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AFMA - June 2013 - Arizona Food Marketing Alliance

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Presorted Standard<br />

U.S. Postage<br />

PAID<br />

San Dimas, CA<br />

Permit No. 410<br />

<strong>June</strong> <strong>2013</strong>


ARIZONA FOOD INDUSTRY<br />

JOURNAL<br />

JOURNAL<br />

JUNE <strong>2013</strong><br />

BOARD OF DIRECTORS<br />

OFFICERS<br />

Jim Tooms, IGW L.L.C. - Chairman<br />

Jeff Nelson, Co-Sales Company - 1st Vice Chairman<br />

Doug Sanders, Sprouts Farmers Market - 2nd Vice Chairman<br />

Edward “Trey” Basha, Bashas’- 3rd Vice Chairman<br />

Geoff Stickler, Express <strong>Food</strong>s – Treasurer<br />

DIRECTORS<br />

Frank Cannistra, Safeway<br />

Joe Cotroneo, Crescent Crown Distributing<br />

Shane Dorcheus, Albertsons L.L.C.<br />

Arnott Duncan, Duncan Family Farms<br />

Clint Hickman, Hickman’s Family Farms<br />

Ray Kruckner, 7-Eleven<br />

Ken Kuwahara, Fry’s <strong>Food</strong> Stores<br />

Mark Miller, Hensley<br />

Mitzi Montoya, ASU<br />

Don Olsen, Olsens IGA<br />

Rick Provenzano, Ranch Markets<br />

Todd Schlief, Nestlé DSD<br />

T.J. Shope, Shope’s IGA<br />

Bette Taylor, <strong>Food</strong>town IGA<br />

Tim Thomas, The <strong>Arizona</strong> Republic<br />

PRESIDENT - TIM MCCABE<br />

FEATURES<br />

CONTENTS<br />

Shamrock... Real. Fresh. Ideas. ..................................................................12<br />

Nestlé Waters Provides Superior Levels of Service ........................................16<br />

COLUMNS<br />

Around <strong>Arizona</strong> History ..........................................................................8<br />

www.commentary..................................................................................10<br />

DEPARTMENTS<br />

Industry & Government ............................................................................6<br />

WORTH A LOOK<br />

Bag Central Statiion ..................................................................................18<br />

Names in the News ..................................................................................20<br />

Day at the Capitol......................................................................................21<br />

Summer Golf Classic..............................................................................23-24<br />

<strong>AFMA</strong> STAFF<br />

Debbie Roth - General Manager<br />

Raynetta Hughes - Administrative Coordinator<br />

ACS STAFF<br />

Dan Tennessen - Director<br />

Greg Colyar - Field Agent<br />

Judy Lettow - Customer Care/Office Manager<br />

JOURNAL STAFF<br />

Debbie Roth - Editor<br />

Lisa Schnebly Heidinger - Feature Writer<br />

Jim Marshall - Photographer<br />

iMagdesign - Graphic Design<br />

Layton Printing - Printer<br />

ADVERTISERS<br />

Anheuser-Busch................................2<br />

<strong>Arizona</strong> Lottery................................5<br />

Blue Bunny....................................22<br />

Clear Channel ..............................22<br />

Coke ..............................................4<br />

Crescent Crown ............................19<br />

Dreyer’s........................................11<br />

MillerCoors ..................................21<br />

Shamrock ......................................9<br />

ARIZONA FOOD MARKETING ALLIANCE<br />

120 E. PIERCE ST., PHOENIX, AZ 85004<br />

602.252.9761 • FAX: 602.252.9021<br />

DROTH@<strong>AFMA</strong>AZ.ORG<br />

WWW.<strong>AFMA</strong>AZ.ORG<br />

ANNUAL SUBSCRIPTION $50<br />

ON THE COVER<br />

Left to Right:<br />

Pam Crist – Brand Manager<br />

Jim Yurek – Vice President of Dairy Sales<br />

Blake Atkinson – Brand Manager<br />

Sandy Kelly – Senior Director of <strong>Marketing</strong><br />

Mark Stroh – Director of Trade and Category Sales


INDUSTRY & GOVERNMENT<br />

…. a summary of the issues that affect your business.<br />

“Nearly all men can stand adversity, but if you want to test a man's character, give him power.”<br />

—Abraham Lincoln<br />

BEVERAGES: <strong>2013</strong><br />

Soft Drink Volume and Share Decline<br />

The U.S. liquid refreshment beverage market grew by 1 percent in<br />

2012, according to newly released preliminary data from Beverage<br />

<strong>Marketing</strong> Corp. This marks a third year of growth after two consecutive<br />

declining years. It also represents faster growth than occurred the year<br />

before. Total liquid refreshment beverage volume approached 29.8 billion<br />

gallons in 2012.<br />

Carbonated soft drinks remained by far the biggest category, but lost both<br />

volume and market share during 2012. Volume slipped by 1.8 percent from<br />

13.6 billion gallons in 2011 to 13.3 billion gallons in 2012, which lowered their<br />

market share to less than 45 percent. While the segment faltered, certain soda<br />

trademarks, such as Coke Zero and Dr. Pepper, did achieve growth. According<br />

to published reports, the soda industry has seen declines since 2005, but<br />

2012’s soda consumption figures represent a 26-year low.<br />

Reports speculate that soda’s decline stems from health advocates,<br />

who point to soda as a cause of the obesity epidemic. Soda companies<br />

won’t be discouraged, though, as The Coca-Cola Co. has jumped into the<br />

obesity debate with ads that tout the company’s efforts in improving its<br />

products. In its “Coming Together” commercial, the Atlanta-based<br />

company emphasizes its philosophy of bringing people together and then<br />

claims it has reduced calories per serving in its drinks by an average of 22<br />

percent due to smaller pack sizes and low- and no-calorie versions of its<br />

drinks. A statement that “all calories count” ends the commercial,<br />

suggesting that all industries and consumers share the blame for obesity.<br />

However, reactions from New York Mayor Michael Bloomberg’s recent<br />

attempt to ban large sodas at restaurants—backed by some media voices,<br />

such as CNN’s opinion piece, “Banning Large Sodas is Legal and<br />

Smart”—have overshadowed the industry’s efforts to ease concerns over<br />

sugar content. Negative attention from health and wellness organizations—<br />

like the Harvard School of Public Health saying the drinks cause kidney<br />

damage and cancer in addition to obesity—probably won’t help the<br />

industry’s <strong>2013</strong> figures either.<br />

Other segments show growth<br />

Premium beverages, such as ready–to–drink (RTD) tea, coffee and<br />

energy drinks, advanced during 2012. Energy drinks moved forward faster<br />

than all other segments with a 14.3 percent volume increase in 2012, even<br />

though the segment is a relatively small share of the industry. The only<br />

liquid refreshment beverage types with smaller shares of volume were RTD<br />

coffee, which charted the second fastest surge, growing by 9.5 percent, and<br />

value-added water, which contracted.<br />

RTD tea grew by nearly 5 percent in 2012.<br />

“Beverages showed gathering strength in 2012,” said Michael C.<br />

Bellas, chairman and CEO of Beverage <strong>Marketing</strong> Corp. “While an<br />

improving economy remains the key impetus for beverage category success,<br />

the vitality of premium products like energy drinks and RTD coffee shows<br />

that Americans’ thirst for both functional and fun products is strong.”<br />

New York City–based Beverage <strong>Marketing</strong> Corp. is the leading<br />

research, consulting and financial services firm dedicated to the global<br />

beverage industry.<br />

Coffee consumption increasing<br />

More Americans are turning to coffee than in previous years,<br />

according to a report from the Drinks Business Review. A market research<br />

study by the National Coffee Association found that coffee consumption<br />

increased by 5 percent from the previous year.<br />

Daily consumption has not changed and stays at 63 percent, but those<br />

reporting drinking coffee at least once a week increased to 75 percent, the<br />

report says.<br />

Thirteen percent of the U.S. population drinks coffee from a<br />

single-cup brewer, while drip coffee use has decreased from 43 percent<br />

to 37 percent.<br />

The study also found that those in the 18-39 age bracket drink more<br />

espresso-based drinks than seniors 60 and older, but consumption by the<br />

youngest participants (18-24) declined nine percentage points to 41<br />

percent, while consumption for seniors 60 and older rose five percentage<br />

points to 76 percent, the report says.<br />

NORTH AMERICAN POS MARKET<br />

REACHES $2B<br />

Almost three in 10 (28%) of North American retailers plan to adopt<br />

mobile POS technology by the end of the year, according to a new study<br />

from IHL Group.<br />

Results of “Mobile POS: Hype to Reality” also indicate that 45% of all<br />

tablet POS shipments go to specialty retailers, mobile POS solutions will<br />

cannibalize about 12% of traditional retail POS shipments by 2016 and more<br />

than 85% of larger retailers say that in the next three years mobile POS<br />

systems will complement, rather than replace, traditional POS systems.<br />

The study also indicates that 33% of retailers are not planning to<br />

deploy mobile POS technology in the next three years.<br />

“The vast majority of retailers are taking a slow and methodical<br />

approach to the use of mobile for POS,” said Greg Buzek, president, IHL<br />

Group. “There are key operational issues in device and merchandise<br />

security, cash handling, payments, bags, customer service levels and traffic<br />

flow that must be worked through or the use of the devices will be<br />

disruptive in a negative way for retailers."<br />

FOOD RETAILERS MARK BETTER<br />

BIZ LANDSCAPE<br />

Sixty percent of food retailers experienced higher customer counts<br />

and 46 percent saw stronger transaction sizes in fiscal 2012 versus the prior<br />

year, a new <strong>Food</strong> <strong>Marketing</strong> Institute (FMI) financial and business review<br />

survey has found. For <strong>2013</strong>, food retailers remain upbeat, with 58 percent<br />

Page 6 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong>


expecting business conditions to get better and 64 percent anticipating that<br />

the average shopping basket will continue to grow.<br />

Conducted by San Antonio-based 210 Analytics, LLC, the <strong>Food</strong><br />

Retailing and Financial Business Review Survey contains a financial<br />

review of fiscal 2012, a business environment and operational review for<br />

2012 and <strong>2013</strong>, and shrink metrics and reporting. <strong>Food</strong> retailers’<br />

confidence in the business environment and their financial performance<br />

paralleled the slow but steady improvements across such key economic<br />

indicators as the gross domestic product, unemployment rates and the<br />

consumer confidence index.<br />

The survey delved into the issues of food retail staffing, salaries and<br />

benefits, health care costs and reform, and operational shrink. Among the<br />

key findings:<br />

● Staffing: The vast majority of survey respondents are adding or<br />

maintaining corporate and store associate levels, after several years of staff<br />

reductions. The <strong>2013</strong> outlook is for greater levels of hiring and even less<br />

staff reduction.<br />

● Salaries and Benefits: Nearly two-thirds of respondents raised<br />

hourly pay in 2012, and 74 percent gave raises for salaried associates.<br />

Retailers maintained the status quo on most benefits, with employee<br />

training being the most likely area of higher budget allocations.<br />

● Health Care Costs and Reform: With costs rising year-over-year<br />

for the majority of retailers, 77 percent of respondents said they needed to<br />

pass along part of the cost increases to employees. In regard to the impact<br />

of health care reform legislation, 88 percent said it will hike up health care<br />

costs in <strong>2013</strong>, and 96 percent believed it will further raise expenses in 2014.<br />

According to the survey, the most common actions taken to control health<br />

care coverage costs are encouraging healthy lifestyles and introducing plan<br />

modifications to lower costs.<br />

● Operational Shrink: While best-of-class retailers averaged 1.2<br />

percent total store shrink, the average among all respondents was 2.9<br />

percent. Better tracking, analysis and reporting were the top ways that<br />

retailers said they were able to lower shrink.<br />

D.C. CIRCUIT COURT OF APPEALS STRIKES<br />

DOWN NLRB’S POSTER RULE<br />

The United States Court of Appeals for the D.C. Circuit held that the<br />

National Labor Relations Board (NLRB) rule requiring employers to post<br />

notices regarding employees’ right to unionize was invalid.<br />

Many of you will recall that back in 2011, the NLRB issued a rule<br />

requiring nearly all private employers (union or non-union) to post an<br />

NLRB-designated notice informing employees of their right to unionize<br />

under Section 7 of the National Labor Relations Act (NLRA). This<br />

requirement was held to be invalid by a South Carolina federal district court<br />

last year, and the NLRB has been prevented from implementing this rule<br />

pending the outcome of that appeal, which currently is pending in the<br />

Fourth Circuit Court of Appeals.<br />

In the decision, National Association of Manufacturers v. N.L.R.B.,<br />

the D.C. Circuit also held that the NLRB could not through its rulemaking<br />

authority require employers to post this notice. The court reasoned that<br />

employers have a constitutional right to engage in speech about<br />

unionization, provided that it is not coercive or threatening. This First<br />

Amendment right is echoed in Section 8(c) of the NLRA, which<br />

precludes the NLRB from finding such non-coercive speech to be an<br />

unfair labor practice or evidence of an unfair labor practice. The court<br />

held that these rights include the right to decide not to disseminate such<br />

speech, and, therefore, the NLRB could not require employers to post<br />

right-to-unionize notices.<br />

It is anticipated that the NLRB will appeal this decision to the U.S.<br />

Supreme Court. But, for now, you can keep the NLRB “Notice of Rights”<br />

poster resting comfortably in a file drawer. (Note that federal contractors<br />

are still required to post a similar Department of Labor “Notice of Rights”<br />

poster which was issued by that agency back in May of 2010.)<br />

NEW RULES FOR LABELING MEAT GO<br />

INTO EFFECT IN U.S.<br />

Shoppers in the U.S. will soon have more information about where<br />

their meat comes from after new federal labeling rules went into effect.<br />

The rules require labels on steaks, ribs and other cuts of meat to say<br />

where the animal was born, raised and slaughtered. Earlier U.S.<br />

Department of Agriculture rules only required that countries of origin to<br />

be noted, so a package might say "Produce of U.S. and Canada." Now, the<br />

label will specify "Born in Canada, raised and slaughtered in the<br />

United States."<br />

The new rules apply only to cuts of meat such as steaks and roasts,<br />

not to ground meat.<br />

The USDA has required country of origin labels on seafood since<br />

2005 and on meat and other products since 2009. The new rules for meat<br />

are meant to bring the U.S. in line with World Trade Organization<br />

standards after the organization determined the old labels discriminated<br />

against livestock imported from Canada and Mexico.<br />

President Barack Obama's administration had asked the meat<br />

industry in 2009 to voluntarily provide the additional information on<br />

labels. The new requirements come after the WTO's appeals body in <strong>June</strong><br />

upheld the organization's earlier decision.<br />

The meat industry and grocery stores have protested the changes,<br />

saying they are a hassle and could lead to higher prices. The National<br />

Grocers Association issued a statement expressing its "strong frustration"<br />

over what it sees as “unnecessary" regulation.<br />

"The costs of this new change will far exceed the benefits intended<br />

and will result in no meaningful consumer benefits," the group's<br />

president and CEO, Peter Larkin, said in a statement. "Congress must<br />

take action now and create a legislative fix."<br />

The USDA estimates the labeling change will cost somewhere<br />

between $53.1 million and $192.1 million to put in place. The National<br />

Grocers Association said it expected it to cost at least $100 million as<br />

companies buy new signs, labels and labeling machines.<br />

Cargill, one of the nation's largest meatpackers, protested the rules<br />

in a letter sent previously to the USDA. It said the U.S. is heavily<br />

dependent on cattle born elsewhere but sent to feedlots and<br />

slaughterhouses here, and that was more true after last year's drought<br />

dropped the U.S. herd to its lowest level in decades.<br />

Cargill said it had already idled a meatpacking plant in Texas<br />

because too few cattle were available and the problem would only get<br />

worse as imported cattle became less attractive to companies seeking to<br />

avoid the need for multiple labels.<br />

The National Cattlemen's Beef Association said it didn't think the<br />

rules would satisfy Canada and Mexico, the nation's top trading partners,<br />

and it feared retaliation with taxes or other restrictions on U.S. beef.<br />

"While trying to make an untenable mandate fit with our<br />

international trade obligations, USDA chose to set up U.S. cattle producers<br />

for financial losses," the association said in a statement. "Moreover, this<br />

rule will place a greater record-keeping burden on producers, feeders and<br />

processors through the born, raised and harvested label."<br />

The rules have had support from other farmers' organizations, along<br />

with consumer and environmental groups. Nearly 230 signed an April<br />

letter to Agriculture Secretary Tom Vilsack, including the National<br />

Farmers Union, U.S. Cattlemen's Association and Center for <strong>Food</strong> Safety.<br />

The National Farmers Union issued a statement Thursday praising<br />

the Obama administration for "providing more information on the origins<br />

of our food, instead of simply watering down the process."<br />

"Consumers want and have the right to know where their food comes<br />

from," it added.<br />

The new labels will begin showing up gradually in grocery stores.<br />

Meat processed or packaged before Thursday can still be sold with older<br />

labels, and the USDA is allowing meat companies to use up any of the<br />

older labels they already had printed.<br />

●<br />

<strong>June</strong> <strong>2013</strong> • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • Page 7


Around <strong>Arizona</strong> History<br />

“You need your food, you need your water, and you need your history!”<br />

A Profile History of Dairy Farming<br />

By Jack L. August, Ph.D.<br />

I<br />

n the United States, dairy products have a deep and rooted place in the retail<br />

food industry. Today, the top five dairy states are, in order by total milk<br />

production; California, Wisconsin, Idaho, New York, Michigan, and<br />

Pennsylvania. For example, Pennsylvania, the nation’s fifth largest producer, has<br />

8,500 farms with 555,000 dairy cows, yielding annual revenues of about$1.5<br />

billion. Herd size in the US varies between 1,200 on the West Coast and<br />

Southwest, where large farms are commonplace, to roughly 50 in the Northeast,<br />

where land-base is a significant limiting factor to herd size. The average herd<br />

size in the U.S. is about one hundred cows per farm.<br />

For centuries<br />

dairy farming has been a<br />

small part of diverse<br />

farming operations. In<br />

the last century larger<br />

farms specializing in<br />

dairy production<br />

emerged. The<br />

development of dairy farming-only operations took place where either a large<br />

amount of milk was required for production of more durable dairy products, like<br />

cheese and butter, or where there existed a substantial market of people with<br />

cash to buy milk, but no cows of their own.<br />

Historically, centralized dairy farming developed around villages and<br />

cities, where residents were unable to have cows of their own due to a lack of<br />

grazing land. Farmers made extra money by having additional animals and<br />

selling the milk in town. Typically dairy farmers filled barrels with milk in the<br />

morning and brought it to market on a wagon. Until the late 19th century<br />

milking was done by hand. In the United States, however, several large dairy<br />

operations existed in some northeastern states and in the west that involved as<br />

many as several hundred cows, but an individual milker could not be expected<br />

to milk more than a dozen cows a day. In effect, until the twentieth century<br />

smaller operations predominated.<br />

The earliest milking machines were extensions of the traditional milking<br />

pail. These earliest devices fit on top of a regular milk pail and sat on the floor<br />

beneath the cow. After a cow was milked, the bucket would be dumped into a<br />

holding tank. This developed into what was called the Surge hanging milker.<br />

Prior to milking a cow, a large wide leather strap called a surcingle was put<br />

around the cow, across its lower back. The milker device and collection tank<br />

hung underneath the cow from the strap. This innovation allowed the cow to<br />

move around naturally during the milking process.<br />

Two more inventions helped revolutionize the milking process. The first of<br />

these, the milk pipeline, featured a permanent milk-return pipe and a second vacuum<br />

pipe that encircled the barn or milking parlor above the rows of cows, with quickseal<br />

entry ports above each cow. By eliminating the need for the milk container, the<br />

milking device shrank in size and weight to the point where it could<br />

hang under the cow. The milk was pulled up into the milk-return<br />

pipe by the vacuum system, and then flowed by gravity to the milk<br />

house vacuum-breaker that put the milk in the storage tank.<br />

The pipeline system greatly reduced the physical labor of<br />

milking since the farmer no longer needed to carry around huge<br />

heavy buckets of milk from each cow. Moreover, the pipeline<br />

allowed barn length to keep increasing and expanding, but after a<br />

point farmers started to milk the cows in large groups, filling the<br />

barn with one-half to one-third of the herd, milking the animals, and<br />

then emptying and refilling the barn. As herd sizes continued to<br />

increase, this dairy farm institution evolved into the more efficient<br />

milking parlor.<br />

Page 8 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong><br />

The other innovation in<br />

milking focused on mechanizing<br />

the milking parlor to<br />

maximize the number of cows<br />

per operator. This further<br />

streamlined the milking process to permit cows to be milked as if on an assembly<br />

line, and to reduce physical stress on the farmer by putting the cows on a<br />

platform slightly above the person milking the cows. In the 1980s and 1990s,<br />

robotic milking systems were developed and introduced in the United States and<br />

throughout Europe. Thousands of these systems are now in operation and in<br />

these systems the cow has a high degree of autonomy to choose her time of<br />

milking. These systems are generally limited to intensively managed systems<br />

although research continues to match them to the requirements of grazing cattle<br />

and to develop sensors to detect animal health and fertility automatically.<br />

Other technological innovations were essential in the history of dairy<br />

product production. When windmills and well pumps were invented, one of its<br />

first uses on the farm--besides providing water for animals--was for cooling<br />

milk, to extend the storage life before being transported to the town market. And,<br />

when refrigeration first arrived in the 19th century the equipment was initially<br />

used to cool cans of milk. Soon, “Ice banks” appeared; a type of bulk milk<br />

cooler. This was a double wall vessel with evaporator coils and water located<br />

between the walls at the bottom and sides of the tank. A small refrigeration<br />

compressor was used to remove heat from the evaporator coils. Ice eventually<br />

built up around the coils, until it reached a thickness of about three inches<br />

surrounding each pipe, and then the cooling system shut down.<br />

This cooling method worked well for smaller dairies. It was, however, fairly<br />

inefficient and was unable to meet the increasingly higher cooling demand of<br />

larger milking parlors. In the mid-1950s direct expansion refrigeration was first<br />

applied directly to the bulk milk cooler. This type of cooling utilized an evaporator<br />

built directly into the inner wall of the storage tank to remove heat from the milk.<br />

Direct expansion was able to cool milk at a much faster rate than early ice bank<br />

type coolers and is still the primary method for bulk tank cooling today.<br />

Today, there are 65,000 dairy farms in the United States. In <strong>Arizona</strong><br />

producers provide enough product, not only for the state’s growing market, but<br />

also for retailers beyond the state’s borders. In fact dairies are <strong>Arizona</strong>’s highest<br />

grossing agricultural sector. Current revenue from the state's dairy industry<br />

totals about $871 million annually. Approximately 177,000 milk cows work in<br />

about 180 dairies across the state. Like farms and cattle ranches many of these<br />

are family owned. <strong>Arizona</strong> is ranked number twelve in the nation for milk<br />

production. In 2012, <strong>Arizona</strong> cows produced almost 400 million pounds of milk<br />

for cheese, yogurt, ice cream, and other dairy products for a global market. This<br />

important sector of our agricultural economy will continue to grow and<br />

doubtlessly remain one of the bulwarks of the retail food industry. ●<br />

Dr. Jack L. August, Jr. is a Visiting Scholar in Legal History at Snell & Wilmer L.L.P. He<br />

is a former Fulbright Scholar, National Endowment for the Humanities Research Fellow, and<br />

Pulitzer Prize nominee for his volume, Vision in the Desert: Carl Hayden and Hydropolitics<br />

in the American Southwest (Ft. Worth: TCU Press, 1999). Dr. August is the author of numerous<br />

books on the history of the New American West and has taught at the University of Houston,<br />

University of North British Columbia, and Northern <strong>Arizona</strong> University where his courses<br />

focused on the American West and environmental history.


www.commentary<br />

By Phil Hawkes<br />

I am in a pickle!<br />

I want to write about pickles, but there is so<br />

much information about them, I don’t know where<br />

to start. As you probably know, being in a pickle means<br />

you’re in a quandary, a dilemma or some other difficult<br />

situation. Shakespeare actually wrote about someone in a pickle<br />

around 1610 in The Tempest. The character Trinculo says, “ I have been<br />

in such a pickle since I saw you last…” But why “in a pickle,” you ask Well it<br />

has to do with the similarity to the situation a cucumber finds itself in when it’s<br />

submerged in salt and vinegar solution and mixed up with spices and then<br />

marinates and ferments into a pickle.<br />

Pickles go back a lot further than Shakespeare’s time. The Mesopotamians<br />

were making pickles in 250 B.C. Not sure how they know that, but it is safe to say<br />

that pickling was invented more to preserve food than it was to have something to<br />

go with a sandwich. Pickles have played a role throughout history. Columbus<br />

credited part of the reason for the success of his 1492 voyage to the pickles he<br />

rationed to his crew to prevent scurvy. He actually grew cucumbers in Haiti so he<br />

would have a new supply of pickles for the trip back to Europe. The fellow who<br />

named the place Columbus discovered was Amerigo Vespucci. He made his<br />

fortune as a pickle merchant. Napoleon offered a reward for whoever came up<br />

with the best pickles and pickling process for his armies. And during WWII, 40<br />

percent of the entire pickle production went to the ration kits of U.S. armed forces.<br />

There are three prominent pickle varieties. The sweet pickle is aptly named.<br />

One of the most popular sweet pickle types, though, bread and butter pickle slices<br />

has nothing to do with either bread or butter. Dill pickles are twice as popular as<br />

sweet pickles. And dill pickles have a number of different styles and flavors, like<br />

kosher, genuine and polish varieties. Americans like their pickles with those little<br />

bumps on them. They are referred to as warts in the pickle business. I don’t think<br />

that’s such a good choice of words. Europeans like their pickles to be smooth on<br />

the outside. Pickles are generally thought of as a vegetable, but they are<br />

technically a fruit, as they come from a vine. More than half of the cucumbers<br />

grown in the United States are made in to pickles. And we Americans like our<br />

pickles, as we consume an average of 9 pounds of them each year. And<br />

considering that pickles have no fat and are low in calories, we can eat even more<br />

and not feel guilty about it.<br />

There are big brands of pickles, like Vlasic and Heinz that are in every<br />

supermarket in the country. There are numerous small, cottage industry pickle<br />

producers in practically every state. I can’t figure out why they all personalize<br />

their pickle brands. A few examples include:<br />

● Miss Jenny’s Pickles in North Carolina missjennyspickles.com<br />

● Rick’s Pickles in New York rickspicks.com<br />

● Britt’s Pickles in Washington brittsliveculturefoods.com<br />

● Wickle’s Pickles in Alabama wicklespickles.com<br />

● Grillo’s Pickles in Connecticut grillospickles.com<br />

● Emmy’s Pickles and Jams in California emmyspicklesandjams.com<br />

● McClure’s Pickles in Michigan and New York mcclurespickles.com<br />

● Mickle’s Pickles in Massachusetts micklespickles.com<br />

● Perkin’s Pickles in Michigan perkinspickles.com<br />

● Spacey Tracy’s Pickles in New York spaceytracypickles.com<br />

● Gordy’s Pickles in Washington D.C. gordyspicklejar.com<br />

● Lynnaes’ Gourmet Pickles in Washington lynnaesgourmetpickles.com<br />

● Horman’s Pickles in New York hormansbestpickles.com<br />

● Horman’s lives by the “picklosophy”…I think therefore I pickle.<br />

There are four pickle facts and uses that you’ll be glad<br />

you learned here:<br />

1 - There are a number of things you can do with the leftover pickle juice in<br />

the jar when the pickles are gone. Think of it as being green in a new way…<br />

recycling pickle juice! It makes an excellent marinade. Put pickle juice in your<br />

favorite BBQ sauce. It adds tanginess. Mix some pickle juice with the<br />

mayonnaise that goes in your potato salad…yum. On the non-consumable side,<br />

pickle juice will remove coffee stains from the bottom of cups. And pickle juice<br />

is effective at killing weeds in the cracks of paving stones and sidewalks.<br />

2 - Atheletes have been known to drink pickle juice to prevent muscle<br />

cramps. The Philadelphia Eagles credited drinking pickle juice with helping them<br />

win a game in sweltering heat.<br />

3 - During the 1893 Chicago World’s Fair, Mr. H.J. Heinz used pickle<br />

shaped pins (above) to advertise his pickle brand. He gave out 1,000,000 pickle<br />

pins!<br />

4 - The popularity of Kool-Aid pickles is going virile. Empty the pickle<br />

juice from a 32 jar of whole dill pickles in to a bowl. Mix in ½ cup of sugar and<br />

two packages of Kool-Aid. Either cut in half, lengthwise or slice the pickles. Put<br />

pickles and juice mixture back in the jar and put in the refrigerator for one week.<br />

Kids love them!<br />

Lastly, two more pickle things: Next time you go to a baseball game, I hope<br />

you get to witness the perfect example of being in a pickle. In fact, the play is<br />

called a pickle. It’s when a base runner gets caught between two bases and the<br />

defenders are closing in on him by tossing the ball back and forth. And for the<br />

record, the best pickles anywhere are Bubbie’s Kosher Dill Pickles (bubbies.com)<br />

from San Francisco. They are available in most supermarkets.<br />

funtrivia.com<br />

pickleguys.com<br />

tidbitfun.com<br />

mentalfloss.com<br />

foodreference.com<br />

phrases.org<br />

●<br />

Page 10 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong>


Shamrock... Real. Fresh. Ideas.<br />

By Lisa Schnebly Heidinger<br />

After thirteen years at<br />

Shamrock Farms, Senior<br />

Director of <strong>Marketing</strong> Sandy<br />

Kelly says she still thinks of<br />

herself as a newbie.<br />

That’s because so<br />

many associates of this<br />

family-owned company –<br />

one of the largest familyowned<br />

and –operated dairies<br />

in the nation – have been<br />

there for 20, 30, even 40<br />

years…more than 250 of<br />

them.<br />

Sandy, a vivacious blonde with an easygoing manner, fairly beams<br />

talking about Shamrock. (She explains that Shamrock Farms, the dairy<br />

business, and Shamrock <strong>Food</strong>s, the foodservice distribution company, are<br />

under the umbrella of Shamrock <strong>Food</strong>s Company.) Ever since she was a<br />

little girl she’s known she wanted to be involved in advertising. And she<br />

says her work at Shamrock involves so much more.<br />

“From as far back as I can remember I would watch ads on TV and<br />

critique them. I’ve always known my passion. I’m so lucky to be at<br />

Shamrock, because here we get to do not just great advertising, but we get<br />

to drive product development and all areas of the marketing mix.”<br />

As a family-owned business, Shamrock gets to be as innovative, as<br />

bold, as creative as the management decides without slogging through<br />

shareholders’ timetables. This means Chairman of the Board Norman<br />

McClelland, and his son, Chief Executive Officer Kent McClelland,<br />

continue to do what Shamrock’s founder (Norman’s father, Kent’s<br />

grandfather) W.T. McClelland did: figure out what customers want, and do<br />

the best job providing it.<br />

Shamrock turned 90 years old last year -- Kelly says work has<br />

already begun on the centennial. The company is a fascinating hybrid: a<br />

Feature writer, Lisa Schnebly Heidinger<br />

interviews Sandy Kelly,<br />

Senior Director of <strong>Marketing</strong>.<br />

very traditional, familybased,<br />

caring and<br />

cooperative workplace—<br />

and<br />

an aggressive, innovative,<br />

high-tech and sustainability-focused<br />

powerhouse.<br />

On the family side,<br />

Sandy says, associates<br />

really feel like part of an<br />

extended clan whose<br />

members look out for one<br />

another. “Norman’s motto<br />

is to treat employees like family, and customers like friends. And I know<br />

people can use words like ‘family’ any- where, but people come here and<br />

they stay. They really find a home. That’s driven by the family.”<br />

Which by no means implies that the company is a folksy oldfashioned<br />

business doing things just the way grandpa did them. Few<br />

corporations are as innovative, as restless in the search for making<br />

everything already good even better. Shamrock’s Extended Shelf Life<br />

technology brought a new age to the entire dairy industry. “ESL basically<br />

means bringing the milk to a higher temperature and packaging it<br />

differently,” says Sandy. “It can stay fresh for up to 100 days.” The ESL<br />

packages are for smaller portions than a family-size jug, which reframes<br />

when people enjoy milk.<br />

Basically, it lets people see milk as playing a different role in family<br />

life. Not only poured into glasses at the breakfast table, but tossed into a<br />

school lunch, picked up at a convenience store, and available at fast food<br />

restaurants nationwide. (SUBWAY®, Arby’s and Einstein Brothers are a<br />

few of them.)<br />

Shamrock doesn’t stop there. As a member of the Milk Processors<br />

Education Program board, (famed milk mustache Got Milk Campaign),<br />

Sandy says she’s glad that her employer is constantly thinking about how<br />

Page 12 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong>


to make dairy a bigger part of daily life for all type of customer.<br />

One of the products she’s most excited about is Rockin’ Refuel, which<br />

is a line of protein-fortified milk beverages. Sandy explains that in our<br />

increasingly health-conscious world, this product makes perfect sense. And<br />

who would ever have thought that chocolate milk, the guilty pleasure of<br />

dairy consumers everywhere, would be vaunted as the best choice<br />

“New science about chocolate milk shows it to restore glycogen in<br />

muscles, rebuilt after tearing them down in a workout. This is the most<br />

innovative product we have at a national level right now. Milk already has<br />

protein, and calcium, so it made perfect sense.”<br />

This, then, is a sports drink without the empty calories or high number<br />

of chemicals found in soft drinks or energy drinks. With 20 grams of<br />

protein, Rockin’ Refuel creates the perfect protein-to-carbohydrate formula<br />

determined by nutrition specialists for optimum muscle recovery. By<br />

making milk part of a muscle-building beverage, and one that’s handy to<br />

grab, quick to drink, and in flavors even young athletes love, milk is as<br />

much at home at the gym as it is on a supper table. (Author’s note: bottles<br />

of chocolate, vanilla and strawberry Rockin’ Refuel brought home from the<br />

grocery the day following Sandy’s interview for an 18-year-old son<br />

disappeared that same day.)<br />

Sandy says an even leaner version of Rockin’ Refuel is headed for the<br />

shelves, with 150 calories and 20 grams of protein. People who want to be<br />

in amazing shape not only don’t have to give up dairy, but also can improve<br />

by including it in their nutrition plan. There are sugar-free options as well.<br />

Shamrock seems to have gone from a local company to a national<br />

leader without visible growing pains. Take Roxie the cow, named in 1994<br />

“She has an office,” jokes Sandy. Roxie does public appearances, is part of<br />

the Shamrock logo (on Sandy’s polo shirt) and even got her own Super<br />

Bowl commercial two years ago. Now that’s a high profile.<br />

Another key testament to the ease of growing is the wonderful retailers<br />

Shamrock collaborates with on introducing new products and promoting<br />

dairy overall. Building strong relationships here in <strong>Arizona</strong> has provided<br />

Shamrock a great foundation on how to expand nationally into new markets<br />

by creating successful retail partnerships, which is key with any new<br />

product launches.<br />

Back to the logo. Under Roxie are three words: “Real. Fresh. Ideas.”<br />

This sums up Shamrock’s commitment to associates and consumers alike.<br />

“Real” means genuine, sincere; a good start for a corporation that gave<br />

to more than 80 non-profit entities last year, and contributes more than<br />

80,000 pounds of food to local food banks. “Fresh” means dedication to<br />

safety, ensuring that every product bearing the Shamrock label is both tasty<br />

and nutritious, never compromised. It also means quality and with<br />

Shamrock owning and running its own farm and processing plant, top notch<br />

quality and above state standards and regulations are executed to ensure<br />

their products are the very best. “Ideas” keep coming, putting the company<br />

on the leading edge of innovation across the country.<br />

In fact, it is across the United States that one of Shamrock’s newest<br />

ideas is taking shape. A manufacturing facility under construction in<br />

Virginia will let Shamrock meet the demands of single serve mmmmilk<br />

distribution for consumers all over the country. In fact, because of their<br />

relentless and talented sales force, operations team and marketing<br />

department, you can now find Shamrock products in retailers, colleges,<br />

schools, foodservice establishments and more!<br />

Sandy says the Virginia Shamrock Farms facility will feature the<br />

ESL technology. “We needed more capacity, dual manufacturing<br />

capabilities to support the growing business of the single-serve bottle,<br />

and in a place that best serves national needs. So now we have a great<br />

facility here, and on the east coast.”<br />

As a good new neighbor would do, it’s donating Rockin’ Refuel to local<br />

high school athletic teams. On that note, Sandy says Rockin’ Refuel and<br />

mmmmilk in easy-to-carry bottles are on the menus at all three state universities.<br />

And the four ‘m’s in milk Just one more way Shamrock is constantly<br />

and enthusiastically sharing the love of dairy products with the public. The<br />

new, smaller containers represent a shift in the way consumers think of<br />

milk: no longer the bulky gallon jug in the refrigerator door shelf, but the<br />

same way a bottle of water, or an aluminum can of soda can be taken<br />

anywhere. Because of the national awareness of health and nutrition,<br />

Shamrock seems to have timed it perfectly.<br />

Another way Shamrock invites people to appreciate dairy products<br />

more is by touring the Stanfield Shamrock Farms. Many Tucson<br />

schoolchildren fondly recall field trips to the original Shamrock Dairy<br />

there. After the dairy cattle operation moved to just outside Maricopa in<br />

Stanfield, public and schoolchildren were once again invited to see where<br />

milk comes from before it reaches grocery cases.<br />

It’s a great blend of down-on-the-farm old-fashioned fun and<br />

education, which charms thousands of visitors every year. As soon as you<br />

board the spotted cow train, you know this tour has entertainment in mind.<br />

From the big red barn to the 10,000 cows waiting to meet visitors, the<br />

Shamrock Farms tour guides aim to please. Then there’s the 20-foot milk<br />

bottle, a maze, and a cottage cheese slide. Picnic area, snack bar, and<br />

special appearances by Roxie during special events (called the “Dairy<br />

Godmother” with a wooden spoon instead of a wand) the beloved mascot,<br />

adds to a festive experience. In addition, Shamrock has teachers’ guides on<br />

the web and downloadable lesson plans to incorporate nutrition,<br />

sustainability and agriculture into curriculum.<br />

Back to inventing new products, Sandy says coming out this summer<br />

is a line of flavored sour creams. “My favorite is the zesty jalapeño; it’s not<br />

too spicy, but it really adds to Taco Tuesday. Then we have a creamy ranch<br />

that kids can use for dip with crackers, or vegetables. And there’s a French<br />

onion. That’s always the most popular flavor. They’re all real sour cream,<br />

and all amazing.” The idea is to encourage people “dip it, mix it, top it.”<br />

Sandy’s team is already planning some tailgate events at ASU in August<br />

with the latest additions to the Shamrock Farms family.<br />

“On the family side,<br />

Sandy says, associates<br />

really feel like part of an<br />

extended clan whose<br />

members look out for one<br />

another. “Norman’s motto<br />

is to treat employees like<br />

family, and customers like<br />

friends.<br />

”<br />

Sandy Kelly,<br />

Senior Director of <strong>Marketing</strong><br />

Shamrock Farms<br />

All these things fall under the Shamrock Farms side of the business.<br />

What about Shamrock <strong>Food</strong>s That’s the foodservice distributor, which<br />

delivers products to restaurants, businesses, hospitals, foodservice facilities<br />

and industries. They have 16,000 different products, including fresh<br />

seafood, meat and produce, as well as paper goods and of course fresh<br />

dairy.<br />

Sandy says, “This was another vision of the McClelland family in the<br />

60s, to venture into the foodservice business. They were sending everything<br />

out in refrigerated trucks, so they decided to, expand to foodservice.’ That’s<br />

been a growing side of the business. We have warehouses in <strong>Arizona</strong>,<br />

Colorado, New Mexico, and most recently in California.”<br />

Shamrock <strong>Food</strong>s strives to be a collaborative partner to its customers<br />

by offering a wide array of products, menu and recipe trends, and ultimately<br />

being a solution to their business needs.<br />

So with foods besides dairy going out to businesses across the<br />

Southwest, being at the forefront of dairy as a sports drink, having created<br />

the boldest fresh packaging for milk since the cow itself, and coming up on<br />

100 years, it’s no wonder the Shamrock Farms brand has 98 percent<br />

consumer awareness… as well as Roxie the cow. It’s good to be at<br />

<strong>June</strong> <strong>2013</strong> • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • Page 13


Day at the<br />

Capitol<br />

By Debbie Roth<br />

ne of the most anticipated events at the Copper Dome,<br />

<strong>AFMA</strong>’s Day at the Capitol provides Grocers with an opportunity<br />

to showcase their unique products and service offerings to the<br />

citizens of <strong>Arizona</strong> who populate the State Legislature and State<br />

Government offices.<br />

Record numbers of Staffers, Interns and Legislators stood patiently<br />

in line to sample and hear the message each company wanted to share with<br />

their “customers”. In addition to all of the sampling and give-aways<br />

provided at each exhibit, all were treated to a hotdog and brat’s luncheon<br />

topped off by an ice cream social hosted by Blue Bell Ice Cream.<br />

Grocer’s participating in this year’s event included Sprout’s Farmers<br />

Market who showcased natural and organic items; Safeway who featured<br />

consumer brands with a focus on bakery and deli items; 7-Eleven who<br />

provided private label products which included Slurpees and Iced Coffees;<br />

Fry’s <strong>Food</strong> Stores who staged a healthy corner featuring samples of trail<br />

mix, chips, health and wellness bars and juice; Bashas’/<strong>Food</strong> City/AJ’s<br />

focus was the Hometown Grocer sampling healthy snacks; Albertsons<br />

provided Diabetic Education along with healthy snacks; Hickman’s<br />

Family Farms focused on <strong>Arizona</strong> Grown Products sampling their famous<br />

hard boiled eggs and the <strong>Arizona</strong> State Lottery was on hand to explain how<br />

the Lottery impacts the state of <strong>Arizona</strong> through their many programs.<br />

Suppliers who graciously donated product for the luncheon<br />

included: Inventure <strong>Food</strong>s with a donation of Poore Bros. chips; the<br />

Johnsonville Sausage Company who provided brats for grilling and<br />

Nathan’s who provided the hotdogs; and Holsum Bakery who contributed<br />

the hotdog buns.<br />

The City of Phoenix was also in attendance in support of Bag<br />

Central Station and provided much needed trash removeal for all the<br />

exhibits. At the end of the day 640 lbs. of cardboard and debris was<br />

collected with 50% of that diverted from the landfill.Many thanks to<br />

Brewer Johnson with Sales Builders who provided the manpower and<br />

equipment for grilling the hotdogs and brats and a very special thank you<br />

to Jim Gess, (Kellogg’s Snacks, retired) who graciously contributed his<br />

time and helped serve lunch.<br />

Page 14 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong>


1 2 3<br />

4 5 6<br />

1. <strong>Food</strong> City Exhibit<br />

2. <strong>Arizona</strong> Lottery Exhibit<br />

3. 7-Eleven Exhibit<br />

4. Bashas’ Exhibit<br />

5. Albertsons Exhibit<br />

6. Fry’s Exhibit<br />

7. Sprouts Exhibit<br />

8. Safeway and Hickman’s Family Farms Exhibits<br />

9. Retiree, Jim Gess helps serve up the Hotdog and<br />

Brats Luncheon<br />

10. City of Phoenix provided a trash compacter for all<br />

7 the debris<br />

8<br />

11. Representative Rob Robson and Speaker of the<br />

House Andy Tobin enjoy ice cream<br />

12. Secretary of State Ken Bennett loaded up on ice<br />

cream and all the fixins to take back to his office staff<br />

13. Lee Hill, Sergeant Wes Kuhl and Alan Everett with<br />

the Department of Liquor License and Control visit<br />

with <strong>AFMA</strong> president Tim McCabe<br />

14. Representative T.J. Shope visits with “Mom and Dad”<br />

Tom and Luz Shope with Shope’s IGA in Coolidge<br />

15. <strong>AFMA</strong> Board Member and Maricopa County<br />

Supervisor Clint Hickman visits with Representative<br />

Frank Pratt<br />

16. Frank Cannistra, Cathy Kloos, Nancy Keane and<br />

9<br />

Mandy Fellows with Safeway<br />

10<br />

11 12 13<br />

14 15 16


Provides Superior Levels of Service<br />

By Lisa Schnebly Heidinger<br />

Tom Klumker isn’t comfortable<br />

being in the spotlight, so when the Journal met with<br />

him recently to catch up with what’s happening at<br />

Nestlé Waters North America, he immediately<br />

steered the focus of the conversation to his whole<br />

team. And once you get him talking, he’s happy to<br />

point out all the good things the Nestlé Waters folks<br />

are doing here in <strong>Arizona</strong>.<br />

A bit of background first: Tom’s been in the<br />

beverage industry since 1978. He didn’t seek it out; he<br />

was a deputy sheriff in 1978 when he pulled over the<br />

daughter of the owner of the Coca-Cola and Coors<br />

distributorships in town. She was so impressed with<br />

his diplomacy that her father offered Tom a job, and he<br />

never looked back. (He doesn’t come out and say this,<br />

but reviewing his employment history since, he’s never<br />

looked for a job. He’s always been recruited.)<br />

Moving between California and <strong>Arizona</strong> (an<br />

<strong>Arizona</strong> boy whose mother still lives in Yuma), Tom<br />

was with Coca-Cola for years, and even crossed<br />

paths with Tim McCabe for the first time in 1991,<br />

when the future <strong>AFMA</strong> president was also with Coke<br />

in the Bay area. Tom comments that he enjoyed his<br />

time at the soft drink company and learned a lot from<br />

the experience.<br />

Tom joined Nestlé Waters North America in<br />

1996 as a regional manager, overseeing the<br />

distributor network in <strong>Arizona</strong>, New Mexico,<br />

Colorado, Utah, Nevada and Southern California.<br />

Today he’s the Senior Retail Unit Manager for<br />

<strong>Arizona</strong>, Las Vegas and New Mexico, managing the<br />

direct retail team.<br />

Tom is an interesting mix: he’s as true to his<br />

work ethic as the military man he looks like he could<br />

be, but he is not driven to climb the ladder. In fact,<br />

he reports with some pride that he’s hired good<br />

employees who are now senior to him, and he<br />

genuinely loves what he does. (His license plate is<br />

WTR GUY.) “I sell water in the desert,” he says with<br />

a laugh. “What could be easier”<br />

But diving deeper, it’s a lot more complex than<br />

that. He and his team members are driven to constantly<br />

improve their market share. “But not by telling<br />

customers what we want them to do. It’s by finding out<br />

what they are trying to do, and how we can help them.”<br />

Nestlé Waters’ ammunition in the beverage wars<br />

is data. Vast amounts of data. “We don’t just walk in<br />

and say, ‘These brands are best.’ We do a lot of<br />

Page 16 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong><br />

category management, study focus groups; we go in<br />

with our eyes wide open.”<br />

Tom’s team members go out to retail customers<br />

daily carrying tablets, even smaller than laptops, but<br />

crammed with information they can share; the more<br />

the better.<br />

“One of my sales representatives can walk into a<br />

specific chain and show the manager exactly what<br />

they’re selling, what the racks on hand are, and how we<br />

lead the category. It’s unbelievable what we have in<br />

category management. We want to be value added to<br />

that store. And I don’t know too many companies who<br />

provide our level of service.”<br />

Always wanting to give credit where credit is due,<br />

Tom says it’s his reps, and his boss, who make him<br />

look good. “I lead, I coach, and I prepare future<br />

leaders. That’s what I live by. I guess I’m kind of old<br />

school, but it’s how my Dad brought me up.”<br />

It would appear that Tom doesn’t have much to<br />

learn when it comes to bringing out the best in the<br />

people he works with. But he cites his manager, Eric<br />

Fogg, as an example of someone he wants to be more<br />

like. “He gets out in the trenches and works with us.<br />

He leads by example and is not a ‘do as I say’ kind of<br />

leader. He provides total support and the guidance to do<br />

the right thing.”<br />

Tom’s own strengths were recognized when he<br />

was presented with the 2011 President’s Award. “It’s a<br />

neat thing; especially when you don’t know its coming.<br />

Receiving that award and being recognized for the<br />

passion I have for this company meant a lot to me.<br />

Nestlé Waters is a great culture to work in.”<br />

Nestlé Waters’ numbers bear out Tom’s words.<br />

They are the number one seller in seven of their ten<br />

categories of bottled waters and teas. (Tea, the fastest<br />

growing segment of the beverage market, still makes<br />

up only eight percent of the business, but sells so well<br />

that “from a vision standpoint, it makes sense that we<br />

could become the Nestlé Beverage Company sometime<br />

in the future.”)<br />

Perhaps because Tom sold Perrier when he was<br />

with Coca-Cola, it’s his favorite of their brands. He<br />

calls the Perrier acquisition of other brands “the little<br />

fish swallowing the big fish.” And he expresses some<br />

surprise that the traditional pear-shaped bottle (which<br />

is made from sand at the Perrier spring in France) has<br />

been joined by a new baby: a plastic recyclable bottle.<br />

“Customers like change… they like new things.”<br />

Each of Nestlé Waters’ products comes from<br />

different sources, and Tom says that’s what makes<br />

each taste different from the start. “No source is the<br />

same. Spring water from Cabazon tastes different<br />

than Ontario; Calistoga tastes different than Denver.<br />

The potassium, the calcium, the mineral content is<br />

different in each. Some people like a strong mineral<br />

taste, and some don’t. He says minerals aren’t added


to spring water; the only thing added is carbonation,<br />

to San Pellegrino.<br />

Creating bottles that are better for the<br />

environment is one of Nestlé Waters’ innovations in<br />

which Tom takes pride. Arrowhead, the number-one<br />

bestselling bottled water, now comes in a container that<br />

is 50 percent rPET, or recycled material. While PET has<br />

been the standard packaging for decades, rPET means<br />

making the bottles using recycled bottles which are<br />

sorted, cleaned, ground into pellets and then used to<br />

create new bottles. Strong and safe, Tom says these<br />

bottles set a standard for sustainable manufacturing.<br />

Another aspect of Nestlé Waters in which Tom<br />

takes pride is the disaster response. When there’s a<br />

public emergency, trucks of water roll. “We bring in<br />

truckloads of Arrowhead; its one thing I like about<br />

this organization. It speaks volumes about the kind<br />

of company I work for.”<br />

Since Arrowhead was one of the first mass<br />

marketed bottled waters, it’s the most recognizable of<br />

Nestlé Waters’ brands. But each has a certain<br />

customer profile. For instance, Resource Spring<br />

Water contains electrolytes; Nestlé Pure Life® comes<br />

in six fruit flavors, as a replacement for soft drinks.<br />

Aqua Panna and San Pellegrino are super premium<br />

brands that appeal to restaurant-goers. And Perrier<br />

was the brand that started it all in 1976.<br />

Nestlé Waters’ brands of tea fit the specialty,<br />

premium and mainstream markets. Sweet Leaf<br />

appeals to nutrition-conscious consumers who are<br />

proactive about their health and also want a treat from<br />

time to time. Tradewinds has home-brewed flavor<br />

that Tom says prompted one of his reps to say during<br />

a tasting, “I don’t even like tea, and I like this!” And<br />

Nestea, which Nestlé recently acquired from Coca-<br />

Cola, is the mainstream brand, with bold taste and a<br />

good value.<br />

To get team members fired-up and ready, Tom<br />

says, training is a key component. One thing he<br />

especially likes; is that before they go out into the<br />

field, reps spend time learning the business from the<br />

inside out: they take the journey of bottled water. This<br />

means visiting a site where water is bottled, learning<br />

all about safety procedures, what makes each brand<br />

stand out, how little tubes turn into bottles full of<br />

water. “There’s a 10-step filtration process,” says<br />

Tom. “A lot of people don’t realize what we do to<br />

make sure our water is safe.”<br />

All this means that Tom has the same specific<br />

goals for this year that he has every year: grow the<br />

brand, continue to prepare future leaders for Nestlé<br />

Waters, and show his team members the respect that<br />

keeps turnover low.<br />

“I live by the three F’s: fair, friendly and firm.<br />

That’s what we try to accomplish out there.<br />

Everybody is trying to get into the same locations:<br />

soft drinks, wine, beer, water. We are the largest<br />

water company in the world, and we have to be the<br />

best. If we’re in one location somewhere, we try to<br />

increase incremental locations. If they have only one<br />

pallet (72cs), through fact-based selling, we try to<br />

encourage our customers to display more water to<br />

stay in stock.”<br />

Tom and his wife Jessica have six children, and<br />

his responsibilities mean being on the road a lot. But<br />

his travel doesn’t rule his life; “weekends are all<br />

about family.”<br />

So if you pick up a bottle of any of the Nestlé<br />

Waters brands, you know you’re making a family<br />

man even happier.<br />

And if you see the guy on the road with the<br />

“WTR GUY” license plate, honk and wave. He’s<br />

one of the good ones.<br />

●<br />

Nestlé Waters’ ammunition<br />

in the beverage wars is data.<br />

Vast amounts of data. “We<br />

don’t just walk in and say,<br />

‘These brands are best.’ We<br />

do a lot of category<br />

management, study focus<br />

groups; we go in with our eyes<br />

wide open.<br />

Back Row L-R<br />

Ben Maatallah, Scott Johnston, Gabriel Matthews,<br />

Matthew Monson, John Avelar, Matthew Guendel<br />

Tom Klumker,<br />

Senior Retail Unit Manager<br />

Nestlé Waters North America<br />

Front Row L-R<br />

Nicholas Colonna, Tom Klumker, Laura Dahl, Craig Rhinehart<br />

<strong>June</strong> <strong>2013</strong> • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • Page 17


Students at St. Gregory’s Elementary win $1,000 in grocery gift cards<br />

To celebrate Earth Month, the city of Phoenix Public Works<br />

Department, in partnership with Bag Central Station, a plastic bag<br />

recycling program developed by <strong>Arizona</strong> Retailers under the umbrella of<br />

the <strong>Arizona</strong> <strong>Food</strong> <strong>Marketing</strong> <strong>Alliance</strong>, held a plastic bag recycling contest<br />

in April. The winner of the plastic bag recycling contest was awarded<br />

$1,000 in Grocery gift cards during a morning assembly.<br />

St. Gregory Catholic School was the winner of the contest from<br />

among eight Phoenix schools and was presented gift cards from <strong>AFMA</strong><br />

grocers including: Albertsons, Bashas’, Fry’s and Safeway. The criteria<br />

for this competition, was based on the number of plastic bags collected<br />

per student.<br />

St. Gregory Catholic School has a total of 300 students and each<br />

student collected 196 plastic bags to be recycled. Bashas’ #3 located at<br />

7th Avenue and Osborn and Store Manager Daron Webster was St.<br />

Gregory’s partnering store location for recycling the collected bags.<br />

All of the participating schools collected a total of 467,382 plastic<br />

bags. And each school was given a $100 gift card from Bashas’ Family of<br />

Stores for their recycling efforts.<br />

The breakdown for plastic bag collection by school is as follows:<br />

District 1 ......Sunrise Elementary (540 students)...............79lbs/student ..........159 bags/student<br />

District 2 ......Esperanza Elementary (430 students)...........39 lbs/student ...........79 bags/student<br />

District 3 ......Sunnyslope Elementary (900 students) .........27 lbs/student ...........55 bags/student<br />

District 4 ......St Gregory’s Parochial (300 students)...........97 lbs/student .........196 bags/student<br />

District 5 ......Atkinson Middle School (1300 students) .......12 lbs/student ........23.5 bags/student<br />

District 6 ......St. Agnes Parochial (317 students)...............22 lbs/student ...........46 bags/student<br />

District 7 ......Carl Hayden High (1903 students) ...............41 lbs/student ...........83 bags/student<br />

District 8 ......Santa Maria Elementary (750 students)........24 lbs/student ...........48 bags/student<br />

To honor St Gregory’s as the winning school in the plastic bag<br />

collecting contest, a morning assembly was held attended by the City of<br />

Phoenix, Councilman Simplot’s office, <strong>AFMA</strong> and Bashas’. Following<br />

the presentation of $1,000 in grocery gift cards, students received a Bag<br />

Central Station logoed sugar cookie, a bottle of water and a re-useable<br />

bag from contest partner and sponsor…. Bashas’.<br />

<strong>AFMA</strong> president Tim McCabe congratulates the students.<br />

Christine Smith, Deputy Public Works Director with<br />

the City of Phoenix addresses the students.<br />

Evelyn with Phoenix Clean & Beautiful, Diana Felix, Isabel<br />

Gutierrez and Terry Gellenbeck with the City of Phoenix;<br />

Daron Webster and Telleann Dong with Bashas’<br />

St. Gregory students received a re-useable bag, a bottle of<br />

water and a Bag Central Station logoed cookie<br />

compliments of contest sponsor Bashas’<br />

Bashas’ #3 Store Manager Daron Webster handed<br />

out water for the students after the assembly<br />

Page 18 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong>


<strong>June</strong> <strong>2013</strong> • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • Page 19


Names in the News<br />

Girl Scout Cookie Season Ends on sweet note with donation<br />

of 18,000 packages of Cookies and 10,000 cartons of<br />

Shamrock Farms milk to St. Mary’s <strong>Food</strong> Bank <strong>Alliance</strong><br />

St. Mary’s <strong>Food</strong> Bank <strong>Alliance</strong> hands out more than 1,000 Emergency<br />

<strong>Food</strong> Boxes to individuals and families every day, and soon the boxes will<br />

include an extra little treat. On the morning of May 2, the Girl Scouts –<br />

<strong>Arizona</strong> Cactus-Pine Council (GSACPC) will wrapped-up its <strong>2013</strong> cookie<br />

season with what has become a decade-long tradition for the Council – a<br />

massive donation of cookies to St. Mary’s.<br />

More than 18,000 boxes of Girl Scout cookies was donated at the St.<br />

Mary’s warehouse on behalf of the public, and at the same time, Shamrock<br />

Farms made a matching donation with 10,000 school-sized cartons of<br />

milk. Since partnership inception in 2003, a total of 130,000 packages<br />

(2,990,000 individual cookies) and 100,000 cartons of milk have been<br />

donated by the Girl Scouts and Shamrock Farms, respectively.<br />

Summer is traditionally the hardest time for food banks because<br />

donations lag as people leave town, yet demand rises as kids no longer<br />

receive breakfast and lunch at school. People can learn more about<br />

supporting St. Mary’s by visiting www.firstfoodbank.org.<br />

The <strong>2013</strong> GSACPC cookie program has been a tremendous success,<br />

selling more than 2.95 million packages this year. The “Gift of Caring” is a<br />

GSACPC program that allows Girl Scout Troops to offer customers the<br />

opportunity to donate a box of Girl Scout cookies to one of three charities,<br />

including St. Mary’s, which is receiving the largest donation (1,500 cases -<br />

18,000 boxes – 414,000 cookies) and is fully supported by the public.<br />

Even more than a tasty treat, the Girl Scout Cookie Program provides<br />

an important ingredient for leadership by helping girls develop five key<br />

skills: goal setting, decision making, money management, people skills,<br />

and business ethics. All proceeds go back into <strong>Arizona</strong> communities<br />

through donations and Girl Scout leadership-building experiences,<br />

including Troop activities and community service, camp, skill-forming<br />

programs, educational field trips and more.<br />

Girl Scouts–<strong>Arizona</strong> Cactus-Pine Council: builds girls of courage,<br />

confidence and character, who make the world a better place. GSACPC<br />

serves more than 24,000 girls ages 5-17 and more than 10,000 adult<br />

volunteers throughout central and northern <strong>Arizona</strong>. Through Girl<br />

Scouting, girls develop leadership skills and tools for success in an<br />

accepting and nurturing environment. Girl Scouts learn who they are and<br />

what they can accomplish through traditional troop activities, camps,<br />

product sales, and many other events and programs. To get involved, visit<br />

our website, like us on Facebook or send us a Tweet.<br />

About Shamrock Farms:<br />

Shamrock Farms, one of the largest family-owned and -operated<br />

dairies in the U.S., produces and distributes traditional and organic farmfresh<br />

milk, as well as whipping cream, sour cream, cottage cheese and<br />

frozen novelties. Shamrock Farms, which has its own farm hosting both a<br />

traditional and organic herd totaling more than 10,000 cows, is a division<br />

of Shamrock <strong>Food</strong>s Company, a family-owned and -operated business<br />

founded in 1922 in Tucson, Ariz. For more information, visit<br />

www.shamrockfarms.net.<br />

Page 20 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong><br />

Mission <strong>Food</strong>s, Wounded Warrior Project ® Partnership<br />

to “Honor Our Heroes”<br />

Mission <strong>Food</strong>s Will Make Direct Donation of $350,000<br />

to Wounded Warrior Project<br />

Mission <strong>Food</strong>s and Wounded<br />

Warrior Project® (WWP) announcedd a<br />

partner- ship to encourage family<br />

mealtime as a way to re-connect,<br />

strengthen bonds and facilitate the<br />

healing process for those wounded<br />

veterans re-entering civilian life. Mission <strong>Food</strong>s would like to honor the<br />

men and women of the military with a donation of $350,000 to WWP to<br />

help provide support to Wounded Warriors and their families.<br />

For every bag of Mission Tortilla Chips purchased, May 6, <strong>2013</strong>,<br />

through March 31, 2014, 10 cents will go toward the WWP donation. This<br />

donation will help support WWP programs and services, specifically<br />

structured to engage warriors, nurture their minds and bodies, and<br />

encourage their economic empowerment. Look for specially marked<br />

packages of Mission Tortilla Chips and displays to help support this<br />

worthy cause.<br />

WWP, a nonprofit organization, provides programs and services to<br />

veterans and service members who incurred a physical or mental injury,<br />

illness, or wound, co-incident to their military service on or after September<br />

11, 2001. Their vision is “to foster the most successful, well-adjusted<br />

generation of wounded service members in our nation's history.”<br />

Throughout the year, Mission <strong>Food</strong>s and WWP will host special<br />

events and promotions to raise awareness and provide customers additional<br />

opportunities to donate. During the MLB season, Mission <strong>Food</strong>s will<br />

sponsor VIP nights in various ballparks across the country for Wounded<br />

Warriors and their families to attend. Through these special events and<br />

promotions, Mission <strong>Food</strong>s will celebrate the brave servicemen and<br />

women, and the sacrifices they have made for their country. Donations to<br />

WWP help thousands of Wounded Warriors - and their families - as they<br />

return home from the current conflicts in Iraq and Afghanistan.<br />

“At Mission <strong>Food</strong>s, we believe family mealtime is fundamental to<br />

building relationships and creating strong communities. By partnering with<br />

WWP, we are able to continue this mission by honoring our heroes and their<br />

families,” explains Courtney Bohrer, Senior Brand Manager at Mission.<br />

“We’re proud to partner with a company like Mission <strong>Food</strong>s that puts<br />

such an emphasis on family,” said Adam Silva, chief development officer<br />

at Wounded Warrior Project “Their commitment to preserving mealtime at<br />

home reflects the importance of having a strong support system that helps<br />

Wounded Warriors successfully transition to civilian life.”<br />

For more information on all Mission <strong>Food</strong>s products, visit<br />

http://www.missionfoods.com/pantry.aspx. To stay up to date on the<br />

latest events and programs with WWP, follow Mission <strong>Food</strong>s on Twitter<br />

@Mission<strong>Food</strong>s and on Facebook at https://www.facebook.com/mission.<br />

About Wounded Warrior Project<br />

The mission of Wounded Warrior Project® (WWP) is to honor and<br />

empower wounded warriors. WWP’s purpose is to raise awareness and to<br />

enlist the public’s aid for the needs of injured service members, to help<br />

injured servicemen and women aid and assist each other, and to provide<br />

unique, direct programs and services to meet their needs. WWP is a<br />

national, nonpartisan organization headquartered in Jacksonville, Florida.<br />

To get involved and learn more, visit http://woundedwarriorproject.org.<br />

About Mission <strong>Food</strong>s<br />

Mission <strong>Food</strong>s, headquartered in Irving (Dallas area), Texas and a<br />

division of Gruma Corporation, and Gruma S.A.B. de C.V., a Mexican<br />

corporation, was founded in 1949, and is one of the largest tortilla<br />

manufacturers in the United States. Gruma S.A. de C.V. is the parent<br />

company of Mission <strong>Food</strong>s (Gruma Corporation) and is a leading Mexican<br />

producer of corn masa flour and tortilla products. It has operations in<br />

Mexico, the United States, Central and South America, Europe and Asia.<br />

For more information, please visit www.MissionMenus.com. ●


Page 22 • <strong>Arizona</strong> <strong>Food</strong> Industry Journal • <strong>June</strong> <strong>2013</strong>


Your Day Will Include:<br />

8:30 a.m. ..........................Check-in/Continental Breakfast/Tee Gifts<br />

10:00 a.m. ..........................Shotgun Start<br />

3:00 p.m. ..........................Lunch/Awards<br />

Entry Form<br />

Corporate Name: _________________________________________<br />

Contact Name: __________________________________________<br />

Street: __________________________ City: ________________<br />

State: _________________________________ Zip: ___________<br />

Phone: ___________Fax: ___________ E-mail: __________________<br />

Participants<br />

Name: __________________ Company: ________________________<br />

Name: __________________ Company: ________________________<br />

Name: __________________ Company: ________________________<br />

Name: __________________ Company:________________________<br />

(please check) ❑ Team (Foursome) - $ 1 , 8 0 0<br />

36 Foursomes, First Come/First Served<br />

Fees Payable to: <strong>AFMA</strong>, 120 E. Pierce • Phoenix, AZ 85004<br />

For Information Contact:<br />

Debbie Roth at 602.252.9761, Fax 602.252.9021 or droth@afmaaz.org<br />

300 S. Clubhouse Road<br />

Payson, <strong>Arizona</strong>

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