EXECUTIVE CHANGES 1997-10-13 (2)

Grand Union Names President

ion Co. here has named Gary Philbin president and chief merchandising officer.

Philbin joins Grand Union from Cub Foods, Stillwater, Minn., where he was executive vice president in charge of merchandising and operations.

The previous president of Grand Union was Joseph J. McCaig. McCaig, who also held the chief executive officer title, resigned from the company in May. Before Philbin, merchandising was headed by William Louttit, executive vice president and chief operating officer. Louttit left the company in February.

No one at Grand union has ever held the title of "president and chief merchandising officer," said Grand Union's executive vice president and chief financial and administrative officer, Jeffrey P. Freimark.

"This is a clear statement of where we believe our efforts need to lie," Freimark told SN last week. "Given Grand Union's issues, it is most appropriate to appoint a president and 'CMO.' Merchandising is an area that will fuel the success of this company in the future."

J. Wayne Harris, chairman and chief executive officer of Grand Union, said, "Gary Philbin is one of the finest executives within the food industry today. He has an exceptional background in the retail business and is equally proficient in both merchandising and operations.

"[Philbin] brings very strong people-related skills to his position as president of Grand Union. His standards are high and he has the ability to generate enthusiasm for the achievement of those standards through the organization."

Before joining Cub Foods, Philbin was vice president of merchandising with the Waldbaum's division of A&P, Montvale, N.J. Prior to that assignment, he held a series of increasingly important merchandising and operations positions with Kroger Co., Cincinnati.

Grand Union has annual sales in excess of $2.3 billion, and operates 221 retail food stores in six Northeastern states.

Supervalu, the Minneapolis-based parent company of Cub Foods, said a successor for Philbin has yet to be named.

In a statement last week, Philbin said, "Grand Union is a highly-respected supermarket retailer with an excellent heritage and an even more promising future. I look forward to working with the company's merchandising and operating team to help build the company's sales, cash flow and profits."

Tops CEO Retires to Join Ahold

ZAANDAM, Netherlands -- Ahold here said Larry Castellani has retired as president and chief executive officer of Tops Friendly Markets, Buffalo, N.Y., to accept a corporate post with Ahold in international and U.S. development.

The company said Bob Tobin, chairman and chief executive officer of Stop & Shop Cos., Quincy, Mass., has taken over as president and CEO of Tops on a temporary basis until a permanent successor can be found. Tobin retains his titles at Stop & Shop, though day-to-day activities there are being overseen by William Grize, president.

A company official told SN last week there are no plans to merge Tops into Stop & Shop. Castellani, 52, is the son of Tops' founder and has worked for Tops since the company was established in 1962. It was acquired by Ahold in 1991.

His new job involves furthering the interests of Ahold in both the United States and overseas.

Tops accounts for approximately $3 billion in sales, or just under 20% of Ahold total U.S. volume. According to Ahold, Tops' same-store sales were down 1.3% in the first quarter and 3.4% in the second.

Earlier this year Tops took over management of Ahold's Finast Friendly Markets stores, based in Maple Heights, Ohio. At about the same time the company merged Edwards Super Food Stores, Windsor Locks, Conn., into Giant Food Stores, Carlisle, Pa.