. Full Story

Market News

The Oppenheimer Group will bring stone fruit grown in California's Central Valley to market for the first time this spring. The company formed a partnership with Bujulian Brothers, Inc., Wildwood Packing and Cooling, and YNT Enterprises that will double its annual stone fruit volume. Full Story

Premier Vineyard Estates LLC purchased the 650-acre Wallula Vineyard in Washington. The state has about 32,000 acres of vineyards, which makes the purchase about 2% of Washington's total wine grape growing land, stated Coke Roth, a Tri-City attorney and wine aficionado, reported Tri-City Herald. Full Story (Free Registration Required)

Greg Paul Produce Sales Inc. reached an agreement to be the exclusive marketing agent in the U.S. and Canada for Big E Produce. Plans call for a Lompoc, CA sales office to be opened by the end of the month, reported The Packer Online. Full Story (Free Registration Required)

California dairy farmers will earn an average of $1.72 per gallon for milk as of Apr. 1, according to The California Department of Food and Agriculture. That is up about 10 cents a gallon from current prices, but farmers will still be earning 30 cents a gallon less than they did in December, reported California Farm Bureau.

Diesel-fuel prices soared just as many California farmers begin fieldwork for spring planting. Farmers explain that they will be as efficient as they can, often by trying to reduce the number of trips a tractor makes through a field. A few farmers have fuel storage facilities and bought diesel fuel when prices were lower last winter, but many farmers do not have that option and must buy a truckload at a time, reported California Farm Bureau.

International Trade Administration extended the time limits for the preliminary results of the Eleventh Antidumping Duty Administrative Review of pasta from Italy. Full Notice

NMFS prohibited directed fishing for Pacific cod by vessels catching Pacific cod for processing by the offshore component in the Central Regulatory Area of the Gulf of Alaska. Full Notice