WALNUT CREEK, Calif. -- Funeral services were held here last month for Philip N. Kane, 87, co-founder and former president and chief executive officer, Rawson Drug & Sundry Co., San Leandro, Calif. Kane was one of the pioneers of nonfood products in supermarkets, and was noted for his leadership of Rawson and the service merchandising business, said industry observers. Rawson was a former nonfoods service organization that provided more than 2,000 chain and independent supermarkets and drug stores in the western United States with 20,000 stockkeeping units in health and beauty care, housewares, stationery and other categories. Among Kane's innovations at Rawson was the first tilted shelving racks for HBC products. McKesson Corp., San Francisco, acquired the company in 1984, and closed it in 1993. Kane retired in 1986 after 40 years of service.