Download cfa food·4·thought - Ctfood.org For Sale $15000

CFA FOOD·4·THOUGHT
Friday, January 19, 2007
195 Farmington Avenue, Suite 200 · Farmington, CT 06032 · 860 677 8097 · Fax 860 677 8418
The information presented here is not intended to take the place of legal or professional advice or to be relied on as such,
nor do they necessarily express the views of the CFA.
>> Dues-paying members: If you would like to receive this bulletin via email, please forward your email to [email protected].
LOOK FOR YOUR CFA HALL OF FAME DINNER INVITATION!
Invitations for the March 16 CFA Hall of Fame Dinner have gone out so get your tables together for the
honoring of 2007 inductees Kevin Armata (Windsor Marketing Group), Michelle Nye (Shaw’s
Supermarkets), and Grace Nome (CT Food Association). Sponsorship opportunities are available and we
are seeking door prizes and donations for our Silent Auction (all proceeds to benefit the CT Food
Foundation). Send in your reservations, or call the CFA for more information or another invitation.
VOLUNTARY MERCURY IN FISH POSTINGS PROGRAM IN THE WORKS
We are working on a collaborative effort with the Connecticut Department of Public Health (DPH) to
implement a voluntary fish sign posting program to stave off legislation. DPH test marketed a number of
signs and is putting final touches on a version that has been simplified and does not use scare tactics to
frighten consumers away from eating fish. It will be an 8.5” x 11” color sign that will be made available to
retailers; when completed, it will be downloadable from DPH’s website as well. Public sentiment appears to
be turning in favor of educational efforts: MorningNewsBeat.com reported in December about a Pittsburgh
Post-Gazette story chastising area supermarkets for not posting a government advisory in their seafood
departments. Oceana, a national ocean conservation organization, announced to the Post-Gazette, “This is
typical of most supermarkets around the country.” Watch for an upcoming letter and announcement in the
mail when the program is ready to be rolled out.
CSFA SEMINAR WITH BEAR NAKED® GRANOLA FOUNDERS
The CT Specialty Food Association, a division of the CT Food Association, is holding the first of a series of
seminars, featuring the founders of Bear Naked® Granola, who will discuss the story of their ups and downs
on their road to entrepreneurial success. The seminar will be held from 11 a.m.-2:00 p.m. on Tuesday,
February 6 at the Courtyard Marriott in Waterbury, CT; advance registration is required and lunch is
included. The cost to attend is $35 per person for members; $45 for non-members. If you would like to
attend, please contact the CFA office for a registration form. Deadline to register is January 31.
NATIONAL INDUSTRY GROUPS LAUNCH “MY PYRAMID” AWARENESS CAMPAIGN
The Food Institute reports the Grocery Manufacturers Association/Food Products Association (GMA/FPA),
the Food Marketing Institute (FMI), and MatchPoint Marketing have unveiled a new initiative to promote the
U.S. Department of Agriculture's (USDA) MyPyramid, the government's food guidance system, in grocery
store aisles, where consumers ultimately make their food choices. “Take a Peak” will provide easy-to-follow
advice through clear and simple in-store messaging that shows consumers how small, progressive changes
in their purchasing habits and diets can improve their health. "I am very pleased to see the food industry
taking up the challenge to help consumers make healthier choices," said Mike Johanns, USDA Secretary.
"We've had a tremendous response to MyPyramid and I'm confident that as awareness increases, so will
the health of Americans." Initially launched in 17 states and 2,000 retail locations, Take a Peak will reach
millions of consumers through point-of-purchase messages and materials including aisle banners, floor
graphics, informational kiosks, educational coupon booklets and other displays in grocery stores nationwide.
The number of retail locations is expected to grow throughout 2007. Retailers and wholesalers can obtain
more information on the program by calling 877-5PYRAMID or by visiting www.tapintomypyramid.com,
GMA at www.gmabrands.com, FMI at www.fmi.org, FPA at www.fpa-food.org, or MatchPoint at
www.matchpointmarketing.com.
FDA EXPANDS DEFINITION OF “LEAN” TO HANDHELD FOODS
Supermarket News reports the Food and Drug Administration (FDA) has finalized a rule that will let smaller
handheld foods add the term “lean” on their labels. Items like pizza slices, burritos, and egg rolls can be
classified as “lean,” provided they meet the FDA’s requirements: fewer than 8 grams of total fat, no more
than 3.5 milligrams of saturated fat, and fewer than 80 milligrams of salt per serving. FDA said it “believes
that portable food products, particularly those that are nutrient- and portion-controlled, serve a useful
purpose in assisting consumers in selecting a diet that is consistent with current dietary recommendations.”
Go to http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/E7-330.htm.
CA FREEZE SPELLS HIGHER PRODUCE PRICES
InsideBayArea.com reports consumers across the country are bracing for sharply higher fruit prices in
grocery stores as this month's arctic cold blasted a wide array of California citrus crops, as well as lettuce,
avocados, and strawberries. CA supplies 95% of the nation's fresh-market oranges and fresh-market
lemons, and 93% of the avocados grown in the U.S., farm officials said. Orange juice costs, which have
already increased because of past hurricane-related damage, were not likely to be affected since the vast
majority of that U.S. market is supplied by Florida groves. Governor Arnold Schwarzenegger has asked the
federal government for disaster aid, saying losses of CA's citrus crops to date totaled nearly $1 billion,
although other estimates have ranged from about $500-$700 million. "When all is said and done, this has
the potential to be worse than the 1998 freeze," said one CA grower. The December 1998 freeze wiped out
70-80% of the citrus not picked at that time. To fill the void, competing produce from markets such as South
Africa, Chile, North Africa, and Spain could start to appear in CA and elsewhere around the country.
USDA RULES UGLYRIPES CAN BE SHIPPED OUT OF FL
The New York Times reports the USDA has ruled in favor of Procacci Brothers in a 3-year battle over
shipping the UglyRipe tomato out of Florida. The FL Tomato Committee, which controls most of the $500
million industry in the state, had refused to allow UglyRipes to be shipped out of the state because of strict
rules on shape and uniformity of FL tomatoes shipped to other states from October-June. A 3-year
exemption granted to the UglyRipe by the committee expired in 2003 and was not reinstated. Procacci
Brothers petitioned the federal government last year for an amendment to the marketing order. Florida
governor Jeb Bush opposed the change on the grounds that it would give an unfair advantage to the grower
of UglyRipes. “Every grower has some percentage of its crops that is flat, elongated, ridged, etc., yet they
are still required to adhere to the minimum grade requirements,” the governor said in a letter to the USDA.
But the difference with UglyRipes is that their deviation from the norm is not accidental but the result of
breeding. The tomato committee, which guarantees the consistency of FL tomatoes, said the new ruling
could create a precedent that might allow inferior tomatoes to get to market.
PRODUCE COMPANY DONATES $2 MILLION TO E.COLI RESEARCH
The Associated Press reports Fresh Express, one of the nation's biggest processors of bagged lettuce,
announced a $2 million donation this week to pay for scientific research to improve produce safety and
prevent future E. coli outbreaks. Fresh Express products were not implicated in the recent E. coli scares,
but parent company Chiquita Brands International reported third-quarter losses of $96 million last year that
it attributed to consumer concern about eating leafy greens. Fresh Express said the money it was pledging
would allow a group of food safety experts from academia and government who have been meeting as
volunteers since last May to fund specific research projects through a competitive grant process. The group
will be chaired by Michael Osterholm, director of the Center for Infectious Disease Research and Policy,
University of Minnesota. Mr. Osterholm said in a statement hat the panel had identified 5 areas worthy of
more research, including how E. coli is absorbed by leafy greens and whether it survives in harvested fields.
NEW NICOTINE HAND GEL DEBUTS
Reuters reports a new hand gel is starting to appear on drug-store shelves, one that claims to satisfy users'
tobacco cravings for up to 4 hours. Walgreen Co. is now stocking its more than 5,500 stores with packets
of Nicogel, a quick-evaporating gel made with tobacco extracts. The company expects to finish the roll-out
within a couple of weeks. Nicogel can be used when smoking is inconvenient or in almost any other public
place. The product is the latest in a line of nicotine craving-kickers such as NicLite bottled nicotine water
and CigArrest chewable tablets, whose safety and effectiveness U.S. regulators have not confirmed.
NEW WAVE IN TEAM-BUILDING: COOKING?
MorningNewsBeat.com notes The New York Times recently had an article about how “cooking is the new
wave in corporate team-building exercises,” with a wide range of companies “sending their employees off to
chop, dice and sauté their way to better sales and management skills. They might spend a leisurely hour
assembling a meal together or split up and go cleaver to cleaver in a race against the clock. However it is
done, the cooking class approach to corporate team building has caught on.” The trend is proving to be a
real boon to cooking schools on both coasts: one company in San Francisco has tripled the number of chefs
it has on call and another in New York did 178 team-building events, a 24% increase over 2005. MNB
comments, “This would be a very smart thing for food retailers and manufacturers to do, not least because
while they’re in the food business, many of their employees don’t know anything about food and meals –
they’re simply not food people. An exercise like this could change all that.”
IRRADIATED FOOD GARNERS PRAISE AND CONCERN
The St. Louis Tribune reports less than 1% of meat and poultry in the U.S. and only a tiny fraction of
produce, mostly imported tropical fruit, is irradiated, but the recent outbreaks of E. coli infections linked to
spinach and lettuce have renewed calls to expand use of the germ-killing technology. One scientist, Dennis
Olson of Iowa State University, went a step further, stating if packaged spinach had been irradiated, "there
would not have been 199 cases of illness, 102 hospitalizations and 3 deaths" last fall. Opponents, who
question the safety and necessity of food irradiation, are bracing for a battle. "People jump right on any
outbreak to promote irradiation," said Patty Lovera, assistant director of consumer advocacy group Food
and Water Watch. "We think that would be an unfortunate result of the increased attention on food safety
problems." Irradiation uses electromagnetic waves to kill germs and parasites that may contaminate food,
and the food does not become radioactive as many people seem to think. NASA uses irradiation to sterilize
astronauts' meals and it is also widely used to decontaminate spices. But opponents say irradiation can
harm food by killing nutrients and, in some circumstances, generate cancer-causing chemicals. They also
argue there are other ways to protect the food supply, such as better sanitation and inspections. A number
of countries in Latin America, Asia, and elsewhere are building irradiation facilities, primarily to disinfect
produce so it can pass U.S. inspection, as irradiation kills fruit flies. "One of these days we may be in a
situation where certain produce imported from countries like Mexico, Thailand and India may be safer than
that which is produced here in the USA… [b]ecause it is irradiated," said Ronald Eustice, head of the
Minnesota Beef Council (MN became the first state to introduce irradiated beef in the U.S. in 2000).
U.S. MARKET STAGNANT FOR SANDWICH SPREADS
FoodNavigatorUSA.com notes a new report by Packaged Facts shows a lack of innovation and consumer
demand for healthier products has resulted in a stagnant U.S. market for once popular sandwich spreads
like ketchup, mustard, and mayonnaise. The report reveals the sandwich spread market remains stuck at
$3 billion and will continue a slow downward trend begun in 2004 through to 2010, when sales are expected
to sink to just under $2.9 billion. In 2005, mayonnaise dominated the market with a share of 59%, followed
by ketchup and mustard with shares of 25% and 16% respectively. According to the report, there have only
been 36 new product introductions in the category between 2005-06, most of which were launched by
smaller players in the market, resulting in little hope of driving substantial market growth. However, touting
the health benefits of some sandwich spreads specifically formulated to meet the needs of health-conscious
consumers, such as lycopene-rich ketchup and low-fat mayonnaise, have helped to stave off further market
decline. Similarly upscale, gourmet, and organic versions of the popular spreads have helped to renew
interest in the market as well. “The emergence of ‘healthier-for-you' spreads as well as ethnic-inspired and
alcohol-infused spreads should keep the market from declining too badly. But more innovation is necessary
to keep up with America's more sophisticated palates and desire for exciting and novel flavors,” said Don
Montuori, the publisher of Packaged Facts.
2007 SIAL MONTREAL FOOD AND BEVERAGE SHOW
Where in the World Will Your New Products Come From? SIAL Montreal invites food industry
representatives to attend this food and beverage show at the Palais des congrès de Montréal, March 28-30,
2007, featuring 750 exhibitors from 40 countries, including 8 regional pavilions and 22 national pavilions.
For information on the trade show and to register on-line, go to www.sialmontreal.com/usa.ch2.
TAKE RETAIL REPORT WITH GRAIN OF SALT
The Wall Street Journal cautions investors to take last week’s seemingly dismal holiday retail-sales report
with at least half a grain of salt. Economists surveyed by Dow Jones Newswires estimated December retail
sales were only 0.7% above November's level, which compares with a November gain of 1% (sales
excluding automobiles). November's sales jump had Wall Street scratching their heads; both individual
stores' sales figures and sales data culled from MasterCard transactions suggested it had been a weak
month. One reason the November retail-sales report was so strong may have been that Thanksgiving
came earlier than usual, pushing more holiday sales into November (but if they were pushed into
November, they were probably pulled from December). At the same time, gift-card use means that a
portion of holiday sales that used to be booked in December are getting booked in January instead. As the
cards get more popular, the government statisticians who try to adjust the sales figures for seasonal swings
are not keeping up. Even if December sales come in on the weak side, overall sales for the fourth quarter
will probably be on the strong side (the caveat: November sales figures could get revised sharply lower).
After two quarters where consumer spending growth was on the weak side, that is good news. At least part
of that pickup in spending is because of the drop in gasoline prices, according to one economist. And while
the housing downturn could still bite, it is possible that rising incomes will help fill in the gap.
CANADIAN PHARMACISTS CALL FOR BAN ON RX EXPORTS
RetailWire.com reports groups representing Canadian pharmacists have called for a ban that would end
exports of prescription medicines to the U.S. The group, which includes the Canadian Pharmacists
Association, the Ontario Pharmacists Association, the Best Medicines Coalition, and the Canadian
Association for Pharmacy Distribution, is concerned exports to the U.S. will leave Canadian pharmacies
without sufficient supplies for consumers there. Last year, consumers in the U.S. spent millions buying
prescription medicines from Canadian pharmacies (much of it online) because of lower prices. The current
Democrat-controlled Congress plans to push a number of initiatives to reduce the cost of prescription drugs
during this session, including legislation that would allow for the importation of medicines from Canada.
"Rather than deal with it from a domestic point of view, [U.S. lawmakers] are looking to our drug supply to
provide the answers," a spokesperson for the Canadian Pharmacists Association told Reuters. "That
obviously will have a negative impact on our drug supply." But a spokesperson for Canadian Health
Minister Tony Clement said the concern expressed by the groups is not warranted, saying, "At present there
is no threat to the Canadian drug supply. In fact, there has been a downward trend in overall sales of
pharmaceuticals to the U.S. We'll continue to monitor the situation and take action if necessary."
MERCHANTS STEER CONSUMERS IN BATTLE AGAINST FEES
Pity the poor consumer, cautioned The Wall Street Journal. With some merchants fighting back against
high fees by steering consumers to methods that cost retailers less in transaction fees, they may cause
consumers to lose rewards offered by banks. Of all the fees merchants pay to process plastic, those for
purchases made with a PIN are among the lowest, and fed-up retailers are taking matters into their own
hands by encouraging customers to pay using methods that carry low transaction fees, in particular PINbased debit cards. According to Visa USA Inc., a typical supermarket pays 24¢ in fees when a customer
buys $40 of groceries with a debit card and a PIN. The fee rises to 35¢ for a signature-debit transaction
and can be more than 50¢ when a customer uses a regular old credit card. One small business owner
estimated using PINs could cut his card-processing costs by a fourth. "It's the No. 1 thing that we can do on
our end to save quite a bit of money," he said. Some stores have set up their systems to ask for a PIN
rather than to sign. "Lots of merchants we are talking to are installing pin pads to cut costs," said the
general counsel for the National Retail Federation. But while steering may be a help to merchants, there is
a potential downside for consumers. Banks rarely offer debit-card rewards if shoppers use a PIN because
they in turn want to encourage customers to sign for purchases, which earns them a higher fee. While a
consolidated lawsuit accusing payment companies of price fixing, collusion, and conspiracy in the setting of
fees awaits its day in New York federal court, retailers in the meantime are targeting fees at checkout. "For
years, merchants didn't feel like they could do anything about it and now they have latched onto PIN
steering to lower their transaction-fee costs," said a California analyst. Currently, about 2 million merchant
locations have the technology in place to accept PIN-debit transactions, compared with about 6 million for
credit cards and debit cards requiring a signature, according to a recent study by Mercator Advisory Group
Inc., an industry consulting firm. Not surprisingly, banks and card companies are critical of merchant efforts
to steer consumers to PINs. "Unfortunately, consumers are put in the middle when merchants steer," said
Stacey Pinkerd, senior vice president for consumer debit products at Visa. "Some terminals are
programmed in such a way that it's difficult for consumers to choose their payment option."
FMLA AN INCREASING SOURCE OF LITIGATION
The National Law Journal reports the Family Medical Leave Act (FMLA) is becoming an increasing source
of workplace confusion and litigation. According to employment attorneys across the nation, a growing
number of workers are suing their employers, alleging they are not getting unpaid leave under the FMLA
when they should and that employers are retaliating against them for seeking the time off. For their part,
employers claim workers are abusing the FMLA, using it for purposes for which it was not intended, like
time off for a headache or the flu. A major point of confusion is whether stress-related illnesses rise to the
level of a "serious health condition" covered by the act. The heightened tensions, as well as confusion over
when and how the FMLA should be applied, has been noticed by the U.S. Department of Labor (DOL),
which launched a public inquiry in December, publishing a request for information and public comments to
find out what works and what does not with the 12-year-old federal law. In recent years, courts have
produced mixed results on FMLA matters, further confusing employers, employees, and DOL. Attorneys
representing employers said DOL’s inquiry is an opportunity for companies to finally air concerns about a
medical leave problem they claim has grown out of control. "Employers are so frustrated by employee
abuse of the FMLA leave," said one Philadelphia attorney. "For instance, with chronic conditions like a
migraine or stress, they're frustrated and looking for ways to come down on intermittent leave. Employers
are especially frustrated in the summer when stress and migraines come up on Fridays and Mondays."
Employee rights attorneys beg to differ. "Companies are trying to chill employees from taking FMLA leave,"
said an employee rights attorney in Chicago, who claims employers are forcing workers to go through
unnecessary hoops to get FMLA benefits, often demanding costly second and sometimes third opinions
from doctors when considering FMLA requests, or firing workers who take unpaid leave, claiming they were
ineligible for FMLA benefits. Workers are increasingly skipping the DOL route and filing private lawsuits
instead, claiming companies are putting up more of a fight when it comes to granting unpaid leave.
Everyone agrees, however, that clarity is needed by both sides as to what constitutes a "serious health
condition,” although applying any bright-line rule could prove difficult given medical advances.
MD HEALTH CARE RULING UPHELD
MorningNewsBeat.com reports the federal Fourth Circuit Court of Appeals has upheld a previous ruling that
struck down a Maryland law that would have required employers with more than 10,000 employees to pay
at least 8% of their payroll costs in health benefits or be fined by the state. Last July, a federal judge in MD
ruled the state’s Fair Share Health Care Fund Act was superseded by the federal Employee Retirement
Income Security Act (ERISA). "The act violates ERISA's fundamental purpose of permitting multi-state
employers to maintain nationwide health and welfare plans, providing uniform nationwide benefits and
permitting uniform national administration," the judge wrote in his opinion. Once that ruling came out, it was
appealed by the state’s Attorney General. The Retail Industry Leaders Association issued a statement
applauding the appeals court decision. “Today's Appeals Court decision makes clear that employer health
plans are governed by federal law, not a patchwork of state and local laws,” said RILA President Sandy
Kennedy. “The Court's decision sends a strong message that similar bills under consideration in other
states and municipalities also violate federal law.” There is no word yet on whether the MD Attorney
General plans to appeal the ruling to the U.S. Supreme Court.
TRAFFIC: BAD FOR COMMUTERS, GOOD FOR ADVERTISERS
MediaDailyNews.com reports a new study publicized by the Outdoor Advertising Association of America
(OAAA) seeks to put doubts about the efficacy of outdoor advertising to rest. Somewhat perversely, the
report celebrates the most annoying aspect of many Americans' daily routine: sitting in traffic. "Americans
are spending more time in their cars than ever before as commute times are significantly up, traffic is more
congested and the Baby Boomer generation mainly moves via auto," the report noted somewhat gleefully,
according to MDN. Even better, it went on, "congestion is getting worse in heavily populated areas and
smaller metro areas as well." The OAAA's data comes from a new study, "Commuting in America: The
Third National Report on Commuting Patterns and Trends," by Alan Pisarski of the Transportation Research
Board, part of the not-for-profit National Academies based in Washington, D.C. Collating and analyzing
data from a number of studies, Pisarski found that average daily commuting time grew from 21.7 minutes in
1980 to 22.4 minutes in 1990 and to 24.5 minutes in 2000. Although his data set only extends to 2004, it is
easy to imagine this trend continuing into 2007 and beyond. States that saw the largest increase in daily
commute times were Georgia and West Virginia, due to the massive growth of the Atlanta metropolitan area
in the former, and the extension of Washington, D.C.'s suburbs into the latter. Said the president and CEO
of OAAA, "This study points to several demographic trends which validate the value of the ability to reach
consumers outside the home." Coming on the heels of a record-breaking year for the out-of-home
category, the OAAA's opening volley in 2007 hints at the industry's hopes for another blockbuster. Judging
by the historical record, there's grounds for optimism: every year since 2001 has broken revenue records.
BUZZ LOG OFFERS SAMPLING OF DIET SEARCHES
Now that the New Year has begun, Yahoo’s Buzz Log reports Internet searches on “diets” are going strong,
up 61% over the previous week. But people do not want to work too hard; searches on “easy diets” are up
a whopping 300%! Now, from the BuzzLog’s Erik Gunther, the top 10 single ingredient diet searched over
the last week (type any of these into a search engine and you will receive pages of website entries):
1. Cabbage Soup Diet
2. Grapefruit Diet
3. Maple Syrup Diet
4. Apple Cider Vinegar Diet
5. Cayenne Pepper Diet
6. Special K Diet
7. Cabbage Diet
8. Rice Diet
9. Green Tea Diet
10. Cookie Diet
BuzzLog also notes if you are having trouble with the Hard-Boiled Egg Diet, a few more popular searches
on other diets may be just the ticket: Biblical Diet Foods; All Fruit Diet; Suzanne Somers Diet; Bruce Lee
Diet; Diet Gum; Banana Diet; Raw Food Diet; Cranberry Diet; Almond Diet; Watermelon Diet. Bon appetit!
NO SOCIAL TRANSGRESSION TOO TRIVIAL TO DOCUMENT ONLINE
The Wall Street Journal reports on a new phenomenon that is “weirding” some people out. No longer must
you be a celebrity or wayward politician to be outed online: blogger websites that document social
transgressions, such as talking on cellphones, bad parking, and littering, are proliferating. One site
documents locations where people have failed to pick up after their dogs; capturing newspaper-stealing
neighbors on video is another emerging trend. Helping drive the exposés are entrepreneurs who hope to
sell advertising and subscriptions. One site that lets people identify bad drivers is about to offer a $5
monthly service, for people to register their own plate numbers and receive notices if they are cited by other
drivers. But the traffic and commercial prospects for many of the sites are so limited that clearly there is
something else at work. The embrace of the Web to expose trivial transgressions represents a return to
shame as a check on social behavior, noted Henry Jenkins, director of the comparative media studies
program at the Massachusetts Institute of Technology. Some academics believe shame has become less
powerful as a control over everyday interactions, as people moved to big cities or impersonal suburbs
where they exist more anonymously.
For people singled out, the sites can represent an unsettling form of street justice with no due
process, as well as being rather creepy. Some have found their names, addresses, and cellphone numbers
listed online and have no idea how the information was obtained. Online shaming is also happening across
the world, with several well-publicized cases in China: last fall, one blogger posted photos and the license
plate number of a Beijing driver who got out of his car and threw aside the bicycle of a woman blocking his
way; the driver was quickly identified by Internet vigilantes and wound up apologizing on television for his
behavior. Some people feel posting a snarky message online is safer than confronting bad behavior face to
face. "You never know how people are going to react in person," said one, who posted a photo on Flickr of
a "cell phone bus yapper" who disrupted his morning commute, along with the caption, "Can't you use your
inside voice?" But the neighbor-as-Big-Brother approach is also being used offline. Spectators at
Cincinnati Bengals home games can call 513-381-JERK to complain about rowdy fans; when a call comes
in, security zooms in on the area with stadium cameras, confirms the problem, and dispatches security.
And now, a sampling of websites devoted to cataloging everyday misdeeds committed by average people,
courtesy of WSJ:
TRANSGRESSION
Loud talking on a
cellphone
SITES
Flickr.com; RudePeople.com
Bad or illegal
parking
MyBikelane.com;
Caughtya.org;
youparklikeana**hole.com
Bad driving
PlateWire.com;
AboveAverageDriver.com;
Irate-Driver.com;
BadDriving.com
Leaving dog
droppings
Flickr.com; YouTube.com
Leering, whistling
at women
HollaBackNYC.com and
other HollaBack sites
Littering
LitterButt.com
Yelling at children
Isawyournanny.blogspot.com
COMMENTS
Flickr abounds with pictures of people talking loudly
on cellphones or displaying bad phone etiquette.
Photos have titles and comments like "Talks Too
Loud," "Loud talker" and "Chatty McBlabsalot.”
Parking on the sidewalk, taking up 2 spaces,
cramping in another driver -- they're all there.
IParkLikeAnIdiot.com doesn't show many photos, but
says it sold about 30,000 bumper stickers displaying
the site address last year, up from 10,000 in 2005.
On these sites, users can report bad drivers and cite
license plate numbers. At least 8 PlateWire users
have chastised themselves online, including one in
Nevada last month who apologized for cutting
another driver off in a post titled "Telling on Myself."
One YouTube chronicle, "a nice doggy's bad owner
leaves a landmine on Dean Street in Brooklyn," has
been viewed nearly 1,300 times since April.
Women can post pictures and videos of men who leer
or make comments like, "Hey baby, wanna make
love??!!" HollaBackNYC.com launched in 2005,
inspired by one woman who photographed a lewd
man on the subway. Now, there are at least 14 other
local sites in the U.S. and Canada.
Site doesn't post license plate numbers of littering
drivers, but it does act: reported plateholders in
participating states (PA, TX, NC) get a notice -- the
site sends the details to the state, which then mails a
letter to the vehicle owner. For other states, the site
may send an email to the governor.
Five-month-old site has about 190 sightings so far,
and most relate tales of bad behavior. Two more sites
for nannies -- Isawyourmommy.blogspot.com and
Isawnannysemployer.blogspot.com -- have since
been launched in reaction.
DOOMSDAY CLOCK NUDGED CLOSER TO MIDNIGHT
The Associated Press reports a trans-Atlantic group of prominent scientists warned this week that the world
has nudged closer to a nuclear apocalypse and environmental disaster, pushing the hand of its symbolic
Doomsday Clock 2 minutes closer to midnight. It is the 4th time since the end of the Cold War that the
clock has ticked forward, this time from 11:53 to 11:55, amid fears over what the scientists describe as "a
second nuclear age" prompted by atomic standoffs with Iran and North Korea, as well as “dangers posed by
climate change… nearly as dire as those posed by nuclear weapons." The decision to move the clock is
made by the board of the Chicago-based Bulletin of the Atomic Scientists, founded in 1945. Since the clock
was set to 7 minutes to midnight in 1947, the hand has been moved 18 times, including this week’s move.
It came closest to midnight (just 2 minutes away) in 1953, following a hydrogen bomb test by the U.S., and
has been as far away as 17 minutes, set in 1991 following the demise of the Soviet Union. "As scientists,
we understand the dangers of nuclear weapons and their devastating effects, and we are learning how
human activities and technologies are affecting climate systems in ways that may forever change life on
Earth," said Stephen Hawking, the renowned cosmologist and mathematician. "As citizens of the world, we
have a duty to alert the public to the unnecessary risks that we live with every day, and to the perils we
foresee if governments and societies do not take action now to render nuclear weapons obsolete and to
prevent further climate change."
SMARTER RETIREMENT PLANNING
As many of us have parents approaching retirement or are ourselves reaching that milestone, The Wall
Street Journal cautions readers about some of the more common selling tactics salesmen use to pitch
sometimes unnecessary services to the unwary (see excerpts from the article at the end of the newsletter).
DONATE TO THE SILENT AUCTION!
We will be holding a Silent Auction once again at our Hall of Fame dinner and we need items!
Gift certificates for services, event tickets, unique and hard-to-find products… all would enhance
our auction, and donations are tax-deductible so everyone comes out a winner!
2007 VACATION SCHEDULES STILL AVAILABLE ON REQUEST
2007 vacation schedules are available to members upon request! They are 11” x 14” and can be used to
post/plan employee vacation times – call or email us with quantities desired.
FOOD STORE CERTIFICATE PROGRAM BROCHURES AVAILABLE
Brochures for the new Food Store Certificate Program at Manchester Community College are available.
The program curriculum includes Principles of Food Preparation, Food Store Systems, Relationship
Marketing, Hospitality Human Resource Management, and a Cooperative/Work Experience component.
The program is currently only offered at MCC but other community colleges in the state are looking at
incorporating it into their curricula. Call or email the CFA with the quantity you want.
_______________________________________________________________________________________
CFA UPCOMING:
JANUARY
 Specialty Food Division Product Tasting Competition · Mon. Jan. 22, 2007 · Aqua Turf Club, CT
 CFA Legislative Committee Meeting · Wed. Jan. 24, 2007, 8:30 AM · CFA Office, Farmington, CT
 CFA Executive Committee Meeting · Wed. Jan. 31, 2007, 8:30AM · CFA Office, Farmington, CT
FEBRUARY
 Specialty Food Division Seminar · Tues. Feb. 6, 2007, 11AM-2PM · Courtyard Marriott, Waterbury, CT
 CFA Events Committee Meeting · Wed. Feb. 7, 2007, 1 PM · CFA Office, Farmington, CT
 CFA Board of Directors Meeting · Wed. Feb. 21, 2007, 8:30 AM · Coca-Cola, East Hartford, CT
 CFA Membership Committee Meeting · Wed. Feb. 21, 2007, 10:00 AM · Coca-Cola, East Hartford, CT
MARCH
 CFA Hall of Fame Dinner & Silent Auction · Fri. Mar. 16, 2007 · Aqua Turf Club, Plantsville, CT
Smart Retirement Shopping
By Jeff Opdyke, The Wall Street Journal • January 13, 2007; Page B1
A host of ill-suited financial products -- from reverse mortgages, to life-settlement contracts and variable
annuities -- are being targeted at retirees with pitches designed to tap into deep-seated fears about the
affordability of retirement. Regulators say the size of the problem is impossible to quantify. Still, it has
reached such a magnitude that the National Association of Securities Dealers (NASD), a self-regulatory
agency for the financial industry, this year will launch a campaign to teach people how to see through the
selling techniques used by pitchmen to pry open their wallets.
Some products are perennial favorites among unscrupulous salespeople: complex variable
annuities, top-heavy life-insurance policies, and living trusts. Others reflect efforts among agents, brokers
and planners to benefit from increased interest in relatively new creations such as long-term-care insurance,
reverse mortgages, life settlements and even Medicare Part D prescription coverage. In many cases, these
products have legitimate uses. But used improperly they can also leave elderly savers poorer or unable to
get at their money in an emergency without paying hefty penalties.
Here's a guide to some of the trickiest products… along with advice on protecting against trouble.
Life Settlements
Regulators have begun scrutinizing the industry because of concerns about the way these products are
sold. The NASD is set to soon publish an investor alert to warn consumers about [their] dangers.
The Product: A financial transaction in which you sell your life-insurance policy for more than the policy's
cash value, but less than its face value.
The Hard Sell: Turn your insurance policy into cash while you're still alive to enjoy it. Use the windfall to
pay for everything from long-term-care insurance to a blowout vacation.
The Pros: For people who no longer need insurance but who do need cash, selling an unwanted policy can
generate more money than cashing in a policy. The strategy can be particularly appealing with term-life
policies, which have no cash value and which policyholders would otherwise let lapse.
The Cons: If you continue to need insurance coverage, selling an existing policy isn't wise. Rates to
replace your coverage could be unaffordable, or you could be uninsurable. Also, you're spending down
money your heirs may need… and while insurance benefits paid to heirs are generally income-tax-free, the
profits from selling a contract are taxable at ordinary income rates, which are generally the highest rates.
The Fix: None. Once you sell your policy, you can't get it back.
Reverse Mortgages
The Product: A mortgage letting older homeowners tap into their home's value without selling the house or
having to make home-equity-loan payments.
The Hard Sell: Unlock the cash to improve your standard of living, to pay for long-term-care insurance, or
to invest in annuities and life insurance.
The Pros: For seniors with pressing financial needs who are cash-poor but house-rich, a reverse mortgage
"can be a beneficial way to get the basic income you need to stay in your home" or to pay for necessary
expenses, says Sally Hurme, senior program manager with AARP Financial Security.
The Cons: Reverse mortgages are costlier than traditional ones. Moreover, because reverse mortgages
are repaid only when a house is sold or the borrower dies, heirs may be forced to sell the house before they
want to or find other assets to unload, possibly raising other tax issues. In the most egregious cases,
sellers persuade homeowners to take out reverse mortgages to fund other investments such as annuities.
The flaw with that strategy: the investment returns generally aren't large enough to cover the cost of the
mortgage and interest payments.
The Fix: You have the right to cancel the mortgage within 3 days. But past that "there's not much you can do."
Variable and Indexed Annuities
The Product: An insurance contract wrapped around mutual-fund-like subaccounts.
The Hard Sell: Variable annuities provide tax-advantaged savings and help heirs avoid probate. Equityindexed annuities offer stock-market gains while protecting against losses.
The Pros: Aside from Social Security and a pension, annuities are about the only source of guaranteed lifetime
income. For seniors, however, the best ones are usually immediate annuities, which begin to pay out within
1 year of purchase. Variable annuities can be useful for people still in the work force who are planning to retire
in 10-15 years, and who have already maxed out their annual contribution to 401(k) plans and IRAs.
The Cons: Regulators continually warn that variable and indexed annuities are ill-suited for retirees
[because] these products generally require a holding period at least a decade long. Getting your money
early imposes surrender charges that can exceed 10% of the annuity's value and last 7-10 years or more.
Equity-indexed annuities have their own kinks. Most limit potential gains from the stock market. If stocks
roar ahead one year by 20%, for instance, you might only get 8% of that return in your annuity, depending
upon the contract. While annuities do grow tax-deferred, the profits are taxed at ordinary rates at
withdrawal. By comparison, profits on stocks and mutual funds in a standard brokerage account are taxed
at lower capital-gains rates. Moreover, at your death the value of your ordinary stocks and funds is stepped
up to current market value, meaning heirs avoid taxes on earlier profits. Annuities receive no step-up.
The Fix: Depending on the state you live in, consumers generally have at least 10 days to cancel an
annuity contract. Conversely, you can contact state securities and insurance regulators (as well as the firm
that sold the contract) and request they examine the suitability of the sale. Be sure to include some proof
that the contract wasn't suitable for this particular situation. Another way out: Annuities generally let you
withdraw 10% of the contract value each year without penalty. Do that each year until you reach a point
where the surrender charge is less onerous and you can withdraw the rest of the account completely.
Life Insurance
The Product: Whole-life, universal-life and variable-life insurance contracts that combine a death benefit
with a savings/investment component.
The Hard Sell: Your estate will be consumed by estate taxes. Investing your money in a life-insurance
policy helps you avoid that, since death benefits pass tax-free to heirs.
The Pros: Not much with variable life, because the death benefit and cash value fluctuate with underlying
investment performance, and that's a lot of risk for retirees. Universal and whole life can be useful in narrow
circumstances. For instance, retirees who can't spend as much cash as their portfolio kicks off might
consider moving assets into a whole-life policy as a way to ultimately transfer assets to heirs tax-efficiently.
In this case, you're not buying insurance for the sake of insurance, you're taking advantage of the policy's
tax characteristics.
The Cons: First, “there is no estate-tax advantage to life insurance," says Glenn Daily, a New York City
insurance consultant. While life-insurance beneficiaries don't pay income tax, the sum is still subject to
estate taxes. Second, these sorts of insurance policies are frequently sold based on overoptimistic
projections of future account values. Then there are surrender charges [which can be in place 10, 15 years
or longer]. Many policyholders see on their statements that they have an account value of, say, $75,000.
But cancel your contract and try to recoup the money and you might find you get substantially less.
The Fix: Don't just drop your policy. Check with your insurer to see if you have a reduced, paid-up death
benefit available, as the cash value of your contract may be enough to fully pay for reduced coverage
without imposing any future premiums. You can also cash in your policy for the cash value. But, as with
annuities, you may face a surrender charge that eats away all or some of that value. If you're certain you
don't need or want the insurance policy, you might try the life-settlement market, where you can sell your
policy to recoup at least some of its value.
Living Trusts
The Product: A legal entity into which a person transfers certain property, with instructions on how the
property is to be distributed upon that person's death.
The Hard Sell: Probate is a nightmare. A living trust will help your heirs skip probate proceedings.
The Pros: These trusts do indeed let you pass assets to heirs while avoiding probate.
The Cons: Many consumers' estates are too small to warrant probate (amounts vary from state to state).
Many of the sellers of living trusts aren't lawyers and aren't offering individualized advice about whether a
particular person even needs a trust. The trusts are boilerplate documents and may not meet your specific
needs. The sellers are simply after the fee to create the trust, often $1,500 or more, and frequently use the
sale as a way to learn about other assets a senior has that can potentially be exploited. The Washington
state attorney general's office is asking the state legislature to approve a new consumer-protection law that
makes it illegal for anyone other than a lawyer to sell living trusts.
The Fix: If you have a living trust bought through a seminar or someone who isn't a lawyer, check with a
reputable attorney to see if the document accomplishes what you need it to. These trusts can be changed,
if necessary. If you're being pitched one, know that there are other strategies to avoid probate. In many
states, a competently written will can help you avoid probate, too.