Taking Stock

Will A New Amazon Fresh Depot Join Conventional Amazon Facility In Baltimore? 

The one million square foot Amazon warehouse that is now under construction in southeast Baltimore will apparently be joined by a new baby brother. Multiple sources have told us that Amazon plans on building a new 346,000 square foot “fresh” depot next to its general use facility which will also house dry groceries along with many other products.

That Amazon has chosen Baltimore to conceivably expand its perishables business isn’t that surprising, for several reasons. The Seattle based online juggernaut is making a huge push to open distribution centers in more than a dozen markets nationally to achieve its objective of one day service on the hundreds of thousands of items it now ships And while the “fresh” business is a more complex distribution and logistics challenge, Amazon seems determined to accelerate the pace of linking its general business with the ability to supply fresh food items in key metropolitan markets.

Amazon Fresh currently operates in Seattle, Los Angeles and San Francisco and is currently revamping a 564,000 square foot former Pathmark warehouse in Avenel, NJ which is scheduled to open later this year. That perishables facility would be able to serve Metro New York and Philadelphia consumers with perishable items and would complement another new dry grocery depot – a one million square foot facility that should open in the next three months in Robbinsville, NJ, about 40 miles south of Avenel.

And, as reported by us earlier, the Mid-Atlantic expansion comprises only a fraction of Amazon’s distribution center network expansion plans.

In September 2013, the explosive online merchant announced that it would hire 7,000 workers, with 5,000 of those positions at new distribution centers (marking a 25 percent increase in current staffing levels) slated to be built over the next 24 months. Most jobs offer pay and benefits far above typical retail wages, the company said. Additionally, Amazon will add about 2,000 service positions at new and existing customer service locations.

The 5,000 fulfillment center jobs would represent a 25 percent increase in current staffing in that department. Amazon has been increasing its network of fulfillment centers and warehouses in order to offer quicker shipping to more of its customers. Many Amazon customers now have the option of next-day delivery and the company is looking to offer same-day delivery on many more items, especially when this infrastructure expansion is completed in the next three years.

Analysts see Amazon’s expansion as an effort to more effectively compete (and gain market share) against other bricks and mortar and online merchants such as Wal-Mart (the world’s largest retailer) and eBay.

In the Mid-Atlantic alone, Amazon listed that fulfillment center jobs are available at current distribution centers in Breinigsville, PA (Lehigh Valley), Huntington, WV, Middletown, DE and Chester, VA, the latter two being depots that opened in the past 18 months.

Nationally, jobs are being added at new distribution centers in: Chattanooga and Murfreesboro, TN; Charleston and Spartanburg, SC; Patterson, San Bernadino and Tracy, CA; Coppell, Haslet and San Antonio, TX; Hebron, KY; Indianapolis and Jeffersonville, IN; and Phoenix, AZ. The customer service jobs are in Grand Forks, ND, Kennewick, WA, Huntington, WV and Winchester, KY.

In the Mid-Atlantic region, in addition to new depots opened in the past 18 months in Middletown, DE and Chester, VA, Amazon has also opened a new warehouse in Petersburg, VA.

The e-commerce giant is also nearing sainthood with Wall Street. Despite continued lower than expected earnings, the brainchild of CEO Jeff Bezos seemingly gets a pass from the financial community, which believes that Bezos’ long-term focus on revenue growth and innovation will ultimately yield higher profits. Their faith may be rewarded.

For example, in its recently completed fourth quarter ended December 31, Amazon posted earnings that had increased to $239 million, resulting in earnings of 51 cents per share. While that number was an improvement over 2012’s profit, it fell short of analysts’ projections, which called for earnings of 66 cents per share.

After the earnings release, Amazon’s shares took a quick plunge from approximately $403 per share to $346 per share. But don’t feel bad for the company’s shareholders. At presstime on February 28, Amazon’s shares had rebounded to $360 per share and the upward spike is continuing. And on a one year basis, Amazon’s stock is up about $115 per share.

Unlike virtually any other publicly-traded firm, a combination of Bezos’ god-like presence and leadership and continued impressive revenue gains (Amazon’s sales grew 20 percent in its fourth quarter to $25.6 billion and the company enjoyed its best holiday shopping season ever) have led to a phenomenon not often seen in American history. Of Bezos’ peers, Microsoft’s Bill Gates and the late, great Steve Jobs would be the only worthy comparisons.

And talk of secret research teams, innovation labs and even delivery drones only seem to heighten Amazon’s mojo. In fact, since Bezos’ interview on “60 Minutes” on December 1 in which he unveiled his “drone initiative,” Amazon’s magical, mystical status has seemingly soared beyond the stratosphere.

From a grocery industry perspective, the buzz factor has also increased. In the past six months, virtually every trade event that I’ve attended has included a speaker or industry panel that mentions Amazon as the new 800 pound gorilla (apparently Wal-Mart’s weight is down to 750 pounds).

There’s nary a mention of FreshDirect’s expansion effort into the DelawareValley or Peapod’s new 300,000 square foot automated distribution center due to open this summer in Jersey City, NJ.

At the recent NGA convention in Las Vegas, Wakefern president Joe Sheridan summed it up best, in my opinion. He termed Amazon’s growing presence as a potential “disturber.” Not a “disrupter” of current bricks and mortar businesses, but certainly enough of a factor for all competitors to be aware and concerned.

As a rapidly growing entity with tentacles that stretch globally, Amazon is already a disrupter and a threat to many other businesses as it grows, innovates and connects with all ages and economic strata.

But unless you’re Peapod, FreshDirect or several other smaller online merchants that compete on a head-to-head basis, Amazon’s aggressive growth effort into the grocery business, will likely create more disruption than displacement.

Of course, supermarket retailers by nature are a hardy and resilient bunch, which will work in their favor. In the past decade, they’ve been “carpet-bombed” by the likes of Wegmans, Wal-Mart and Costco and endured many “paper cuts” from dollar stores, drug chains and c-stores.

As impressive as the total Amazon story is, I don’t think its impact on the traditional grocery business will ever yield more than a three percent market share in even its best trading areas.

For an Increasing Number Of Supermarket Execs, 50 Is the New 65 When It Comes to ‘Retirement’ 

In my next life, I want to return as a personnel executive. Make that a human resources professional. If I can’t achieve that, perhaps I can become a chief financial officer. The sheer joy of being able to utter the words “traction,” “incent,” or “attrit.” Of course, I could be an attorney who would have final say over the language of any corporate announcement or financially-oriented speech. As a company’s general counsel I would be

the ultimate arbiter of “nothing speak.” I take that thought back – I could never be a lawyer.

Don’t insult me by telling me to navigate your “blue ocean,” or question my “core competency.” Please don’t ask me to focus on my “swim lane” because I don’t think that’s a “scalable” approach to success. From now on, I will not refer to A&P’s status as beleaguered or troubled; The Tea Company is really on the “bleeding edge” and clearly this is a chain that hasn’t absorbed its “learnings” effectively.

Modern business jargon may be silly and stupid, but at least I can translate the nothing-speak. It took the simple minds of seemingly thousands of HR executives to employ the word “retirement” in a manner that not many are familiar with.

“Johnny turned 65 today and after 40 years with the company he is retiring. We wish him all the best in his future endeavors,” Johnny’s boss might have said. Or, “We’d like to present Jimmy with this beautiful gold watch commemorating his 38 years of service to our company. May you have a long and enjoyable retirement,” was typically how a retirement ceremony used to be conducted.

Oh, how things have changed. Currently, the new “retirement” apparently doesn’t happen when you’re 65, and rarely is a gold watch associated with the process. In fact, if you thought that the word retirement implied some type of voluntary action, think again.

To wit, some recent examples: Rick Herring, president of Ahold USA’s Giant/Carlisle division and Herb Ruetsch, chief executive of fast-growing Fairway Market. Both men are in their early 50s and by my best guess, neither of them had assembled a long list of “honey dos” in preparing for futures that would also probably include fishing trips, golf vacations and an annual pilgrimage to Washington to visit AARP’s headquarters.

Additionally, late last year, Pierre-Olivier Beckers, chief executive of Brussels-based The Delhaize Group (Food Lion, Hannaford), “retired” at the ripe old age of 50. Word on the street had it that Beckers wants to spend more time venturing on the “Pirates of the Caribbean” ride at Disneyland Paris. By “retiring” so young, none of these men will qualify for the early-bird seniors discount at Old Country Buffet, either.

While I can’t tell you the full story, I can make a fair to middling guess as to why Herring and Ruetsch recently joined the ranks of the Golden Agers. In the case of Rick Herring, he has a new boss, and he’s nothing like the old boss. The “old boss” was Carl Schlicker, former COO of Ahold USA, who like Herring had strong roots in the Giant/Carlisle organization which for years resembled the “little engine that could” among the three AUSA banners. For the past four years, Herring, whose background is not in operations or merchandising (he’s a finance guy who formerly headed Ahold Financial Services), headed the profitable and growing division that oversaw Giant (Carlisle) and Martin’s stores in Pennsylvania, Maryland, Virginia and West Virginia. Beyond performance, Rick Herring was greatly admired by the company’s associates and its vendors. A gentleman and a class act all the way. But times are a changin’ rapidly in this business.

Schlicker retired last February at the age of 62 and was replaced by James McCann, a Brit who has been with Ahold in Europe since 2011 and also did tours with some of Europe’s other leading food retailers – Tesco, Carrefour and J. Sainsbury. Clearly the culture began changing at Giant/Carlisle and AUSA’s three other divisions after the corporate consolidation of 2009. While Carlisle remained the company’s primary base of operations, the folksy, entrepreneurial feel of the organization began to erode. And since McCann took the helm a year ago, most of the original ambience and flavor of Giant/Carlisle (Schlicker often termed the associates in the division as being “simple country grocers”) has dissipated. This is by design. McCann is a no-nonsense, hard-charging, tireless, results-driven executive. It’s clear that changing the culture is a priority. Of course, when changes occur they usually begin at the senior management level. Anthony Hucker, former president of the Giant/Landover unit, left in September (he is now executive VP-COO of Schnuck’s in St. Louis) and Paula Price resigned as executive VP-CFO of Ahold USA in December. I’m fairly certain there’ll be other leadership changes, too.

There’s clearly nothing wrong with McCann’s desire for a more disciplined and regimented team. Ahold corporately is also becoming more streamlined, as witnessed by the recent revampment of Ahold Europe (which technically no longer exists as a unit). It’s obvious that’s how chief executive Dick Boer wants it and it’s a style that both Boer and McCann seem comfortable with, despite increasing agita from the associates in the U.S.

But matey, it’s all about the results. For the first time in many moons, Ahold USA posted declining earnings and lost market share in its recently completed fourth quarter. Its overall sales decreased and ID revenue also flashed red numbers. That’s a financial combination that I’ve never witnessed in my 36 years of covering Ahold or its banners. And in Europe the numbers are arguably worse, with competitors carving out market share from Albert Heijn’s huge base in The Netherlands and its other brick and mortar entities in other parts of Europe also struggling. McCann and Boer can argue that outside factors such as the economy, new and diverse competition, the government sequester or Hurricane Sandy were all contributing factors to the company’s struggles and they wouldn’t be wrong. However, the truth is that Ahold and its banners have become vanilla in the way they go to market. Everything from pizzazz at store level (remember “sell more stuff?”) to the perception of its everyday pricing to the differentiation of its banners isn’t as sharp as it once was.

McCann is keenly aware of this (his intelligence quotient is at an extremely high level) and perhaps believes that radical culture surgery is the only way to turn to get the ship moving forward at full speed again.

However, unlike most other retailers we’ve written about that are in change mode, Ahold is not in trouble. At least not yet. The company remains the largest supermarket chain in the Northeast. It’s got the finest or among the best locations in most of the large metropolitan areas in which it operates (Boston, Providence, Hartford, Metro NY, Philadelphia, Central and Northeast PA and Baltimore-Washington) and a number one or two market share in all those areas to boot. And in areas such as consumer research, technology and digital marketing, Ahold remains an industry leader.

McCann’s awareness of the big picture is certainly an asset. And one or two quarters of flat or declining sales can partially be attributed to the re-culturization and the implementation of new programs (along with the above mentioned outside factors). But nobody in business today has a long leash and without better results both McCann and Boer know they are also vulnerable and could become candidates to “retire.”

And speaking of “retirement,” how about Herb Ruetsch’s seemingly sudden sayonara vacation cruise from Fairway? Reutsch, who had been with Fairway since 1998 and was named CEO two years ago, was reportedly offered a great “retirement” package to get out of Dodge as quickly as possible (he will remain a “special advisor.” Then again, isn’t “retirement” alone something special?) His departure might be linked to Fairway’s recent financial statement. In its third quarter ended December 29, the now publicly-traded supermarket “like no other” lost $31 million and saw ID sales dip 1.7 percent. Its stock price also plunged significantly (on February 13 shares were trading at $7.34, an all-time low since its April 2012 IPO launch. Fairway’s share reached $28.87 last July).

Current president Bill Sanford will become interim chief executive, and executive chairman Charles Santoro will remain in his post (both Santoro and Sanford are connected to Sterling Investment Partners, the private equity firm that gained control of Fairway in 2007 and helped engineer the plan to go public).

The Manhattan-based retailer also noted that it plans to cut $3-4 million in annual overhead as a means to bring the company to profitability (it has lost money each of the three quarters it has reported earnings) and is searching for a permanent CEO.

So, here’s the big issue with Fairway. As merchants they are wonderful. Fairway’s stores are unique in the way they are merchandised, in the products they offer (particularly fresh) and in their ability to really create a positive and differentiated shopping experience.

However, in the early going (and it’s still very early) there are too many moving parts, and as merchants among its senior leadership team, only co-president Kevin McDonnell has the hands-on industry experience required for such a special brand of retailing (Ruetsch, too, has a supermarket background, having worked for Grand Union for about 16 years).

That’s not meant as a knock against Santoro or Sanford, clearly two very bright men who have been instrumental in developing a strategic plan for Fairway. But that plan may also have flaws.

The company’s stores in Manhattan and Brooklyn are killers. With high volume units in a densely populated area and an extremely loyal customer base, Fairway is best in class at most of its locations. But its newest store in Chelsea isn’t hitting it as far as its other urban supermarkets and its two newest stores planned for Manhattan – in the Hudson Yards and in Tribeca – are costly start-up projects. Whole Foods and Trader Joe’s are expanding, too, and pose a real threat to Fairway’s dominance.

Furthermore, Fairway’s expansion efforts outside the five boroughs have brought mixed results. Certainly, the stores are doing enough volume to eventually become profitable. But most of those stores aren’t going to generate the same level of sales when compared to their sister city stores. And it’s clear that the savvy “foodie” mentality that successfully connects with Fairway’s shoppers in Red Hook or on Broadway isn’t as strong in the suburbs.

Prior to the IPO last spring, Fairway executives envisioned a plan which could find stores stretching from Boston to DC – as many as 90 stores in all, including up to 40 in the Metro NY area. Forty stores in the New York metropolitan area – perhaps that’s possible. Beyond that 50 mile radius, as good as the Fairway shopping experience can be, I just can’t see it working in the Boston, Philly and Baltimore-Washington areas where there are far fewer “foodies” and many more “shoppers” who won’t be able to appreciate Fairway’s unique offering. And that’s assuming the regional chain can improve its infrastructure and execution levels and ultimately its bottom line.

In the long-term, maybe it’s best for the psyches of Messrs. Herring and Reutsch that they won’t be around to witness the radical changes that lie ahead at their former organizations. They’ve paid their dues and earned the respect of many in the trade. They’ve both had stellar careers.

But couldn’t they have just resigned or been fired? At their ages and with their job skills, I’m betting it won’t be long before each of them makes a remarkable comeback from “retirement.”

 ‘Round The Trade 

Jonathan Weis has shed the “interim” title and now will become permanent CEO and president of Weis Markets. He retains the vice chairman title. Jonathan has done an excellent job over the past five months in leading the Sunbury, PA regional chain after the abrupt departure of former chief executive Dave Hepfinger. He along with executive VP Kurt Schertle have restored much of the flagging morale at the regional chain and it appears that sales once again are headed in the right direction (Weis’ financial statement is due out in early this month)…a very tough fourth quarter for Wal-Mart as the Bentonville Behemoth’s U.S. numbers took their biggest dive in several years. Comp store revenues for the period ended January 31 fell 0.4 percent, marking the fourth consecutive quarter that same store sales have declined and earnings dipped 21 percent during Wal-Mart’s critical holiday period. Traffic counts also decreased by1.7 percent. Bill Simon, CEO of Wal-Mart’s U.S. stores, said cuts to the federal Supplemental Nutrition Assistance Program (SNAP), adversely impacted the big retailer’s results. An exceptionally ferocious winter with multiple storms also cut into earnings, Simon noted, and detracted from a positive performance during the six-week holiday shopping period. He added the storms weren’t an excuse, but merely an explanation. Simon also affirmed that Wal-Mart’s plan to aggressively open new smaller format units (Neighborhood Market, Express) is on track and in 2014 about 270-300 units will open. “Customers’ needs and expectations are changing,” Simon asserted, “and they want to shop when they want and how they want, and we are transforming our business to meet their expectations.” However, at the end of the day, the Behemoth’s SuperCenters remain the stalwart engine for the company and 115 new combo units are slated to open this year. And while the boys from Bentonville may be going through a rough patch, let me remind you that Wal-Mart finished the past 52 weeks with a staggering $473.1 billion in annual sales, earned $16.1 billion and plans to spend $12.4-$13.4 billion this fiscal year (2015) in cap-ex…kudos to CVS for announcing that it will stop selling cigarettes and other tobacco products at its 7,600 stores by October 1. Beyond even the toxic health risks associated with tobacco, the fact is that retailers whose business is related to health and wellness should not be in the business of selling one of the least healthy products that’s legally available today. Walgreens and Rite Aid are continuing to assess the situation. There doesn’t seem to be more assessing that needs to be done: do the right thing and follow CVS’ lead…just returned from the National Grocers Association (NGA) convention and once again this year the vibe was very good. The annual Las Vegas event continues to offer good speakers and effective workshops while providing independent retailers (and regional chains) with a lot of one-on-one interactivity without losing its “homey” ambience. This year’s show attracted a record number of attendees (3,100) and also broke its record of exhibitors (nearly 400) who displayed their wares at the show. A tip to NGA president Peter Larkin for once again creating an excellent forum for independents. And a special tip of the hat to Wakefern president Joe Sheridan who in his two years as an NGA officer (he is currently outgoing chairman) has done an excellent job of bringing passion, leadership and vision to the trade group. Sheridan also did an excellent job at the show’s opening ceremonies, noting that independent retailers are well poised to handle issues such as competition and digital challenges because of how close they remain to their businesses. He termed the entire e-commerce initiative as a disruption and that bricks-and-mortar retailers will still be relevant, but added that 2014 will be a “grinding” year with more competitive diversity and the reduction of SNAP benefits affecting virtually all markets. Another excellent speech was delivered by John Phillips, senior VP-customer supply chain and global go-to-market for PepsiCo. Phillips, a dynamic personality and terrific speaker, urged independent retailers to embrace the customer experience and make it personal, “because you know more about your customers than the chains.” He then offered up a bevy of new programs and websites designed to gauge and analyze consumer data. As an aging boomer, Phillips provided the most comprehensible connection between digital “theory” and real world application that I’ve ever heard. However, not so dynamic was Bob Woodward, the noted journalist and author, who may be the public’s best link to the last eight U.S. presidents. There’s no question that Woodward is a fount of knowledge and a curator of recent American history. But as a speaker, he’s mediocre at best. His delivery is painfully slow and staggered and it appeared he didn’t do much preparation for his speech, instead relying on references from his books along with a few anecdotal tales from his political crypt. Also at the NGA show, two Mid-Atlantic retailers – K-VA-T (FoodCity) and B. Green & Co. – were awarded “best in show” honors for marketing and merchandising respectively. Abingdon, VA-based FoodCity’s marketing campaign, “Salute,” was selected for an original 60-second commercial honoring members of the armed forces and was aired on Fourth of July, Labor Day and Veterans Day. Baltimore based B. Green was chosen for its “Food Depot and Eat Right, Live Well” effort which encouraged low income consumers to select healthier items when they shop. Also receiving a prestigious national honor was Klein’s ShopRite of Maryland, which was named by FMI as one of six winners of its 2013 Community Outreach awards. The family owned independent, based in Forest Hill, MD (HarfordCounty), was chosen in the “Neighborhood Health Improvement” category for developing a partnership with BaltimoreCity and other non-profit groups to voluntarily surrender guns. Those who complied received a $100 ShopRite gift card. Good work by all three retailers… I recently visited the newest Mrs. Green’s unit (part of the Natural Markets Food Group (NMFG and no affiliation with B. Green) run by former Giant/Landover president Robin Michel, which opened in the Fair Lakes section of Fairfax, VA last month (the first Mrs. Green’s in the Baltimore-Washington. market). While the natural/organics store was all right, there was nothing special about it, except that it wasn’t very busy (my colleague who was with me at the time called the store “a poor man’s Whole Foods” – which, incidentally has a high-volume beautiful store less than a mile away also in the Fair Lakes section of Fairfax, which store was booming when I visited). Additionally, there’s a Wegmans doing about $1.7 million per week located less than three miles from the Mrs. Green’s unit. And there’s been no official movement concerning the now closed six Fresh & Green’s locations (former Super Fresh units that are also part of the NMFG organization) which have been on the block since late last year. Since the stores were left in pretty crappy condition, it’s not surprising that interest seems spotty at best. The Fresh & Green stores in Washington, DC and in Arnold, MD seem to be the best candidates to be moved. Back to Mrs. Green’s home base in WestchesterCounty in New York, UFCW Local 1500 picketed the Mrs. Green’s Natural Markets store in Mt.Kisco last month in protest of the dismissal of nine employees the Westbury, NY local said had attempted to organize the store’s employees. That unionization attempt failed. As for the bigger picture at Mrs. Green’s, I still don’t get it. The natural/organics foods retailer, which is owned by Canadian hedge fund Catalyst Capital Group, has major expansion plans that extend to points even further than Northern Virginia. Thus far after visiting several Mrs. Green’s stores in New York and Connecticut, I’m not locking in on Robin’s vision. The newer prototypes (incl
uding Wilton, CT; Hartsdale, NY; Chicago; and Calgary, Alberta) are much like Fairfax – reasonably merchandised but with a limited selection and high retails. And I don’t know what the volume projections for the newer Mrs. Green’s stores are, but my gut tells me they can’t be happy with current sales. Robin seems undaunted though, with plans for more new stores in: Manhattan’s WestVillage; Dobbs, Ferry, NY; West Windsor, NJ; New Canaan, CT; and another Canadian unit in Burlington, Ontario…some news from a bit farther south. Publix has developed a dedicated website – www.charlotte.publix.com – for its newest operating division in Charlotte, NC. The new site lists departments, services and recipes offered by the powerful Lakeland, FL merchant and includes a list of current stores that are open in the greater Charlotte area – Indian Land, SC, Fort Mill, SC and the BallantyneTownCenter area of the Tar Heel state’s largest city. The Ballantyne store, which opened on February 26, will be a true test for Publix as it competes with market leader Harris Teeter in one of Charlotte’s toniest areas. In fact, with the powerful Kroger engine behind Harris Teeter, look for a battle royale over the next few years between two of America’s best run supermarket chains…the FTC has officially approved the Bi-Lo/Winn-Dixie acquisition of former Delhaize stores that operated under the Sweetbay, Reids and Harvey’s banners. The order is still subject to a 30 day comment period and includes Bi-Lo’s consent that it divest 13 stores that were deemed to overlap with existing Bi-Lo and Winn-Dixie units. Those 13 units (including four Winn-Dixie and one Bi-Lo store), will all be shuttered between March and July of this year…very interesting piece in the February 25 edition of The Wall Street Journal noting that Target is “punishing” Procter & Gamble for the role the large CPG packer has played in assisting Amazon’s exponential growth in recent years. The story states that P&G has literally set up shop inside Amazon’s many distribution centers (with many more to come) to help create greater efficiencies for the online merchant and Procter. The story adds, “P&G loads products onto pallets and passes them over to Amazon inside a small, fenced-off area. Amazon employees then package, label and ship the items directly to the people who ordered them. The under-the-tent arrangement is one Amazon’s competitors don’t currently enjoy, and it offers a rare glimpse at how the company is trying to stay ahead of rivals, including discount chains, club stores and grocers.” Target, which isn’t having a particularly enjoyable last few months, has allegedly reduced the number of end-caps, moved P&G products to less optimal shelf positions and taken away “category captain” in several key categories. Whether it’s a fair retaliatory practice or not, the ago old adage of never pissing off a customer applies here…sadly, there are too many obits to report this month. From our business, I’m sorry to report the death of industry leader Bob Hermanns, who most recently was director of the Food Industry Management program at the University of Southern California. Hermanns, 70, died in early February, which was shocking to me because I spent some time with Bob at the FMI Midwinter Convention in Scottsdale in late January. A truly kind and gentle soul with such a positive outlook on life, Bob also served as an executive for such organizations as Lucky, Jewel, American Stores, Associated Grocers and Weis Markets (where I first met him). The food industry has lost one of its truly good guys. Also passing on were two great actors – Philip Seymour Hoffman and Maximilian Schell. Hoffman, who, simply stated, was one of our generation’s most gifted performers, tragically died of a heroin overdose (what a waste) at the age of 46. An Oscar winner for “Capote” (2005) and multiple nominee, Hoffman simply had the “touch.” Whatever medium he acted in – television, stage or movies – his presence and raw ability improved every production he was part of. While “Capote” was certainly his signature role, he was also well known for his appearances in “Boogie Nights” (1997), “Almost Famous” (2000), and “Doubt” (2008). However, I’d refer you to the 2003 film, “Owning Mahowny,” in which Hoffman played a down on his luck bank manager Dan Mahowny, a sad sack with a gambling addiction and access to millions of dollars. A melancholic and haunting story with a riveting performance by Hoffman that is worth more than the price of a Netflix rental. Also passing on recently was Austrian actor Schell, 81, who won an Oscar in 1961 for his role as Hans Rolfe, the impassioned but ultimately unsuccessful defense attorney for four Nazi judges on trial for sentencing innocent victims to death in the great Stanley Kramer film “Judgment at Nuremberg.” Schell also was nominated for two other Academy Awards and was described by Austrian Cabinet minister Josef Ostermayer as one the “greatest actors in the German-speaking world.” He grew up in Switzerland after his parents fled Austria when it was annexed by Germany in 1938. His last film, “Les Brigands” will be released later this year. Last month, we also learned of the death of Sid Caesar, the iconic comic who practically invented variety television in its early years. With “Your Show of Shows” (1950-1954) and its successor, “Caesar’s Hour” (1954-1957), Sid Caesar not only owned half of America every Saturday night with his vast array of “schtick,” his weekly shows also gave opportunities to some of America’s funniest men and women who would later have great writing and comedy careers of their own. Those included Imogene Coca, Carl Reiner, Neil Simon, Mel Brooks, Woody Allen, Larry Gelbart (“M*A*S*H”) and Mel Tolkin (“All in the Family”). Caesar, who shed the spotlight for many years in the 60s and 70s due to struggles with alcohol and pill addiction, emerged a healthy and still funny man in the 1980s with roles hosting “Saturday Night Live” and appearing in the Mel Brooks movie, “The History of the World Part 1” (there was never going to be “Part 2”). Caesar was 91 when he passed. Another comedy legend has also died – Harold Ramis, 69, who produced, directed and wrote some of the greatest comedies of my generation – “Animal House” (1978), “Caddyshack” (1980), “Stripes” (1981), “National Lampoon’s Vacation” (1983), “Ghostbusters” (1984), “Back To School” (1986), and “Groundhog Day” (1993). Ramis, a Chicago native, began his career with the legendary Second City comedy troupe in 1969. For the Ramis movies listed above, here’s a famous line from each of those films. Can you match the line with the movie and the character or actor who delivered it? (send me an email at [email protected]). 1) “Oh, this is your wife, huh? A lovely lady. Hey baby, you must’ve been something before electricity.” 2) “I got laid off when they closed that asbestos factory, and wouldn’t you know it, the Army cuts my disability pension because they said that the plate in my head wasn’t big enough.” 3) “Fat, drunk and stupid is no way to go through life, son.” 4) “C’mon, it’s Czechoslovakia. We zip in, we pick ‘em up, we zip right out again. We’re not going to Moscow. It’s Czechoslovakia. It’s like going into Wisconsin.” 5) “I liked the university. They gave us money and facilities and we didn’t have to produce anything! You’ve never been out of college! You don’t know what it’s like out there! I’ve worked in the private sector. They expect results.” 6) “The football team at my high school, they were tough. After they sacked the quarterback, they went after his family.” 7) “This is pitiful – 1,000 people freezing their butts off to worship a rat.” And, it’s been a tough period for former baseball stars who excelled at their craft despite managing to occasionally mangle the English language. In January, we reported on the death of San Diego Padres announcer Jerry Coleman and l
ast month the unforgettable Ralph Kiner passed away. Kiner, 91, was an excellent power hitting outfielder who played primarily for awful Pittsburgh Pirate teams in the late 1940s and early 1950s. He led the National League in home runs for a record seven consecutive years (1946-1952) and was inducted into the Baseball Hall of Fame in 1975. But what I remember most about Ralph was his post-game show “Kiner’s Korner” and his on-the-air malapropisms. “Kiner’s Korner” was the Mets’ postgame TV show which featured the Hall of Famer interviewing the star of the game from a cheesy television booth with even cheesier music. There are many hilarious tales to be told from the show, but one that I remember clearly was in 1985 when Len Dykstra had just been called up from the minor leagues and had a great game. Dykstra’s mom, an attractive looking woman, also attended the game, so Kiner invited her to be on the postgame show, too. It was obvious that Kiner was taken aback by Mrs. Dykstra when he closed the show by saying: “Congratulations on having a great game, Lenny and for having a hot mom, too.” Among the bloopers that Ralph uttered on the air were: “All of his saves have come in relief appearances;” “On Father’s Day, we again wish you all happy birthday;” “The Hall of Fame ceremonies are on the thirty-first and thirty-second of July:” and the classic, “Hello, everybody. Welcome to Kiner’s Korner. This is….uh. I’m…uh.” Kiner could also bungle a few ballplayers’ names. Hall of Fame catcher Gary Carter was Gary Cooper; speedy outfielder Vince Coleman became Gary Coleman and catcher Dann Bilardello somehow exited Kiner’s mouth as Dann Bordello. Ralph, I’ll always remember you – I still smile fondly recalling some great memories of my youth. And finally it is with great sadness that I report the death of John Griffin, 82, founder and former owner of The Griffin Report, the first great regional food trade newspaper serving our industry, which John launched in 1966. John Griffin hired me and taught me (along with my now retired partner, Dick Bestany) the foundational skills of both the food and journalism businesses. John was a tough boss – demanding, temperamental, opinionated and passionate. His mercurial personality was only outpaced by his sheer brilliance as a writer. When I was a young (and somewhat brash) 22 year old, John allowed me the freedom to develop my own style; he also knew when I needed a lecture. Always prepared with a scalpel-sharp memory, John worked and played hard. The happy times were always a lot sweeter because when John Griffin was in a good mood, life was rarely more fun. But, even in humor there was always a point to be made, such as when I was the rookie on The Griffin Report team and one of my jobs in those days was to deliver the “flats” (the pasted-up pages of the newspaper) to our printer who was about 30 miles from our Boston office in Lowell, MA. As I took the large box, filled with approximately $50,000 worth of ads, John said to me: “You’ve got to get the flats up to the printer in an hour to meet our deadline. Do you understand?” I nodded affirmatively. He repeated, “Are you sure you understand?” I nodded again. He then said, “What I really mean is that if you have a car accident on the way, find somebody on the road to take the flats to our printer in Lowell. You can worry about yourself later.” To this day, I don’t know if he was kidding. I’ll miss you, John. May you rest in peace.