Schlicker Deserving Of First Ballot Hall Of Fame Induction
It is with bittersweet feelings that I write my thoughts about the soon-to-be retiring Carl Schlicker, COO of Ahold USA.
The bitter: the grocery industry, which continues to be plagued by an overdose of process, is losing one of its best talents of the past 25 years – a man not only possessed with a great depth of knowledge and insight, but a leader who has always been sensitive to the needs of his people and loyalty to his company. That’s a very rare combination today.
The sweet: the satisfaction of knowing that Carl, 61, gave it his all in a career that will span nearly 40 years when he steps down as Ahold’s top man in the U.S. in February. As he told me, “Physically I can still do it, but mentally it’s become more demanding.” There is also sweetness in the time that he wants to spend with his family (children and grandchildren) and especially his wife, Sue, who he readily admits, sacrificed a lot because of the demands of Carl’s many and varied roles at Ahold USA. “Yes, she sacrificed a lot,” Schlicker noted, “but she contributed a lot more. Without her, my success would not have happened.”
I’ve written many columns in my nearly 40 years in the biz about people I’ve admired (and a few about people I didn’t), but my level of my appreciation of Carl as a business leader and as mensch ranks him among the finest people of my generation.
In the late 1990s, when he came to Giant/Carlisle to oversee store operations as part of Tony Schiano’s great team that followed him from Edwards in Windsor Locks, CT, Schlicker was often referred to as “Jersey Carl.” His tough guy reputation might have been aided by the fact that the former Marine was born in the Garden State (Elizabeth) and his father was a police officer, but store managers and DMs told us that, while Schlicker was fair, he was also demanding, and at times, contentious.
At his next stop at Giant as executive VP-sales and merchandising, suppliers and brokers also spoke of Schlicker’s fairness, adding that he was always prepared and very aggressive. However, several made it a point to note that if you didn’t deliver on what you promised, a trip to the woodshed was not unheard of.
The truth is, Carl never lost that edge; that drive and frankness are two of his best assets, but he learned to temper it.
I watched that external mellowing evolve over the past 10 years, but especially so after he was named CEO of Giant/Carlisle in 2007 and a year later when he moved to a bigger stage as chief executive of Stop & Shop and Giant/Landover.
In late 2009, when Schlicker was selected to head Ahold USA’s major restructuring effort it represented, in my opinion, an affirmation that the “everyman” in all of us could be duly recognized. Sure, Ahold could have easily chosen a better educated, more polished and more experienced executive to lead its most important project in the U.S. (which it entered in 1979), but wise men like Larry Benjamin (formerly Ahold’s top man in the U.S.) and former CEO John Rishton realized that prmoting a team player who understood Ahold USA’s culture and chemistry would be a winning proposition.
And with a project as daunting and complex as Ahold USA’s corporate restructuring, the leadership abilities and immense skill package of Schlicker’s really shone. As the unit struggled with meeting timelines and occasionally with execution, Schlicker was at his best during that challenging period. He was upbeat with his team, encouraging them to think positively about what the end results would bring. His communication skills were excellent. And even though certain areas like digital marketing and enhanced technology weren’t instinctive for him, he believed in taking risks that would not only maintain Ahold’s dominant position in the Northeast, but would improve it by differentiating the Ahold USA banners from its competitors.
Today, I rarely hear any “Jersey Carl” stories anymore; Carl Schlicker has become a delegator and a great listener. While some observers might think he “bleeds” Ahold,” I don’t think that’s the case at all, despite his tenacious loyalty. Carl “bleeds” for his people, that’s how much he cares for and admires them.
As long as I’ve known Carl, on a personal level, he really hasn’t changed that much. Yes, he’s opinionated (that’s a good thing), he’s got a great sense of humor (and a self-deprecating one at times) and he’s a lot of fun to hang with. Plus, his BS-O-Meter is arguably the best in the entire grocery business (he’s so intuitive and quick, like a baseball speed gun that reads “curve ball, 85 miles per hour”).
Those who are fortunate enough to know Carl personally and professionally really comprehend what makes him successful – there’s no hypocrisy, no “double speak,” no spin and very little politicking. If you like your coffee very sweet, Carl’s not your man. And if you’re cup is always half empty, you’ve also come to the wrong café.
In the five days since Carl announced that he was stepping down, I’ve talked to at least 30 Ahold USA associates (from corporate to the divisional headquarters to the stores). Unanimously, their admiration for him is very strong, but there’s a bit of sadness, too.
They know, like I do, that leaders like Carl Schlicker are rare commodities and are almost impossible to replace. I’m proud to say that he’s been a difference maker and will always be a friend.
Cerberus Deal Seen As ‘Very Close;’ But Collapse Could Be Catastrophic For SVU
Sources tell us that a potential deal that would see Cerberus Capital Management (and additional financial partners) acquire the assets of Supervalu (SVU) remains very much alive and seemingly close at hand. However, those same analysts believe that if a potential agreement falls apart then Supervalu would have to wait many months to dismantle its ailing company and would still be burdened with many of its current problems.
“It still remains Cerberus’ to lose, and I’m told an announcement of a deal is very close to being announced” said one of our Wall Street sources. “They’re the only ones that will offer to buy the entire entity and, short of selling the whole enchilada, Supervalu’s options then become very limited.”
The key for Supervalu is that any deal at this juncture must be fully inclusive – a total asset sale of the Eden Prairie, MN-based retailer/wholesaler would mean that some of the company’s most burdensome financial issues – including its $6 billion debt, its onerous labor contracts and related pension liability issues – would be somebody else’s responsibility. Anything short of a one-step sale would mean that Supervalu would have to continue operating with those handicaps, even if it could gain more value if it sold its assets in a more piecemeal arrangement.
“I think Cerberus will wrap this up before the end of the year,” said another Wall Street analyst. “I’ve heard that they have made their deal with Supervalu and have gained the necessary financing that’s needed. And I’m hearing the deal will be in the $5-$6 per share range. Obviously, with all of that comes the assumption that Cerberus has its leadership team in place as well as a strategy for what assets it will look to keep and what to sell as well as a theoretical timeline of when these asset decisions will be made.”
We’ve been hearing for the past several weeks that Bob Miller, CEO of Albertsons LLC, would be spearheading Cerberus’ expanded grocery presence if they can consummate a deal with SVU.
Miller is a veteran grocery executive who began his career with Albertsons in the late 1960s. He’s had many big jobs in the industry, including CEO of Fred Meyer (which was controlled by hedge fund magnate Ron Burkle and was sold to Kroger in 1998), CEO of Wild Oats and chairman of Rite Aid Corp. He became Cerberus’ point man when the big New York private equity player acquired most of the Albertsons stores (about 600 units Florida, California, Texas, Louisiana, Colorado) that Supervalu did not purchase in the historic 2006 deal.
Miller would be an ideal candidate to lead the new (or newly expanded) organization, having both the leadership skills and a keen understanding of industry dynamics (people, systems, real estate, etc.). Also apparently coming on board in a senior executive post (if Cerberus wins the bid) would be Sam Duncan, who worked for Miller at both Albertsons and Fred Meyer.
If Cerberus is successful in acquiring all of Supervalu, it will have many critical decisions to make concerning it physical assets. The most saleable pieces of the potentially new company would be Save-A-Lot, Jewel and some of the regional banners that Supervalu owned prior to the 2006 deal. At the top of that list would be Farm Fresh, Shop ‘n Save, Hornbacher’s and Cub. Shoppers Food & Pharmacy (another pre-2006 SVU property) is most likely a tweener and I’d bet that Cerberus’ first instinct would be to hope to sell it. Other banners like Acme and Shaw’s would likely be on the sales block from day one (if Cerberus would be fortunate enough to be able to find buyers – a tall task, indeed). While the Albertsons units on the West Coast (SoCal and Seattle/Portland) hold real estate value, their performance has been as abysmal as Acme’s and Shaw’s (which earlier this month laid off another 700 associates). Other assets such as independent wholesale and warehousing and logistics will also have to be considered – but probably not right away.
And don’t underestimate the value of the fact that, if the Cerberus deal occurs, the new company would operate as a privately-held organization, allowing one of the country’s largest equity firms the necessary time and flexibility to make crucial decisions about the futures those assets. Cerberus then could take its time and decide to hold on to certain properties, either to milk the real estate or attempt to improve existing banners that it then could eventually sell during the next 18-24 months. Of course, that would mean that Cerberus would have to invest in improving the physical plants, merchandising and pricing structure, as well as find effective new leadership, both corporately and at some of its divisions. Beyond that, if it were to hold on to certain banners, a more regional approach to merchandising, marketing and community affairs (translation: minimize centralization) would prove to be beneficial.
And just before presstime, we’ve been told that a Cerberus acquisition could happen as quickly as December 1. As we’ve been saying for the past 90 days, it’s Cerberus’ deal to lose. And other than the folks at Goldman Sachs who are brokering this arrangement, the happiest man in the world might be Supervalu’s new chief executive Wayne Sales, who stands to make mucho, mucho dinero if this transaction occurs.
‘Round The Trade
Wal-Mart announced that net income in its third quarter, ended October 31, increased 9 percent to $3.63 billion and comp store revenue at its U.S. store gained 1.5 percent, its fifth consecutive quarter of comp sales gains. Overall sales at its U.S stores rose 3.6 percent to $66.1 billion (total company sales in its third quarter excluding membership fees from Sam’s Club were $113.2 billion). However, Wal-Mart maintained its cautious stance in the fourth quarter and going forward. “Current macroeconomic conditions continue to pressure our customers,” asserted Charles Holley, the mega-retailer’s CFO. “The holiday season is predicted to be very competitive but we are prepared to deliver on the value and low prices our customers expect.” A few weeks before the earnings release, Wal-Mart told financial analysts that it will devote $12-$13 billion to cap-ex in fiscal 2014 and will add 36-40 million square feet to its existing retail footprint. At its annual investment day held at company headquarters in Bentonville, AR last month, the Behemoth also noted that other cap-ex priorities will be used further improve technology and innovation in an attempt to further leverage expense and productivity. One of those key areas will be an expansion of its e-commerce initiatives. In theU.S., Wal-Mart will spend slightly less ($5.5-$6.2 billion) than this year (fiscal 2013) while adding 125 more SuperCenters (net new and conversions from division I stores) and roll out 95-115 new Neighborhood Markets. By FY 2016, Wal-Mart said it will operate more than 500 Neighborhood Markets. Curiously, no specific mention was made of the chain’s previously self-touted flexibility with its smaller and express formats. Instead, Wal-Mart U.S. CEO Bill Simon seemed to lump all of Wal-Mart smaller format expansion under the Neighborhood Markets umbrella. What about the 20,000 square foot units in urban areas in the northeast? Will their more “express” stores open in differentiated markets like Chicago and Gentry, AR? As mighty and powerful as the Behemoth is (and I’m not underestimating their clout for a minute) doesn’t it seem that the planet’s largest merchant often over promises and under delivers when hailing some of its “newest and greatest” plans? More Wal-Mart news: with the apparent mindset that “nobody is going to out-Black Friday us,” the boys from Bentonville will open its stores at 8:00 p.m. on Thanksgiving. Some advertised items have already been leaked. Personally, I can’t think of anything more exhilarating than waiting on line for many hours so I might be able to buy a $38 Blu-Ray DVD player, if any remain in stock.…I’m hearing glowing reports about Giant Eagle’s new format – Good Cents Grocery+More, which cut the ribbon on its first store in Ross Township, PA. The store is clearly a discount unit that several observers described as a format somewhat resembling Wakefern’s PriceRite format, but only larger. At 46,000 square feet, Giant Eagle senior VP John Tedesco described the new stores as “…the missing link between discount stores and supermarkets.” And consumers won’t have to travel far to find the competition – Delhaize America’s Bottom Dollar Foods has a relatively new location right next door that is roughly half the size of the Good Cents unit. Ole!..and speaking of Delhaize America (DA), despite an improvement in comp store sales at its rejuvenated Food Lion banner, same store revenue at all of DA’s U.S. stores, fell 1.6 percent and operating profit dipped 12.3 percent (other banners include Bottom Dollar, Hannaford, Sweetbay, Harvey’s and Reid’s) in the Belgian retailer’s third quarter. However at the more than 700 Food Lion units that have been rebranded (there are approximately 1,100 Food Lion stores in total) revenue gained 1.6 percent. As discussed before, DA’s problems are larger than its Food Lion repositioning. It continues to produce flat to slightly negative ID sales at its other big banner (Hannaford) and while there has been some improvement at its core Food Lion operation, the Salisbury, NC operator waited much too long to reinvent itself. New DA CEO Roland Smith has a daunting task ahead of him. On a related DA note, the company’s Hannaford unit has renamed its store manager of the year award after Ron Hodge, the former Hannaford executive who retired last month as DA’s CEO. The annual award recognizes the Hannaford store manager who best exemplifies the leadership qualities espoused by Hodge, who was a highly successful store manager earlier in his career. “Ron has a unique way of making associates feel valued and cared about and supported,” said Beth Newlands Campbell, president of Scarborough, ME-based Hannaford, which operates 181 stores inMaine,New York,Massachusetts,New HampshireandVermont. “He understands that store managers are the lifeblood of our business. Great store managers lead. They listen. They coach. They inspire. And day after day, year after year, they overcome challenges to succeed.” Hodge began his industry career with Hannaford in 1980 and rose through the ranks to become the banner’s president in 2000 and its CEO in 2001. A well deserved honor for one of the industry’s good guys…Leon Bergmann, corporate EVP and president of Supervalu’s independent business unit, has resigned from the company he joined (from C&S) less than two years ago. We expect talented people like Leon (as well as other former SVU execs like Bill Shaner and Tom Lenkevich) to emerge shortly in jobs that will utilize their abilities which were stifled under the Craig Herkert regime. And just before presstime, in a move that I’d consider collateral damage from Mr. Herkert reign of supreme benign neglect, comes word that Supervalu has frozen salaries. That message came in an internal email sent from executive VP- human resources and communications Dave Pylipow which states in part: there will be no 2013 merit pay increases for salaried team members. Additionally hourly team members in SVU’s corporate, banner, region and distribution center offices will not receive a merit pay increase. This does not impact store hourly or store pharmacy positions, or hourly operational distribution center roles. Promotions and job changes will continue to be recognized with pay changes where appropriate. Subject to any applicable laws, the frequency at which some team members are paid will change in early 2013. Today, all team members are paid on a weekly basis. Next year some salaried team members will transition to a bi-weekly pay schedule and others to a monthly schedule. Also, SVU’s service anniversary awards program as it exists today will be discontinued and as for salaried team members, as well as hourly team members in Supervalu’s corporate, banner, region and distribution center offices, the company’s matching contributions are being suspended. For store hourly and store pharmacy positions, as well as hourly operational distribution center roles, the company’s maximum matching contributions will be reduced from 5 to 3.5 percent. Pylipow added: “We recognize that these changes will have a significant impact on you, and we will continue to evaluate them in light of our business results. Thank you for your understanding and your work for the company in these critical times.” A sad situation for a company that must “divest itself from itself” ASAP…A&P (which in some surreal way finds itself in a slightly better position today than Supervalu) announced it will close three New Jersey Super Fresh stores on January 11 – Marlton, Plainsboro and Westmont – reducing the number of Super Fresh units to 22. On the executive front, Tom O’Boyle, EVP-merchandising, marketing and supply chain, has resigned from the company to take over the helm at Marsh Supermarkets where he will become chairman, president and CEO of the Indianapolis, IN based retailer which is owned by private equity company Sun Capital Partners. O’Boyle replaces Bill Holsworth, who had been serving as interim chief executive since May when Joe Kelley resigned to return his B
oston roots as president of Stop & Shop’s New England division. O’Boyle’s role will be filled by two current executives – Mike Mills, SVP-merchandising, and Ajay Kanwar, VP-marketing. If possible, things are even more dysfunctional now than in the bad old days at The Tea Company. O’Boyle was aggressively recruited from Sears/Kmart (and Albertsons/Jewel) as perhaps the most important cog in A&P’s comeback effort. O’Boyle’s departure follows a series of other executive exits and layoffs. Did somebody say “comeback?” Also just before presstime we discovered that Robin Michel, former president of Giant/Landover, has left Sears/Kmart and been named president of Natural Market Restaurants Corp., the Canadian company that owns Fresh & Green’s, Mrs. Green’s and Richtree Market Restaurants. Speaking about Fresh & Green’s only, Robin will need all of her grocery skills and a lot of luck to turn that beleaguered retail organization around…tell me it ain’t so – a world without Twinkies? Except for some possible mediation efforts (a long shot at this point), it seems like the end is at hand for Hostess Brands. After nearly a decade of “on-again, off-again” bankruptcies, 82 year old the snack maker is poised to finally pull the plug on its ailing business after employees struck the Irving, TX baker to protest a new labor contract. The result of its liquidation: 18,000 employees, 36 bakeries and a bunch of notable brands that will likely be sold to interested bidders once a Bankruptcy Court sorts things out. And beyond Seinfeld, we all know that there is value in such brands as HoHos, Ding Dongs, Ring Dings, Wonder Bread and of course, Twinkies.
Local Notes
Weis Markets late last month reported third-quarter net income of $17.2 million, up 1.2 percent for the period ended September 29, while its earnings per share increased 1.6 percent to $0.64 per share compared to the same period in 2011. For the period, Weis’ sales decreased 1.5 percent to $668.4 million, while comparable stores decreased 1.7 percent. This is first time in many moons that the Sunbury, PA retailer has failed to post positive comp store gains. Weis noted that its net income and operating income increases were the result of continued focus on disciplined promotions and marketing, increased store-level productivity, improved operational and supply chain efficiencies and a decrease in depreciation expenses due to its change of depreciation methods from accelerated to straight-line. While asserting that its overall market share remained stable, it also attributed its sales results to an unfavorable year over year comparison. In September 2011, a majority of its stores located in Pennsylvania and New York counties were impacted by flooding due to Hurricanes Irene and Lee, resulting in emergency sales surges throughout these areas. Also negatively impacting sales was a $4.5 million decline in pharmacy sales due to the conversion of brand drugs to generic. As part of its strategy to offset this decline, Weis has expanded its immunization programs. Other reasons offered for the challenging third quarter were cautious consumer spending due to high unemployment in Northeastern Pennsylvania, New York’s Southern Tier and parts of Central Pennsylvania along with higher gas prices throughout its five state market area. But to the casual reader, here’s what you should know: the investments that the company has made in infrastructure and talent under the leadership of CEO Dave Hepfinger and executive VP Kurt Schertle have put Weis in great shape for the future. Since 2009, nobody in the supermarket channel has enjoyed a better run. And given the foundation that’s been built over the past four years, the increased capital investment and the continuing growth of its talent base, one flat quarter won’t deter the “new” Weis Markets from future gains. And on December 9, Weis will open a new 65,800 square foot replacement unit in Fogelsville, PA (Lehigh County) and its first LEED (Leadership in Energy and Environmental Design) unit in its 162 store fleet…one retailer that continues to hit it out of the park is Whole Foods, which posted another quarter of remarkable sales and earnings. In its fourth quarter ended September 30, the Austin, TX-based natural and organics retailer saw overall sales increase 24 percent to $2.9 billion and comp store revenue jump a whopping 8.5 percent. “We ended the year with strong sales growth and record fourth quarter results, delivering the best year in our 32 year history,” said John “Wacky” Mackey, the retailer’s co-CEO and founder. The results cap a year in which comp sales increased 8.4 percent (the industry comp store median for all channels of retailers is about 2 percent positive). During its fourth quarter, Whole Foods opened seven stores and, in its current first quarter, has opened seven of a planned 10 new units (including a humdinger of an opening in Virginia Beach). Whole Foods announced that it has recently signed 11 new leases which call for new stores to be built in Morristown, NJ (a former A&P), Philadelphia; and New York City (two units, including a 39,000 square footer on 125th Street and Lenox Avenue in Harlem; the other is a 38,000 square foot store on 3rd Avenue and E. 87th Street.). Additionally, the retailer announced earlier this month it has agreed to acquire six Boston area locations from independent retailer John DeJesus (Johnnie’s Foodmaster) in South Weymouth, Arlington, Charlestown, Melrose, Somerville and Brookline (another Foodmaster unit in Medford, MA was acquired by Stop & Shop and three other units will close). There’s nobody hotter than Whole Foods, not only in the retail food business, but arguably in any segment of retailing…Ahold USA has promoted Dave Lessard to VP-produce and floral, filling the open slot that was created when Dan McCullough left the retailer earlier this year. Dave’s a sharp and talented produce executive who spent many years at A&P and AUSA banner Giant/Landover. We wish him well in his new post where he will report to Ahold USA senior VP- fresh merchandising Steve Mayer. Other Ahold USA stuff (if there wasn’t enough already): Ahold has officially agreed to build a new 162,000 square foot meat processing facility in Lower Allen Township, PA (Cumberland County) that will produce beef and pork products for the chain’s Giant/Carlisle and Giant/Landover divisions. The big global retailer said it will invest at least $63 million in the project and will hire about 850 workers. Ahold has named Vantage Foods to operate the facility when it opens in late 2013. Vantage currently supplies the southern region of Martin’s Food Markets from a facility in Lenoir, NC. “Ahold USA is proud to be part of the economic engine of central Pennsylvania, bringing new jobs to the region and a new business, Vantage Foods, to the state” said Mark McGowan executive VP- supply chain for Ahold USA. “This meat packaging facility is a significant investment in the future and these incentives will help us ensure its long-term success… Fresh Grocer, opened its first unit in the Garden State earlier this month, a beautiful new 50,000 square foot store in New Brunswick, NJ, the first new supermarket development in that central New Jersey city in more than two decades. The project took awhile to complete and Pat Burns, Grant McLoughlin and the entire Fresh Grocery team deserve a lot of credit for their perseverance and their continued efforts to open grocery stores in challenging urban areas…Sheetz, one of the best c-store retailers in the country, has named Joe Sheetz as its new president and CEO, replacing Stan Sheetz, who will now become chairman of the $6.3 billion Altoona, PA-based retailer which operates approximately 430 convenience stores in six Mid-Atlantic states. Joe Sheetz was most recently EVP and CFO of the company, having joined the privately-held family owned regional chain shortly after graduating from the Wharton School of Business at the Universityof Pennsylvaniain 1995. “While I am looking forward to serving the company in a new capacity, I am also extremely excited to see Joe takeover leadership as president and chief executive officer,” said Stan Sheetz. “When his father Big Joe Sheetz passed away, Joe added the store development department to his responsibilities in finance, accounting and IT and has been doing a fantastic job! Joe is driven, bright and has the experience we need to help us write the next chapter of our company’s history.”…the Grocery Manufacturers Association (GMA) has named Danny Wegman, CEO of Wegmans Food Markets, and Tim Smucker, chairman of the J.M. Smucker Co., recipients of the 2012 GMA Hall of Achievement Award, the highest honor given by the national manufacturer trade group…and speaking of awards, a tip of the hat to Jeff Brown, owner of 10 ShopRite in the Philadelphia area and partner with Klein family in two other Baltimore area projects, on being named as this year’s winner of the Pete Manos retail executive of the year. Jeff’s not only a premier retailer, his efforts and contributions to creating awareness and solutions to the national “food desert” problem make him one of the most extraordinary people in our industry and a deserving winner…Philabundance, a hunger relief group that Brown is very familiar with, will open its first Fare & Square supermarket in the Chester, PA, a city that hasn’t had a supermarket within its boundaries in more than a decade. The 13,000 square foot unit will be run as a non-profit entity (in fact, Brown’s UpLift Solutions will help with store design and merchandising) and could be the first of several such stores in the Delaware Valley, which has as many food deserts as any region in the country
based on population. And kudos to Brown’s parent organization, Wakefern Food Corp. for another stellar year in continuing challenging market conditions. The Keasbey, NJ cooperative wholesaler posted $13.6 billion in retail sales (for the year ending September 29), an impressive 6.4 gain from 2011. Revenue from wholesale was $10.1 billion. That not only ranked Wakefern as the largest co-operative grocery wholesaler in the country (according to National Cooperative Bank), it jumped one spot to number four among all co-ops nationally (CHS Inc, Dairy Farmer of America and Land O’ Lakes were the respective overall leaders). During the past 12 months, Wakefern opened 10 new ShopRite units and one new PriceRite discount store. Additionally, last month, a new PriceRite store debuted in Syracuse, NY, its first in that Central NY city and in the next few months, two more PriceRites will open in Maryland, where there is currently only one such unit. The new stores will cut ribbons in Baltimore City and District Heights…interesting read of the month: the Ron Burkle feature story that appeared in the October 8 issue of The New Yorker. Burkle is an interesting, complicated and very shrewd dude, and one who, after the reading the piece penned by Connie Bruck, you might not feel that warm and fuzzy about… last month we reported the untimely death of Minute Maid (Coca-Cola) executive BJ Land, and truly one of the nicest guys and most talented executives in the business. For many years, BJ supervised his company’s activities in the Mid-Atlantic and Minute Maid has established a scholarship fund on BJ’s behalf. If you’re interested in making a donation, the address is: 3 Family Fund, c/o Minute Maid, Fred Arnold, 2150 Town Square Place, #400, Sugarland, TX 77479…last month 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 at Saint Joseph’s University. Denise’s speech was not only insightful, she connected with the university’s food marketing students on a real and visceral level. The Genuardi’s banner, which was acquired by Safeway in 2001, will officially become extinct by the end of the year. In the past month, the company’s Jersey shore stores in Barnegat andEggHarbor have been closed to be followed next month by Genuardi units inMarlton,NJ andAudubon,PA. A sad ending for a once great regional chain…much sadder is the damage and destruction caused by Hurricane Sandy late last month. The human and physical toll taken is truly indescribable and it will be years (if ever) before structures can be replaced and those affected can gain a sense of normalcy. As awful and heartbreaking asSandy’s impact was, I’ve got to give props to many, many people who serve the food industry. The help that was provided and still continues from retailers, vendors and distributors was incredible and should never be forgotten. From cash donations in the tens of millions, to providing food, shelter and clothing to many unfortunate victims, the food industry shined its brightest light during the past few weeks. Those retailers and wholesalers who gave notable contributions that, I’m aware of include: Ahold USA’s whopping $2.5 million donation to the American Red Cross; CVS also gave $100,000 to the Red Cross; C&S Wholesale contributed about 100,000 pounds of meals, water, snacks and cleaning products to Feeding America food banks in Connecticut and New York City; Target donated $500,000; Wakefern contributed up to $1 million in funds and in-kind donations; Walgreens charitable offering was $250,00; and Wal-Mart donated up to $1.5 million; Wawa gave $10,000 to the Community Food Bank of New Jersey and also for food banks in Monmouth and Ocean Counties; $100,000 was donated to the American Red Cross from Rite Aid; King Kullen and Bozzuto’s teamed up to donate $100,000 in supermarket gift cards to those in need; and Wegmans provided three truckloads of food worth approximately $200,000. Of course, there was much more donated from other retailers, wholesalers and countless manufacturers that I’m not even specifically aware of. In the end, it was all about reaching out to help others in need. As tragic as this episode was (and will continue to be), it makes me proud to be a member of one of the greatest industries in America.