Taking Stock

Publix Richmond Entry To Create More Change In Already Overstored Market 

Earlier this month, Publix Super Markets announced it would build its first stores in the state of Virginia, noting that it has signed two leases for locations in the Old Dominion. Scheduled to open in late 2017 is a 54,000 square foot unit in Bristol followed by a 49,000 square foot supermarket in Glen Allen the following year.

Publix has been aggressively moving north ever since it created its Charlotte division in 2012 eyeing Harris Teeter (Kroger) as its main target in North Carolina’s Queen City. It now has 10 stores in the Charlotte region. In the past 18 months, Publix opened its first store in the Raleigh-Durham market (Cary, NC – the same town that Wegmans will be entering in a few years) and has several more sites under development in the fast growing and fiercely competitive Research Triangle area.

In Bristol, the competition will be strong with Food City, Wal-Mart and Kroger as existing solid operators, but it will be nothing like what the Lakeland, FL-based employee-owned chain will face in Richmond. Wegmans will make its Richmond market debut this year with stores in Short Pump (spring) and Midlothian (fall). Kroger, the fastest growing food retailer in the market over the past five years, will add

another Marketplace combo store (its fifth) in Ashland (it opened another Marketplace unit in Chesterfield in October) and will also build a conventional 90,000 Kroger store in Colonial Heights. Whole Foods will add its second unit in the area on Broad Street while Aldi and Wal-Mart’s Neighborhood Markets (which made their entries in 2015), will be adding additional units. And don’t forget about Lidl, which will enter the Richmond market in early 2018. The German merchant reportedly has about six leases already signed for “from the ground up” units averaging about 35,000 square feet.

Even more change will come soon when the FTC orders Martin’s (Ahold USA) and Food Lion (Delhaize America) to divest overlapping stores as part of their upcoming merger which is expected to be completed

by mid-year. Food Lion, with about 45 stores in the Richmond area, and Martin’s, with 22 units in the market, operate more stores than any other supermarket retailer. Even though an argument can be made (on paper) that as many as 20 stores might pose a conflict, based on the FTC’s more relaxed ruling over the past few years (Kroger/Harris Teeter, Albertsons/Safeway, Dollar Tree/Family Dollar), the number of overlaps may well be less than half of that total.

Publix CEO Ed Crenshaw, who will retire on April 30, commented on crossing yet another state line: “Being company owners, our associates continue to work diligently to exceed our customers’ expectations, which has allowed Publix to experience continued growth. As we enter for new opportunities which supports our culture of promotion from within. We look forward to providing the great state of Virginia with the high quality service and products that our customers have come to expect and that have earned us recognition throughout the industry.”

The Publix site in Glen Allen is the same one where Ukrop’s had planned to build a store. Ukrop’s had completed site work for the store (which was originally designed to be 76,000 square feet) before the family-owned chain sold to Ahold USA in 2010. Last June, Fairfax, VA-based real estate firm, The Peterson Cos., paid $8.1 million to buy the 15-acre parcel off Nuckols Road.

Virginia will mark the company’s seventh state of operation. In September 2012, the retailer announced its long awaited entry into North Carolina, opening the first location there in February 2014. The company said it is looking ahead to aggressive growth within the state and in its current operating areas of Florida, Georgia, Alabama, Tennessee, and South and North Carolina.

One consistent fact that applies to Publix is its consistency. It is strategically patient and almost always seeks to grow organically. When Publix expanded into Atlanta 24 years ago, it entered with only one store, too (in Marietta, GA), but is now battling Kroger and Wal-Mart for market leadership. Similar success stories can be seen in Alabama and South Carolina.

Based on the competitiveness of the market and the distance between its closest distribution center (in Lawrenceville, GA), this will be one of the biggest challenges in the 86-year history of one of the finest retail operators in the country.

Former C&S Exec Gross Named SVU CEO;

Deflation Blamed For Soft Third Quarter

After searching for several months, Supervalu found its man to head the evolving retailer/wholesaler. Mark Gross, a former C&S executive, has been named the Eden Prairie, MN firm’s president and CEO, effective February 5, 2016. Gross, 52, will succeed Sam Duncan who will retire at the end of the month when SVU completes its fourth quarter and fiscal year.

“I am thrilled to join Supervalu,” said Gross. “I am delighted to have the opportunity to help take the company to the next level and to work with the board and management team to set the strategic path for the future. I look forward to working with our great customers and the talented group of employees in this company, including working with Eric Claus (new Save-A-Lot CEO) as Supervalu continues to explore and prepare for a potential spin-off of Save-A-Lot.”

Gross joins Supervalu with 20 years of grocery and wholesale leadership experience. From 1997 to 2006, he worked at C&S Wholesale Grocers, including serving as co-president of C&S’s overall operations from 2005-2006. Additionally, during his tenure with C&S, Gross served as CFO, general counsel, and president of its affiliated retail grocery operations.

For the past decade, Gross has led Surry Investment Advisors, a firm he founded to provide consulting services to grocery distributors and retailers with respect to strategic and operational matters. In this advisory role, he has assisted grocery clients on several multi-billion dollar acquisitions and divestitures and consulted with private equity firms with respect to investments in food retail, distribution and consumer packaged goods sectors. Gross earned his law degree from the University of Pennsylvania (where Cohen is also an alum), graduating cum laude, and holds a BA from Dartmouth College, where he graduated with the highest honors in his major.

“Mark is a talented, strategic and results-driven leader with a wealth of industry experience,” said Jerry Storch, Supervalu’s non-executive chairman. “We are extremely pleased that Mark will be leading Supervalu and we look forward to working with him to drive the company’s performance.”

In a related announcement, Supervalu noted that Duncan will serve as a special advisor to the board until his retirement. He will be stepping down from the company’s 11-person board of directors effective February 29. Gross will be appointed to the board effective March 1. Additionally, SVU said that Bruce Besanko, COO, will report to Gross and continue to oversee the day-to-day operations of the company’s Independent business and retail food segments as well as the Supervalu’s finance organization.

“On behalf of the entire board of directors, I want to thank Sam for the tremendous job he has done these past three years,” Storch said. “He has built a terrific leadership team and together they have established

a strong foundation and positioned the company for future success. We wish Sam all the best in his retirement.” “I am proud of all that we have accomplished these past three years and thankful for the opportunity I’ve had to lead this great company,” said Duncan. “Supervalu has tremendous employees, customers and licensees and I leave here knowing the company is in good hands with a strong leadership team and a great foundation in place to build on.”

Gross will be a very busy man right out of the gate. Not only will he be dealing with the Save-a-Lot spin off, he’ll have to address Supervalu’s fading stock price (about $4.30 per share from a high of $12 per

share 10 months ago) and flat third quarter financial results. Specifically, all segments of the organization – independent sales, corporate stores and Save-A-Lot – were down as the company said it struggled with deflationary issues. Earnings from continuing operations of $35 million, or $0.13 per diluted share, which included $11 million in after-tax charges and costs related to asset impairments, the potential separation of Save-A-Lot, and employee severance and net sales of $4.11 billion. Net earnings from continuing operations for last year’s third quarter were $12 million.

Supervalu’s total third quarter sales decreased $111 million or 2.6 percent. Save-A-Lot network (licensees) identical store sales were negative 3.4 percent. Identical store sales for corporate stores within the Save-A-Lot network were negative 0.4 percent. Retail food (corporate stores) identical store sales were negative 2.6 percent. Total net sales within the independent business segment decreased 3.5 percent. Fees earned under transition services agreements (TSAs) in the third quarter were $46 million compared to $43 million last year. Third quarter independent business (wholesale) net sales were $1.90 billion, compared to $1.97 billion last year. The company said the decrease was primarily due to lower sales to existing customers and lost stores, partially offset by increased sales to new customers and new stores operated by existing customers.

By segment, independent business operating earnings in the third quarter were $54 million, or 2.8 percent of net sales, and included a $6 million intangible asset impairment charge. When adjusted for this item, independent business operating earnings were $60 million or 3.2 percent of net sales. Last year’s Independent Business operating earnings in the third quarter were $60 million, or 3.1 percent of net sales.

Third quarter Save-A-Lot net sales were $1.07 billion, compared to $1.09 billion last year, a decrease of 1.5 percent. The sales decrease reflects identical store sales across the Save-A-Lot (licensee) network of negative 3.4 percent and the impact of closed stores. Save-A-Lot operating earnings in the third quarter were $32 million, or 2.9 percent of net sales, and included $2 million of store closure impairment charges. When adjusted for this item, Save-A-Lot’s operating earnings were $34 million, or 3.1 percent of sales. Last year’s Save-A-Lot operating earnings in the third quarter were $34 million, or 3.1 percent of net sales. Third quarter Retail Food (Shoppers, Farm Fresh, Shop ‘n Save, Cub, Hornbacher’s) net sales were $1.10 billion, compared to $1.13 billion last year, a decrease of 2.5 percent. The sales decrease reflects negative identical store sales of 2.6 percent.

Retail food operating earnings in the third quarter were $21 million, or 2.0 percent of net sales, and included $1 million of store closure impairment charges. When adjusted for this item, retail food operating earnings were $22 million, or 2.1 percent of sales. Last year’s retail food operating earnings were $28 million, or 2.5 percent of net sales. The decrease in retail food operating earnings was driven by higher employee-related costs, the company stated.

At the follow-up conference call with financial analysts, Duncan focused on the challenges the company faced due to price deflation. “When we got here (three years ago), we did not have the deflation issues that we are facing now, and it’s up to us to do the right things to fight through that like I just mentioned a few seconds ago. If you look at where we were at approximately a year ago and where we are today, it’s a 10 percent swing on inflation and deflation,” he explained. “So that means when you open up the door, you’re 10 percent behind before you start, so you’ve got to figure out ways to fight through that. We don’t know when we are going to start seeing some inflation and we keep thinking we are going to see it, but it hasn’t happened so far and we’ve thought that way for about six months now, but hopefully we will see some in the future. But right now we just got to work through, work on things to fight through that both on the retail side, the regular retail and Save-A-Lot. So it’s a significant factor right now.”

Adding more color to that comment was Sue Grafton, SVU’s CFO, who noted: “The deflationary environment has deepened and lengthened relative to our expectations six months ago and is something we simply must continue to work through. However, we don’t see the deflationary environment changing much in the fourth quarter.”

Gross steps into an environment that is markedly better than the one Duncan inherited three years ago. As noted by Storch earlier, Duncan did an amazing turnaround job, changing everything from its go-to-market marketing strategy to the company’s culture – the hardest task of all.

But Supervalu is currently at somewhat of a crossroads. It’s about to lose a very profitable table asset, its corporate stores have underperformed for years and while its wholesale business is very stable, the number of independent retailers nationally continues to decline. If Supervalu does indeed sell its corporate stores or at least some units (Farm Fresh and Shoppers come to mind), can the company sustain itself as a publicly-traded firm whose foundation is built on 3 to 5 year supply contracts from the most vulnerable segment of food retailing – the independent grocer?

We wish Mr. Gross much success in handling these challenges.

Filings Indicate Ahold Delhaize Merger Progressing In Timely Manner

While we’re expecting a ruling from the FTC in the next month regarding potential store overlaps, there’s other Ahold and Delhaize news to report. In recent weeks, the two companies filed registration statements in Europe (with the Brussels Commercial Court) and the U.S. (with the SEC) of what might happen in the future. In Ahold’s Form F-4 filed late last month, it was revealed that Delhaize refused to re-engage in merger discussions when approached in June 2013 (there were several other unsuccessful attempts to engage Delhaize over the past decade), citing timing issues (Delhaize was searching for a new CEO after longtime chief executive Pierre-Oliver Beckers announced his retirement). Nine months later, the two large European grocers did begin merger discussions after Delhaize agreed to consider melding the two firms. Shortly after Frans Muller was hired in late 2014, Delhaize’s U.S. business began to improve and business combination was feasible.

“The Delhaize board determined to continue exploring a potential transaction with Ahold because it believed that, following the turnaround of Delhaize’s U.S. business and the restructuring of its Belgian business since 2013, a potential business combination transaction with Ahold was the most attractive strategic alternative if it could be completed on agreeable terms,” the F-4 document stated. Other bits of wisdom gleaned from the SEC filing include a “talking points” section directed to store managers and district directors (issued internally on the merger date of June 24, 2015) about how to respond to questions about the deal. Among the nuggets in the memo: “If asked, you can reassure our customers and there are no changes to their shopping experience in the immediate or the near-term because of the news. If queried about how the merger will strengthen the company’s customer offering, manager and DMs were instructed to say, “This merger will enable Ahold Delhaize to deliver a superior customers offering with enhanced choice in products, services and way of shopping – anytime, anywhere.” (There are few things in life more exciting than reading pages and pages of SEC legal and financial documents in eight-point type.) Also of note is the announcement that each retailer will hold an extraordinary general meeting on March 14 where shareholders will consider and vote on proposals that will officially merge Ahold and Delhaize. If you’re interested in visiting two of the oldest European capitals, the Delhaize meeting will be held at Proximus Lounge (sounds promising) in Brussels and the Ahold confab will take place at the Amsterdam Rai Convention Center.

Back in the USA, both companies posted their sales results for their respective fourth quarter and year-end periods. At Ahold, U.S. sales continued to modestly rise, particularly in the New York Metro area, where Stop & Shop benefited from competitive closures and the addition of 25 former A&P stores which were acquired last fall. In its statement, the multi-national retailer said U.S. sales totaled $6.6 billion in the period ended December 26. ID stores were flat, but comparable store sales (excluding gas) increased by 1.7 percent. Excluding gas and adjusted for an additional week in the fourth quarter this year, sales increased by 4.1 percent at constant exchange rates vs. the same period last year. The Amsterdam-based merchant said it expected underlying operating margin to rise from its third quarter, as a result of the extra week. For the year, Ahold said sales totaled $23.9 billion, an increase of 1.4 percent at constant exchange rates. Ahold said it would report full financial results including earnings for the period on March 3. At Delhaize America, sales increased 2.6 percent to $4.4 billion, excluding the extra calendar week. Comparable store revenue jumped 2.3 percent, which the company noted was achieved despite deflation of approximately 1 percent in the quarter and no weather-related events that boosted fourth quarter volume a year ago.  Delhaize also made price investments in both its Food Lion and Hannaford units during the period, which also ended December 26. The Belgian retailer said U.S. operations met expectations of an underlying operating profit margin of 4 percent. Delhaize will also release its full financial results in March.

More Ahold USA news: the company’s online unit – Peapod – has set up distribution points at three Washington area Metro (subway) stations. Customers can utilize the service by placing and paying for their orders through Peapod’s website and then can pick up their purchases between 4 and 7 p.m. on Mondays, Wednesdays and Fridays. Peapod (Giant/Landover) will deliver pods containing individual orders to each stop. Metro officials said if the six-month test is successful it could expand to additional locations in the 91 station grid. One more Ahold USA item: the Carlisle, PA-based organization announced last month that it plans to close two Western NY distribution centers – in Lancaster and Cheektowaga – that were part of its American Sales Co. (ACS) unit which handled HBC/nonfoods. C&S, which in the past six months has lost most of its A&P business, and more recently, much of its Safeway-Eastern distribution will be the beneficiary of that move, adding those items to warehouses in Bethlehem, PA (where C&S is expanding its distribution footprint) and South Hatfield. MA. About 600 AUSA associates will be impacted by the closings. “Decisions to transfer facilities are not easy, and we understand the concern that this change will cause for ASC associates and their families,” said Jan van Dam, executive VP-supply chain and e-commerce for Ahold USA.

“ASC’s operations in the Buffalo area are strong, but they are no longer located within the markets served by Ahold USA’s retail divisions,” van Dam added. “Ahold USA continuously evaluates its business processes and supply chain to ensure that we are providing the highest level of service at the lowest cost for our local retail divisions and, ultimately, their customers.” The transition is expected to start in April and be completed by August. And despite its setback at Safeway-Eastern, the country’s largest wholesaler will be adding new business from another Albertsons’ division – Shaw’s in New England. The Keene, NH-based distributor will add the frozen food business for 154 Shaw’s and Star Markets units to its portfolio effective March 7. According to the West Bridgewater, MA-based retailer, “This new business venture will allow the expansion of Shaw’s & Star Market dry grocery warehouse capacity at our Wells, ME facility to meet the company’s needs now and in the future. This change will not result in any job losses or layoffs in the distribution center or our transportation division, Clifford W. Perham Transportation, Inc.”

‘Round The Trade

As it continues its journey to become a publicly-traded company, Albertsons once again posted strong sales numbers in its third quarter ended December 5. For its approximately 1,200 Safeway stores, the Cerberus controlled retailer acquired in January 2015, identical stores sales rose 5.6 percent, and at its New Albertsons Inc. (NAI) unit (Acme, Shaw’s, Jewel), IDs increased 3.6 percent. The biggest gainer came from those Albertsons bannered stores that the company acquired from Supervalu in 2013. Identical store revenue jumped 9.9 percent, following gains of 9.7 percent and 9.5 percent during the first two quarters of fiscal 2016. The sales numbers were included in an amended prospectus filed by the second largest pure play supermarket chain in the U.S. whose public launch could come in the next 2-4 months. It is seeking to raise approximately $1.5 billion through the sale of about 65.3 million shares (based on a proposed price of $24.50 per share). In related Albertsons news, the Boise, ID-based retailer said it will pay bankrupt Haggen $5.75 million to settle ongoing litigation in which Haggen claimed that Albertsons employed “coordinated and systematic efforts to eliminate competition and Haggen as a viable competitor.” As part of an FTC ordered divestiture related to its Safeway acquisition late in 2014, Albertsons sold 146 units to Haggen, most of which were located in southern California and Arizona). At the time, Haggen operated only 18 stores in the Pacific Northwest. Within a few months, it was obvious that a lack of capital, poor execution, and the stress of increasing its store count eight-fold put the private-equity owned merchant (Comvest) in full crash and burn mode. In September, the crash was a spectacular one, with Haggen filing for Chapter 11 protection. The store auction process is under way and continuing… as the (Albertsons) world turns: in what was a surprising announcement, the big retailer said that it would convert its three remaining Florida stores – Largo, Altamonte Springs and Fort Lauderdale – to the Safeway banner, but said the stores would remain part of the company’s 65-store Houston division, nearly 1,000 miles away. On one hand, it seems kind of a reach in strategy to convert and upgrade three less-than-stellar supermarkets that far away from its distribution center. On the other hand, this seems like a test to see if Albertsons (which once had a strong presence in the Florida market) can reinvent itself with a new format that could lead to further organic expansion, or more likely, a future acquisition. What’s interesting about this move is that Albertsons executive VP (and former Acme Markets president) Jim Perkins will continue to supervise the Florida stores as part of his job of overseeing nearly 1,000 stores from New England to Denver. In 2004 (for those old enough to remember) during the Larry Johnston era (pre-Supervalu), Acme was given oversight of 121 Albertsons stores in the Sunshine State under then Acme president Carl Jablonski. The man who was appointed to run the day-to-day Florida operation – you guessed it, Jim Perkins!…Lidl has unveiled a new website – lidl.com – which gives us a further peek under the tent of what the German company wants from its vendors as it gears up for an early 2018 store launch. Here are a few factoids: Lidl’s store footprint will be approximately 36,000 square feet in size and it prefers “stand alone” locations in eight states from New Jersey to Georgia. The store sites should be at least 3.5 acres in size and accommodate a minimum of 150 cars. It is seeking to build stores in densely populated areas with traffic counts of more than 20,000 cars daily. The website noted that Lidl prefers to purchase pads and sites. For grocery vendors, Lidl has already had many initial meetings and said it is seeking year-round shelf-ready items (including perishables) as well as some “in and out” items. Also on the website are job listings, noting that corporate and store positions are available…the hottest name in food retailing – Kroger – continues to produce record numbers in large part due to an eclectic blend of innovation and discipline. Late last month, the Cincinnati-based chain said it will change the method its uses to category manages its beer, wine and liquor sections in the stores. Soon to be gone is the traditional merchandising approach which made large alcohol producers such as Anheuser-Busch (InBev), E&J Gallo and Diageo “category captains,” which allowed them plenty of input and some control of how alcohol products are set in supermarkets that are allowed to sell those products. Kroger is apparently blowing up that antiquated model, and using an independent distributor – Southern Wine & Spirits – which will work more closely with the big chain on how to more effectively merchandise beer, wine, and booze. No retailer utilizes data better than Kroger and, according to company spokesman Keith Dailey, “Our goal is to respond to customer needs and more quickly bring new, innovative adult beverages to market.” Not surprising, the liquor wine and beer industry dislikes the plan, preferring the old system which they believe is tried and true…the bad press for Wal-Mart continues as the National Labor Relations Board (NLRB) ruled last month that the retailer must rehire 16 employees who struck the Behemoth nearly three years ago. Administrative law judge Geoffrey Carter ruled that those employees’ right to strike was protected by law and Wal-Mart had no right to fire them. Wal-Mart maintained that the firings should have been deemed legal because the job actions were intermittent and the associates’ absences were not excused. Wal-Mart said it will appeal. One more thought about Wal-Mart and its decision to renege on a promise to build two stores in economically challenged areas of Washington, DC: It’s this type of hypocrisy that seems to follow the world’s largest retailer around like a bad penny. While I believe relatively new CEO Doug McMillon is more inclined than his predecessors to do the right thing, Wal-Mart’s scorecard on how its treats its associates still shows more losses than wins. Political beliefs aside, it’s kind of like why many people dislike Ted Cruz’s image (I’m not talking about his ideology or policies, I’m referring to his persona). As long as Wal-Mart backs out of promised deals, illegally fires associates and has to deal with defending itself about alleged illegal practices internationally, its perception will never change (despite McMillon’s efforts). And as a merchant, it now finds itself at a crossroads. Yes, it remains the highest peak in the mountain range and its nearly $500 million in annual sales is mind-blowing, but the fact is that its entire operation has slipped. Other than operating SuperCenters (which it still does well, but not nearly as well as a decade ago), the company’s execution of other formats in the U.S. really isn’t very good. “Express” was being touted as Wal-Mart’s godsend into the small format realm (to compete against dollar stores and c-stores) when it debuted in 2011. It never left the “pilot” stage. Neighborhood Market was hailed as the Behemoth’s mano-a-mano entry against the conventional supermarket channel. And despite an attempt at re-energization over the past two years, the truth is that as a supermarket operator Wal-Mart is very mediocre. And Sam’s Club is an also-ran in the club store triad, lacking the innovation and flair of Costco and unable to match the localness of BJ’s…Sheetz, the dynamic c-store chain based in Altoona, PA, announced last month that it will invest more than $15 million to raise the wages of store employees across the company without cutting back on hours for full-time employees. “While other businesses in the industry might have to cut back on employee hours or new hires as a result of wage increases, Sheetz is working hard to provide full time hours to as many employees as possible, providing them with an opportunity to earn more and secure health benefits,” said Stephanie Do
liveira, VP-human resources at the $6.9 billion convenience store retailer which operates more than 500 stores in the Mid-Atlantic. “As a family-owned business, we’re committed to attracting, retaining and developing the best people. We believe that paying wages at the upper end of the retail scale is necessary to achieve that goal. In addition to paying competitive wages, we provide our employees with increases based upon tenure, access to health insurance, quarterly bonuses, college tuition reimbursement, adoption assistance and paid time off, among many other benefits, continuing to prove that Sheetz strives to be a great place to work.” Excellent point about raising wages and not cutting hours, which seems to be the “dirty little secret” that usually occurs after many retailers give self-praise to their new found “generosity.”… good news for our friends at Bozzuto’s, which has been named primary wholesaler for RMG’s (Thriftway/Shop ‘n Bag) 27 stores in the Delaware Valley. RMG had utilized White Rose (AWI) for many years until the company went bankrupt in late 2014 and was ultimately acquired by C&S, which has been servicing the divergent independent group for the past 18 months…a few more details about Wegmans’ entry into North Carolina: the unit will be built in a new mixed use development in the Raleigh suburb of Cary. The entire 90-acre tract (which has not yet gained full approval from the Cary Town Council) will include: 200,000-300,000 square feet of retail and restaurant space; a 130 room hotel; 300,000-600,000 square feet of office space; and 300-600 apartments. When the new Wegmans store opens (probably in 2018 or 2019) it will join a crowded field of new entries in the fast growing berg. Publix opened its first Raleigh area store there in late 2014 and has two other supermarkets planned in that town. Harris Teeter also opened its second store in Cary in late 2014 and Whole Foods is also building a new store. Lowes Foods has acquired land to build a third store and we hear Lidl is close to signing a lease. Food Lion and Kroger also operate supermarkets in in Cary and Wal-Mart operates a SuperCenter and Neighborhood Market unit in a town of 150,000 people. It sounds like “Fredericksburg south” on steroids…too many obits to report this month. From the world of music, we’re sad to report the passing of David Bowie, the great singer and actor who died last month at the age of 69. Inducted into the Rock and Roll Hall of Fame in 1996, Bowie was a true performance artist who created alter ego-like characters such as Ziggy Stardust and composed classic songs like “Rebel, Rebel,” “Under Pressure,” “Starman,” and “Changes.” He also acted in such films as “The Man Who Fell to Earth” (1976) and Martin Scorsese’s “The Last Temptation of Christ” (1988). Bowie also did a three-month stint on Broadway as the “Elephant Man” in the 1980s. Two days prior to his death and on his birthday, January 8, Bowie released his final album, “Blackstar.” David Bowie was born in South London as David Jones. He changed his name in 1966, after Davy Jones of the Monkees achieved fame. David Bowie, a true original, may you rest in peace…another giant musical talent has also passed on. Glenn Frey, one of the founders of the iconic group The Eagles, has died at the age of 67. Frey and his band mate Don Henley were responsible for some of the greatest rock songs of the 1970s and 80s, including “Hotel California” (Henley singing), “Lyin’ Eyes” and “Heartbreak Tonight.” He also co-wrote with Jackson Browne the classic “Take it Easy” which Browne turned to his friend, Frey to complete after Browne said he was unable to. Beyond all of the band’s well-known hits, one of Frey’s great (and most unsung songs) was “What Do I Do With My Heart” from “Long Road Out Of Eden” in 2007, the last Eagles studio album. Check it out…Paul Kantner, one of the original members of The Jefferson Airplane (Jefferson Starship) is hopefully flying peacefully to another planet. Kantner, 74, was the most outspoken leader of the psychedelic San Francisco-based band which was formed in 1965. While Kantner provided the grit and Grace Slick represented the face of the band, it was really lead guitarist Jorma Kaukonen and bassist Jack Casady that gave the quintet its soul (Kaukonen and Casady, who are in their mid-70s, are still performing as Hot Tuna and they’re still fabulous). Marty Balin’s pitch-perfect voice was also an important component in the band’s huge success. Kantner and his band mates were inducted into the Rock and Roll Hall of Fame in 1996. He is responsible for writing or co-writing some of the group’s best songs including “Volunteers,” Crown of Creation” and Wooden Ships (with David Crosby). Coincidentally, passing away on the same day that Kantner did (January 28) was Jefferson’s Airplane original lead singer Signe Anderson. Anderson appeared on only the band’s debut album “Jefferson Airplane Takes Off” (1966) and then left the band to be replaced (in a Wally Pipp type scenario) by Grace Slick. Anderson was also 74…a few years ago, while attending a Friars Club roast of Matt Lauer in Manhattan (one of the funniest experiences of my life), one of the members on the dais was Abe Vigoda. Every comedian at the event made reference to Vigoda, using a variation of the same joke: “Nice to welcome Abe back from the dead;” “Abe Vigoda – returning for a one-night stand directly from Forest Lawn cemetery.” You get the drift. Well, Vigoda actually did pass away for real last month. He was 94 and will probably be best remembered for his role as cynical and over-the-hill detective Phil Fish from 1974-1977 on the TV comedy series “Barney Miller.” Because his character was so popular, ABC created a spin off series for Vigoda titled “Fish” which ran for almost two years. But what I’ll remember most about Abe Vigoda was his role as Sal Tessio, confidante of Vito Corleone (Marlon Brando) in the original “Godfather” movie (1972). After Vito passes away, Tessio hopes to take over the family’s empire. His plan is to kill Michael Corleone (Al Pacino), his father’s hand-picked choice to run the Corleone family business. However, Michael Corleone anticipates that Tessio’s plan to hold a peace summit among all of New York’s crime families is a setup and Tessio is ultimately executed by Corleone’s henchmen. In one of the great lines in one of the greatest movies ever made, a dying Tessio mutters “Tell Mike it was only business,” to Corleone family consigliere Tom Hagen (Robert Duvall).