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PROGRAMS UNDER WAY

SN: What are some of the consumer-oriented programs you've been working on? McEWAN: We do targeted activities in which we try to meet the needs of particular groups of people in various communities. For example, we worked with local hospitals in New Hampshire to distribute a brochure detailing schedules for child immunization programs, which tied in with our goal of reaching different markets through

SN: What are some of the consumer-oriented programs you've been working on? McEWAN: We do targeted activities in which we try to meet the needs of particular groups of people in various communities. For example, we worked with local hospitals in New Hampshire to distribute a brochure detailing schedules for child immunization programs, which tied in with our goal of reaching different markets through a variety of vehicles. We've also offered a project in conjunction with the Massachusetts Department of Public Health in which we donated fruits and vegetables to local elementary schools as part of an effort to publicize the 5 a Day for Better Health program among second-graders. GERLAND: Much of what we do is health-related, including serving as liaison with independent nutritionists who conduct blood-pressure testing and immunization clinics in the stores. We have small-scale tours available on request, which are conducted by an outside registered dietitian because we carry such a wide variety of ethnic food and very diversified produce lines that a lot of people are interested in learning what to do with those products. And we offer nutritional tours. We also have a Hispanic dietitian who goes into the community speaking about nutrition to inner-city groups, with a special emphasis on ways to incorporate healthier cooking into the traditional Hispanic diet. That's been received in a very positive way because it's an example of how much Hispanic consumers desire to learn and do a good job for their families. And when the city of Houston held a series of countywide demonstrations in supermarkets built around the 5 a Day program in March, Fiesta was a participant. A new program at Fiesta, offered in conjunction with the Texas Department of Agriculture, is Project Teach, a school curriculum that instructs students about nutrition and what products are grown in Texas. We plan to have our Hispanic nutritionist go to the schools and speak to the children about Fiesta and nutrition, incorporating all the health and community-oriented programs we offer. NOWAK: One of the programs we offer consumers is Health Counts, which consists of nutritional clinics, cancer screening, cholesterol screening and other topics once a month, 12 months a year, conducted in our stores by representatives from area hospitals. The program -- featuring a different focus every month -- is offered at 15 stores on a rotating basis, up from two stores a month during the past four years. Food Town also offers a series of store tours that focus on nutrition, while another group of tours -- conducted by local hospital personnel -- is geared to consumers with special dietary needs, such as diabetics or heart patients, to help them identify what items in the stores meet their specific needs. Food Town also has a one-hour weekly radio program called Town Talk, which discusses in-store programs and local civic events, as well as giving community groups a forum to publicize their activities. The radio program has definitely made customers more knowledgeable about shopping. HOSEY: We listen through surveys, usually for specific things. However, we are initiating a more consistent, proactive approach to consumer surveys, mainly by going out to the people instead of listening only to what comes in. We plan two to three focus groups a year in new-store areas -- to set up lines of communications before we open a store, which enables us to respond to the needs of the community and establish communications that we can use down the line. We expect this proactive approach will help us stay on top of things and make sure we do things right the first time if and when a problem arises. MATHEWS: One of the programs we developed is Healthy Start, which is targeted at children 2 to 6. We distribute a monthly flier in the stores focusing on a different health issue or product category, which is designed to get into the hands of youngsters. As part of an effort to encourage the kids to try new products, we include an activity, and when they complete it and their parents come back to the store, the parents receive a coupon for a specific item. It has been one of our most popular programs, and we've extended it for a second year. Teachers and parents tell us it's something that kids can do and get a benefit from. OMERNICK; In the last year we've put together a formal mission statement for the company, which says we will create a uniquely satisfying shopper experience with products and services that exceed customer expectations. Part of that mission is to operate more consumer focus groups. Too often we can't see the forest for the trees, but customers can really tell us what improvements we need to make. For example, on shelf tags, the industry has for a long time lagged behind making the tags user-friendly. But at our customers' suggestion, we've developed a uniform tag that features the price in large numbers and more consistent, accurate unit-price information. Because of customer suggestions, we're also developing more healthy, seven-grain crusty breads for our bakeries. Customers are constantly asking for that kind of product, and we're developing that line because customers want it. CROWLEY: One of the programs we've offered over the past three years is called Aisles of Nutrition, in which we identify products that are low in fat, low in sodium, low in calories and low in cholesterol, using shelf tags and brochures. The information is updated each month, and customers tell us the tags are very helpful in saving them time reading labels. We also offer Deli Data, which provides information on the nutritional value of ingredients in deli products. The information is contained on a Rolodex in the deli area, and we've had a good response from customers at stores where it's available. MOORE: We have consumer centers in the stores, and every week we send copies of our newsletters, plus issue-oriented brochures from manufacturers or ones we develop ourselves, plus two recipes. People laugh at the recipe program as being old-fashioned, but customers like it because so many people don't know how to cook and they like to try new things. We have an 800 phone number for customer complaints, which are fielded by customer service representatives. We've tried over the years to prevent small problems from getting bigger by