With Kroger Entering DC, A&P Looking To Sell, Northeast Corridor To Undergo Further Reshaping
We’ve said it many times: the New England to Richmond-Norfolk corridor is the most competitive marketing territory in the country – and it’s about to get even more competitive.
Start with significant overstoring, both in the sheer number of outlets and in the diversity of retailing styles, and you’ve got a potentially volatile landscape where the weak are getting weaker, the big guns have plenty of capital to seek acquisitions even of successful high-quality merchants (like Harris Teeter) that no longer want to continue the battle in what always will be a low margin capital and labor intensive business.
A snapshot of what’s occurred in the past six weeks is a pretty good indicator of how the Mid-Atlantic and entire Northeast landscape continues to change.
The Kroger acquisition of Harris Teeter is significant in many ways. In the long-term, the most important takeaway from this $2.5 billion deal might be Kroger’s red carpet opportunity to enter the Baltimore-Washington market, which Giant/Landover and Safeway have long dominated. While Harris Teeter did much of the hard work entering the market organically and operating fine stores, the resources available to Kroger and its market clout as the largest pure supermarket chain in the country has demonstrated will certainly be the greatest threat the two current market leaders have felt in many years. To illustrate Kroger’s ability to execute at a high level, just watch the job the Cincinnati based chain is doing in Richmond, where it has given Giant/Carlisle (Martin’s) fits ever since that Ahold USA unit acquired Ukrop’s in 2010.
Looking farther north, the cat’s now fully out of the bag for A&P. In what is now a widely circulated memo to its store managers from chairman Gregory Mays, A&P is reviewing its options to fund its future growth (what growth?). While the memo mentions such “strategic alternatives” as raising outside capital and internal refinancing, it also notes that a sale of the company is possible (I’d bet on that option).
It’s been nearly 18 months since Yucaipa Cos. gained control of the once iconic chain after it exited bankruptcy. We were told improvements were coming, cap-ex would be increased and the new project engine was going to be restarted. Along with control of the Tea Company’s real estate, Ron Burkle (founder of Yucaipa) got his labor concessions from the UFCW and a sweetened distribution deal from C&S, but we’re still waiting for improvements that can be seen in a tangible manner.
The stores are still below industry standards, morale by measure is worse than it was two years ago and, as for those new projects, selling and closing stores shouldn’t be viewed as progress. In fact, since Yucaipa took control of A&P in March 2012, the chain’s consumer perception is even worse than it was pre-bankruptcy. So, is there really any option but to sell in what has become a new subset in the grocery business – squeeze out the real estate assets and then dump the stores, something that the private equity community has become proficient at.
And should A&P sell, it will have ramifications for another PE company – Cerberus Capital Management. While some have speculated that Cerberus could even be interested in acquiring A&P (there is a link between Supervalu and New Albertsons executives), it’s doubtful that A&P would want to deal with another PE company (unless there were no strategic buyers interested in the whole chain, which is a possibility). In fact, selling a distressed entity in an overstored, highly competitive region like the metro New York-Delaware Valley corridor might prove difficult (forget the rumors about Kroger being interested), so A&P might have to settle for a series of smaller package sales to existing players (Wakefern and Ahold USA would be the leading acquisition candidates on paper) where store overlaps might be an issue.
And how does that affect Cerberus? We’ve been told by several sources that Cerberus’ financing agreement prohibits the big investment firm from selling key assets at both its New Albertsons and Supervalu units for 18 months. If true, that would certainly give A&P a major head start to pursue a sale. And in an overstored and diverse market, being the last man standing ain’t always such a good thing,
That’s not to say that Cerberus intends to dump certain assets after the reported 18 month window expires. It has held on to its original Albertsons stores since 2006 (with significant stores closings needed to streamline the chain). In fact, a recent meeting with the new management team at Acme Markets (president Jim Perkins and VP-merchandising and marketing Dennis Clark) gave me encouragement that they are earnest in working to achieve improvements. And in the short time they have been at the helm (five months), the stores are being run better, some prices have been reduced and morale is noticeably improved. That’s light years beyond what A&P has accomplished in nearly 18 months of new ownership. Still, Supervalu, when it owned the “Albertsons” chains, let so much water drain out of the pool that Acme (as well as other Cerberus controlled properties in the region – Shoppers, Farm Fresh and Shaw’s) is going to need to hit a lot of home runs in the near future to even get back in the game, which has changed significantly in the past five years.
There are other potential game changers to watch, too. While the announcement that Supervalu independent customer Fresh Grocer is set to become the 50th ShopRite member is big news in itself, the fact that Wakefern has also acquired the Fresh Grocer trademark gives the powerful Keasbey, NJ co-op an alternative banner to deploy for smaller, perishables-oriented stores to both existing and potentially new members.
Beyond that, watch for New York City-based high volume retailer Fairway Market (now a publicly-traded company) to continue its expansion push farther south into the Delaware Valley and Baltimore-Washington; the country’s most profitable and fastest growing retailer, Whole Foods, wants to triple the numbers of stores it operates over the next decade; Fresh Market, also now a “listed” company, is adding stores in the many favorable demographic locations available in the Mid-Atlantic; and Wegmans, with 11 more stores planned in the Northeast, has the ability to “carpet bomb” any competitor when it opens a new store. Oh, and there’s Wal-Mart, which continues to drive sales with SuperCenter conversions, and if it ever gets its act together with its Neighborhood Markets expansion plan, could become an even scarier competitor in the region.
Tighten your seat belts!
Kroger Pays Premium For Harris Teeter Acquisition; But Opportunities Loomed Larger For Ahold
At roughly $11.5 million per store and a very healthy multiple of 7.9 percent times earnings, Kroger certainly paid a premium for one of the best run regional chains in the country. For Harris Teeter, which announced last January that it was “exploring” its options, there was little doubt that the timing was ideal to sell – with its operating performance at a peak and a high-level competitor (Publix) with a similar operating style about to establish a beachhead in its Charlotte backyard.
As it turns out, this is a deal that will be good for both parties. For Kroger, the largest pure play supermarket chain in the country (and the best run in its peer group), it marks the first major acquisition made by the Cincinnati based retailer since its $13 billion deal to acquire Fred Meyer in 1999. While there is some store overlap with Harris Teeter in the Raleigh, NC market, in Nashville and in the Charlottesville and Tidewater areas of Virginia, don’t expect too many FTC store conflict issues.
In addressing the financial analysts following the announcement of the proposed deal, Kroger CFO Mike Schlotman said: “This is one of those opportunities when you take a map and put dots on the map where my stores are and take that map and put dots where their stores are – it’s an amazingly great fit. Just like when we merged with Fred Meyer – that was a unique fit. And when you go back to 1983 when we merged with Dillon Stores, it was the exact same thing. I think this is very consistent with what we said we’d look for over time – a great management team, a customer-centric operating model, well-run stores and a contiguous geography where we can leverage a lot of infrastructure.”
At Harris Teeter, at least for the near term, president Fred Morganthall and executive VP Rod Antolock, the main cogs in a skilled and creative management team, will be staying on and that’s a very good thing. And Kroger’s decision to keep its newest prize as a separate operating entity and keeping the Harris Teeter banner in place is also good business. And while there ultimately will be an integration of synergies (Kroger said it can save $40-50 million over the next three to four years by utilizing the big chain’s scale), Kroger has proven it can maintain banner independence and identity as it has done with Fry’s, King Sooper, Dillons, Fred Meyer and Ralph’s.
It will be several months before this deal closes and there is one interesting (but unlikely) scenario that could still rear its head. As part of the agreement, although Harris Teeter cannot solicit alternative bids, other companies may still come in with offers, Schlotman admitted during a follow-up conference call after the deal was announced early on July 9 (although there would be significant break-up fees that could affect both parties). This could potentially allow other interested parties such as Ahold and private equity companies Cerberus and Bain Capital to potentially enter or re-enter the derby.
Schlotman noted: “We are excited about entering new markets, which include vibrant and growing major urban centers such as Charlotte and Washington, DC, several other metropolitan areas in the Carolinas, and affluent vacation destinations and university communities. Harris Teeter operates in several markets with populations growing faster than the national average. We see a lot of opportunity to learn from one another, and many ways that our combination will benefit each organization. We plan to bring to Harris Teeter the things that Kroger does very well, including our purchasing power, information systems, and loyalty programs with the world-class customer insights firm dunnhumbyUSA. This merger extends Kroger’s footprint into new, growing markets. We also believe the entire Kroger organization will benefit from Harris Teeter’s expertise in operating urban, upscale stores, and gain insights behind their strong customer ratings on people, products and shopping experience. Interestingly, they operate an online ‘click and collect’ system, and we expect to gain insight from Harris Teeter as we continue to study and test this online strategy.”
And Harris Teeter, sensing that there might be some consumer backlash about the deal (put it under the heading of “big corporate chain acquires service-oriented regional grocer”), was proactive in quickly posting a letter from Morganthall about the outcome of Harris Teeter’s strategic options search. In part the online letter said: “While details are still being finalized, we can tell you that our name will remain Harris Teeter; our own brands will continue to reflect our name; Boar’s Head brands will be in our deli and the same high-quality Angus beef will be sold in our meat departments. We do not anticipate any associate changes with this merger, so rest assured you should find your favorite meat cutter, cake decorator or cashier at your Harris Teeter. We will continue to be committed to delivering excellent customer service and outstanding quality. You will continue to find fast check-out lanes and friendly associates when you visit your Harris Teeter store. Kroger is the second largest food retailer in the U.S. with sales approaching $100 billion. By joining them, we will become even more efficient in our ability to deliver outstanding value to our customers. In addition, they will provide growth opportunities for our company and our associates. We appreciate your business and support over the years. Your loyalty is valued more than you will ever know. Rest assured it is the desire of both Kroger and Harris Teeter to only make Harris Teeter better through this merger for many years to come.”
The tentative agreement also poses some interesting scenarios going forward.
Part of Harris Teeter’s successful growth story over the past decade has been its entry in the Baltimore-Washington market where it now operates 35 stores (and has about a half-dozen new projects under development). Kroger, which used to compete in the DC market (it exited in the early 1960s) would welcome a challenge against market leader Giant/Landover (Ahold USA). Since 2010 when another Ahold USA unit (Giant/Carlisle-Martin’s) acquired 25 Ukrop’s stores in Richmond, Kroger has handled that competitive threat very effectively.
And then there’s the union vs. non-union issue. Kroger’s stores nationally are overwhelmingly unionized (including all stores in the areas where Harris Teeter operates). Harris Teeter is a non-union company. When asked about that structural difference, Schlotman explained: “They (Harris Teeter) have done a great job of exciting their associates every day when they come to work with the package of benefits and pay that they enjoy. And we will certainly take their (Harris Teeter’s management team) guidance on how to maintain that excitement of their associates coming to work the way they always have.”
And that brings me back to my original prediction that this deal was Ahold’s to lose. Even though I lost my bet, I still believe Ahold would have had more to gain in acquiring Harris Teeter than Kroger did. For years, we’ve heard Ahold say they were looking for the “right” opportunity. With about $6 billion in cash to funds acquisitions, it would have seemed that Harris Teeter would be the ideal target – a contiguous market fit, the type of customers that Ahold desires and a non-union operation to boot to boot.
We’ve heard from several sources that, at nearly $50 a share, the deal was too pricey for Ahold (I’m not buying that because Ahold has the capital at its disposal and everybody knew that Harris Teeter would fetch a premium) We’ve also heard that Ahold believed the FTC might rule that the approximately 35 Maryland, Northern Virginia and DC stores that Harris Teeter operates would constitute a total market overlap and that the HT properties would have to be sold. And we’ve also been told that Ahold was concerned about the role that the UFCW would play in the entire potential scenario (Giant/Landover is organized, but Martin’s stores in Virginia are not). The latter two points are salient, but not strong enough, in my opinion, to have justified Ahold not pursuing a rare opportunity to expand its reach. And beyond the missed opportunity to add about 160 well run net new stores to its portfolio (if you factored in store overlap eliminations), Ahold now faces very strong competition from a rival that will be more challenging in the long-term than Harris Teeter, and one that is already winning the battle against Martin’s 90 miles down the road in Richmond.
However, give Kroger its due. The “fit” is great one for the big chain, and in the end, they wanted it more and were willing to pay the price to acquire a stellar merchant with the store network and a customer image to help Kroger expand into several new markets.
SVU Earnings Up, But Negative Sales Trend Continues; Miller Leads Fastest Annual Meeting In Recent Memory
If you weren’t already aware of Supervalu chairman Bob Miller’s no-nonsense approach to business, a microcosm of it could be witnessed at the company’s annual shareholder’s meeting which was held at the Sheraton Hotel in Times Square on July 16. The meeting began at 11:30 a.m. and, according to several sources, the confab ended 11 minutes later. Miller reportedly discussed some business issues, but gave no speech at the sparsely attended event about the company’s future plans or initiatives.
The bigger news came two days later when Supervalu announced its 2014 first quarter financials, the first full period under the new management regime led by Miller and CEO Sam Duncan.
And although the company earned $85 million on sales of $5.16 billion (up from $41 million in the same period last year), other key metrics continued their negative trends.
For the record, here’s a closer view of the numbers with the requisite positive spin from chief executive Duncan.
Net loss from continuing operations for the first quarter of fiscal 2014 was $105 million, or $0.43 per diluted share, and included $139 million in after-tax charges, or $0.57 per diluted share, primarily related to current and previous financing activities, employee severance, and asset impairments. When adjusted for these charges, first quarter fiscal 2014 net earnings from continuing operations was $34 million, or $0.14 per diluted share.
Net income from discontinued operations in the first quarter, which totaled $190 million or $0.77 per diluted share, included the benefits from the finalization of tax related matters and a favorable adjustment to the previously recorded loss on sale of five retail grocery banners in the first quarter. In the first quarter of fiscal 2013, the net loss from continuing operations was $18 million, or $0.08 per diluted share.
“Our first quarter was highlighted by a renewed focus on driving sales and cash in all segments of our business and I’m pleased with the progress we made, especially the sequential improvement in sales trends from the fourth quarter of fiscal 2013 in each of our business segments,” said Duncan. “We have a good foundation, strong leadership team, improved debt maturity profile, and achievable goals across each operating segment.”
“In the ‘Independent Business’ (segment), we reduced the rate of sales decline from the fourth quarter in spite of lower military sales. Our first national retail advisory group meeting was very successful and we continue to talk with potential new customers,” added Duncan.
“Save-A-Lot also showed improved ID sales trends across its store network and within its corporate stores while lowering the inside margin,” Duncan continued. “Save-A-Lot has made great strides on bettering its perishable offering and its overall in-store merchandising.”
Duncan concluded with, “Finally, our ‘Retail Food’ banners posted a 110 basis point improvement in ID sales trends over last quarter. We have completed the transition to the decentralized operating model and are focused on driving store execution and standards.”
First quarter net sales were $5.16 billion compared to $5.24 billion last year, a decline of 1.5 percent. The decrease in net sales primarily reflects a decline in identical store sales of negative 3.0 percent for ‘Retail Food” and negative 1.9 percent for Save-A-Lot. Identical store sales for corporately operated stores within the Save-A-Lot network were negative 1.2 percent.
Gross profit margin for the first quarter was $712 million, or 13.8 percent of net sales, compared to $707 million, or 13.5 percent of net sales last year. The increase in gross margin as a percent of net sales reflects lower infrastructure costs in the current year as a result of cost reduction initiatives partially offset by investment in price.
First quarter “Independent Business” net sales were $2.46 billion compared to $2.48 billion last year, a decrease of 0.6 percent.
“Independent Business” operating earnings in the first quarter were $55 million, or 2.3 percent of net sales, and included $14 million in pre-tax costs and charges primarily related to employee severance. Excluding these costs and charges, Independent Business operating earnings in the first quarter were $69 million, or 2.8 percent of net sales. Independent Business operating earnings in the first quarter of fiscal 2013 were $68 million, or 2.7 percent of net sales.
First quarter Save-A-Lot net sales were $1.27 billion compared to $1.29 billion last year, a decrease of 1.6 percent, reflecting the impact from network identical store sales of negative 1.9 percent. Identical store sales for corporately operated stores within the Save-A-Lot network were negative 1.2 percent.
Save-A-Lot operating earnings in the first quarter were $52 million, or 4.1 percent of net sales, and included $5 million in pre-tax asset impairment charges and employee severance costs. Excluding these charges and costs, Save-A-Lot operating earnings were $57 million, or 4.5 percent of net sales, compared to $59 million, or 4.5 percent of net sales last year. Save-A-Lot operating earnings reflect incremental price investment during the quarter offset by cost reduction initiatives.
At SVU’s “Retail Food” segment, net sales were $1.43 billion compared to $1.47 billion last year, a decline of 2.9 percent, primarily reflecting identical store sales of negative 3.0 percent. Identical store sales were driven by competitive pressures and the impact of incremental price investments, the company said.
“Retail Food” operating earnings were $25 million, or 1.7 percent of net sales, and included $18 million in pre-tax employee severance costs, vendor contract breakage costs, and asset impairment charges. Excluding these costs and charges, “Retail Food” operating earnings were $43 million, or 3.0 percent of net sales. Last year’s “Retail Food” operating earnings were $9 million, or 0.6 percent of net sales. The improvement in “Retail Food” operating earnings was driven by the benefit from the company’s cost cutting initiatives and lower depreciation expense.
Supervalu’s overall first quarter net sales were $5.16 billion compared to $5.24 billion last year, a decline of 1.5 percent. The decrease in net sales primarily reflects a decline in identical store sales of negative 3.0 percent for “Retail Food” and negative 1.9 percent for Save-A-Lot. Identical store sales for corporately operated stores within the Save-A-Lot network were negative 1.2 percent.
In related news, the beleaguered firm also announced that its last two director’s slots have been filled. In addition to CEO Duncan, Supervalu has elected Eric G. Johnson, president and chief executive officer of Baldwin Richardson Foods Company.
“I am very pleased that Eric has joined the Supervalu board of directors,” said Miller. “He will bring a unique perspective to the group as both an entrepreneur and as a major producer of products and ingredients to the food industry.”
“I am also happy to announce that Eric’s appointment brings to a completion our director search and allows Sam to become an active participant on our board going forward,” the non-executive chairman concluded. Johnson is president and chief executive officer of Baldwin Richardson Foods Company, one of the largest African-American owned businesses in the food industry..
The Supervalu board now consists of 11 members.
It’s still early in the game and clearly Duncan and Miller need more time to change the view. However, even at this early date with most of the administrative and infrastructure tightening, the proof is in improving sales at its retail banners and maintain its independent retailer base, which will be no easy task going forward.
‘Round The Trade
I was sorry to see Bob Bly exit Shoppers Food & Pharmacy after less than a year as president. Bob was a high energy, “glass half-full” person who recognized the challenges facing him when he took the job last August. He spent a lot of time in the stores and Shoppers indeed has lowered prices, attempting to regain the mojo it had when it was perceived as the leading discount food retailer in the B-W market. Obviously, Supervalu drained that bottle years ago, and getting the “toothpaste back in the tube” is an almost impossible job for anyone given Shoppers’ erosion and the overall current economic and competitive climate. If you were to judge numbers alone, it’s true Shoppers’ sales still need significant improvement, but that could be said of any of the banners that Supervalu ruined over the past seven years. Perhaps because he was one of the few non-Albertsons/Bob Miller division presidents running a Supervalu or New Albertsons retail banner, the fit wasn’t a good one, but Bob Bly will prove to be a valuable asset to somebody in the near future. In the meantime we wish both Bob Gleeson (merchandising) and Micky Nye (operations) the best of luck in their interim roles as co-presidents while Supervalu searches for a replacement for Bly…we’ve heard from several sources that Aldi is eying the Richmond market for future expansion. It’s first Richmond store is slated to open in the latter half of 2014 and the privately-held international retailer is reportedly seeking more sites in the Old Dominion’s capital city. While there’s been a lot of new store expansion in recent years in Richmond, most of that growth has come from upscale retailers (Whole Foods, Fresh Market, Trader Joe’s, Kroger’s new Marketplace prototypes), leaving a hole in “middle to lower” economic strata which Aldi obviously has identified…Canadian drug chain Jean Coutu Group has filed to sell its 65.4 million shares (at a value of $180 million) in Rite Aid. The Quebec firm initially acquired those shares when Rite Aid purchased the company’s Eckerd and Brooks drug chains in 2007….some quarterly financials to report: at Weis Markets the good news is that the Sunbury, PA chain produced a 4.2 percent increase in its second quarter net income compared to the same period in 2012 and that its earnings per share increased $.04 to $.90 during the quarter. During the 13 week period ending June 29, 2013, the company generated $24.2 million in net income compared to $23.2 million in 2012 while operating income increased 6.5 percent to $37.6 million. The not so good news: Weis’ second quarter sales declined 2.2 percent to $662.1 million, compared to $677.1 million in 2012. Second quarter comparable store sales were down 4.8 percent.”We attribute our net income and operating income increases to increased store level productivity and improved distribution efficiencies which helped us maintain our in-stock position and the overall quality of our fresh departments,” said Weis Markets’ president and CEO David Hepfinger. “While our market share remains stable, our sales were impacted by the continuing trend of cautious consumer spending and a challenging comparison to the same period in 2012 when we opened three new stores and were aggressively promoting a new replacement unit. As a result, we fell short of our sales goals. We are encouraged by some recent sales trends and expect to improve our sales results in the coming quarters.”…at Harris Teeter, which will keep operating as usual until it receives FTC clearance to be officially acquired by Kroger, the numbers remain very good. While the regional chain said the timing of both the Easter and July 4th holidays impacted sales for the third quarter, earnings nearly doubled. The Matthews, NC-based retailer reported net income for the quarter ending July 2 of $31.1 million, vs. $15.8 million in the year-ago period. Operating results for the year-ago period included approximately $22.3 million of impairment losses and other costs associated with the Lowe’s Food Stores acquisition and sale a year ago, and gains of $3.1 million recognized from life insurance proceeds. Sales for the third quarter were up 2.9 percent to $1.19 billion, and comparable-store sales rose 1.29 percent (a very good number considering the current sales and competitive environment. The company said the shift of Easter holiday sales into the second quarter of 2012 and of July 4 holiday sales into the fourth quarter of this year had a negative impact on comps of 70 basis points. During the first nine months of fiscal 2013, Harris Teeter opened five new stores, two of which were the stores acquired from Lowe’s that were re-opened under a new format and banner – “201central” – and one of which replaced a store previously closed…some national news of note: Spartan Stores is acquiring Nash Finch in a deal involving two large Midwestern wholesale grocers. The $1.3 billion stock transaction shouldn’t surprise many, with Minneapolis-based Nash Finch struggling in recent years and the entire wholesale segment being challenged by a myriad of issues ranging from the declining number of independent retailers to the challenging overall competitive and diverse landscape their customers and corporately-owned stores face. The deal, which is expected to be completed by the end of the year, will see Spartan CEO Dennis Eidson remain as chief executive while Alec Covington, well-known to many in this region from his days at Richfood (and one of the smartest and nicest people in our business), will move on to other projects in what I’m guessing will be warmer climes…at Demoulas it’s a shame to report that there have recently been some more intra-family skirmishes to report. The Tewksbury, MA-based retailer which trades as Market Basket is one of the best-run regional chains in the country but as many of our readers know, family battles are often bitter and long lasting. CEO Arthur T. Demoulas fought off a board challenge led by his cousin Arthur S. Demoulas and will continue to oversee day-to-day operations at the high volume retailer. This is a battle that’s raged for decades between sons of founders Mike and George Demoulas with Arthur S. Demoulas losing a contentious legal battle several years ago. From a business perspective, it’s a ridiculous argument waged by the Arthur S. Demoulas camp primarily because, since he became CEO five years ago, Arthur T. Demoulas has increased sales by more than 50 percent and added 12 new stores including the family-owned chain’s new 120,000 square foot prototypes. Not only is Demoulas one of the most admired supermarket operators in the country, its $4 billion in annual sales with only 72 stores is a testament to its leadership…there are several obits to report this month including the sudden passing of Rick Sciulla at age 58. Rick was director of seafood for Weis Markets and a person I have known for many years dating back to his career at Ahold, USA. An extremely hard worker with a great personality, Rick will be missed. Also passing on was JJ Cale, one of the most unsung, yet influential rock and roll guitarists and songwriters of the past generation. Cale, 74, rarely toured and issued only about a dozen albums in a career that dates back more than 40 years, yet is one of those unusual figures who gained more respect from his industry peers than from the public. His best known songs were “After Midnight,” “Cocaine,” (both made famous by Eric Clapton) and “Call Me the Breeze,” (a big hit for Lynyrd Skynyrd). Neil Young, certainly one of the most iconic figures in rock history, stated in his biography “Shakey” that Cale and Jimi Hendrix were the best guitar players he ever heard. I was sorry to hear of the death of Dennis Farina, 69, the one-time Chicago cop who became one of the leading character actors of the past 25 years. Among his many memorable roles my favorite is his portrayal of Ray “Bones” Barboni, a bumbling, profane and hilarious Miami mobster in the great underappreciated movie “Get Shorty” (1995). And finally, passing away at age 97
was Page Morton Black. Many of you may not know who Page Morton Black is, but for the record she was the wife of Bill Black, the late CEO of Chock Full o’ Nuts coffee. The former professional entertainer is best known for singing the Chock Full o’ Nuts theme song (“Chock Full o’ Nuts is that Heavenly Coffee…”). Beyond that, my memory of Page Black was an unannounced visit to her estate in the Premium Point section of New Rochelle, NY made by my now retired partner, Dick Bestany, retired food broker David Finkelstein and myself. Finkelstein’s business partner, John Kluge, owned the estate adjacent to Page Black’s manse and, on a hot August night after a full day of fortification, the three off us decided to randomly pop in on Page who was a friend of Finkelstein’s. I’ll have to tell you the rest of the story in person, because what ensued proved to be one of the most unforgettable experiences of my life.
