http://www.dw-world.de/english/0,336...06_1_A,00.html

The American Way of Aldi


A U.S. business magazine telling Americans to "Buy German?" This strange
but true Forbes headline recently highlighted one of the biggest German
success stories in America: Trader Joe's.

Europeans have long been fans of the no-frills discount bins at Aldi
supermarket stores, which offer everything from champagne to cut flowers at
prices often steeply discounted from those of competitors. But few here are
familiar with Trader Joe's, Aldi's upmarket American discount chain, which
has seen incredible growth in recent decades.

Since 1977, the company has been owned by Theo Albrecht, the billionaire
behind the Aldi Nord supermarket chain. Trader Joe's has more than 200
stores across the U.S. and rings up an estimated $2.1 billion in annual
revenues.


Strike brings boom

The company's fortunes climbed even further this winter, as 75,000 grocery
clerks in Southern California abandoned their cash registers after the state
's largest supermarkets, including Albertson's, Kroger and Safeway, sought
to reduce their health insurance and pensions. Uneager to cross the picket
lines, many consumers poured into their local Trader Joe's instead.

A non-union company, Trader Joe's pays its employees an average of $21 per
hour compared to the $17.90 paid by the union shops. The company also offers
employees health insurance and retirement benefits. Its generous labor
practices and environmentally conscious products offer customers just the
mix it needed to make the jump from larger grocery stores to a smaller shop
with a more refined selection.

Though the company -- owned by the famously reclusive Theo Albrecht, who
with his brother is estimated to be worth $26.5 billion -- is mum when it
comes to discussing finances, Forbes recently estimated that Trader Joe's 74
stores in California have experienced a jump in revenues of 30 percent since
the strike began.


Pleasures from Polynesia and the world

As other cashiers have taken to the picket lines, Trader Joe's workers have
continued ringing up dried fruits, European cheeses, meats and vegetables in
their trademark Hawaiian shirts -- a symbol of the company's casual and laid
back Polynesian style that sometimes makes it feel like more of a hangout
place than den of consumerism.

But the cashiers and products aren't the only thing that differentiate
Trader Joe's from the competition. Like Aldi, more than 80 percent of the
products sold at Trader Joe's are produced by other company's but sold under
the Trader Joe label. The company sells its wares under the Trader Giotto,
Trader Jose, Trader Ming and Trader Jacques brands among others,
representing the store's hefty international lineup of the kinds of goodies
that make foodies drool.

Trader Joe's also partners with wineries to bring high-quality but low-cost
wines to its outlets, like Charles Shaw, otherwise known as "Two Buck
Chuck," which has taken America by storm. Between 20-25 percent of Trader
Joe's products are imported from overseas.

Along with the international selection, the company is equally known for its
superior quality and bargain basement prices. Trader Joe's keeps costs down
by selling fewer products -- 2,500 compared to up to 40,000 at larger
supermarkets.


A different kind of customer

The nautically themed stores, where managers are called captains, also
attract a different kind of customer than the average supermarket. The
German newsweekly Der Spiegel recently described them as "yoga crazed, Bush
opponents or ballerinas." Others have described it as one-stop shopping for
"Bourgeois Bohemians," the socially conscious, well-educated middle class
with income to spare. Describing Trader Joe's clientele, the Los Angeles
Times once wrote: "They're people who protect their tattoos with sunscreen."

The fact that the company steers clear of more controversial foods, like
duck, whose breeders animal rights activists accuse of animal abuse, also
makes it an obvious choice for more socially conscientious customers.

The success of Trader Joe's isn't the only Albrecht success story in the
United States. Aldi itself is a growing brand on the other side of the
Atlantic. Since opening its first store in 1976, Aldi has expanded its
presence to 671 stores in 25 states. According to a 2002 study by the
Agricultural Marketing Resource Center at Iowa State University, Aldi ranked
as the #21 supermarket chain in the U.S., with estimated revenues exceeding
$3 billion annually.

</>

Gregory Morrow wrote:

> http://www.dw-world.de/english/0,336...06_1_A,00.html
>
> The American Way of Aldi
>
> A U.S. business magazine telling Americans to "Buy German?" This strange
> but true Forbes headline recently highlighted one of the biggest German
> success stories in America: Trader Joe's.

That explains why the prosciutto is from Germany.
Very good price, but not the best quality.

Mark Thorson > wrote:
> Gregory Morrow wrote:

>> http://www.dw-world.de/english/0,336...06_1_A,00.html
>>
>> The American Way of Aldi
>>
>> A U.S. business magazine telling Americans to "Buy German?" This strange
>> but true Forbes headline recently highlighted one of the biggest German
>> success stories in America: Trader Joe's.

> That explains why the prosciutto is from Germany.
> Very good price, but not the best quality.

That's strange. I didn't see anything about this on Trader Joe's
web site.

>
>>> http://www.dw-world.de/english/0,336...06_1_A,00.html
>>>
>>> The American Way of Aldi
>>>
>>> A U.S. business magazine telling Americans to "Buy German?" This strange
>>> but true Forbes headline recently highlighted one of the biggest German
>>> success stories in America: Trader Joe's.
>
>> That explains why the prosciutto is from Germany.
>> Very good price, but not the best quality.
>
>That's strange. I didn't see anything about this on Trader Joe's
>web site.

Strange, but true...and news to me too. Pretty sure the reason the Trader Joe
site fails to mention that the chain has been owned since 1979 by a zillionaire
who owns the biggest market chain in Germany is that it flies in the face of
all their corporate PR. You know the schtick - folksy "Fearless Flyers" on
plain old newsprint sent to the consumer by the one and only Trader Joe who
travels the world seeking out the very best bargains on Irish Cheddar and Thai
shrimp. Well, there was a Joe, but he sold out to the Germans in 1979.
They've done a superb job creating the image of the hardworking little guy
challenging the greedy, uncaring chain markets. It really shouldn't make any
difference - but knowing that some German magnate owns the chain doesn't make
me feel warm all over.
NT

Good article. Thanks for posting it here. One error in the story, though.
The sale of Trader Joe's took place in 1988, not '77. The chain's founder,
Joe Coulombe continued to head the company for a year or so afterward during
the transition. Under Albrecht, Trader Joe's has continued its success by
sticking with a proven formula developed from Joe's innovative style and
consumer oriented marketing.

In 1958 Joe acquired a mini chain of convenience stores located around the
suburbs of L.A. Early on, he made no secret that his goal was to carve out a
niche of unique products so that he wouldn't be depending on sales of items
like Coca Cola that every other market sells. Instead of media advertising,
his newsletter, the Fearless Flyer was his primary marketing tool. It was
used in a common sense, sometimes folksy and sometimes humorous way to
educate a generation of customers about wines, foods, cheeses and other
items on his shelves that were highly unfamiliar to consumers in the 1960's
and 70's. At that time most wine drinkers were buying mass marketed brands
like Almaden or Paul Masson. Joe would boldly risk importing huge quantities
of unknown French and other European wines from obscure, cash strapped
wineries and then sell them out at $2-3 with the help from informative
write-ups published in the Fearless Flyer.

After leaving Trader Joes and looking for a new challenge, he tried working
as chief of a struggling retail chain. But things just didn't work out there
because Joe Coulombe just is too much of a maverick and continually locked
horns with the chain's primary owner. He now serves on the boards of Cost
Plus World Markets and Bristol Farms, a small, upscale market chain. Joe
still maintains his passion for wine. He shares his findings, his travels
and musings through his web site: www.winejoe.com



"Gregory Morrow" > wrote in message
ink.net...
>
> http://www.dw-world.de/english/0,336...06_1_A,00.html
>
> The American Way of Aldi
>
>
> A U.S. business magazine telling Americans to "Buy German?" This strange
> but true Forbes headline recently highlighted one of the biggest German
> success stories in America: Trader Joe's.
>

On Sat, 17 Jan 2004 00:48:15 +0000, sta wrote:


> That's strange. I didn't see anything about this on Trader Joe's web
> site.

I looked at the website and it doesn't surprise me. Chipotle went to great
lengths to keep quiet about the McDonald's ties under wraps. It's hard to
be counter-culture when you're owned by The Man.

(see also: Ben & Jerry's and Unilever)



--
-Brian James Macke
"In order to get that which you wish for, you must first get that which
builds it." -- Unknown

On 17 Jan 2004 00:48:15 GMT, wrote:

>Mark Thorson > wrote:
>> Gregory Morrow wrote:
>
>>> http://www.dw-world.de/english/0,336...06_1_A,00.html
>>>
>>> The American Way of Aldi
>>>
>>> A U.S. business magazine telling Americans to "Buy German?" This strange
>>> but true Forbes headline recently highlighted one of the biggest German
>>> success stories in America: Trader Joe's.
>
>> That explains why the prosciutto is from Germany.
>> Very good price, but not the best quality.
>
>That's strange. I didn't see anything about this on Trader Joe's
>web site.

Why should you? Or why should they post? Tracing the ownership of
nearly any corporate entity these days is pretty tricky. Let's see,
KFC (once Kentucky Fried Chicken before 'fried' became non-PC) was
franchised by the 'Colonel', taken over by Pepsico, and is now a part
of Yum!, whatever *that* is. Recent pizza discussion included
political objections to its former owner. I doubt the founders/owners
of Banana Republic are/were Honduran.

"Sam D." > wrote in message
...
: Good article. Thanks for posting it here. One error in the
story, though.
: The sale of Trader Joe's took place in 1988, not '77. The
chain's founder,
: Joe Coulombe continued to head the company for a year or so
afterward during
: the transition. Under Albrecht, Trader Joe's has continued its
success by
: sticking with a proven formula developed from Joe's innovative
style and
: consumer oriented marketing.
:
: In 1958 Joe acquired a mini chain of convenience stores located
around the
: suburbs of L.A. Early on, he made no secret that his goal was
to carve out a
: niche of unique products so that he wouldn't be depending on
sales of items
: like Coca Cola that every other market sells. Instead of media
advertising,
: his newsletter, the Fearless Flyer was his primary marketing
tool. It was
: used in a common sense, sometimes folksy and sometimes humorous
way to
: educate a generation of customers about wines, foods, cheeses
and other
: items on his shelves that were highly unfamiliar to consumers
in the 1960's
: and 70's. At that time most wine drinkers were buying mass
marketed brands
: like Almaden or Paul Masson. Joe would boldly risk importing
huge quantities
: of unknown French and other European wines from obscure, cash
strapped
: wineries and then sell them out at $2-3 with the help from
informative
: write-ups published in the Fearless Flyer.
:
: After leaving Trader Joes and looking for a new challenge, he
tried working
: as chief of a struggling retail chain. But things just didn't
work out there
: because Joe Coulombe just is too much of a maverick and
continually locked
: horns with the chain's primary owner. He now serves on the
boards of Cost
: Plus World Markets and Bristol Farms, a small, upscale market
chain. Joe
: still maintains his passion for wine. He shares his findings,
his travels
: and musings through his web site: www.winejoe.com
:
:========

Cool info Sam! Thanks for posting.


--
Cyndi
<Remove a "b" to reply>

>From:

>but knowing that some German magnate owns the chain doesn't make
>me feel warm all over.

What does disturb me is that they don't have store placement in Florida, where
a plethora of German tourists abound.

Oh and I live there too. Grrrrrr....what I would give for a good shopping trip
to TJ's!!!

Ellen

"SportKite1" > wrote in message
...
: >From:
:
: >but knowing that some German magnate owns the chain doesn't
make
: >me feel warm all over.
:
: What does disturb me is that they don't have store placement in
Florida, where
: a plethora of German tourists abound.
:
: Oh and I live there too. Grrrrrr....what I would give for a
good shopping trip
: to TJ's!!!
:
: Ellen
:=======

Yep. I live a couple of hours away from a TJs and finally went
for the first time a couple of months ago! Even little Nathan
was thrilled to pieces to get to go there. What a neat
mini-adventure. Nathan's biggest thrills we
1. To sample Coffee.
2. To have a piece of candied cherry with chocolate.
3. A balloon!!

Ahhh, the simple life of a 4 y/o.

Are there any Aldi's in Florida, yet? I didn't see any when I
was down last month. Have they ever been the greatest thing for
our grocery budget! It sure made helped us so that I could be a
SAHM for the first few years! I/we couldn't have done it without
them.

--
Cyndi
<Remove a "b" to reply>

On Fri, 16 Jan 2004 23:37:21 -0800, "Sam D."
> wrote:

>Good article. Thanks for posting it here. One error in the story, though.
>The sale of Trader Joe's took place in 1988, not '77. The chain's founder,
>Joe Coulombe continued to head the company for a year or so afterward during
>the transition. Under Albrecht, Trader Joe's has continued its success by
>sticking with a proven formula developed from Joe's innovative style and
>consumer oriented marketing.

I thought it was later than the original story said it was. I know
when I first started going to Trader Joes back in the 80s, it wasn't
so homogenized. Sometimes one went there and found something and if
you didn't get it then you never knew if it would be gone by the time
you got back. All sorts of wonderful finds back then, sometimes
sporadic.
And good cheap wines from France: I remember a wealth of them. And
really good cheese, a lot better than compared to what they have now.

Some things they have continued to carry from the very early days. I
think they know if they mess with those products, they will have a
revolt on their hands.

Christine

>From: "Rick & Cyndi"

>Are there any Aldi's in Florida, yet?

No ;(

This county sux for good shopping. No wonder I never leave the island.

Ellen

"Rick & Cyndi" > schrieb:
>
>Are there any Aldi's in Florida, yet?

See for yourself:

http://www.usa.aldi.com/store_01/index.html


Be aware - Trader Joe´s belongs to Theo Albrecht, who owns Aldi Nord,
but Aldi USA is an enterprise run by Karl Albrecht of Aldi Sued. They
are absolutely separated from each other.

Rumour is going that a few products in Aldi Nord are labeled with the
TJ tag, like California nuts and plums - I can´t confirm it, my home
is a Aldi Sued zone.

The legend goes that the two broke up when Theo Albrecht started
selling cigarettes in the stores - something that didn´t happen in the
south part of that store empire until recently.

But the division is actually more for fiscal reasons.

Gruss, Roman

"Christine Dabney" > wrote in message
...
>
> I thought it was later than the original story said it was. I know
> when I first started going to Trader Joes back in the 80s, it wasn't
> so homogenized. Sometimes one went there and found something and if
> you didn't get it then you never knew if it would be gone by the time
> you got back. All sorts of wonderful finds back then, sometimes
> sporadic.

The uncertainty undoubtedly caused some disappointments but it also made for
some adventurous and fun food shopping because there were always new and
different items arriving to replace the ones that had sold out and would no
longer be available. They still feature temporary deals and close-outs but
the product line is a lot more stable now than it used to be.

> And good cheap wines from France: I remember a wealth of them. And
> really good cheese, a lot better than compared to what they have now.

That was actually due to a good result from a bad law.

Prior to 1975, we had the so-called "Fair Trade" laws which allowed
wholesalers to dictate uniform minimum retail prices on their products.
Merchants were thus prohibited from engaging in price competition on these
goods. This was common practice in many industries including the wine
business. That was one of the major reason why Trader Joe's began importing
and promoting European wines and other products. It was a way of offering
customers some outstanding values while allowing Trader Joe's to avoid the
restrictive sales conditions imposed on most domestic wines at that time.
After the "Fair Trade" laws were ended, Trader Joe's began gradually leaning
more toward domestic suppliers that fit into their profile.

"Roman J. Rohleder" > wrote in message
...
: "Rick & Cyndi" > schrieb:
: >
: >Are there any Aldi's in Florida, yet?
:
: See for yourself:
:
: http://www.usa.aldi.com/store_01/index.html
:
:
: Be aware - Trader Joe´s belongs to Theo Albrecht, who owns Aldi
Nord,
: but Aldi USA is an enterprise run by Karl Albrecht of Aldi
Sued. They
: are absolutely separated from each other.
:
: Rumour is going that a few products in Aldi Nord are labeled
with the
: TJ tag, like California nuts and plums - I can´t confirm it, my
home
: is a Aldi Sued zone.
:
: The legend goes that the two broke up when Theo Albrecht
started
: selling cigarettes in the stores - something that didn´t happen
in the
: south part of that store empire until recently.
:
: But the division is actually more for fiscal reasons.
:
: Gruss, Roman
======

Thanks Roman. Nope. None in Florida but maybe there's hope
since they are in Georgia! Maybe by the time we're ready to move
down there an Aldi's will be waiting for me!

--
Cyndi
<Remove a "b" to reply>

SportKite1" > wrote in message
...
: >From: "Rick & Cyndi"
:
: >Are there any Aldi's in Florida, yet?
:
: No ;(
:
: This county sux for good shopping. No wonder I never leave the
island.
:
: Ellen
:
: ==========

Bummer!! I tell ya, as much as our relatives are beating us
down, trying to get us to move down there... I'd really have a
tough time leaving Aldi's. I realize that the "Shop n Save"
stores are supposed to be similar in concept and prices... but
they just aren't the same.

Cyndi

"Rick & Cyndi" > schrieb:

>Thanks Roman. Nope. None in Florida but maybe there's hope
>since they are in Georgia! Maybe by the time we're ready to move
>down there an Aldi's will be waiting for me!

Did I mention that there are 6 Aldis within 3km around my flat? ;-)

I know they are expanding... how do people react to the limited range
of articles?

Gruss, Roman

"Roman J. Rohleder" > wrote in message
news : "Rick & Cyndi" > schrieb:
:
: >Thanks Roman. Nope. None in Florida but maybe there's hope
: >since they are in Georgia! Maybe by the time we're ready to
move
: >down there an Aldi's will be waiting for me!
:
: Did I mention that there are 6 Aldis within 3km around my flat?
;-)
:
: I know they are expanding... how do people react to the limited
range
: of articles?
:
: Gruss, Roman
=========

I used to live about 2 miles from one before we moved (3 years
ago). My guess now is that within 10-15 miles there are 3 or 4
Aldis and then another 2 about 10 miles from those.

Limited range of articles? Meaning not as stocked as a regular
retail grocer? Or limited locations? I don't understand your
question.

As I have said before - Aldi's has certainly saved us as far as
our budget goes. We would have been severely hard-pressed to
have remained a single income family these last few years.

--
Cyndi
<Remove a "b" to reply>

"Rick & Cyndi" > schrieb:

>I used to live about 2 miles from one before we moved (3 years
>ago). My guess now is that within 10-15 miles there are 3 or 4
>Aldis and then another 2 about 10 miles from those.

Oh, you are not in the US? I study in Kaiserslautern, and the
discounters seems to well accepted in the american community there..

>Limited range of articles? Meaning not as stocked as a regular
>retail grocer? Or limited locations? I don't understand your
>question.

The limited stock of 600 - 900 items.

It took Aldi a while to become "accepted" in Germany, but a shattered
economy is their best friend. They have expansion plans in Germany and
abroad and the EU expansion in May is another chance for the two
brethren.

>As I have said before - Aldi's has certainly saved us as far as
>our budget goes. We would have been severely hard-pressed to
>have remained a single income family these last few years.

Same with me... as a student, I learned to like them.

Gruss, Roman

Another interesting observation about Trader Joe's. They seem to have a
policy of only hiring Americans who can actually speak English! How
refreshing in Los Angeles, the immigrant capital of the U.S......and I
mean that quite sincerely.


Sam D. wrote:

>Good article. Thanks for posting it here. One error in the story, though.
>The sale of Trader Joe's took place in 1988, not '77. The chain's founder,
>Joe Coulombe continued to head the company for a year or so afterward during
>the transition. Under Albrecht, Trader Joe's has continued its success by
>sticking with a proven formula developed from Joe's innovative style and
>consumer oriented marketing.
>
>In 1958 Joe acquired a mini chain of convenience stores located around the
>suburbs of L.A. Early on, he made no secret that his goal was to carve out a
>niche of unique products so that he wouldn't be depending on sales of items
>like Coca Cola that every other market sells. Instead of media advertising,
>his newsletter, the Fearless Flyer was his primary marketing tool. It was
>used in a common sense, sometimes folksy and sometimes humorous way to
>educate a generation of customers about wines, foods, cheeses and other
>items on his shelves that were highly unfamiliar to consumers in the 1960's
>and 70's. At that time most wine drinkers were buying mass marketed brands
>like Almaden or Paul Masson. Joe would boldly risk importing huge quantities
>of unknown French and other European wines from obscure, cash strapped
>wineries and then sell them out at $2-3 with the help from informative
>write-ups published in the Fearless Flyer.
>
>After leaving Trader Joes and looking for a new challenge, he tried working
>as chief of a struggling retail chain. But things just didn't work out there
>because Joe Coulombe just is too much of a maverick and continually locked
>horns with the chain's primary owner. He now serves on the boards of Cost
>Plus World Markets and Bristol Farms, a small, upscale market chain. Joe
>still maintains his passion for wine. He shares his findings, his travels
>and musings through his web site: www.winejoe.com
>
>
>
>"Gregory Morrow" > wrote in message
link.net...
>
>
>>http://www.dw-world.de/english/0,336...06_1_A,00.html
>>
>>The American Way of Aldi
>>
>>
>> A U.S. business magazine telling Americans to "Buy German?" This strange
>>but true Forbes headline recently highlighted one of the biggest German
>>success stories in America: Trader Joe's.
>>
>>
>>
>
>
>
>