Southern Showcase 2012

For Members Only

SAWD 89th Annual Meeting & Trade ShowMay 31 & June 1, 2012

Hilton New Orleans Riverside • New Orleans, LA

20 2011 Award Winners

34 Southern Showcase Schedule of Events

54 The MIllion-Dollar Question: How Much Does It Cost to Carry Inventory?

56 Officers and Directors Elected and Installed

60 Orlando Convention Wrap-Up

68 Advertisers Directory

Inside…

The Southern…Home to 46% of all C-Stores in the USA

Best Wishesfor a Successful

Convention!

Welcome to New Orleans!Welcome to New Orleans!

SAWD 2012 1

Letter from the Governor of Louisiana . . . . . . . . . . . . . . . 2

Letter from the Mayor of New Orleans . . . . . . . . . . . . . . .4

Letter from the SAWD President . . . . . . . . . . . . . . . . . . . 6

Letter from the SLD President . . . . . . . . . . . . . . . . . . . . . 8

Hospitality Suite . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .10

First Lady’s Social Invitation . . . . . . . . . . . . . . . . . . . . . . 13

Letter from the Executive Director . . . . . . . . . . . . . . . . . 14

Award Winners 2011 . . . . . . . . . . . . . . . . . . . . . . . . 20-21

2012 Education Fund Contributors . . . . . . . . . . . . . . . . 22

New Exhibitor Spotlight . . . . . . . . . . . . . . . . . . . . . . . . . 26

15th Annual Silent Auction . . . . . . . . . . . . . . . . . . . . . . 28

A Note About Anti-Trust . . . . . . . . . . . . . . . . . . . . . . . . 30

Welcome New Members . . . . . . . . . . . . . . . . . . . . . . . . 30

SLD Business Resource 2011 in Destin, Florida . . . . . . . 32

SCHEDULE OF EVENTS . . . . . . . . . . . . . . . . . . . . 34-35

Council of Presidents . . . . . . . . . . . . . . . . . . . . . . . . . . . 36

SAWD Executive Committee . . . . . . . . . . . . . . . . . . . . . 38

2012 SAWD State Directors . . . . . . . . . . . . . . . . . . 40, 42

2012 At-Large Directors . . . . . . . . . . . . . . . . . . . . . . . . . 44

2012 SAWD Board Broker Rep,

SLD Rep, Legislative Liaison . . . . . . . . . . . . . . . . . . 44

Manufacturer Representatives . . . . . . . . . . . . . . . . . . . . . 46

2011 - 2012 SLD Officers & Directors . . . . . . . . . . . . . 50

The Million-Dollar Question: How Much Does

It Cost to Carry Inventory?. . . . . . . . . . . . . . . . . . . . 54-55

2011 - 2012 Officers & Directors

Elected and Installed . . . . . . . . . . . . . . . . . . . . . . 56-57

2011 Orlando Convention Wrap-Up . . . . . . . . . . . . . 60-61

Mid-Year BOD Meeting in Key West, Florida . . . . . . . . 62

2011 SAWD College Scholarship Winners . . . . . . . . . . . .66

A “Tweet” about Future Social Networking . . . . . . . . . . .67

Advertisers Directory . . . . . . . . . . . . . . . . . . . . . . . . . . . 68

Table of Contents

2 SAWD 2012

SAWD 2012 3

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VISIT US AT COMMONWEALTHALTADIS.COM FOR MORE INFORMATION.

CIGARETTES, CIGARETTE TOBACCO, CIGARETTE TUBES, CIGARETTE PAPERS, CIGARS, PIPE TOBACCO

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4 SAWD 2012

Welcome!

It is my pleasure to welcome the attendees of the Southern Association of Wholesale Distributors’ 89th Annual Meeting and Trade Show to the City of New Orleans.

New Orleans is a city of prosperity and develop-ment, and as such I want to thank you for choosing to spend your conference here.

From national publications like the Wall Street Journal calling New Orleans the “most-improved city for business,” to global companies like General Electric investing millions in new jobs in our city, New Orleans is proving to be a hub of talent, fresh ideas and new business.

While you are here, I hope that you will take some time to visit our historic French Quarter, fine restaurants and entertainment venues and absorb the rich culture that makes New Orleans the most authentic and culturally rich destination in America. I extend my best wishes for a successful conference. Have a wonderful stay in New Orleans. Sincerely,

Mitchell J. Landrieu

Mayor City of New Orleans

SAWD 2012 5

6 SAWD 2012

A Letter from the President

Benchmarks are important in helping us to see where we have been and where we are going. I

am looking at a couple of significant benchmarks coming up shortly. In just a couple of years, my company’s mem-bership in the Southern will pass the three-decade mark. In just a couple of weeks my term as President of this fine organization will come to a new beginning. Not an end…but a new beginning. I will move into the posi-tion of Board Chairman.

We set some goals when I was elect-ed as your president two years ago:

• To continue to be actively involved in those states seeking our assis-tance in legislative and regulatory affairs. The Southern directly impacted legislative and regulatory initiatives in Georgia, South Carolina, and Texas on issues ranging from tax increases to cigarette and cigar stamping, to dealing with onerous reporting require-ments mandated by regulatory agencies.

• To offer industry-specific, timely and provocative educational sessions at our meetings. The Southern was the first to address, head-on, the issue of the changing face of our customer base through our cul-tural diversity initiative. We are leading the way again at this meeting with a session dealing with the seldom-talked-about-but-often-engaged-in topic of diverted product. The educational programming offered through the SLD has been outstanding as well, chal-lenging members, among other things, as to how to evaluate the true ROI of our businesses to be engaging in the social networking craze.

• To increase attendance at our trade show. The trade show floor for the show in New Orleans is sold out. This is the first time we have sold out the show floor in a number of years. Distributor registrations are at an all-time high. This is important because the show is what helps to fund all of the other things that we do for our

members. Supporting the show with your attendance is an investment in your business.

• To enhance the value of member-ship in the Southern. The Southern has always been a membership organization, but it has not always been a “members only” organization. There is a difference. This is the first year that the show will truly be open to members only. Non-members will not be allowed admittance. Going forward you will see more emphasis on promoting the value of member-ship in the Southern and to creat-ing and enforcing the value added aspects that membership entails.

As my year as your President comes to a close, I want to thank the members of my Executive Committee: Dick Dunham, Paula Glidewell, Randy Long, and Jimmy Stewart for their faithful service during my term and before. I want to thank my committee Chairs and Vice Chairs as well as the entire Board of Directors for their participation and support. Chris Smythers has done a great job as President of the SLD during his term. Finally, I want to thank our CEO, Greg Martin and his staff for their part in making the Southern a success.

Folks, the Southern will celebrate our 90th Anniversary next year. It is pretty impressive when a company or an organization celebrates 25, 50, or 75 years…ninety years of serving this industry puts The Southern in a class all its own. I can’t wait to see what the education and conven-tion committees cook-up for that celebration… we must be doing something right.

See y’all in “Nawlins!”

Sincerely,

Ricky Jones President

SAWD 2012 7

8 SAWD 2012

A Letter from the SLD PresidentWelcome to the 89th Annual Meeting and Trade Show of the Southern

Association of Wholesale Distributors in New Orleans, Louisiana . We are excited about the opportunities this year’s show will bring to our members .

The 2011 SLD Midyear Meeting held at the Emerald Grande in San Destin, Florida was another successful meeting . Attendance and participation from both our wholesale and manufacturer members were at a high and to me it was one of our most energetic meetings to date . Thanks to our manufacturer sponsors we were able to put on an excellent meeting with industry specific speakers and training . In addition we inserted open discussion among the diverse group of attendees . If you are not sending someone from your company to these meetings you are missing a golden opportunity!

It’s hard to believe I have already reached the end of my 2 year term as SLD president . I appreciate all the support everyone has given me and I look forward to my continued support of the SLD . It’s a great time to be a part of the SLD group! There are several new young faces in our group and they are full of great ideas . The energy level and momentum is fantastic! We have formed two new committees to focus on Technology and Education . They will be responsible for outlining future speakers, top-ics, and sessions as well as coming up with useful tools and communication methods for the SLD members . By forming these committees we hope to bring an added value to the SAWD as a whole by providing quality networking, education, and training not only at our annual Business Resource Meetings but throughout the year as well through on line tools available to all our members . It will be exciting to see this take shape!

My final plea is to all the SAWD wholesale members . Take notice of those who are on your team who may never get exposed to the industry outside your company walls . Are they future leaders in your company? Do they hold key positions? Can their actions highly affect the profitability of your company? If you answered yes to any of these questions then you have someone you can send to be a part of the SLD . Its not an expense… it’s an investment!!!

Thank you for the opportunity to serve as your president of the SLD .

Sincerely,

Chris Smythers

WARNING: This product can cause mouth cancer.

©2012 R.J. Reynolds Tobacco Co.

SNUS

10 SAWD 201210 SAWD 2012

Hospitality SuiteBe sure to drop by our “Southern Hospitality Suite”…during the day for a cup of coffee or a soft drink… and in the evening, a hosted bar.

It’s a great place to meet, make plans with friends, or just relax. Adjacent to the Hospitality Suite will be the Silent Auction to benefit our Education Fund. This Silent Auction features over $15,000 worth of items contributed by the members of

the Board of Directors, exhibitors, and others.

Hours Open:9:00 a.m. to 5:00 p.m. — Wednesday

After Dinner (About 10:00 p.m.) - Until — Wednesday evening9:00 a.m. to 5:00 p.m. — Thursday

After Dinner (About 10:00 p.m.) - Until — Thursday evening9:00 a.m. to 1:00 p.m. — Friday

River Room in the Riverside Building

The “Southern Hospitality Suite” is provided to all convention delegates by the Manufacturer & Broker Representatives on your

Southern Board of Directors:

Altria Sales and DistributionAmerican Snuff Company

Burdette BeckmannCommonwealth AltadisCreative Data Research

Dot FoodsJack Links Beef Jerky

Lil’ Drug Store ProductsLorillard Tobacco Company

Matrix BrokerageNational Tobacco

Nestlé USAR. J. Reynolds Tobacco Company

Republic Tobacco CompanySwedish Match

Swisher InternationalThe Hershey Company

Goldrush Beef Jerky & Beef Sticks9706 Crow Rd., Litchfield, Ohio 44253

330-725-1390goldrushjerky.com

AmericanAll

Made

12 SAWD 2012

College Scholarships $15,000 to be Awarded

This is a wonderful opportunity for students in college or technical school to help defray their school expenses. The dead-line for college scholarship applications was April 30, 2012, and we had over 30 students apply for the scholarships. Over $15,000 in scholarships will be given away at the show! Thanks to contribu-tions from members into the Southern’s Education Fund, we are able to fund all of the education functions at the conven-tion as well as give away over $15,000 in scholarships to our members, employees and family members. Scholarships are selected from applications from dues paid members. Contact the SAWD office if you would like an application for 2013!! 770-932-5810.

SAWD 2012 13

First Lady’s Social

First Lady Nancy Jones wishes to

extend an invitation to all spouses and guests

attending the Annual Meeting, to join her

for the First Lady’s Social which will

be held on Thursday, May 31st from

10:00 am until 11:30 am

in the President’s Suite.

This is an ideal opportunity to meet some of the

other attendees while enjoying the Brunch.

This Social is also a great meeting place to

gather with friends prior to going out for the day.

14 SAWD 2012

I have rarely been as excited about a meeting line-up for our conven-tion as I am for this year’s meeting

in New Orleans. It is not just because Louisiana is where I grew up, though that is part of it. It is not just because the food in New Orleans is arguably some of the best in the world, though that it part of it. It is not just because we are staying in the fabled French Quarter with all the jazz, fun, history, beignets, cable cars, restaurants and nightclubs you can stand, though that’s part of it. These things can be had with any trip to New Orleans and are always enjoyable. What has me so fired up about this year’s meeting is the unique parts of the meeting that the Educa-tion, Convention, and Government Affairs Commit-tees envisioned and that we have been working hard to execute. For starters, since this is an election year, the Education Committee wanted a politically-oriented speaker—we got none other than the legendary former Governor Edwin Edwards, Louisiana’s only four-term Governor and politi-cal icon. The committee envisioned provocative and informative education sessions—we are offer-ing three: a jam-up session on money saving ideas for distributors; the VP Global Conveniece Stores & Specialty Retail for The Hershey company conducting a session on what motivates retail consumers and the retailers who serve them; and the final session is an industry-first session on the topic of diverted product featuring and open and candid conversa-tion with a couple of folks that you have probably never heard of, but that are in the business of diverting product on a daily basis. If that weren’t enough, the Government Affairs Committee wanted to “kick the Industry Breakfast up a notch.” So, in addition to Mr. Riser who does

a fantastic job as our Legislative Liaison, we are excited to bring in Moon Griffon (pronounced “Gri-FONN”), a Louisiana radio talk show host who has been called “the Rush Limbaugh of Louisi-ana” and who just happens to be an entertainer and motivational speaker as well. We have sold out the show floor with over 93 exhibiting compa-nies and 111 booths. Most of these companies will be offering

show deals available to wholesale distributors in at-tendance at the show. For each order that distribu-tors place on the show floor, they “earn back” up to 50% of their registration fee in cash at the show! (Full details on the Distributor Rebate Program may be found in the on-site program).

Ok…if that’s not enough, the Convention Com-mittee wanted to get folks “off campus” to some great New Orleans venues…so, we have a private party for you at Pat O’Brien’s on Bourbon street, golf at TPC Louisiana, and an optional tour that will take folks to Magazine street which is one of New Orleans’ premier shopping and entertainment districts. Put all this together and you have a formula for increased profits, entertainment, education and ex-cellence that you won’t want to miss! I look forward to seeing you there!

Laissez les bons temps rouler (Let the good times roll!)

Greg Martin Chief Executive Officer

Profits Await in “The Big Easy”…

Customers know when it says “Swisher”

on the label, it’s a quality product. From

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800 .874 .9720

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16 SAWD 2012

1144 Broadway Rd., Sanford, NC 27332-9793919-774-9444 • www.jtdavenport.com

Providing Unparalleled Service For Over 90 Years

Convenience Store SpecialistsConvenience Store Specialists

Committed to“Fixing the Mix” through the use

of InfometricsBusiness

Intelligence.

SLD Midyear MeetingNovember 8-10, 2012 • Winston-Salem, NC

Hotel and Schedule TBD

SAWD 2012 17Paramus, NJ � 800.317.0377 � www.kmm-inc.com

Partnering with retailers for more than a decade.

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Supported by a full range of free FDA compliant POS and merchandising materials.

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18 SAWD 2012

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20 SAWD 2012

2011SAWD

ServiceAward

Ricky Jones with Andalusia Distributing Co. congratu-lates Carter Adair with Jack Link’s Beef Jerky who was awarded a 2011 SAWD Service Award.

Nick Zaden with City Wholesale received a 2011 SAWD Service Award. Shown with SAWD President Ricky Jones of ADC.

Dan McIntyre with Jackson Wholesale accepts the 2011 Lorillard Lou Gordon Humanitarian Award from Lorillard’s Bob Klein.

2011Lou Gordon

HumanitarianAward

2011SAWD

ServiceAward

2011LibertyAward

2011LibertyAward

Congratulations to Jeff Leischner with Thomas & Howard who received a 2011 SAWD Liberty Award. Seen here with SAWD President, Ricky Jones of Andalusia Distributing Co.

Nef Garcia with McLane Corporate accepts a 2011 SAWD Liberty Award from Ricky Jones with Andalusia Distributing Co.

SAWD salutes our2011 Award Winners!

2011 AWARD WINNERS

SAWD 2012 21

The Southern had a chance to recognize and thank Jim Colucci with Altadis USA for many years of service and sup-port. Mark Davenport, with J.T. Davenport & Sons, is shown with Jim at the presentation.

2011Career

AchievementAward

Jeff Eldridge with Lorillard Tobacco was awarded the 2011 Southern Leader of the Year Award by last year’s winner, Trey Williams with Thomas M. Williams & Assoc.

David Johnson with Nestle USA received the 2011 SAWD Candy Representative of the Year Award from Carter Adair of Jack Link’s Beef Jerky.

Clark Sturdivant with National Tobacco received the 2011 SAWD Tobacco Representative of the Year Award from the 2010 winner, Tony Barone of Altadis USA.

2011Candy

Representativeof the Year

Award

2011Tobacco Repof the Year

Award

2011Southern

Leaderof the Year

AwardSAWD salutes our2011 Award Winners!

2011 AWARD WINNERS

Education Fund Contributors 2012

22 SAWD 2012

Allison Wholesale

Altadis, USA

Altria Sales & Distribution

Andalusia Distributing

Ashland Specialty Company

Atlantic Dominion Dist.

Baton Rouge Tobacco

Burdette Beckmann

Caldwell Wholesale

Central Sales Company

Charles C. Parks Co.

Church Point Wholesale

Cigarette Sales

Claude’s Candy Brokerage Co.

Coastal Wholesale Grocery

Commonwealth Brands

Core-Mark, International

Corso, Inc.

Creative Data Research

Dot Foods

Douglas Companies

Eby-Brown Company

FAAN Cigars

Franklin Supply, Inc.

Glidewell Distributing Company

Grocery Supply Company

Gummer Wholesale

H. T. Hackney Co.

Hardec’s

Home Folks Wholesale

Imperial Trading Company

Inter-Continental Cigar Corporation

J.F. Johnson, Inc.

J.L. Gaddy Wholesale

J.T. Davenport & Sons

Jack Link’s Beef Jerky

Jackson Wholesale Co.

Joshen Paper

Kelloggs Keebler

King III Solutions

Lag Inc. dba Jay Bee Co.

Liggett Vector Brands

Lil’ Drug Store

Long Distribution

Lorillard Tobacco Company

Lyons Specialty Co.

M. R. Williams, Inc.

Management Science Associates

Matrix Brokerage

McLane Company, Inc.

Merchants Grocery Company

Meyercord Revenue

National Tobacco Company

Nestlé USA

Oberto Brands

Pelican Cigar

Penguin Ice

Quik Trip Corp.

R. J. Reynolds

Renfro Supply Co.

Republic Tobacco

Retalix SCM, Inc.

Seneca Southeast Wholesale

Sledd Co.

Smith Wholesale Co.

Smokey Mountain Chew

Southco Distributing Company

Standard Distributing Co.

Stephenson Wholesale

Stewart Candy Manufacturing Co.

Stewart Distribution Co.

Swedish Match of North America

Swisher International

The Corr-Williams Company

The Hershey Company

Thomas & Howard Company

Thomas Williams & Associates

Topicz

Trend Settah Inc.

Tri-Star Distributing

Turkey Creek Snacks

UniPro Foodservice, Inc

US Roasterie

Venture Sales

24 SAWD 2012

Long Wholesale, Inc.5173 Pioneer Drive • Meridian, MS 39301

P.O. Box 667 • Marion, MS 39342

(601) 482-3144 • (800) 828-5664 • Fax (601) 482-3109

Long Wholesale Distributors, Inc.201 North Fulton Drive • Corinth, MS 38834

P.O. Box 250 • Corinth, MS 38835-0250

(662) 287-2421 • (800) 822-5664 • Fax (662) 287-6689

MeridianKenny Coghlan

Ray Long, Jr.Sam E. Long, III

Trey LongBarnes Marshall

Corinth Rusty Boone

Tracy DyeJeff JohnsonRandy Long

Tommy Stine

www.longwholesale.com

SAWD 2012 25

230 South 22nd Street • Durant, OK 74701Phone 580-920-0110 • Fax 580-920-1323 • Toll Free 800-442-2880

www.INWsupply.com

Durant • Norman • Lawton

26 SAWD 2012

new exhibitor SpotlightWe would like to extend a warm Southern Welcome

to the following exhibitors who are showing for the first time (or who have not been with us in several years)…

4:20 tobaccoaccess internationalCB distributorsCdMadriarip acquisitions LLCdynapep CorporationFiniti Branding GroupFun Factory CandyGood West industrieshunid racks tobacco LLCMars ChocolateMedina Foods

national Fruit Flavornovelty inc.opticon, inc.PaF associates LLCSignal CigarettesSouthern Beveragetell industriestobacos, USa inc.US Vapor CorporationV2 incentivesVictory energizeWis-Pak

4:20 tobaccoaccess internationalCB distributorsCdMadriarip acquisitions LLCdynapep CorporationFiniti Branding GroupFun Factory CandyGood West industrieshunid racks tobacco LLCMars ChocolateMedina Foods

national Fruit Flavornovelty inc.opticon, inc.PaF associates LLCSignal CigarettesSouthern Beveragetell industriestobacos, USa inc.US Vapor CorporationV2 incentivesVictory energizeWis-Pak

SAWD 2012 27

28 SAWD 2012

15th Annual Silent Auction to Benefit the Education Fund

The Southern’s Education Fund was established several years ago to provide educational opportunities for members, their employees and family members. The Silent Auction, which will be held throughout the convention, will raise money for the fund. Our Education and Convention Committees last year were successful in raising over $15,000 for our Education Fund through the Silent Auction. With your support and participation we hope to exceed that figure this year. Items are offered through the generosity of Southern members and exhibitors. Some of the items already committed for this year include:

Prize Donated By Retail Opening

Custom Design Patriotic Corn Hole Set Merchants Grocery Co. Inc. $300 $150

Pearl, Silver, Lab created stones:

Pendant Burdette Beckman Inc. $145 $75

Earrings Burdette Beckman Inc. $145 $75

Ring Burdette Beckman Inc. $145 $75

2 Gerber Knives Swedish Match $100 $50

Limited Addition Silver Stag Knife (Only 250 madeand certificate of authenticity)

Swedish Match $300 $150

Gold Earrings Atlantic Dominion Dist. $600 $300

Diamond Cross Necklace Southco Distribution $400 $200

Oakley Men’s Sunglasses Southco Distribution $150 $75

Scotty Cameron Putter Lorillard Tobacco Company $300 $150

Yamaha desktop audio system Republic Tobacco $309 $150

3 day Spring turkey hunt at Candyland for two.(Spring 2013 between late March and early May)

Stewart Distribution $400 $200

Charleston Sweetgrass Baskets JL Gaddy Enterprises $150 $75

Machine Gun Matrix Brokerage $850 $425

iPad 3, WiFi, 32 GB Creative Data Research $600 $300

Ladies Weekender Bag w/ Cosmetics Case SAWD Member Donations$50 $25

Williams Sonoma Serving Platter & Silicone PotHolders/Trivets

SAWD Member Donations $55 $25

Williams Sonoma Gift Package w/ Mesh Grill, Spices, and Fish Spatula


Pandora Gray Pearl Necklace SAWD Member Donations $110 $55

Bose SoundDock Digital Music System SAWD Member Donations $225 $110

Nikon Coolpix L120 Digital Camera SAWD Member Donations $300 $150

Men’s Citizen Eco-Drive Atomic Watch SAWD Member Donations $325 $160

Grey Dog Studio Tumbled Sea Glass Utensils andHors d’oeuvre Set


Ladies’ Citizen Eco-Drive Atomic Watch SAWD Member Donations $210 $100

Brighton Joliet Necklace and Earrings SAWD Member Donations $90 $45

Waring Pro Snow Cone Maker w/ Syrup SAWD Member Donations $85 $40

Lots of other surprises purchased by Staff with your generous contributions!!!!!

SAWD Member Donations $$ $

SAWD 2012 29

30 SAWD 2012

WELCOME NEW MEMBERS!On behalf of the members, directors, and officers of The Southern,

we would like to welcome the following new members:

Cochran Brothers Co.

Faan Cigars

Kraft Foods

Mars Chocolate

Medina Foods

MoBiSoFt

PaS associates LLC

tobacos USa, inc.

trend Settah, inc.

tri-Star distributing

U.S. Flue-Cured tobacco

W. L. Petery Wholesale Co.

A Note About Anti-Trust…As this meeting begins, we must remind you

of certain essential ground rules which must be respected, not only at this meeting, but on every occasion, social or otherwise, during any meeting of The Southern Association of Wholesale Distributors.

There can be absolutely no discussion between or among competitors at any time concerning prices you charge or propose to charge your customers… the price you pay or propose to pay your suppliers… or the terms and conditions under which you buy and sell the products in which you deal.

The antitrust laws are designed to encour-age competition at all levels of production and distribution. The Southern Association of Whole sale Distributors is committed to ad herence to those laws. Please keep these principles in mind for the benefit of us all.

SAWD 2012 31

www.hersheys.com©2012 The Hershey Company

LEADING CATEGORY RESULTSICONIC BRANDS I INNOVATION I INSIGHTS I RETAIL DEMAND

Hershey’s continuous innovation sparks new customers and re-energizes

the category. By launching new classics such as HERSHEY’S® AIR DELIGHT™ aerated chocolate, REESE’S® Minis and HERSHEY’S® Drops, Hershey’s

innovation helps drive demand. To learn more, contact your Hershey’s Customer Sales Executive today.

PROUD TO SUPPORT THE SOUTHERN ASSOCIATION OF WHOLESALE DISTRIBUTORS

32 SAWD 2012

The beautiful Emerald Grande Resort in Destin, Florida, was the location for the 2011 SLD Business Resource Meeting. Members of the Southern Leadership Division participated in a two-day confer-ence focusing on topics specific to the convenience products industry.

Informative and interactive ses-sions were well received on topics such as “Unleash Your Full Potential” led by Maria Miro-Narlock, partner with Spotlight Innovations and “Finding the Right Formula to Maximize the Profit of Your Shelf Space” with Michael Hughes, Southeast Area Sales Director, C-Store Channel of The Hershey Company. Terrance Barkan, CAE of SOCIALSTRAT, spoke on the very current topic of using social media to enhance our businesses

with “Social Media—What is the Business Case?”

A panel discussion on “Best Practices in Wholesale Distribution” was led by some of The Southern’s own distribu-tors. As always, these discussions offered many new and different ideas for those in attendance to take back to their own businesses.

A great time was had at by all—ask those who attended about the singing Gerber Baby!

A very special thanks goes to our sponsors for their generous assistance in making this meeting a success!

Platinum SponsorsLorillard Tobacco

R. J. Reynolds Tobacco

American SnuffSAWD Education Fund

Gold SponsorsAltadis USA

Altria Sales & DistributionSwedish Match

Swisher International

Silver SponsorsCreative Data Research

National TobaccoThe Hershey Company

Bronze SponsorsCommonwealth Brands

Jack Link’s Beef JerkyRepublic Tobacco

SLD Meeting in Destin, FloridaSLD Meeting in Destin, FloridaSLD Meeting in Destin, FloridaSLD Meeting in Destin, Florida

SAWD 2012 33

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34 SAWD 2012

Note: This is a tentative schedule of events.All details subject to change.

www.the-Southern.org will alwayshave the latest information.

The on-site program supersedes all pre-printed materials

TUESDAY, MAY 29

2:00 PM - 5:30 PMRegistration Desk Open

2:30 PM - 3:30 PMChair/Vice Chair Meeting

3:30 PM - 4:30 PMCommittee Meetings

4:30 PM - 5:30 PMFinance & Budget Committee

5:30 PM - 6:30 PMExecutive Committee Meeting

6:45 PM - 9:30 PMChairman’s Reception & DinnerFor members of the Board of Directors and Past Presidents.

WEDNESDAY, MAY 30

8:00 AMStart Time for Golf Tournamentat TPC Louisianawww.tpc.com/tpc-louisianaSee insert for registration form.

9:00 AM - 5:00 PMRegistration Desk Open

10:00 AM - 4:00 PMOptional Tour and Luncheon

“Matisse on Magazine”

Magazine Street—one of New Orleans’ premier shop-ping and entertainment districts —is an unparalleled collection of neighborhoods with a diverse array of busi-nesses, shops, restaurants

and hot spots. After some time experiencing the “Magazine scene” we will enjoy an authen-tic New Orleans lunch at Corks-n-Canvas (Painting with a Twist). After lunch you will get to paint your very own masterpiece! No previous experience or talent necessary and a local artist will lead you step-by-step through

the process of recreating the featured artwork. This is not your average art class, this is art entertainment. Your masterpiece is your sou-venir of the day. (If you don’t think you could hang it over your mantle, it may be entered in the Silent Auction to support the education fund!)

4:00 PM - 5:00 PMSAWD Board of Directors’ Meeting

4:00 PM - 5:00 PMSLD Board Meeting

6:00 PM - 7:00 PMWelcome ReceptionAll invited

7:15 PM - 10:00 PMSouthern Soirée

Dinner and awards done “Southern style.”Hospitality Suite - Open to All

THURSDAY, MAY 31

7:15 AM - 5:00 PMRegistration Desk Open

7:00 AM - 8:30 AMKick-Off Breakfast (Continental)

7:30 AM - 8:45 AMGeneral Session - Keynote Speaker

“When Worlds Collide: An Insider’s Look at the Intersection of Business and Government”

Edwin W. EdwardsFormer GovernorState of Louisiana

Edwin Edwards served as the Governor of Louisiana for four terms—twice as

many terms as any other Louisiana chief executive has served. A colorful, powerful and legendary figure in Louisiana politics, Edwards was long dogged by charges of cor-ruption. Governor Edwards was, and remains today, an iconic figure in Louisiana politics. Distributors and manufacturers spend ever-increasing resources in the area of govern-mental affairs. Governor Edwards knows just a little bit about the intersection of business and government and will be with us to talk about it.

9:00 AM - 12:20 PMEducation Sessions

9:00 AM - 10:00 AM“This Ain’t Your Mamma’s Coupon Box”

Facilitated Panel DiscussionPanelists TBA

To survive in a difficult business environ-ment prudent businessmen and women must remain ever-diligent to find ways to control costs. Benchmarking what other companies are doing to save money can be an outstand-ing source of ideas and inspiration. This information-packed session, conducted by your peers in the industry, promises to deliver a tractor-trailer load of ideas to significantly improve your bottom line. You’ve seen NACS’ “Ideas-to-Go” sessions for retailers …well this is the Southern’s version designed specifically by wholesalers and for wholesalers. Don’t miss it!

10:10 AM - 11:10 AM“Finding the Right Formula to Maximize the Profit of Your Shelf Space”

Andy JacobsVP and General Manager U.S. CustomersThe Hershey Company

The Hershey Company recently released the results of an industry-wide research study looking into the behavior and motivation of retail consumers and the retailers who serve them. Join Hershey’s VP and General Manager U.S. Customers, Andy Jacobs as he shares the results of this comprehensive analysis and what you can derive from it that will enhance your profitability. Attendees at this session will learn:

• What are the current factors impacting con-sumers?

• What are the current factors impacting retailers?

• What is candy’s contribution to you profit-ability?

• How to leverage candy’s profitability.• The importance of merchandising and

assortment.• How to leverage candy for cross promotion.• What are your category growth drivers and

how to enhance them.

www.The-Southern.org

34 SAWD 2012

SAWD 89th Annual Meeting and Trade Show — Schedule of Events

SAWD 2012 35

= Ticket Required

The Southern3459 Lawrenceville Suwanee Road

Suite CSuwanee, GA 30024-6427

Ph) 770-932-5810Fax) 770-932-3276

www.the-southern.org

11:20 AM - 12:20 AM“Diverters: The 800 Pound Gorilla in the Room”

Facilitated Panel DiscussionFacilitator: TBAPanelists: Peter Cranston Sam Haddad

There are lots of conversations occurring these days in our industry about who’s divert-ing product to whom, in which category channels and why. Diverted product is a real-ity. It’s not illegal, but at the same time a lot of us just aren’t comfortable with it. Come listen to an open and candid session about the “whys” and the “why nots” of considering alternative sources of product. Don’t miss get-ting the inside scoop from the experts on how this part of our channel works, and if you should be opening your eyes to opportunities that are right in front of you.

10:00 AM - 11:30 AMFirst Lady’s SocialOpen to All Spouses and Guests

12:30 PM - 1:45 PMState Association Executives & Political Affairs Luncheon

1:30 PM - 5:00 PMGrand Opening of Exposition

6:00 PM - 7:00 PM“Get Acquainted Reception”

7:15 PM - 10:00 PMAwards Banquet

This evening is an opportunity to recognize some of the Southern’s award recipients...people who have each demonstrated extensive commitment to service and achievement in the industry.

Hospitality Suite - Open to All

FRIDAY, JUNE 1

7:00 AM - NoonRegistration Desk Open

7:00 AM - 8:30 AMIndustry Breakfast (Continental)

7:15 AM - 7:30 AMGeneral Membership Meeting

7:30 AM - 7:45 AM“Governmental Affairs Update”

Dave RiserVP External Relations Trade MarketingR. J. Reynolds

Legislative Liaison to the Southern’s Board of Directors, Dave Riser, will bring you the latest developments in state and federal legislation and regulation including the latest from the FDA.

7:45 AM - 8:30 AMKeynote Speaker

Moon GriffonTalk Show Host, KMLB FM

Blane “Moon” Griffon is a conservative radio talk show host who broad-casts statewide through station KMLB FM in Monroe, Louisiana. He has sometimes been called the “Rush Limbaugh of Louisiana” though his program reflects his distinct Louisiana accent and his own brand of poli-tics. Besides his Monroe outlet, Griffon broad-casts from stations throughout Louisiana as well as in Natchez, Mississippi. Moon is not only a radio talk show host with his finger on the pulse of politics, he is an entertainer and motivational speaker as well. Join us for this entertaining and enlightening session featur-ing the “Louisiana Limbaugh.”

8:45 AM - 9:45 AMDistributors Forum

Representatives of All Distribution Companies are Encouraged to Attend. This meeting is open to Distributors only.

8:45 AM - 9:45 AMExhibitors Forum

Representatives of All Exhibiting Companies are Encouraged to Attend.

10:00 AM - 10:45 AMBoard of Directors Meeting

10:45 AM - 11:45 AMExecutive Committee Meeting

11:00 AM - 2:00 PMExposition Open

6:00 PM - 10:00 PMSLD Social

“Party at “Pat O’s”!”

Join us for a private party at a location that is world renowned as the hospitality spot of New Orleans - Pat O’Brien’s! Established in the early 1900’s, Pat O’Brien’s is known the world over as the most popular and fun-filled establishment anywhere. We will enjoy our party in a private room, located on the second floor of the Annex, complete with a full bar, copper grand piano and a private Bourbon Street Balcony where some beads will be thrown! A piano player will entertain us on the baby grand piano as we enjoy plentiful drinks from the famous Pat O’Brien’s bar as well as an authentic New Orleans style dinner. After the party, you can choose to ride back to the hotel- or- continue to party on Bourbon Street. Your ticket includes transportation, dinner, open bar, and good old SLD entertain-ment!

For Members Only

SAWD 89th Annual Meeting and Trade Show — Schedule of Events

Pre-purchase your raffle tickets for a chance to win either the latest generation Ipad or one of $500 cash prizes. Proceeds will go to support the Education Fund. For your con-venience, we have included a space for you to order your tickets right on the convention registration form. Tickets will be sold on-site as well.

36 SAWD 2012

A.C. MayPelican Cigar Co.Lake Charles, LA

1985 - 1986

Council of Presidents

Ken CaldwellCaldwell Wholesale Tobacco Co.

Shreveport, LA1992 - 1994

Jack CoferJames D. Cofer, Inc.

Atlanta, GA1994 - 1996

Dick BrayPremier Beverage & Equipment

Franklin, TN1989 - 1990

Grady SmithTVC Wholesale, Inc.

Florence, AL1988 - 1989

John GreenP.M. Green & Sons

Cleveland, TN1979 - 1980

Scott FisherSpartan Automatic Retailers

Memphis, TN1990 - 1992

John HeadHead Distributing Company

Smyrna, GA1986 - 1988

Duane SchneiderDUSA Distribution Center, Inc.

Melbourne, FL1996 - 1998

Bob PierpointImperial Trading Co., Inc.

Elmwood, LA1998-2000

Mike JonesAndalusia Distributing Co., Inc.

Andalusia, AL2000-2002

Steve ShingGrocery Supply Co.Sulphur Springs, TX

2002-2004

Sherwin HerringSouthco Distributing Company

Goldsboro, NC2004-2006

Mark DavenportJ. T. Davenport & Sons, Inc

Sanford, NC2006-2008

SAWD 2012 37

Santa Fe Natural Tobacco Company is a Signatory to the Master Settlement Agreement.Natural American Spirit® is a registered trademark of Santa Fe Natural Tobacco Company.® SFNTC 2 2012

For more information, contact Santa Fe Natural Tobacco Company at 855.676.5440.

Natural American Spirit, the No.1 brand of 100% additive-free natural tobacco products, is proud to offer two styles

of cigarettes made with 100% U.S. Grown tobacco.

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38 SAWD 2012

Jimmy StewartBoard Chairman

Stewart DistributionWaycross, GA

Greg MartinChief Executive Officer

SAWDSuwanee, GA

Dick DunhamVice President

Stephenson Wholesale Co.Durant, OK

2012 SAWD Executive Committee

Ricky JonesPresident

Andalusia Distributing Co., Inc.Andalusia, AL

Paula GlidewellVice President/ComptrollerGlidewell Distributing Co.

Fort Smith, AR

Randy LongVice President

Long WholesaleCorinth, MS

3535

Texarkana, ArkansasConway, Arkansas

www.douglascompanies.com

has been a leader in convenience products distribution!

For more than

40 SAWD 2012

2012 SAWD State Directors

Don ChildersHome Folks Wholesale

Augusta, GA

Anthony GardnerLAG, Inc.

Tucker, GA

Emile CantrellImperial Trading

Elmwood, Louisiana

Charlie CasperHardec’s

Elizabethtown, KY

Steve DouglasDouglas Companies

Texarkana, AR

Butch YoumansH.T. Hackney

Opp, AL

Nelson ParkerAllison Wholesale, Inc.

Paint Rock, AL

Liz JoachimCorso, Inc.Biloxi, MS

Keith LandenFranklin Supply

Franklin, LA

Dan McIntyreJackson Wholesale

Jackson, KY

Danny AustinMcLane

Kissimmee, FL

C

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CM

MY

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CMY

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CDR_2012_SAWD_ad_PRINT_02.pdf 1 2/28/12 12:09 PM

SAWD 2012 41

42 SAWD 2012

2012 SAWD State Directors

Elvin SmythersMerchants Grocery Co., Inc.

Culpepper, VA

Robin RayAtlantic Dominion Distributors

Virginia Beach, VA

Randy EmanuelsonSledd Co.

Wheeling, WV

Lawson WilliamsM. R. WilliamsHenderson, NC

Jim NaifehStandard Distributing Co.

Sapulpa, OK

Gordon MundenAtlantic Dominion Distributors

Hope Mills, NC

Scott McPhersonCore-Mark

Fort Worth, TX

James “Bucky” Johnson

J.F. Johnson, Inc.Batesburg-Leesville, SC

Charlie SmithSmith Wholesale Co., Inc.

Johnson City, TN

Jeff LeischnerThomas & Howard Co.

Columbia, SC

FRESH JERKY DONE THE JACK LINK’S WAY

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Contact your Jack Link’s Sales Representative for more informationLink Snacks, Inc. • One Snack Food Lane • Minong, WI 54859 • 715-466-2234 • JackLinks.com

Proud Member of the SAWD

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44 SAWD 2012

2012 At-Large Directors

2012 SAWD Board Broker Rep, SLD Rep, Legislative Liaison

Bob Taylor, Sr.Broker Representative

Burdette Beckmann, Inc.Hollywood, FL

Chris SmythersSLD RepresentativeMerchants Grocery

Culpepper, VA

Dave RiserLegislative Liaison

R.J. ReynoldsWinston-Salem, NC

Bennett RobertsBroker Representative

Matrix BrokerageChapel Hill, NC

Steve ShehaneBaton Rouge Tobacco

Baton Rouge, LA

Bill WilkersonJ. L. Gaddy Wholesale

Hickory Grove, SC

Nick ZadenCity Wholesale Grocery

Birmingham, AL

Hugh RaetzschLyons SpecialtyPort Allen, LA

David EdwardsCoastal Wholesale

Kinston, NC

Sam StewartSteward Distribution

Waycross, GA

Corey CooperStephenson Wholesale

Durant, OK

www.stewartcandy.com

46 SAWD 2012

Manufacturer Representatives

Steve SandmanRepublic Tobacco

Bill DunnSwisher International, Inc.

Michael HughesThe Hershey Company

Tony ClantonSwedish Match

Dave RiserR. J. Reynolds Tobacco

Co.

Victoria Person-GoralR. J. Reynolds Tobacco Co.

Dave JohnsonNestlé USA

Clark SturdivantNational Tobacco

Bob KleinLorillard Tobacco

Company

Tom BriceLil’ Drug Store

Carter AdairJack Link’s Beef Jerky

Mandi ClarkDot Foods

Tony BaroneAltadis Commonwealth

April DrummondAltria Sales & Distribution

Russ MancusoAltadis Commonwealth

Jebb MaginnisCreative Data Research

SAWD 2012 47

48 SAWD 2012

Old Dominion Tobacco Co. A.T.C. WholesaleTrading as

HeadquartersVirginia Beach, VA

Hope Mills, NCSince 1875

SAWD 2012 49SAWD 2012 49

Providing what you need, when you need it

A Family BusinessSince 1926

50 SAWD 2012

SLD 2011 – 2012 SLD Officers and Directors

OfficersChris Smythers, Merchant’s Grocery, Culpeper, VA, President

Mickey McDaniel, Imperial Trading, New Orleans, LA, Vice President

Barry Krebs, Keebler Company, Mableton, GA, Treasurer

Jeff Eldridge, Lorillard Tobacco Company, Jacksonville, FL, Secretary

Sam Stewart, Stewart Distribution, Waycross, GA, Board Chairman

DirectorsChris Herbert, Altria Sales & Distribution, Charlotte, NC

Chris Jones, Andalusia Distributing Co ., Andalusia, AL

Marc Margolis, Creative Data Research, Ann Arbor, MI

Marty Howell, H . T . Hackney, Opp, AL

Donnie Childers, Home Folks Wholesale, Augusta, GA

Trey Long, Long Distribution, Marion, MS

Mike Thorner, National Tobacco, Louisville, KY

Ron Leitner, R . J . Reynolds Tobacco, Winston-Salem, NC

April Garver, Southco Distributing, Goldsboro, NC

Chris Wise, Southco Distributing, Goldsboro, NC

Victor Blanco, Swisher International, Ponte Vedra, FL

Jere Loggins, Thomas & Howell, Columbia, SC

Trey Williams, Thomas Williams & Assoc ., New Orleans, LA

SAWD 2012 51

52 SAWD 2012

Focused on C-Store Wholesalers and C-Store Retailers.Our focus is “Your Business” in the following markets:

FL, N & S Carolina, VA, MD, TN, AL & GA

Corporate O�ce5851 Johnson Street, Hollywood, FL 33021

Phone 954-983-4360 Fax 954-983-4405

Additional O�ces:

Burdette Beckmann, Inc.12830 W. Creek Pkwy, Richmond, VA 23238

Phone 804-346-4949 Fax 804-346-4977

Burdette Beckmann, Inc.116 Associate Lane, Indian Trail, NC 28079

Phone 704-821-4677 Fax 704-821-4654

Burdette Beckmann, Inc.516 Douglas Ave., Ste. 1102, Altamonte Springs, FL 32714

Phone 407-869-0797 Fax 407-869-0059

Home Folks Wholesale Co., Inc.Since 1938

Distributors of convenience grocery, candy, tobacco, and general merchandise.

Visit us on the Web atwww.homefolksdist.com

2001 Westside Dr., Augusta, GA 30907706-868-0055 • 800-762-7588

Fax: 706-868-1154

SAWD 2012 53

Home Folks Wholesale Co., Inc.Since 1938

Distributors of convenience grocery, candy, tobacco, and general merchandise.

Visit us on the Web atwww.homefolksdist.com

2001 Westside Dr., Augusta, GA 30907706-868-0055 • 800-762-7588

Fax: 706-868-1154

By Dan Kiefer

If you had to guess, how much would you say it costs to keep inventory in your warehouse every year? If you don’t know, you’re not alone. As many as 65% of the wholesalers in the United States don’t know what their carrying costs are. If you are among them, I can promise you this: that cost is likely much higher than you think. In fact most experts estimate the annual cost of carrying inventory is between 18 and 35% with some estimates as high as 50%!

In an economy where interest rates are at historic lows, it’s easy to fall into the trap of thinking that since inventory seems cheap, you’re better off carrying extra. The unfortunate reality is that the interest you pay on your inventory actually makes up a very small portion of the total cost of carrying that inventory. In order to find the true cost of your inventory, you must make sure you factor in things such as the cost of money, storage, taxes, obsolescence and shrinkage. Although these costs will vary from one company to the next, they will always be present. Let’s investigate these costs and how each would contribute to carrying cost for a wholesaler with an average inventory of $5,000,000. These calculations are based on numbers provided by The Society of Cost Management.

Cost of money The first, and by far largest factor in inventory carrying cost is the cost of money. Yes, this includes the interest you are paying on your money, but it’s much more than just that. The larger part of the cost of money comes from lost opportunity cost. If you currently have $5,000,000 of inventory, you likely have that sitting on a credit line. If you could reduce your inventory to $4,000,000, what would you do with the $1,000,000 of increased cash flow? Would

you let it sit unused? More than likely not. You would probably reinvest it where it could help your company. New trucks, expanded territories, additional people, and newer, more efficient technology all become possi-ble with that increased cash flow. This cost is typically seen as about 15% of your average inventory.

Cost on $5M of inventory = $750,000

StorageWhether you own or lease, you are paying for warehouse space. The more inventory you have, the more warehouse space you need. In addi-tion, you probably have an expensive

set of racks, conveyors and mezzanines. If you didn’t have so much inventory, what would you do with the smaller space requirement? Would you have a smaller warehouse? Could you rent out the extra space? Would you expand your product offerings? If so, please see: “Opportunity Cost”.

Storage cost typically adds 4% to your carrying cost.


TaxesAs Ronald Reagan said, “Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.” Your inventory is always moving…so the government will tax it. Some districts tax inventory outright. The more inventory you have, the more taxes you will pay. Even if you are fortunate enough to operate in a district where this is not the case, most accounting rules see inventory as an asset. Any time you increase inventory, it shows as a “profit” and will be taxed as such.

54 SAWD 2012

The Million-Dollar Question: How Much Does It Cost to Carry Inventory?

SAWD 2012 55

Taxes will generally add 2.5% to your annual carrying cost.


Obsolescence and SpoilageThere’s no denying it, as quickly as trends come and go in this day and age, there will be times when products in your inventory will become obsolete. No matter how efficient your buying staff or how long they have been in their roles, they can’t possibly anticipate every change in the market. If you have any VCRs in your warehouse today, it’s a safe bet they won’t be going anywhere.

Typical losses due to obsolescence and spoilage is 1%.


Shrinkage and DamageThis category should not be confused with obsolescence. This category includes inventory that came into the ware-house and should have been sold but can’t and won’t be. Where as obsolescence and spoilage have to do with purchasing and the market demand, pilferage and dam-age can often be attributed to human behavior in your warehouse. Although this cost can vary greatly from one warehouse to the next, and can often be controlled and reduced, it can never really be eliminated.

Whether a forklift hits a pallet, a jar gets dropped during handling, or someone gets over zealous with a box cut-ter, damaged products in a warehouse are a fact of life and must be accounted for. The longer something sits in your warehouse, the greater the risk of it being damaged or disappearing.

The typical cost associated with shrinkage and damage is 1%.


InsuranceYour insurance company is most likely charging you based on the average amount of inventory you have on-hand in your warehouse. Although this cost is not huge, it is still present.

Insurance costs are typically .5%.


Total annual carrying cost on $5M of inventory = $1,200,000

There you have it…the answer to the million-dollar ques-tion. The normal carrying cost is about 24%. The bad news is that regardless of how much inventory you have, you will always be subject to carrying costs. The goal of the most successful distributors is to reduce the amount of excess inventory present in their warehouse to mini-mize that costs. For every $1,000,000 you reduce your inventory, you will see a real annual savings of $240,000, not to mention the increased cash flow.

As the saying goes, you can’t manage what you don’t measure. The first step in controlling you carrying cost is understanding that it is always there. However, the big-gest challenge for any distributor trying to control this cost is balancing inventory levels with service levels. As one of our customers said, “Too much inventory may cost you money, but not having enough will cost you custom-ers.” This is why it is even more important than ever to make sure you’re replenishment process looks at both sides of the proverbial coin.

56 SAWD 2012

Officers & Directors EXECUTIVE COMMITTEE

President Ricky Jones Andalusia Distributing Vice President Dick Dunham Stephenson WholesaleVP/Compt. Paula Glidewell Glidewell DistributionVice President Randy Long Long WholesaleBoard Chairman Jimmy Stewart Stewart Distribution

STATE DIRECTORS

STATE DIRECTORS COMPANY Alabama Butch Youmans H. T. Hackney Alabama Nelson Parker Allison Wholesale Arkansas Steve Douglas Douglas Companies Florida Danny Austin McLaneGeorgia Don Childers Home Folks Wholesale Georgia Anthony Garner Lag Inc. Kentucky Charlie Casper Hardec’s Kentucky Dan McIntyre Jackson Wholesale Louisiana Keith Landen Franklin Supply Louisiana Emile Cantrell Imperial Trading Mississippi Liz Joachim Corso, Co. North Carolina Gordon Munden Atlantic Dominion Dist. North Carolina Lawson Williams M. R. Williams, Inc. Oklahoma Jimmy Naifeh Standard Distributing Co. South Carolina Bucky Johnson J. F. Johnson, Inc. South Carolina Jeff Leischner Thomas & Howard Co. Tennessee Charlie Smith Smith Wholesale Tennessee Scot Shanks L. P. Shanks Co. Texas Scott McPherson Core-MarkVirginia Robin Ray Atlantic Dominion Distributors Virginia Elvin Smythers Merchants Grocery Co., Inc. West Virginia Randy Emanuelson Sledd Company

AT-LARGE DIRECTORS

NAME COMPANY Steve Shehane Baton Rouge Tobacco (LA) Sam Stewart Stewart Distribution (GA)Bill Wilkerson J. L. Gaddy (SC) David Edwards Coastal Wholesale (NC) Nick Zaden City Wholesale Grocery (AL)Hugh Raetzsch Lyons Specialty (LA)Corey Cooper Stephenson Wholesale (OK)

SAWD 2012 57

Elected and InstalledBROKER & SLD REPRESENTATIVES/LEGISLATIVE LIAISON

NAME COMPANY BROKER/SLD Bob Taylor Burdette Beckmann Broker Representative Bennett Roberts Matrix Brokerage Broker RepresentativeChris Smythers Merchants Grocery SLD RepresentativeDave Riser R. J. Reynolds Legislative Liaison

MANUFACTURER REPRESENTATIVES

NAME COMPANY April Drummond Altria Sales and Distribution Tony Barone Commonwealth AltadisRuss Mancuso Commonwealth AltadisJebb Maginnis Creative Data ResearchMandi Clark Dot FoodsCarter Adair Jack Links Beef Jerky Tom Brice Lil’ Drug Store ProductsBob Klein Lorillard Tobacco Clark Sturdivant National Tobacco David Johnson Nestlé USADave Riser R. J. Reynolds Tobacco Company Victoria Person-Goral R. J. Reynolds Tobacco CompanySteve Sandman Republic Tobacco Tony Clanton Swedish Match Bill Dunn Swisher International, Inc. Michael Hughes The Hershey Company

COUNCIL OF PRESIDENTS

NAME YEAR(S) SERVED COMPANY Mark Davenport 2006-2008 J. T. Davenport & Sons, Inc.Sherwin Herring 2004-2006 Southco DistributingSteve Shing 2002-2004 Grocery Supply Company Mike Jones 2000-2002 Andalusia Distributing Company Robert Pierpoint 1998-2000 Imperial Trading Company Duane Schneider 1996-1998 DUSA Distribution Center Jack Cofer 1994-1996 James D. Cofer, Inc. Ken Caldwell 1992-1994 Caldwell Wholesale Scott Fisher 1990-1992 Spartan Automatic Retailers Dick Bray 1989-1990 Premier Beverage & Equipment Grady Smith 1988-1989 TVC Wholesale John Head 1986-1988 Head Distributing A. C. May 1985-1986 Pelican Cigar John Green 1979-1980 P.M. Green and Sons Bert Trompeter 1973-1976 John F. Trompeter Company

58 SAWD 2012

A Full ServiceConvenience Store

Supplier

Since 1937

(256) 776-3268 • 1-800-239-5173Fax: (256) 776-4717

Highway 72 EastPaint Rock, Alabama 35764www.allisonwholesale.com

SAWD 2012 59

SAVE THE DATE!

Show Days Tuesday, April 23 and Wednesday, April 24

60 SAWD 2012

Orlando Wrap-Up 2011

The Southern’s 2011 Annual Meeting and Trade Show was held at the Gaylord Palms Resort & Convention Center in Orlando, Florida. The

meeting featured the 2nd largest trade show for convenience wholesalers in the country: Southern Showcase 2011.

In addition, attendees received outstanding industry-specific educational sessions, updates on industry and legislative issues and a host of net-working opportunities including: golf at The Golden Bear Club, awards dinners on Thursday and Friday

evenings, the Silent Auction that benefits the SAWD Education Fund, the Hospitality Suite with our very own Karaoke entertainment, a “Winter Park City Tour” optional outing and an evening out that included dinner and a “Blue Man Group” experience!

The Southern Board of Directors and Committees of the association met to carry on the business of the organization.

We would like to extend a sincere debt of grati-tude to our sponsors for their part in making this meeting such a tremendous success.

SAWD 2012 61

Orlando Wrap-Up 2011

Altadis USAAltria Sales & DistributionAmerican Snuff Co.Associated DistributorsBurdette BeckmannCommonwealth BrandsCreative Data Research

Dot FoodThe Hershey CompanyJack Links Beef JerkyLorillard TobaccoMatrix BrokerageNational Tobacco Co.Nestlé USA

R.J. ReynoldsRepublic TobaccoSAWD Education FundSmokey Mountain SnuffSwedish MatchSwisher InternationalTantus Tobacco

2011 Annual Meeting Sponsors

62 SAWD 2012

The Southern’s Midyear Meeting of the Board of Directors was held at the Westin Key West Resort & Marina, in

beautiful Key West, Florida on Feb. 2–4, 2012.This meeting typically sets the direction of

the organization for the coming year, and this year was no exception. Thanks to this meeting, we feel that the 2012 SAWD Annual Meeting in New Orleans, May 29th thru June 1st will be the best yet!

All of the Southern’s committees met, including Finance & Budget, Education, Conventions & Meetings, Government Affairs, Industry Affairs, and the Executive Committee. A full report of committee activities will be made during the Annual Meeting in New Orleans, LA.

We would like to extend a sincere debt of

gratitude to all of the members of the Board who were in attendance at this meeting. The Westin Key West Resort & Marina was a wonderful venue to enjoy working, sharing, brainstorming and networking—managing to find time for some fun in that wonderful Key West weather!

We would certainly like to express our thanks to our sponsors for their part in making this meeting such a success!

2012 SAWD Midyear SponsorsPlatinum Sponsors

Altria Sales & DistributionAmerican Snuff

Commonwealth AltadisLorillard Tobacco

R. J. Reynolds Tobacco

Gold SponsorsCreative Date Research

Jack Link’s Beef JerkyLil’ Drug Store Products

National TobaccoNestle USA

Swedish MatchSwisher International

The Hershey Company

Silver SponsorsBurdette Beckmann

Dot FoodsMatrix BrokerageRepublic Tobacco

Midyear Board of Directors Meeting Westin Key West Resort & Marina

SAWD 2012 63

James F. “Bucky” Johnson, President

225 Summerland AvenueBatesburg-Leesville, SC 29006

P.O. Box 2499Batesburg-Leesville, SC 29070-2499

(803) 532-6341

1(800) 821-9744

Fax (803) 532-9552

www.JFJohnsonInc.com

64 SAWD 2012

Ashland Specialty Co.Wholesale Distributors

ServingKentucky, West Virginia and Ohio

withcandy, tobacco products,

groceries, paper goods andinstitutional items.

We Sell The Old Fashioned Way…We Show It!

Ashland Specialty Co.Wholesale Distributors

125 29th Street • Ashland, Kentucky 41101

Gobel Copley, Jr. Bud CopleyPresident Vice President

Ashland Specialty Co.

SAWD 2012 65

66 SAWD 2012

Thanks to the support of The SAWD Education Fund and Annual Silent Auction, The Southern has been able to provide college scholarships for Southern member employees and their families.

The Southern was pleased to announce at the 2011 Southern Showcase and Annual Meeting the winners of the 2011 SAWD College Scholarships. This year the appli-cants were asked to write an essay on the topic, “If you, as a member of the “Social Networking Generation” could influence its future, what would you change in sites like Facebook and Twitter and their usage?”

We had 41 applicants in 2011, all with creative and very interesting essays. Choosing just three was not an easy task for the SAWD Scholarship jury! The three $5000 scholarships were won by Katharine Zolot who

attends University of North Carolina Chapel Hill, whose father is Samuel Zolot with Lorillard Tobacco, Heather Flesher at the West Virginia U. School of Medicine, whose father is Jeff Flesher with Sledd Co., and Shauna Ruud from Northland College, whose father is Brian Ruud with Jack Link’s Beef Jerky. Daniel Muldrew who attends Mountwest Community and Technical College won the $2000 Technical School Scholarship. Daniel is also a Sledd Co. family member. We want to congratulate these schol-arship winners!

The Southern will be announcing the 2012 winners at the Southern meeting in New Orleans this May/June. Best of luck to all who applied writing an essay on the topic “Should Tobacco Be Legal?”

(Read Shauna’s winning essay on page 67.)

2011 SAWD College Scholarship Winners

Shauna Ruud accepted a $5000 SAWD College Scholarship. Shauna is seen here with her father, Brian Ruud, and Scott Hill with Jack Link’s Beef Jerky.

SAWD 2012 67

By Shauna Ruud

As our world becomes more connected, the use of social networking sites such as Twitter, MySpace, and Facebook has skyrocketed. Social network sites enable us to easily stay in touch with others, and share our interests. Social network users are able to share information with the entire world without even thinking of the potential conse-quences that could associated with a “post” or “tweet.” As a member of the “Social Networking Generation,” I believe that certain changes within the sites will help promote the future of social networking. Improvements to security, network-ing capabilities, and advertising structure will insure a successful social networking future.

Personal security is a major concern for users of all social net-work sites. Every user’s need for privacy is different, therefore social network sites need to continually improve and adapt security settings to meet user needs. More often than not, an overall update to a social networking site, joining groups within a network, or accept-ing friends will require a review of a user’s security settings. If an individual does not update their security settings after such an action, their personal information may be viewed by an entire group or everyone that is a network user. Another privacy concern that I have is the interaction between younger aged users when they are friends with older aged users. Older users do not always post the most appropriate material and for younger users to be exposed to that is not beneficial for them. Therefore an application is needed that a parent could add to a child’s page. An application that would allow for additional parental controls or blocking of a certain text would be an asset to any social networking site.

While security is important to maintain a user’s privacy; networking is a great element that social networking sites provide. Networking allows users to find entertainment, res-taurants, and attractions in any given area. It also allows users to network with other individuals within their profession. This gives them the ability to join forces in problem solving, best business practices, and employment opportunities. Additional search options on a user’s home page without the cumber-some advanced search would be a great improvement. At a

minimum, the addition of a drop down for country or state, or a text box to enter data within “X” miles of a certain location. These additional search options will limit the results to a practi-cal number. If there were options in the users private profile to enter their interests whether it be education, employment, profession, or hobbies this may also increase search capabili-ties if, “behind the scenes,” this criteria would be included

in any searches the user performs. Networking allows access to social and professional resources that assist and connect the user with family, friends, and opportunities that may not have been available within their local area.

With networking availability to the users, the site needs to be able to maintain profitability by providing advertisements spaces. Advertising is an important revenue source for the site and an important source of information to the appropriate users. A good example of this is for colleges to post advertisements for upcoming classes or seminars that are either popular with students or are in need of an enrollment increase. I believe

advertisements should be customizable to the user’s inter-est. Users would only receive pertinent advertisements, and companies would reach a more well defined target audience. For example, if a user does not like “Brand X,” they would be able to block ads from “Brand X.” In turn, “Brand X” would have more cost effective advertisements that reach a specific group instead of blanketing all users. The social network sites could track any browsing the user does to help determine the appro-priate advertisements to offer. In addition, with the increase in the use of mobile devices and applications, social networking sites could profit by incorporating their advertisements space within the mobile applications.

Continual improvement to security, networking capabili-ties, and advertising are the key factors that will facilitate the future of social networking. With the rise in social network-ing sites, users need to be able to customize their profile and advertisement preferences. Users will need to take ownership for the content they are sharing, and whom they are sharing it with. Social Networking sites need to insure accountability for misuse, and work to develop new applications and media. The future for social networking sites is limitless, and the only con-stant will be change. n

A “Tweet” about Future Social Networking

68 SAWD 2012

Allison Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 58

Altria . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inside Front Cover

American Snuff Company . . . . . . . . . . . . . Inside Back Cover

Andalusia Distributing Co . . . . . . . . . . . . . . . . . . . . . . . . . 65

Ashland Specialty Co . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 64

Atlantic Dominion Distributors . . . . . . . . . . . . . . . . . . . . 48

Bic Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Burdette Beckmann . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52

City Wholesale Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49

Commonwealth – Altadis . . . . . . . . . . . . . . . . . . . . . . . 3, 19

Corso, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30

Creative Data Research . . . . . . . . . . . . . . . . . . . . . . . . . . . 41

Douglas Companies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39

GSC Enterprises, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27

H .T . Hackney Co . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18

Hardec’s . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Hershey USA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31

Home Folks Wholesale Co . . . . . . . . . . . . . . . . . . . . . . . . 53

J . F . Johnson, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 63

J . T . Davenport . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Jack Links Beef Jerky . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43

King Maker Marketing . . . . . . . . . . . . . . . . . . . . . . . . . . . 17

Long Wholesale Distributors . . . . . . . . . . . . . . . . . . . . . . 24

Medina Foods / Goldrush Beef Jerky . . . . . . . . . . . . . . . . . 11

Merchant’s Grocery Company, Inc . . . . . . . . . . . . . . . . . . . 26

National Tobacco Company . . . . . . . . . . . . . . . . . . . . . . . 23

NATO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59

Nestlé . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

R . J . Reynolds Tobacco Company . . . . . . . . . . . . . . . . . . . . 9

Republic Tobacco . . . . . . . . . . . . . . . . . . . . . . . . Back Cover

Santa Fe National Tobacco . . . . . . . . . . . . . . . . . . . . . . . . . 37

Sledd Co . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29

Southco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47

Standard Distributing Co . . . . . . . . . . . . . . . . . . . . . . . . . . 51

Stephenson Wholesale . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25

Stewart Candy Company . . . . . . . . . . . . . . . . . . . . . . . . . . 45

Swedish Match . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33

Swisher International, Inc . . . . . . . . . . . . . . . . . . . . . . . . . . 15

U . S . Flue-Cured Tobacco Growers, Inc . . . . . . . . . . . . . . . 12

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Southern Showcase 2012

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Transcript of Southern Showcase 2012