No cigs at Wegman's - what's next?

The retail chain Wegmans has said it will stop selling cigarettes and other tobacco products next month, they are being widely praised for the move by the Campaign for Tobacco-Free Kids and other quarters.

From the story at online site UticaOD.com, a report on how the American Heart Association wants more retailers to follow suit:

But convincing the stores to eliminate tobacco related products could be difficult. In 2006, tobacco sales accounted for more than $5 billion for grocery stores, a Progressive Grocer's annual consumer expenditure study said. “There is a profitable margin on it,” Chanatry’s Manager Lenny Ciriaco said. “It would not cripple, but it will have an impact on our business.” While cigarettes do not make up a large portion of Chanatry’s overall sales, the Utica store does want to supply what customers want, he said. The Utica-Rome area has one of the highest smoking rates in Upstate New York, according to recently released study by Excellus Blue Cross Blue Shield. Smokers Ulysses Taylor and Shariffa Jones of Utica spend at least $30 a week on cigarettes, and said a ban on tobacco product sales at large grocery stores might not work.

TK: Some were incredulous about the move by Wegmans, which was apparently unprompted by outside pressure and made freely by the company. Here is one comment from Washington City Paper that asks:

Jamie said:
Will they stop selling Doritos and Coke in solidarity with the Campaign to End Obesity too? I suspect fat kills more people than nicotine. Let’s hope they do the right thing.


Sarah said:
Are you really comparing Doritos and Coke to cigarettes? In moderation, Coke and Doritos are not directly harmful to your health, are they? They’re not great, but eating doritos now and again, or having a Coke isn’t going to make you obese.
Maybe Wegman’s just doesn’t want to contribute to people smoking any longer. I don’t see anything wrong with that.


TK: "Supplying what the customers want" is the fallback position, but I admire Wegmans for its decision. They may gain some customers and lose some customers over the move. As a retailer, it may be one thing to ask growers to be socially responsible, but it another thing to require it of yourself. Kudos to Wegmans. Is it a slippery slope? I'd have to say Coke and Doritos have nothing to worry about.

Farm Bureau bound

Instead of the micro look at fresh produce industry issues I was expecting to cover at the fruit and vegetable industry advisory committee meeting on Jan. 14-15, (now postponed) I will be headed to New Orleans to cover macro farm issues at the annual meeting of the American Farm Bureau Federation. Look for lots of talk about immigration, the farm bill and speculation about whether the good times in farm country can last.

I see Colin Powell will address the Farm Bureau, so it will be interesting to compare notes with that speech and his presentation at the PMA last October.

F/V advisory meeting postponed?

I have an email this morning into Andy Hatch at AMS on the question of whether the Jan. 14-15 F/V industry advisory committee has been postponed. Back on Dec. 17 Andy sent an email to me that said:

The dates of the Fruit and Vegetable Industry Advisory Committee’s next meeting are January 14-15. The location will be the Capital Hilton at 1001-16th Street NW in Washington. Our news release and Federal Register “Notice of Meeting” will be published shortly. We are working on inviting and scheduling speakers, and formulating the meeting agenda.

PMA reported on their Web site this news on Friday:

PMA has learned that the USDA is rescheduling the January 14-15 meeting of the Fruit and Vegetable Industry Advisory Committee. USDA is working diligently to determine alternate dates for the meeting. The Federal Advisory Committee Act regulations require a “Notice of Meeting” to be published in the Federal Register no later than 15 days prior to an advisory committee meeting. Although USDA developed the notice with sufficient time, the agency was unable to get it published in the Federal Register by December 31. USDA attempted to get a waiver but it was denied.


TK: As one of few people to attend every f/v industry advisory committee meeting - and I have air tickets to DC for this weekend - I'm extremely disappointed with this disturbing lack of execution by AMS. Of course, this does not fall to Andy; the failure goes up the food chain. I'm also chapped AMS has not let the trade press know about the change in these plans prior to today.


Breaking.....


Andy writes in an email today the AMS is considering Feb. 7-8 for the new meeting date, but nothing definitive yet.

Aldi's produce pitch

Aldi's food page ad for Jan. 9 in the Kansas City market showed a new aggressiveness in relation to fresh produce promotions.

The single sheet ad featured all fruits and vegetable on one side and a eclectic combination of consumer goods on the flip side (ultrasonic humidifier, microplush blanket, comforter, parabolic halogen heater).

The Aldi produce ad featured this copy:

Headline: "Eat right. Live well. Save big"
"Fulfilling your recommended 5 daily servings of fruits and vegetables is easy - deliciously easy - when you shop at ALDI. We feature an outstanding variety of the fresh produce at the lowest prices. Healthy eating should always be so convenient ...and so affordable. Only at ALDI."

The color ad featured 3 by 5 inch photo frames with the following features:
California navel oranges: $1.69/4-pound bag
Del Monte bananas: 37 cents per pound
Red Delicious apples: $1.29 per 3-pound bag
Broccoli crown : $1.49 per 16 oz. pack
Celery: 79 cents each
Baby carrots: 79 cents per 1 pound bag
Indian River red grapefruit: 39 cents each
Garden salad: 99 cents/ 1 lb bag


TK; One obvious take is that Aldi should update its ad copy to reflect "5 to 9" daily servings. Affordability is a big selling point for Aldi, especially if the U.S. rounds the corner and plows into a recession in 2008. Low prices will get customers in the door, but Aldi's hit and miss quality could send them back to Wal-Mart or the "traditional supermarket." Retail produce prices are no picnic for consumers right now: I saw seedless grapes for near $5 per pound yesterday and I bought a pint of grape tomatoes for $4 the other day. Ouch.