This document provides a summary of news from the American Wholesale Marketers Association (AWMA) in their November 20, 2014 weekly newsletter. It includes the following: 1) The AWMA president explains the benefits of attending the upcoming AWMA Marketplace conference, including discounted registration and hotel rates. 2) AWMA representatives met with executives from The Hershey Company to discuss issues affecting the convenience distribution industry. 3) Recent sales data from InfoRhythm C-Metrics shows year-over-year increases in various product categories including candy, snacks, tobacco, and foodservice. 4) The document provides various additional member, regulatory, product, and industry news briefs.

1. November 20, 2014 VOLUME 4, ISSUE 45
IN THIS ISSUE:
Association News
Legal & Regulatory News
Member News
Industry News
QUICK LINKS
Meeting Information
AWMA News
Convenience Distribution
Join AWMA
AWMA Calendar
HOT PRODUCTS:
ASSOCIATION NEWS
Ramminger Explains Why YOU Need to Attend the AWMA Marketplace
AWMA has just completed a new video that all AWMA members need to watch —- and
hear why you need to be there!
• Distributors save on registration—$100 is all you pay for your entire staff.
• Distributors save on hotel—Stay at Paris Las Vegas and each attendee will
receive a $100 room credit off entire stay.
• Your registration gets it all—Registration includes everything the
Marketplace & Solutions Expo has to offer.
Schedule and Education Program are now updated (click here to view the education
program) REGISTER & BOOK YOUR HOTEL ROOM TODAY—CLICK HERE.

2. AWMA Meets with The Hershey Company
AWMA President & CEO Scott Ramminger, along with AWMA’s Bob Pignato, Meredith
Kimbrell and Joel Brown met with Hershey executives Tom Joyce and Brent Cotten at
The Hershey Global Customer Innovation Center in Hershey, PA, on Wednesday,
November 19. AWMA is excited to have the opportunity to visit members in their home
offices. We appreciate the time AWMA members take to travel for the association, and
we would like to pay it forward by visiting some of you to discuss the many issues
affecting the industry while reinforcing AWMA’s dedication to convenience distributors
today and tomorrow. Many thanks to Tom and Brent for taking time out of their busy
schedules to listen and offer invaluable feedback. Also, the staff appreciated the bag of
Hershey treats.
AWMA Weekly InfoMetrics Roundup
Source: InfoRhythm C-Metrics Data, 13 weeks ending 11/15/2014. For more
information, click here.
To read the current issue of InfoMetrics News, CLICK HERE.
Product Category % Dollar Change vs YAGO
Candy: Chocolate Bars, Gum, Bagged Candy, Non-
Chocolate Bars/Packs, Candy Rolls & Mints, Penny
Candy
+5.5%
Alternative Snacks: Meat Snacks, Health & Energy
Bars, Granola/Fruit Snacks
+11.8%
Salty Snacks: Potato Chips, Nuts/Seeds, Tortilla/Corn
Chips, Pretzels, Crackers
+8.0%
Foodservice +13.8%
Cigarettes -0.1%
Other Tobacco Products: Smokeless, Cigars, E-
Cigarettes, Pipe/Cigarette Tobacco, Papers
+8.4%
LEGAL & REGULATORY NEWS
Will GOP Senate Cool FDA Tobacco Regulations?
Having a Republican-controlled Congress may not lead to a winding back of Food and
Drug Administration (FDA) oversight over tobacco products, analysts and industry
observers say. But it could mean a push for fewer new regulations at a time when the
FDA continues to take its time in determining what to do with alternative tobacco
products, particularly snus and electronic and vapor cigarettes. Republicans
traditionally have favored less regulation on corporations, such as in the financial
services and oil and gas industries, which they say helps companies better compete
and create jobs in a global economy. A key telling point could come in January when
the FDA expects to receive a report from the Institutes of Health on tobacco products,
particularly on whether to raise the national age restriction for sales from 18 to
21.Winston-Salem Journal
FDA Research Finds Cigars as Harmful as Cigarettes
Cigar smokers have elevated levels of potentially cancer-causing ingredients in their

3. blood and urine, a study from the U.S. Food and Drug Administration (FDA) found.
The amount of NNAL, a carcinogen which comes only from tobacco, was as high in
daily cigar smokers as those who regularly smoke cigarettes, according to the report.
While cigar aficionados are supposed to puff rather than inhale, studies show they
breathe smoke particles into their lungs even when they think they aren’t inhaling.
“There is no safe level of cigar smoking,” said Jiping Chen, the lead author and an
epidemiologist in the FDA’s Center for Tobacco Products. Bloomberg
MEMBER NEWS
AWMA Welcomes New Member BriteVision Media
AWMA welcomes new member BriteVision Media, a maker of custom, stock and
generic paper cup sleeves. Cup sleeves provide a unique advertising vehicle steeped
in the American consumer's coffee habit. Ad Sleeve campaigns target consumers
where they shop—café’s, c-stores and QSRs. BriteVision Media values partnerships
with distributors and brokers and offer very attractive commissions and
margins. BriteVision
CN Smokeless Introduces Klondike Tubs
CN Smokeless Company, LLC, an affiliate of Cheyenne International, is rolling out
their Klondike Premium Moist Tobacco in 6-Pack Tubs. The company believes the 6-
pack tub will redefine what a tub should be by eliminating the time-consuming and
messy process of filling cans with loose tobacco. Klondike tubs are available in Long
Cut Wintergreen. CN Smokeless Company, LLC
General Mills Unveils 13 Holiday Products with Seasonal Flavors
General Mills is launching 13 limited-edition holiday items featuring seasonal flavors,
including maple bacon frosting and cookie mix, Sugar Cookie Toast Crunch and
holiday cookie crisp. The range also includes healthier options, such as gingerbread
and snickerdoodle Larabars, and gingerbread and peppermint fudge Fiber One
bars.American City Business Journals
Hershey Plans Memphis Facility Renovation
Hershey has plans to demolish and rebuild a building in its Memphis, TN,
manufacturing facility, which makes gum and mints. The candy giant applied for a
$329,000 permit to tear down one of the buildings and replace it with an 11,000-
square-foot building. No project values have been released. Memphis Business
Journal
Reynolds American Plans New Cigarette That Won’t Burn Tobacco
Reynolds American told investors it plans to launch a new cigarette that will heat but
not burn tobacco, eliminating combustion, which is the most harmful part of smoking.
The new cigarette, which will be called Revo, is a rebranded version of a product that
Reynolds launched two decades ago. That product flopped, but the company believes
Revo will appeal to smokers who don’t like e-cigarettes but would like an alternative to
traditional smoking. The cigarette comes with a carbon tip that, when lighted, heats the
tobacco rather than burning it, so that the cigarette releases a tobacco-flavored vapor
and not traditional cigarette smoke. Reynolds will introduce Revo in Wisconsin in
January and could expand it to other markets if it sees repeat purchases of the
product by consumers. MarketWatch
Swedish Match Sets Sights on U.S. Market
Swedish Match AB, maker of snus in Scandinavia, plans to begin a major push into
the category in the U.S. in the coming months. The company, which to date has only
dipped its toes into the small-but-growing segment of the U.S. smokeless-tobacco
industry, is unveiling two new versions of its General brand for American consumers
and sharply expanding retail distribution starting this month. Initial markets will be

4. Chicago, Dallas and Philadelphia, executives said in a recent interview. The effort
underscores tobacco makers' rising interest in expanding a product style that is
popular in Sweden and Norway but relatively new in North America. The Wall Street
Journal
Kellogg Looks to Stay On-Trend with Seven New Cereals
Kellogg will launch seven new cereals during the fourth quarter that aim to take
advantage of several consumer trends such as protein, gluten-free and organic. The
new products include two Special K brand formulas, Kashi Sprouted Grains Multi-
Grain, Raisin Bran with Cranberries, Froot Loops Bloopers and two new flavors of
Bear Naked Granola. GroceryHeadquarters.com
Mars' M&M's World Store Adds American Heritage Chocolate
The M&M's World store in New York City now features American Heritage Chocolate,
which is preservative-free dark chocolate made from colonial-era recipes, Mars
Chocolate North America said. The chocolate is 63% cacao and is flavored with
nutmeg, cinnamon, chili pepper, orange, anise and vanilla.CandyAndSnackToday.com
Mars, Callebaut Warn of Enormous Impending Cocoa Deficit
Mars and Barry Callebaut have issued warnings about impending chocolate
shortages, as demand surpasses supply on track to a 2 million metric-ton deficit in
2030. Shortages are due to dry weather and difficult growing conditions in the world's
largest cocoa-producing countries, as well as an insatiable appetite for chocolate in
both emerging and established markets, resulting in a 60% jump in prices since
2012. The Washington Post
Mars Launches Hot Chocolate Pouches with Candy Inclusions
Mars Chocolate Drinks and Treats recently debuted two new hot chocolate pouch
products that feature candy inclusions. The White Maltesers hot chocolate tastes like
the malt candies and contains white chocolate pieces, while the Chocolate M&M's
flavor has mini M&M's. The pouches can be mixed with hot milk or water and bring "a
sense of fun, innovation and strong brand presence to the category," says General
Manager Michelle Frost. FoodBev.com
Mondelez to Buy Stake in Vietnamese Snack Food Business
Mondelez International plans to pay $370 million for a majority stake in the snack
business of Vietnam's Kinh Do Corp. The acquisition would bring Kinh Do's various
mooncake and cracker brands into the Mondelez portfolio and allow Mondelez to grow
its distribution network in Vietnam. If approved by Kinh Do's shareholders, the deal is
expected to be complete by the second quarter of 2015. Bloomberg
Nestle to Open Bottled Water Facility in SC
Nestle has announced it will open a $40 million water bottling facility in the Pee Dee
area of South Carolina. The facility, set to open in early 2016, will bottle Nestle Pure
Life and Deer Park products. The company estimates that as many as 50 new jobs will
be created for residents of Chesterfield County. The Post and Courier
Nestle Focuses on Metabolism Research
Snacks or drinks that can replace exercise are still a long way off, but Nestle is
working to develop products that can act as metabolism triggers, allowing consumers
to get greater results from physical activity. The company's research team in
Switzerland has identified a compound that can stimulate an enzyme in the body that
is in charge of regulating metabolism. Bloomberg
INDUSTRY NEWS
Experts: Food Trends are Driven by Millennial Spending
Millennials are driving new trends in the food industry, embracing fresh, local and craft
foods, which is leading the industry to explore new ways to capture the market of
about 80 million, experts say. Trends, such as shifts toward healthier, minimally-
processed, natural and organic foods, are likely to "become incredibly powerful" as
millennials enter prime spending years, according to Wolfe Research Analyst Scott

5. Mushkin. Supermarket News
Cigarette Prices on the Rise Again
Cigarette prices are on the rise again, as manufacturers continue trying to bolster their
revenues despite declining smoking volumes. Lorillard Inc., Philip Morris USA and R.J.
Reynolds Tobacco Co. are leading the latest price hike – their first since May – by
increasing their list prices by 7 cents a pack. The list price is what wholesalers pay
manufacturers for their products. The increases typically are passed on to customers.
Analysts and advocates say price increases, however they come about, typically don't
affect smokers’ buying habits unless they are at least 10 cents a pack. Winston-Salem
Journal
Consumers Demand More from Resealable Packaging
Packaging company Presto Products launched two technologies to help meet the
changing needs of consumers. Its Child-Guard slider meets regulatory standards for
child safety and has potential for pharmaceutical and confectionery products. Presto's
new Click 'N Lock system makes a distinct sound when opening and closing so
consumers know when packages are closed, adding to perceived
freshness.ConfectioneryNews.com
Unique Crunchy Snack Foods Expected to be On-Trend In 2015
Crunchy snack foods like rice cakes, seaweed chips, lentil chips and roasted
chickpeas are projected to be popular in 2015, writes Karina Timmel. A stronger focus
on gluten-free alternatives, vitamins, protein and whole grains is expected to boost the
popularity of these new varieties throughout the coming year. Aberdeen American
News
Survey: Consumers are Worried about Personal Data
Eighty percent of consumers are worried about how their online information is being
used by advertisers, and 90% say they don't feel in control of their data, according to a
Pew survey. Still, more than half of those surveyed said they would be willing to trade
information about themselves for access to services. PCWorld
Have News for the Executive Update?
AWMA members, do you have news and press releases you would like to
share? Please send your news to AWMA's manager of electronic
communications Mary Arntson-Terrell at marya@awmanet.org or call her at (703)
208-3358 ext. 651.
Keep in Touch With AWMA Through Social
Media Sites
It is easier than ever to get industry and association
news. Simply like us on Facebook or follow us
onTwitter to make sure you are getting the latest news
in your preferred format.
AWMA EVENTS
AWMA's Event Schedule
Mark your calendar today!
American Wholesale Marketers Association | 2750 Prosperity Avenue | Suite 530 | Fairfax | VA | 22031