The History of POA
There have been several associations over the years starting
in the Mid 1970’s when Pepperidge Farm changed the contract from Yellow to
Green for incoming distributors. The new color contract included several
contractual changes. Many distributors were upset about these changes and
started forming associations to combat this, but logistical and financial
constraints lead to their demise. In
1988, the contracts were changed from Green to Blue with more contractual
changes for incoming distributors. In addition, purchasing handheld computers
and Club store deliveries were other hot issues. Again several associations
started to change Pepperidge Farm policy.
In 1987, three associations from NY, NJ, and
California amalgamated to form the current Pepperidge Farm Owners Association
(POA) and held the first national meeting at Maxim in Las Vegas, NV. in May
1988. Walter Mack was elected president. The association fought for
commissions on Price Club stores along with other distributor concerns,
including franchise rights.
Shortly after the first meeting, the
association president, Walter Mack, was disenfranchised by Pepperidge Farm
for alleged service issues. Mr. Mack and took personal legal action against
the company because he felt that this was Pepperidge’s Farm attempt to break
the Association and to make an example of him. Mr. Mack won his termination
suit and was awarded $1,200,000. Shortly after, Pepperidge Farm
Distributors were allowed to service club store accounts.
Annual meetings were held in Las Vegas in
1989 and 1990 and in 1991 the annual meeting was moved to Orlando, Florida.
The 1992 annual meeting was back in Las Vegas
and this time to stay. The 1992 & 1993 meetings were held at the Sam Remo and
were visited by Dominic Sidari– Pepp. Farm Vice President of Sales.
In 1997 Foxwoods Casino in Connecticut hosted
the 2nd attempt for an East Coast Meeting. Due to cost restraints and the
lack of volunteers, East Coast meetings at larger venues were eliminated.
During the 1990’s President Bill Kovaly ran
the association with little support and announced his resignation as
president at the 2000 annual meeting. During 2000-2002 the association
reorganized and in 2003 POA had a new look. Officers, Board of Directors, and
committees were established. Steve Prager was elected present for a two year
term.
Pepperidge Farm also changed during this time
frame as well. Gone were the employees who had positive dealings with the
association. They were replaced with new employees who viewed the association
negatively.
In 2003, current legal counsel, J. Michael
Dady attended the Annual meeting and spent one year researching and
establishing POA positions. In 2004, Mr. Dady contacted Pepperidge Farm with
the Associations positions on certain Pepperidge Farm policy. After one year
of conversations and exchanging written complaints, Pepperidge Farm stated
POA’s positions were invalid and ended any further talks. Pepperidge
Farm’s response led to a unanimous vote at the 2005 annual meeting to file
legal action against the company. Knowing that this was going to take several
years and a large bankroll to support, the association decided to take the
annual meeting on the road. In a period of 6 months the association held 10
‘road show meetings’ for recruitment purposes. These shows have been very
successful in growing the association.
2006 and 2007 were years that the association
was in court (Illinois) litigating our claims. Pepperidge Farm was
successful in a procedural ruling that denies the Pepperidge Farm Owners
Association of litigating on behalf of its members. The judge ruled
that while our claims are valid, the association does not have the ability to
bring forth the suit. It has to be done by individual distributors.
So in late 2007, seven POA members starting
their own lawsuit with the financial backing of the association. This
is a federal case that was filed in the state of Minnesota. This
lawsuit addresses all the allegations made in the previous court filing by
the association
In March 2008, a Federal Judge set the
timeline for the court case to be heard. More info to come.....
Current POA membership includes approximately
700 routes doing $4,000,000 per week! |