Read magazine - Hawaii Food Industry Assocation - HFIA

Why We NeedA Coronagraph ?Why not a conventionalTelescope ?64 l/DThe ratio of the planetary fluxto stellar diffracted flux hasContrast < 1 out to ~1000 l/D !1e+001e-011e-021e-031e-041e-051e-061e-071e-081e-091e+001e-011e-021e-031e-041e-051e-061e-071e-081e-091e-10PSF (l = 0.5 - 0.8 mm)1e-01 1e+00 1e+01 1e+02 1e+03l/DContrast vs Angular SeperationJupiterEarth1e-01 1e+00 1e+01 1e+02 1e+03Angular Seperation (l/D)R.G. Lyon02/25/04> 10 -9

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TRENDSOnce-Sizzling SoySuffers SeriousSales SlumpRising Soybean Prices,New Alternatives & FickleFans Lead to 16% DropFrom 2008 to 2010Soy—a super food once so hot it got its own logo—islooking a little pedestrian these days, with salesslumping on everything from soy milk to leadingmeatless hamburger brands. The $2.6 billion market forsoy foods and beverages plummeted 16% from 2008 to2010, according to a report from market researcher Mintel,which projects another 17% drop from 2010 to 2012.Analysts suspect a variety of factors are at play, includingrising soybean prices, new alternatives, and the fickleness ofhealth-conscious consumers.Soy has “lost a little of its luster,” said Rick Shea, a foodmarketingconsultant and former Kraft marketing executive.“People are realizing there isn’t necessarily one magicbullet…so they are broadening their use of [health] foods.”Marketers are responding. Silk, long-known for its soy milk,now also sells almond milk and coconut milk. “Lighter usersof soy milk…are being drawn to the new varieties in thecategory, like almond and coconut,” said Jennifer Hartley,marketing director for Silk, which is owned by Dean Foods,suggesting that taste is a motivating factor.Regular variety Silk soy milk still leads the nondairymilk category with a 35% share, but sales fell 14.6% to$206.6 million in the year ending March 20, according toSymphonyIRI. Meanwhile, almond milk sold by competitorBlue Diamond has made strong gains, moving up to thirdplace with $70.2 million in sales. Silk’s almond milk,introduced last year, and coconut milk, released in January,are also rising.In the soy food sector, slumping categories include babyfood, cookies, snack bars, soy cheese, and frozen desserts,according to Mintel, whose report does not include sales fromWhole Foods, Trader Joe’s, and Walmart because figureswere not available. The meat substitute category has held itsown, with frozen meat substitute sales increasing 4.1% from2008 to 2010, and refrigerated alternatives up 16.8%.But as of late, sales for some of the biggest brands haveflat-lined. Morningstar Farms’s frozen meat substitutes,owned by Kellogg Co., fell 2.3% to $109.5 million in theyear ending March 20, while Kraft Foods-owned Boca branddropped 4.2% to $38 million, according to SymphonyIRI.New competition is also coming from companies such asEngland-based Quorn Foods, which markets frozen burgers,chicken, and other products made from “mycoprotein,” afungus-based substance that the company touts as being highin fiber, low in calories, and good for digestion.“You’re seeing a lot of innovation in the vegetarian andvegan category. Soy isn’t the only alternative any longer,”said Carlotta Mast, editor in chief of NewHope360.com, which covers the health food market. Indeed, soywas missing from many of the hottest products at therecently held Natural Products Expo West, a leadingnatural and organic trade show. Among the favorites citedby NewHope360, which produced the show, includedKootenay Kitchen Vege Pates from North of 49 Naturals,touted as “dairy/egg/soy free,” and Food for Lover’s VeganQueso, made from nutritional yeast.Soy gained momentum in the 1990s and broke throughas a health food darling in 1999 in the wake of an FDAdecision that cleared the way for marketers to promote soyproteins as reducing the risk of heart disease. Soon after,commodity giant Archer Daniels Midland Co. formedalliances with food makers to mark soy products with a“NutriSoy” logo, which today still designates products withat least 6.25 grams of soy protein per serving.“It became a catch-all that people couldn’t get enoughof,” said David Browne, author of the Mintel report. Browneworked at Whole Foods in the 1990s and remembers womenbuying soy nuts “almost like a medicine.” But in recent years,the soy industry has dealt with conflicting news reportsabout cancer risks. Because soy has estrogen-like chemicals,there’s been some fear that it could increase the risk of breastcancer recurrence in survivors, but research presented ata recent meeting of the American Association for CancerResearch allayed those fears.At the same time, soy innovations have slowedsince peaking during the low carbohydrate craze of themid-2000s, according to Mintel. Now, gluten-free productsare the rage, as marketers from General Mills to Anheuser-Busch introduce products catering to consumers with glutenintolerances. “Gluten-free products are fueling their owngrowth through innovation,” said Phil Lempert, who runsSupermarketguru.com. “Soy got lazy.”10 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

DOT…DOT…DOT…A Collection of Local & National News & Views…DID YOU KNOW…that according to a recent ReutersHealth article, “people who ate lots of salt were not morelikely to get high blood pressure, and were less likely todie of heart disease...” The European study goes on to say,“while previous trials suggested a blood pressure benefitwith lower salt intake, research has yet to show whetherthat translates into better overall heart health in the widerpopulation.” Incidentally, the authors caution that theiranalysis “included only white Europeans, and so the resultsmay not translate to people of other ethnicities.” I guessthere are no non-white Europeans who eat salt….ANHEUSER-BUSCH introduces new products andpackaging…Stella Artois, the world’s bestsellingBelgian beer, has introduced a new14.9oz Chalice can in both a 4- and10-pack case. Additionally, theyare rolling out the MargaritavilleSpiked Tea andMargaritavilleSpiked Lemonadejust in timeYOUNG BROTHERS: HAWAII FOOD & BEVERAGE1/4 PAGE-V (3.4375”W X 4.9375”H): CMYKFresh from the FarmYoung Brothers transportsyour local fruits andvegetables refrigerated fromthe farm to the marketreliably and frequently. Asyour neighbor island partner,thank you for allowingus to serve all our islands formore than 100 years.for summertime tropical-themed parties. Speaking ofsummertime parties, from the nation’s bestselling producer,its flagship brand Budweiser will make a donation of up to$2 million to the Folds of Honor, a foundation that providesscholarships for families of fallenand disabled soldiers. Thepromotion is from June 6to July 10, and Anheuser-Busch will contribute fivecents for FONTS/IMAGES/INKSevery case ofBudweiser sold. “GrabBlacksome Buds!”FontsGill Sans (Bold), Helvetica Neue (45Light)Imagesyhw140642_mch_pad_refr.tif (CMYK;150 ppi; 100%)InksCyan, Magenta, Yellow,DID YOU KNOW…that the‘organic’ label seems to makefood taste better? A recentstudy published in HealthDayNews presented at the AmericanSociety for Nutrition’sExperimental Biology annualmeeting in Washington, D.C.,…continued on page 13REFRESHY UR WRLDWhen you choose Pepsi®, you support the®For your interisland shipping,call us at 808-543-9311Neighbor Islands toll-free800-572-2743www.youngbrothershawaii.comPEPSI, the Pepsi Globe and PEPSI REFRESH PROJECT are registeredtrademarks of PepsiCo, Inc. YHW140642-5/11HAWAII RETAIL GROCER - CONVENTION ISSUE 2011 11

New MembersALOHA PETROLEUM, LTD.PROFILE: Aloha Petroleum, Ltd., is rankedas one of Hawaii’s top 20 companies byHawaii Business magazine. It is the state’sleading gasoline retailer and one of its leadingconvenience store operators. An independentlyowned company that employsmore than 450 people, Aloha is a petroleummarketer and convenience store operatorwith a history in Hawaii dating back to the early 1900’s.REASON FOR JOINING HFIA: Aloha is interested inindustry issues, meeting other members, and networkingthrough HFIA.UNIQUE TO THE COMPANY: Aloha is not just a companyname, it’s their spirit. It is a company of firsts—the firstcompany to have pay-at-the-pump in Hawaii; the first tohave its own proprietary card; first to deliver E 85 in thestate; and first to offer instant discounts at the pump withits Save-A-$ proprietary card.LOCATION & SERVICE AREA: Aloha’s headquarters arelocated in Honolulu and operates over 100 Aloha, Shell,and Mahalo branded businesses on Oahu, Maui, HawaiiIsland, and Kauai.CONTACT INFORMATION:Gary Altman, General Manager-Company Operated StoresPh: 808-522-9708; Email: galtman@alohagas.comFacsimile: 808-532-2773Lisa DeCoito, BuyerPh: 808-522-9729; Email: ldecoito@alohagas.comFacsimile: 808-532-2773MUSCULAR DYSTROPHY ASSOCIATIONPROFILE: The Muscular DystrophyAssociation offers services to those whoare living with neuromuscular disease andtheir family members. Services are free tothose who register with the MDA. A voluntaryhealth agency that is not mandatedby government to offer services, the MDAoperates an outpatient clinic at the CastleMedical Center, conducts monthly support group meetingson every major island, and provides funding for durablemedical equipment repairs. The MDA also provides educationalmaterials, sponsors seminars, and funds research.REASON FOR JOINING HFIA: One third of MDA fundingcomes from the retail food industry. MDA does not seekfunding from government sources, Aloha United Way, orfrom parents or clients.UNIQUE TO THE COMPANY: The MDA holds an annualone-week summer camp for children with neuromusculardisease. The camp helps children acclimate with otherchildren with similar challenges and helps them gain confidencein their abilities by providing activities appropriatefor their capabilities. At the same time, the summer campprovides respite for parents.LOCATION & SERVICE AREA: StatewideCONTACT INFORMATION:Audrey Hirayama, Executive DirectorPh: (808) 593-4454; Fax: (808) 597-1716Address: 1221 Kapiolani Blvd #220, Honolulu, HI 96814MILLERCOORSPROFILE: Built on a foundation of great beer brands andover 288 years of brewing heritage, MillerCoors is thesecond largest beer company in America, capturing almost30 percent of U.S. beer sales and offering a broad portfolioof brands across every major industry segment. MillerLite established the American light beer category in 1975.MillerCoors brews full-calorie Coors Banquet and MillerGenuine Draft, and economy brands Miller High Lifeand Keystone Light. The company also imports Peroni,Grolsch, Pilsner Urquell, and Molson Canadian, and offersproducts such as Miller Chill and Sparks. MillerCoors featurescraft brews from the Jacob Leinenkugel, Blue MoonBrewing, and the Blitz-Weinhard Brewing companies.REASON FOR JOINING HFIA: MillerCoors appreciates thevalue retail trade organizations bring to advocacy effortsthat impact its industry. They value the strong relationshipwith our retail partners individually and collectively withinalliances. In addition, MillerCoors values the communicationand information flow from HFIA to its members.UNIQUE TO THE COMPANY: MillerCoors brought theinnovative vortex bottle to the Miller Lite brand and thermalink to Coors Light packaging that makes the mountainsblue when the beer is as “cold as the Rockies.”LOCATION & SERVICE AREA: MillerCoors products areavailable throughout the islands via its distributor partner,Paradise Beverage.CONTACT INFORMATIONTiffany Chan, Chain Account ExecutiveEmail: tiffany.chan@millercoors.comColonel Toma, On-Premises SpecialistEmail: colonel.toma@millercoors.comLance Hastings, Director of Government AffairsPh: 916-771-6447; Email: lance.hastings@millercoors.comAddress: 3001 Douglas Blvd #200, Roseville, CA 95661SANDWICH ISLE PEST SOLUTIONSPROFILE: In business since 1997 andbased out of Pearl City, Sandwich IslePest Solutions (SIPS) is the largest privatelyowned pest management company inHawaii. SIPS provides general pest and birdmanagement, termite management, tentfumigation services, commodity and quar-12 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

antine fumigation, EnviroPureHeat and K9 scent detection.REASON FOR JOINING HFIA: Many Sandwich Isle PestSolutions customers are members of the food Industry inHawaii. SIPS is looking for opportunities to grow its marketshare in the food industry.UNIQUE TO THE COMPANY: A full service termite andpest management company, Sandwich Isle Pest Solutionsspecializes in rodent, fly, and bird management solutionsfor the food industry. SIPS has pioneered the use of heatto eradicate bed bugs and termites, operating these servicesunder their EnviroPureHeat Division. SIPS also operatesK9 Scent Detection Hawaii, which specializes in K9 detectionfor bed bugs, using NESDECA-certified K9 teams.The company owns and operates the Coffee Berry BorerTreatment Center in Kona to treat infested coffee shippingout of the CBB quarantine zone.LOCATION AND SERVICE AREA: All the major HawaiianIslands.CONTACT INFO:Michael Botha, PresidentPh: 808-456-7716; Email: mjbotha@sandwichisle.comFacsimile: 808.456.7266Address: 96-1368 Waihona Street, Bay #4,Pearl City, HI 96782DOT…DOT…DOT… continued from page 11suggests that having “an ‘organic’ label on foods is enoughto make people believe the food items are healthier andtastier.” The study goes on to say that “144 volunteers wereasked to compare what they believed were conventionallyand organically produced sandwich cookies, plain yogurt,and potato chips. All the products were actually organic, butwere labeled as either “regular” or “organic.” The experimentrevealed that the participants preferred almost all the foodslabeled as “organic” over the “regular” labeled items, eventhough they were all organic. The study was conducted totest the theory that people “influenced by what is describedas the ‘halo effect’—the perception that an item that islabeled ‘organic’ is therefore nutritious—would lead people tobelieve that the ‘organic’ foods tasted better.”THE ALOHA FOR JAPAN effort by HFIA retailers is movingalong at an aggressivepace…. while I’m surewe have not receivedall member contributionscollected thus far, from what we have gathered,HFIA retailers have donated well in excess of $250,000to the relief effort. Companies such as Marukai WholesaleMart, Foodland Supermarkets, Safeway Stores, and TimesSupermarkets have reported contributions from customers,vendors, and employees to help out this cause. Please sendus your contributions for this effort, and we’ll be happy toinclude your donation in the next magazine.SPEAKING OF MARUKAI WHOLESALE MART…if you haven’tattended their “Taste of Marukai,” treat yourself next year totheir 7 th annual festival…you’ll be glad you did…. It’s likewalking through the side streets of Tokyo with a perpetualparty going on at every corner!DID YOU HEAR…about Chinese farmers facing explodingwatermelons? It was recently reported in state media that“farmers in eastern China have been left perplexed aftertheir watermelons began to explode one by one.” Onefarmer reported that more than two-thirds of his crop “hadblown up.” The report goes on to state that farmers haverecently started applying growth hormones to the melons,which agricultural experts believe have contributed to thefruit exploding. However, they cannot explain why fruitnot treated with the hormones are also exploding. Couldthis be a case of melon see, melon do? Hopefully Al-Qaedadoesn’t get wind of this, or we may have to assign alertbulletins in our produce aisles….THE COLA WARS ENTER A NEW BATTLEGROUND…PepsiCo Inc. announced it is “introducing a ‘social’ vendingmachine that lets users buy each other drinks remotely....”Reuter’s reported that a prototype of the new technology willdebut in May to potentially combat Coca-Cola’s “‘Freestyle’vending machine, which has a digital touchscreen and candispense more than 100 flavor combinations.” Pepsi’s newsystem “lets users give their friends a beverage gift by enteringthe recipient’s name, mobile phone number, and a personalizedtext message or video. The gift is delivered with a system codeand instructions to redeem it at any similar machine.” Whydoes a voice ring in my head, “Luke, I am your father….”ON A FINAL NOTE…if you have information regarding yourcompany, a product, or event you want promoted…we alsoare interested in getting your opinion, comment, criticism,or editorial feedback. We’ll be happy to list your commentswith your name (or not if you so desire, as long as we canverify the information came from you). Please keep in mindwe may not be able to print your entire message due tospace limitations. We also need to have your informationa month before we go to print. Our next issues of HawaiiRetail Grocer are targeted for late September and December.A hui hou kakou malama pono.HAWAII RETAIL GROCER - CONVENTION ISSUE 2011 13

TRACEABILITY:Like Google for Your FoodBY JASON Y. KIMURAIt’s become common to “google” ajob applicant to see what’s reallyunderneath that polished resume,but what’s really under the skin of thatwatermelon you’re about to eat? For manytypes of produce, it’s now possible to findout when and how it was grown, where,what variety it is, and more via a scanwith your smart phone. HarvestMark, theworld leader in food traceability, has made2.4 billion items traceable. Food traceabilityhas tremendous implications fornot only food safety, but as a marketingand management tool as well. ElliotGrant, PhD, founder and chief marketingofficer of HarvestMark, was in Honolulurecently to give a seminar on food traceability.The event was sponsored by theUniversity of Hawaii at Manoa’s Collegeof Tropical Agriculture & HumanResources and the Cooperative ExtensionService Food Technology Program incooperation with HFIA, the HawaiiFood Manufacturers Association, and theHawaii Restaurant Association.The foundation of traceability is foodsafety. Signed into law on January 4,2011, the Food Safety ModernizationAct (FSMA) gave the Food & DrugAdministration (FDA) new authoritiesto monitor the U.S. food supply. Withregard to traceability in particular,Section 204 of FSMA states that thecapacity of the secretary of agriculture“to effectively and rapidly track and trace,in the event of an outbreak, fruits andvegetables that are raw agricultural commodities”shall be improved. What thisindicates is an improved ability to tracespecific lots of food back to their originand forward to see where they went.Beginning in 2008, an industry-ledeffort to establish traceability acrossthe entire produce supply chain waslaunched as the Produce TraceabilityInitiative (PTI). The goal of PTI,which aligns with FSMA, is supplychain-wide adoption of electronic traceabilityfor every case of produce by theyear 2012. The standardized PTI labelincludes what looks like a large bar codeDr. Elliot Grant, Chief Marketing Officer of HarvestMark, speaks on food traceability at thePagoda Hotel.that is scanned as it goes through thesupply chain and stores case movementdata. Large retailers such as Walmart,Kroger, and Trader Joe’s are on boardwith PTI, warning that suppliers thatchoose not to conform will ultimatelyput their customers at risk. The reasonfor this is that they are worried aboutliability, according to Grant. If there is arecall of spinach, for example, Walmartwants to be able to quickly identifywhich of its 5,000 stores are affected andnotify customers to limit the damage.Besides the food safety aspect,traceability can be used as a powerfulmarketing and management tool. Rightnow, farm operations; logistics/repacker/broker/processor; retailer; and consumermarketing segments are isolated in theirown silos. However, HarvestMark andmore than a dozen other traceabilityprovider companies are changing that andhave taken PTI a step further. Individualand packaged produce are being codedwith small labels that can be scanned withA package of white mushrooms with aHarvestMark scannable square code on the bottomright corner of the label. Use your smart phone toscan in the symbol in the photo to get instant dataor enter the numeric code 7767 5357 9258 KG31found above the symbol at www.harvestmark.com.your cell phone using a special app to findout a host of information about an item. Anumeric code printed on the label can alsobe entered on many traceability companywebsites. Right now, larger products likewatermelons and packaged items such asgrapes and mushrooms are being labeled(see photo). Depending on what has beenposted, the consumer can find out recallstatus and lot number, product variety,origin, farm or ranch name, distance tomarket, and harvest date. “Consumers arenervous about food safety,” said Grant.“Transparency is the future of retailing.”Not only can a consumer easilyaccess information about an item, theycan be offered other features that helpmake their experience more authentic.A photo gallery of the farm and farmer7767 53579258 KG3114 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

may be posted, along with an organiccertificate. The farmer can offer aninteresting narrative on their growingpractices, region of the country, sustainability,and more. Nutritional informationcan be given, as well as fun factsfor kids, coupons, and regional or familyrecipes. Perhaps the consumer can clicka Facebook link to post the item if theyliked it. Interaction is possible, such asallowing the customer to post feedback.If the feedback is negative, perhaps thecustomer can be sent an email with acoupon to ameliorate negative feelings.Traceability is also a powerfulmanagement tool. When a consumertraces a product, for example awatermelon, HarvestMark uses thephone’s GPS or the computer’s IP addressto track the trace to build a database.The company also offers a DailyShopperservice in which a nationwide team goesto retail stores every day to measure ageand the visual quality of products withHarvestMark codes and correlates thedata with harvest information. Growerscan see the age of their watermelonsin any region of the country or showan average for a region. Such data notonly alerts growers to a problem of oldproducts on supermarket shelves, but itcan show which varieties of a certain fruithave a longer shelf life.HarvestMark is also placing traceabilitylabels on items like chicken, andthe list of items continue to grow. Over200 companies, from the very small to thevery large use HarvestMark. “Traceabilityisn’t a label,” said Grant. “It’s a new way ofseeing the supply chain.”Front (l to r): Yuko Vierra, Don Quijote (USA) Co., Ltd., Dr. Elliot Grant, Aurora Saulo,PhD, professor and extension specialist in food technology at the University of Hawaii atManoa, and Kevin Yoshige, Don Quijote. Back: Wade Igarashi, Don Quijote, Dino Ragonjan,Don Quijote, Antony M. Aki, Don Quijote, and Craig Hamamoto, KTA Super Stores.news_gothic_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°¬µñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æ÷|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸`‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_italic_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°¬µñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æ÷|ÅıÇδÏÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸`‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_bold_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°¬µñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æ÷|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_bold_italic_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°¬µñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æ÷|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_underlineExcellencegotham_light_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸`‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"gotham_light_italic_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇδÏÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸`‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_medium_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_medium_italic_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_bold_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_bold_italic_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"news_gothic_black_abcdefghijklmnopqrstuvwxyz`1234567890-=[]\;’,./ABCDEFGHIJKLMNOPQRSTUVWXYZ~!@#$%^&*()_+{}|:”?_åç郩˙î°Ðµñøoe®ß†ü¥à¡£¢§•ªº–“‘«…æÐ|ÅıÇÎ´Ï˝ÓˆÔ Ò˜ØOE‰Íˇ¨„˛Á¸` ‹›fifl‡°‚—±”’»ÚƯ˘¿|áéíóúâêîôûàèìòùäëïöüÿãñõÁÉÍÓÚÀÈÌÒÙÄËÏÖÜŸÑÃÕÂÊÎÔÛ)*** '"gotham_light_underline© Altria Group, Inc. 2011The pursuit of excellence begins with a vision of whatcan be. It’s the inspiration behind every organizationwhose dedication to innovation and passion forperformance help our communities thrive.Hawaii’s twomost lovednumbers after5-0.At 7-Eleven Hawaii, we offer a variety oflocal favorites made fresh daily. We’vebeen part of the islands for over 30years with more locations on the way.The people of the Altria family of companies saluteHawaii Food Industry Association for creating newpossibilities and transforming a vision into action.To learn more, please visit altria.com7ElevenHawaii.comHAWAII RETAIL GROCER - CONVENTION ISSUE 2011 15

HFIAZRELOADEDHow the Association isRetooling for a New FutureyRewind ten or twenty years. Wedrank water out of the tap, not fromplastic water bottles purchased at a store.We communicated primarily by mail andhardwired telephones, not by email and cellphones, and certainly not via Facebook orTwitter. Although these are the new norms,few predicted these revolutionary changes.Similarly, not many predicted that bigbox stores would change the paradigm ofretailing. This precipitated a consolidation ofsupermarkets and other retail establishments,which in turn caused a consolidation ofsuppliers. These paradigm shifts and otherdevelopments have strongly impacted theHawaii Food Industry Association, but theAssociation has made structural changes andis reloading for the future.16 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

The HFIA ExecutiveCommittee: BonnyAmemiya, chair, AlanNakamura, vice chair,Gary Hanagami,executive director, MikeWalters, immediate pastchair, Barry Taniguchi,advisor, John Schilf,secretary, and StanBrown, treasurer.A Board in DisarrayTwo thousand and ten was a rough year forHFIA—and one of remarkable progress. Shortlyafter the 2010 convention and the election of thenew Executive Committee, the new chair waslet go from his company. The whole nominationprocess had to be restarted, and Bonny Amemiyawent from the secretary-treasurer position tochair, and the three officers for HFIA’s boardhad a total of one year of board leadserhipbetween them. To compound the complexity,Dick Botti was set to retire at the end of the year.Botti established HFIA in 1972 fromscratch. He took it from nothing to an organizationflush with cash, but current conditionsdictated change. The aforementioned retailerand wholesaler consolidations had dramaticallyimpacted profitability, and revenues declined.HFIA was losing membership; it went from ahigh of 450 to less than a quarter of that numbertoday. Botti had to prune back staff and takeon more work as revenue continued to decline.“The only way to run HFIA the way Dick Bottidid it is to be Dick Botti,” says HFIA executivedirector Gary Hanagami, who was brought onto manage the Association on January 1, 2011.“Dick set the standard for HFIA.”“Botti set the direction for HFIA, and theassociation relied on him for it because he did itso well and for so long,” says Stan Brown, Hawaiisales manager for the ConAgra Grocery Division.Now HFIA must set its own direction. But itgoes deeper than that. HFIA was an organizationwithin an organization. It was managed byBotti’s Legislative Information Services of Hawaii(LISH); it didn’t have its own office or personnel.Of necessity upon Botti’s retirement from HFIA,the two organizations separated, and HFIA hadto become its own entity—even down to creatinga mailing address. Hanagami, whose role is like ageneral manager, was hired, and he subcontracteda set of people to handle some of HFIA’s communicationand legislative functions. HFIA wentvirtual: a PBX system was set up and everythingis routed to Hanagami and Paula Aono.Hanagami notes that the Executive Board’ssecretary and treasurer positions had beencollapsed into one earlier, but the narrowed boardproved detrimental due to last year’s unexpectedloss of its chair. He also noted that seniorleadership is needed to fulfill HFIA’s mission, butif the executive board is brand new every threeyears—with no Dick Botti—there’s no continuity.Nevertheless, Hanagami commends thecurrent Executive Committee for the job they’vedone from July of last year to now. “They’ve heldthings together with gum and string,” he says.“Progress has been made faster than expectedbecause we have a proactive executive board.”Back to BasicsThe HFIA Mission Statement is as follows:“The Hawaii Food Industry Associationactively promotes the interests of Hawaii’s foodand beverage retailers and suppliers throughhighly effective government relations andadvocacy, members’ education, and industry andcommunity relations.” According to Hanagami,HFIA’s mission must be fulfilled in three ways:legislatively, by actionable internal and externalcommunication, and via community outreachprograms. His job is to move HFIA in thedirection of living up to its stated mission.Gary Hanagami has had an impressive careerwith high profile positions at Oscar Mayer, KraftFoods, and Rainbow Sales & Marketing. However,he admits that he started out as an underachieverwho was motivated by nearly everything but goingto classes when he first attended the University ofHawaii at Manoa. “It wasn’t a means to an end,”the Waipahu High School graduate says of his earlydays. He dropped out, joined the National Guard atthe height of the Vietnam War, and began helpinga friend with running a lunch wagon on the NorthShore. Hanagami was successful at it, but realizedbeing a helper wasn’t going to get him anywhere,so after an almost four-year hiatus, he went back toschool. Fortunately, he had dropped out from theCollege of Business and was considered a returningstudent, so he did not have to compete with otherswho had more stellar records to get in.This time Hanagami was motivated and collegewas now a means to an end—and he was aboutto happen upon a set of circumstances that wouldlead to his career path. His senior marketingcourse was doing a review of food distribution inHawaii and student teams were assigned to createpresentations. Hanagami’s team snagged interviewswith notables like John William Amerman “Doc”Buyers, then chairman and CEO of C. Brewer &Company, and with Oscar Mayer, at that time afamily-owned company. Their presentation “bleweveryone out of the water,” but for Hanagami, thatwas just the half of it. He had earlier replied to ablind ad posted at UH for “motivated graduateswho wanted to get into the food business.” It led toOscar Mayer. After his interview—with his team’sdynamite presentation under his belt—Hanagamiwas offered a job on the spot. After two years inHawaii, he was offered a promotion to run OscarGary HanagamiHAWAII RETAIL GROCER - CONVENTION ISSUE 2011 17

Proud to Serve Hawaiifor 63 Years.Mahalo for your Support!

A Legislative UpdateDick Botti is a lobbyist. He figured outwhat the critical bills were. Although Bottiis gone, the legislative arena is still one ofHFIA’s major responsibilities. Accordingto Alan Nakamura, HFIA ExecutiveCommittee vice chair, Hanagami hit theground running with regard to legislativeissues. “We’re not talking about savinga nickel,” he says. “We’re talking aboutthousands and thousands of dollars.”Nakamura, a Kalani High Schoolgraduate, earned degrees in psychologyand Japanese at the University of Hawaiiat Manoa. He was planning to go intotravel industry management, and hisfirst job was with a small Japanese tourcompany. However, Nakamura wentback to his roots in the food industry, firstat Perry’s Smorgy and Zippy’s restaurants,then for the next 18 years at Fast Stopconvenience stores. He is now going on11 years at Tesoro, and is a regional merchandisingmanager working out of theirPalama convenience store and gas station.Food seemed to fit, as his father was insales at Kraft Foods, and Nakamura fondlyremembers helping him restock shelveson occasion. He also worked at Foodlandduring high school as an assistant manager,and made enough of an impression to bepulled aside and asked if he was interestedin becoming a store manager.The Association needs to be strongto get our issues heard, noted Taniguchi,who would rather be involved insupporting concepts than getting intothe weeds of particular bills and theirspecific drafts. That’s the job of lobbyistLauren Zirbel, who is onboard to ferretout the particulars. “Gary has taken it onestep further,” says Taniguchi. “There’sa bi-weekly conference call for anyonethat’s interested.” Formed the second weekafter Hanagami came on board, thelegislative “round table” is a time whenretailers and wholesalers can come toa middle ground with the purpose oflobbying with one voice on an issue.Change You Can(Really) Count On“I recall the good ol’ days when theeconomy was healthy, membership wasstrong, and our conventions rotatedbetween the major islands eachyear,” says Nakamura. “In recentAlan Nakamuratimes, our membership has decreasedthrough closings, mergers, and financialchallenges…but with our new executivedirector Gary Hanagami, we have seen arenewed energy and enthusiasm, and thisbodes well for HFIA.” For Nakamura,there is still tremendous value in HFIA,despite the difficulties. “It’s a wonderfulgroup,” he says. “they’re like a family. Weneed to have a liaison for new members sothey feel welcome and can feel comfortablewith the group.” For Nakamura, it’snot just something to say. If he had toleave HFIA for a job, he says, he’d have tothink about it. Anyone who has dealt withHFIA, even for a short time, will tell youthere’s something special there, and leaderslike Nakamura aim to keep it that way.Nakamura relates that Hanagami isBuy Local It Matters®Join the movement!Congratulations to the new HFIA administrationhttp://hawaii.gov/hdoa22 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

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keeping every member in the loop with aflood of emails, which helps keep themeducated on the issues and involved.“Gary asks everybody for their input,” hesays. On the education front, there arealso workshops, seminars, and articlesin Hawaii Retail Grocer magazine. Henotes that Hanagami has also focused onmembership. “We have some really strongnew members that have experience withother associations, so they bring infresh new viewpoints,” he says.“We are going to become an associationthat will be a legislative force inthe industry,” says Hanagami, “one thatwill strive to educate its internal andexternal members, and an associationthat will further impact the greatercommunity that we serve and where wederive our revenue. We’re going to bean association that communicates clearlyand creates the opportunity for internalnetworking for its members. Finally,we’re going to be an association thatcelebrates in its success and has fun.”Survival“Is it enough to combat big box stores?asks Taniguchi rhetorically. “No, butHFIA will provide tools to help retailersand wholesalers become stronger.”Amemiya notes that as the retail landscapechanges, companies have to constantlyrethink their strategies, and so does HFIA.“Even big box stores can come and go,” shesays. “Historically, the biggest competitorshave been challenged. You can’t be statusquo. You have to find your niche or a newone to compete—and have good people, agood plan, and good leadership.”Taniguchi says it’s going to be tough,but believes there can be a niche foreveryone. He suggested that everybodyshould have a strategy to work withsuppliers. “Although we can’t gettogether to influence price,” he says,“[we can work] to establish relationshipsto help the industry as a whole. If localsuppliers remain strong, they are moreable to offer good pricing to retailers.As a wholesaler, Mike Walters, Love’sBakery president and HFIA ExecutiveCommittee immediate past chair,agrees: “Our direction is to developa stronger retail base to HFIA so wecan strengthen personal relationshipsoutside the office.” Strong relationships,he says, allow joint partnerships betweensuppliers and retailers. For example,a supplier and retailer may do ashort-term promotion together to attractconsumers and keep a brand name outin front while accepting lower margins.Walters is originally from Salt LakeCity, Utah, jesting that he was “one of 10Catholics” at the time. As a “crazy kid,”he volunteered for the Marine Corpsduring the Vietnam War, and later, whilegoing to school at the University of Utahat night, he did route sales for WonderBread (Continental Baking Company),launching a 40-year career in the bakingindustry. Walters was a psychology major,but was promoted to a supervisory positionand started a family and so didn’t finish hisdegree. He did well for himself though, ashe was promoted to general sales managerfor the San Diego bakery, then wasselected to be in an executive managementtraining program and was promoted togeneral manager of the Denver bakery.He later was promoted to vice presidentof sales for the Los Angeles region,then to general manager for NorthernCalifornia. Walters eventually left thecompany and did consulting, when he wasrecruited by a former mentor to becomeHo ‘omaika‘iBonny!Job well done!Wishing you successin your next year.24 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

Mike Walterspresident of Love’s Bakery in 2002. In2008, Love’s parent company wanted todivest the bakery. Walters was faced withthe bakery’s closure or had the option tobuy it. Selecting three key employees, hebought Love’s in 2008, and it once againbecame locally owned as it was back in1968. With employees stepping up tothe plate and a lot of hard work, Love’sBakery, established in Honolulu in1851, was returned to profitability.Walters would like to see retailersbecome more of a part of the HFIAenvironment and to have a greatervoice. He has confidence that ExecutiveCommittee decisions are being madeand will be made in the best interests ofboth suppliers and retailers. As past chair,Walters sees his role as supporting andrespecting the current chair’s vision.The Vision ThingA few of the Executive Committeemembers commented on hopes for thefuture. “Specifically, getting more retailersinto the organization and growing it by25% over the next three to five yearswould be a step in the right direction,” saysAlan Nakamura. “In my ‘crystal ball,’ I seeHFIA continuing to be a vibrant, energeticassociation which is seen as truly caringabout Hawaii’s people. New members willbe encouraged to participate in many ofour annual activities so a healthy successionplan can be put into place to strengthenHFIA as the years go by. There will befocus on legislation so we can continue toprovide the people of Hawaii with foodand beverages safely, affordably, and asefficiently as possible. Members will bekept abreast of major issues which mayaffect our industry, and will be encouragedto voice their thoughts and opinions.The feeling of ohana should continue toflourish well into the 21st century.”“One of the things I’d like to seewith HFIA going forward,” says BonnyAmemiya, “is to have the ability tomobilize the membership’s employeebase—several thousand of them—whenwe have legislative issues on the table. Itwould be significant to use web technologyto encourage members and their employeesto participate in the process and contactlegislators when they will be directlyimpacted. I would like to see our webpagegive a synopsis of issues and make it easyfor their voices to be heard. We could havea very powerful voice. Finally, I would likeHFIA to have an engaged membershipthat cares about social, as well as industryissues, one that can take the lead ineffecting changes that will make Hawaii abetter place to live and work.“It’s difficult to predict the future,”says Stan Brown. “Japan just experienceda devastating earthquake and tsunamiand they went from the world as theyknew it to one of survival.” Change canbe challenging and even sobering, and theparadigm we live in today may be gonetomorrow. Perhaps Brown sums it up best:“Whatever materializes, I would like tosay that HFIA would be in a position torepresent our industry. If we don’t, wewould cease to exist.”Get Savings, Security, Control and Convenienceall with ONE CARD!PLUS your business may qualify for monthly discountsthat can really add up.*To apply, visit www.TesoroFleet.com©2011 Tesoro Corporation. All rights reserved.*Fuel discounts offered by Tesoro are subject to change or cancellation at any time in Tesoro’s sole discretion and without prior notice.For discount terms and additional information, please visit www.tesorofleet.com.HAWAII RETAIL GROCER - CONVENTION ISSUE 2011 25CLIENT TESORO JOB # TE_11013

Friendly CompetitionTwo Mokokai Markets MoreFriends than CompetitorsBY JASON Y. KIMURAPhotos by Chris HammondIf Hawaii is known for the alohaspirit, Molokai is known for itsfriendliness. Virtually unchangedfrom times past, the Friendly Isle is aplace where you can find a new calabashaunty or uncle, where car keys often sitin ignitions untended, and where eventhe competition between Kaunakakai’stwo markets—Misaki’s, Inc. andFriendly Market—is, well, friendly.Independents like these two markets area dying breed, but perhaps their ruralisolation is their best chance for survival.The tension of the big city seems toslip away into the unhurried quietnessof Kaunakakai, which is much as it was20 years ago, or 30, or perhaps more.Transfused with the aroma of unpeopledhills, vegetation, and the sea, even the airsmells different as the island transportsyou back into time. Misaki’s had itsbeginnings in 1922, when owner KevinMisaki’s grandmother opened a candystore. His grandfather was a commercialfisherman and “did all kinds of stuff” tomake money, including being involved inthe store. “You do what you got to do inthose days,” reflected Misaki, althoughit’s not much different today for manyMolokai residents who wear differenthats to make a living.When Kevin’s grandparents got outof the business, his father, Mike Misaki,and uncle, Richard, took over as partners.When Kevin took over Misaki’s, it hadgrown from a candy store to a generalstore that carried not only groceries, butwhatever could be sold, including fishingsupplies, shoes, hardware, tools, bolts ofmaterial and other dry goods, clothing,and items the plantation workers askedfor. When Kevin first came into thebusiness, he felt a bit strange having tobuy blouses for women. In another partof the store sat stacks of burlap bags withfeed for animals like pigs and horses.A ’73 Mid-Pacific Institutegraduate, Kevin Misaki wasn’t sure heKevin Misaki of Misaki’s, Inc., and Jeffery Egusa ofFriendly Market stand together in Kaunakakai, Molokai.was coming back. He was interestedin oceanography at the University ofHawaii at Manoa, but it was hard toget into the program, so he studiedmarketing. After graduating in 1977,Misaki got a job at Holiday Mart undermanager Woody Reed and worked inevery store, mostly in stock and at theregisters. He acquired his own boat andfished on days off, hooking akule andomaka in Pearl Harbor during the daysbefore the Navy would chase you out.In 1979, he came back to Molokai.Some things have changed sincethen. Most of the general store stuffwas discontinued a few years afterKevin took over, and Misaki’s became agrocery store. But even today, customers26 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

still ask for tarai (tub in Japanese)—biggalvanized tubs that can be used foreverything from bathing children totorching to being played as a crude bassin an impromptu jam session—whichMisaki will bring in if he can find them.The market also still allows old timersto take their groceries on credit and paymonthly as they did in the old days, butnewer customers pay by plastic or cashas the old ways die out. No doubt thereis some change. “But compared to otherislands,” says Misaki, “our clock is slow.”Misaki appears to have no regretsin coming back to run the store. “I getto interact with different people everyday,” he says. “A grocery store in asmall town is a part of [people’s] sociallives…it’s a place to see friends and talkstory.” Quoting a line from the Cheerssitcom theme song, he says it’s a place“where everybody knows your name.”Still, it’s a very hard business, saysMisaki, who puts in at least 90 hours aweek. He doesn’t push any of his threechildren—ages 19, 29, and 31—to takeover the market when he retires, but hewould like to see Misaki’s continue forthe people and the employees.Store hours are 8:30 am to 8:30 pmMondays through Saturdays, and 9:00am to 12:00 pm on Sundays. “I try toclose on holidays…we’re closed Mother’sDay, but open on Father’s Day,” hechuckles. “I like to keep my girls happy!”Deer head trophies adornthe interior of Misaki’s.In times past, Misaki’s used to close onSundays, and each day, through the early’70s, the whole town closed for lunchfrom noon to one o’clock. But if thepace is more hurried today, it’s not muchmore hurried. “People want tourism, butit leads to growth,” says Misaki, whofeels that perhaps the biggest changeis that people are aware of what theyProduce at Misaki’shave on Molokai and want to protectwhat’s special about the island. “Othersthink we’re anti-growth, but we’re not.We’re just trying to protect the island.”Kevin is unsure of what will happento Misaki’s after his generation, but ifthe people have become aware of theMahalo to all our customersand suppliers.We appreciate yourcontinued support.GroceriesDry GoodsLiquorMeatFresh ProduceW e wish to extend our“Friendly” welcome to thenew leadership of HFIA.Congratulations!Misaki’s, Inc.P.O. Box 69, Kaunakakai, Molokai, 96748Phone: 808 553-5505Meat Dept. 808-553-5515Third GenerationServing Molokai Since 1922808.553.559590 Ala Malama St.Kaunaka Kai, HI 96748HAWAII RETAIL GROCER - CONVENTION ISSUE 2011 27

unique value of Molokai, then perhapssomeone will step up to the plate—maybe one of his children.Like Kevin, Jeffery Egusa of FriendlyMarket took over his family’s business.Friendly got it’s start in January of1953. Just about a month before that,Jeff’s father had lost his job at KualapuuMarket. Shortly after, his aunt andEgusa played golf for a year, butrealized that he couldn’t remainunemployed, so he thought maybe he’dgo back to school and become a physicaltherapist. To prepare himself and seewhat the job would entail, he volunteeredat the Rehabilitation Hospital of thePacific. The next day they offered him ajob as a P.T. aide, and that’s what he didgood training for running a store sinceclerks were given the opportunity to dobuys. Still, Egusa was unsure about hiscareer path and had also applied for ajob as a fireman—his brother was onein California—but there was a one-yearmoratorium on hiring at the time.In 1978, when Egusa was goingto night school, he met Crystal. She(Above) Checkout counters at Friendly Market take you back in time. (Right) Egusa stands on the roof of Friendly Market, where he has hadsolar voltaic panels installed. The panels generate a sizable amount of electricity for the market. (Below) Produce at Friendly Marketuncle were asked by a local bigwig toopen a restaurant in Maunaloa, the tinyplantation village set in the hills on thewest end of Molokai. They agreed onthe condition that they would also beable to open a store in the restaurant,and so a second Friendly Market wasopened. Jeff came back to Molokai towork at Friendly Market in 1980, andhis father let him take over.But it wasn’t as simple as all that.Also a Mid-Pac grad, Jeffery Egusafinished in 1970, a few years ahead ofKevin Misaki. “When I was a kid, Iused to hate it,” says Egusa of his daysstacking the shelves. “I never expectedto come back to run Friendly—but youshould never say never.” After highschool he attended Menlo College inCalifornia. After a year, Egusa washomesick, so he came back to Hawaiiand earned a degree in sociology fromthe University of Hawaii at Manoa. Hewanted to become a social worker, butfelt he was too soft-hearted for the work.Instead, Egusa took a job as a warehouseman at Toshiba, during which time hebecame enamored with golf and quit.for the next year and a half. Although heliked the job, Egusa realized that, at theend of the day, the health care industrywas a business. “If it’s just a business,” hethought, “[Maybe] I should go work formy dad.” However, he hadn’t taken anybusiness classes and had no experience,and he wasn’t ready to go back just yet.Egusa took bookkeeping and otherclasses at night, and during the day, heworked at Longs Drugs because it waswas a Kauai girl who he had actuallyfirst met years earlier, and who he hadnow convinced to go out with him. Hewanted to marry Crystal, and it hit himabout having kids. He realized he didn’twant to raise children in the “big city” ofHonolulu, or on Oahu for that matter.However, Crystal had studied to becomea dental hygienist, and eventually movedback to Kauai to work for her father,who was a dentist. It was time for Egusa28 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

to chart a definite course for his life.Jeff asked his dad if he would hirehim. “He practically fell out of hischair,” Egusa related. “He was thinkingof selling Friendly Market.” Egusaproposed to Crystal, and when sheaccepted, they moved to Molokai. Onthe day he was moving to Molokai,Egusa received a letter of acceptancefrom the Fire Department, but hiscourse had been set. In March of 1980,Jeff became Friendly Market’s newestaddition. Crystal said she would neverwork there, but Jeff had leaned by thistime that you should never say never….Jeff’s dad began letting him takeover by degrees almost immediately.When Jeff suggested to his father thatthe old, termite-eaten wooden shelvingshould be replaced, he agreed, and said“you go ahead and do it.” He let Jeffdo everything he wanted to improveFriendly, but made him take charge ofit. “I said we need to build a warehouseand renovate the store,” Egusa related.“Dad let me get the financing.”Meanwhile, Egusa’s uncle had died andhis father was going back and forth fromMaunaloa to Kaunakakai to take careof both markets. By 1985—the year ofthe renovation—they decided to sell theMaunaloa store. Jeff’s sister, Judy Egusa,a DOE teacher who had worked atthe Maunaloa store during a sabbaticaland ended up staying, came to theKaunakakai store. Today, Judy, Jeff—and Crystal—run the store together,each doing a little bit of everything.“It’s tough, but good fun,” says Egusaof running Friendly Market. “The bestthings I decided in my life was marryingCrystal, moving to Molokai, and runningFriendly Market.” He knew that hisdad was just trying to survive, but alsorealized that the employees should havebetter pay, and so after the renovation,Egusa established a profit sharing planso there would be retirement money forhis staff. “My workers have 401Ks and amatching contribution [from Friendly],even in lean years,” he says. “It’s beensatisfying making a good life for myselfand my workers.”As for his so-called competitor downthe street, the competition is strictlyfriendly. “Kevin is the nicest guy,” saysEgusa. “He likes to fish and I like golf.”In the running of their respective grocerystores, they freely borrow things fromone another. The stores are close to thesame size. Friendly has 4,900 squarefeet of retail space, plus a 4,500 squarefoot warehouse. Misaki’s is somewhatbigger—maybe by about 500 or 600square feet—and also has a warehouse.Like Misaki’s, the store has long hours(8:30 am to 8:30 pm, Mondays throughFridays, and 8:30 am to 6:30 pm onSaturdays), not to mention all the otherwork that goes into running a business.“If I can survive and be here andhelp the people, everyone makesout,” says Kevin of Misaki’s Inc. LikeMisaki, Egusa is not sure about whatwill happen to Friendly Market, butis making plans for the future of hisgrocery store. His son is a structuralengineer in Seattle, and his daughterwill soon graduate in nursing. Andalso like Misaki, he has not pressuredeither child to run Friendly and is noteven sure if he would want that forthem. But as life has taught him, youshould never say never.Choose Crystal Farms. ® Choose Better. At Crystal Farms ® we choose to do things better by insisting on using onlythe highest quality ingredients and then testing and re-testing against awide range of criteria such as taste, purity and texture.That means when you choose Crystal Farms, you can be certain you arechoosing delicious foods of the very highest quality that your shoppers willlove. To learn more call 1-877-CRYSTAL or visit crystalfarms.com.©2011 Crystal Farms1/2 Page (H) 7" X 4-15/16" 1/8" bleed included2011 HRG AdHAWAII RETAIL GROCER - CONVENTION ISSUE 2011 29

GeneralMeetingSpeaks in SpecificsHeld on April 19th at the Honolulu Country Club,the HFIA general meeting’s agenda was packedwith important issues, including a presentation byExecutive Committee chair Bonny Amemiya onthe proposed bylaw amendments, followed bydiscussion. The HFIA profit and loss statement of July1, 2010 to March 31, 2011 YTD budget and prioryear comparisons was presented, and Lauren Zirbelgave an update on HFIA lobbying efforts. Details onthe June Convention were released, and memberswere encouraged to make reservations. The RetailManagement Certificate Program was presented,along with extra copies of the March 30, 2011 issueof MidWeek, which featured the program in a coverstory titled “School of Grocery.” Roy Ishihara ofMarukai then spoke about how HFIA members canget involved in the Aloha for Japan relief effort,outlining the steps his company took to get involved.Bonny Amemiya presents the proposed amendments tothe HFIA bylaws.Alan Nakamura, TesoroFront (l to r): Dexter Yamada, KYD, Inc., Leighton Kido, Nestle (USA), Bruce Ykochi, Tamura’s Enterprises, Inc. Back: Michelle Tang, CocaCola Refreshments, Roy Ishihara, Marukai, Wayne Yamada, Wholesale Unlimited, Cliff Mattos, Matson Navigation.30 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

500 Exhibits! • industry sEminars • PrizEsWEd, July 13 • 10am - 6Pm • thur, July 14 • 10am - 5PmFree! • blaisdEll CEntEr • 777 Ward avEnuE • honolulutEl: 808-261-3400 (oahu) • www.douglastradeshows.comOpen to industry only. Those under 18, children and guests not admitted.Las Vegas travel prizes provided by

GENERAL MEETINGJay Higa, Star AdvertiserBarry Taniguchi, KTA Super StoresRonald Bailey, TomraGlenn Nagatori, Seven-Eleven and Hoagy Gamble,L.H. GambleGary Hanagami, HFIALauren Zirbel, HFIA, gives an update on lobbying efforts.Joe Detro, FoodlandMarshelle Pagan, Coca Cola, and Barry Taniguchi,KTA Super StoresClaire Sullivan, Whole FoodsMark Fergusson, Down to EarthJay Higa, Star Advertiser, Mike Kaya, Meadow Gold Dairies, Joe Detro, Foodland,and John Schilf, FoodlandRoy Ishihara of Marukai presents the Alohafor Japan program.32 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

Does your supplier offer programs like this?Hawaii Truck LoadDealsMarketingCalendar24 Hour Order toDelivery ServiceSeasonalCandy BooksRecipes forHealthy LivingSuperior AccountManagementBest Yet BrandedMerchandiseSPRING FOOD SHOW“Luck ofthe Irish”Spring & FallFood ShowsSummer /Back to School BookHawaii CustomerService CenterWe stand ready to offer the support youneed to compete and grow your business.Only Available fromWholesale GrocersYour Premier Independent SupplierFor more information contact: Beau Oshiro, Vice President, Hawaii. C & S Wholesale Grocers, Inc. Office: (808) 682-3308 Cell: (808) 222-4737 Email: boshiro@cswg.com

The Last Word…BY GARY HANAGAMI, EXECUTIVE DIRECTORThe beginning of summer in Hawaii has traditionallymeant the start of graduation season. Kamaainahave never really needed much encouragement tocelebrate anything. There are traditional Hawaii milestones,from baby’s first birthday party—generally attended bymore people than are present at a mainland county fair—tograduation. From preschool all the way through collegegraduation and beyond, we celebrate.These milestones benchmark times in our lives, closingone chapter and creating a new beginning for the start ofthe next one. “The Last Word” ends the editorial contentof our magazine, and in a way closes this issue’s “chapter.”As you’ve read in our cover story and Bonny Amemiya’smessage, HFIA is also looking to the future for a newbeginning with the changes employed at both the ExecutiveCommittee and director levels.Not only has your association embarked in a newdirection, we are experiencing new beginnings on manyother levels, externally from our membership, and internallywith our staff. As we were going to press, the announcementwas made that the Kawakami and Furugen familieshave decided to sell five of their six Big Save ValueCenter stores on Kauai to PAQ Inc., owners of TimesSupermarkets, Shima’s Market, and Fujioka Fine Wines.The lone Lihue store is being closed due to the proximity ofTimes’s current store on the island.While economic factors and conflicting family concernshave contributed to this sale, the removal of uncertaintymust surely be a relief for the more than 200 employeesof Big Save, who have been reassured from TimesSupermarkets that most of their jobs and seniority willremain in place upon reapplication, a generous practice inthese types of takeovers. This new beginning for the formeremployees of Big Save renews their hope for the future, aswell as entrenches Times Supermarkets on the Garden Isleunder the Big Save banner.However, since the sale involves only the supermarketstores owned by the families, we hope to continue havingthis valued representation from the island of Kauai byvirtue of their ownership of the Menehune Food Martconvenience stores and the Kauai Kookie Company productline. Charles Kawakami was HFIA’s 25 th chairman andled the association during its 29 th to 30 th years. Duringhis tenure as CEO, HFIA’s board of directors included45 companies, 32 of which are currently still in businessor active members today. Status quo has never been anaccurate description of our business environment then, andit still isn’t today.Many of you are aware of the sudden passing of AmericanGreeting’s regional manager Jeff Stahl, one of the industry’struly good guys. While those who knew Jeff were saddenedby the circumstances surrounding his death, Jeff was notone to dwell on his personal battle. As we were planningour tribute for Dick Botti at thisweekend’s convention, we askedJeff to help put together an appropriatecard that would be signed by 24 of HFIA’s past CEOsand the current executive officers; he accepted with his usualenthusiasm: “Absolutely.”No one knew at the time that Jeff was stricken with avery aggressive form of cancer that had spread throughouthis body, and that he had left the state for treatment onthe mainland. Jeff called, saying that he was away “gettingtherapy for the kink in his neck,” and had turned overthe card responsibility to one of his team members, JonHamamura. I thanked him, wished him a speedy recovery,and looked forward to spending some time with him atour convention. He said he looked forward to it. Jeff diedshortly thereafter.A couple of weeks later, Jon provided me with the cardthat he was asked to design. He also gave us the beautifulKoa frames that the cards would be placed in, and told methat Jeff instructed him to “get some nice frames to placethe cards in and give it to HFIA [in behalf of AmericanGreetings].” Thank you Jeff—we wish your family the verybest as they begin their new life in Kentucky. We will thinkof you often.As you may have read in our last issue’s cover story onDick Botti, HFIA’s former executive director, Paula Aonofilled the role of our chief administrative officer for Dickand nearly all of HFIA’s CEOs who have served in our40-year history. Similarly, Paula will be embarking on anew beginning in her life as her tenure with HFIA is alsocoming to a close. She has been a tireless worker who hasonly been interested in getting the job done and makingeveryone else look good as she shies away from any recognition.This has not been an easy time for Paula.Most who know Paula understand the difficulties she’sfaced this last year. Through it all, she’s volunteered to stayon and assist in our transition, knowing full well that shereally needed time to take care of herself and her family.Typical Paula—she chose to delay tending to her ownneeds so the association she had given 38 years of her lifeto would not suffer. She spent the better part of the firstmonth of this year helping HFIA set up its virtual officeand PBX system, as well as keeping me on track with theresponsibilities of executive director.We will miss her loyalty, dedication, honesty, integrity,and smiling face. HFIA could not have initiated the agendawe put together without her holding down the fort, workingwith our committees, contacting members for our meetings,and a host of other tasks. Paula has been one of the keys to theassociation’s past and foundation which will enable our futuresuccess. For that, we thank you Paula. We wish you the verybest as this chapter closes and you begin to write a new chapterin your life. We look forward to your future plans.34 HAWAII RETAIL GROCER - CONVENTION ISSUE 2011

Serving Kauai’s FamiliesFor Over 84 YearsHawaii’s Favorite,Kauai’s ownHawaiian Hula Dressings are unique, quality salad dressingsmade from Hawaiian Tropical Fruits and Vegetables, and thefirst of its kind being bottled and marketed in the U. S. or the world.The acceptance has been great.These salad dressings should be merchandised as specialtyitems from Hawaii.Flavors: Papaya Seed, Maui-Style Sweet Onion, and Dry MixPapaya Seed Dressing in Original or Low Calorie.In the quaint little town of Hanapepe on the Island of Kauai, masterbakers and cookie specialists work intensely every day creating handmadeand home-style cookies. We are proud to present to you Hawaii’sfavorite and Kauai’s own. . . the world-renowned. . . Kauai Kookies.Macadamia Shortbread, Guava Macadamia, Almond, ChocolateChip, Coconut Krispies, Peanut Butter, Kona Coffee Macadamia,Cornflake Krunch and other specialty flavors.• BIG SAVE SUPERMARKETS – You will find us in Waimea, Eleele,Koloa, Lihue, Kapaa and Hanalei.• NEW DELI & BAKERY – Visit us at Waimea and Koloa Big Save.Ace Sushi has also joined us at Koloa Big Save with Sushi Chefs inattendance daily.• SHELL SUPER SERVICE – Gas up at Kapa’a Shopping Center with24-hour Mini-Mart & the newly renovated Shell Super Service in Kilauea.• FAMOUS KAUAI KOOKIES – Hawaii’s favorite, Kauai’s own. Bringhome these great crunchy kookies in a handy carry-on box. Now availableat all Big Save Supermarkets, or at the Hanapepe Kookie Factory.• SUBWAY – Visit us for healthy Subway sandwiches and salads. Locatedat Hanalei and Koloa Big Saves, Eleele Shopping Center, Kalaheo andKilauea Menehune Food Marts.• MENEHUNE FOOD MARTS – Cold beverages,hot snacks, fresh bakedpastry treats, & more available everyday. Stop in for your conveniencestore needs at any of our five locations – Kekaha, Kalaheo, Lawai,Kilauea and Kapahi.• RESORTS SHOPS DIVISION – From the rainbow selection of Island treasures.Look for the Sheraton Poipu Sundries or the Wailua Marina Gift Shop.Kauai 335-5003Neighbor Islands Call 1-800-361-1126P. O. Box 68, Eleele, Kauai, HI 96705E-mail: kookie@aloha.netBig Save, Inc. P.O. Box 68, Eleele, Kauai, HI 96705Kauai (808) 335-3145E-mail: bigsave.markets@hawaiiantel.netfor supporting made-in-Kauai products