SVU Sale Process: It Looks Like It’s Cerberus’ To Lose
As the process to sell Supervalu continues to unfold, multiple sources have pointed to Cerberus Capital Management, LP as being the front runner to acquire all of Supervalu’s assets.
When the Eden Prairie, MN retailer/wholesaler first announced in July that it had hired Goldman Sachs and Greenhill & Co. to perform an asset review of the troubled firm, many industry observers wondered if Supervalu was saleable in one piece.
And in an October 2 story, Bloomberg reported that not only was Cerberus interested but so were other private equity firms Yucaipa, KKR and TPG Capital. However, the story added that those three investment firms were looking to acquire only pieces of Supervalu, not the entire corporate entity.
Several sources noted that they believe that Cerberus will be the only player willing to step up to the plate and acquire all of Supervalu’s assets, although one source believed that a deal could be announced with Cerberus as the lead player with additional organizations interested in specific pieces of SVU’s operation.
“First off, there has been a solid relationship between Supervalu and Cerberus (in 2006 Cerberus acquired 655 stores as part of the sale of Albertsons) and they continue to license the Albertsons name from Supervalu,” saidone Wall Street analyst. “I think Cerberus would have a keen interest in Supervalu’s Southern California and Intermountain (Washington, Oregon, Idaho) operations. Additionally, by selling the entire company (rather than in pieces), Supervalu could potentially escape future debt (currently at $6 billion) and pension fund obligations.”
If Cerberus did acquire all of Supervalu, another Wall Street analyst suggested that it could follow its Albertsons LLC strategy of selling stores in markets that were not a fit for the retailer (i.e. Northern California, where it sold 132 stores to Save Mart) or closing or selling stores in existing markets where it faces tough competition (i.e. Florida, where it has sold many of its stores to Publix and now only operates four units). Of those original 655 stores, there are now only 190 stores remaining, which trade as Albertsons Market.
“At the end of the day, the real estate value of its assets will be of major concern to any financial buyer,” that analyst noted. “A total entity deal would not only be preferable for Supervalu, it could be beneficial to a financial buyer for the value of the real estate (more than 1,100 supermarkets alone). I would guess that if Cerberus gets the whole Supervalu enchilada there will be other minority partners included, too.”
Asked who those might be, he responded, “You can never count out Yucaipa. Burkle likes these kinds of deals and he is the best candidate to acquire Acme and Shaw’s, both from a real estate potential and his ability to possibly lessen the burden of existing onerous labor contracts, as he did with the A&P deal. Beyond that, one could make an argument that strategic retailers like Ahold USA, Kroger or Harris Teeter would be interested in a smaller entity like Farm Fresh, or Kroger could work a deal with Cerberus to acquire Jewel, which might be backsliding, but has many great locations and is still very profitable. Or Cerberus could opt to keep some of their better performing properties like Save-A-Lot and look to flip them in a few years. There is an advantage to both sides for a ‘one entity’ deal,” the analyst stated.
We have also learned that Sam Duncan, former president of Fred Meyer, is involved with the diligence process for Cerberus and could emerge as CEO of the new entity if the private equity firm does gain control of Supervalu. Interestingly,Duncanhas previously worked with Bob Miller (current CEO of Albertsons LLC) at Albertsons and Fred Meyer and has also worked with Sam Martin, who now serves as president and chief executive of Yucaipa-owned A&P. Duncan began his career with Albertsons.
That indeed is a somewhat surreal example of “six degrees of separation” that centers on Ron Burkle (Yucaipa). Burkle’s realm has included Miller, Duncan and Martin. I wonder when John Standley and Ken Martindale (Pathmark, Rite Aid) will enter the picture?
We have also learned that the original October 15 deadline to receive all bids (a prospectus detailing all properties was issued by Supervalu in late August) has been extended, although our sources all agreed that a potential Cerberus-led deal could be completed by November 15.
Clearly, this story remains very fluid and could see an outcome occur more quickly than many expected.
And on a related note, several of my independent retailer friends in the Mid-Atlantic have called me in the past month to note that they have either met with, been called by or received a letter from new Supervalu chief executive Wayne Sales.
What, a Supervalu CEO who actually communicates with his customers? Of those independents who I have communicated with, the consensus was that Sales was outgoing and a very good listener, and someone who clearly wants to change the company’s image of inaccessibility and clandestineness.
But good PR is not only good for Supervalu’s, customers, associates and vendors, it’s also good for Wayne Sales, who would love nothing better to see the sale of the beleaguered retailer/wholesaler happen quickly, smoothly and in one piece.
Although Sales is being well compensated for his role as Supervalu’s top dog, he is in a challenging and unique position – needing to improve the company’s morale while hoping his marketing agent – Goldman Sachs – can put some lipstick on this pig.
And the quicker that happens, the better it will be for the many (but not all) people involved in this process. Lord knows, Wayne Sales won’t get any relief from Supervalu’s upcoming second quarter earnings report (the period ended on September 8 and financials will be released on October 16), so he needs to keep all the intangible pieces of the company propped up until Supervalu can find a buyer.
Clearly, there is momentum that could lead to a relatively quick deal (perhaps by next month) involving a single buyer. That, of course, would be the best scenario for Sales and Supervalu. However, if the company is broken up internally, Supervalu would still be burdened by its cavernous debt ($6 billion), its continued participation in several underfunded pension plans and untold months of attempting to sell the many diverse and disconnected pieces of the company.
And let’s assume private equity firm Cerberus does walk away with the prize (?). Not only does that unshackle SVU from all if its problems, the new owners would have greater flexibility and more time to determine how to best utilize those assets.
For instance, Cerberus could hold on to Save-A-Lot (where licenses control more than 60 percent of the stores) and then flip it in a few years. And just because Kroger might have an interest in Jewel it doesn’t mean they’ll walk away with the 182 store chain. Despite downsliding market shares over the past five years, Jewel still has the best real estate in Chicagoland and remains a cash cow – two prized elements that might entice a PE firm to hold on to its tarnished gem.
And that takes us back my dialogues with those independent retailers. Because not only did those aforementioned merchants call me to alert me about how pleased they were to see Supervalu’s new CEO be so proactive, they also called to express their concerns about their future supply situations should Supervalu sell its wholesale division.
And all of them told me they are aggressively talking to other Northeast wholesalers, just in case the Supervalu wholesale outcome isn’t to their liking.
Weis Markets Vendor Meeting Proves To Be Stellar Affair
The third time is a charm. Weis Markets hosted its third annual strategic alignment summit and this year the Sunbury, PA regional chain nailed it.
A record 400 vendors attended the conference which was held at the BWI Marriott inLinthicum,MD.This year’s event offered a shorter, more streamlined program featuring four top Weis executives who discussed current market conditions and merchandising and marketing issues.
Under the guidance of CEO Dave Hepfinger, Weis Markets has had a remarkable three year run, elevating virtually every measurable metric and also gaining momentum in the intangible areas such as employee morale and vendor perception.
Hepfinger kicked off this year’s meeting with a review of the current economy, noting the difficulties and challenges all retailers face with significant unemployment and under-employment. He noted that in his nearly 40 year career in the grocery industry he hasn’t witnessed a “down” cycle lasting this long and predicted that it could be another four to five years before the economy normalizes. He noted that in the past four years Americans have lost $12.8 trillion in personal wealth, adding that 9.3 million people have lost their health insurance and that 11 million mortgages remain “underwater.”
In discussing the challenges that face middle-classAmerica, Hepfinger illustrated that while many are struggling, inflation continues to be a significant factor. He produced a slide listing four items – Jif 18 ounce peanut butter, Tropicana 64 ounce orange juice, Hellman’s 32 ounce mayonnaise and a gallon of unleaded gasoline. In 1996, the average cost of those four items totaled $7.76. Today, the combined price of those products averages $16.66.
Hepfinger reinforced Weis’ go-to-market mantra: “We are a sales-driven culture.”
After hearing that remark, one sales rep whose company is based in Pennsylvania, asserted, “It’s refreshing these days to hear a customer that is aggressively seeking to sell more boxes and is not mired in too much process or mind-boggling entry fees that adversely affect the return on our investment.”
Hepfinger then provided the audience with a recap of sales, earnings and capital investment plans which have led to new stores, acquisitions and meaningful improvement in IT and analytics.
He also showed the audience how Weis’ market base is changing, noting that in the year 2000, $200 million in company sales were harvested outside its core Pennsylvania marketing area. Last year volume in Maryland, New York, New Jersey and West Virginia reached $710 million. Hepfinger also illustrated that in the past four years Weis’ annual weekly volume has risen 14 percent, adding for the first time in its 100 year history, the retailer produced first week sales at new or remodeled stores of more than $1 million.
And on the subject of measurable areas of improvements, Hepfinger’s checklist included: better store level operating performance; better supply chain performance; increased focus on talent development and succession planning; record investments in IT support and analytics; and much improved collaboration with its vendor partners.
Following Hepfinger’s speech, executive VP Kurt Schertle who along with his boss, have shaped many of Weis’ policies over the past three years, addressed the group.
He stated that one of Weis’ objectives is to continually seek to upgrade talent, including finding the next generation of its leadership team and its merchandising directors and the revampment of its store managements teams.
He noted the importance of improved category management. “We have conducted an assessment on our category management needs and developed a training and development plan,” said the 41 year old exec. “We have also conducted training on analytics and shopper-centric planning and we currently have joint planning category pilots under way.”
Also soon to be unveiled is a new assortment and shelf presentation and further training on pricing and promotion planning. Schertle also revealed that Weis is investigating and will be implementing additional decision support tools shortly. He told the audience about the retailer’s improved In-Store Execution (ISE) teams which have produced faster markdowns leading to improved “speed to shelf” results.
Additionally, Schertle asserted that Weis’ ISE teams are now expanding into the company’s “fresh” departments where 40 percent of meat, 60 percent of seafood and 15 percent of produce are now CPG-driven.
To illustrate the importance of “fresh” category management and its tie-in with Weis’ ISE team, he noted that last year a four foot set of specialty salad dressing in the produce department generated $1.7 million in gross profit compared to an eight foot dry salad dressing set in center store which generated only slightly more ($2 million) gross profit. Schertle’s point: look to maximize sales opportunities, especially those that aren’t always readily apparent.
Like Dave Hepfinger, he emphasized the importance of Weis’ sales driven culture, illustrating how that mindset helped regain lost sales in pharmacy primarily due to the fact that 20 brand name drugs lost their proprietary status. The $32 million sales hole those changes created was offset by improved immunization marketing and enhanced children’s prescription sales.
On the “fresh” side of the business, Weis has made major strides with its cut fruit and vegetable efforts and its gourmet burger program which has yield a 30 percent sales gain over 2011.
In dairy, the dip in fluid milk sales has been somewhat mitigated because Weis is now adding products and promoting dairy items that are organic, soy-based and grass-fed.
Schertle also discussed Weis’ improvement in attracting younger customers (the average customer is now 49 vs. 54 three years ago), and the company’s gains in average transaction size (up 6.3 percent since 2009).
And finally, Schertle left the vendors with this message: “There is still room to grow. To grow sales, we need to convert more secondary customers into primary customers and increase our average transaction to $35. This is where we’re headed, but we need your help. We need your simple ideas for sales. As we’ve said earlier, we may not be your biggest account but we want to be the one that gives you the best sales growth. Today we are a more nimble company, and unlike some of our competitors, we’re not bogged down by process, we have empowered our people to be responsive and decisive. It’s what good companies do.”
After lunch, VP-marketing Brian Holt gave an overview of Weis’ multi-faceted marketing programs, many of which are new. He urged vendors to become proactive in seeking out partnerships with the company and pointed to successful frozen food and dairy month promotions that provided sales lifts.
With 2012 being Weis’ 100th anniversary, the company placed a high priority on its “gold” loyalty card, targeted towards its best customers. Holt detailed the sales successes associated with related mailings and coupon offers, while also informing the audience of the “misses” that they experienced (and learned from) with this new initiative (large ticket items, low penetration items, low purchase frequency and new items). Next year, Holt asserted, there will be fewer offerings but those mailers and email blasts will be improved.
Like other retailers, Weis has increased its stake in digital marketing and Holt showed examples of utilizing such social media platforms as Facebook and Twitter to drive increased sales though contests and promotions. These programs have in turn created more interactivity between the retailer and its customers. He added that Weis has developed a mobile application that can create shopping lists and locate the closest Weis store for a customer and has begun a blog called “It’s In The Bag,” which communicates company news, sustainability updates and healthy living tips.
In closing, Holt informed the vendors that they are now selling digital advertising, utilizing its website www.weismarkets.com as well as Facebook and tie-ins with other local media.
Dan Koch, VP-fresh merchandising, capped off the day by outlining his departments’ priorities for this year. In the area of improving quality and freshness perception, Koch disclosed that offerings such as cut fruit will be prepared more frequently and in smaller batches. When discussing sales penetration, Koch’s goal was for a “100 basis point improvement across all fresh departments.” And in the area of increasing and improving training programs, he noted, “The focus is on selling up, and we must continue to prioritize service, service, service.”
On the merchandising side, Koch told the attendees that there will be more vertical sets in the fresh departments as well as better signage and improved décor to highlight “local” items. Also on the rise at Weis is more specialized merchandising and broader selections of items in those categories such as organic and vegetarian.
In touting Weis’ overall effort to bring greater service, quality and value to its customers, Koch asserted that interaction between the company’s associates and its customers is vital. Koch also spent some time discussing food safety, a huge concern for every retailer and manufacturer. He noted that thus far in 2012 there have been 72 recalls involving 417 individual items. In that regard, Weis is working hard to increase education and awareness with producers, processors and food handlers. He encouraged all manufacturers in the audience to join Rapid Recall Exchange (www. rapidrecallexchange.org), the non-profit group that serves as a centralized online notification system for food and consumer goods recalls.
In summary, Koch declared, “Fresh departments are on the rise. At Weis, we are and continue to localize where possible.” He added that Weis still needs to upgrade its talent in the fresh department and the entire fresh portal has benefited from a strong corporate commitments and store operational support.
As you’ve heard me say before, I’m a big fan of this type of vendor meeting. Any forum in which retailers can communicate directly with their vendors, especially in a relaxed and somewhat interactive setting, can only be termed a good thing.
And when the event begins at 10:00 a.m., gets everybody on the road by 3:00 p.m. and covers as much ground as the four Weis speakers did, that’s a really good thing.
Simply stated, Weis’ third Strategic Alignment Summit was by far its best yet.
‘Round The Trade
Fairway Market has officially filed the paperwork with the SEC to begin the process to go public (it’s trying to raise $150 million), something that had been rumored for months. Sterling Investment Partners, which has owned 80 percent of the high-volume metro New York retailer since 2007, will still control the business after the IPO is completed. The registration statement noted that Fairway’s model could be expanded beyond metro NY as far as New England and Washington, DC and could support up to 90 stores in that region – a figure that I’d say is mighty ambitious and possibly a significant overreach. And as well as Fairway is doing on the top line ($554.9 million in revenue with nine stores through March 2012 (it has since opened two other units), it lost $11.9 million this year and expects to post losses at least through 2014. As great as Fairway’s stores are, it just shows how intensively labor and capital oriented the retail food business is, especially when perishables are your signature calling card…Kraft Foods, Inc (KFT) exists no longer. Effective October 2, the company has split its brands into two separate publicly-traded business units – Mondelez International (now trading as MLDZ), will now sell such brands as Cadbury, Nabisco, Oreo and Trident – and Kraft Foods Group (now trading as KRFT), which is larger and houses such well-known grocery brands as Kraft, Oscar Mayer and Maxwell House…a bit closer to our base, The Hershey Co. recently unveiled its new 340,000 square foot chocolate manufacturing plant. Hershey invested $300 million in the unit, which it calls the “world’s most technologically advanced chocolate making facility,” adding that the upgraded plant “positions the company for its next 100 years of global growth.” According to the company, the new development infused $70 million into Pennsylvania’s economy and created more than 300 construction jobs. About 700 Hershey employees transferred from the manufacturer’s old facility on East Chocolate Avenue to the new plant which is officially located in West Hershey…improving news for independent retailers: the National Grocers Association’s annual financial survey was recently released and showed that independent grocers posted an average net profit of 1.12 percent and raised same store sales levels by 2.6 percent. “Economic, market and shopper challenges are demanding that grocery retailers seek new ways to grow sales and profits and find further efficiencies in their businesses,” said Peter Larkin, NGA president and CEO. “It is extremely encouraging to see independents have done just that. They have pushed through one of the worst economic downturns in our nation’s history and continue to do so with much success.” The survey added that with continued economic woes and their far-reaching impact on the shopper, independents were faced with difficult decisions relative to pricing and margins in an inflationary environment. Same-store sales among independents increased over 2011 by 0.6 percent, but once adjusted for food-at-home inflation, the independent sector lost ground at a rate of minus 2.2 percent. However, the total store gross margin increased to 26.33 percent, with important gains in key departments. This ultimately translated in increased net profits before taxes of 1.12 percent of sales in 2011 from 1.08 percent in 2010. The survey was co-sponsored by our friends at FMS Solutions and included data from 123 independent grocery firms…just before presstime, Safeway posted its third quarter sales and earnings. Net income for the 12 week period ended September 8 rose 20.6 percent to $157 million, overall sales declined 0.2 percent and ID sales (ex-gas) were virtually flat at 0.1 percent. Safeway CEO Steve Burd said the disposition of its 16 Genuardi’s stores was a prime reason for the sales drop. Those 16 units were sold for $111 million. Safeway said it expects to close the three remaining Genuardi’s stores in its fourth quarter, which it estimates will produce a loss of $11 million.
Retail Roundup
Village Super Markets, Wakefern’s second largest member (and its only publicly-traded one) posted another strong quarter. In its fourth period ended July 28, theSpringfield,NJmerchant posted an earnings gain of three percent to $9 million (despite continuing losses at its two newMarylandstores). Same store sales increased 1.8 percent. The 29 store retailer also stated that it would spend about $20 million in its next fiscal year for capital expenditures including two replacement stores and three major remodels. This fiscal year, Village produced a sales per square foot of selling space number (SPSFSS) of $1,112, one of the best in the industry among supermarkets…while its square footage per store is about three times that of Village, Costco also produces one of the best SPSFSS figures among all retailers. The Issaquah, WA club operator, which will open on November 10 in Concordville, PA, continued its recent run of strong earnings and stellar same stores sales. In its fourth quarter ended September 2, the nation’s largest club store retailer posted a net income gain of 27.4 percent to $609 million. Overall revenue increased 14.2 percent to $31.5 billion and comp stores sales (ex-gas) jumped an impressive six percent. CFO Richard Galanti told analysts that Costco will increase its cap-ex in fiscal 2013 between 20-33 percent ($1.8-$2 billion) and open 16 new stores, including nine in the U.S., it largest expansion in six years…Mark McGowan, formerly president of Ahold USA’s Stop & Shop New England division and most recently executive VP- supply chain for the big retailer, will be adding new temporary duties. McGowan has been named interim EVP-merchandising. This announcement fills the void left by Jeff Martin, who supervised both merchandising and marketing before his unexpected resignation from Ahold USA last June. Since then, Ahold has split the merchandising and marketing functions with Erik Keptner being named EVP-marketing. McGowan will hold the expanded role strictly on an interim basis as AUSA continues the search for a new leader of its merchandising team…Giant/Landover, another Ahold USA banner, is looking to sell its 760,000 square foot (now vacant) former dry grocery warehouse in Jessup, MD. That dry grocery business was shifted to a C&S depot in York, PA last year and the old Jessup facility seems very saleable given that it is one of the single largest distribution centers in the state of Maryland and can house 340 trailers…Wal-Mart is feeling some labor heat for the first time in decades as small groups of employees have staged walkouts at 28 stores in 12 states in a demand for better wages, and benefits and improved working conditions. Things could get worse in the next six weeks as the UFCW (which is leading the walkout effort) is threatening more job action on Black Friday, the busiest shopping day of the year. And on October 12, Wal-Mart told financial analysts that its 2014 growth plans would mirror those of fiscal 2013. The Behemoth noted it will still open more SuperCenters than “Division I” and Neighborhood Market units next year, but plans to more than double the number of Neighborhood Markets in theU.S.by fiscal 2016. More Wal-Mart news: a potential deal with developer Related Cos. and Wal-Mart to build a new store in southeast Brooklyn (East New York), which would have been the Behemoth’s first NYC store, has apparently fallen through. Now it appears that the anchor for that large 630,000 square foot project will be ShopRite. Also coming to Brooklyn is Aldi, which will occupy the space of a former Pathmark store in theSheepsheadBaysection of the borough. Pathmark will also be closing itsLower Manhattanstore (Cherry Street) in December. Once parent company A&P sells its 16 Food Emporiums inManhattan, The Tea Company will be left with only three stores inNew York City’s most affluent borough.
Local Notes
Be prepared for the battle of web-based grocers as metro NY based FreshDirect enters Philadelphia where it will compete with Ahold USA’s Peapod unit. FreshDirect, which recently celebrated its 10th anniversary, will begin home delivery to eight Center City zip codes and plans on expanding that radius next year. British grocery retailer Wm. Morrison Supermarkets invested $50 million in 2010 to acquire a 10 percent stake in FreshDirect, where sales are estimated to be about $325 million annually. Peapod, which has been delivering groceries through its Internet portal in a bigger area of the Delaware Valley region since 2011, recently expanded its virtual grocery-store billboards at more than 100 commuter rail stations in the markets where it operates (Chicago and the Northeast). I’ve seen the billboards and they are really cool. If I were in the prediction business, I might prognosticate that FreshDirect should be prepared to spend lots of money promoting its Philly expansion…Kathy Persian has been named Supervalu’s senior VP-chief information officer, replacing Wayne Shurts, who is leaving the company. Persian joined SVU in 2010 and most recently has been group VP-corporate planning, analysis and business process. Prior jobs included stints at Accenture and Best Buy. There’ll be more personnel shuffling now that Supervalu is on the selling block, but you’ve got to wonder if many of its key employees should have started their job searches several years ago. Two of those former executives have landed in better spots. Blaine Bringhurst, who many of you remember as senior VP-merchandising/marketing at Acme Markets based in Malvern, PA until he was shipped to headquarters purgatory in 2009 is Price Chopper’s new senior VP of sales, merchandising and marketing and Shirl Stroeing has also fled from Eden Prairie to become chief information officer (CIO) at Weis Markets, We wish both of them success with their new gigs…earlier this month Bottom Dollar opened its fifth store in the City of Philadelphia on Castor Avenue (Juniata Park) and is also looking to build another city store at Chew Avenue and E. Washington Lane (Mt. Airy). That project is currently under review. Since it first entered the Del-Val market in October 2010, the discount unit of Delhaize America has opened 48 stores in the Delaware Valley and Lehigh Valley regions with an additional 15 units in the Pittsburgh-Youngstown markets…on the brokerage front, the industry’s two largest firms, Acosta and Advantage, have news to report. Acosta has been to appointed to represent Rich Products and Olde New England Seltzers for its east region. Additionally, the large sales organization has been named by Kemps LLC to sell its products in the Mid-Atlantic, Pittsburgh/Cleveland and New England regions and will be the broker for Butterball LLC in New England. On a national basis, Acosta will now represent Godiva Chocolates for the grocery, club and drug channels. At Advantage Sales & Marketing, Tanya Domier has been named chief executive of the Irvine, CA based brokerage company. She succeeds ASM founder and chairman Sonny King, who now becomes executive chairman. Domier joined ASM in 1990. She began her food industry career at the J.M. Smucker Co…there are several obits to report this month including the great Joe Saker, founder of Foodarama Supermarkets (now Saker ShopRites), Wakefern’s largest member. Saker, 83, passed away last month inShrewsbury,NJ. Saker first joined Wakefern in 1947, a year after the co-op was founded and operated his first ShopRite store in Freehold in 1951. I had the great pleasure of meeting Joe Saker several times, especially when it involved the Academy of Food Marketing at Saint Joseph’s University, one of his passions. Actually, Joe was one of the founders of the Academy in 1962. Saker was also instrumental in the creation of the New Jersey Food Council, which in my opinion is the strongest state food related trade group in the country. Saker was an old school merchant, gifted with passion, instinct and entrepreneurial skills rarely seen in the grocery business today. He will be missed by the many, many people he touched in a highly productive life. I’m very sad to report the death of B.J.Land, VP of Coca-Cola’s Minute Maid unit, and truly one of the nicest guys in the business. B.J. died of cardiac arrest following a long bike ride. He was just 53. Steve Briggs, who worked with the Baltimore native for many years summarized B.J.’s persona so well: “He was a terrific person to be around both inside and outside of work. B.J. had such great qualities and his impact and emotional support on people is nothing like I’ve ever seen, and that was because of his personality, He impacted so many.”…also passing on was one of my favorite personalities of the past 50 years – Alex Karras. Karras died earlier this month at the age of 77 from kidney failure. He had also suffered from dementia over the past several years, thought to be accelerated by head injuries/concussions sustained during his 12 seasons as a defensive tackle with the Detroit Lions (he was one of 3,500 former players suing the National Football League over the head injury issue). Karras was a terrific football player (he was drafted 10th overall by the Lions in 1958 from the University of Iowa) and sometimes bad boy (he was suspended for the entire 1963 season – along with fellow great Paul Hornung – for gambling) who would have been a star even in today’s game (he was named first team All-Pro three times). Karras was also one of the few athletes who made the successful transition into acting, starring in the TV sitcom “Webster” and appearing in such films as “Paper Lion” (1968) and “Porky’s” (1982). But his real comedic talent was brought to life in Mel Brooks’ great flick, “Blazing Saddles” (1974) in which he played dimwitted brute Mongo. Not only did Mongo punch out a horse in a famous classic scene, he also delivered the unforgettable line: “Mongo only pawn in game of life.”…and almost finally: if you have recently wondered about how dire the need is for Supervalu and its investment advisor Goldman Sachs to sell the company as quickly as possible put the meter on “Very Urgent.” On Friday October 12, Supervalu’s stock was trading at $1.85 per share. Ouch!…one last thing: the Special Section featured in this month’s issue devoted to the 50th anniversary of the Food Marketing Program at Saint Joseph’s University was truly a special treat to help develop. Not only do I strongly believe that the entire food marketing enterprise is the finest of its kind in the country, working with Bob Higgins, Christine Hartmann, George Latella, Dr. Rich George and others involved in educating and producing future industry talent, was a tremendously rewarding experience. And just before we went to press, I had the pleasure of hearing Denise Morrison, CEO of Campbell’s, address a packed house of about 240 students at the annual Pat McCarthy Lecture Series. Denise’s speech was not only insightful, she connected with students on a real visceral level. A day earlier, at the Academy of Food Marketing’s (AFM) Board of Governors meeting, legendary food broker Dick McCready stepped down from the Board after 25 years of service, the longest tenure in the history of the AFM. Kudos to Dick, who after nearly 60 years in the biz, can still rock & roll with the best of them.