effectiveness and profitability of companies in the retail...

Photo courtesy of Associated Wholesalers, Inc.

yearsTable of Contents

Photo courtesy of Giant Food Stores, LLC

“The mission of the Pennsylvania Food Merchants Association is to improve the public image,effectiveness and profitability of companies in the retail and wholesale food distribution industry.”

2

Pennsylvania Food Merchants Association andPennsylvania Convenience Store Council Chairmen . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 3-4

PFMA President’s Message . . . . . . . . . . . . . . . . . . . .page 5

Association Services DivisionMembership Programs . . . . . . . . . . . . . . . . . . . .pages 6-8 Communications . . . . . . . . . . . . . . . . . . . . . . . . . . .page 9Government Relations . . . . . . . . . . . . . . . . . .pages 10-15Delaware Food Industry Council . . . . . . . . . . . . .page 16Pennsylvania Pharmacy Council . . . . . . . . . . . . .page 17Responsible Tobacco Sales Certification Program . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .page 18Scanning Certification Program . . . . . . . . . . . . . .page 19

Merchants Express Money Order Company . .pages 20-22Research and Development . . . . . . . . . . . . . . . . .page 23

Sales, Marketing & Facilities . . . . . . . . . .pages 24-25 & 29

Pennsylvania Coupon Redemption Services . . . .page 26

Data Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . .page 27

Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .pages 28-29

Insurance Services . . . . . . . . . . . . . . . . . . . . . . . . . . .page 30

2002 Board of Directors and PCSC Executive Committee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .page 31

Legislative Committee . . . . . . . . . . . . . . . . . . . .pages 32-33

FoodPAC of Pennsylvania . . . . . . . . . . . . . . . . .pages 34-35

PFMA History in Photos . . . . . . . . . . . . . . . . . .pages 36-38

Contact Information . . . . . . . . . . . . . . . . . . . . . . . . .page 39

VÉÇàtvà \ÇyÉÜÅtà|ÉÇ

AdministrationPresidentDavid L. McCorkle

Executive SecretarySusan Lentz

Association ServicesSenior Vice President,Association Services DivisionRandy St. John

Executive AssistantJamie Overmiller

CommunicationsDirector of CommunicationsElizabeth Peroni

Food Industry Advisor Editor/Sr. Communications SpecialistEd Conley

Advertising Sales ManagerTom Cirino

Communications AssistantDebi Tolan

MembershipDirector of Conventions & MeetingsCarla Jeremias

Member Database SpecialistJudy Chilcote

Government RelationsDirector of Government RelationsJennifer Walker

Director of Association ServicesMelanie Horvath

Communications/Information SpecialistAnnette Chilson

ProgramsScanning Certification Program ManagerAutumn Thomas

Responsible Tobacco Sales CertificationProgram ManagerMissy Wellington

FinanceControllerKaren Wilbert

Accounting ManagerGail Bryner

Credit and Collections ManagerDan Oliva

Data ProcessingVice President, Data ProcessingBeth Mullen

Merchants Express MoneyOrder Company (MEMO)Vice President, Money ServicesTanya Butler

Research and Development DirectorKen Augustine

Compliance OfficerJudy Johnson-Ward

Operations ManagerFred Johnston

Operations ManagerTerry Smith

Project Manager/WebmasterPat Kilgour

Pennsylvania CouponRedemption Services(PCRS)Vice President, PCRS & Special ProjectsAutumn Thomas

Sales, Marketing &FacilitiesVice President of Sales, Marketing &FacilitiesHans Leyer

MEMO National Sales ManagerBryan Hannan

Administrative AssistantBecky Harner

Warehouse ManagerJohn Rodgers

Offices Located at:1029 Mumma Road

Wormleysburg, PA 17043

Mailing Address:P. O. Box 870

Camp Hill, PA 17001-0870

Phone:717-731-0600

In PA: 800-522-9983National: 800-543-8207

MEMO Customer Service:800-922-8079

Web site Address:www.pfma.org

www.memoco.com

General E-mail Address:[email protected]@memoco.com

39

5050

It’s been a pleasure to serve aschairman of the PennsylvaniaFood Merchants Association,

especially during the 50th Anniversaryof the association’s founding. I willtreasure the wonderful memories ofthe celebrations and reminiscing withold friends in the industry.

In 2002, PFMA members not onlyspent time celebrating a milestoneanniversary, but also continued tobenefit from the valuable governmentrelations work, information gatheringand dissemination, business servicesand programs offered by theassociation.

Last year, PFMA’s GovernmentRelations team achieved a majorvictory in creating more uniformtobacco laws with the passage of Act112. The law pre-empts new localordinances, offers an affirmativedefense for retailers who train theiremployees not to sell tobacco productsto minors, and, for the first time,imposes responsibility on the minorattempting to purchase tobaccoproducts. PFMA also continued tohelp members better understand whytheir employees mistakenly selltobacco to minors. The ResponsibleTobacco Sales Certification Programcontinues to grow and to collect datain its efforts to stop the sale of tobaccoproducts to anyone under the age of18.

PFMA’s Government Relations staffalso made it possible for every PFMAmember to have instant access tolegislative information and to theirrepresentatives. In October, the staffunveiled a new home page, whichallows members to track legislationand write to their representatives. Italso features improved memberresources and pages for each ofPFMA’s committees.

In addition, the staff published a com-prehensive Emergency Planning Guide

this year. While none of us want to con-template the possibility of these disas-ters, this guide serves as a valuableresource for what to do in case of anemergency.

At the request of members, PFMAformed the Delaware Food IndustryCouncil to provide representation inthe state. The council hired MarkKleinschmidt to serve as executivedirector. He began working to ensure asmooth roll-out for Delaware’s EBTprogram and to improve the WICprocess for the state’s food retailers.He will launch a Political ActionCommittee and has organized fund-raisers for the Council.

PFMA members operatingpharmacies also neededrepresentation on the diverse andcomplicated issues impacting theirbusinesses. The PennsylvaniaPharmacy Council incorporated lastOctober and began planning thegroup’s legislative agenda.

Merchants Express Money OrderCompany, a PFMA business sub-sidiary, continued its nationwideexpansion and now offers its productsin 32 states. Business alliances with theFood Marketing Institute andAmerican Payment Systems will bringMEMO products to an even greateraudience. Meanwhile, the research anddevelopment group continues to seeknew products to enhance members’

bottom line. All these valuable projects and serv-

ices are completed by the professionalstaff led by President David McCorkle,who completed his 20th year of servicewith the association. Thanks to hisleadership and commitment to listen-ing and reacting to member needs,PFMA has grown into an influentialvoice for the food industry. It has beena pleasure working with David and hisentire staff! I look forward to the greatideas, strong representation and newservices to come in the association’snext 50 years.

3

Jack ClemensClemens Family Markets

Kulpsville, PA

photo courtesy of Clemens Family Marketsphoto courtesy of Clemens Family Markets

cY`T V{t|ÜÅtÇËá `xáátzx

A Year of Celebration and Hard Work

HC lxtÜá Éy `xÅÉÜ|xá

38

Pennsylvania Senator Hal Mowery (R-31) read aSenatorial proclamation in honor of PFMA duringthe 50th Anniversary kick-off celebration at theGreenbrier Resort in West Virginia. Mowery, sec-ond from right, presented the proclamation toPFMA President David McCorkle, PFMA BoardMember Tim Reardon, Giant Food Stores; andPFMA Chairman Jack Clemens, Clemens Family

1980s1980sAl Vicks retired as PFMA President in 1987, and David McCorkle was

appointed president and CEO by the board of directors.Sadly, Al Vicks passed away on June 17 at the age of 87.Top right photo, PFMA established Merchants Express Money Order

Company (MEMO) in 1986 to provide a high quality money order service toits members. MEMO grew to become the nation’s fourth largest moneyorder company. Today, MEMO has more than 4,500 agents in 32 states. The first Pennsylvania Convenience Store Council

meeting was held in State College on November 1,1983.

1990s1990sIn 1983, members startedthe PFMA Education Trustto support food industryeducational programs inthe Commonwealth. In1995, PFMA and PCSCjoined the PittsburghAssociation of ManufacturersRepresentatives to raisefunds for the Thomas R.Ridge Scholarship Fund.

Members showed theircommitment to prevent-ing underage tobaccosales by working withthe Attorney General,Health Department,local law enforcementand tobacco coalitionsto form the ResponsibleTobacco SalesCertification Program.

20022002

PCSC and PFMA Work Together to Achieve Goals

cVfV V{t|ÜÅtÇËá `xáátzx

It is an honor to be elected theChairman of the ConvenienceStore Council of the

Pennsylvania Food MerchantsAssociation. The development of therelationship between the two issignificant. It joins together withinPennsylvania under one umbrella theinterests of both the supermarketsegment, as well as the smaller, vitalconvenience store segment. In otherstates, these two segments of the foodindustry are often separate, but inPennsylvania we have the distinctbenefit of having the supermarketindustry work together with theconvenience store industry for the bestinterests of all. As a consequence, thisjoinder allows members to participatestrategically in the development of thebest interests of their respectiveorganizations.

The association provides a basis forproviding knowledge, solutions, andconnections that are so helpful anduseful to all of us in the industry. Wework together in influencing govern-mental action that can benefit all of us.Active participation in the politicalprocess is one of the touchstones of theorganization and allows everyonefrom the remotest town to the teemingstreets of Pittsburgh and Philadelphia,connected with the food industry toparticipate in a meaningful way to

affect the course ofgovernmental actionand to support thosepeople who support

the best interests of the food business.The Pennsylvania Convenience StoreCouncil allows us, through the sharingof knowledge, to anticipate thechanges in consumer tastes, govern-mental action and industry develop-ments to ensure the long term viabilityof our companies, and of course, theindustry as a whole.

The issues identified and evaluatedby the Association are critical to thechanging dynamics of our industry’sperformance. It allows busy executiveswho are focused on the tacticalday-to-day business of running theirmarkets to be quickly well informedabout what is happening in their busi-ness.

Over the years, the PennsylvaniaConvenience Store Council, throughits relationship with PFMA, has beenable to bring to its members the firstinformation about such diverse itemsas scanning technology, check cashinglegislation, tobacco proposals ofvarious kind; the possibility of sellingalcohol from food stores; gasolinesales, and the Earned Income TaxCredit for our people. It has broughtservices to our companies that arevital. The money order business that isso profitable for many of us really wascreated, developed, and expanded bythe association, as well as the couponredemption business, which providesa steady source of income to theassociation, which allows us to bothredeem our coupons and keep theassociation financially viable.

Convenience store retailers met in State College on November 1, 1983to form the Pennsylvania Convenience Store Council. Membersattending the first meeting included, from left, Dixon Stroud,Landhope Farms; Stewart Harman, Rutter’s Farm Stores; VinceAnderson, Wawa, Inc.; George Arthur, Country Fair Markets; BobZiltz, Lawson’s; Jim Bruce, Stop-N-Go, Pittsburgh; CharlesMarkham, Uni-Marts; Paul Meckley, Hattie Harris; and Jim Scholl,Open Pantry Food Marts.

Vince AndersonWawa, Inc., Wawa, PA

4

fxÜä|Çz à{x YÉÉw \ÇwâáàÜç

37

1960s1960s

Gubernatorial candidate Milton Shapp is welcomed toPFMA’s 1969 Convention by PFMA President David Molish,right, and Al Kane.

Right, PFMA hosted Food Store Spectacular promotionswith Governors Leader, Lawrence, Scranton and Schaefer. Top,posing with the Governor and Elenor Herling, Miss Food StoreSpectacular, are Robert Montgomery, Montgomery WholesaleGrocery; Stanley Genetti, PFMA president; Al Vicks, PFMAexecutive secretary; and Jay Riddle, The Saturday EveningPost.

Above, PFMA Director CharlesGenuardi, Genuardi’s Supermarkets,cuts the ribbon to open PFMA’s 1973convention.

Left, PFMA opened an office inHarrisburg in August 1979. PFMAChairman Jay Miller, left, joinedPresident Al Vicks, right, and backrow, left to right, Hank Sitko, directorof public and governmental relations;Bill Drayton, PFMA fieldrepresentative; and Dolf Polsenberg,director of special projects; for the

1970s1970s

PFMA formed it first political action committee —FoodPAC of Pennsylvania — in 1976. In 1983, V. JimGenuardi, Genuardi’s Supermarkets, suggested that agolf outing would be a good way to raise money forFoodPAC. Today, FoodPAC hosts six golf outingsacross the state. Top, V. Jim Genuardi and Joe Heisler,Foodland, at a 1985 golf outing.

Above, Walter Rubel, second from left, chairs thePhiladelphia FoodPAC.

As you read the 2002 AnnualReport, you will beimpressed by the depth and

breath of association projects and 2002accomplishments. For the past fiftyyears food industry leaders haveidentified business and legislativechallenges for PFMA staff. Annualreports document our progress inaccomplishing objectives, orsharpening the focus of associationpriorities.

In this 50th Anniversary year, wehave recognized many individualswho have led PFMA since its foundingin 1953. In addition, new programsincluding the following were initiated,improved or expanded in 2002.

•Improvements in communicationprograms include the expansion ofthe web site; improvements in theFood Industry Advisor and otherpublications including, the distri-bution of the Emergency PlanningGuide in May 2002;

•The incorporation of thePennsylvania Pharmacy Councilwas accomplished;

•The founding and election ofofficers for the Loss PreventionCommittee was accomplished;

•The significant geographical expan-sion of Merchants Express MoneyOrder business operations, salesand marketing was completed;

•The incorporation of the DelawareFood Industry Council and hiringof a full-time executive directorwas approved by the councildirectors;

•The rapid expansion of theResponsible Tobacco Sale

Certification Program and themanagement of that non-profitcorporation was directed by theBoard and staff. Similar expansionwas experienced by the ScanningCertification Program and its non-profit Board of Directors, whichcelebrated its tenth anniversary in2002;

•The initiation of legislative projectson tobacco sales, adult beveragesales, health-care reform, businesstax reduction and other topics wereapproved by PFMA directors,Convenience Store Council direc-tors and Legislative Committeemembers.

All association programs are linkedto members and international organi-zations representing all components ofthe food industry. Thus, issues rangingfrom the price of gasoline to the illegalsale of tobacco prod-ucts are researchedand fully communi-cated to the member-ship.

Thank you for yourinvolvement in associ-ation activities and foryour membership.Remember, yourideas will shape thecourse of action forPFMA and theP e n n s y l v a n i aConvenience StoreCouncil in the future.Please continue yourinvolvement and rec-ognize the effort ofthe dedicated individ-uals featured in eachdepartment summa-ry. It is great to be partof the Food Industry

A s s o c i a t i o nteam!

David L.McCorkle

President &CEO

The Second Fifty Years

After 22 years of service, Sue Lentz,executive secretary, has announced herretirement, effective June 30.

David McCorklePresident & CEO

T `xáátzx yÜÉÅ à{x cÜxá|wxÇà

5

T _ÉÉ~ tà HC lxtÜá

36

The Pennsylvania Food Merchants Association officiallybegan during a charter presentation on October 29, 1952at the Lawrence Hotel in Erie. From left, E.W. Haibach,Erie; Al Vicks, Erie; Vince L. Browner, president, NationalAssociation of Retail Grocers, who made thepresentation, and Paul Reitz, DuBois, first PFMAPresident (now known as chairman).

Below, the first officers and directors of PFMA wereelected during the first meeting. Officers seated, from left,Al Vicks, secretary/manager, Erie; Harold Friedman, vicepresident, Butler; Paul Reitz, president, DuBois; andCassius Cook, treasurer, Erie. Directors, standing, W.A.Hudson, Sharon; Stanley Genetti, Hazelton; F.E. White,Erie; J.T. Antos, Clark; and L.E. Jacobs, Gettysburg.

1950s1950s

PFMA Executive Director Al Vicks andhis staff were always seeking new servicesfor members. In 1955, PFMA established itsown trading stamp company, H.O. GoldStamp. Right, Mary Bello, Bello’s Markets,was using the machine at her Erie store in1971. The machine sits on top of the register.

In 1956, the association startedPennsylvania Coupon Redemption Services,providing coupon processing for members.This new service eventually grew to becomethe association’s main financial source,allowing PFMA to expand its staff. Topphoto, a 50s shopper presents her coupons tothe grocer.

BackgroundFoodPAC is a voluntary, non-partisan, non-profit unin-corporated committee composed of various members ofthe food industry. It is organized exclusively to raisefunds for the purpose of advancing and protecting theinterests of the food industry in Pennsylvania. Themoney raised at fund-raising events enables FoodPAC tosupport and endorse political candidates and electedofficials who understand the legislative and regulatoryagendas of Pennsylvania’s food industry.

EffortGolf outings are held in Central, Western, andNorthwestern Pennsylvania, the Reading/Allentownarea, Philadelphia and the Delaware Valley.

ResultThe success of the six golf outings can be attributedsolely to the committee volunteers who dedicate theirtime, energy and resources to their success. Thank you tothe following committee members:

CENTRAL PENN FOODPACScott Hartman, Chairman, Rutter’s Farm StoresScott Karns, Karns Quality Foods, Ltd.Tim Reardon, Giant Food Stores, LLCCharles Yahn, Associated Wholesalers, Inc.

WESTERN PA FOODPACJoe Heisler, Chairman, Lebanon Shops Foodland George Hathaway, Co-Chairman, Giant EagleDan McNabb, Co-Chairman, Lebanon Shops FoodlandDon Brick, SUPERVALU, Pittsburgh DivisionTom Dodson, SUPERVALU, Pittsburgh DivisionGene Tommasi, Giant EagleGene Chabrier, Handee MartsFred Romantine, Giant EagleHarvey Porter, Fike’s DairyTom Volovich, Interstate Brands CorporationMike Cortez, Sheetz, Inc. Vince Bianco, Snyder of Berlin

PHILADELPHIA FOODPAC GOLF OUTING FOODPACWalter Rubel, Chairman, Acme Markets, Inc.Rich Savner, Pathmark Stores, Inc.Grant McLoughlin, Pathmark Stores, Inc. Judy Spires, Acme Markets, Inc.

READING/ALLENTOWNRichard Redner, Chairman, Redner’s Markets, Inc.Ryan Redner, Redner’s Markets, Inc. Eric White, Redner’s Markets, Inc.Joe Della Noce, SUPERVALU, Inc.

DELAWARE VALLEY FOODPACRoy Kipp, Chairman, Clemens Family Market, Inc. Tim Reardon, Giant Food Stores, LLCJack Clemens, Clemens Family Markets, Inc. Walter Rubel, Acme Markets, Inc. Ray Sprinkle, Fleming Companies, Inc.

NORTHWESTERN PAGeorge Arthur, Northwestern Pa. Food CouncilScott Gibson, Hillandale FarmsJack Greenberg, Old Country MarketMike Weber, Smith ProvisionArt Smaltz, Edinboro Giant EagleLuke Lecce, Pepsi Cola

YâÇw@Üt|á|Çz XyyÉÜàá

From left, SUPERVALU’s Gary Zimmerman joins Pat Fergusonand Dick Redner, Redner’s Warehouse Markets, and Dan Hager,SUPERVALU, in supporting the Reading/Allentown FoodPACgolf outing.

From left, Rep. John Evans, joined Troyer Farms’ Darrell Troyer,Country Fair’s Carl Zalewski and PFMA’s Randy St. John at theNorthwestern Pennsylvania Food Council FoodPAC Golf Outing.

35

As part of PFMA’s 50thAnniversary Celebration atThe Greenbrier Resort last

fall, the Communications Departmentcreated a video of PFMA’s rich history.The video highlighted theAssociation’s many legislative andbusiness accomplishments from itsbeginning as a two-county Associationin northwestern Pennsylvania to itsgrowth to a statewide association withbusiness operations spreading acrossthe entire country.

20022002 was a year of innovation, as

many years have been in PFMA’s 50-year history. The GovernmentRelations Department had a number ofaccomplishments (See pages 10 to 15).The most notable was the passage ofHouse Bill 1501 which became Act 112.The Act creates penalties for minors

who purchase orattempt to purchasetobacco products, cre-ates statewide uniformi-ty for new tobacco laws,

and provides an affirmative defensefor retailers who follow “best prac-tices” in the management of theirtobacco sales programs.

Delaware Food Industry CouncilIn 2001, PFMA members in the

Philadelphia area called on PFMA tocreate a Delaware Food IndustryCouncil that would represent the inter-ests of retailers in Delaware. Under thedirection of Melanie Horvath, theDelaware Food Industry Council hasbeen incorporated and has hired MarkKleinschmidt as Executive Director.

Pennsylvania Pharmacy CouncilA second group of retailers also

approached PFMA to form a new asso-ciation to represent pharmacy interestsat the Pennsylvania state capitol. ThePennsylvania Pharmacy Council hasbeen incorporated and is headed byMelanie Horvath.

Continued on the next page

TááÉv|tà|ÉÇ fxÜä|vxá

Randy St. JohnSenior Vice President, Association Services

2002 Marks Year of Accomplishments

The Association Services staff includes from left, Jamie Overmiller, executiveassistant; Ellen Varner, association services secretary; Judy Chilcote, mem-bership database specialist; and Carla Jeremias, director of conventions andmeetings.

6

Above, PFMA offered appreciation to AgricultureSecretary Sam Hayes during the annual conference inMay. From left, PFMA Chairman Jack Clemens, Sec.Hayes, Jennifer Walker and David McCorkle.

exvÉzÇ|é|Çz TvvÉÅÑÄ|á{ÅxÇàá

for Association Services Division

Casey AlexanderLock HavenUniversity

Sponsored by:NWPFC

Tiffany BidwellWest Chester

UniversitySponsored by:

Acme Markets, Inc.

Ken BolickYork College

Sponsored by: Giant Food Stores,

LLC.

Laura BrigandiFranklin & Marshall

CollegeSponsored by:

The Ridge Fund

Kyeretwie BosomtweUniversity of

MarylandSponsored by:

The Ridge Fund

David BrubakerEastern Mennonite


Weis Markets, Inc.

Katie CathermanWilkes University

Sponsored by:Associated

Wholesalers, Inc.

John CioccoRowan University

Sponsored by:Acme Markets, Inc.

Matthew EckhouseHarvard College

Sponsored by: The Ridge Fund

Joseph DeGrazioVillanova University

Sponsored by:Genuardi’s Family

Markets

Megan GilbertPennsylvania State


Sheetz, Inc.

Melinda GilbertUniversity ofPennsylvaniaSponsored by:

Wawa, Inc.

Jeremy GuttmanUniversity of

ChicagoSponsored by:

The Ridge Fund

Amy JaraGannon University

Sponsored by:Northwestern Pa.

Food Council

Joshua HertleinClarion University

Sponsored by:The Ridge Fund

David KowalskiDuke University

Sponsored by:Associated

Wholesalers, Inc.

Michael KowalskiLehigh University

Sponsored by:Wawa, Inc.

Amber LisiUniversity of

PittsburghSponsored by: Giant

Food Stores, LLC

Toni MarchioniHarvard College

Sponsored by: Giant Food Stores,

LLC

Arthur LoderLehigh University

Sponsored by:Genuardi’s Family

Markets

Kathleen McCarterSyracuse University


Thomas McSorleyHarvard College


Cynthia MilinichikPenn State University


Linda MausJuniata CollegeSponsored by:

The Ridge Fund

Matthew NewmanJuniata CollegeSponsored by:

The Ridge Fund

Jennifer MorrinTemple University


2002 Thomas andLaura RidgeScholarshipRecipients

Pennsylvania Attorney General MikeFisher, right, addressed the first annualPFMA/PCSC Food Industry Conference inHershey last month. He and State SenatorJane Earll, left, Republican candidate forLieutenant Governor, joined HandeeMarts’ Peg and Gene Chabrier, center, atthe event.

7

YÉÉwcTV Éy cxÇÇáçÄätÇ|t

Vincent AndersonWawa, Inc.Wawa, PA

George ArthurNorthwestern Pa. Food CouncilErie, PA

Murray BattlemanRichboro Shop N BagRichboro, PA

John BoyerBoyer’s Food MarketOwigsburg, PA

Bill BraceyBill’s ShurSavesMoscow, PA

Judi CasselThe SICO CompanyMount Joy, PA

Gene ChabrierHandee Marts, Inc.Gibsonia, PA

Jack ClemensClemens Family MarketsKulpsville, PA

Joseph Della NoceSUPERVALU, Eastern RegionMechanicsville, VA

Frank EquidoPenMartTunkhannock, PA

Jim FaccendaElizabeth Giant EagleElizabeth, PA

Scott HartmanRutter’s Farm StoresYork, PA

Joseph KearneySunoco, Inc.Philadelphia, PA

Chris LutzEdy’s Grand Ice CreamNorristown, PA

Joseph MarkuszkaJ&D VarietyPhiladelphia, PA

J. Christopher MichaelAssociated Wholesalers, Inc.Robesonia, PA

Lorelei MotteseWakefern Food CorporationEdison, NJ

Bharti PatelApple Check CashingMorrisville, PA

Richard RednerRedner’s Markets, Inc.Reading, PA

Art SmaltzEdinboro Giant EagleEdinboro, PA

Christy SpoaEllwood City Save-A-LotEllwood City, PA

Art Van SlykeVan Slyke’s Food MartMcKean, PA

TreasurerDavid McCorkle

PFMACamp Hill, PA

SecretaryMelanie Horvath

PFMACamp Hill, PA

Co-ChairmanTim Reardon

Giant Food Stores, LLCCarlisle, PA

Chairman, Phila.FoodPAC

Walter RubelAcme Markets, Inc.

Western PennsylvaniaFoodPAC ChairmanJoe Heisler, secondfrom right, thanks JeffKeeton, second fromleft, of Braun’s-Hostessfor his support at theChestnut Ridge outing,as Ed Heisler, left, andDan McNabb look on.

34

Co-ChairmanDan Pastor

Crossroads Convenience,LLC

Annual ConferencePFMA pioneered a new annual

meeting format in May 2002. All ofthe association’s committees met atThe Hotel Hershey over a two-dayperiod. Attorney General Mike Fisheraddressed the group and praisedPFMA for its Responsible TobaccoSales Certification Program, a pro-gram dedicated to preventing the saleof tobacco products to minors.

Secretary of Agriculture Sam Hayesspoke briefly, thanking PFMA forbeing such a good friend to agricul-ture.

Lt. Governor Robert Jubelirer alsospoke during the conference dinner.

Continued on page 8

VÉÅÅ|ààxx `xÅuxÜá

Larry KleiderFirm Security SystemsPittsburgh, PA

Steve KovackMartin’s Trailside ExpressEast Earl, PA

Gary LattaCrowley Foods, Inc.Binghamton, NY

Paul LevisCountry Fair, Inc.Erie, PA

Chris LutzEdy’s Grand Ice CreamNorristown, PA

Edward MartinoEphrata 322 General StoreEphrata, PA

Eric MayPen Fern Oil CompanyDallas, PA

Ken MayKen’s CornerPhiladelphia, PA

Mary McCabeWegmans Food MarketsRochester, NY

Richard McMenaminShopRitePhiladelphia, PA

Dan McNabbLebanon Shops FoodlandPittsburgh, PA

J. Christopher MichaelAssociated Wholesalers, Inc.Robesonia, PA

David MoorePenn Hills FoodlandPittsburgh, PA

Lorelei MotteseWakefern Food CorporationEdison, NJ

Michael MrochekMichael’s Family Market Avonmore, PA

Kevin MullenSUPERVALU, Inc.Belle Vernon, PA

Dan PastorCrossroads Convenience, LLCBelle Vernon, PA

Bharti PatelApple Check CashingMorrisville, PA

Hasmukh PatelOne Stop ShopHarrisburg, PA

Gary PriceHussmann CorporationMt. Laurel, NJ

Cliff RandolphGiant Eagle #624North Cambria, PA

Tim ReardonGiant Food Stores, LLCCarlisle, PA

Richard RednerRedner’s Markets, Inc.Reading, PA

Jim RiedOlean Wholesale GroceryOlean, NY

Walter RubelAcme Markets, Inc.Malvern, PA

Rich SavnerPathmark Stores, Inc.Carteret, NJ

Chris SayboltClemens Family MarketsKulpsville, PA

Bob SchmiederWeis Markets, Inc.Sunbury, PA

Louie SheetzSheetz, Inc.Altoona, PA

Art SmaltzEdinboro Giant EagleEdinboro, PA

Christy SpoaEllwood City Save-A-LotEllwood City, PA

Greg TenEyckSafeway, Inc.Lanham, MD

Carl ThomasThomas StoreUnion City, PA

James ThomasAirport MarketJohnstown, PA

Scott TrotterCreative FinancialNewtown Square, PA

Gerald TroutmanKoppys on the SquareElizabethville, PA

Stephen Van ArsdaleWegmans Food MarketsRochester, NY


Ronnie Volkening7-Eleven, Inc.Dallas, TX

John VuottoGenuardi’s Family MarketsNorristown, PA

J. Bruce WalterRhoads & SinonHarrisburg, PA

Ron WeislogelWeislogel’s, Inc.Fairview, PA

Charles WetzelWetzel’s MarketGlen Rock, PA

Teross YoungFood Lion, LLCSalisbury, NC

33


Constance O’BrienLebanon Valley


The Ridge Fund

Benjamin OsterhoutElizabethtown


The Ridge Fund

Ryan PollickCatholic University


Lori ReighnDuquesne University

Sponsored by: Weis Markets, Inc.

Jonathan RiceUniversity of Md.,

BaltimoreSponsored by:

The Ridge Fund

Brian SavageUniversity ofPennsylvania

Sponsored by: GiantFood Stores, LLC

Stacy ShadelPennsylvania State


Weis Markets, Inc.

Max ShterngelColumbia University

Sponsored by: Acme Markets, Inc.

Edward SmithCornell University

Sponsored by:Acme Markets, Inc.

Janelle ThiesGannon


The Ridge Fund

Yvonne ThompsonGannon


The Ridge Fund

Brantley UsseryUniversity of N.C.,

AshvilleSponsored by:

The Ridge Fund

Barbara WatkinsRutgers University


Melissa WoodRutgers University


Association Services Continues to Serve

Evan WeigandUniversity of

Maryland, BaltimoreSponsored by:

Sheetz, Inc.

Kerri WeirUniversity of

PittsburghSponsored by:

AWI

2002 Thomas and Laura RidgeScholarship Recipients

8

Ridge ScholarshipsIn 2002, PFMA awarded 46 scholarships to

deserving members of the food industry family.In 2003, Ridge scholarships will be available to asimilar number of students.

2003Governor Edward G. Rendell was inaugurated

on January 21, 2003 and with his arrival inHarrisburg comes an entirely new administrativeteam for the state. New cabinet secretaries anddeputy secretaries are currently being appointedand PFMA’s Government Relations staff is busygetting acquainted with new programadministrators.

Pennsylvania’s next fiscal year contains asubstantial projected deficit and PFMA will beworking with the new administration to find waysto balance the budget that are fair and equitable toall Pennsylvanians.

50th AnniversaryPFMA invites all of its members to join us in

Hershey on May 14-15, 2003 for our 50thAnniversary birthday party. All PFMA’s boardsand committees will meet over a two-day periodand we will formally celebrate PFMA’s 50thAnniversary on the night of May 14 with a dinnerand dance. The following morning, Governor EdRendell is the invited speaker for the breakfastmeeting. This year we will honor many of ourmembers with “Keystone Awards” in the goodgovernment and FoodPAC categories.

Food Industry AdvisorIn 2002, the Communications staff

produced six special sections to high-light growth and anniversaries. Theyincluded Ahart’s Markets, Alderfer,Gleason, Merchants Express MoneyOrder Company (MEMO), Penn Maidand Shipley Stores.

The staff also worked to updatePFMA’s web site and assisted the gov-ernment relations staff in developing anew government relations home page.

Ed Conley marked his 20thAnniversary as editor of the FoodIndustry Advisor in February, 2003. In1983, he developed the association’snewsletter into the newspaper tabloidformat that we know today. He hasworked to produce 240 editions of TheFood Industry Advisor and he hasreported on thousands of industryevents throughout Pennsylvania.

We send our congratulations andour thanks for his loyalty and tirelessefforts to publicize all the best newsabout the Pennsylvania food industry.

Richard AineyNew Milford MarketNew Milford, PA

Samuel AndersonPump n PantryMontrose, PA


George ArthurNorthwestern Pa. Food CouncilErie, PA

Jim BaldwinPenn Traffic CompanySyracuse, NY


John BoyerBoyer’s Food MarketsOrwigsburg, PA

Bill BraceyBill’s ShurSavesMoscow, PA

Jeff BrownBrown’s ShopRiteBellmawr, NJ

David CarusoPrice Chopper SupermarketsSchenectady, NY

Judi CasselThe SICO CompanyMount Joy, PA

Gene ChabrierHandee Marts, Inc.Gibsonia, PA

Philip ChaseWaterford JubileeWaterford, PA

Lois CosentiniConvenient Food Mart Scranton, PA

Dennis CurtinWeis Markets, Inc.Sunbury, PA

Douglas DeimlerBeverage Equipment SpecialistSummerdale, PA

George EndrigianDreshertown Shop N BagDresher, PA

Jim FaccendaElizabeth Giant EagleElizabeth, PA

David FarraDavid’s One Stop ShopJohnstown, PA

Howard FaulknerFaulkner’s Country MarketWattsburg, PA

Ruth Ann FunckFunck’s Mini MarketAnnville, PA

Carmen GaloneStop N Shop MarketPhiladelphia, PA

Vincent GastgebHillshire Farm & Kahn’sCincinnati, OH

Kenneth GillinGiant EagleJohnstown, PA

Jeff GoodAmelia’s Grocery OutletNew Holland, PA

Andrew E. GreenbergThe Chartwell Law Offices, LLCNorristown, PA

Richard GuttmanCrossroads Convenience, LLCBelle Vernon, PA

Anika HagensonSUPERVALU, Inc.Minneapolis, MN


Tim HeymanBeaver Falls FoodlandBeaver Falls, PA

Emily HoffmanCreative Distribution, Inc.Mechanicsburg, PA

Bret HoffmasterShipley Stores, Inc.York, PA

Donald HortonDon’s Food Stores, Inc.Boothwyn, PA


_xz|áÄtà|äx

Co-ChairmanMike CortezSheetz, Inc.Altoona, PA

Co-ChairmanRich Savner

Pathmark Stores, Inc.Carteret, NJ

SecretaryJennifer Walker

PFMACamp Hill, PA

32

The Communications staff includes Elizabeth Peroni, director ofcommunications and media relations; Ed Conley, Food Industry Advisoreditor and senior communications specialist; Debi Tolan, new productseditor and communications assistant; Tom Cirino, advertising managerand communications specialist.

and Inform Membership in 2003

The Evolution of the Food Industry Advisor

1960s1970s 2003

PFMA’s first leader Al Vicks published the association’s firstnewsletter, the PFMA Bulletin Service, in the 1950s. In 1974, thenewsletter was named “Advisor.” Ed Conley, editor, publishedthe first Food Industry Advisor in February, 1983.

The Food Industry Advisorcelebrated its 20th Anniversary inFebruary, 2003. The publicationcontinues to offer the latest foodindustry related information toPFMA members. It also reaches abroad audience on PFMA’s website at www.pfma.org.

9



Government Relations Keeps Members

Through lobbying efforts and the work of theLegislative Committee, PFMA and PCSCmembers are constantly involved in the

democratic process. The association actively participatesin the legislative and regulatory process on behalf ofmembers in order to safeguard the well being of the foodand convenience store industries. We monitor andrespond to legislative and regulatory proposals, advancenew legislative or regulatory proposals as necessary, andkeep legislators apprised of trends taking place in the foodand convenience store industries.

Our members also understand the importance of theirrole in the democratic process. They have personal contactwith their government officials and provide crucialdialogue regarding issues affecting the successfuloperation of Pennsylvania’s retail food and conveniencestore businesses.

Members receive updated information on pertinentissues via PFMA’s web site, publications and communica-tion with PFMA staff.

Members should direct any questions regarding currentlegislation, regulations or related issues to the PFMAGovernment Relations Office at 1.800.522.9983 (Pa. only)and 1.800.838.3579 (Nat’l.)

PFMA’s government relations support staff includes, from left,Jamie Overmiller, executive assistant; Jennifer Wiser, legisla-tive secretary; and Ellen Varner, association services secretary.

The new Government Relations Home Page allows membersto easily look-up their legislators by zip code, follow activelegislation and locate resources to assist with questions.

10

Samuel AndersonPump n Pantry StoresMontrose, PA

Robyn Ashbridge-McAnenyAshbridge Oil Co.Johnstown, PA

Herb ChavanneHandee Marts, Inc.Gibsonia, PA

Tom DempseyUtz Quality Foods, Ltd.Hanover, PA

Marcia FoertschGlassmart Food StoresTarentum, PA

Richard GuttmanCrossroads ConvenienceBelle Vernon, PA


Bret HoffmasterShipley Stores, Inc.York, PA


Richard LevinTurkey Hill Minit MarketsLancaster, PA

Dan PastorCrossroads Convenience Belle Vernon, PA

Henry SahakianUni-Marts, Inc.State College, PA

Louie SheetzSheetz, Inc.Altoona, PA

Joseph TripiTripifoods, Inc.Buffalo, NY

ECCE UÉtÜw Éy W|ÜxvàÉÜá

ECCE Xåxvâà|äx VÉÅÅ|ààxx



William BraceyBill’s ShurSavesMoscow, PA

Joseph Della NoceSUPERVALU, Inc.Mechanicsville, VA

Mark FerreraWegmans, Inc.Princeton, NJ

Richard GuttmanCrossroads Convenience, LLCBelle Vernon, PA

Jane HooverJane’s Markets, Inc.Biglerville, PA

Scott KarnsKarns Quality Foods, Ltd.Mechanicsburg, PA

Dan McNabbBaldwin Whitehall FoodsPittsburgh, PA

Ronald OlszewskiFranklin Foods, Inc.Kittanning, PA

Tim ReardonGiant Food Stores, LLCCarlisle, PA

Richard RussellGiant Eagle, Inc.Pittsburgh, PA

Rich SavnerPathmark Stores, Inc.Carteret, NJ

Art Smaltz Edinboro Giant EagleEdinboro, PA

Ray SprinkleFleming Companies NortheastNewark, DE


Jonathan WeisWeis Markets, Inc.Sunbury, PA

Board AdvisorsRon FishPatriot Sales & MarketingValley Forge, PA

Chere KelleyRedner’s Warehouse MarketsReading, PA

Rich McMenaminShopRitePhiladelphia, PA

ChairmanJack Clemens

Clemens Family MarketsKulpsville, PA

Vice ChairmanWalter Rubel

Acme Markets, Inc.Malvern, PA

SecretaryScott Hartman

Rutter’s Farm StoresYork, PA

ChairmanVincent Anderson

Wawa, Inc.Wawa, PA

Vice ChairmanGene Chabrier

Handee Marts, Inc.Gibsonia, PA

SecretaryCarl Zalewski

Country Fair, Inc.Erie, PA

TreasurerJ. Christopher Michael

Associated Wholesalers, Inc.Robesonia, PA

31

PFMA’s government relations team ensures the foodindustry’s point-of-view is relayed to legislators and regu-latory officials. From left, Melanie Horvath, director ofassociation services; Annette Chilson,communications/information specialist; Randy St. John,senior vice president, association services; Jennifer Walker,director of government relations; and David McCorkle, pres-

ZÉäxÜÇÅxÇà exÄtà|ÉÇá

Involved in the Democratic Process

ISSUE BACKGROUND EFFORTS RESULT

Check Cashing

Child Labor

Cigarette Taxes

Diesel Hold Open

The Check Casher Licensing Act, passed inFebruary 1998, requires companies that cashchecks for a fee to become licensed by thestate. This license requires a one-time fee of$500 and an annual renewal fee of $350.Convenience and grocery stores were uninten-tionally included in the new law.

Since the Pennsylvania Child Labor Law’sinception, employers have struggled tounderstand the differences between state andfederal requirements. This has not been aneasy task since Pennsylvania’s law is morestringent in some areas and not as stringent inothers. Different interpretations have alsocreated confusion.

Governor Mark Schweiker advocated a pro-posal to more than triple Pennsylvania’s 31cents per pack cigarette tax to one dollar. Thepublicized goal was to reduce teenage smok-ing while patching up the state’s estimated$1.3 billion dollar budget gap for 2002. Hisproposal would have also placedPennsylvania with 47 other states in taxingchewing tobacco – a fee of 40 cents per pack.

Representative Ron Marsico introducedHouse Bill 1542 to specifically allow for holdopen devices for diesel fuel, which would, inturn, require that customers stay within arequired distance of the refueling site.

The check cashing legislation, sponsored bySenator Hal Mowery (R-31), passed the Houseafter being amended to alleviate the concernsraised by the Pennsylvania Department ofBanking and the check cashing industry. TheSenate concurred in amendments and thanksto quick action by members supporting ourefforts in Harrisburg, PFMA was successful ingetting Senate Bill 460, Printer’s Number 2321,passed to amend the Check Casher LicensingAct before the end of the 2002 legislative ses-sion.

Representative Steil (R-Bucks) introducedHouse Bill 2780, in an effort to makePennsylvania’s law as close to the federal lawas possible to eliminate confusion. This wouldhelp businesses who employ minors under-stand more easily how to comply with bothlaws.

The House Labor Relations Committee held ahearing on House Bill 2780 in the fall 2002,where Mike Cortez of Sheetz, Inc. offered ver-bal testimony and Michelle Murphy of AcmeMarkets submitted written testimony onbehalf of their respective companies and thePFMA membership. Both expressed the needto keep Pennsylvania’s law as close to the fed-eral law as possible to eliminate confusion.They also suggested putting provisions in thelaw to prevent doubling of state and federalpenalties, and distinguish criminal and civilpenalties by the type of violation thatoccurred.

Talking points were distributed to help mem-bers speak with their legislators on this issue.PFMA and members lobbied legislators tofight against the proposal.

PFMA worked with Representative Marsico toadd language to prevent stores from becomingliable for customers who walk away from therefueling site. The bill passed the House andremained in the Senate Labor and IndustryCommittee.

PFMA provided Senator Greenleaf’s staff withinformation about other states’ initiatives on‘drive offs’. Many states (such as Minnesota)had chosen to suspend drivers’ licenses. Otherdrive-off bills that had been introduced includ-

The “agreed to” language requires anyonenot licensed as a check casher to registerwith the Department and pay a $100 annualfee. This compares to the $500 initial fee andthe $350 annual renewal fee as well as thelaundry list of paperwork and financialstatements that would have been requiredwithout this change.

Although the legislation did not pass beforethe end of the 2002 legislative session, thereare plans for it to be reintroduced in 2003.

While chewing tobacco remained exemptfrom taxation, the legislature passed the pro-posed 69-cent cigarette tax increase raisingthe tax to $1 dollar per pack.

The new tax went into effect on July 15, 2002.All retailers and wholesalers were requiredto remit within 90 days the floor stocks taxtaken on that date. Corporate stores had theability to fill out consolidated forms sent outby the Department of Revenue.

Also included was the reduction in commis-sions to cigarette stamping agents. The ratewent down from 3% to 1.25%.

Although the bill “died” in the Senate whenthe 2001-2002 session came to an end,Representative Marsico is having the billredrafted for reintroduction.

11

XÇwÉÜáxw \ÇáâÜtÇvx cÜÉzÜtÅá

Gleason Provides Quality Insurance OptionsGleason Group of Companies –

PFMA Endorsed Insurance BrokerGleason Agency – Property & Casualty InsuranceGleason Financial – Employee Benefits and Financial PlanningGleason Technology, Inc. - GleasonESP

Gleason Agency

The Gleason Agency is thePFMA-endorsed propertyand casualty insurance

broker. Headquartered in Johnstown,with offices in Pittsburgh,Philadelphia, and Harrisburg, Gleasonis a full service commercial insurancebroker providing competitive,customized insurance, safety and riskmanagement products and solutions.

Gleason pioneered a specialty fooddivision more than 20 years ago. Sincethen, Gleason has earned a reputationas the leading insurance broker for thefood industry in the Mid-Atlanticregion and one of six nationallyrecognized industry experts.

The Gleason Food Group,providing services to more than 500supermarket and allied industryclients, is staffed with trainedspecialists who focus strictly on foodrelated accounts includingmanufacturers, processors, wholesaledistributors, retail chains, conveniencestores and restaurants. Gleason’sexpertise in the food arena allowsthem to provide customized, value-added products that meet the uniqueneeds of supermarket retailers andrelated food accounts.

The PFMA-endorsed insuranceprograms include property, liability,workers’ compensation, refrigerationbreakdown, business interruption,crime, auto and underground storagetank coverages.

Gleason FinancialGleason Financial, a Gleason

Agency’s subsidiary, is the PFMA-endorsed insurance broker foremployee benefits and financialplanning programs. GleasonFinancial’s legacy of excellence andcustomer service has successfullyhelped many of its supermarketindustry clients save money andimprove their operations with quality,cost effective disability and benefitprograms.

Gleason’s approach to managingyour benefit financial model isthorough, professional and creative.Gleason has developed GleasonEETrak, a data management trackingsystem that directs all client employeesand family members to contactGleason directly with claims,prescription, deductible and billingissues. Gleason manages and resolvesthe problems saving time forcustomer’s human resources staffwhile providing a better, value-addedand responsive service to employees.

Gleason EETrak provides quarterlyreports of activity to customers – aneffective tool to manage their benefitsprograms.

Gleason Financial services alsoinclude both business and personalfinancial planning including businesssuccession planning, executivecompensation plans, qualified andnon-qualified retirement plans, estateand wealth accumulation planningand investment services.

Gleason TechnologyThe newest member of the Gleason

Group of companies is GleasonTechnology, Inc. GleasonTechnology, Inc., founded in 2002, is

headquartered in Malvern and pro-vides clients with cutting edge appliedtechnology that permanentlyimproves employee behaviors, facilitycleanliness and operational consisten-cy.

Gleason Technology’s primaryproduct is GleasonESP, groundbreak-ing electronic slip/fall preventiontechnology that allows management tocreate consistent store conditionsacross an entire chain. The product hasproven to dramatically reduce thefrequency of slip/fall incidents forsupermarkets, grocery stores andother retailers, in some cases as muchas 88%.

Gleason takes a leading role in thebattle against costly slip/fall claimswith the launch of GleasonESP, theindustry’s first electronic patentedfloor monitoring system.

It is the most efficient, effective, andaffordable system ever designed tocombat expensive and excessiveclaims settlements. Implementation ofthis unique program has provencapabilities to substantially reduceinsurance premiums and improvebottom line costs for the retail groceryindustry.

Seated, the late Robert A. Gleason Sr.,Standing, from left to right, ChrisGleason, President, Jonathan Gleason,Robert A. Gleason, Jr., Chairman/CEO,Rooney Gleason, and Michael Gleason.

30

Continued from page 28The Credit department processed

more than 1,200 new applications forall business services in PFMA. Theapplications processed in 2001 were850. The average turnaround time forthose applications was 1.7 weeks forboth years. The 25% increase involume did not effect the turnaroundtime due to new efficiencies createdwithin the department.

New tools were introduced into theCredit department to reduce the creditexposure inherent in the money orderbusiness. In partnership with theoperational staff in MEMO, the Credit

department developed new reports tomonitor high dollar money ordersales. The department createdprocedures to monitor these reportson a consistent basis to minimize agentfraud. The reports clarify trends inmoney order sales and any aberrationsare researched to determine its cause.Another new tool utilized in 2002 bythe Credit department is the use of anoutside resource to monitor highexposure agents for potential risks.High volume agents are reviewed bythis service to determine changes inpayment patterns of the agents. Thisinformation is passed to the Creditdepartment who then re-evaluates the

Continued from page 25Warehouse Operations

Providing exceptional customerservice as quickly as possible is aprimary responsibility of our entirewarehouse staff. Our technicians areavailable Monday through Friday,8 a.m. to 5 p.m. to answer money orderdispensing equipment questions andassist agents with operator difficulties.The other two main functions of thewarehouse staff are repairing moneyorder dispensers and shipping moneyorder forms and agent supplies. Mostrepairs are handled through our depotservice, however, when necessary wewill dispatch a technician to an agentlocation for immediate problemresolution. Since all of our agents’ salesinformation is transmitted electronicallyto our central operations center, keepingour dispensers up and running and indaily communication with our mainoffice is of utmost importance. Alltechnicians have access to our centraldatabase while addressing agentquestions or problems. All

communications are logged into ourcentral database for future referenceand analysis. Our modern repairfacility utilizes sophisticated troubleshooting equipment to facilitaterepairs and keep our money order

dispensers in proper operatingcondition. Maintaining our equipmentand keeping customer satisfactionlevels high are keys to increasedmoney order sales and agent locationgrowth.



Drive OffLegislation

ElectronicBenefitsTransfer (EBT)

EmergencyPlanning

Representative Dick Hess (R-Bedford, Fulton,Huntingdon) introduced House Bill 976 toallow drivers’ licenses to be suspended uponconviction of gasoline theft. The bill passed theHouse and remained in the Senate JudiciaryCommittee for some time.

ContractThe state’s Electronic Benefits Transfer (EBT)contract expired in 2002 with options for two,one-year extensions. The department andCiticorp have opted into the extension periods.However, the state will most likely beginaccepting requests for proposals sometime thisyear to begin their work on a new contract thatwill need to be in place by 2005.

Electronic RefundsFederal regulations govern the ability of statesto issue electronic refunds to retailers fromclient’s accounts when clerk errors result inmonetary shortages for the retailer.

The Department of Public Welfare (DPW) hasbeen very helpful in working with clients to goback to stores when an error has taken place.They have been retraining county assistanceoffice staff to work with clients to resolve theseissues. Of reported incidents last year, clientscooperated 80 percent of the time. However,since retailers are essentially at the mercy ofclients to have their money refunded, thisrequirement must be changed.

In the fall of 2001, PFMA participated in aconference call with the National Associationof Convenience Stores (NACS) to discussbioterrorism and food tampering. PFMA alsoreceived requests from members for assistancewith handling emergencies.

After a period of stagnation, RepresentativeHess pushed to include the ‘drive off’ lan-guage into House Bill 582 by way of an amend-ment.

ContractPFMA provided written suggestions, in lightof our experience, to the DPW to be consideredwhile negotiating the new contract.

Electronic RefundsDPW is looking at Pathmark’s United StatesDepartment of Agriculture and New JerseyEBT store and forward pilot to see how such asystem might be implemented in Pennsylvaniato allow retailers to “store” information duringdowntime to be “forwarded” when the systemreturns to normal in order to reduce retaillosses.

Emergency Planning Guides were produced tohelp members address crisis managementissues ranging from how to handle fires tohandling anthrax scares.

House Bill 582 was signed into law as Act 116of 2002 on October 2 and includes languagethat would increase penalties for ‘drive offs’and allow for drivers license suspension ofrepeat offenders.

Under the new law, any person convicted ofretail theft of motor fuel may, in addition toany other penalty imposed, be sentenced asfollows:

• first offense, a fine of not less than $100 nor more than $250;

• second offense, a fine of not less than $250 nor more than $500;

• for a third or subsequent offense, pay a fine of not less than $500, or the court may order the operating privilege of the person suspended for 30 days.

Pennsylvania is the 21st state to enacttougher penalties for gas theft.

ContractPFMA is monitoring the status of EBT con-tract negotiations.

Electronic RefundsDPW is working on developing a “store andforward pilot that Pennsylvania retailers canutilize to reduce losses.

The guides were introduced at the firstAnnual Food Industry Conference in May2002. All members were mailed a copy of theguide during the month of June 2002.

12

New Staff and New Credit Tools in Place

Warehouse Staff Provides Exceptional Customer Service

Dan OlivaCredit Manager

Gene Myers, left, and Don Lehman, right, maintain the PFMA office.They received service awards in 2002 for 10 and five years, respectively.Hans Leyer presented them with plaques and thanked them for their hardwork through the years. PFMA recognizes employee service annually.

29

XÇwÉÜáxw \ÇáâÜtÇvx cÜÉzÜtÅá


Food SafetyCertification

Food SafetyMonth

HealthDepartmentRetailer Meetings

Loss PreventionCommittee

Act 131, the 1994 Food Employee CertificationAct, was created to ensure that properpreparation and sanitation methods are usedin retail establishments to prevent foodborneillnesses. PFMA and PCSC initiated andsupported the legislation. Under Act 131, eachstore location must have one supervisoryemployee per store location certified in foodsafety who is trained through a one to two-dayprogram that covers issues such as foodborneillness, time and temperature.

While September has been deemed “FoodSafety Month” on the federal level, it had notbeen deemed as such on the state level.

The Pennsylvania Department of Healthworked in collaboration with its primary con-tractors (selected county organizations thatimplement tobacco prevention and cessationprograms in each of Pennsylvania’s 67 coun-ties) to hold retailer education luncheons formore than 1,000 retailers statewide before theend of June 2002.

Members from across the state met last spring2002 to form PFMA’s first-ever LossPrevention Committee. Both grocery and con-venience stores are represented within thegroup.

PFMA once again advanced efforts to protectthe Food Employee Certification Act to ensuresafe food handling and preparation by foodemployees across the state before the end ofthe 2002 legislative session.

The Food Employee Certification Act was upfor review by way of a Resolution on both theHouse and Senate voting calendars. TheResolution would have prevented the Actfrom going into mandatory compliance on July1, 2003 as it was intended when passed in 1994.PFMA supported mandatory compliance intraining food workers on how to safely handleand prepare food to prevent foodborne illness-es. With vast publicity regarding outbreaks offoodborne illnesses and significant resourcesinvested by our members to uphold safe foodhandling practices, PFMA members feltstrongly that taking this position signified theindustry’s commitment to providing safe,wholesome food to their customers.

Neither the House nor Senate Food EmployeeCertification Act Resolution was considered.Instead, an amendment was added to anotherpiece of legislation to address the issues of con-cern through the regulatory process.

Senator Mike Waugh (R-York) introduced aresolution to have Pennsylvania specificallyrecognize September as National Food SafetyMonth. Other associations such as thePennsylvania Restaurant Association, thePennsylvania Milk Dealers Association, andPenn Ag. Industries also supported the meas-ure and were named in the resolution.

Several local primary contractors shared infor-mation about the purpose of the meetings,which were held to give retailers informationin preparation for the unannounced compli-ance inspections which were to begin full forcein the summer of 2002; and to lay the ground-work for a collaborative, community approachto prevent minors from smoking.

Several goals were discussed to get the groupup and running. The committee focused on thekey issue of organized retail theft that broughtthem together and agreed to initially focus oneducating all groups with a vested interest inloss prevention including PFMA members,law enforcement agencies as well as the public.

The group disseminates and exchanges infor-mation on hot issues via PFMA publications,email and the web site. Sub-committees wereformed to focus on specific issues such asorganized retail theft, bioterrorism and semi-nar development.

The Pennsylvania Department of Agriculturewill be working with PFMA and other groupswho sit on the Food Employee CertificationAct Advisory Board to promulgate newregulations addressing the current trainingrequirements. These regulations must bepassed by July 1, 2004 when the Act willfinally become mandatory for all foodestablishments.

Just in time for September 2002, the resolutionpassed, further solidifying PFMA’s commit-ment to food safety.

PFMA encouraged members to attend themeetings to demonstrate their commitment topreventing the sale of tobacco to minors.

PFMA staff was invited to speak at contrac-tors’ meetings in Lancaster, Delaware andBucks counties, and also a meeting in Eriecounty.

The Loss Prevention Committee is planning aspecial event during the PFMA’s FoodIndustry Annual Conference event inHershey for May, 2003. A special guest willspeak to the committee about organized retailtheft issues including items likely to be tar-geted for theft, methods to reduce theft, legalissues to be aware of and more. A cocktailreception and dinner will follow the meetingwhere a high profile speaker will address theaudience.

The committee is also working with thePennsylvania State Police to implement train-ing on organized retail theft within the StatePolice and Municipal Officer’s curriculum.

13

ZÉäxÜÇÅxÇà exÄtà|ÉÇáY|ÇtÇvx

2002 was a year of evolution forthe Finance Division. Both theAccounting and Credit

departments had personnel changesthat created new opportunities foreach. Karen Wilbert was welcomedinto the division as the Controller andthe credit department was reorganizedand hired Shawn Yohe to fill a CreditAnalyst position.

Aside from the new personnel chal-lenges, both departments experiencedgrowth in serving all other PFMAdepartments. Each department has anopen door policy relating to financialinformation. The Finance divisionworks closely with each PFMA depart-ment to serve their changing needs.

The fiscal year 2002 audit,performed by outside auditors, Mize,Houser and Co., was the best auditPFMA had in recent years. TheAccounting department did a great jobin preparing for the audit and theauditors agreed. The accountingrecords were very clean and neededminimal adjustments.

The Accounting department wasbusy establishing new accounts andprocesses for the new businessescreated by PFMA. The PennsylvaniaPharmacy Council and the DelawareFood Industry Council wereestablished in 2002. Each time a newcompany is created, accounting is onthe front lines setting up all thenecessary accounts and processes foraccurate record keeping. Accountingworks with the appropriate personnelto determine how the documents andrecords for the businesses will flowinto the department.

Also new in 2002 is the imagingprogram in Accounting. All checksand accounts payable records are nowimaged. The imaging process cutsdown the need for space to store paperrecords. Accounting and Credit workclosely to ensure that all new Creditinformation is also imaged properly.

Continued, see New Staff and NewCredit Tools on the next page

Karen WilbertController

Finance Division Evolves in 2002

From left, Wanda Tafun, staff accountant; Stacey Kropp, staffaccountant; Gail Bryner, accounting manager; Samina Zia,administrative/data entry clerk; and Joyce Gnafakis, staffaccountant assistant.

Credit and Collections staff from left, David Bush, credit ana-lyst assistant; Peggy Wright, senior clerk; Joan Brent, creditassistant; and Shawn Yohe, credit analyst.

28



TobaccoAct 112 Passage

Tobacco Sales -NoncomplianceRates Down

Tobacco SaleEducationSeminars

GovernmentRelations Web site

PFMA/PCSC members asked the Associationto help resolve the confusion and ambiguity inPennsylvania’s tobacco laws. As a result, weworked closely with the Governor’s office,elected officials and other business groups toimplement more effective legislation, includ-ing the institution of an affirmative defense.

For the 2002 federal fiscal year, Pennsylvaniawas required to demonstrate that the percent-age of retail tobacco sales to minors did notexceed 20 percent. For the 2001-02 year, theDepartment of Health increased the number ofongoing enforcement and compliance checkscompleted in Pennsylvania and the state’s2002 rate was determined to be 14.5 percent.

In 2001, Pennsylvania’s results, with the mar-gin of error, could not exceed a maximumlimit of 28 percent. The Commonwealth camein just under the limit at 27.9 percent. In 1996when Pennsylvania did its first baseline sur-vey, the non-compliance rates were 50 percent.

States that do not meet the federallyestablished limits risk losing 40 percent oftheir federal substance-abuse prevention andtreatment block grants for the following year.These funds are distributed to counties to payfor drug and alcohol treatment programs.

Due to Pennsylvania’s 1999 Synar check non-compliance rate of 41 percent (based on retailstore sales of tobacco products to minors), thestate had been fined $6.3 million by the feder-al government. Sales-quotas were establisheda decade ago under a federal law that requiresstates to reduce tobacco sales to minors eachyear. Pennsylvania was able to take advantage of aprovision in the 2001 appropriations bill,which allowed states one chance to avoid thefull penalty of non-compliance by increasingthe tobacco enforcement and education budg-et. So the resulting fine of $6.3 million was 11percent of its $58 million block grant of which$23.2 million could have been taken. With an estimated $5.8 million earmarkedtoward retailer education, GovernorSchweiker launched a statewide campaign onApril 5, 2002 aimed at curbing tobacco sales tominors. In addition to the television spots,radio and newspaper ads were utilized.

In order to provide PFMA members with thebest Government Relations tools available, anew Government Relations homepage wascreated for the PFMA web site.

In little more than two years, House Bill 1501amended Pennsylvania’s tobacco statutes intoone law (Title 18, Section 6305), and wassigned by Governor Schweiker on July 10, 2002as Act 112 of 2002. The new law went intoeffect on August 8, 2002.

Association members proactively contributedto this improvement by participating in theResponsible Tobacco Sale CertificationProgram (RTSCP), a voluntary program aimedat preventing tobacco sales to minors. The pro-gram collects sales data in order to learn howto prevent illegal sales in the future.

PCSC and PFMA members hosted statewidevisits for legislators to demonstrate howimportant the prevention of underage tobaccosales to minors is to retailers. PFMA suggestedthese programs as a way to support GovernorSchweiker’s statewide campaign aimed atreducing the sale of tobacco products tominors. Retailers wanted to educate lawmak-ers and their staff on their current tobacco poli-cies and training procedures.

After carrying out extensive research on themost effective elements to include within thenew site and contracting with VOCUS to cre-ate membership advocacy features including“Find your Legislator and Issue Tracking”capabilities, a draft site was developed.

In addition to pre-empting local ordinances,the law offers an affirmative defense forretailers who train their clerks to not selltobacco products to minors, who for the firsttime in Pennsylvania, are held responsible forattempting to purchase tobacco. Under thelaw, minors purchasing or attempting to pur-chase tobacco products must now participatein tobacco education programs, lose theirdriving privileges, or be fined.

Educational information packets outliningthe provisions of Act 112 were sent to allmembers and posted on the PFMA web site.

In October 2002, Governor Mark Schweikerannounced that there had been a significantdrop in the number of stores and vendingmachine locations selling tobacco products tominors. The results were from random, unan-nounced inspections of Pennsylvania retail-ers conducted the summer of 2002 by thestate Department of Health.

The 2002 inspections illustrated a reductionin the percent of tobacco products illegallysold to minors from 27.9 percent in 2001 to14.5 percent in 2002.

The educational programs hosted includedinformation on the store’s tobacco policiesand employee tobacco training. Otherexamples of information that retailerselaborated upon included: the location oftobacco products in the store, electronic aidsto prompt for identification verification,tobacco signage, secret shopper programsand rewards/punishments for clerks whopass or fail a compliance check.

The new Government Relations web site wasunveiled in October 2002 and has since gone“live.” The site includes plenty of newoptions including improved memberresources and links to individual homepagesfor Electronic Benefits Transfer, Legislative,Loss Prevention and Food SafetyCommittees. A mailing comprised of newidentification cards and “log in” informationis slated to be mailed to the PFMA member-ship in the Spring 2003.

14

Because of the extreme relia-bility of IBM AS/400s,research shows that busi-

nesses face what is called planneddowntime much more frequentlythan unplanned downtime. PFMA isno exception and because our busi-ness relies very heavily on the avail-ability of its computer systems, busi-ness recovery was a primary focus for2002. With this focus came some sig-nificant achievements along withsome interesting challenges.

At the start of the year, weaddressed data communication issuesthat were previously preventing ourmain headquarters from communicat-ing properly with our warehouse orwarm site location. This was a majorhurdle as our plan was to relocate ourmirrored computer system to thisfacility. With the cooperation of ourlocal telephone carrier and outsideconsultants, we were able to over-come this obstacle and were then ableto physically relocate the mirroredsystem to its new home.

The second step involved theinstallation of the software that wouldbe responsible for replicating all datafrom our headquarters computersystem over the data communicationline to the mirrored computer system.Additionally, training of our dataprocessing staff was conducted sothat in-house staff could supportongoing maintenance. By December,we were prepared to conduct our firstplanned test. The test proved to bevery educational and quite successful.We determined that in the event of adisaster (big or small), we are able toconduct our business with keypersonnel with very minimalinterruption to our customers andclients. Perhaps the biggest benefit ofthe set up of the mirrored system isthat we are now able to provide ourMEMO agents 24-hour customerservice. Something we take greatpride in.

The data processing group islooking forward to the challenges thatare on the horizon, as we continue to

look for new technologies to betterserve the association and ultimatelyour members.

Wtàt cÜÉvxáá|Çz

Beth MullenVice President,

Data Processing

PFMA Systems Ready in the Event of Disaster

The Data Processing staff provides programming and systems support toPFMA and its business services. From left, Scott Thomas,programmer/analyst; Chuck Harber, senior programmer/analyst; and JoeKibe, IS technician.

Vivian “Lou” Brashears provides a professionaldemeanor and pleasant smile to callers and visitors atthe PFMA office in Camp Hill.

27

ZÉäxÜÇÅxÇà exÄtà|ÉÇá


Unattended Gas Pumps

Tort Reform

UndergroundStorage Tanks

WIC (Women, Infants & Children)

Representative Sam Rohrer (R-Berks) intro-duced House Bill 1724 to allow for unattendedgas pumps. The legislation generated attentionto the overall issue and it was discovered thatthe marketplace had changed significantlysince regulations were passed. Therefore,members had various questions about whatfueling situations were permitted inPennsylvania.

The Fair Share Act, Senate Bill 1089, was intro-duced to reign in the number of lawsuits andthe high cost of awards while maintaining therights of legitimate victims.

The Underground Storage Tank IndemnificationFund (USTIF) Board voted at their September12, 2002 Board Meeting to increase the capacityand gallon fees for the 2003 billing year.

Several factors led to the increase. Onehundred million dollars in available fundswere taken from the USTIF to strengthen theGeneral Fund. This transaction was not subjectto the approval of the USTIF Board. Inaddition, the Board’s decision to increase feeswas a result of the findings of an annualactuarial study that indicated that the increaseis necessary for the USTIF to continue toprovide coverage for eligible releases fromunderground storage tanks. It was found thatpast claims were more costly than anticipatedand available funds would not fully coverprojected future claims.

Many PFMA members have found it difficultto get into and stay in the Pennsylvania WICProgram due to the Program’s current struc-ture. As a result of efforts by PFMA to reformthe program, the Pennsylvania Department ofHealth (DOH) formed a WIC Vendor WorkingGroup.

PFMA compiled research that was disseminat-ed to the PFMA Board, Convenience StoreCouncil and the Legislative Committee forfeedback. A hearing on House Bill 1724 tookplace on Thursday, July 12, 2001 where indi-vidual members testified on behalf of theirrespective companies.

PFMA later asked the Department of Laborand Industry (L&I) to provide an answer to thequestions: “What is open to the public?” and“What is not open to the public?” The goal wasto provide members with clear guidelinesabout the use of unattended (no attendantpresent) self-serve gas pumps by customers.

The proposed changes, which PFMAsupported, included a provision stating thatjoint and several liability would still apply toany defendant found 60% or more liable forcausing an injury. It would not apply insituations where a defendant had a lesserdegree of responsibility. Under the previouslaw, defendants found liable for even a tinyfraction of the damages might have beenforced to pay the entire judgment if otherdefendants were bankrupt, or failed to carryinsurance.

PFMA is working with the USTIF Board to benotified in a more timely manner of futureUSTIF changes. PFMA supports the concept ofthe fund as well as the activities of the Board toensure its solvency.

PFMA and representatives from themembership participate with the DOH inongoing discussions within the WIC VendorWorking Group to advocate program changeson behalf of members. Steve Brown, and representatives from Giantand Weis, along with PFMA staff memberscontinue to work with the Department ofHealth to reform the WIC program. TheDepartment of Health is willing to relinquishthe idea of having a fixed number or WICvendors in exchange for a new compensationformula, which would limit the size of WICreimbursements to retailers.

PFMA members asked the association staffto coordinate a meeting with Senator GibArmstrong (R-York), chairman of the SenateLabor and Industry Committee, to seek hisassistance in answering questions aboutunattended fueling. Legislative Committeemembers were asked to participate in themeeting. As a result, a meeting was held inNovember with the Senator, his staff, PFMAmembers and an attorney from L&I. Theattorney stated that any operation offeringgas for sale to the public must be attended.Members explained their different types ofoperations and as a result, L&I’s attorneyagreed to convene a meeting in early 2003with PFMA members in an effort to establishup-to-date guidelines regarding the varioustypes of fueling situations permitted by law.L&I then offered a draft amendment to theregulations. This draft is being reviewed byPFMA’s Legislative Committee for com-ments. The draft will then go through thenormal Independent Regulatory ReviewCommission (IRRC) process where it willreceive full public review.

The Fair Share Act was signed into law byGovernor Mark Schweiker on June 19, 2002.

Effective January 1, 2003: •The Capacity Fee became

$0.075 per gallon of capacity.

•The Gallon Fee became $0.01 per gallon effective on all deliveries.

PFMA’s Retail WIC Advisory Committeemet with the Department of Health WICstaff in October 2002 to discuss the finalversion of regulations, which will eliminateslots from the WIC program. This change isa result of two years of work betweenPFMA members and the department. Theregulations should move quickly throughthe IRRC regulatory process.

15

cxÇÇáçÄätÇ|t VÉâÑÉÇ exwxÅÑà|ÉÇ fxÜä|vxá

Pennsylvania Coupon RedemptionServices, Inc. (PCRS), whichhas been in operation since

1956, is the association’s oldestbusiness service. It is also the largestretail coupon clearinghouse ownedand operated by a retail association.

More than 900 retailers inPennsylvania and adjoining statesentrust their coupon processing needsto PCRS.

PCRS provides a competitivelypriced, superior quality redemptionservice that is geared toward meetingthe needs of the independent foodretailer. Features of the programinclude:

• Fast and accurate processing that uses innovative scanning technology;

• Prompt payment for the full face value and 8 cent manufacturer handling allowance for all coupons redeemed;

• Three payment plan options (2, 10 & 20 working days) for maximum convenience and flexibility;

• Reimbursement for inbound shipping and insurance;

• No hidden fees, service charges or volume minimums;

• Experienced & professional customer service support;

• A commitment to obtaining fair treatment for independent grocers in the complicated redemption process.

The profits earned from PCRSoperations are returned to theassociation to help offset the costs ofother PFMA programs, providingmembers with added value for eachcoupon submitted for processing.

PCRS, through its agreements withInternational Outsourcing, alsoprovides guest clearinghouse servicesto 21 state food industry associationsand participates in the national RapidPay coupon program. Revenuesgenerated from these programsprovide additional funding for PFMAservices.

PCRS exceeded its financialobjectives in 2002. Major projects,including the final phase of the guestclearinghouse program expansion,were completed in 2002. Cost controlinitiatives, such as streamlining PCRS’coupon receiving operation andrevising chargeback documentationwere pursued as well. Additionally,staff reviewed and updatedprocedures documentation anddisaster recovery plans to ensurecontinuity of the PCRS operation inthe event of a disaster or otherunanticipated problem.

Autumn ThomasVice President of

PCRS and Special Projects

PCRS Provides Superior Redemption Service

Pennsylvania Coupon RedemptionServices staff members Laurie Savoy,account manager; and Peggy Tyra,accounts payable analyst, provideexperienced and professionalcustomer service and support.

26

She would be more than happy tomake sure that person is contactedpromptly regarding PFMA.

For more information on PFMA andour services please call our office orvisit our web site at www.pfma.org.

FacilitiesBoth of our facilities are staffed by a

well-trained, highly professionalgroup of employees. We all share thesame goals-to provide PFMA membersand business service customersexceptional customer service.

During the past year, we installed anew energy management system andretrofitted all of our lighting at ourMumma Road office. A combination ofboth has resulted in annual savings inexcess of 20% of our major utility bills.Cost savings and efficiency ofoperation are just some of the waysPFMA is able to offer services atdiscounted, competitive rates. We urgeyou, as PFMA members, to takeadvantage of the many programs andservices we offer.

Continued, see Warehouse Staff, page 29

WxÄtãtÜx YÉÉw \ÇwâáàÜç VÉâÇv|Ä

Insuring a smooth rollout ofDelaware’s EBT program andimproving the WIC process for the

First State’s food merchants wereitems at the top of the ‘to-do’ list ofrecently hired Executive Director,Mark Kleinschmidt. In addition toaddressing WIC and EBT issues, otheritems demanding the new executive’simmediate attention included launch-ing a Political Action Committee(PAC) and organizing two fund-rais-ers that netted the council more than$40,000. Since incorporating, manyindependent and chain food storeshave joined the council and meaning-ful work continues on issues pressingthe industry. Without a doubt, the

Delaware FoodIndustry Council has‘arrived’ on Delaware’spolitical front and isestablishing its pres-ence with theAdministration andthe legislators.

EffortsIn September 2002,

the Board of Directorsmet to identify and pri-oritize their legislativeand regulatory issues.Some of the issues iden-

tified included modifyingweights and measureslaws; implementing andimproving the civil recov-ery procedure for badchecks and shoplifting;lowering workers’ comprates and representing theindustry on pharmacy

issues. Results

As a result of their outreach andinvolvement, council members havemade inroads with the WIC programand the EBT rollout. Several meetingswith the WIC administrator andDelaware Health and Human SocialServices staff have yielded positiveresults including agreements by theadministrator to: disclose, upon theretailer’s request, the number ofavailable slots in a catchment area;provide an additional training“upstate” to accommodate the morenorthern members; and, permit oneretailer representative rather than twofrom the same store to attendmandatory meetings. Similarly,several meetings with the EBT projectdirector and the vendor have alsoproduced positive discussionsregarding manual vouchers,scheduled maintenance and responsesto outages. Members have also had anopportunity to provide input into theEBT training video.

Meetings with the Secretary ofHealth and Human Social ServicesDepartment and the State’s Secretaryof Public Safety have enabled councilmembers to educate policy makersabout issues ranging from thechallenges presented by the WIC andEBT programs to the retailers’ effort toprevent the sale of tobacco to minors.

DFIC is fast becoming known as anorganization whose members supportcommunity efforts. In 2001, the DFICteamed-up with local groups insupport of the Check Out Hungerproject and the Earned Income Tax

Mark KleinschmidtExecutive Director

Delaware Food Industry Council

DFIC Conducts Meaningful Work on Issues

Top left, The first annual Delaware Food Industry Council Golf Outingwas held at DuPont Country Club in Wilmington, Delaware, in July tosupport legislative efforts in the First State. From left, Rich Savner,Pathmark; David McCorkle, PFMA; Larry Davis, Ed Piechowski andBob Williams, all of Pathmark.Left, Mark Kleinschmidt, DFIC; Rich Kenny, DFIC chairman; and WaltRubel, Acme Markets, enjoy the day on the links.

16

PFMA Sales Representatives

George BartellSouth CentralPennsylvania

(610) 987-3477

John JonesNortheastern PA/South Central NY

(570) 474-5162

Terry QuigleySouthern NJ/

DE/MD

(856) 228-2848

Ken SweeneyNorthwestern PA/

Ohio

(814) 454-3844

Jim DunkleCentral PA/

Western MD/Northern WV

(814) 696-3375

Ken DeeNorthern NJ/

Long Island &New York City

(732) 409-7212

Mark DitlowPhiladelphia &

DelawareCounties

(215) 934-6963

Mac DixonVirginia/

Washington, DC &TN

(804) 288-0606

Jim HagerNorth Carolina/South Carolina

(910) 484-5569

Scott WhelanCT/MA/ME/

NH/NY/RI & VT

(860) 871-5954

John Rodgers, warehouse manager,standing fourth from left, oversees thewarehouse operations. The staff includesseated from left, Toby Bradbury, machinemaintenance technician; Jen Tolbert,shipping/data entry clerk; and DavidUlsh, machine maintenance technician.Standing, from left, Cameron Wilkinson,Matt Sholley and Kevin Null, machinemaintenance technicians; John Rodgers,warehouse manager; Rex Hutzell,machine maintenance technician; JohnDrennan, shipping/data entry clerk; BobOmmert, shipping clerk; and HowardAldis, machine maintenance technician.

25

ftÄxá? `tÜ~xà|Çz 9 Ytv|Ä|à|xá

National Expansion Plan and Member Growth

cxÇÇáçÄätÇ|t c{tÜÅtvç VÉâÇv|Ä

At the request of PFMA mem-bers operating pharmacies,PFMA was asked to consider

representing the legislative and regu-latory issues facing pharmacies. Afterseveral meetings, stakeholders adopt-ed by-laws and agreed to incorporatethe new council. In October 2002, thePennsylvania Pharmacy Council (PPC)was incorporated and the councilbegan identifying and prioritizing itslegislative agenda.

EffortsThe Department of Welfare’s

(DPW) initiative to reduce theMedicaid reimbursement formula topharmacies was one of the first issuesthe council addressed. Councilmembers agreed to voice theiropposition to DPW’s proposedregulations by submitting comments tothe Independent Regulatory ReviewCommission (IRRC), DPW, and toHouse and Senate committee members.

The second most prominent issueimmediately facing the newly-formed

council was the General Assembly’sconsideration of HB 751, legislationwhich, for the first time inPennsylvania, would allow pharmaciststo administer injectable medications topatients 18 and older. And finally, theHouse’s passage of HB 968, requiringthe certification of pharmacytechnicians, demanded the attention ofPPC members.

ResultsIRRC cited PPC’s objections in its

comments and listed several reasonswhy DPW needed to re-examine itsproposed regulations including theDepartment’s failure to comply withthe mandate of Act 53 of 1996,requiring that DPW conduct anindependent survey of drugacquisition costs or dispensing feeswithin the Commonwealth. In light ofthe pending Pennsylvania budgetdeficit and the consensus amonglegislators and the Administration toexpand the PACE/PACENETprescription program for the elderly,

PPC staff continues to monitor theproposed regulations.

HB 751 was signed into law and isnow Act 102. Currently, PPC interestsare represented on the state Board ofPharmacy’s workgroup, a panelworking to promulgate regulations forthe state’s new Pharmacy PracticesAct.

Finally, HB 968 passed the Housebut died in the Senate at the close ofthe 2001-2002 legislative session. Thelegislation is expected to be re-introduced and PPC staff is workingwith stakeholders to improve thebill.

2003This year, the Pennsylvania

Pharmacy Council will host its firstfund-raiser on May 14 at the CountryClub of Hershey.

For more information on thePennsylvania Pharmacy Council,contact Melanie Horvath, executivedirector, at 800.522.9983 or email herat [email protected].

New Pharmacy Council Serves Member Needs

The Pennsylvania Pharmacy Council (PPC) formed in 2002. Members met several times at PFMA’s offices.Standing is Melanie Horvath, the council’s executive director. Seated, from left is: Fran Soda, Pathmark,Christy Spoa, Ellwood City Hospital, Jennifer Welsh, Clemens Family Markets Pharmacy, and MichaelHamilton, Acme Markets.

17

cY`T Uâá|Çxáá fxÜä|vxá

The year 2002 was anotherbusy year for PFMA and ourbusiness subsidiaries. Our

biggest push this past year was withthe national expansion of MerchantsExpress Money Order Company(MEMO). Bryan Hannan, our nationalsales manager, has been quite busycoordinating various solicitationefforts throughout all newly licensedstates. Since the inception of MEMO in1986, most of our sales effort was on adirect basis throughout our marketingterritory. With our rapid geographicexpansion, we have developed manynew ways to conduct our businesswithout sacrificing our personalcontact with our money order agents.Additionally, we have cultivated newbusiness relationships with strategicpartners who are focused on futuregrowth to the same degree we are.Two of our largest strategic partners,Food Marketing Institute (FMI) andAmerican Payment Systems (APS)each represent a large customer base towhom we can market our services.

As demographics shift, we continueto develop business relationships withemerging minority groups to ensurethat our industry voice represents all

members of the retail and wholesalefood distribution industry. Maintainingcontact with all members of our indus-try is a primary responsibility of ourmember services representatives aswell as everyone on the PFMA staff.

The MEMO gift certificate programcontinues to grow yearly. Novemberand December are generally our bestmonths for gift certificate sales and thisyear was no exception. Many of ourmoney order agents who add giftcertificates to their business offeringare pleasantly surprised at the volumeof gift certificates they sell. Manymoney order agents who take on giftcertificates even experience an increasein their money order sales. Please callyour regional member servicesrepresentative or our main office formore information on our GiftCertificate program.

Later this year, we will be conduct-ing a membership drive to attract newmembers to our association. As busi-nesses change hands and new busi-nesses open, not everyone is aware ofthe Pennsylvania Food MerchantsAssociation and the many services weprovide. Building our membershipbase and encouraging our members to

participate in associ-ation activities anduse our businessservices is vital toPFMA. If you areaware of a new retailfood store openingnearby or if a busi-ness acquaintanceenters the retail orwholesale food indus-try, please give BeckyHarner a call at (717)731.0600 or (800)543.8207 ext. 5511,and let her know.

Cont. on next page

Hans LeyerVice President of

Sales, Marketing & Facilities

MEMO’s sales staff is supported by Darlene Hoffer,marketing assistant; Becky Harner, administrativeassistant; and Michele Weaver, sales coordinator.

Bryan Hannan, national sales manager, right,and Joan Stare, marketing representative, left,are working to bring MEMO’s products into newstates.

Sales and Marketing Focuses on MEMO

24

In 1999, at the request ofPennsylvania Food MerchantsAssociation and Pennsylvania

Convenience Store Council members,Pennsylvania’s Attorney General,Secretary of Health, PhysicianGeneral, as well as representatives ofregulatory and law enforcementagencies, tobacco-use preventioncoalitions and retail companies held aseries of meetings to discuss ways toimprove compliance with tobacco salelaws. Association membersrecognized that statewide training andenforcement standards were neededto help retailers prevent tobacco salesto minors.

The result of the group’s work wasthe creation of the ResponsibleTobacco Sale Certification Program(RTSCP), which was incorporated inJanuary of 2000. A Board of Advisorsoversees the RTSCP and has as itsmembers many of the people whodeveloped the program. ScottHartman, Rutter’s Farm Stores, is theBoard’s Co-Chairman and TimReardon, Giant Food Stores, isSecretary. PFMA’s Autumn Thomasserves as the program’s President.

The goal of the RTSCP is to reducethe use of tobacco by minors bypreventing the sale of tobaccoproducts to anyone under 18 years ofage. The voluntary program alsoaims to assure consumers andgovernment officials of participatingretailers’ commitment to enforcingtobacco sale regulations.

The RTSCP establishes guidelinesfor member stores to follow aimed atpreventing illegal tobacco sales andimproving compliance with tobaccosale regulations. These “bestpractices” standards are detailed inthe program’s Operations Manual.Program participants are required tofollow appropriate tobacco sale

policies, display signage stating that itis illegal to sell tobacco to minors andfor minors to attempt to purchasetobacco, and have a specific trainingprogram for employees concerningtobacco sale policies and laws.

Periodic unannounced in-storeinspections, where youth secretshoppers between 15 and 17 years ofage attempt to purchase tobacco, areused to test compliance. Additionally,clerks are interviewed duringinspections in an attempt to betterunderstand why they do or do not selltobacco to minors. Inspection data,including test outcomes, clerk andbuyer profiles, clerk interviewresponses, retailer training programspecifics, and store demographics, arecompiled and analyzed in an effort toenhance retailer best practices tobaccosale policies and training programsover time.

Certification is awarded to storesthat have implemented programrequirements and do not sell tobaccoto the youth secret shopper during thecompliance checks.

The RTSCP started operating in2001. Current participatingcompanies include: CrossroadsConvenience LLC, Giant Food Stores,Handee Marts, Pathmark, Rutter’sFarm Stores, Shipley Stores, Sunoco,and Turkey Hill Minit Markets. ThePennsylvania Convenience StoreCouncil and the Norristown,Pennsylvania City Council have alsoendorsed the RTSCP. To date more

than 1,700 tobacco sale complianceinspections have been performed inmember stores across Pennsylvania.

It is expected that the program willgrow significantly. RTSCP staffcontinues to focus on building andmaintaining a statewide network ofinspection teams to accommodate theincreasing program membership.Other projects include analysis of theinspection database, copywriting andtrademarking program materials andcreating a RTSCP newsletter. RTSCPstaff also participates in otherimportant organizations and eventsdedicated to preventing the sale oftobacco to minors, such as variouslocal and state tobacco-free coalitionsand the Responsible Retailing Forum.

Any retail company that sellstobacco is eligible to participate in theRTSCP. Stores will be charged aninitial enrollment fee and separate on-site inspection fees for testsperformed. For more information,contact Missy Wellington at 800.543.8207or [email protected].

exáÑÉÇá|uÄx gÉutvvÉ ftÄxá VxÜà|y|vtà|ÉÇ cÜÉzÜtÅ

RTSCP Continues to Attract New Members

Missy WellingtonProgram Manager

18

`ÉÇxç fxÜä|vxá

MEMO’s research anddevelopment objectiveshave enabled the business

to offer new business service productsto expanded markets through variousbusiness alliances with national firmsoffering diverse products. The strate-gic alliances with both the FoodMarketing Institute (FMI) andAmerican Payment Systems (APS)entered into last year are bothprogressing. FMI has endorsed partic-ipation in the MEMO money orderprogram with their members throughmailings, conferences and other orga-nizational activities. MEMO will beparticipating with an exhibit featuringits product mix at the Annual FMIFood and Technology Show inChicago. Many of the PFMA membersand MEMO agents have taken advan-tage of the opportunity to utilize thewalk in bill payment services of APS.The program offers retail outlets bothcontracted and non-contracted servic-es. The non-contracted service enablesthe consumer to pay virtually any billat the retail outlet for a small fee. APSis also the largest contracted bill pay-ment company in the U.S., havingestablished contracts with several hun-dred utilities that allow them to set upoutlets to accept utility payments fromconsumers for free or a very small fee.Those retailers interested in the billpayment services of APS can contacteither their member services represen-tative or the MEMO office for moreinformation. MEMO continues toexplore additional strategic allianceopportunities that are a good fit withthe overall goals and objectives of thebusiness.

Additionally, MEMO began a pilotprogram offering prepaid cellularairtime and long distance callingcards at several retail outlets in centralPennsylvania. The program offers a

variety of long distance calling cardsas well as airtime for all major wirelesscarriers, including Voicestream,Verizon, AT&T, Cingular, Alltel, andTracfone. The products are soldthrough a point of sale terminal, whichprints the information the consumerneeds to place long distance calls orrecharge their cellular phone withadditional airtime at the time of sale.This eliminates the need to stock cardinventory of either product. Results ofthe pilot have been positive andMEMO is expanding the pilot in orderto further evaluate the potential bene-

fits of the products to our membersand business service customers.

The MEMO R&D committeecontinues to evaluate new productsand services to offer members andbusiness service customers. As part ofthe ongoing evaluation of variousproducts and services, effective marketresearch techniques are practiced todevelop a database of information onthe demographics of consumers andretailer locations, which also enablesthe firm to assess the market demandfor specific products and servicesbeing considered.

R&D Develops New Business Service Products

Research and Development efforts are lead by Ken Augustine, research anddevelopment director, standing; Hans Leyer, vice president of sales, market-ing and facilities, and Tanya Butler, vice president, money services. The groupmeets regularly to provide valuable input for potential business services.

23

Continued from page 21MEMO has effectively

implemented strategic planningobjectives with four strategies thatemphasize concentrated growth;continuous improvement; newproduct development; and marketdevelopment. The corporate missionstatement reflects the overall goal ofthe business which is: “To providehigh quality, low cost money-basedproducts and services to the membersof the Pennsylvania Food MerchantsAssociation and additional agents ofthe related business subsidiaries. Thebusiness will focus on offering newproducts and services that provide aprofit contribution to the PennsylvaniaFood Merchants Association,consistent with the philosophy ofimproving the public image,effectiveness and profitability ofcompanies in the retail and wholesalefood distribution industry.” MEMOhas stood by its mission andcorporate philosophy by dedicatingresources to achieve the strategicobjectives. The business isenthusiastic about serving theincreased number of consumers inthe targeted markets and offeringproducts and services with thebreadth and versatility of theproducts accommodating bothagents and consumers. Theenvironmental factors both externaland internal are continuouslyevaluated to assure the business haseffective and efficient policies andprocedures implemented thatsuccessfully accomplish its strategies.

MEMO looks forward to theprojected growth opportunities in themoney services industry and wouldlike to express appreciation to itsstakeholders who continue to supportthe goals and objectives of the

Since 1991, the ScanningCertification Program hashelped participating retailers

provide price accuracy and appro-priate pricing information to con-sumers in Pennsylvania and sur-rounding states. The main objectivesof this voluntary price accuracy pro-gram are to clearly identify for cus-tomers the prices of all items in thestore and to ensure that customersare charged the lowest advertisedprice at checkout.

Program guidelines require storesto ensure that shelf tags are accurateand legible, that scanners areprogrammed to charge the lowestadvertised price, that appropriateemployees receive price accuracytraining, and that consumers receiveinformation about their rights asscanning store customers.

Program auditors conductunannounced in-store inspections tomeasure compliance with programstandards. Certification is awarded tostores who have implementedprogram requirements and achieve anaccuracy rating of at least 98 percenton a random sampling of items.

The Scanning Certification Programprovides public recognition for storesthat achieve and maintain a high levelof scanning and pricing accuracy.Adherence to program requirementshelps prevent overcharges that erodeconsumer confidence and under-charges that cost stores money.Certified stores also fulfill thePennsylvania state requirements ofAct 155 for the annual inspection ofcheckout scanning systems.

The program has grownsignificantly in the last 11 years.Membership has risen from 10 studyparticipants in 1991 to more than 1,200supermarkets and convenience storestoday. One hundred and thirty-three

inspections were performed in 1993.Ten times that number of inspectionswere performed in the last 12 months.

Most importantly, the ScanningCertification Program is meeting itsmain goal of improving priceaccuracy. The average supermarketprice accuracy for member stores hasincreased from 96.9 percent in 1991 to98.9 percent in fiscal 2002. Detailedinspection results were recentlypublished in the program’s 2001-2002annual report.

The Scanning Certification Programhas received nationwide attention forits proactive approach to priceaccuracy issues. The program’s staffand Board of Advisors have workedwith industry groups and governmentagencies on various pricing andscanning issues. The program is alsorecognized by the Commonwealth ofPennsylvania as an approved certifierfor Act 155 price verificationinspections.

As it continues its second decade ofoperation, the program remainscommitted to its mission to increaseparticipation, help stores work toward100 percent price accuracy, and ensurecustomer satisfaction with checkoutscanning.

The Scanning Certification Programwas developed by a Board of Advisors,

which continues to set policy andoversee all aspects of the program.

The current members of the Boardof Advisors are:

Edward D. ArnoldiPennsylvania Association of Weights & Measures

Mary BachConsumer Advocate

Murray BattlemanRichboro Shop ‘n Bag

Ken DeitzlerPennsylvania Department of Agriculture

Dr. Drew HymanPennsylvania State University

Ric LeBlancPennsylvania Office of Attorney General

David McCorklePennsylvania Food Merchants Association

Kevin MullenSUPERVALU, Inc.Pittsburgh Division

Peg RhodesUnited Food & Commercial Workers

Steve SwanRetalix

Bill Wolf C & L Retail Systems

F. Dolores YuckenbergWest Shore Senior Center

fvtÇÇ|Çz VxÜà|y|vtà|ÉÇ cÜÉzÜtÅ

SCP Helps Retailers Insure Price Accuracy

19

cY`T Uâá|Çxáá fxÜä|vxá

Pat Kilgour, project manager/webmaster, center; and staff Travis Wrobbel, imagingservices analyst; and Mary Talley, project specialist, maintain responsibility forMEMO’s web site, intranet, document content management, indexing and archivingof MEMO’s AS400 generated agent financial reports and other reports.

Manny Iem, compliance specialist;and Judy Johnson-Ward, complianceofficer, daily monitor legislativeactivity and regulations.

MEMO employs two bilingual agent servicerepresentatives, Emily Iem and RobertoMarroquin, to assist Spanish speaking agentsand customers.

MEMO Committed to Quality Service

22

`ÉÇxç fxÜä|vxácY`T Uâá|Çxáá fxÜä|vxá

Merchants Express MoneyOrder Company (MEMO),a wholly owned business

subsidiary of Pennsylvania FoodMerchants Association (PFMA), is oneof the nation’s leading money servicesbusinesses offering money servicesproducts to a variety of retailers in theU.S. MEMO is currently marketing itsmoney order and gift certificate prod-ucts in 32 states. MEMO products arealso marketed through businessalliance relationships with joint mar-keting agreements and endorsements,enabling both parties to market theothers products, offering a productmix to enhance market share andaccommodate retailer and consumerdemand. MEMO’s business alliancewith American Payment Systems(APS) provides the offering of the

QuickPay! product that is awalk-in bill payment service.QuickPay! offers “real time”electronic interface with majorutility companies and ven-dors, assuring quick creditposting of the consumers’ billpayments. Through its busi-ness alliance with CellCards adivision of APS, MEMO is cur-rently running a regional pilotoffering a pre-paid cellularlong distance service and cel-lular phones. Additionally, aspart of the joint marketingagreement, APS is marketingMEMO money orders and giftcertificates targeting its 12,000retailers.

The strategic business alliance withthe Food Marketing Institute (FMI)also assists in MEMO’s growth andexpansion. The business alliance withFMI is value added to the nationalexpansion objective, enabling bothMEMO and FMI to market the moneyorder and gift certificate products andservices to FMI’s national membershipof retail food stores. The positivesynergy between FMI andMEMO/PFMA is beneficial to bothretailers and the associations as theycontinue to place a high priority andfocus on serving members’ needs.

MEMO has successfully enhancedits national Call Center accommodat-ing large volumes of daily incomingcalls that service both retailers andconsumers. The Call Center is consis-tent with the continuous improvementobjective of the business and hasassured that MEMO continues toremain unsurpassed in offering thehighest quality of customer satisfac-tion. The Call Center is equipped withan Automated Phone Attendant that isavailable to accommodate the agentsand consumers inquiries seven days aweek and 24 hours per day. MEMO’sdedicated Call Center Representatives,Bi-Lingual Representatives and HelpDesk Technicians are available fivedays per week during the regular busi-ness hours and have established adirect relationship with the agents con-sistent with the customer satisfactionobjectives of the business.

(Continued on the next page)

MEMO takes pride in the concept ofmaintaining a “within-arms length”relationship approach with the moneyservices agents, enabling MEMO toquickly reach agents. The availabilityof Member Services Representativeshaving established a directrelationship with the agents hasassured that MEMO is available andready to accommodate upon request.Additionally, the MEMO web site(memco.com) is available and servesas an effective communication tool,providing pertinent information toagents and consumers. The web siteprovides user-friendly customerservice features, direct links toMEMO’s strategic business alliances, isa marketing tool for MEMO’s productsand services and serves as a legislativeinformation source for those interestedin the money services business.

Both the federal and stategovernment regulate the moneyservices industry and it is essential thatMEMO stay abreast of the regulatoryguidelines imposed by the regulatoryagencies. MEMO plays an active rolein legislative matters with ongoingparticipation with the industryworking in collaboration with thegovernment agencies to assureeffective compliance of the BankSecrecy Act and the U.S. Patriot Act.An integral part of the MEMOCompliance Program is to educate theagents on the regulatory guidelinesand reporting requirements underthese Acts. MEMO recently updatedthe comprehensive Agent Guide toAnti-Money Laundering that isdistributed to all MEMO agents andalso has staff available to provideemployee training to interested agents.The MEMO Compliance Officer andstaff actively monitor money servicestransactions and assure that applicablereporting documents are presented asrequired. (Continued on page 22)

Tanya Butler Vice President, Money Services

Terry Smith, operations manager, seated, and her staff are responsible for agentpayments, accounts receivable and bank clearings. Standing from left, TrishaByers, agent service representative; Jeannette Gipe and David Baldwin,operations analysts; Roberto Marroquin, bilingual agent service representative;Lesa Althoff, operations coordinator; and Kristin Jones, operations clerk. EmilyIem, bilingual agent service representative is pictured on page 22.

Fred Johnston, operations manager, seated, leads MEMO’s customer service,polling and data entry functions. Standing from left, Tina Kresge, claimsprocessor; Tiara Banks, operations clerk; Amber Wilson, call centerrepresentative; Charlotte Knisely, call center analyst; Kim Massal, call centerrepresentative; Peggy Langenbach, operations clerk; and Steve Orner, pollingadministrator. Not pictured is Bill Searer, electronic polling/data entry

Jennifer Hamelin Administrative Assistant

New Products and Market Development

20 21

Visit our web site atwww.memoco.com.

Emphasis on Growth, Continuous Improvement

Date post:	04-Aug-2020
Category:	Documents
Upload:	others
View:	1 times
Download:	0 times

effectiveness and profitability of companies in the retail...

Documents