SN'S POWER 50 2003-07-21 (6)

Mark Hamstra / Elliot Zwiebach / Lynne Miller / Anthony Coia / Christina Veiders / Roseanne Harper /

5) David Dillon

CEO, Kroger

WHY: Runs the largest traditional supermarket company in America.

WHAT'S NEXT: Continuing Kroger's legacy as an efficient food-retailing machine.

He's only been on the job for a month, but the verdict is already in: Kroger Co. is in capable hands with David Dillon, the Cincinnati-based company's newly named chief executive officer.

As the grandson and great-nephew of the founders of Dillon Cos., the supermarket chain Kroger acquired in 1982, Dillon has food retailing in his blood. The industry will be watching closely to see how a prince of a family-owned supermarket fiefdom handles his place on the throne of a publicly traded empire.

Dillon takes the helm at the nation's largest and most complex traditional supermarket company at a time when it is renewing its commitment to efficiency and facing one of the most stubborn economic recoveries in recent memory. With $52 billion in annual sales and 2,500 stores operating under two dozen banners, Kroger is the closest thing the country has to a national supermarket chain.

"He isn't very well-known, but a year from now he will be," said Robert Aders, the former Kroger executive. "He's a solid guy with solid experience. I think David has a very good chance of being a successful CEO."

After working in various capacities at the store and warehouse levels, Dillon ran Kroger's Dillon Cos. subsidiary from 1986 to 1995, when he was named president of Kroger. At Kroger's annual meeting last month, he was named to replace longtime CEO Joseph Pichler, nicknamed "Cash Flow Joe" because of his ability to wring costs out of operations.

Analysts said the succession plan at Kroger was engineered in such a way that it would cause minimal disruption and would allow the company to leverage the respective strengths of each of its top managers -- Rodney McMullen, who was named vice chairman; Don McGeorge, who was named to succeed Dillon as president and chief operating officer; and Dillon himself.

"David is a real operations guy," said Meredith Adler, an analyst who follows Kroger at Lehman Bros., New York. "I think the structure they've taken allows them to keep some very talented people in the organization. I think they made everyone happy, but the operating guy in the end is the one who's going to run the company."

Straight-laced and square-jawed, Dillon also helps maintain Kroger's air of integrity and reliability.

"My sense is that he's a very solid sort of Midwestern kind of guy, very much in the mold of everyone else there at Kroger," Adler said.

Chuck Cerankosky, analyst, McDonald Investments, Cleveland, also cited Dillon's operations experience as a valuable asset to Kroger going forward.

"He spent a lot of time working with the divisions and the store managers, and I think it's just a natural that he become CEO following Joe Pichler," he said. "I think he has the temperament to lead the company in what is a tough economic environment."

Dillon said it will be business as usual at Kroger.

"The top management team has been active in developing our strategic growth plan and implementing it, and we intend to continue to do the same," Dillon told SN in a recent interview.

"He's definitely a power player," said Aders. "Whether or not he's a leader in the industry will play out over time."

6) Larry Johnston

Chairman and CEO, Albertsons

WHY: Results-driven leader with goal to make Albertsons No. 1 in food and drug.

WHAT'S NEXT: Continue to fine-tune and improve its asset returns.

Larry Johnston is a quick learner.

After just over two years as chairman and chief executive officer of Albertsons, Boise, Idaho, Johnston appears to have a handle on supermarket retailing after 29 years with General Electric Co., and he's beginning to put his stamp on Albertsons.

His ultimate goal is quite simple: to make Albertsons the No. 1 food-and-drug retailer in the world.

Since joining the company in April 2001, Johnston has relied heavily on the expertise of his management team -- particularly the man he refers to as "my partner," Peter Lynch, who opted to stay on as president and chief operating officer. But the directions in which Albertsons is moving reflect much of Johnston's thinking, observers told SN.

Among the most significant strategic moves engineered by Albertsons under Johnston's watch has to be the decision to develop more dual-branded combination stores based on the Jewel-Osco model. Johnston initiated the push for dual branding -- a term he coined -- after he recognized that the Jewel-Osco food-and-drug stores in the Chicago area were recording higher sales than stand-alone food stores, with the potential for higher profitability.

The result is 65 Albertsons-Osco or Albertsons-Sav-on stores opening in the last 24 months, with Albertsons' massive 300-store Southern California division slated for the next series of conversions over the next couple of years.

In other progressive actions executed during Johnston's tenure:

Albertsons decided to rid itself of unprofitable stores, closing 165 locations and exiting Houston, Memphis, Nashville and San Antonio.

Taking a page from Wal-Mart Neighborhood Stores, the company is in the process of converting its one-hour photo-finishing operations into a 30-minute service.

In an effort to use technology to improve sales, Albertsons is expanding a test of a "personal shopper" system that allows customers to use handheld scanners to process their orders as they shop.

Gary Ames, retired president and CEO of MediaOne International and chairman of Albertsons' board of directors committee on management development and compensation, gave Johnston a vote of confidence at the chain's annual meeting in June when he said, "The board is thrilled with Larry Johnston's performance. As with any new CEO, the problems are always more difficult than anticipated, but the board is happy with the entire management team."

According to Mark Wiltamuth, securities analyst with Morgan Stanley, New York, "Johnston got off to the right start in closing underperforming stores and pursuing better asset returns, which is what investors are looking for.

"But the honeymoon quickly wore off as the competitive environment has continued to get worse, and Albertsons is now in a reactive mode -- cutting prices to protect its market share and strengthen sales -- and it could probably stand to trim more stores and pare back further."

Johnston's attempts to transform Albertsons have included five strategic imperatives that he helped formulate.

The imperatives involve aggressive cost and process control; maximizing return on invested capital; a companywide focus on technology; a customer-focused approach to growth; and an energized base of associates.

ELLIOT ZWIEBACH

7) Steve Burd

Chairman, president and CEO, Safeway

WHY: Led Safeway to become industry's top-performing chain.

WHAT'S NEXT: The challenge of restoring Safeway's financial performance.

Safeway's Steve Burd likes to tell this story on himself:

He's on a weekend outing with his son when his son asks him a question. When he gets no response, the son says, "Dad's off in Safewayland again." "And that's where I usually am," Burd relates, "thinking about some issue or other."

Safeway, Pleasanton, Calif., may have lost some of the edge over the last 18 months when it was the industry's performance leader throughout much of the 1990s, but observers said Burd really hasn't lost focus on the company, nor has he lost interest in making Safeway the best operator it can be. "Burd's focus is 99.9% Safeway," one industry analyst told SN.

And although Safeway has fallen off its lofty perch, few people are willing to write off its ability to rebound as long as Burd is in charge. "Safeway still defines the strategy for the industry," one analyst told SN.

Labor negotiations: "Burd's call-to-arms a year ago drew a line in the sand in terms of seeking union concessions -- to make a best, last and final offer, and stand by it," the analyst said, pointing to Safeway's decision to sell its Dominick's operation when it couldn't get the union concessions it had sought.

Another observer suggested that Safeway's willingness to sell Dominick's when it couldn't get the labor settlement it wanted may be a sign that Burd is adjusting to changing conditions and might still be able to lead Safeway back to its former glory.

Private label: While acknowledging that premium private label was introduced by Loblaw, the analyst said Safeway has been the chief mover in the United States "that has inspired others to follow."

Additionally, improving employee attitudes and getting productivity gains to drive sales and margins were central to Safeway's financial turnaround in the mid-1980s, when Burd joined Safeway as a consultant. Under Burd's guidance, Safeway engineered a leveraged buyout and exited nearly 50% of the markets in which it operated. It then used the proceeds to reinvest in capital spending across a smaller store base, while it re-engineered its cost structure by simplifying work processes -- all of which enabled Safeway to achieve fundamental, ongoing savings that were reinvested in lower pricing.

Although the recent slippage in Safeway's financial results is part of an industrywide pattern, it's removed some of Burd's previous luster, observers said. "He was a great consultant who some people believed could walk on water, given the turnaround job he did at Safeway," said one analyst. "But maybe the Peter Principle is coming into play here because Burd seems to be struggling in a tougher sales environment."

Part of Burd's strategy called for Safeway to expand through acquisition, and while the acquisition of Vons Cos. in Southern California in 1997 was a raging success, subsequent acquisitions of Randalls and Tom Thumb in Texas, Dominick's in Chicago and Genuardi's in the Philadelphia area have proven more problematic as Safeway took chains with strong consumer franchises and attempted to remake them in its own image, resulting repeatedly in a loss of the edge each acquired company formerly had.

According to one analyst, "While Burd was certainly good for Safeway in the 1990s, the industry dynamics have changed, and he doesn't seem to be doing a lot right now that sifts through to the bottom line. But it's still too early to tell if he will be able to adjust."

ELLIOT ZWIEBACH

8) Bill Grize

President and CEO, Ahold USA

WHY: Works hard on industry issues like technology standards while overseeing a dominant force in East Coast food retailing.

WHAT'S NEXT: Must maintain morale and focus of U.S. business as parent company struggles.

Bill Grize was trying to enjoy a seaside vacation earlier this month, but the phones wouldn't stop ringing.

That's what happens when you're running six regional supermarket chains while your parent company is undergoing a major meltdown.

As president and chief executive officer of Ahold USA, Chantilly, Va., Grize holds the fate of the nation's fourth-largest traditional supermarket operator in his hands. A forceful leader known for bringing diverse factions together on industry issues, he is applying the skills learned through 44 years in the industry to preserve Ahold USA's status as one of the most innovative and profitable companies in U.S. food retailing.

"He's been a powerful source of stability during this crisis," said Bob Tobin, the former Ahold USA CEO who worked with Grize for more than 30 years and preceded him in four executive posts during that time. "Some people cave in to adversity, but he seems to thrive on it."

Ahold, the Zaandam, Netherlands-based parent company of Ahold USA, in February disclosed that its U.S. Foodservice division had overstated its profits by hundreds of millions of dollars. The scandal has thus far had a minimal impact on Ahold USA's retail operations, which together generated about $25 billion in sales last year.

Observers say Grize has what it takes to keep Ahold USA on course despite the turmoil surrounding it.

"I think he's a people person, and my sense is that he's a very reasonable person, so I think he's going to understand the challenges," said Meredith Adler, analyst, Lehman Bros., New York.

She said maintaining morale among the Ahold chains must be atop Grize's priority list. "They can't just think that because the parent company has problems that the individual chains can't continue to grow or be aggressive."

Grize himself credits the Ahold organization for cultivating strong leaders, especially the Stop & Shop division, where he spent 34 years and was president and CEO before being tapped to replace Tobin as CEO of Ahold USA in 2000.

"I think I've done a pretty fair job of developing people," he told SN. "Stop & Shop has been a nutrient-rich environment for growing people -- we've produced six CEOs for Ahold since they bought us in '95."

Grize also said he's especially proud of his accomplishments in the area of encouraging diversity, both within employee ranks and among the company's supplier partners.

Many of his accomplishments within the industry are likely to manifest themselves for years to come. His work as chairman of the Industry Relations Council at the Food Marketing Institute, Washington, has been important in moving forward technology standards for retailers and manufacturers through UCCnet.

Grize credits his partner in that endeavor, Danny Wegman of Wegmans Food Markets, Rochester, N.Y., as being the "visionary" of the project, while Grize described himself as "the whip."

In fact, observers note that Grize has been known to lose his temper when pressing for more cooperation on issues that he considers to be in the industry's best interests.

"He's no shrinking violet when it comes to proclaiming something that he believes pretty strongly," said Robert Aders, a former FMI president.

"We're rife with inefficiencies in our industry," Grize said. "There are a number of arcane practices and policies that really aren't in the best interest of the customer.

"I'd like to think as a leader, I encourage us to look at things in a more holistic fashion -- what does this mean to the customer? And can we, by working together, drive some of those costs out to benefit the customer? Whether you are a supplier or a retailer, you should be looking at it through the same lens."

MARK HAMSTRA

9) Charles Jenkins Jr.

CEO, Publix Super Markets

WHY: Guiding Fortune 500 company's ongoing expansion.

WHAT'S NEXT: Look for the Publix banner in new cities.

Under Charlie Jenkins Jr.'s leadership, Publix keeps getting bigger and bigger.

On Jenkins' watch, the Lakeland, Fla.-based company last year introduced the Music City to its unique brand of exceptional customer service. Publix operates seven stores in Nashville and, according to reports, wants to become the region's No. 2 grocery chain, behind Cincinnati-based Kroger. Observers believe the company could replicate in Nashville what it achieved in Atlanta. Publix entered the Atlanta market 11 years ago, and today is the No. 2 operator there, behind Kroger.

Publix has accelerated the pace of growth in recent years. The Nashville stores are part of the company's plan to add more than 300 stores between 2001 and 2006. Overall, Publix opened 76 stores, closed 19, and expanded or remodeled 91 stores in 2002. The retailer plans to open 69 more this year, according to a filing with the SEC. Most new stores have opened in the retailer's home state. Publix operates 767 supermarkets, including 190 in Georgia, South Carolina, Alabama and Tennessee, and employs 120,000 people. Observers told SN the ambitious expansion plan is not particularly risky for the company since it has a rock-solid reputation and experience with new markets.

"Look what they've done in Atlanta," said Andrew Wolf, an equity analyst with BB&T Capital, Richmond, Va. "They're differentiated from the mainstream competition in a positive way. Their stores are essentially a cut above the competition."

Intensely private, Charlie Jenkins declined to be interviewed by SN. The 59-year-old Jenkins became chief executive officer in 2001, replacing his cousin, Howard Jenkins, who had been CEO since the 1980s. The transition has gone smoothly, observers told SN, noting the cousins are more alike than different in their management styles. Both are committed to running the company in the family tradition. Publix was established in 1930 by the late, greatly revered George Jenkins, Howard's father.

Charlie Jenkins has more than 30 years of experience with Publix, including stints as chief operating officer and chairman of the executive committee. For several years, he headed the real-estate department.

Since his appointment, there's been no sign of any dramatic change in focus, said a retired executive who worked with Jenkins for a number of years.

"When you have a company as large as Publix and going in one direction and the leadership changes, not much is going to change," said Bill Curry, a former vice president of real estate with Publix who retired from the company in 1996 after 37 years. "Howard Jenkins did a hell of a good job, and Charlie just steps right in and takes the reins.

"The biggest difference is Charlie is more cautious than Howard," Curry said. "I tell you they're amazingly similar."

Recognized as a progressive company, Publix in recent years introduced online shopping and home delivery, a new gasoline-convenience store format and in-store meal solutions centers targeting busy working consumers.

In Nashville, store associates have made an impression by greeting and offering to help consumers. Industry watchers have noted that the top-notch customer service helps Publix compete with big-box rivals like Wal-Mart and Kroger.

Known for treating customers right, Publix by many accounts treats workers right, too. The chain has been included in Fortune magazine's list of "100 Best Companies to Work For."

"Publix pays well, and they have good benefits," said Curry, who started at the chain as a bag boy and is the father of two Publix store managers. "The company is filled with people like me, who will retire with a good amount of money due to the success of the company."

LYNNE MILLER

10) Pierre-Olivier Beckers

President and CEO, Delhaize Group

WHY: One of the few CEOs who understands the need for global supply chain standards.

WHAT'S NEXT: His presence will be felt as momentum builds for data synchronization and RFID standards.

The Internet has provided retailers and manufacturers in the food industry with an opportunity to communicate more efficiently and rapidly than ever before. But without industry standards for communicating electronically, no real advantages can be gained. Most chief executive officers pay lip service to the need for standards, but few actually step up and take a leadership role. Pierre-Olivier Beckers, president and CEO of the Delhaize Group, is one such CEO. Indeed, few other chief executives have been as outspoken on the subject as he. He has also recognized the need for global cooperation in other areas, such as food safety.

Joining Brussels-based Delhaize as a store manager in 1983, Beckers, now 42, has headed the company since 1999, and has been CEO of subsidiary Delhaize America -- parent of Food Lion, Hannaford Bros. and Kash n' Karry -- since last September. He is on the board of Food Marketing Institute, Washington, and is chairman of CIES-The Food Business Forum, Paris. Richard Fedigan, CEO of CIES, commended Beckers as "an influential person in the supermarket business for a number of reasons, including his integrity, intellectual and business rigor, business and people leadership skills, and humility." Beckers believes that a common, industry-wide vocabulary for supply chain activities is essential to maximizing effectiveness in the supermarket business. At FMI's Midwinter Executive Conference in Boca Raton, Fla., in January, he made this point clearly. "The lack of global standards creates costs, and we all pay," he said. "Systems need to be open and to talk to each other."

Beckers' leadership in the standards movement has not gone unnoticed. Thomas Murphy, president of Peak Tech Consulting, Colorado Springs, Colo., applauded "his vehement support of the need for reducing costs and driving sales" via business practices "that can only occur effectively and efficiently with standards."

Beckers has demonstrated to his peers that talk is not enough and that implementation is necessary, noted Fedigan. "Because of the successful debate that he has orchestrated, retailers and suppliers are utilizing global data languages," Fedigan said. For example, "industry leaders have accepted the Electronic Product Code (EPC) and RFID vocabularies, and have agreed to implement these systems." In the United States, Delhaize USA chain Food Lion has taken a leadership role in the development of UCCnet, the UCC's data synchronization service.

Anthony Coia

11) Danny Wegman

President, Wegmans Food Markets

WHY: An innovator and advocate for bettering the industry through technology.

WHAT'S NEXT: More merchandising innovation and expansion into new markets.

Danny Wegman gets involved big time. His involvement encompasses the operation as president of Wegmans Food Markets, Rochester, N.Y., the 65-unit regional chain with sales last year of $3.02 billion. He has expanded the family-owned chain into New Jersey and Pennsylvania. Next year, stores will open in Sterling and Fairfax, Va., and Hunt Valley, Md.

Wegman is a tireless champion of issues close to his heart -- food safety, customer privacy, global e-commerce standards and employee education, among others.

A board member of the Food Marketing Institute, Wegman has served on many FMI committees during his career. In 1999, he served a two-year term as FMI's board chair, and is presently chairman of the FMI nominating committee and on the board of governors of UCC (Uniform Code Council).

In addition, Wegman is a highly visible community leader in western New York, where he serves on numerous community boards and heads several charitable fund-raising events. Wegman's Work-Scholarship Connection program, designed to cut the risk of kids dropping out of school, has received national attention and raised $43.6 million in college tuition assistance since the program was launched in 1987.

Bill Grize, president and chief executive officer of Ahold USA, Chantilly, Va., who operates Tops, a competitor of Wegmans, points to Danny Wegman's success as a retailer and his independent wealth. "It would be easy for Danny to say, 'I am going to have fun, take care of my stores and customers, and enjoy the better things in life."' But that's not what Wegman is all about, he pointed out.

"Danny finds the time to put a lot of effort into doing things that don't give his company anywhere near the payback directly that he gives the industry."

Wegman is especially driven when it comes to bringing the food industry up to speed on electronic global standards and data synchronization for e-commerce. For Wegman, who said he is always restless, the process has been too slow to develop. He asks retailers to abandon their old, inefficient ways of doing business and embrace technological advances and standardization. He asks them to look beyond their own self-interests and think of moving to a higher level of technology for the good of the industry, and ultimately the consumer. Wegmans has put its suppliers on notice that he expects them to begin synchronizing their data by Jan. 1, 2005.

"Danny understands better than anybody the nuances of where we should compete and where we should collaborate," Grize said. "He has been very progressive in asking the industry how we can work better with suppliers, simplify what we are doing, and how we can take costs out of the business."

Wegman said he's been involved in the family retail business, which dates back to 1915, since the day he was born 56 years ago. "There was no choice," he told SN during an interview. And his daughters -- Colleen and Nicole -- have no choice either, he joked. After working his way up the ranks, Wegman was named president in 1976. His 84-year-old father, Robert, is chairman.

What sets Wegman apart from others is his innovative food retailing style, which he has brought onto the sales floor by creating signature departments of high-quality foods and products.

"Danny has shown the world what it takes to be a great merchant," said Norman Mayne, CEO, Dorothy Lane Markets, Dayton, Ohio, noting there is a difference between a grocer and merchant.

"He creates faster than the competition. His stores sell great food with a sense of theater. People who work at Wegmans feel they truly belong and have the authority to be creative on their own. Wonderful things happen at Wegmans, and it is spread throughout the company," he said.

Last year, Wegman was the first retailer to introduce irradiated ground beef. The chain also took a big step by going to an everyday-low-price strategy on thousands of items throughout the store -- a reaction, said observers, to the growth of Wal-Mart in Wegmans' core markets.

Wegman said he gets excited when he sees his associates excited. "Their enthusiasm is infectious," he said.

For the sixth year in a row, Fortune magazine named Wegmans one of the 100 Best Companies to Work for in America, achieving 10th place in 2003. It is just one of many honors bestowed on Wegmans for excellence in retailing, customer service and commitment to the community.

Put simply, Wegman said, "We care about our people, our customers and the food we sell. We care about doing things better. We aren't focused on finances. The finances will take care of itself if you focus on your people and customers."

Christina Veiders

12) Charles C. Butt

Chairman and CEO, H.E. Butt Grocery Co.

WHY: Leading innovation among independents.

WHAT'S NEXT: Expanding with fresh ideas, new banners.

Charles Butt knows no bounds.

Competition? Geography? Fear of failure? Those aren't factors that limit Butt as he forges ahead with new ways and new places to present fresh foods.

When Butt authorized the innovative Central Market format in Austin nine years ago, the industry was startled, but it was even more startled when the format didn't fall on its face. That concept -- which cradles fresh-food displays in a large, winding format and all but ignores big-brand grocery items -- drew industry people from all over the country. It's a beautiful sight, but what's more important, it's a financial success.

That could have been the coup that would have allowed Butt to relax, but he didn't.

Since that debut, he has taken Central Market into other Texas cities, introduced new fresh formats in major Texas markets, and has opened stores in Mexico. It's only a matter of time until he pushes eastward, beyond the Texas border, with a fresh-format store, some sources speculate.

"Charles Butt and H-E-B have never been content to rest on their laurels. They're a fierce competitor, and they combine competition with great innovation," said Neil Stern, senior partner, at McMillan/Doolittle LLP, a Chicago-based retail consulting firm.

"Central Market is a transformational store -- for the whole industry as well as for H-E-B. It may be the best fresh presentation in the industry, and it takes bold leadership and patience to build such a complex concept."

Just over a year ago, Butt launched another attention-getter: a stand-alone store, specializing in prepared meals, with a drive-up window. He has also experimented with in-store cooking instruction and a fresh-food store-within-a-store. Granted, it's not the kind of thing he would roll out to the chain's 300 stores, but that's the key.

In the early '90s when the air was abuzz with ideas and experiments regarding "home meal replacement," Butt led the way with a plumped-up menu of prepared foods -- items that complemented his already-successful rotisserie and fried chicken programs.

The new array of prepared foods was offered in most H-E-B stores, and it didn't work -- not as a mass fan-out anyway. That didn't stop Butt. He just looked for another way to get them to their rightful market.

"Now they're tailoring prepared-foods programs to specific neighborhoods, and it's working. They find new ways to deliver to the right shoppers," said Stephan Kozoumis, president, Entrepreneurial Consulting, Louisville, Ky.

Butt's latest venture has been opening Hispanic-format stores in Houston, and those, too, are charted for success, sources said.

Roseanne Harper

13) Dave Shapira

Chairman and CEO, Giant Eagle

WHY: Building Giant Eagle into a strong regional player.

WHAT'S NEXT: Doubling sales volume to $9 billion by 2007.

David Shapira has quietly transformed Pittsburgh-based Giant Eagle from a one-town player to a regional powerhouse.

After operating exclusively in the Pittsburgh market for most of its 72 years, Giant Eagle has been on the move, expanding into central Pennsylvania in 1989, Ohio in the late 1990s and the Mid-Atlantic region last year.

Shapira has set a very specific long-term goal -- to double sales to $9 billion by 2007 through a combination of acquisitions and organic growth. That growth may come in bursts, through major acquisitions or incrementally -- one store at a time, if necessary -- to build critical mass.

When Giant Eagle moved into Cleveland in 1997 with the purchase of market leader Riser Foods, it took the company two years to remake the stores in its own image before it rebannered them. On the other hand, it expanded into Columbus in 2000 with two stores and Toledo in 2002 with a single store, and again later that year with four stores when it moved into northern Maryland as part of a six-store acquisition.

Giant Eagle operates 214 supermarkets in Pennsylvania, Ohio, West Virginia and Maryland with a volume of approximately $4.6 billion. The store base includes 131 corporate stores and 83 independently owned stores licensed to use the Giant Eagle name; in addition, the company acts as wholesaler to the licensed stores and also sells groceries to other retailers.

According to a colleague, "David is a true entrepreneur -- a very progressive, loose guy who's a good businessman but who isn't afraid to reach for the rainbow."

Shapira's efforts to reach for the rainbow and experiment have led him to strive to benchmark against the best-in-class as Giant Eagle has introduced new departments in its supermarkets, the colleague pointed out. When it got into video departments, for example, Giant Eagle studied Blockbuster and Hollywood Video as its models; when it developed drive-through pharmacy windows, it looked at what drug stores were doing, and when it entered the natural foods area, it sought to emulate what specialty supermarkets were doing.

Shapira is a hands-on chief executive who's involved with all levels of his operation, the colleague said. "David is a floater -- if he's interested in what's going on, he'll poke his head in, though not in a disruptive way. He interacts with everyone, from cashiers to produce managers to warehouse people to office workers."

Elliot Zwiebach

14) John Lederer

President, Loblaw Cos.

WHY: Loblaw is the largest supermarket company in Canada, and it continues to be one of the most influential.

WHAT'S NEXT: Rolling out expanded general merchandise selections and on-site services to help the company compete with Wal-Mart.

Supermarket retailers across the United States look up to Canada.

Specifically, they look up to Loblaw Cos., Toronto, which stands as not only the largest supermarket retailer north of the border but arguably one of the most innovative. Under the leadership of John Lederer, president, Loblaw "defines the way people will conduct themselves in the food retail business in Canada," as one observer put it.

The company, a subsidiary of George Weston Ltd., also based in Toronto, operates and franchises more than 1,000 stores across Canada and for the past several years has been one of the top-performing retailers in North America. It generated nearly $15 billion in sales last year, more than double the volume of its closest Canadian rival, Sobey's.

Loblaw's success in the areas of private label, general merchandise and the operation of multiple formats has been emulated not only by its Canadian rivals but by operators in the United States and overseas.

Lederer, who joined the company in 1976, is credited with continuing the strategies of his predecessor, former President Richard J. Currie. But Lederer had already begun to make his mark as a leader before he took over as president on Jan. 1, 2001.

With the development of the No Frills limited-assortment division as a means of converting underperforming real estate more than 10 years ago, Lederer spearheaded one of Loblaw's most successful -- and widely imitated -- strategic maneuvers. The company now operates nearly 300 outlets of the discount-grocery concept under the No Frills banner in Ontario, ExtraFoods in Western Canada and Maxi in Quebec.

"It allows them to go after the discount shopper," explained Bill Chisholm, analyst, Dundee Securities, Toronto.

It also helps the company retain market share despite the incursion of Wal-Mart into Canada. The Bentonville, Ark.-based discount-store operator now has more than 200 outlets in the country.

Lederer has made it clear that he plans to continue to defend his company's turf by adding more general merchandise and on-site services like clinics and fuel centers. He also has begun to take a tougher stance on labor.

"The marketplace is now home to more global and non-unionized competitors," he said at the company's annual meeting earlier this year. "The definition of a level playing field is changing. So are the elements required to remain competitive."

Lederer also has continued to expand Loblaw's vaunted private-label program, committing to add 250 to 300 new products in its President's Choice line each year.

"He's pushing the private-label program pretty aggressively, and that's having an impact on the industry here in Canada, and having more of an influence on strategy at U.S. retailers as well," said Chisholm.

Brian Sharoff, president, Private Label Manufacturers Association, New York, said Loblaw's leadership in private-label quality, innovation and packaging continues today under Lederer's guidance. "Loblaw remains one of the world leaders in private-label development," he said. "Not a month goes by without Loblaw's introducing some new product that's ahead of the curve."

In a prepared statement, Lederer emphasized Loblaw's effort to expand its general merchandise offerings, which are growing to include everything from home electronics to children's clothing, as well as wider selections of health and beauty care products.

"Our focus looking forward is to concentrate on our customers and employees offering a wider selection of food and everyday household needs," he said. "We must be vigilant on costs, improve our pricing proposition whenever possible and drive top-line sales. Our success will be dependent on our ability to execute against our strategies and initiatives."

Mark Hamstra

15) Liz Minyard

Chairman of the board, FMI

WHY: Holds FMI's top elected position.

WHAT'S NEXT: Steering the association through major changes involving its annual convention.

Liz Minyard's new industry role, board chair of the Food Marketing Institute for the next two years, would be enough to land her on SN's list of the most influential industry executives.

Recalls former FMI board Chair Robert Bartels, who held that position from 1995 to 1997: "When I was FMI chairman, I was never refused a hearing or assistance from anyone in the industry. The chair role is a unique platform and highly visible."

But there are additional reasons why Minyard qualifies for the Power 50 list. She is the first woman to hold the FMI title, a fact that almost ensures an influential tenure involving new thinking and change.

There's still more. Minyard, who is co-chairman and co-chief executive officer of Minyard Food Stores, Coppell, Texas, took FMI's top elected spot in May at a time when the association is facing some of the biggest choices in its 26-year history. These choices center on how FMI will evolve its annual convention, long the premier industry event, and Minyard will be closely involved in the decisions.

"We're talking about what FMI will look like," Minyard said in an earlier interview, indicating she has a crucial role in facilitating a discussion across the industry. "Last year was FMI's 25th birthday. It's a new century and you need some change."

FMI has turned to the new strategy of co-locating other trade exhibitions with its May event to maintain and grow attendance during a more difficult time for trade shows. That strategy began with the co-location of the Mid-West Fancy Food Show last year. Next year it will extend to co-location with the United Fresh Fruit & Vegetable Association's annual exposition and conference. Discussions are under way to partner with other organizations.

How is Minyard driving discussions about FMI's future? She convened a meeting of FMI's Strategic Planning Committee before May's convention. She and other committee members will research options this summer before reconvening in the fall to discuss findings.

"I've been talking to as many manufacturers and retailers as I can," she said. "My focus as chair is to create dialogue."

The board chair will undoubtedly focus on other industry topics as well. She came to the role after a long association with FMI activities dating back to the 1970s and has served on many board-level committees.

Bartels, chairman and CEO of Martin's Super Markets, South Bend, Ind., said Minyard will have a strong and positive influence in her FMI role. "She is a very experienced food industry executive. She is very articulate and will be a great leader and spokesperson for the industry."

David Orgel