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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 />

JEWELRY<br />

2012 East Main St.<br />

(423) 629-4996<br />

Mon.-Fri. 9a.m. -5:30 p.m.<br />

Sat. 9a.m. -3p.m.<br />

(GIA) Graduate Gemologist on Staff<br />

www.kennedyjewelry.com

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