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Four Lessons From Rutter’s New Foodservice Lead

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YORK, Pa.— Ryan Krebs has been at Rutter’s Farm Stores for 35 years—if you count his 5-year-old self biking over, allowance in hand, to buy baseball cards.

The foodservice veteran and York, Pa., native took over the reins this month from now-retired Jerry Weiner to become director of foodservice for the convenience-store chain.

But a lot has happened since he bought those baseball cards. A graduate of Johnson & Wales University with a degree in culinary arts, Krebs has traversed the foodservice industry—and the country—working at restaurants, hotels, country clubs and catering firms and in rehabilitative and long-term care facilities.

Prior to joining Rutter’s in 2013, he spent about seven years as a corporate executive chef overseeing eight nursing homes in San Diego. His experience reflects an industry going through an evolution similar to that of c-stores.

“There was a push to upgrade foodservice in healthcare, which is obvious; it had never been what it should be, particularly in long-term care for our seniors,” said Krebs.

The company thought that a solid way to help propel change in its foodservice offering was to hire a chef (sound familiar?), which in turn propelled Krebs to become a spokesperson for the evolution, speaking publicly about enhancing long-term care and co-authoring a book on the subject.

Rutter’s hired Krebs in 2013 as a “roving restaurant manager,” moving to a different location each week. About a year later, he was named restaurant manager for the newly opened Middletown location, which quickly became the chain’s highest-volume store. He was running the program there for a little less than a year when he was invited to interview for the position soon to be left by Weiner—whose legacy resonates strongly with Krebs.

“Jerry Weiner already established us as a marquee player,” he said. “He built the foundation. He’s a hall of famer in the industry and has left me set to just move the business forward.”

Surely Krebs has been thinking about this transition for some time, evident in the handful of places where he’s already found epiphanies and great ideas:

Putting the Service in Foodservice

“As a chef you’re always in the back of the house, you never have to communicate with anyone, and Rutter’s has an open kitchen that your customers are literally 20 inches from you all day long. So I had to begin to develop the customer service side.”

Krebs believes this service aspect could be a crucial asset—or major weakness—to the c-store industry. “That becomes a separator of why would they go here instead of somewhere else.”

The Challenge of Consistency

A major challenge—and motivator—for Krebs as roving manager was to ensure consistency from one c-store to the other 59 in the chain. He learned it requires structure and that, luckily, Rutter’s does consistency amazingly well.

Scheduling Shouldn’t be Retail-Oriented

When Krebs arrived, Rutter’s was running more traditional retail hours for its foodservice employees—6 a.m. to 2 p.m., 2 to 10 p.m. and 10 p.m. to 6 a.m. “If you did that at a restaurant, there would be all these gaps,” he said. Instead, he began scheduling according to peak times throughout the day, with overlaps for easier transitions.

Setting Up Stations

Krebs also turned Rutter’s foodservice space into separate stations, “which is a restaurant thing. We have an expeditor, a fryer person, utility people and prep people, and we run our system based off prep lists and stations during our busiest periods to allow us to be the most efficient.”

Author(s): 
Abbie Westra

MillerCoors Names Hattersley CEO

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CHICAGO — The Board of Directors of beer-marketing joint venture MillerCoors named Gavin Hattersley to the role of chief executive officer, following former CEO Tom Long, who retired on June 30. Hattersley, 52, had been serving as the interim CEO of MillerCoors since July 1, in addition to his role as chief financial officer of Molson Coors.

MillerCoors is a U.S. and Puerto Rican joint venture between SABMiller plc and Molson Coors Brewing Co.

“Gavin is the right person to lead MillerCoors forward,” said Pete Coors, chairman of the MillerCoors Board of Directors and vice chairman of Molson Coors. “Gavin has a great handle on what needs to be done to achieve growth at MillerCoors, and he has the complete confidence of the board, the employees and the distributor network to achieve this aspiration.”

“Gavin knows both parent companies incredibly well, and he knows the MillerCoors business better than anyone,” said Alan Clark, chief executive of SABMiller. “In his few short months as interim leader, he has quickly taken action across a number of areas. He has shown a deep understanding of the strategic issues facing the business and the need to prioritize returning MillerCoors to total volume growth in the years ahead.”

“Gavin combines his business knowledge with a healthy dose of impatience that’s needed at MillerCoors,” said Mark Hunter, CEO of Molson Coors. “MillerCoors has a tremendous portfolio of brands, and they deserve a leader who will be able to focus all of his energy and efforts against growing the business.”

Hattersley’s appointment is effective immediately. He follows Tom Long and Leo Kiely as the previous two CEOs of the MillerCoors joint venture. Hattersley and his wife, Terry, will relocate to Chicago.

“I am humbled and honored to lead MillerCoors forward,” Hattersley said. “The passion and energy that our employees and distributors have for growing this business is awesome. We have a lot of work to do to meet our ambitious goals, but we have the people, brands and firepower to do it. My job is to galvanize and focus our collective efforts and inspire the company to take smart risks, execute the right ideas and, ultimately, grow our total volume and shareholder value.”

Molson Coors has begun the process of identifying Hattersley’s successor as CFO. Hattersley will remain in a dual capacity as MillerCoors CEO and CFO of Molson Coors until mid-November.

Kum & G.O.L.D.

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WEST DES MOINES, Iowa— Regional convenience-store powerhouse Kum & Go has taken steps to improve its in-store merchandising in picking a new space-optimization solution.

The provider, Symphony EYC, with its U.S. headquarters in Atlanta, said the 430-store retailer chose its G.O.L.D. space-optimization software to simplify its merchandising process across its 11-state network. The solution will help streamline tasks such as data transfer and performing swap outs of deleted items and new-product introductions.

Calling the space optimization software “sophisticated, yet easy to use,” Kristin Jarabek, vice president of merchandise planning and space for the West Des Moines, Iowa-based chain, said, “G.O.L.D. allows us to more efficiently manage and optimize our store space, to ultimately provide a better experience for our customers.”

“G.O.L.D. was selected to enable this process because of our ability to provide a centralized platform that will house all plan-o-grams, floorplans and merchandising data,” said Matt Robinson, market development director, Symphony EYC G.O.L.D. solutions. “Our solutions provide a platform to deliver more-robust analytics that deliver better fact-based decisions and facilitate two-way communication with stores leading to more efficient and accurate retail execution.”

The fifth-largest privately held and company-operated convenience-store chain in the United States, Kum & Go employs more than 4,700 associates in Iowa, Arkansas, Colorado, Minnesota, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota and Wyoming.

Symphony EYC is a strategic partner to more than 1,000 retailers, manufacturers and wholesalers worldwide, offering customer-analysis services and its G.O.L.D retail platform. Its solutions and services optimize profitability by delivering targeted product assortments across all channels supported by operations and supply-chain execution.

Stripes ‘Celebrates Tomorrows’ with In-Store Campaign

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CORPUS CHRISTI, Texas — Stripes Convenience Stores announced its alliance with The University of Texas MD Anderson Children’s Cancer Hospital to help children with cancer. On Sept. 16, during Pediatric Cancer Awareness Month, Stripes will launch its second-annual in-store fundraising campaign “Stripes Stores Celebrate Tomorrows.”

Last year, Stripes c-stores raised more than $1.4 million to provide more effective and safer cancer treatments and fund engaging programs for kids with cancer. In 2014, a total of $2.8 million, with matching funds from The James B. and Lois R. Archer Charitable Foundation, was donated to these programs on behalf of the generous guests that shopped at Stripes stores.

This year, each donation will be matched dollar for dollar by generous donors. Stripes guests will be able to donate at any Stripes location during the campaign, which will run through Oct. 13. Guests who purchase a $1 pin-up paper icon will receive coupons for a free 12-ounce Slush Monkey and a buy-one-get-one-free Smokin’ Barrel Snack Co. Peanuts or Trail Mix snack. Individuals may also contribute via a mobile device by texting KIDS to 88388. Every dollar collected via text will also be matched dollar for dollar.

“MD Anderson is the No. 1 cancer treatment center in the country leading the way in cancer research,” said Eduardo Pereda, vice president of marketing for Stripes. “We are honored to launch Stripes ‘Celebrates Tomorrows’ to benefit MD Anderson Children’s Cancer Hospital and to help fund cancer research to find a cure for children around the world. Our guests and Stripes team members have shown their generosity in the past, and we hope they will continue to embrace this remarkable program.”

Stripes employees are committed to raising funds and awareness for MD Anderson Children’s Cancer Hospital, as cancer is the leading cause of death in children suffering from diseases.

“We are so appreciative of Stripes Stores tremendous generosity, and we look forward to partnering with them for their second-annual campaign,” said Cindy Schwartz M.D., M.P.H., ad-interim division head of pediatrics at MD Anderson Children’s Cancer Hospital. “Their support for the Children’s Cancer Hospital is making life better for children and young adults with cancer.”

Stripes stores will also host campaign kick-off events in six Texas cities. These communities are invited to paint a red line through the word cancer emblazoned outside of designated Stripes locations. Guests, survivors, community leaders and Stripes employees will be able to write tributes and words of encouragement in honor of loved ones during the kick-off events.

The community kick-offs will be held in the Texas cities of San Angelo, Odessa, Lubbock, Laredo, McAllen and Corpus Christi,

Corpus Christi, Texas-based Stripes operates more than 700 convenience stores in Texas, New Mexico and Oklahoma, more than 600 under the Stripes banner and 44 under the Sac-N-Pac banner.

Alto-Shaam Beefs Up Its Sales, Marketing and Culinary Teams

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MENOMONEE FALLS, Wis. — Foodservice-equipment manufacturer Alto-Shaam has added several new faces to its sales, marketing and culinary teams.

  • In sales, Lucy McQuillan was hired as the executive vice president of global sales, Gabriel Estrella Talentti was hired as the sales director of Middle East and Africa, and Joe Prowell was hired as a business development specialist.
  • In marketing, Jody Rahoy was hired as the marketing manager.
  • And on the culinary team, Richard “Rocky” Rockwell was hired as a corporate chef.

“The combination of experience and leadership these individuals bring to Alto-Shaam upholds our standard of excellence,” said Steve Maahs, president and chief operating officer of Alto-Shaam. “Adding leaders, such as our new additions, to the Alto-Shaam team will keep our company at the forefront of the industry and continue our success. We look forward to their accomplishments and contributions.”

McQuillan will oversee the domestic and international sales team and will be responsible for the support and execution of the commercial strategy for Alto-Shaam. As an active leader in the corporate strategic-planning process, she will develop, prioritize and execute the corporate sales-growth strategies in order to achieve company sales objectives. She has more than 25 years of experience holding various sales, product management and marketing roles with IMI plc and Cornelius, a supplier of beverage-dispensing equipment. There she developed commercial excellence programs across five divisions, including process and people improvement programs with the global sales team.

Talentti will be responsible for Alto-Shaam’s sales growth and development through independent dealers, distributors, direct customers and foodservice consultants. He will lead the new Alto-Shaam office based in Dubai.

Prowell will assist in demand creation alongside his counterpart on the East Coast and offer sales support to dealers within his region. Prowell most recently served in the U.S. Navy as an aviation lieutenant where he negotiated with Mediterranean Sea nations to develop programs to prevent drug, weapon and human trafficking.

Rahoy will actively lead the company’s demand-creation efforts through marketing, advertising, web development, communications and public relations. Her experience draws from her position as a marketing communications project manager where she managed integrated marketing communications for a team of product marketing managers and brand positioning efforts for Case IH, Case Construction, New Holland Agricultural and New Holland Construction.

Rockwell spent time with the Alto-Shaam culinary team at the 2015 National Restaurant Association Show and will now support the culinary seminars at Alto-Shaam’s Culinary Institute. He will also contribute to menu development and provide ongoing customer education. Rockwell, a certified executive chef from the American Culinary Federation, has more than 20 years of foodservice experience working in hotel, country club and college university industries. He most recently worked at Texas A&M as an executive chef and director of dining where he served meals to more than 2,600 ROTC cadets in 10 minutes using Alto-Shaam’s plate-retherm system.

Alto-Shaam’s corporate headquarters, worldwide manufacturing facility, Culinary Institute and Technical Institute are based in Menomonee Falls, Wis. For more than a half a century, the company has been a recognized leader and innovator in the global commercial foodservice equipment industry.

Thorntons Debuts Salted-Caramel Doughnut

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LOUISVILLE, Ky. -­‐ A new, limited-time-only doughnut treat debuted at Thorntons Inc. convenience stores this week, easing customers in fall.

The new salted-caramel doughnut is available through Oct. 6 at Thorntons c-store locations in Lexington and Louisville, Ky., Southern Indiana, Chicago and central Illinois.

The salted-caramel doughnut begins like Thorntons’ traditional glazed doughnuts, with handmade yeast dough cut into a ring and fried. The ring then travels under a “waterfall of smooth glaze” and “takes a dip in buttery caramel icing,” according to the company. Finally, a touch of sea salt is sprinkled on top.

All Thornton doughnuts are made fresh and delivered daily to each c-store.

Based in Louisville, Ky., Thorntons Inc. operates 182 gasoline and convenience stores, car washes and travel plazas in six states: Kentucky, Illinois, Indiana, Ohio, Tennessee and Florida.

California Fuel-Reduction Target Scrapped

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SACRAMENTO, Calif. — California is off the hook from a proposal that would have required it to slash petroleum-based fuel usage by 50% in 15 years.

The sponsor of an ambitious climate-change bill in California cut the key provision from the plan this week, much to Gov. Jerry Brown’s dismay.

The Clean Energy and Pollution Reduction Act of 2015 (SB-350) was introduced in February by California Senate leader Kevin de León. The bill had originally directed the California Air Resources Board (CARB) to take actions leading to a 50% reduction in motor vehicles’ petroleum use by Jan. 1, 2030. This was a key goal for Brown and a highlight of his inaugural speech earlier this year.

According to the Los Angeles Times, the bill had passed the Senate in one piece but could not garner enough support from moderate Democrats in the State Assembly because of opposition to the fuel-reduction provision, which they worried would raise gasoline prices and hurt motorists.

De León removed it to ensure the passage of the remaining parts of the bill, which include measures to increase renewable energy’s share of electricity production and sets targets for electricity and natural-gas efficiency savings and demand reduction.

Supporters of the fuel-reduction goal blamed opposition from the oil industry, which had launched a TV and radio campaign against it, labeling the bill “The California Gas Restriction Act of 2015.”

“We reached for something grand,” said de León. “But in the end, we could not cut through the multimillion-dollar smokescreen.”

While the bill’s proponents had proposed tweaking the gasoline provisions last week to make them more flexible and add some limits to CARB’s powers, they could not reach a consensus with its opponents.

However, CARB officials said they could use policies already in place to keep moving the state toward the fuel-reduction goal. These include current efforts to reduce fuels’ carbon content, improve vehicle fuel efficiency and grow mass-transit infrastructure.

The Western States Petroleum Association (WSPA), Sacramento, released a statement praising the decision to remove the fuel-reduction provision from the bill.

“WSPA and its member companies remain committed to working with Gov. Jerry Brown and legislators on climate change and energy policy,” said WSPA president Catherine Reheis-Boyd. “Today’s announcement was an acknowledgement that California’s energy future, economic competitiveness and environment are inextricably linked.”

Expert Insight: The Real EMV Risk

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ATLANTA — Though the deadline for EMV upgrades at gas pumps is still two years away, many fuel marketers and convenience-store owners across the United States are already analyzing whether the benefits of upgrading their fuel-dispensing equipment to meet this standard is worth the cost to do so.

The pivot point for most discussions is the severity of the liability shift, in particular: How much cost and risk would a retailer incur if they choose not to acquire EMV-compatible equipment? I believe, however, there is another danger that has both a higher probability and a greater potential financial impact. This is the risk of share loss to EMV-enabled competitors.

Though one of the last countries globally to adopt EMV (standards set by Europay, MasterCard and Visa), the United States will begin to catch up this fall, when the October 2015 point-of-sale liability shift compels many retailers to make the change at traditional retail outlets.

This means that in the U.S., consumers will have two-years-plus of EMV experience prior to the October 2017 liability shift at the gas pump. By then, it is likely that security conscious customers, who, according to most estimates, make up between 30% and 60% of the shopping public, will have altered their shopping habits to take advantage of EMV-secured locations.

The potential for share loss was highlighted in a front-page story in theWall Street Journal on Sept. 4 stating, “many gas stations will be among the last merchants to install equipment accepting a new generation of fraud-resistant cards.”

 “In global markets that have adopted EMV payment, Gilbarco has seen consumers seek out EMV-enabled dispensers and shift their fueling to locations that they believe to be more secure,” Parker Burke, director of payment and marketing applications at Gilbarco Veeder-Root, told me. “Consumer EMV awareness and adoption will accelerate as broad retail converts through the balance of 2015, and consumers will start seeking out convenience stores that offer EMV security.”

Data from other global markets confirms Burke’s belief. In many countries, “early movers” for both EMV adoption and promotion have seen share increases in both gallons and in-store sales.

 Adding to fuel marketers’ concerns is the wide early adoption expected among retailers who offer fuel as an added traffic generating service: grocers, warehouse clubs, and multi-state c-store retailers with private-label fuel and a focus on foodservice.

If we accept estimates that EMV adoption will constitute just half of fueling sites by 2018, that would still make it easy for already-fickle consumers to find an EMV-enabled option at a nearby corner.

Of course, manufacturers, including Gilbarco, Verifone and Wayne, anticipated the increased demand and have scaled production accordingly. Orders for Gilbarco’s Applause TV offering doubled in June of this year, according to a recent CSP Daily News article. Market intelligence suggests that a much greater percentage of this equipment is going to the types of sites mentioned above–grocery, big box and QSR-focused private brands–than to traditional c-stores and gas stations.

If we can agree that the question on the table is not if, but when, you will upgrade your pumps to EMV, there are two additional factors to consider:

CONTINUED: The Cost of Waiting to Implement EMV

The Cost of Waiting to Implement EMV

The first of these is the risk of increased costs as demand accelerates. Pump manufacturers are communicating the potential of price increases–a consensus estimate being about 4% to 5% per year–starting as soon as 2016.

The industry is already, in some markets, struggling with a shortage of factory-trained technicians to handle installation of new pumps and CRIND EMV retrofit kits. As a result, it’s likely that we’ll see increases in labor costs that may approach double digits as more overtime has to be employed to complete EMV upgrades.

“We are seeing an increase in demand for technicians to both implement POS upgrades and for sites that are starting to upgrade their pumps to be ready for EMV,” said John Keller, vice president at Petroleum Solutions, which facilitates such installations. “All indications are that demand for technicians will significantly increase through 2016 and 2017.”

For convenience store retailers that finance their gas pump upgrades, either through a bank or using dispenser equipment financing, rising interest rates represent a third area of additional cost by waiting until 2017 or 2018. A 1% increase in borrowing costs from your bank or in an equipment-financing agreement can be equivalent to a 2.8% price increase over the term of the loan. The Fed has stated it wants to get rates back to “normal” levels, and a 1% increase in prime in the next year is not out of the question.

These three factors could combine to have an impact on costs for retailers of 15% or more for those who wait until 2018 to move.

Optimizing Marketing Technology On-Site

Another consideration is if your site is optimized for marketing to your customers. In 15 years we’ve evolved from two-line text displays, through monochrome 5-inch displays, to large, full-color displays promoting in-store products, interacting with and entertaining fueling customers.

As you consider what your on-site marketing will look like in 2018, consider these technologies and their impact on consumers, at your or a competing site:

  • TV at the pump, such as Gilbarco’s Applause TV or Wayne’s inOvationTV
  • Upselling products, such as Verifone’s Liftretail and Gilbarco’s Impulse
  • Lottery at the pump
  • Loyalty programs

As more brands launch and promote loyalty programs, being able to execute these offers at the dispenser and in-store becomes critical.

“Gas pumps are assets with a long, useful life, and retailers need to consider their needs for today, as well as their offerings five to 10 years in the future,” Burke said. “Therefore, it is important to ensure that their equipment has the ability to handle marketing applications and other revenue-generating features.”

When thinking about your plans for the coming year, I encourage you to talk with your fuel suppliers and equipment vendors to understand their technology roadmaps. Understanding the complete picture, including the benefits of upgrading and the pitfalls for not doing so, will help you create the best EMV implementation plan for your business.

Author(s): 
Richard Browne

Craft-Beer Brewer Lagunitas Sets Sites on International Markets

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AMSTERDAM — Heineken N.V. has acquired a 50% shareholding in the Lagunitas Brewing Co., the fifth-largest craft brewer in the United States by volume.

Lagunitas owns a stable of award-winning brands, including Lagunitas IPA. Lagunitas IPA is the largest India Pale Ale brand in the United States and has become a benchmark for the category.

The transaction will provide Heineken with the opportunity to build a strong foothold in the dynamic craft-brewing category on a global scale, while it provides Lagunitas with a global opportunity to present its beers to new consumers in a category that is showing international growth opportunities.

Founded in California in 1993, Lagunitas is estimated to sell 1 million hectolitres of beer in 2015 from its two breweries in Petaluma, Calif., and Chicago. A third brewery is currently under construction in Azusa, Calif.

The brewer has a strong track record of growth, with 2012 through 2014 revenue CAGR at 58%. Its other leading brands include A Little Sumpin’ Sumpin’, Daytime, Pils, Sucks, Hop Stoopid and Maximus. Lagunitas has a nationwide presence in the United States, and the brewer has expanded into a number of other markets including the U.K., Canada, Sweden and Japan, offering strong potential for continued growth outside the United States.

In the United States, craft beer continues to outperform the overall beer market and now represents 11% of total volumes. Within the craft segment, IPA is the fastest-growing category. The Lagunitas purchase is Heineken’s first move into the craft-beer subcategory in the United States.

Lagunitas will continue to be led by Tony Magee, its founder and executive chairman, alongside the existing management team, and the company will continue to operate as an independent entity.

The transaction is subject to customary closing conditions and is expected to be completed in the fourth quarter of 2015. Financial terms are not disclosed.

“We are very excited to partner with Lagunitas. We recognize and respect the tremendous success of Tony and his team in building one of the great U.S. craft beer brands,” said Jean-François van Boxmeer, chairman of the executive board & CEO of Heineken. “We look forward to that same team partnering with us to expand Lagunitas globally, so it can reach parts of the world that other craft beer brands have not.”

Magee added, “This venture will create a way for Lagunitas to let Heineken participate in the growing craft-beer category across its global distribution network in places from Tierra Del Fuego and Mongolia to the far-flung Isle of Langerhans. Lagunitas will share in the best-quality processes in the world and enjoy access to opportunities that took lifetimes to build.

“This alliance with the world’s most international brewer represents a profound victory for U.S. craft. It will open doors that had previously been shut and bring the U.S. craft-beer vibe to communities all over the world.”

Smokeless Tobacco Banned in Fenway

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BOSTON & LOS ANGELES — Don’t try enjoying a dip of smokeless tobacco at a Boston Red Sox home game next season, whether a player or spectator, unless you’re prepared to pay a hefty fine. The city has banned smokeless tobacco use in the ballpark beginning April 1, 2016, and Los Angeles is well on the way to doing the same.

Boston joined San Francisco this week in banning smokeless tobacco products in athletic facilities when Mayor Marty Walsh signed an ordinance Wednesday prohibiting the use of tobacco and other tobacco products at baseball parks, from Fenway Park to smaller sports venues.

The ordinance defines smokeless tobacco as any product that contains cut, ground, powdered or leaf tobacco meant to be put in your mouth or nose, according to a Boston Globe report. That means no snuff, chewing tobacco, dipping tobacco, dissolvable tobacco products or snus.

Violators face a $250 fine.

Los Angeles City Council members, meanwhile, took a strong first step Tuesday toward striking smokeless tobacco out of all sports venues in the city.

A motion to ban the use of chewing tobacco and snuff, introduced in June by Councilman Jose Huizar, passed 14-0. It called for the city attorney to draft an ordinance to cover all venues within the city where any organized sport, amateur or professional, is played, including Dodger Stadium.

The council will take a final vote on the measure once the city attorney’s office has prepared the ordinance, which the lawmakers asked for within 30 days. The measure would apply to players, fans and anyone in a sports venue.

It’s expected to be implemented by January, according to a report in the Los Angeles Times.

“Today, the city of Los Angeles joins the ranks of San Francisco and Boston in what is becoming a national effort to knock tobacco out of the park,” Huizar said in a statement. “Smokeless tobacco use in the great American pastime is way past its time. The time to act is now to save others, particularly our young people, from an extremely addictive and potentially deadly product.”

The city already has in place similar bans on smoking and e-cigarettes.

Earlier this year, San Francisco Mayor Ed Lee signed an ordinance eliminating smokeless tobacco at the city’s athletic fields, making it the first city in the nation to enact such a restriction.

Author(s): 
Steve Holtz

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