t has been an honor to serve as chairman of the PennsylvaniaConvenience Store Council. This year, I not only complete my

two-year term as chairman of PCSC, but also my more than 20years as an active PFMA member. I officially retired from my posi-tion at Wawa, Inc. at the end of the year and started a newadventure as a retired person. My 29-year career in the conveniencestore business wouldn’t have been the same without PFMA andPCSC.

In 2004, PCSC tackled some interesting issues. Last fall,legislative groups were pushing for a gas tax increase of up to 8-cents per gallon. That would have put Pennsylvania’s gas tax as oneof the highest in the nation. PCSC members voted to oppose a gastax increase. The House and Senate leadership prevented the taxfrom being passed. PCSC members also worked with theDepartment of Environmental Protection to prevent an increase infees for the Underground Storage Tank Fund. We are currentlyworking with a coalition of industry groups to obtain federal funds

from the Leaking UndergroundStorage Tank fund. PCSC alsoworked with members to supportthe National Association ofConvenience Stores’ (NACS)efforts to restrict internet sales oftobacco and opposed U.S. Foodand Drug Administration authority over tobacco.

PFMA/PCSC is a terrific organization. It has been a privilege towork with the talented staff and board of directors through theyears. Their ability to plan for the future will continue to bring suc-cess to the association’s legislative and business services. PFMA willcontinue to outperform other food trade associations with its arrayof services: lobbying of state and federal governments, MEMOmoney orders, coupon redemption, scanning certification andresponsible tobacco sales certification, all at an affordable cost.

Stay in touch!

Chairmen’s Messages

y last year as chairman of thePennsylvania Food Merchants

Association has been very busyand productive.

As a co-chairman on the Food Marketing Task Force, I’ve beenworking with co-chairman Representative Dwight Evans on theFresh Food Financing Initiative (FFFI). This program is an innova-tive capitalization program to increase the number of supermarketsand other grocery stores in underserved areas across the state. So far,the FFFI has committed resources to five urban supermarket proj-ects. The FFFI will invest $6 million in these projects, which areestimated to cost more than $22 million. Once complete, they willcreate 740 new jobs.

Since the announcement of the fund last September, FFFI hasreceived applications from 14 eligible projects statewide. The FoodTrust will continue to work with supermarket developers and com-munities throughout Pennsylvania to determine the best use offunds and technical resources available through the initiative.

PFMA Legislative Committee Co-chairman Mike Cortez,Sheetz, Inc., also had the opportunity to make his voice heard as hemade suggestions for business tax reform. Cortez was appointed toserve on the Governor’s 12-member Business Tax ReformCommission. The Commission evaluated the Commonwealth’sbusiness tax structure and recommended changes to make businesstaxes fairer, simpler and more competitive with other states. TheCommission released its report on November 30, 2004.

PFMA staff worked on unemployment compensation issues aswillful misconduct became an issue. Retailers enforcing stringentstore policies requiring the termination of employees who selltobacco to minors are currently required to pay unemployment

compensation to these individuals because their actions againststore policy are not deemed willful misconduct. PFMA staff metwith legislators and the Department of Labor and Industry to makethem aware of this problem. As a result, Representative GibArmstrong (R-Lancaster) has introduced HB 781, which wouldmake individuals ineligible for unemployment compensationbenefits if their termination was deemed the result of willfulmisconduct.

To address the problem of methamphetamine drug labs acrossthe state, PFMA members and staff worked with the HouseJudiciary Committee and the Attorney General’s office to move for-ward with a voluntary Meth Watch Program. The program isdesigned to deter suspicious sales and theft of pseudoephedrine-containing medicines and other products used to illegally manufac-ture meth.

These are just a few of the issues PFMA acted on during the pastyear. For a full summary, please review the Government Relationssection of this report.

PFMA Services Are Top-NotchPFMA continues to offer top-notch services to its members. The

Responsible Tobacco Sale Certification and the ScanningCertification Program help retailers check their compliance to laws.

The Pennsylvania Pharmacy Council (PPC) is gaining respect inHarrisburg thanks to the efforts of PFMA staff. The group recentlyfinished its second year and is helping to bring attention to retailpharmacy issues.

Members with stores in Delaware are now benefiting fromefforts by the Delaware Food Industry Council. The Councilworked on many issues last year, including the Gross Receipts Taxand Bad Check Bills. Continued on page 3

Vince AndersonWawa, Inc.Wawa, PA

Carole BitterFriedman’s, Inc.Butler, PA

Bill BraceyBill’s ShurSavesMoscow, PA

Jack ClemensClemens Family MarketsKulpsville, PA

Joseph Della NoceSUPERVALU, Inc.Mechanicsville, VA

Ron FishPatriot Sales & MarketingValley Forge, PA

David HollingerFour Seasons Produce, Inc.Ephrata, PA

Richard McMenaminShopRitePhiladelphia, PA

Tim ReardonGiant Food StoresCarlisle, PA

Richard RussellGiant Eagle, Inc.Pittsburgh, PA

Rich SavnerPathmark Stores, Inc.Carteret, NJ

Art SmaltzEdinboro Giant EagleEdinboro, PA

Art VanSlykeVan Slyke’s Food MartMcKean, PA

Jonathan WeisWeis Markets, Inc.Sunbury, PA

Board AdvisorsDean WalkerBoyer’s Food Markets, Inc.Orwigsburg, PA

Craig HoffmanWegmans, Inc.Dickinson City, PA

ChairmanWalter RubelAcme Markets, Inc.Malvern, PA

Vice ChairmanJ. Christopher MichaelAssociated Wholesalers, Inc.Robesonia, PA

TreasurerScott HartmanRutter’s Farm StoresYork, PA

SecretaryDan McNabbLebanon Shops FoodlandPittsburgh, PA

“Thank you to all the PFMA Board of Directors. It’s been a pleasure to serve as chairman during the past two years. I look forward to continuing to serve on the board and providing input on issues.”

— Walter Rubel, PFMA ChairmanAcme Markets, Inc./Albertsons

“It has been a privilege to work with the talented staff and board of directorsthrough the years. Their ability to plan for the future will continue to bringsuccess to the association’s legislative and business services.

— Vincent Anderson, PCSC ChairmanWawa, Inc. (retired)

AR-2 The Food Industry Advisor May, 2005

M

I

PFMA Board of Directors

ChairmanVince AndersonWawa, Inc.Wawa, PA

Vice ChairmanSam AndersonPump n PantryMontrose, PA

SecretaryDan PastorGetGo from Giant EaglePittsburgh, PA

Committee MembersRobyn Ashbridge-McAnenyAshbridge Oil CompanyJohnstown, PA

Tom DempseyUtz Quality Foods, Inc.Hanover, PA

Richard GuttmanGuttman GroupBelle Vernon, PA

Scott HartmanRutter’s Farm StoresYork, PA

Bret HoffmasterShipley Stores, LLCYork, PA

Rich LevinTurkey Hill Minit MarketsLancaster, PA

Thomas MartinMartin Oil CompanyBellwood, PA

Scott McNallyHandee Marts, Inc.Gibsonia, PA

Jeff PetersSunocoHarrisburg, PA

Paul RankinCountry Fair MarketsErie, PA

Jim RobinsonS&D CoffeeCape May Point, NJ

Henry SahakianUni-Marts, Inc.State College, Pa

Louie SheetzSheetz, Inc.Altoona, PA

Kevin Snyder, Jr.Redner’s Markets, Inc.Reading, PA

Joseph TripiTripifoods, Inc.Buffalo, NY

A Note from the President

ssociation members and staff cooperated on many successfulprojects at the local, state and federal level in 2004. We spent

time and energy working on election campaigns and wondering howmany weeks it would take to declare a winner in the Presidentialcampaign. What a relief to experience a conclusive result the dayafter the election!

Pennsylvania campaign information filled the airways,newspapers and television screens as U.S. Senator Arlen Specter waselected for the 5th time. Tom Corbett (Attorney General), BobCasey Jr. (Treasurer) and Jack Wagner (Auditor General) wereelected to statewide offices. Three new members were added to theCongressional delegation as Allyson Schwartz (D-13) Charles Dent(R-15) and Mike Fitzpatrick (R-8) were elected. Pennsylvanians arenow represented by two republican senators, 12 republican andseven democratic house members. Association members were activein all critical races and look forward to 2006 gubernatorial, generalassembly and congressional elections. U.S. Senator Rick Santorumwill run for his second full Senate term against Bob Casey Jr. in arace that will be hotly contested.

Some of the 2004 highlights that exemplify member leadershipinclude the following:

• The opening of the first “one stop” PLCB store within new or remodeled supermarkets.

• A new food code was adapted in the Commonwealth with PFMA’s support.

• Eight PFMA associates were recognized for employment service exceeding 10 years.

• The 2003 Pennsylvania budget was approved by the General Assembly members and signed by Governor Rendell — six months late!

• PFMA Pharmacy Council member Mark Rabinowitz and Executive Director Melanie Horvath testified before the House Insurance Committee on several important bills.

• The members of the Pennsylvania Convenience Store Council, chaired by Wawa’s Vince Anderson celebrated 20 years of accomplishments.

• Acme Markets Walt Rubel was appointed to serve as co-chair of the Philadelphia Food Marketing Task Force following General Assembly hearings on the shortage of food stores in urban areas. Subsequently, state economic development funds were made available by the Department of Community and Economic Development to address identified needs.

• Mike Cortez, vice president and general counsel for Sheetz, Inc. and co-chair of PFMA’s Legislative Committee, was appointed by Governor Ed Rendell to serve on the Governor’s Business Tax Reform Commission.

• More than $80,000 was awarded to the 2004 Thomas and Laura Ridge Scholars.

• Wawa announced a leadership transition as Howard Stoeckel becomes CEO. Dick Wood and Vince Anderson are celebrated along with Wawa’s 15,000 associates in an early 2005 The Food Industry Advisor special section.

Thank you for your support!

A

“We spent time and energy working on election campaigns and wondering how many weeks it would take to declare a winner in the Presidential campaign. What a relief to experience a conclusive result the day after the election!”

— David McCorklePFMA/PCSC President & CEO

Table of Contents

May, 2005 The Food Industry Advisor AR-3

Continued from page 2PFMA’s business services are also providing valuable services to

members. Merchants Express Money Order Company (MEMO)is a leader in U.S. money service businesses. The wholly-ownedPFMA subsidiary offers a variety of money services products andmarkets to retailers in 32 states.

Pennsylvania Coupon Redemption Services (PCRS), the asso-ciation’s oldest business service, serves 800 retailers inPennsylvania.

Your support of PFMA’s business services helps pay for addi-tional PFMA services. Thank you to all the retailers who use theassociation’s business services.

More ThanksThank you to all the PFMA Board of Directors. It’s been a

pleasure to serve as chairman during the past two years. I look for-ward to continuing to serve on the board and providing input onissues.

Chairmen’s MessagesPFMA/PCSC Chairmen’s Messages . . . . . . . . . .page 2President’s Notes . . . . . . . . . . . . . . . . . . . . . . . .page 3Association Services . . . . . . . . . . . . . . . . . . . . . .page 4RTSCP . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .page 5Scanning Certification Program . . . . . . . . . . . .page 5Government Relations . . . . . . . . . . . . . . . . .pages 6-9Pennsylvania Pharmacy Council . . . . . . . . . . .page 10Delaware Food Industry Council . . . . . . . . . .page 10FoodPAC of Pennsylvania . . . . . . . . . . . . . . . .page 11Money Services Division . . . . . . . . . . . . . . . . .page 12Sales, Marketing & Facilities . . . . . . . . . . . . . .page 13Pennsylvania Coupon

Redemption Services . . . . . . . . . . . . . . . . . . .page 14Information Technology . . . . . . . . . . . . . . . . .page 14Finance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .page 15Endorsed Services . . . . . . . . . . . . . . . . . . . . . .page 15 PCSC Executive

Committee

Association Services

he PFMA Annual Conference was held again in May 2004 atThe Hotel Hershey. Keystone Awards were presented to mem-

bers who demonstrated exemplary community service work. Thosehonored at the conference were Gene Chabrier retiree from HandeeMarts; Charlie Campbell and Dan McMahon, Sheetz; Rich Savner,Pathmark; Deborah Vereen of Giant Food Stores; Robert Bylone,Redner’s Markets; Tom Roesener, Clemens Family Markets; ScottHartman, Rutter’s Farm Stores; Carole Bitter, Friedman’s, Inc., andChristy Spoa from Ellwood City Save-A-Lot.

PFMA’s Loss Prevention Committee hosted its 2nd AnnualConference. Bill Hill, GetGo from Giant Eagle, led a discussion onC-Store Brainstorming Issues. Dave Hoffman, Vector Security, TomDubas, Director of Emergency Services in Lackawanna County,Gary Carpenter and Karl Beagle, Weis Markets, shared their loss pre-vention knowledge at Shrink: A Second Look at the A to Z’s of LossPrevention session. Scott Bohm, Pathmark, led a discussion onAssociate Awareness Programs and Scott Christian, Vector Security,and Pedro Ramos, Pathmark, led a session on the Tools of LossPrevention.

Tom Jamieson, Shop ‘n Save, Walter Rubel, Acme Markets, andRichard Guttman, Guttman Group, participated in a panel discus-sion, moderated by Carole Bitter, entitled Retailing for the 21stCentury.

In the Annual Pennsylvania’s Best Bagger Contest, Genuardi’sChad Thom, competing for the third time, became Pennsylvania’sBest Bagger Champion.

PFMA will host its 4th Annual Conference May 25 – 26, 2005at The Hotel Hershey. In 2005, PFMA will honor Vincent Andersonwho recently retired from Wawa, Inc., with the Keystone Award forLifetime Achievement.

The Loss Prevention Committee will host its 3rd AnnualConference and once again hold breakout sessions, exhibitor displaysand a cocktail reception. Retailers will be sending their front-endemployees to the 18th Annual Pennsylvania Best BaggerChampionship.

CommunicationsIn 2004, The Food Industry Advisor staff produced special sections

for ShurSave Markets, Rutter’s Farm Stores and Lancaster AssociatedRetail Group. In February 2005, the staff produced a special inserton Wawa’s change in leadership.

The newspaper started the year with a new look and additionallegislative coverage, a Delaware Food Industry Council page andPennsylvania Pharmacy Council coverage.

The association’s web site also received a new look. The site fea-tures improved navigation, member resources and a improved accessto PFMA Associate Members. Visit the site at www.pfma.org.

New Communication from PFMAPFMA has sold The Food Industry Advisor to GC Publishing

Company. PFMA will continue to provide legislative informationwhich GC Publishing Company will publish in the Food IndustryAdvisor. All PFMA members will continue to receive the Advisor.The Hotline will continue to provide legislative information toPFMA members and the Communications staff is researchingoptions to develop new electronic communications with its mem-bers. Elizabeth Peroni will remain as PFMA’s Director ofCommunications and Tom Cirino will become GC Publishing’sGeneral Manager of The Food Industry Advisor. Longtime AdvisorEditor, Ed Conley, will leave PFMA when the transition is complet-ed. Ed will be honored by the industry at the Western PennsylvaniaFoodPAC golf outing.

T

“In 2004, Keystone Awards were presented to members who demonstrated exemplary community service work.”

— Randy St. JohnSenior Vice President, Association Services

The Communications staff includes Tom Cirino, advertising manager andcommunications specialist; Elizabeth Peroni, director of communications andmedia relations, and Ed Conley, editor and senior communications specialist.

Association Services Division support staff includes Jamie Overmiller, executiveassistant, and Ellen Varner, administrative assistant.

AR-4 The Food Industry Advisor May, 2005

Far left, Richard Guttman, Guttman Group, makes his pointduring the “Retailing for the 21st Century” panel discussionduring PFMA’s Annual Conference in Hershey as panelistTom Jamieson, Shop ‘n Save, looks on. Guttman discussed hiscompany’s partnership with Giant Eagle to start the GetGofrom Giant Eagle convenience stores, while Jamieson talkedabout his dollar store format.

Near left, Carole Bitter, Friedman’s, Inc., accepts herKeystone Award for Community Service from PFMAChairman Walt Rubel and PCSC Chairman VinceAnderson.

Association ServicesPrograms

ince 1991, the Scanning Certification Program has helped partici-pating retailers provide price accuracy and appropriate pricing

information to consumers in Pennsylvania and surrounding states. Themain objectives of this voluntary price accuracy program are to clearlyidentify for customers the prices of all items in the store and to ensurethat customers are charged the lowest advertised price at checkout.

Program guidelines require stores to ensure that shelf tags are accurateand legible, that scanners are programmed to charge the lowestadvertised price, that appropriate employees receive price accuracytraining, and that consumers receive information about their rights asscanning store customers.

Program auditors conduct unannounced in-store inspections tomeasure compliance with program standards. Certification is awardedto stores who have implemented program requirements and achieve anaccuracy rating of at least 98 percent on a random sampling of items.

The Scanning Certification Program provides public recognition forstores that achieve and maintain a high level of scanning and pricingaccuracy. Adherence to program requirements helps prevent overcharges

that erode consumer confidence and under-charges that cost storesmoney. Certified stores also fulfill the Pennsylvania state requirements ofAct 155 for the annual inspection of checkout scanning systems.

The program has grown significantly since its inception. Membershiphas risen from 10 study participants in 1991 to more than 1,200supermarkets and convenience stores today. One hundred and thirty-three inspections were performed in 1993. Ten times that number ofinspections were performed in the last year.

Most importantly, the Scanning Certification Program is meeting itsmain goal of improving price accuracy. The average supermarket priceaccuracy for member stores has increased from 96.9 percent in 1991 to99.04 percent in fiscal 2004.

The Scanning Certification Program has received nationwideattention for its proactive approach to price accuracy issues. Theprogram’s staff and Board of Advisors have worked with industry groupsand government agencies on various pricing and scanning issues. Theprogram is also recognized by the Commonwealth of Pennsylvania as anapproved certifier for Act 155 price verification inspections.

S

SCP Continues to Ensure Customers AreCharged the Advertised Price

Edward D. ArnoldiPa. 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

The Scanning Certification Program was developed by a Board of Advisors, which continues to set policy and oversee all aspects of the program.The current members of the Board of Advisors are:

SCP Board of Advisors

n support of tobacco sale laws and out of concern for the health ofyouth, responsible retailers recognize the need to take all necessary

steps to prevent the sale of tobacco to minors.In 1999, at the request of several prominent Pennsylvania retailers,

Pennsylvania’s Attorney General, Secretary of Health, Physician General,as well as representatives of regulatory and law enforcement agencies,tobacco-use prevention coalitions and retail companies, held a series ofmeetings to discuss ways to improve compliance with tobacco sale laws.

The result of the group’s work was the creation of the ResponsibleTobacco Sale Certification Program (RTSCP), which was incorporated inJanuary 2000. A Board of Advisors oversees the RTSCP and has as itsmembers many of the people who developed the program. ScottHartman, Rutter’s Farm Stores, serves as the Board’s Chairman and TimReardon, Giant Food Stores, is Secretary. PFMA’s Autumn Thomas servesas the program’s President.

The goal of the RTSCP is to reduce the use of tobacco by minors bypreventing the sale of tobacco products to anyone under 18 years of age.This voluntary program also aims to assure consumers and governmentofficials of participating retailers’ commitment to enforcing tobacco saleregulations.

The RTSCP provides guidelines for member stores to follow aimed atpreventing illegal tobacco sales and improving compliance with tobaccosale regulations. The “best practices” standards are detailed in theprogram’s Operations Manual. Participating retailers must: 1) followappropriate tobacco sale policies, 2) provide thorough training to clerksabout tobacco sale laws and procedures, 3) post signage in storesannouncing no tobacco sales to minors, and 4) pass periodic,unannounced compliance inspections by RTSCP inspectors.

RTSCP compliance inspections are conducted by adult RTSCPinspectors who accompany secret shoppers, minors between the ages of 15and 17, to each store. The youth secret shopper attempts to purchasetobacco while the adult inspector witnesses the transaction. Regardless of

the outcome, the adult inspector givesimmediate feedback to the clerk andmanager, and conducts a brief inter-view of the clerk.

Inspection results and interviewresponses are compiled and analyzed inan effort to better understand whyclerks do or do not sell tobacco tominors. This feedback should enhanceretailer best practices tobacco sale poli-cies and training programs over time.

Certification is awarded to stores thathave implemented program guidelines anddo not sell tobacco to youth secret shoppersduring two consecutive compliance inspec-tions. Stores earning certification undergounannounced compliance inspections every sixmonths.

The RTSCP became operational in 2001. Current participating com-panies include: Bill’s ShurSave supermarkets, Clemens Family Markets,Crossroads Convenience, Giant Food Stores, Handee Marts, Pathmark,Rutter’s Farm Stores, Shipley Stores, Sunoco and Wawa.

The Pennsylvania Convenience Store Council and the Norristown,Pennsylvania City Council also endorse the RTSCP. To date more than9,950 tobacco sale compliance inspections have been performed inmember stores across Pennsylvania. It is expected that the program willcontinue to grow significantly.

Any retail company that sells tobacco is eligible to participate in theRTSCP. Stores are charged an initial enrollment fee and separate on-siteinspection fees for tests performed.

For more information, contact Missy Wellington at 800.543.8207 ormwellington@pfma.net.

I

RTSCP Helps Retailers Check Tobacco Sale Law Compliance

Missy WellingtonRTSCP Manager

May, 2005 The Food Industry Advisor AR-5

Government Relations

PFMA’s Government Relations staff conveys supermarket and convenience store retailers’point-of-view to legislators. From left, Jennifer Walker, director of government relations;Annette Chilson, communications and information specialist; and Melanie Horvath,director of government relations.

Top right, Mike Cortez, Sheetz, Inc., voiced his opposition to HB 2277, a below costpetroleum sales bill, at an August 5, 2004 hearing in Harrisburg.

PFMA and PCSC members visited Senator Rick Santorum and his legislative staff inFebruary 2005. They thanked Senator Santorum for his leadership on issues such asCountry of Origin Labeling. Stan Sheetz, president, Sheetz, Inc., left, and DavidHollinger, chairman, Four Seasons Produce, listen as Senator Santorum answers ques-tions from the group.

Also attending the Santorum meeting were Robert Bickhard, national political consultant;Chris Michael, president and CEO, Associated Wholesalers, Inc.; Scott Hartman, presi-dent, Rutter’s Farm Stores; and Dan McNabb, president, Lebanon Shops Foodland. Thesefood industry leaders made sure Santorum knew their position on the issues.

Summary: On August 5, 2004, PFMAmembers testified before the ConsumerAffairs Committee on HB 2277. PFMAand PCSC voted to oppose this legislation.

Introduced by Representative DennisO’Brien (R-Philadelphia), this legislationwould prohibit below cost sales of gas andother products, eliminate zone pricing,assess treble damages for willful and non-willful violations and establish apetroleum energy office within theDepartment of Environmental Protection(DEP), among other provisions.

Mark Suprenant, associate generalcounsel for Wawa, Inc., testified in regardto present protections afforded to con-sumers, "Federal law already protectsconsumers from predatory pricing.Experts, including those at the FederalTrade Commission (FTC), have evaluat-ed laws like HB 2277.

The FTC, as you know, is chargedwith ensuring fair trade and promotingcompetition. The FTC has been consis-tently damning in its evaluation oflegislation like HB 2277.”

Mike Cortez, vice-president and gen-eral counsel of Sheetz, Inc., voiced hisopposition to HB 2277 on a fundamen-tal level. “Incredibly, in this era ofunprecedented gas prices, when gasolineis selling at all-time highs... proponents ofthis legislation want you to believe that itis your job to enact legislation to increasethe price of gas!”

The DEP and the Attorney General’soffice indicated that they do not see aneed for the legislation because they cur-rently have the authority to investigategas prices in order to determine if there isgouging or collusion.

2004 Issues SummaryAlcohol

Summary: PFMA’s Alcohol Sales TaskForce held several meetings to discussstrategies to make the required legislativechanges to permit the sale of adult bever-ages in supermarkets and conveniencestores. The American Economics Groupcompleted a study of revenue whichwould be generated for the state by

increasing the number of outlets whereadult beverages could be sold. Attorneysengaged by PFMA drafted legislationwhich would make the required changeswithin Pennsylvania’s Liquor Code. TheTask Force will meet this year to continuethe campaign for changes in how alcoholicbeverages are sold in Pennsylvania.

Below Cost Gas Sales

Business TaxReform

Diesel Hold Open Fueling

Summary: The Governor’s 2005-2006fiscal year budget proposal includedsome of the elements of the PennsylvaniaBusiness Tax Reform Commission’s finalreport. A significant difference betweenhis budget and the Tax Commissionreport is the proposal to reduce the CNItax rate from 9.99% to 7.99%, ratherthan 6.99%.

In 2004, PFMA and PCSCLegislative Committee Co-chairmanMike Cortez, vice president and generalcounsel for Sheetz, Inc., was appointedas a member of the Business Tax ReformCommission. Governor Rendell createdthe 12-member commission to evaluatethe Commonwealth’s business tax struc-ture and recommend changes that wouldmake business taxes fairer, simpler andmore competitive with other states.

The Pennsylvania Business TaxReform Commiss ion i s sued thei rrepor t to Governor Rendell and the

state Legislature on November 30, 2004.The Commission endorsed the recom-mendation as a package and notindividually, except for recommenda-tions on improvements to the tax appealsprocess.

Business Tax Reform CommissionReport Highlights:

• Reduce the corporate net income tax rate from 9.99 percent to 6.99 percent.

• Continue the phase out of the Capital Stock and Franchise Tax.

• Change the apportionment structure for the CNI Tax from 60% to 100%.

• Eliminate the $2 million cap on Net Operating Losses.

• Establish an independent panel to consider tax appeals.

• Institute a combined reporting system.

Summary: House Bill 1238, intro-duced by Representative RonaldMarsico (R-Dauphin), was signed intolaw as Act 134 of 2004. The purpose ofthe act was to cut down on diesel fuelspills at Pennsylvania filling stations.

PFMA worked with Representative

Marsico to prevent liability from fallingonto clerks and retail outlets. The billrequires customers who use hold opendiesel fuel dispensing nozzles to remainwithin 10 feet and within plain view ofthe fueling point.

AR-6 The Food Industry Advisor May, 2005

Electricity

2004 Issues Summary

PPL Rate IncreaseIn 2004, PPL Electric Utilities asked

the Public Utility Commission (PUC) toapprove its request for a $164.4 millionannual increase in its distribution rates.The company also planned a $57.2 mil-lion increase in transmission servicecharges.

Hearings were held in Bethlehem,Allentown, Lancaster, Harrisburg,Wilkes-Barre, Scranton and Williamsportfor customers to voice their concerns onthe issue.

PFMA member Jeffrey Good, execu-tive vice president of Amelia’s GroceryOutlet testified against the increase at theLancaster hearing. John Boyer of Boyer'sFood Markets, Inc. testified at theBethlehem hearing.

PPL claimed the increase would put itsdistribution charges in line with otherutilities in the state and was necessary tocover operating costs. The PUC's deci-sion was $27 million less than the $164.4million increase that PPL originally hadrequested. The increase took effectJanuary 1, 2005.

Fuel Issues

Summary: The Pennsylvania FoodMerchants Association’s (PFMA) FoodProtection Committee, worked with thePennsylvania Restaurant Association(PRA) and Pennsylvania Department ofAgriculture (PDA) to provide anoverview of the changes to thePennsylvania Food Code via a series oftraining sessions across the state in 2004.

The new Pennsylvania Food Codewas enacted into law, upon its publish-ing within the December 13, 2003edition of the Pennsylvania Bulletin. Thechanges in the Code impacted opera-tions in food facilities across theCommonwealth. The following topicswere presented by the Department ofAgriculture at the training sessions:

• Introduction to the Food Code, authority, layout, and definitions of importance;

• Exclusions and restrictions/employee health;

• Person in charge duties;• Bare hand contact and minimized

hand contact;• Food temperature changes;• Consumer advisory;• Molluscan shellfish handling at

retail level; and• Food Code Questions and Answers.

PFMA staff spent a great deal of timeresearching uniformity issues betweenstate, local and county regulations in2004. The aspect of statewide andnational food safety regulatory unifor-mity has long been a point of contentionamong the food industry, regulators andconsumers. Adoption of the Food Codehas historically been the keystone inachieving that uniformity.

However, a missing piece has been anagreed upon national standard or foun-dation for regulatory programs thatadminister the Food Code.

Draft Voluntary National Retail FoodRegulatory Program Standards were for-mulated by the U.S. Food and DrugAdministration (FDA) from ideas andinput from federal, state, and local regu-latory officials, industry, trade andprofessional associations, academia andconsumers.

Howard Rabinovitch, regional retailfood specialist, FDA explained the tenetsof the program to the PFMA FoodProtection group during a November 3,2004 meeting. He outlined that theincentive for participating in the pro-gram is for retailers to self-evaluate storesand take a proactive step in fully com-plying with the Pennsylvania Food Codeand model FDA Food Code.

The program requires minimal edu-cational training and ongoing training.The nine standards of the program aregeared to be controlled by managementin an effort to prevent them from feelingoverwhelmed with information duringan inspection.

Bobby McLean, director of the Bureauof Food Safety, Pennsylvania Departmentof Agriculture, signed the FDA’srecommended Voluntary National RetailFood Regulatory Program Standardsagreement presented by Rabinovitchduring the November 3 PFMA FoodProtection meeting. Signing the agreementindicated that the PDA will follow thevoluntary standard.

PFMA advocates this standard tocounty and local health departments tofurther push for food safety regulatoryuniformity in 2005.

Food ProtectionCommittee

Growing Greener II

MTBE Representative Robert Godshall (R-

Montgomery) and Representative BudGeorge (D-Centre, Clearfield) haveintroduced bills to ban Methyl Tertiary-Butyl Ether (MTBE) as House Bills 620and 718, respectively.

HB 620 prohibits the sale ordistribution of any gasoline containingMTBE. HB 718 states that no person inPennsylvania may produce, sell ordistribute gasoline that contains MTBEtwo years after the implementation of theproposed Act. Any person convicted ofviolating this Act would commit amisdemeanor of the third degree andwould be sentenced to pay a fine of up to

$2,500 per violation. There are nocurrent plans to move these bills fromcommittee.

PFMA expressed concern over a com-plete ban of MTBE during a 2004 HouseEnvironmental Resources and EnergyCommittee meeting, in response toRepresentative Godshall’s (R-Montgomery)HB 427.

Self Serve Prohibition Bill Representative Curtis Thomas (D-

Philadelphia) has introduced House Bill73, which would prohibit self-servicefueling. Although this bill has unexpect-edly captured a good bit of media atten-tion, there are no plans at this time formovement from committee.

Summary: As a result of pressure fromconstituents to remove expiration datesfrom gift certificates and gift cards, theHouse Consumer Affairs Committeeheld a public informational meeting onthe issue. Consumer groups expressedtheir disdain of dormancy fees and advo-cated for the removal of expiration dates.Business groups indicated that manycards and certificates are being printed toexplain the presence of dormancy oradministrative fees. The discussion led tothe proposal to remove certificates and

cards from escheat laws provided expira-tion dates are removed.

Representative Jerry Stern (R-Blair)introduced HB 552 to remove restaurantgift certificates and gift cards fromescheat laws. PFMA is working withRepresentatives Flick (R-Chester), Leh(R-Berks) and Stern (R-Blair) within theConsumer Affairs and FinanceCommittees to exempt all businessesfrom escheat laws if they remove expira-tion dates from gift cards and certificatesover a phase-in period.

Gift Certificates & Gift Cards

Great PA Cleanup

Summary: In 2004, the Department ofEnvironmental Protection (DEP) hostedthe first Great Pennsylvania Clean Up,an ambitious statewide effort to removelitter and trash from the state’s roadways,parks, river banks and open spaces. DEPoversaw 5,100 groups, which picked upand disposed of more than 233,000garbage bags of trash from sites across theCommonwealth. In addition, PennDOTcoordinated the efforts of almost

100,000 volunteers from nearly 4,400civic-minded groups that collectedanother 191,000 bags of trash from morethan 9,000 miles of state-maintainedroadway.

The Second Annual Great PennsylvaniaCleanup took place on April 23, 2005 inconjunction with Earth Day.

PFMA members graciously donatedfood and drinks to volunteers to supportthe effort in 2004 and 2005.

Summary: A Green Ribbon Commissionwas formed with representatives fromthe House and Senate as well asGovernor Rendell’s appointees todevelop a solution to fund theGovernor’s Growing Greener IIprogram in 2004. The GrowingGreener II program is an initiative tofund the purchase of land for openspace and to make other environmentalimprovements.

In the fall, a proposal to institute a$1 dollar increase in municipal wastetipping fees was put on the table tofund the $800 bond initiative. With thehelp of a PFMA member-based letterwriting campaign opposing an increase,the Governor was unable to secure pas-sage of a legislative vehicle before theclose of the legislative session onNovember 30.

On April 13, 2005 Governor Rendellsigned House Bill 2, which gives voters

the opportunity to decide if the stateshould borrow $625 million for theGrowing Greener II program — via bal-lot question during the May 17 primaryelection.

When voters go to the polls, they willbe asked: “Do you favor authorizing theCommonwealth to borrow up to$625,000,000 for the maintenance andprotection of the environment, openspace and farmland preservation, water-shed protection, abandoned minereclamation, acid mine drainage reme-diation and other environmentalinitiatives?”

If voters agree, then the legislaturewill have to develop enabling languageto actually spend the money. The billGovernor Rendell signed specificallydirects the state to borrow the moneywithout “the imposition of any new taxor fee” or “the increase of any existingtax or fee.”

Local Ordinances

Summary: Local governments across thestate have been active in passing ordinancesthat affect our members. PFMA asked formember assistance in keeping abreast ofactivity on the local level.

Philadelphia City CouncilA proposed ordinance (#040788) was

moving in Philadelphia City Council tolimit the hours of operation for retailestablishments located in 80% residentialareas. As a result of working with several

business organizations and our members,the bill was amended twice and passed onDecember 16, 2004. The bill limits thehours of operation from 11 p.m. to 6 a.m.for stores located on a residential block-face. As described in the bill, a residential

blockface is only one side of a segment ofa street and consists of 80% or more resi-dential buildings. That same blockface wasnot considered residential if 50% or moreof the blockface frontage consisted of com-mercial establishments.

May, 2005 The Food Industry Advisor AR-7

2004 Issues SummaryMass Transit and

Gas Tax

Summary: In the fall of 2004, Houseand Senate leadership began advocating agas tax increase to pay for public trans-portation and to help bridge the gapbetween available federal and state dol-lars. PFMA learned that the proposalwould probably not go forward becausePennsylvania’s federal highway fundingwould remain the same for the next year.The high price of gasoline also prohibit-ed an increase.

In the fall, legislative groups pushedfor an increase of up to 8 cents-per-gal-lon. At that rate, Pennsylvania’s gas taxwould be one of the highest in thenation. The Pennsylvania ConvenienceStore Council voted to oppose a gas taxincrease. Although groups were pushingheavily for a gas tax increase during “sinedie,” House and Senate leadership pre-vented a tax from being passed.

In early 2005, groups were still push-ing for mass transit funds and started

calling for bridge and road money as well.At that point, the Governor stated that hedid not want to raise gas taxes to pay formass transit. He later came up with aplan to alleviate a mass transit shortfalland issued a letter to legislative leadersoutlining the plan. His proposal wouldhave temporarily fixed the funding fortwo years and called for re-evaluation ofthe issue after that time. He proposed feeincreases on car titles, plates and driverrecords. He also proposed an increase inthe realty transfer tax by 1/3% and a 2-year lock-in of the increase to the OilStock and Franchise Tax. The Governoralso listed “miscellaneous fee increases forlocal roads.”

Although the Governor gave legislativeleaders a demand to come to a consensusby early March, he ultimately was able to“flex” more federal highway dollars, as hedid this past fall, to fund mass transitshortfalls until a consensus is reached.

Obesity Efforts

Meth Watch

Summary: In an attempt to addressthe proliferation of methamphetaminedrug labs and related problems acrossthe state, the House JudiciaryCommittee worked with retailers andthe Attorney General’s office to moveforward with the voluntary MethWatch program. Legislators laterintroduced bills to restrict sales of over-the-counter (OTC) products thatcontained pseudoephedrine as a fallback in case the Meth Watch programdoes not prove helpful in fighting thebattle against meth.

The Meth Watch program is anationally recognized, voluntary

program that other states such asKansas, North Carolina, Montana,North Dakota, and Tennessee haveimplemented with much success.Meth Watch is designed to detersuspicious sales and theft ofpseudoephedrine containing medicinesand other products used in illegalmanufacture of meth.

The Attorney General believesthis is a good first step toaddressing the myriad problemsassociated with meth and iscommitted to working withstakeholders to implement theprogram.

Oil Company Franchise Tax

Nutrition EducationAn obesity task force was formed todevelop a simple approach to createpublic education and awareness on howconsumers can make good nutritionalchoices while shopping in member stores.

PFMA’s Obesity Task Force will workwith the Department of Health to agreeon a basic consumer awareness initiativethat both grocery and convenience storemembers can:

1) implement in-store consumer nutrition education;

2) implement with additional activities if store resources allow; or

3) add to current nutrition-awareness activities.

In the meantime, some stores are get-ting involved in Shape Up PA, which is aprogram that educates employees and/orconsumers about nutrition and establishesteams to achieve exercise goals. Additionally,the Department of Agriculture will soon becoming out with their Simply Delicious,Simply Nutritious program, which willprovide stores with signage and possiblyrecipe cards that can be used to educateconsumers about how to make goodnutritional choices. Another idea thatPFMA is considering and has been carriedout in New Jersey schools, involves in-store tours to educate children about howto choose healthy foods.

Frivolous LawsuitsIn the fall of 2004, PFMA worked with

a coalition to pass language that wouldprevent obesity lawsuits in the state.Representative Mike Turzai (R-Allegheny)introduced HB 1986 to prevent frivolouslawsuits against manufacturers, packers,distributors, carriers, holders, or sellers offood industry or non-alcoholic beverageproducts. The language preventing law-suits against food retailers andmanufacturers did not pass during “sinedie.”

Although PFMA was working with acoalition and had support from the PATrial Lawyers Association (PATLA) onlanguage mirroring a similar Georgiastatute, PATLA ultimately disagreed withthe language because the bill would haverequired a “knowing and willful” viola-tion by retailers or food purveyors.

In 2005, Representative Doug Reichley(R-Berks, Lehigh) re-introduced legisla-tion (HB 670) to limit the liability of afood purveyor. The limitation on liabilitywould relate to civil suits claiming dam-ages for any condition arising from weightgain, obesity, or other generally knownsymptoms likely to result from long-termconsumption of food. Senator JoeScarnati (R-Brockway) has introduced aSenate version of the bill, SB 375, featur-ing the same language.

Summary: Due to the annual adjust-ment of the Oil Company FranchiseTax, which generates revenue for roadimprovements, highway maintenanceand other transportation projects, anincrease in the gas tax began January 1,2005. The tax is paid at the wholesalelevel. No legislation was adopted in2004 to increase Pennsylvania’s gas tax.

The Oil Company Franchise tax wasimplemented in 1981 and is adjustedannually by the Secretary of Revenuebased upon the fluctuation of market oilprices throughout the year endingSeptember 30.

Pennsylvania’s Vehicle Code statesthat the wholesale price floor is 90 centsand the maximum permitted is $1.25 asestablished in Act 32 of 1983. As aresult of high prices during the pastyear, the basis for 2005 was set at $1.17,which translates into an increase of 3.8cents-per-gallon. This fluctuation alsoaffects the diesel fuel tax.

Although there have been reportsthat the Governor wants to use thismoney to fund public transportation,the statute prevents money from this tobe used for any purpose other thanhighway maintenance and construction.

Overtime Rules

Summary: The United StatesDepartment of Labor (US DOL)published its revised final regulations(29 CFR 541.4) concerning itsovertime requirements under the FairLabor Standards Act (FLSA) on April23, 2004. The new federal overtimeregulations revised the types of workerseligible for overtime and set a highersalary cap for eligible workers.

Pennsylvania, as one of the states thathas its own overtime regulations, applies

both state and federal laws to overtimeregulation. Pennsylvania employers wereinstructed to follow both the newfederal overtime rules and the overtimerequirements of Pennsylvania’s MinimumWage Act (35 P.S. § 333.101 et seq.)and regulations (34 Pa. Code § 231.1 etseq.). Employers must follow the lawthat provides the greater benefit to theemployee. PFMA sent charts comparingthe two laws to the membership in thefall of 2004.

PFMA Members Meet with Federal Legislators

Summary: PFMA officers, directorsand members joined by federal foodindustry leaders, met with U.S. SenatorRick Santorum and his legislative staffon February 16, 2005. The meeting wasconvened by David Hollinger,chairman, Four Seasons Produce.

Senator Santorum was thanked for hisleadership on industry issues, includingCountry of Origin Labeling (COOL)and discussions focused on internettobacco sales and methamphetaminelegislation.

Native AmericansPFMA has been monitoring the issue of

Native American tribes being granted gam-bling licenses because stores in other statesstruggle to compete with illegal, tax free salesof gasoline and cigarettes to non-NativeAmericans on Native American reservations.PFMA was informed that the NativeAmericans who will be licensed in Pa. haveagreed to give up their sovereign status inorder to become licensed. This will preventthem from selling products tax-free.

PFMA has been working with members tosupport the National Association of

Convenience Stores’ (NACS) efforts torestrict internet sales of tobacco. U.S.Representatives Marty Meehan (D-MA) andMark Green (R-WI) introduced the InternetTobacco Sales Enforcement Act (HR 2824)to prevent all online tobacco sellers, includ-ing tribal sellers, from evading excise taxes.

On the state level, SB 921, introduced bySenator Anthony Williams (D-Philadelphia),became Act 150 of 2004. The Act preventsdelivery of cigarettes by anyone other than aretail store unless identification cards arechecked. The legislation was passed in anattempt to prevent internet sales of tobacco.

In March 2005, major credit card compa-nies made the announcement that they willno longer accept payment for tobacco prod-ucts bought online. Many internet cigarettemerchants have effectively lost the means todo business profitably, and are either limpingalong or have shut down their operationsaltogether.

FDA ControlPFMA has been coordinating efforts with

NACS and other stakeholders to oppose U.S.Food and Drug Administration (FDA) regu-lation of tobacco. On March 17, 2005,Senator Mike DeWine (R-OH) introduced

legislation (SB 666) that would provide theFDA with the necessary authority to regulatethe manufacture and sale of tobacco prod-ucts. A similar measure was also introducedin the U.S. House of Representatives.

Legislation introduced in the lastCongress by Senators DeWine and Kennedy,which was vehemently opposed by industry,would have posed a major problem for retail-ers. It would have created an unlevel playingfield by not regulating internet, Indian andtobacco-only retailers the same as otherretailers, and it would have made retailersliable for circumstances beyond their control.

Tobacco

AR-8 The Food Industry Advisor May, 2005

2004 Issues SummaryUndergroundStorage Tanks

Summary: The Department ofEnvironmental Protection (DEP) Bureauof Land Recycling and Waste Managementheld two Storage Tank Advisory sub com-mittee meetings to discuss the financialstatus of the Storage Tank Program. Thegoal of the sub committee meetings wasto review the DEP’s proposal to increasefees for the program. Industry groups,including PFMA, have expressed theiropposition to the increase as well as tolinking future fees to the Consumer PriceIndex (CPI).

Members of the Storage Tank AdvisoryCommittee opposed the fee increase andadvocated for working to get federalLeaking Underground Storage Tank(LUST) fund money. Reports from theUnderground Storage TankIndemnification Fund (USTIF) indicate

that DEP has never used the full alloca-tion of pollution prevention, catastrophicrelease and environmental cleanup fundsit could from the fund annually. Giventhat funds are available through USTIFfor tank cleanups by DEP, memberswould like to better understand the needthat exists for additional cleanup fundsthrough fee increases.

PFMA is working with a coalition ofindustry groups to further oppose thefee increase. Overall, working togetherto obtain federal funds owedPennsylvania, determining administra-tive funding needs in light of asignificant decline in the number oftanks and effectively using USTIF fundsavailable to DEP for cleanups, shouldaddress any funding shortfalls and avoidfee increases.

Urban Supermarket Funding

Willful MisconductRetailers have implemented stringent

store policies to terminate employeeswho sell tobacco to minors against statelaw. The Department of Health urgedretailers to adopt such stringent policiesas it publicly admonished stores for pastperformance on SYNAR and othertobacco compliance checks. As a resultof implementing such policies, PFMAhas received reports that terminatedemployees have been granted unemploy-ment compensation because their actionsagainst the store policy and state law werenot deemed to be willful violations.

PFMA staff met with legislators andthe Department of Labor and Industryto make them aware of this problem andseek a solution. The Department feels itis bound to current law and legal prece-dent, which requires them to grantunemployment compensation foractions not deemed to be willful, such asthose reported to PFMA.

An unemployment compensationreform measure, HB 781, sponsored bystate Representative Gibson Armstrong(R-Lancaster), has been introduced thatwould make individuals ineligible forunemployment compensation benefitsif their termination was deemed theresult of willful misconduct. Under thisbill, willful misconduct would includeviolations of workplace rules and

work-related government regulations;deliberate damage to an employer’s oranother employee’s property; threaten-ing a coworker with physical harm; orreporting to work in the possession of orunder the influence of drugs or alcohol.This language was also introduced lastyear by Representative Armstrong, butdid not pass from committee. This bill iscurrently under consideration in theHouse Labor Relations Committee, andthere are plans to move the legislationfrom committee sometime this spring.

Representative Stan Saylor (R-York)has also introduced HB 458 as a compre-hensive unemployment compensationreform bill. Included in that legislationis the solution PFMA members are seek-ing regarding “willful misconduct.”

Harkness RulingWithin a recent Commonwealth

Court Ruling, Harkness v. UnemploymentCompensation Review, the court heldthat a non-attorney may not represent acorporate employer at an unemploy-ment compensation hearing. As a result,the Department of Labor and Industrywill be filing an appeal to the decisionand Senator Joe Scarnati (R-Brockway)has introduced SB 464 to remedy theruling. PFMA will be working with thePennsylvania Chamber and other busi-ness groups to support these efforts.

UnemploymentCompensation

Weights andMeasures

Summary: In 2003, RepresentativeFrank Oliver (D-Philadelphia) submitteda report to the state Health and HumanServices Committee resulting from hisinvestigation of problems associated withthe lack of supermarkets within urbanand underserved communities in Penn-sylvania. The report was completed asrequired by House Resolution 13 of2003.

PFMA worked with the PhiladelphiaFood Trust to address concerns with thelack of supermarkets in urban areas.Representative Dwight Evans (D-Philadelphia) agreed to seek funding tohelp supermarkets enter the Philadelphiamarketplace.

Funding for grocery store develop-ment was included in the budget lastspring as part of the solution to concernson this issue. After quick movement inthe House and Senate, the Governorsigned Senate Bills 10 and 1026 on April1, 2004, as the first part of his economicstimulus package. SB 1026 establishedthe Commonwealth Financing Authorityand included provisions that enablesupermarkets to apply for funding underthe “First Industries Program.”

The First Industries Fund, acceptingapplications as of January 2005, makesfinancial assistance available throughgrants and loans to two industries —agriculture and tourism. Supermarketsare eligible to access this fund that makes$150 million available to businessesinvolved in agriculture. The funds are

allocated through the Department ofCommunity and Economic Development(DCED) and are limited to projects thatbenefit the local economy or well being ofa neighborhood.

In a related initiative, GovernorRendell announced in the fall of 2004that The Reinvestment Fund (TRF), anon-profit organization, will also use $10million from the Market DevelopmentAppropriation Act to administer astatewide supermarket initiative. Underthe leadership of Representative Evans,the state has appropriated $10 million forthis initiative. TRF will match this fund-ing with $30 million to form a $40million multi-faceted pool that will be aone-stop-shop for financing fresh foodretailers in underserved areas. The match-ing $30 million will come from privatesources as well as TRF’s New Markets TaxCredits allocation.

The TRF — working in conjunctionwith the Philadelphia Food Trust — hasformed a public-private partnership tosupport the Pennsylvania Fresh FoodFinancing Initiative. The funding recom-mendation was part of the report draftedby the Philadelphia Food Marketing TaskForce co-chaired by Walt Rubel ofAlberstons/Acme Markets, Inc.

The Food Trust is working withsupermarket developers and communitiesthroughout the state to determine howthey can best utilize the financial andtechnical aid available through thisinitiative. Flower Pot Sales

The Pennsylvania Department ofAgriculture, Bureau of Weights andMeasures is now enforcing its authorityto ensure the proper inside diametersize of flower pots and baskets for saleto consumers. Diameter sizes on potswere to be accurately labeled as of April1, 2005, and molded pots mustcorrectly state the inside diameter sizeas of April 1, 2006. The Departmentwill not be checking temporary flats.

This regulation came as a result ofcomplaints that 10" baskets advertisedfor sale were only 9" baskets. TheBureau’s regulations (70 PA Code,

Chapters 21-27) have adoptedrecommendations from the NISTHandbook 130. The regulationsprohibit misrepresentation of quantity.They also require methods of sale to beaccurate and to provide adequatequantity comparisons.

The Department suggested thatretailers measure several pots when newshipments are received to ensureaccurate sales. The diameter of pots andflower baskets for sale should bemeasured by the inside diameter at thetop of the container and not the outsidediameter. The pot size must be equal orgreater than the advertised size.

Larry Kohl, REHP, CFSP,Giant Food Stores, LLC,presents the retail aspect offood safety during the ThirdAnnual PennAg IndustriesAssociation’s Animal HealthConference on February 8,2005. Kohl discussed GiantFood Store’s role in keepingfood safe as well as educatingcustomers on food safety aspart of five components of thefood safety cycle: animalproduction, feed production,the processing industry, theretailer and the consumer.

PFMA’s Loss PreventionCommittee hosted itssecond Loss PreventionConference in Hershey onMay 27, 2004. LP vendorssuch as Vector Securityshowed their equipment toretailers attending theexhibitor showcase.

May, 2005 The Food Industry Advisor AR-9

Pennsylvania Pharmacy Council

Delaware Food Industry Council

lthough still in its infancy, the Delaware Food IndustryCouncil (DFIC) took more than baby steps in 2004.

DFIC’s Executive Director Mark Kleinschmidt played aleading role in the introduction and passage of House Bill418, legislation aimed at reducing the gross receipts tax paidby grocery stores and supermarkets by 30 to 63 percent. Thebill passed the Republican-controlled House but died in theSenate.

DFIC also led the charge to re-enact the civil bad checkstatute that was inadvertently repealed in 1995 and to updatepermissible service charges for retailers. HB 243, which was

amended and became HB 418 wouldhave shortened the time it takes mer-chants to collect bad checks and wouldhave increased the allowable maximumservice fee from $30 to $50 and up to$250 for frequent offenders. The bill

passed the House but was not considered in the Senatebefore the General Assembly adjourned.

Additional issues monitored and acted upon by DFICstaff in 2004 pertained to MTBE, gift cards, recycling andbottle bills, workers’ compensation, price gouging and phar-macy-related issues.

The Council’s financial support comes from retail andassociate dues as well as two fund raisers supported by themembers and their vendors. In addition to raising money tosupport the Council, DFIC members sponsored a receptionfor Governor Minner, contributing nearly $10,000 for herre-election campaign.

For the first time, DFIC presented “Good Government”awards to Agriculture Secretary Michael Scuse and to stateReps. Deborah Hudson, prime sponsor of the GRT bill andJoe Miro, who prime sponsored the bad check bill. This wasanother first-time event.

anons to the left of us….Canons to the right ofus…..Shots heard ‘round the pharmacy world in 2004

was a portent of the Administration’s efforts to lowerPennsylvania’s costs for state-paid or supported pharmacybenefit programs. Two scenarios began unfolding in 2004 toaccomplish that goal.

Administration’s “Redesign” EffortsUnder the first plan, a small work group of stakeholders

was assembled to discuss consolidating all pharmacy benefitprograms under one state department or agency. Although

the year ended without consensus, it was clear thatchange was imminent and that pharmacy benefitprovider reimbursement rates were under fire.

The Administration’s second plan, heralded in bythe Department of Public Welfare (DPW) in late2004, was a direct attack on pharmacy benefitproviders. The real threat of decreased federal finan-cial support to the state, not to mention theDepartment’s failure to collect rebates from manu-facturers, put DPW’s budget about $600 million inthe red. Looking for ways to make up that loss,DPW announced their plan to implement a stateMAC list, similar to the one implemented in NorthCarolina. Such a list would guarantee that pharma-cies would take a significant hit. DPW’s plan to“redesign” itself didn’t end there. Increased priorauthorizations, more hard edits and lower reim-

bursement rates for brand and generics were part of the newfloor plan they laid out at the end of 2004.

Legislative FrontOn the legislative front, the Pennsylvania Pharmacy

Council was invited by the House Majority PolicyCommittee to discuss the regulation of pharmacy benefitmanagers (PBMs) as it relates to retail pharmacy. The initia-tive was one of a series of hearings held by HouseRepublicans to examine the reasons for the rising costs ofhealthcare.

House Bill 1470, an initiative that would have leveled theplaying field by preventing insurers from requiring thatpatients use mail order pharmacies or imposing higher co-pays passed the House in November. The session endedbefore the Senate had time to review the measure.

House Bills 1886 and 1871, legislation that would haverequired the certification of pharmacy technicians, was intro-duced but never considered by the committee.

During the 2003-04 legislative session, PPC monitoredand/or acted upon more than 100 bills that would havedirectly impacted pharmacy practices.

Regulatory ReviewRegulations impacting pharmacy practice, including one

that would update technology and automation regulationsand another that would allow pharmacists to administerinjectables, continued to move through the regulatoryprocess. Neither of the bills was finalized in 2004.

A

C

Delaware Food Industry Council Leads Charge on Gross Receipts Tax and Bad Check Bills

PPC Monitors and Acts Upon Bills Impacting Pharmacy Practices

Mark KleinschmidtDFIC Executive Director

Melanie HorvathPPC Executive Director

AR-10 The Food Industry Advisor May, 2005

The Delaware Food Industry Council hosted a fund raiser forGovernor Ruth Ann Minner in April. The group raised nearly$10,000 for her re-election campaign. Participating in the receptionare from left, Teross Young, Food Lion; Barry Scher, Super G; RichSavner, Pathmark Stores; Governor Ruth Ann Minner; LoreleiMottese, Wakefern Food Corp.; and Greg TenEyck, Safeway/Genuardi’s.

Mark Rabinowitz, RPh, regional pharmacy managerfor Genuardi’s/Safeway testifies before a bi-partisanpanel on bills that would regulate Pharmacy BenefitsManagers and prohibit unfair mail order practices.

Representative Joe Miro accepts a GoodGovernment Award from DFIC ExecutiveDirector Mark Kleinschmidt for his sponsorship ofthe bad check bill.

DFIC Executive Director Mark Kleinschmidtpresents a Good Government Award to AgricultureSecretary Michael Scuse.

FoodPAC of PennsylvaniaThank you to all of the following committee members for your

continued support of the Pennsylvania Food MerchantsAssociation/Pennsylvania Convenience Store Council’s FoodPACfund-raising efforts.

Delaware Valley FoodPAC Golf Outing

Roy Kipp, Clemens Family MarketsJack Clemens, Clemens Family MarketsWalter Rubel, Acme Markets, Inc.Joe Della Noce, SUPERVALU, Inc.Vincent Anderson, Wawa, Inc.Greg TenEyck, Safeway/Genuardi’sDavid McCorkle, PFMA

Northwestern Pennsylvania FoodPAC Golf Outing

Bob Bartolone, Pepsi-ColaJack Greenberg, Old Country StoreMike Chevalier, Meadowbrook DairyScott Gibson, Hillandale Farms

Central Pennsylvania FoodPAC Golf Outing

Scott Hartman, Chairman, Rutter’s Farm StoresScott Karns, Karns Quality Foods, Ltd.David McCorkle, PFMATim Reardon, Giant Food Stores, LLCCharles Yahn, Associated Wholesalers, Inc.

Philadelphia FoodPAC Golf Outing

Walter Rubel, Chairman, Acme Markets, Inc.Rich Savner, Pathmark Stores, Inc.Grant McLoughlin, Pathmark Stores, Inc.

Reading/Allentown FoodPAC Golf Outing

Richard Redner, Chairman, Redner’s Markets, Inc.Ryan Redner, Redner’s Markets, Inc.Eric White, Redner’s Market, Inc.Joe Della Noce, SUPERVALU, Inc.David McCorkle, PFMA

Western Pennsylvania FoodPAC Golf Outing

Joe Heisler, Chairman, Lebanon Shops FoodlandDan McNabb, Co-Chair, Lebanon Shops FoodlandGeorge Hathaway, Co-Chair, Giant Eagle Don Brick, SUPERVALU, Pittsburgh DivisionEd Conley, PFMATom Dodson, SUPERVALU, Pittsburgh DivisionFred Romantine, Giant EagleGene Tommasi, Giant EagleHarvey Porter, Fike’s DairyTom Volovich, Interstate Brands CorporationMike Cortez, Sheetz, Inc.Vince Bianco, Snyder of Berlin

May, 2005 The Food Industry Advisor AR-11

Right, The Central Pennsylvania FoodPAC GolfOuting enjoyed its largest turn-out in many yearsthanks to the organization of Michael Graves,Anthony Borelli and Mark Perkins of AssociatedWholesalers, Inc.

Far right, Reading/Allentown FoodPAC hadsupport despite a rain-out on the golf course.Richard, left, and Ryan Redner, right, Redner’sMarkets, welcome SUPERVALU PresidentRichard Lane to the reception and dinner.

Philadelphia FoodPAC hosted its golf outing fund raiser on a beautiful August day.Philadelphia FoodPAC Chairman Walt Rubel, Acme Markets, left, welcomes from left, JeffLalso, Larry Passwater and Elliott Friedman, Burris Logistics; Frank Puleo, Acme Markets;Mark Tarzwell, Burris Logistics; and Rick Dolan and Tim McIntyre, Herr Foods.

Western Pennsylvania FoodPAC regrouped after a rain out to enjoy their golf outing atChestnut Ridge in Blairsville. From Layne McGee, LaRussa Foods; retirees Joe Heisler andPhil Rozile; and Foodland retailer Dan McNabb enjoy the day.

Delaware Valley FoodPAC hosted its successful golf outing in October. From left, organizerRoy Kipp, Clemens Family Markets; joins PFMA President David McCorkle, retiredexecutive David Genuardi and Mary Ann Crager, Genuardi’s, for the day on the links.

Money Services Division

“For the past 19 years, MEMO has evolved into one of the leadingmoney services businesses in the U.S., offering money orders, giftcertificates, prepaid cellular airtime — “Prepaid By MEMO” andconsumer bill payment — “QuikPay” products and services toretailers in 32 states.”

— Tanya ButlerVice President, Money Services

erchants Express Money Order Company (MEMO) is awholly owned business subsidiary of Pennsylvania Food

Merchants Association (PFMA). MEMO was established in1986 to offer a money order service to the members of the foodassociation. For the past 19 years, MEMO has evolved into oneof the leading money services businesses in the U.S., offeringmoney orders, gift certificates, prepaid cellular airtime —“Prepaid By MEMO” and consumer bill payment — “QuikPay”products and services to retailers in 32 states. The QuikPay billpayment service is available through a joint marketing businessalliance with American Payment Systems (APS) a subsidiary ofCheckFree.

During fiscal year 2004, a new compliance officer joined theMEMO team and the Compliance Department was restructuredto include a Licensing and Compliance Specialist and twoCompliance Analysts. The development of a comprehensiveAnti-Money Laundering Compliance Program was completed,that is consistent with the guidelines of the Bank Secrecy Act andthe U.S.A. Patriot Act. The detailed Anti-Money LaunderingCompliance Program outlines the process for MEMO’simplementation of ongoing Agent Compliance Training, Agent

Compliance Audits, and EmployeeCompliance Training, as required.Additionally, an Agent Guide to Anti-Money Laundering was updated anddistributed to more than 4,000 retailers.

MEMO’s Research and Developmentteam completed the research and beganthe development of a front-end softwareapplication to issue money orders using aVerifone terminal that will ultimatelyreplace the current Electra money orderdispenser. The new Verifone terminal willenable MEMO agents to offer multipleMerchant Service products using onedevice. Several of the potential productsconsidered are: wire transfer service, gift

cards, prepaid master card, age verification, check verification,smart cards and payroll disbursement. The new terminal will alsoenhance internal and external controls to minimize risk andexposure for both the agent and MEMO. The second phase ofthe project is the development of back-office software on a webhost server system to function as a “real-time” application withdirect access from the Verifone terminal via the Internet. Thisopportunity will reduce operations processing costs and furtherminimize risk and exposure. Both phases of the new money ordersoftware development are close to completion, currently in thetest phase and scheduled to run a “pilot program” with severalagents during the fourth quarter of fiscal 2005.

The Prepaid By MEMO program transitioned from its “pilotprogram” and was rolled out nationally to agents during fiscal2004. The prepaid cellular airtime and long distance calling cardprogram is offered through a broker relationship with CellCards,Inc., a subsidiary of CoinStar.

As one of the leaders in the money services business MEMOtakes pride in the solid reputation it has established over the yearswith providing consistent customer satisfaction to both agentsand consumers. The business operations offers 24-hour/7-daysCustomer Service Assistance, Bi-lingual Representatives, HelpDesk Service, Machine Maintenance Depot Service, MachineTechnicians, Member Service Representatives and AgentAccount Representatives to service our agents and consumers,ensuring a high quality, low cost product, that is also consistentwith the overall mission of the organization. Fiscal 2005 bringsmany challenges for the money services business industry. Whilepaper product trends shift downward and the evolution ofelectronic transaction processing increases, MEMO willcontinue to explore opportunities to offer new products andsaturate existing markets to expand its footprint, thereforemaximizing profitability.

We appreciate the continued dedication and support of ourstakeholders and look forward to a prosperous year of serviceduring fiscal 2005 as we prepare for our upcoming 20-yearanniversary in 2006!

Merchants Express Money Order Company — A Leader in U.S. Money Service Businesses

M

MEMO’s Compliance team monitorsdaily legislative activity andregulations. They are, front row,Kevin Lutkins, compliance officer.Back row, Judy Johnson-Ward,licensing and compliance specialist;and Jennifer Hamelin, complianceanalyst.

The Research and Development Committee examines thenew Verifone terminal that will allow MEMO agents tooffer multiple products using one device. From left, FredJohnston, Beth Mullen, Hans Leyer and Tanya Butlerparticipate in the research and development process.

Operations Manager Fred Johnston, top left, leads staffmembers, from left, Steve Orner, polling/IVR administrator;Johanna Figueroa, bilingual call center representative; PeggyLangenbach, call center representative; Charlotte Knisely,call center analyst; Bill Searer, polling operationscoordinator; Travis Wrobbel; imaging services coordinator;and Tiara Banks, operations clerk.

Operations Manager Terry Smith, center, leads staffmembers, from left, Roberto Marroquin, bilingualoperations analyst; Lesa Althoff, operationscoordinator; Leslye Pedraza, operations coordinator;and Jennifer Garland, agent service representative.

Merchants Express Money Order Company’sprofessional customer service team includes twobilingual representatives to assist Spanish-speakingcustomers. The are, from left, Roberto Marroquin,bilingual operations analyst and Johanna Figueroa,bilingual call center representative.

AR-12 The Food Industry Advisor May, 2005

Sales, Marketing & Facilities

“As new and evolving retail channels develop, using a PFMA Association service becomes even more important to you and our retail membership.”

— Hans Leyer Vice President, Sales, Marketing and Facilities

he year 2004 was another busy year for PFMA andsubsidiaries. Despite the ongoing trend of mergers and

consolidations within the wholesale and retail food distributionindustry, PFMA was able to keep its membership base at a relativelyconsistent number.

Maintaining a high number of retail members in the associationis particularly important for a variety of reasons. The primary focusand service provided by PFMA is our government relations pro-gram. To be effective and be heard, it is vitally important to repre-sent the vast majority of food retailers in the Commonwealth ofPennsylvania to our Legislature. Additionally, PFMA provides manyother services to members of our association that help them remaincompetitive in the face of competition from a variety of other retailchannels. Twenty or 30 years ago, classes of trade were much moredistinctive and focused on more defined product lines. Nowadays,it seems as though many common products are available seeminglyeverywhere, including the Internet. As new and evolving retail chan-nels develop, using a PFMA Association service becomes even moreimportant to you and our retail membership.

Our services, such as MEMO (money orders) and PCRS(coupon redemption), were conceived and designed with our retailassociation members in mind. From our member services represen-tatives, who contact our members on a daily basis, to our office staff,who keep our services running smoothly, the emphasis is always onsuperior customer service to our members. That is what sets us apartfrom our competitors and enables our members to do what they dobest — Serve Their Customers!

One of our goals throughout the expansion of PFMA member-ship and business services has been to maintain contact with eachmember at least once per year with a store visit or phone call. Weenjoy hearing from our members and welcome their comments andsuggestions. Many companies have abandoned this sort of philoso-phy in the interest of cost savings and efficiency only to realize laterwhat relationships have been lost. Maintaining communicationsthrough a variety of methods and listening to customers and mem-bers is what has enabled PFMA to grow and prosper. If you everhave any questions regarding our services, please call Becky Harnerat 717-731-0600 or 800-543-8207 ext 5511 or visit our web site atwww.memoco.com. For additional information on PFMA and ourservices, please visit our web site at www.PFMA.org.

Thank you for being a member of PFMA and using yourAssociation’s Services!

FacilitiesBoth of our facilities are staffed by a

well-trained, highly professional groupof employees. We all share the samegoal – to provide PFMA members andbusiness service customers the excep-tional customer service they’ve come toexpect.

Our warehouse provides technicalsupport to our money order agentsthrough both a Help Line and our owndepot service. Technicians are availableto take your call Monday throughFriday from 8 a.m. to 5 p.m.Occasionally the need arises for an onsite money order agent visit. Generally,our warehouse staff handles these visits,however, certain situations and logisticsmay call for one of our member servic-es representatives to arrive on-site fortroubleshooting. One way or another, we’ll have your site back upand running as quickly andefficiently as possible. Allmachines received by ourwarehouse are put through acomprehensive preventativemaintenance “tune up” toensure that the money orderdispenser you receive is intop o p e r a t i n g c o n d i -t i o n . Maintaining ourequipment and keeping cus-tomer satisfaction levelshigh are both keys toincreased money order salesand agent location growth.

If you’re not alreadyusing MEMO, call todayand make the switch. Youand your customers will beglad you did!

Service Remains the Highest Priority for PFMA and its Business Subsidiaries

T

PFMA’s Warehouse staff provides technical service and assistance to MEMOagents. From left, Bob Ommert, shipping clerk; David Ulsh, Matt Sholley andKevin Null, machine maintenance technicians; and John Rodgers, warehousemanager.

Sales, Marketing and Facilities is supported by Phil Pilato,maintenance; Michele Weaver, sales coordinator; LennySemick, maintenance; and Becky Harner, administrativeassistant.

PFMA Member Service Representatives

National Sales ManagerBryan Hannan

Baltimore/western MD,southwestern PA, Washington, D.C.

northern WV, TX, FL & GA(410) 529-4287

George BartellEastern/Central PA and

northwestern NJ(610) 987-3477

Mac DixonVA/NC and SC

(804) 714-1365

Steve HaltermanKY/Ohio/southern WV/

northeastern PA(937) 349-2224

John JonesNew York/Vermont/New

Hampshire/Rhode Island/Connecticut and MA(570) 868-4057

Terry QuigleyPhiladelphia/New Jersey/Delaware & eastern MD

(856) 228-2848

May, 2005 The Food Industry Advisor AR-13

Pennsylvania Coupon Redemption Services

Information Technology

“PCRS provides a competitively priced, superior quality redemption service that is geared toward meeting the needs of the independent food retailer.” — Autumn Thomas

Vice President, PCRS & Special Projects

he Information Technology departmentcontinues to explore new and better ways of

accomplishing our primary goal which is to assurethe smooth operation of our organization’scomputer systems, in order to better serve ourmembers.

We began development of software for a newterminal for money order sales. This terminal givesour members improved functionality relatingdirectly to the selling of money orders. But becausethe machine is multi-functional, it will also provideflexibility for expansion into other services. Rollout of this new product is expected in 2005.

Our programming staff has worked closely with

the MEMO compliance team this year to assurethat we are following the ever-changinggovernment regulations in all our operating states.We are also continually looking for areas in whichwe can improve communications with ourmembers who take advantage of the benefits ofusing the Pennsylvania Coupon RedemptionService. Currently, we have the ability to send allpayment information electronically.

The Information Technology group looksforward to the challenges that the coming year willbring, as we continue to look for new technologiesto better serve the association and ultimately ourmembers.

T

Pennsylvania Coupon Redemption Services staff members LaurieSavoy, left, account manager; and Stacey Kropp, right, staffaccountant; provide experienced and professional customer serviceand support.

Chuck Harber, senior programmer/analyst; and ScottThomas, programmer/analyst; provide programming andsystems support to PFMA and its business services.

Callers and visitors to the PFMA office in Camp Hillare greeted by Vivian “Lou” Brashears, who alwaysprovides a professional demeanor and pleasant smile.

“The Information Technology group looks forward to the challenges that the coming year will bring, as we continue to look for new technologies to better serve the association and ultimately our members.”

— Beth MullenVice President, Information Technology

ennsylvania Coupon Redemption Services,Inc. (PCRS), which has been in operation

since 1956, is the association’s oldest businessservice. It is also the largest retail coupon clearing-house owned and operated by a retail association.

More than 800 retailers in Pennsylvania andadjoining states entrust their coupon processingneeds to PCRS.

PCRS provides a competitively priced,superior quality redemption service that is gearedtoward meeting the needs of the independentfood retailer. Features of the program include.

• 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 (two, ten and 20) working days for maximum convenience and flexibility;

• Reimbursement for inbound shipping and insurance;

• No service charges or volume minimums;• Experienced and professional customer

service support; and• A commitment to obtaining fair treatment

for independent grocers in the complicated redemption process.

The profits earned from PCRS operations arereturned to the association to help offset the costsof other PFMA programs, providing memberswith added value for each coupon submitted forprocessing.

P

PCRS Geared Toward MeetingIndependent Retailers’ Needs

IT Assures Smooth Operation of PFMA’sComputer Systems to Better Serve Members

AR-14 The Food Industry Advisor May, 2005

Finance“Both the Accounting and Credit departments are to be

commended for their dedication and flexibility.”— Karen Wilbert

Vice President, Finance

Change is the name of the game in the Financedivision for 2004.

Unfortunately, the Credit department lost avalued employee through a staff downsizing inJanuary. Joan Brent was the credit assistant in thedepartment. Her hard work and friendly face ismissed daily. We wish Joan the best of luck in hernew endeavors.

To assist the Credit department, Joyce Gnafakiswas looked to for additional support. She steppedinto this new role and now devotes 15-20 hours perweek to the Credit department. She contacts tradeand credit references for all of the new MEMOapplications.

In addition to Joyce’s new duties, Stacey Kroppaccepted an offer to assist PCRS on a part-basis.PCRS had a long-time employee retire and Staceyhas picked up a portion of her duties. She nowdivides her time evenly between Accounting andPCRS.

Finally, Wanda Tafun took on a small MEMOCompliance activity. She creates letters for theCompliance department to send to agents when acompliance violation has occurred.

To accommodate all the above changes, manyaccounting and credit functions were shuffledaround to ensure that all responsibilities werecovered. Both the Accounting and Creditdepartments are to be commended for theirdedication and flexibility.

The credit department processed more than1,100 applications for the year. These applicationsincluded PFMA membership, PCRS processing andMEMO sales. The department is also deeplyinvolved in developing the new MEMO moneyorder machine. The machine will have manyfeatures that will enable the credit department tomonitor money order sales more closely. This newmachine should be up and running by the fall of2005.

The Accounting department embraced itsHuman Resources role in 2004 by creating andenacting HIPAA compliance procedures. Thisinvolved ensuring that all protected healthinformation remains confidential. New procedureswere developed to protect all employees.

Finally, the Accounting department has madegreat strides in creating an accounting proceduremanual. Each staff member has documented all oftheir procedures and these have been put together ina manual. This effort has encouragedcross training and personal growthwithin the department.

Four generations of theGleason family have builta legacy of excellence andcustomer service.

PFMA’s Accounting staff includes, from left, Joyce Gnafakis,junior accountant; Wanda Tafun, staff accountant; Gail Bryner,accounting manager; and Stacey Kropp, staff accountant.

The Credit and Collections team includesfrom left, David Bush, credit coordinator;Laura Melfi, credit assistant; and DanOliva, credit manager.

Finance Flexibility Brings New Roles

Endorsed ServicesGleason Insurance

leason Insurance is the PFMA-endorsedproperty and casualty insurance broker.

Headquartered in Johnstown, with offices inPittsburgh, Philadelphia, and Harrisburg, Gleason is afull service commercial insurance broker providingcompetitive, customized insurance, safety and riskmanagement products and solutions.

Gleason pioneered a specialty food division morethan 25 years ago. Since then, Gleason has earned areputation as the leading insurance broker for thefood industry in the Mid-Atlantic region and one ofsix nationally recognized industry experts.

The Gleason Food Group, providing services tomore than 500 supermarket and allied industryclients, is staffed with trained specialists who focusstrictly on food related accounts includingmanufacturers, processors, wholesale distributors,retail chains, convenience stores and restaurants.Gleason’s expertise in the food arena allows them toprovide customized, value-added products that meetthe unique needs of supermarket retailers and relatedfood accounts.

The PFMA-endorsed insurance programs includeproperty, liability, workers’ compensation, refrigerationbreakdown, business interruption, crime, auto andunderground storage tank coverages.

Gleason FinancialGleason Financial, a sister company to Gleason

Insurance, is the PFMA-endorsed insurance brokerfor employee benefits and financial planningprograms. Gleason Financial’s legacy of excellence andcustomer service has successfully helped many of itssupermarket industry clients save money and improvetheir operations with quality, cost effective disabilityand benefit programs.

Gleason’s approach to managing your benefitfinancial model is thorough, professional and creative.Gleason has developed Gleason EETrak, a datamanagement tracking system that directs all clientemployees and family members to contact Gleasondirectly with claims, prescription, deductible andbilling issues. Gleason manages and resolves theproblems saving time for customer’s human resourcesstaff while providing a better, value-added andresponsive service to employees. Gleason EETrakprovides quarterly reports of activity to customers –an effective tool to manage their benefits programs.

Gleason Financial services also include bothbusiness and personal financial planning includingbusiness succession planning, executive compensationplans, qualified and non-qualified retirement plans,estate and wealth accumulation planning andinvestment services.

Gleason TechnologyThe newest member of the Gleason companies is

Gleason Technology, Inc. Gleason Technology, Inc.,founded in 2002, is headquartered in Malvern andprovides clients with cutting edge applied technologythat permanently improves employee behaviors, facil-ity cleanliness and operational consistency.

Gleason Technology’s primary product isGleasonESP, groundbreaking electronic slip/fall pre-vention technology that allows management to createconsistent store conditions across an entire chain. Theproduct has proven to dramatically reduce the fre-quency of slip/fall incidents for supermarkets, gro-cery stores and other retailers, in some cases as muchas 88%.

Gleason takes a leading role in the battle againstcostly slip/fall claims with the launch of GleasonESP,the industry’s first electronic patented floormonitoring system.

It is the most efficient, effective, and affordablesystem ever designed to combat expensive andexcessive claims settlements. Implementation of thisunique program has proven capabilities tosubstantially reduce insurance premiums and improvebottom line costs for the retail grocery industry.

Gleason Group of Companies – PFMA Endorsed Insurance BrokerGleason Insurance – Property & Casualty InsuranceGleason Financial – Employee Benefits & Financial PlanningGleason Technology, Inc. — GleasonESP

G

May, 2005 The Food Industry Advisor AR-15