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the daily citizen the daily citizen - Advantage Newspaper Consultants
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T M<br />
T HE D AILY C ITIZEN<br />
Stores, food makers compete on prices<br />
B Y E MILY F REDRIX AND<br />
S ARAH S KIDMORE<br />
AP Retail Writers<br />
Retailers, who begrudgingly<br />
went along when food<br />
makers pushed up prices to<br />
recoup record-high costs, are<br />
flexing newfound muscle and<br />
demanding price cuts to<br />
match <strong>the</strong> recent steep retreat<br />
in ingredient costs.<br />
Food makers are resisting,<br />
saying <strong>the</strong> uncertain economy<br />
and volatile costs make price<br />
cuts unwise. But retailers<br />
aren’t backing down.<br />
Consumers — who<br />
responded to <strong>the</strong> higher prices<br />
by favoring grocers’ in-house<br />
products over national brands<br />
and by shopping more at discounters<br />
— may end up with<br />
fewer choices all around.<br />
“We don’t have to carry<br />
three brands,” Costco<br />
Wholesale Corp.’s Chief<br />
Financial Officer Richard<br />
Galanti told investors earlier<br />
this month. “We can choose<br />
between brands that are going<br />
to be more aggressive, that<br />
help us help our members.”<br />
Costco has been lowering<br />
its prices, Galanti said, and is<br />
prepared to sacrifice profit<br />
margins and cut national<br />
brands that won’t negotiate on<br />
pricing — if that’s what it<br />
takes to drive sales.<br />
“We are not <strong>the</strong> only ones<br />
out <strong>the</strong>re pressuring manufacturers,”he<br />
said.<br />
Steven Burd, president of<br />
grocery chain Safeway Inc.,<br />
recently told investors that it<br />
has gotten some vendors to<br />
roll back <strong>the</strong>ir prices. Like<br />
many retailers,it is finding its<br />
new strength in its in-house<br />
brands, including Safeway<br />
Select, O organics and Primo<br />
Taglio deli products.<br />
“We’re going to chew<br />
<strong>the</strong>m up on corporate brands,”<br />
S UBMITTED BY D ALTON<br />
S TATE C OLLEGE<br />
A Dalton State College<br />
club, “Students United for<br />
Peace,” will sponsor “The<br />
Cost of War: Six Years Later<br />
— A Speaking Tour on <strong>the</strong><br />
Cost of <strong>the</strong> Iraq War” today<br />
at 12:15 p.m. in <strong>the</strong> Pope<br />
Student Center.<br />
The program will be presented<br />
by <strong>the</strong> American<br />
Friends Service Committee<br />
and Georgia Peace and<br />
Justice Coalition, which is<br />
taking its speaking tour to<br />
college campuses across <strong>the</strong><br />
state to mark <strong>the</strong> sixth<br />
anniversary of <strong>the</strong> Iraq War.<br />
“The goal of this tour is to<br />
educate Georgians on <strong>the</strong><br />
■ Michael Wayne Best,<br />
33, 4731 S. Dixie Highway,<br />
Resaca, was charged Sunday<br />
by <strong>the</strong> Whitfield County<br />
Sheriff’s Office with DUI<br />
and a turning violation.<br />
■ Dusty Zane Hall, 25,<br />
277 N. Henderson Bend,<br />
Calhoun, was charged<br />
Sunday by <strong>the</strong> Dalton Police<br />
Department with possession<br />
of methamphetamine and<br />
possession of tools for <strong>the</strong><br />
commission of a crime.<br />
■ Jared Patrick<br />
Henriquez, 26, 3793 Old<br />
Dixie Highway, Dalton, was<br />
charged Sunday by <strong>the</strong><br />
Whitfield County Sheriff’s<br />
Office with sale of cocaine,<br />
possession of cocaine, possession<br />
of less than an ounce<br />
of marijuana, use of a community<br />
facility while committing<br />
a felony and possession<br />
of tools for <strong>the</strong> commission<br />
of a crime.<br />
■ David Dewayne<br />
Isenhower, 29, 562 Jim Petty<br />
Road, Crandall, was charged<br />
T r ace y R . Dailey ,RPH<br />
706- 226- 6000<br />
Sunday by <strong>the</strong> Murray<br />
County Sheriff’s Office with<br />
simple battery, battery, false<br />
imprisonment and furnishing<br />
alcohol to a minor.<br />
■ Carlos Cesar Ortega,<br />
26, 2013 Brookhaven Drive,<br />
Dalton, was charged Sunday<br />
by <strong>the</strong> Whitfield County<br />
Sheriff’s Office with DUI,<br />
driving too fast for conditions,<br />
driving without a<br />
license, littering and improper<br />
lane change.<br />
■ Manuel de Jesus<br />
Ramirez, 27, 714 Olivia<br />
Drive, Dalton, was charged<br />
Sunday by <strong>the</strong> Dalton Police<br />
Department with possession<br />
of cocaine.<br />
■ Tara Celestina Tibbs,<br />
33, 1221 Nelson St., Dalton,<br />
was charged Sunday by <strong>the</strong><br />
Dalton Police Department<br />
with possession of methamphetamine,<br />
failure to maintain<br />
lane, possession of tools<br />
for <strong>the</strong> commission of a<br />
crime and a child support<br />
arrest order.<br />
COME BE APART OFOUR FAMILY<br />
• A ll M a jo r P r e s c r ip t ion C a r d s A cce p t e d<br />
S h a w , M o h a w k , M e d ic a r e P a rt D ,<br />
B lu e C r o ss, B lu e S hie ld & M a n y O t h e rs<br />
• F r ee C it y - W id e D e liv e r y<br />
• P r e s c r ip t ion L abe ls a n d P a t ie n t<br />
C ons u lt a t ion in E n g lis h o r S p a n is h<br />
( S e H abla E s p a ñol)<br />
s<br />
r<br />
r<br />
Burd said of food makers that<br />
don’t lower prices. “And<br />
we’re just going to keep driving<br />
corporate brands.”<br />
The situation grew so tense<br />
last month that grocer<br />
Delhaize SA in Belgium said<br />
it would no longer stock at<br />
least 250 Unilever products<br />
because <strong>the</strong> food maker was<br />
making “unprecedented”<br />
demands that would force<br />
retail prices up 30 percent.<br />
The grocer,which operates<br />
Food Lion and Sweetbay<br />
stores in <strong>the</strong> U.S., said<br />
Unilever also was demanding<br />
it carry some products consumers<br />
did not want. The two<br />
companies apparently<br />
reached an agreement this<br />
month, though <strong>the</strong> terms are<br />
unclear.<br />
Food makers,which raised<br />
prices last year after fuel and<br />
DSC club to present<br />
Cost of war program<br />
human and economic cost of<br />
<strong>the</strong> war in Iraq,” said Kim<br />
Shaw, president of Students<br />
United for Peace.<br />
Raed Jarrar and Jason<br />
Hurd will lead <strong>the</strong> program.<br />
Jarrar was born in Baghdad<br />
and spent most of his life in<br />
Iraq. He has lived in <strong>the</strong> U.S.<br />
since 2005 and has worked<br />
on many Iraq-related projects<br />
as a translator, interpreter,<br />
consultant and political<br />
analyst. Hurd is <strong>the</strong><br />
Sou<strong>the</strong>ast regional director<br />
of Iraq Veterans Against <strong>the</strong><br />
War.<br />
The tour is free and open<br />
to <strong>the</strong> public, but daytime<br />
parking is limited. For more<br />
information, call (706) 272-<br />
4469.<br />
Area arrests<br />
• M e d ic a l E q u ip m e n t , D iabe t ic S u pplie s<br />
A v a ilable<br />
• W e S t o c k H a r d - t o - F in d I t e m s<br />
• W e A cce p t M e d ic a id, A m e r iG r o u p<br />
P e a c h C a r e a n d W e llC a r e<br />
• W e M a t c h C omp e t it o rs’ P r ic e s<br />
• W e R e n t N e b u liz e rs<br />
M - F 9 a m - 7 p m , S a t . 9 a m - 2 p m<br />
C los e d S u n d a y<br />
1100 E . W a lnu t A v e . , S u i t e 1 7<br />
I n t he Valley P lace S hopping C ent e r<br />
some ingredient costs hit<br />
record highs in <strong>the</strong> summer,<br />
are leery of dropping <strong>the</strong>ir<br />
prices in case commodity<br />
costs come back up and pinch<br />
<strong>the</strong>ir profit margins. They say<br />
<strong>the</strong>y’re still catching up with<br />
last year’s costs, even as <strong>the</strong>y<br />
confront tougher competition<br />
from <strong>the</strong> retailers <strong>the</strong>y rely on<br />
to sell <strong>the</strong>ir products.<br />
Producers are making<br />
some changes that can provide<br />
relief to both consumers<br />
and retailers,said Frank Luby,<br />
a partner with Simon-Kucher<br />
and Partners who consults<br />
with companies on pricing.<br />
Some are changing package<br />
sizes, often shrinking<br />
<strong>the</strong>m while keeping prices<br />
steady so shoppers don’t pay<br />
more to remain with <strong>the</strong>ir<br />
favorite brands.<br />
But this tactic can make<br />
White House says economy<br />
is sound despite ‘mess’<br />
B Y P HILIP E LLIOTT<br />
Associated Press Writer<br />
WASHINGTON — The<br />
economy is fundamentally<br />
sound despite <strong>the</strong> temporary<br />
“mess” it’s in, <strong>the</strong> White<br />
House said Sunday in <strong>the</strong><br />
kind of upbeat assessment<br />
that Barack Obama had<br />
mocked as a presidential candidate.<br />
Obama’s Democratic<br />
allies pleaded for patience<br />
with an administration hitting<br />
<strong>the</strong> two-month mark this<br />
week, while Republicans<br />
said <strong>the</strong> White House’s plans<br />
ignore small business and <strong>the</strong><br />
immediate need to fix what<br />
ails <strong>the</strong> economy. After<br />
weeks projecting a dismal<br />
outlook on <strong>the</strong> economy,<br />
administration officials —<br />
led by <strong>the</strong> president himself<br />
in recent days — swung <strong>the</strong>ir<br />
rhetoric toward optimism in<br />
what became Wall Street’s<br />
best stretch since November.<br />
During <strong>the</strong> fall campaign,<br />
Obama relentlessly criticized<br />
his Republican opponent,<br />
Sen. John McCain, for<br />
declaring, “The fundamentals<br />
of our economy are strong.”<br />
Obama’s team painted <strong>the</strong><br />
veteran senator as out of<br />
touch and failing to grasp <strong>the</strong><br />
challenges facing <strong>the</strong> country.<br />
But on Sunday,that optimistic<br />
message came from<br />
economic adviser Christina<br />
Romer. When asked during<br />
an appearance on NBC’s<br />
“Meet <strong>the</strong> Press” if <strong>the</strong> fundamentals<br />
of <strong>the</strong> economy<br />
were sound, she replied: “Of<br />
course <strong>the</strong>y are sound.”<br />
“The fundamentals are<br />
sound in <strong>the</strong> sense that <strong>the</strong><br />
American workers are sound,<br />
we have a good capital stock,<br />
<strong>the</strong>m targets of <strong>the</strong>ir competitors<br />
— as ice cream maker<br />
Haagen-Dazs learned when it<br />
announced recently that it will<br />
shrink some of its containers.<br />
Rival Ben & Jerry’s, owned<br />
by Unilever, said on its Web<br />
site — without naming<br />
Haagen-Dazs outright — that<br />
consumers are hurting just<br />
like food makers and <strong>the</strong>y<br />
deserve a full pint of ice<br />
cream,not just 14 ounces.<br />
Ano<strong>the</strong>r change food companies<br />
are making is to focus<br />
promotions — which <strong>the</strong>y<br />
negotiate with grocers — on<br />
staples like dairy, cereal and<br />
soup, BMO Capital Markets<br />
analyst Kenneth Zaslow has<br />
said.<br />
Eggland’s Best Inc., <strong>the</strong><br />
nation’s largest branded egg<br />
company,is asking supermarkets,“If<br />
we give you so many<br />
we have good technology,”<br />
she said. “We know that —<br />
that temporarily we’re in a<br />
mess,right? We’ve seen huge<br />
job loss, we’ve seen very<br />
large falls in GDP. So certainly<br />
in <strong>the</strong> short run we’re in a<br />
— in a bad situation.”<br />
Just a week ago, White<br />
House Office of<br />
Management and Budget<br />
director Peter Orszag<br />
declared that “fundamentally,<br />
<strong>the</strong> economy is weak.” Days<br />
later, Obama told reporters<br />
he was confident in <strong>the</strong> economy.<br />
“If we are keeping<br />
focused on all <strong>the</strong> fundamentally<br />
sound aspects of our<br />
economy,all <strong>the</strong> outstanding<br />
companies, workers, all <strong>the</strong><br />
innovation and dynamism in<br />
this economy, <strong>the</strong>n we’re<br />
going to get through this,”<br />
Obama said, striking a tone<br />
that his top aides mimicked.<br />
Despite <strong>the</strong> new enthusiasm<br />
at <strong>the</strong> White House and<br />
on Wall Street, <strong>the</strong>re was little<br />
solid evidence to suggest<br />
an end was in sight to <strong>the</strong><br />
severe recession that has<br />
already cost 4 million<br />
American jobs, driven down<br />
home values and sent foreclosures<br />
soaring. Meanwhile,<br />
Chinese Premier Wen Jiabao<br />
said he was concerned about<br />
<strong>the</strong> safety of <strong>the</strong> estimated $1<br />
trillion his country has invested<br />
in U.S. government debt.<br />
Obama sought to downplay<br />
<strong>the</strong> worries.<br />
“There’s a reason why<br />
even in <strong>the</strong> midst of this economic<br />
crisis you’ve seen<br />
actual increases in investment<br />
flows here into <strong>the</strong><br />
United States,”Obama said<br />
Saturday in <strong>the</strong> Oval Office.<br />
“I think it’s a recognition that<br />
D o Y o u Hav e<br />
ALLERGIES?<br />
W e Hav e E ffe c t i v e T r e a t ment<br />
DaltonAllergy Clinic<br />
Dalton Ear Nose &Throat<br />
Dalton 706.226.2142<br />
Calhoun 706.629.5000<br />
AP FILE PHOTO<br />
Sean Meagher works on a vegetable display in <strong>the</strong> produce department of a<br />
Kroger store in Cincinnati in July of 2008.<br />
cents off, would you give that<br />
to <strong>the</strong> customer,” said Chief<br />
Executive Charlie Lanktree.<br />
At <strong>the</strong> same time, many<br />
retailers are increasing <strong>the</strong>ir<br />
promotions of house brands,<br />
Zaslow said.<br />
Some 64 percent of shoppers<br />
in 2008 said <strong>the</strong>y often or<br />
always buy a store brand<br />
ra<strong>the</strong>r than a national one,<br />
according to <strong>the</strong> Food<br />
Marketing Institute, an industry<br />
trade group. That’s up<br />
from 59 percent <strong>the</strong> prior year.<br />
Kroger Co., owner of<br />
Ralphs, Fred Meyer, Food 4<br />
Less and o<strong>the</strong>r chains in 31<br />
states, saw sales of its inhouse<br />
brands hit a record 27<br />
percent of total sales in <strong>the</strong><br />
most recent quarter.<br />
The company’s CEO,<br />
David Dillon, said after its<br />
most recent earnings report<br />
that Kroger is pushing producers<br />
back on prices. But he<br />
also said high pricing of<br />
national brands is helping<br />
bring customers to store<br />
brands — “so we are quite<br />
happy in ei<strong>the</strong>r scenario.”<br />
Food companies say <strong>the</strong>y<br />
are cooperating with retailers<br />
to <strong>the</strong> extent <strong>the</strong>y can.<br />
Both Kraft, maker of its<br />
eponymous macaroni and<br />
cheese and Jell-O, and<br />
General Mills expect <strong>the</strong>ir<br />
ingredient costs to remain<br />
volatile and nei<strong>the</strong>r is offering<br />
broad price cuts.<br />
Luby,<strong>the</strong> pricing consultant,said<br />
cost volatility is a big<br />
concern amid o<strong>the</strong>r variables,<br />
like weak consumer confidence<br />
and <strong>the</strong> stronger dollar,<br />
which has dragged down<br />
overseas sales by U.S. companies.<br />
“Every penny that I would<br />
want to roll back, I’d like to<br />
know what I’m going to get<br />
for it,”he said. “That’s a complicated<br />
question.”<br />
<strong>the</strong> stability not only of our<br />
economic system, but also<br />
our political system, is<br />
extraordinary.”<br />
The seesaw message from<br />
<strong>the</strong> new administration drew<br />
sharp criticism from Senate<br />
Republican leader Mitch<br />
McConnell, who said<br />
Obama’s team was exploiting<br />
<strong>the</strong> economic situation<br />
for political gain.<br />
“They’re taking advantage<br />
of a crisis in order to do<br />
things that had nothing to do<br />
with getting us into <strong>the</strong> crisis<br />
in <strong>the</strong> first place,”McConnell<br />
said.<br />
Democratic lawmakers<br />
promoted a potential plan to<br />
help move so-called toxic<br />
assets off bank ledgers. Rep.<br />
Barney Frank, D-Mass., said<br />
discussions were under way,<br />
but would not be rushed.<br />
“If <strong>the</strong>y wait a week or<br />
two more, no one ought to<br />
get all in a twitter about that.<br />
It’s very important to do it<br />
right,”he said.<br />
Also Sunday, <strong>the</strong> president’s<br />
team largely rejected<br />
suggestions that officials<br />
were considering taxing<br />
employees’ health benefits.<br />
As a candidate Obama had<br />
called such a proposal a<br />
“multitrillion-dollar tax<br />
hike.”<br />
“I’m not leaving <strong>the</strong> door<br />
open,”said Austan Goolsbee,<br />
a senior White House economist<br />
with a broad portfolio<br />
and a personal friendship<br />
with Obama, responding to a<br />
report in Sunday’s New York<br />
Times. “The president has<br />
laid out a series of clear principles<br />
on <strong>the</strong> health plan that<br />
we will do whatever it takes<br />
to get affordable quality coverage<br />
to all Americans.”<br />
Monday, March 16, 2009 5A<br />
B riefs<br />
Child porn probe<br />
nets 25 suspects<br />
ATLANTA — A<br />
roundup of child porn suspects<br />
continues in<br />
Georgia, with <strong>the</strong> latest<br />
arrests in Cobb County.<br />
That brings <strong>the</strong> total<br />
number of arrests to 25<br />
suspects in <strong>the</strong> Georgia<br />
Bureau of Investigation’s<br />
“Operation Shattered<br />
Innocence.”<br />
Police said 17-year-old<br />
Daniel Patrick Cohen, and<br />
24-year-old Justin Croy,<br />
both of Marietta, surrendered<br />
to authorities Friday,<br />
and each was charged with<br />
computer pornography.<br />
Outrage expressed<br />
on AIG bonuses<br />
WASHINGTON —<br />
Leaders of <strong>the</strong> White<br />
House economic team and<br />
<strong>the</strong> Senate’s top<br />
Republican bellowed about<br />
bonuses at a bailed-out<br />
insurance giant and<br />
pledged to prevent such<br />
payments in <strong>the</strong> future.<br />
On Sunday talk shows,<br />
<strong>the</strong>y tore into contracts that<br />
American International<br />
Group asserted had to be<br />
honored — about $165<br />
million and payable to<br />
executives by Sunday —<br />
part of a larger total payout<br />
reportedly valued at $450<br />
million. The company has<br />
received more than $170<br />
billion in a federal rescue.<br />
Bomb kills 4<br />
U.S. soldiers<br />
KABUL — A roadside<br />
bomb killed four American<br />
soldiers in eastern<br />
Afghanistan on Sunday —<br />
new evidence of rising violence<br />
in a region where<br />
clashes and attacks in <strong>the</strong><br />
first two months of 2009<br />
more than doubled from<br />
<strong>the</strong> same period a year ago.<br />
The spike in violence<br />
along <strong>the</strong> border is an<br />
early indication that roadside<br />
bombs and o<strong>the</strong>r<br />
ambushes are likely to<br />
surge as thousands of new<br />
U.S. forces arrive in<br />
Afghanistan this year.<br />
Cheney: U.S. is<br />
less safe now<br />
WASHINGTON (AP)<br />
— Former Vice President<br />
Dick Cheney said Sunday<br />
that Americans are less<br />
safe now that President<br />
Barack Obama has overturned<br />
Bush terrorismfighting<br />
policies and that<br />
nearly all <strong>the</strong> Republican<br />
administration’s goals in<br />
Iraq have been achieved.<br />
“There is no prospect”<br />
that Iraq will return to producing<br />
weapons of mass<br />
destruction or supporting<br />
terrorists,Cheney asserted,<br />
“as long as it’s a democratically<br />
governed country,as<br />
long as <strong>the</strong>y have got <strong>the</strong><br />
security forces <strong>the</strong>y do<br />
now and a relationship<br />
with <strong>the</strong> United States.”<br />
Associated Press<br />
Lifetime<br />
Investment!<br />
Kennedy<br />
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Mon.-Fri. 9a.m. -5:30 p.m.<br />
Sat. 9a.m. -3p.m.<br />
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