Nov 102015
 

RDD Associates is pleased to announce that Ken Wallace has joined our organization as Regional Business Manager for Churny, managing New England, New York Metro, Virginia through Pennsylvania, and upstate New York areas. Ken has 36 years of experience working for Kraft Heinz Foods. The last position he held was Easter Division Sales VP – Churny Division, managing a network of food brokers throughout the Eastern marketplace and was responsible for the key accounts including, Kroger Corporate-deli, Ahold, Delhaize, Publix, Harris Teeter and Giant Eagle. Within the division he managed many specialty food portfolios that included Athenos, DiGiorno, Hoffman and Pollio specialty cheese products.

Ken has two children with his wife Melissa.

Please join us in welcoming Ken to our team.

Ken Wallace Headshot

Nov 092015
 

October 26, 2015

Dear Valued Client Partner,

As a follow-up to my correspondence of July 31st, I’d like to update you regarding the liquidation of A&P, the anticipated redistribution of sales revenues and market share across the Metro New York marketplace, and how the RDD service model is evolving to these changes.

Although the A&P family of banners, to include A&P, Pathmark, Waldbaums, The Food Emporium, SuperFresh and Food Basics, has experienced significant sales erosion for several years, it still accounted for approximately $5.8 B sales revenues in 2014, representing over 7% of total grocery store sales in the Metro New York/Mid-Atlantic region. With most of the store divestitures and auction sales now approved by the bankruptcy court with re-bannering activities scheduled and initiated, and the remaining stores liquidating inventories and scheduled for closure within weeks, we now have a clearer picture of what the marketplace will look like in early 2016. For your reference, I’ve attached a one-page document that captures the essence of the liquidation, and here are the major headlines:

  • ACME, a division of the new Albertson’s, will again become a significant factor in Metro New York grocery, with 72 locations, $2.2 B in sales and a 6.5% Metro NY market share
  • Stop & Shop – New York, a division of Ahold USA, will add 25 locations, increasing their store count to 210, $7.7 B in sales, and a 23% market share
  • Key Food Cooperative will add 23 locations, increasing their store count to 207, with estimated sales of $2.3 B and a 7% market share. For the first time the co-op will own and operate stores (2) as corporate units
  • Wakefern Food Corporation will add 16 stores to their service roster, including 13 in the ShopRite family and 3 as wholesale customers
  • Allegiance Retail Services, the member cooperative managing Foodtown, will add 6 new locations from A&P, and reportedly their member/owners will be opening an additional 4 new supermarkets, resulting in estimated sales in 2016 of $1.3 B and a 4% market share
  • C&S Grocers will experience a significant decline in Metro New York business, down approximately 75%. In addition to the units going to Stop & Shop and Key Food, approximately 10 stores will be re-bannered as independents and will continue to be supplied by C&S
  • It now appears that over 100 former A&P stores will cease to operate as grocery stores, and will either become alternative channel retailers or exit retailing completely. These stores accounted for approximately 25% of A&P’s sales, and this business will “leak” into existing grocery retailers of alternative channels

RDD is currently assisting all of the growing chains with store re-bannering activities, to include shelf management and reset facilitation. It appears that the majority of divested stores will complete transitioning over the next 6-8 weeks.

RDD has adjusted our go-to-market strategy by redeploying personnel resources, relative to both retail (in-store) and headquarters coverages, to insure that we maintain appropriate merchandising service levels and capitalize on every business-building opportunity to build sales volumes at the expanding chains.

The supermarket industry merger and acquisition activities continue to be very active, so it is critically important that RDD continues to expand our regional capabilities to serve client-principals with the “perishables-exclusive” service portfolio that provides competitive sales and merchandising advantage. As you are aware, Ahold and Delhaize have announced an agreement to merge their companies, creating the 3rd ranking supermarket company in the U.S. with over 2,100 stores and $49 B in sales. For your awareness, they have yet to share with trading partners their operational roadmap for the merged company, however a transition committee has been named and we anticipate communications will begin before the end of the calendar year.  Meanwhile, RDD continues to proactively engage in discussions with several perishables-focused, southeast U.S.-based sales agencies, to provide network retail coverage for the new Ahold Delhaize if appropriate.

Finally, RDD continues to collaborate with our regional sales agency alliance partners, STAR/Pro-Star and MATRIX, to operationalize RSM – Regional Sales Solutions.  Expanding upon our successful Ahold vertical service solution platform, RSM provides clients the opportunity for seamless regional sales agency coverage at Ahold USA (Stop & Shop’s and Giant’s), the new Albertsons (ACME, Safeway and Shaw’s), Wakefern (ShopRite and Price Rite), C&S Wholesale Grocers and Bozzuto’s Inc., with continued traditional penetration of all local market area chains and independents.  I encourage you to schedule a visit with the RDD leadership team to learn more about our unique service solution.

The RDD leadership team remains fully engaged and totally committed to sustain our leadership position by delivering client and customer trading-partners value-added solutions that address industry challenges and capitalize on marketplace growth opportunities. We will continue to closely monitor industry dynamics, and will keep you apprised of any further changes.  We have the talent, tools, traditions, aspirations, energy and the adaptability to succeed on your behalf!

Thank you again for your continued support, encouragement and trading-relationships.

Best regards,

Bob Cignarella

 

A and P liquidation Nov 2015

 

Oct 282015
 

July 31, 2015

 

Dear Valued Client Partner,

As you are aware, on July 19th A&P filed for Chapter 11 bankruptcy protection… their second filing in five years, likely beginning the process of total dissolution of the supermarket chain.  Although this comes as little surprise to industry professionals who have observed first-hand the unrelenting deterioration of the A&P and Pathmark shopper franchises and receding sales revenue base, it’s still upsetting considering the negative ramifications impacting employees, supplier-partners, customers and communities.

Immediately on the heels of the filing, A&P announced agreements to divest a significant number of stores and planned store closures, to include:

  • 76 stores sold to Acme Markets, the eastern Pennsylvania-based division of Albertsons Companies
  • 25 stores sold to Ahold USA, for re-branding to Stop & Shop Supermarkets Co.
  • 19 stores sold to Key Food Stores Cooperative
  • 25 stores to cease operations in the near future
  • Approximately 140 stores to continue operating as part of A&P, pending possible future divesture or closure

We anticipate that the store closures will begin in September, and the bankruptcy proceedings to review and rule on divestitures will continue for the balance of the calendar year. A&P has secured debtor-in-possession financing to provide adequate liquidity to continue store operations during the transition period.

Should the A&P store divestitures proceed as planned, Acme will again become a significant player in Metro New York grocery, with approximately 85 locations spread across the marketplace, $2B in sales and a 6% market share. An additional 25 Stop & Shops in Metro New York will increase their store count to 216, add $600 M in revenues and an additional 1% market share to approximately 13% ACV.   The addition of 19 Key Food stores will continue to fuel their recent growth, with store count now eclipsing 200, over $2B in retail sales, market share of New York City over 11% and significant new penetration on Long Island with 20 stores.  Finally, although Wakefern Food Corporation hasn’t been mentioned in any official communications to date regarding store purchases, we anticipate that they will be an active bidder for select properties moving forward.

Be advised, the entire RDD team, from leadership through to retail services, is monitoring the A&P situation daily, and we will expeditiously share with you all relevant information and our insights.  As far as we can tell, currently all stores (approximately 290) continue to operate normally, albeit under a dark cloud of uncertainty and concern.  Given that multiple stakeholders are involved in the process, we anticipate a stream of communiques will flow for the next several months.

Although adapting to major changes and disruptions in the marketplace are never easy, RDD is fully prepared to adjust our go-to-market strategy and resource deployment to progressively react as the A&P situation continues to unfold.  Over the last two years, we have experienced more dramatic changes in the Metro New York marketplace, relative to retail store re-bannering and wholesale supply arrangements, than we have in the proceeding decade. During this period, RDD has redeployed retail merchandising and headquarter sales associates to reflect shifts in store counts and procurement practices, and has significantly increased our headquarter penetration at C&S Grocers and Bozzuto’s, with both wholesalers’ businesses growing as a result of White Rose closing.

Last year I shared with you the exciting news that RDD had expanded our regional service footprint by fielding a comprehensive and integrated Ahold Service Solution.  By formalizing a collaborative arrangement with our New Freedom, PA-based sales agency partner STAR/Pro-Star Sales & Marketing, and Cumberland, RI-based MATRIX Sales & Marketing, Inc., RDD has orchestrated an operating alliance with the partners pooling retail merchandising resources to field a vertical, Ahold-directed retail merchandising team with 65 “perishables-exclusive” representatives and a shared reporting platform.  RDD can now support client manufacturer brands across the entire Metro New York, Mid-Atlantic and New England region, and several leading clients have appointed RDD to service them with a seamless Ahold solution.  As you are likely aware, last month Ahold and Delhaize announced that they have agreed to merge their global businesses, creating a supermarket company blanketing the eastern U.S. with approximately 2,000 stores and $44 B in sales. Although they haven’t shared with trading partners their merged operational roadmap, RDD is in active discussions with a number of perishables-focused, southeast U.S.-based sales agencies to provide network retail coverage for Ahold Delhaize if appropriate.

With supermarket industry merger and acquisition activities heating up, it is critically important that RDD continues to expand our regional capabilities to serve client-principals with the “perishables-exclusive” service portfolio that provides competitive sales and merchandising advantage. Working in collaboration with our alliance partners STAR/Pro-Star and MATRIX, RDD is now introducing RSM – Regional Sales Solutions. Building from our successful Ahold Service Solution platform, RSM provides clients the opportunity for seamless regional sales agency coverage at Ahold (Stop & Shop and Giant), Albertsons (ACME, Safeway and Shaw’s), Wakefern (ShopRite and Price Rite), C&S Wholesale Grocers and Bozzuto’s Inc., with continued deep and impactful penetration of local market chains and independents.  In the coming months you will be hearing more about RSM, and I encourage you to schedule a visit so that we can share our vision and unique service solution.

Industry leadership takes years to achieve, constant reinvestment and a genuine willingness to adapt to changing environments. The RDD leadership team remains fully engaged and totally committed to sustain our leadership position by delivering client and customer trading partners innovative solutions that address industry challenges and capitalize on marketplace opportunities. We have the talent, tools, traditions, aspirations and energy to succeed!

Thank you again for your continued support and business.

Best Regards,

Bob Cignarella

May 222015
 

Red Nose Day2

Red Nose Day helps children living in poverty by raising money in a fun and laughable way. Red Nose Day is all about a positive change.

To learn more about Red Nose Day and the charities it benefits visit: www.rednoseday.org

 

 

 

Mar 122015
 

Recently here at RDD we celebrated some of our ethnic lines of food, having what we called a “Mexican Fiesta!”. ”

Joe Cervantes organized our festive event by showcasing some of our lines and serving delicious choices of food!

Thank you Joe!

joe circle

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Oct 172014
 

RDD Associates is proud to announce that on Thursday, October 16th the RDD Learning Academy conducted its first class! Over the course the next 6 months associates at RDD will have the opportunity to attend over forty classes. Each class is carefully designed by experts within the company to share their knowledge and expertise in the business.

With the success of the first course we are looking forward to a bright future at RDD!

IMG_1153

 

Jun 132014
 

Wakefern Food Corp held their International Cheese Show at the New Jersey Convention and Exposition Center in Edison, NJ on June 4th and 5th. This is a selling show that spotlights holiday items that are available in the fourth quarter. RDD was well represented at the show by Belgioioso, Cabot, Churny, Fiorucci, Lactalis, Vintage Italia and Brownie Brittle. The show was a huge success with more orders and more members attending than the previous year. Kathy Bain did a wonderful job coordinating the event and was helped by our retail supervisors and sales reps. In attendance were Karen Valentine, Barb Scullion, Natalie Jacobs Rose Burns, Neil Weinstein and Michael Valentine. Thanks to all for their hard work and selling efforts!!

 

President Booth Picture

Apr 072014
 

RDD Associates is proud to announce four staff promotions effective April 1st, 2014

Jerilyn Atkinson has been promoted to Account Manager in our Deli Division.  Primary among her responsibilities will be the growth and coordination of our expanding deli business at Wakefern. Jerilyn joined RDD in 1999 as Retail Supervisor when Sorrento appointed RDD as their NY Metro Broker. As our business expanded with our appointment by HP Hood in 2004, Jerilyn was promoted to Retail Development Manager responsible for the training and development of our retail sales force as well as the coordination of the Retail and Wholesale sales efforts. Jerilyn will report to Bob Carley, VP Deli/Bakery/Seafood.

Donna McNerney has been promoted to Retail Sales Development Coordinator. Among Donna’s responsibilities will be the coordination of Retail and Wholesale sales initiatives in our Dairy and Frozen Divisions. Joining RDD in January 1999 as Retail Supervisor, Donna has worked tirelessly to train, develop, and motivate her team to drive the retail sales effort. Donna will report to Jim Nebgen, VP Dairy and Bob Bollbach, VP Frozen.

Barbara Scullion has been promoted to Retail Supervisor. Barbara joined RDD in 2001 as an on-site inventory analyst at Pathmark. Barbara moved to retail in 2003. Recognized for her strong sales results and enthusiastic work ethic Barbara was promoted to Senior Retail Sales Representative in 2010. Barbara will report to Art Sacher, Director of Retail.

Debbie Saft has been promoted to Retail Sales Representative.  Deb will be selling and merchandising throughout her assigned territory. Deb started with RDD in 2010 as a part-time Hood Representative.  In February 2013 her hard work, energy and perseverance were recognized, enabling her to transition into a full-time position representing Hood.  She will be reporting to Barbara Scullion.

Apr 072014
 

RDD Associates is happy to announce is has been awarded the Broker of the Year Award for 2013 from BelGioioso Cheese Inc.  The award is given for outstanding performance in exceeding the BelGioioso sales plan for 2013.

Congratulations to Robert Carley and the rest of RDD deli department staff for their outstanding efforts!

belgioiogo award 2