C.A. Fortune Newsletter- May/June 2017

Newsletter May/June 2017 Volume 5 - Issue 4

C.A. Fortune Announcements Vol. 5 - Issue 4 Inside This Issue CAF Announcements 2-4 Distributor News 4-7 Industry News 7-10 Consumer Trends 11-14 Retailer News 14-26 Shows & Events 27

C.A. Fortune Completes National Coverage May 19th was a special day for the C.A. Fortune organization! Three years and eleven months from the initial acquisition of C.A. Fortune in June of 2013, followed by seven additional transactions, we’re beyond thrilled to announce the final piece of the puzzle to our complete national coverage.

Bridge Sales & Marketing, a Portland-based, full service sales & marketing agency, providing complete Pacific Northwest coverage, is the latest group to join C.A. Fortune. Founded in 2001, the organization led by Doug & Marcia Brynelson, was a perfect fit for our remaining “white space,” as we continued down our similar path, actively targeting the best agency in market. Bridge is a culture rich firm, filled with deep-rooted relationships across all customers covering the states of Washington, Oregon, Idaho, Montana, & Alaska. In addition, and undoubtably the initial draw for us, was their exceptional reputation for servicing their client partners - both emerging brands and well established, mature businesses.

With the inclusion of Bridge Sales & Marketing, effective May 2017, C.A. Fortune now proudly provides full-service coverage in all 50 U.S. states, all privately owned and operated under one entity.

NEW COVERAGE MAP:

Contact Headquarter Office 1831-A Howard St. Elk Grove Village, IL 60007 630.539.3100

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As our track history would entirely defend, the Bridge team will remain fully in-tact, along with key strategic investments we’ll be making into the market within the first 30 days. Doug & Marcia will assume key roles within our Client Development & Account Management teams serving the Pacific Northwest, in addition, continue in their current capacity as being extremely engaged with our new local customer partners. As always, we fully expect a completed integration over the next 30 days, if not sooner. continues next page...

C.A. Fortune Announcements C.A. Fortune Completes National Coverage cont...

Sitting back reflecting on the past 3+ years and the journey we’ve been on together, it’s appropriate to take a moment and distribute gratitude for all those that played a beyond vital role in enabling a day like today to come to fruition. From business partners (Brad Carlin, Jeff Mahler, & Tony Ferolie) who have always supported our aggressive vision & strategic business plan from the very beginning, to Ken Rzeszutko, Tony Ferolie, Galen & Lorie Fowler, Bob & Christine Wingfield, Rose Pierro, Rachel & James Robb, Dan Mullen, and now Doug & Marcia Brynelson (and your respective teams) for believing in the mission we’re on and ultimately deciding to jump onboard, to our 300+ plus team members (and your families) across the country who have personally inspired me each and every day, to most importantly, our client and customer partners for their unparalleled support and patience as we’ve built out what we confidently believe is the best-in-class national sales & marketing agency, across the Natural/Organic, Specialty/Conventional, and Bakery/Deli trade channels.

While we celebrate this special moment, please know and trust, our commitment to the future has never been greater. We will continue to make all necessary strategic investments to assure the C.A. Fortune brand continues to exceed any and all expectations, you, our client and customer partners have for us. We will stop nothing short!

We may be national in scope now, however the intimate, boutique service level you’re used to, will always reside at the forefront of who we are!

Please join us in celebrating not only the addition of Bridge Sales & Marketing to the C.A. Fortune family, but what today marks in the history of C.A. Fortune. We’re proud, humbled, and eternally grateful for your partnership!

C.A. Fortune & Carlin Group: Women’s Network Feed My starving Children, Philanthropy Event On Wednesday, May 31st the organization’s Women’s Network partnered with volunteer organization, Feed My starving children.

Feed My Starving Children (FMSC) was founded in 1987, and is a Christian non-profit that provides nutritionally complete meals specifically formulated for malnourished children. Donations given by people fund the meal ingredients. Volunteers hand-pack the meals and then are donated to FMSC food partners around the world, where kids are fed and lives are saved!

The women representing both C.A. fortune and Carlin Group packed 92 boxes, containing 19,872 meals. This will feed 54 children for a whole year and additionally has an estimated value of $4,371.84! Thank you to the women who attended and represented the organization. This event was nothing short of a success and inspirational!

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C.A. Fortune Announcements If You Think Their Hands Are Full, You Should See Their Hearts this past month Dwight Richmond (V.P. Sales, Natural Channel) and his wife adopted their third child! They adopted Abigail Joy from Shanghai, China. She is seven years old. Abigail has a rare genetic disorder called Turners Syndrome. Dwight says his family felt complelled to help her as his wife has the same genetic disorder, and is very well suited to her as she grows.

Abigail is their third child. The Richmond family has adopted two other children previous from China in 2015. Billy and Lela who were also seven at the time of adoption, are now ten.

Congratulations to Dwight and his family on their newest addition, Abigail Joy!

Please Join Us in Welcoming C.A. Fortune’s National Account Manager, Patricia Evans As a result of the continued evolution of Whole Foods, coupled with our strategic plan to enhance our leadership position in Austin, we’re thrilled to announce an additional member to our natural channel leadership team.

Starting July 6th, Patricia Evans will join C.A. Fortune as our National Account Manager, leading our Whole Foods business nationally. Based in Austin,TX., Trish has been deeply rooted in the natural food industry the past 15 years. She will come aboard having served the last 13 years with Whole Foods Market, in various capaities ranging from time spent in-store, to their regional offices, to most recently, global headquaters. Prior to Whole Foods, she spent two years within the sales & marketing agency industry, leading Natural Specialty Sales’ southeast natural channel team.

During her tenure at global, Trish has played an integral leadership role within category management across the dairy, grocery, and exclusive brands categories.

As our National Account Manager, Trish, who will report directly to me, will not only lead our efforts at global, but oversee our 11 Whole Foods Account Managers across the country, who will continue to manage their respective regions. Carl Gerke, a current member of our Whole Foods team, will be shifting his focus towards developing the growing natural channel independent business in and around central and southern Texas.

Please welcome Trish to the C.A. Fortune family, as we’re eager to get her going!

More details to come soon...

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Distributor News KeHE Wraps up 2017 Holiday Show KeHE Distributors welcomed more than 4,500 industry professionals to the Minneapolis Convention Center on June 12-13 for the 2017 Holiday Show, featuring products from more than 700 exhibitors that will be trending during the upcoming holiday season.

“Industry leaders trust KeHE to deliver innovative natural, organic, specialty and fresh products and the hottest trends every selling season,” says Brandon Barnholt, president and CEO, KeHE. “We are proud to continue to connect thousands of retailers, suppliers and brokers with the dynamic products, educational presentations and deals showcased at KeHE’s annual Holiday Show.”

New for the 2017 Holiday Show: - Themed Winter Wonderland, more than 5,000 square feet of Fresh products included a mimosa bar, ambient cheese displays, and holiday cooking demonstrations by Chef Jeff Rossman.

- At the OnTrend Pavilion, retailers learned about new products and trends driving the industry for the biggest selling season of the year.

- New offerings from more than 130 brands were featured in the New Products Showcase, highlighting items from Certified B Corp vendors and KeHE’s CAREtrade™ partners. The innovative showcase included a competitive tasting event and a panel of retailers sampled and selected the top products:

- Best of Show - Maya Kaimal Green Garbanzo Dip

- Best of Beverages - CAcafe Coconut Coffee

- Best of Center Store - Foodstirs Organic Chocolate Lovers Brownie Mix

- Best of Fresh or Frozen - Vital Farms Al Fresco Butter

- Best of Non-Grocery - Kuli Kuli Greens

- Best of Snacks - Jackson’s Honest Coconut Oil Maple Cinnamon Tortilla Chips The show opened with Mr. Barnholt’s President’s Address, providing insight for an evolving marketplace. In a keynote presentation, global futurist Jack Uldrich explored the impact of big data, social media, robotics, biotechnology, nanotechnology, artificial intelligence and renewable energy on the food industry.

Following the show, KeHE donated 54,161 pounds of food products to the Society of St. Vincent de Paul in Minneapolis. The next Holiday Show will be held June 13-14, 2018 in Chicago.

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Central Grocers’ $205M Ch. 11 DIP, Sale Plan Approved With a fight to move its case to Chicago looming, bankrupt Central Grocers Inc. secured tentative final approval in Delaware on Friday for a $205 million debtor-in-possession loan needed to carry the business through a sale of all remaining assets and stores.

U.S. Bankruptcy Judge Laurie Selber Silverstein authorized the loan, subject to attorney submission of a final version of the document, after extended debate over administrative claims for prepetition suppliers and waivers of surcharges on secured creditors to cover the cost of the case. continues next page...

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Industry News Central Grocers’ $205M Ch. 11 DIP, Sale Plan Approved cont...

The company’s official committee of unsecured lenders had objected to terms of the loan, administered by PNC Bank N.A., as oppressive. The group withdrew its opposition after a series of concessions that included a $100,000 increase in the committee’s investigation budget and changes to some provisions for bidding and committee recoveries through litigation.

“There is no practical ability to obtain post-petition financing on a priming basis, leaving debtors’ prepetition secured lenders as the only viable source of funding,” Central Grocers attorney Stephen Karotkin of Weil Gotshal & Manges LLP said. “I think the only practical alternative is conversion of these cases to Chapter 7.”

Central Grocers filed for Chapter 11 on May 4 without approved financing agreements in place, after an involuntary bankruptcy petition launched by creditors in Illinois forced the grocery supply cooperative to seek immediate protection.

Much of the dispute Friday centered on a DIP lender requirement for a waiver of debtor surcharges against its security to pay for preserving or disposing of the company’s assets, as well as uncertainty over payments to those with claims for goods supplied to the company before it sought Chapter 11 protection.

“The question for us today is not when they’re going to get paid, it’s if they’re going to be paid at all,” said Aaron Stulman of Whiteford Taylor Preston LLC, attorney for Smucker Retail Foods Inc. Susan E. Kaufman, attorney for United Food & Commercial Workers International Union Local 1546, also questioned the adequacy of provisions for paying and sharing administrative expenses.

“Unless and until there’s a handle on what the total administrative expenses are, we think there’s a real chance for administrative insolvency in the case,” Kaufman said.

Howard L. Adelman, attorney for the United Food and Commercial Workers Unions and Employers Midwest Pension Fund, said administrative expenses and provisions for pension fund contributions are an “elephant in the room,” amounting to an $86 million claim in the case of his organization.

Adelman’s group is also seeking transfer of the Delaware case to the U.S. Bankruptcy Court for the Northern District of Illinois, Eastern Division, near where the company is based.

PNC attorney Regina S. Kelbon of Blank Rome LLP said that the DIP lenders have made substantial concessions already, and have not received information regarding some of the claims or evidence of administrative insolvency.

“I think that it’s a condition to our financing,” Kelbon said of the waiver protections. “It’s part of the whole framework of how we proceed. We know what we’re being asked to fund. Otherwise, we’re faced with liquidation.”

Judge Silverstein later approved the waiver for the DIP lenders, after acknowledging concern about the uncertainty for prepetition suppliers but noting that a successful sale was the best way to assure payment of administrative creditors. continues next page...

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Industry News Central Grocers’ $205M Ch. 11 DIP, Sale Plan Approved cont...

The court also approved bid procedures for the sale of at least 19 Central Grocer sites best positioned to survive.

Another 14 Strack and Van Til Super Market Inc. locations in the northern Indiana region are being wound down.

Jewel Food Stores Inc. has already proposed to act as a bidder-to-beat stalking horse with a $100 million offer for 19 stores, together with their inventories. A sale also is in the works for a 1 million-square-foot modern warehouse, 53-acre headquarters site and other assets.

Jewel included a July 11 deadline for a sales order in its offer for the company. Other stalking horse offers will be considered if made, the company said, with bids to be received until June 26 and an auction set for June 29 if required.

A sale hearing will be held on June 28 if no auction is required, or on July 10 if multiple bids are received or if additional assets are included in the deal.

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Industry News The FDA Will Launch a Campaign to Educate the Public About GMOs As part of the budget deal that prevented a government shutdown last week, the FDA will fund a new campaign to combat what they perceive as misinformation about GMOs in our food.

The budget deal gave the FDA $3 million dollars to provide “consumer outreach and education regarding agricultural biotechnology,” which includes information on genetically engineered food. They’ll supposedly use the money to try to show the positive side of GMOs—which make up 80 percent of maize and soybean crops planted in the U.S.—including their “environmental, nutritional, food safety, economic, and humanitarian impacts.”

In April of last year, more than 50 food industry groups signed a letter expressing their support for the proposed campaign, hoping that it would “better inform the public about the application of biotechnology to food and agricultural production,” arguing that “all major scientific bodies, including all federal health agencies, have said that genetically engineered foods are safe.”

There was a plenty of pushback against the campaign before this budget passed: State Representative Nita M. Lowey of New York argued that a community outreach program of this kind would be nothing more than a state-funded propaganda campaign for the GMO industry.

It’s still unclear what kind of educational programs the FDA plans to implement, or even when they will launch, but the parameters are broad for what they’re allowed to do: All they’re required to do is collaborate with the Department of Agriculture, and distribute “science-based educational information,” to the public. continues next page...

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Industry News The FDA Will Launch a Campaign to Educate the Public About GMOs Cont...

There does seem to be a gap between the public and scientific perception of GMOs: Pew found that 88 percent of members of the American Association for the Advancement of Science agree that GMOs are safe to eat. Only 37 percent of the American public agrees.

But the politicians who advocate for this campaign aren’t just looking to inform the public—they have their own interests in mind, too: Take State Representative Robert B. Aderholt, a Republican from Alabama. His campaign received $10,000 from Monsanto in 2016, a company that would greatly benefit from a public more open to eating genetically modified food.

Even if GMOs are safe to eat, they still have problems. For instance, soy farmers who plant genetically modified crops use 28 percent more herbicide than those who don’t. And last October, a thorough New York Times report found that GMO crops don’t significantly increase food production, as promised.

Now that the federal government has taken a clear side on the complex debate over whether or not GMOs are helping our economy and our health or not, it seems as though we can look forward to a future shaped by genetically engineered products—whether we’re ready for them or not.

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This startup offers to fill your cart like a ‘fairy godmother and personal nutritionist’ in one

Two San Francisco companies have partnered to deliver groceries customized to the health needs of their Sacramento-area customers.

Instacart, on Friday began teaming up with personalized nutrition service provider PlateJoy to offer same-day delivery of groceries tailored to individual nutrition requests. Instacart launched its internet-based grocery-delivery service in the Sacramento area in March, reaching about 360,000 residents.

PlateJoy spent three years developing technology that takes an individual’s nutrition data and goals and formulates personalized weekly menus and shopping lists. PlateJoy said it employs 50 data points for individual preferences and health goals to determine what users should be eating to reach those goals. Recipes and shopping lists are tailored to each customer, who enter their information via the PlateJoy website.

Access to a “personal nutrition coach” also is part of the deal. PlateJoy’s “digital pantry” monitors the items users currently have in their kitchens, with a goal of cutting down on food waste. continues next page...

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Industry News This startup offers to fill your cart like a ‘fairy godmother and personal nutritionist’ in one cont...

The collaboration with Instacart enables PlateJoy users to order customized groceries seven days a week via Instacart’s delivery service from area stores that include the Sacramento Natural Foods Co-op, Safeway and Costco.

“With 70 percent of the country overweight or obese and food allergies increasing by 50 percent over the last 10 years, we now know that what you eat directly affects how you feel,” said Christina Bognet, the 29-year-old CEO who founded PlateJoy three years ago. “Translating that knowledge into making the right choices at the grocery store is hard. Combining grocery delivery with a nutrition product is the natural next step in helping people make healthy decisions when they’re short on time.”

Bognet’s background goes beyond the classic technology-mogul-under-30 story. Back in 2009, she was finishing up her junior year in pre-med at the Massachusetts Institute of Technology and became alarmed that unhealthy food choices had put her in the obese weight range. She recalled from her studies in neuroscience and biology that most diets fail, and she also realized that she was eating too much take-out food and fattening desserts.

Her solution was to have “fresh, healthy food on hand at all times,” prompting her to eat more-nutritious meals.

She subsequently lost 50 pounds and hatched the template for what would become PlateJoy. Now she says the PlateJoy-Instacart collaboration “is the equivalent of your fairy godmother and your personal nutritionist grocery shopping for you every week, magically placing the right things in your fridge and sending recipes and nutritional support to your phone.”

The PlateJoy-Instacart service was tested in 20 cities nationwide in 2016 and is now spreading to Sacramento and other markets. That effort has been helped along by $400 million in new, recently announced funding for Instacart.

The partnership competes directly with providers such as New York-based Blue Apron Inc., which delivers millions of meals monthly nationwide. Officials of both Instacart and PlateJoy acknowledge the success of similar startups but believe their emphasis on tight packaging, a wide variety of foods and accommodating specific health and dietary needs will help the partnership stand out from the crowd.

In its Sacramento-area launch in March, Instacart said its doorstep deliveries included groceries from Safeway, Whole Foods Market, Costco, Petco, Smart & Final and Cash & Carry, servicing residents in in Sacramento, West Sacramento, Rocklin, El Dorado Hills, Folsom, Fair Oaks, Rancho Cordova, Roseville and Citrus Heights.

PlateJoy users pay $69 for six-month membership access to services that include customized food recommendations, cooking instructions and access to a nutritionist.

Instacart fees start as low as about $4 for non-rush orders, but higher fees are based the size of the order and delivery time. The company also offers “Instacart Express” packages geared to regular users of deliveries of more than $35. This fee is in addition to the PlateJoy membership.

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Industry News Caffeinated Bagels Providing Big Buzz at this Popular Chain Need an energy boost in the morning? Eat a caffeine-laced bagel.

Einstein Bros. Bagels unleashed its Expresso Buzz Bagel in select locations.

The bagel, with 32 milligrams of caffeine and 13 grams of protein, is “an excellent source of iron and good source of magnesium,’’ according to the Colorado-based bagel maker.

You don’t have to be an Einstein to realize one of these bagels will jump-start your day like no bagel or breakfast sandwich out there. Add coffee to the mix, and you’ll even stay awake during that daily board meeting.

(The average amount of caffeine in an eight-ounce cup of coffee is about 95 mg. A 16-ounce cup of McDonald’s coffee contains 145 mg. of caffeine).

The Espresso Buzz Bagel is one of six Boosted Bagels being introduced at Einstein Bros. Bagels. There’s its cousin, the Espresso Buzz Bagel & Bacon, with brown sugar thick-cut bacon, cheddar and butter.

Then you have the Savory Parm Bagel, with mushrooms, and the Hot Parm & Bacon Bagel, with bacon and a “warm parmesan schmear.’’

The other two Boosted Bagels are the Cherry Chia Bagel, with cherries, chia and oats, and the Cherry Chia Ham and Swiss, with smoked ham, Swiss and butter.

The new bagels have been nine months in development.

“We have watched the coffee category expand and adapt as Millennials converted to coffee drinkers, attracted by the smoother flavor and artisanal characteristics and third- and fourth-wave coffee,” Kerry Coyne, Einstein’s senior vice president and head of marketing and research and development, told Fox News.

“We knew our culinary team could deliver that same premium, hand-crafted sensory experience with the beloved category hero of espresso in our best-in-class, fresh-baked bagel,” he added.

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Consumer Trends Nurturing a $127 Billion Business Opportunity in Specialty Food A 2017 report by the Specialty Food Association (SFA) indicates that the specialty food category represents $127 billion, up 15 percent since 2014[i]. Specialty foods are outpacing their non-specialty counterparts in nearly every category. And consistent with current trends, categories aligned with health and wellness and fresh are growing fastest.

It’s true – the median sales per square foot for a specialty store average $6.47 more than a conventional supermarket, playing to the fact that shoppers are taking fewer overall trips to the grocery store and are migrating to other channels for pantry loading or specialty items. The demand wave is surging; and we know from our work in the private brands that the opportunity to attract loyal customers should not come with a compromise on product quality or safety.

FMI and SFA announced an agreement aimed at broadening the scope and availability of new products in the food retail marketplace that ensures proper food safety business planning and standards. This new association alliance will bring new insights, create opportunities for business development, and offer education to specialty suppliers through food safety training services.

Suppliers remain the core to our businesses, and having safe, reliable, product sources is what consumers expect and deserve. Consumers are also expecting new, exciting, and local products to try, which can be particularly challenging when it comes to food safety. In this global, local, and big branded sourcing world, identifying suppliers – large or small – that have a solid foundation for food safety is not an easy task.

As your association, we recognize a need to nurture these nascent companies and give them the tools to be successful and reliable business partners. With the growing list of emerging issues and regulatory requirements seemingly changing each time we open an email – whole genome sequencing, Listeria outbreaks, Food Safety Modernization Act deadlines and allergen recall alerts – so too are the changes that impact suppliers, brands and the culture of food safety embedded in our companies.

I look forward to Robert Garfield, chief food safety assessment officer & SVP, Food Marketing Institute, and head of SQFI, to address the upcoming SFA Fancy Food Show in New York, June 26th on the topic of the Future of Food Safety. He will discuss the impact of food safety disruptors on food retail businesses and their suppliers. In addition, our food safety team will host a Food Safety Lounge to help specialty food manufacturers and retailers navigate options for food safety programs and compliance.

Food safety is fundamental for food retailers, so we look forward to delivering on our promise for increased resources and opportunities with SFA in the years ahead.

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Consumer Trends A Snapshot of Today’s Natural/Organic Shopper While natural and organic products have seen significant growth, the profiles and motives of today’s shoppers in the category are drastically different from less than a decade ago.

The latest Hot Topic report, “Back to Our Roots: The Rise of the Natural/Organic Shopper,” from Jacksonville, Fla.-based CPG marketing agency Acosta, explores modern-day natural/organic shoppers, including what they’re buying and from where, why they purchase these foods, and how they get information about the products’ ingredients and processes.

Perhaps most significant for retailers is that most age groups favor purchasing natural and organic products at traditional grocery stores, although Millennials have shown an affinity for the value channel.

“Not so long ago, shoppers interested in natural and organic food had to seek out specialty stores to find the items they wanted,” said Colin Stewart, Acosta SVP. “Now, not only has the growing popularity of non- or minimally processed food fed the rise of major specialty retailers, it is also transforming product development and grocery retail across various channels as the profiles of natural and organic shoppers evolve.”

The report takes an in-depth look at these shopper profiles, highlighting the following:

1. Who are Natural/Organic Shoppers?

It’s not surprising that Millennials are helping to drive the natural/organic trend, but GenXers and families also play a large role.

Millennials purchase natural/organic food most frequently, with on average 60 percent of their food baskets containing half or more natural/organic products.

GenXers are second to Millennials, with 34 percent of their purchases consisting of natural/organic products.

Of shoppers with baskets that contain 50 percent or more natural/organic items, 64 percent have children, compared with only 36 percent for households with no children.

2. What are Natural/Organic Shoppers Buying?

Shoppers are seeking natural/organic products in categories with an increased penetration rate, including dairy, cereal/oatmeal, snacks, pasta/grains and soup.

“Must have” natural/organic items for families that are heavy purchasers of these items include produce (60 percent), dairy (50 percent), juice (47 percent), meat (46 percent) and snacks (44 percent).

Natural/organic health and beauty care items and condiments are “must-haves” for only 33 percent of families who are heavy purchasers of natural/organic items.

Beyond their interest in natural/organic products, more than 70 percent of Millennials are willing to spend more on products like juices, oils and nut butters, demonstrating how the category can impact center store sales.

3. Where do Natural/Organic Shoppers Shop?

Each generation of natural/organic shoppers has its own preference of where to shop for these items.

Silents (55 percent), Boomers (54 percent) and GenXers (42 percent) most frequently shop for natural/organic products at traditional grocery stores, primarily due to the convenience factor. continues next page...

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Consumer Trends A Snapshot of Today’s Natural/Organic Shopper cont...

About 20 percent of Millennials shop for natural/organic products at traditional grocery stores, too, but nearly 30 percent gravitate to the value channel for better pricing, product variety and “shopability.”

Thirty percent of shoppers with families purchase natural/organic products most often in the value channel, seeking lower price points.

4. Why Are Shoppers Choosing or Not Choosing Natural Organic Products?

There are several factors that influence natural/organic shoppers’ decisions to buy these products, but also several barriers that inhibit purchases.

The three key triggers motivating shoppers to fill their carts with natural/organic products include avoiding chemicals found in traditional food, a perceived improvement in food quality, and overall family health.

For traditional retailer shoppers (74 percent), mass retailer shoppers (63 percent) and natural retailer shoppers (61 percent), price is the biggest barrier to purchasing natural/organic items.

For 19 percent of natural retailer shoppers, there are no barriers for purchasing natural/organic products.

5. How Are Shoppers Learning About the Natural/Organic Products They Buy? While price is a primary barrier for natural/organic shoppers, the runner-up across channels is “conflicting information or studies about products,” as shoppers are confused about exactly what is good for them.

Fifty-six percent to 63 percent of natural/organic shoppers report they read labels for product information.

The top three sources of product information for natural/organic shoppers are product packaging, in-store signage and internet searches.

Nearly 73 percent of Millennials claim that they spend time researching while in the midst of a spending decision.

“Motivated by a desire for better health and transparency, natural and organic shoppers are a powerful force that retailers and brand marketers must study and speak to carefully,” Stewart said. “This category is one of the most important sales and marketing opportunities in retail grocery today, and all indications are strong [that] growth will continue well into the future.”

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Consumer Trends Rise in Mobile Causing Shift to Unified Commerce The rising adoption of mobile devices among consumers today is driving the “rapid shift” of retailers unifying commerce, as they now understand that today’s always-connected shopper expects a personalized, seamless and safe experienceregardless of location, time or method of shopping, a new report from retail consultancy Boston Retail Partners reveals.

Four key pillars define what is required to develop such an experience: personal, mobile, seamless and secure, the “2017 POS/Customer Engagement Benchmarking Survey” reports. They are:

1. Personal Today’s informed consumer researches products and shops anywhere and anytime – and expects a personalized experience wherever he or she shops. Three-quarters of survey respondents (75 percent) plan to use Wi-Fi to identify customers with their mobile devices in their stores by the end of 2019, and 80 percent will suggestively sell based on previous purchases within three years.

2. Mobile A constant, virtually unlimited array of information at our fingertips through mobile devices has changed the shopping experience and elevated customer expectations for customer service. Nearly nine in 10 respondents (89 percent) will offer mobile solutions for associates within three years, while 84 percent will use mobile point-of-sale (POS) within three years.

3. Seamless Real-time retail is the ability to deliver a seamless and personalized experience to the customer whenever, wherever and however she chooses to shop. Roughly seven in 10 respondents (71 percent) plan to have a unified commerce platform by the end of 2019, while six in 10 (60 percent) plan to have centralized POS within two years.

4. Secure Today’s retail environment requires security beyond retailers’ current focus on payments and networks. Almost all respondents (96 percent) plan to have end-to-end encryption by the end of 2019, while nearly three-quarters (73 percent) will provide a single token solution across the enterprise within three years.

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Retailer News Kroger Enters Meal Kit Business The Kroger Co. has launched an initiative to compete with meal kit delivery services such as Hello Fresh and Blue Apron, the Cincinnati Business Courier has reported.

Dubbed Prep+Pared, the Cincinnati-based company’s line of meal kits comes with the ingredients necessary to prepare a meal for two in about 20 minutes. Dishes include Moroccan Inspired Spring Vegetables, Creamy Chicken + Bacon Alfredo, Japanese Inspired Beef Bowl and Chimchurri Steak. Prices start around $14, which is less than the $10-per-person average estimated by The NPD Group, in Port Washington, N.Y., though still a bit more than the $4 per person from meals made from components purchased in-store. continues next page...

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Retailer News Kroger Enters Meal Kit Business Cont...

The kits are currently available in four Cincinnati stores – Hyde Park, Oakley, Harpers Point and Sharonville – but are slated to expand to more locations in the area. They can’t be delivered yet, but customers can order them online via the grocer’s ClickList service and pick them up at the Oakley and Sharonville stores.

Meal kits are a big business today, exploding into a $1.5 billion market over the past five years, according to Rockville, Md.-based Packaged Facts. That number is projected to double in the same timespan to come. While grocers have reason to fear services offering these kits, many are fighting back with solutions of their own, including Giant Food Stores, with its Fresh Meal Kits; Coborn’s, with its To the Table Fresh Meal Kits; and even Whole Foods, which has begun selling Purple Carrot meal kits. Grocery delivery service Peapod is also the latest food retailer to enter the business.

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Jewel-Osco to Start Offering Online Ordering, New Boss Says Jewel-Osco’s new president says that by the end of summer shoppers will be able to order groceries online from the Chicago area’s largest supermarket chain.

Doug Cygan sees that as a logical next step for Jewel-Osco, which got its start 118 years ago as a horse-and-wagon food-delivery service and supplied food for online grocer Peapod for a decade in the 1990s.

Peapod started sourcing from wholesalers 17 years ago to save money.

“Everything comes full circle in this business,” said Cygan, 54, who has been working for Jewel for 36 years, starting out part-time as a teenager helping customers put groceries in their cars in his native Mundelein.

He steadily worked his way into bigger roles with the 186-store, Itasca-based chain, which operates in Illinois, Indiana and Iowa and has more than 31,000 employees. Most recently vice president of marketing and merchandising, he was named president last week, succeeding Mike Withers, who was promoted to executive vice president of retail operations for Jewel’s parent company, Albertsons Cos., based in Boise, Idaho.

Darren Seifer, a food and beverage industry analyst with The NPD Group, said traditional grocers like Jewel are facing “a paradigm shift” in staying up to date, as shoppers “have more retail channels and options, like prepared foods and meal-kit delivery services, than ever before.”

Jewel-Osco’s e-commerce offering will be rolled out starting early this summer and be completed by summer’s end, according to Cygan, who would not provide details on how it will work.

Cygan — a 1981 graduate of Mundelein High School who’s on the board of his college alma mater, Western Michigan University — and his wife Shonna have a combined family of six children ages 16 to 26. ”Like ‘The Brady Bunch,’ ” he said — three girls and three boys — but with no “Alice,” the TV show’s live-in housekeeper. continues next page...

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Retailer News Jewel-Osco to Start Offering Online Ordering, New Boss Says Cont...

In an interview, Cygan also said:

• The Jewel-Osco slated to open next year at 61st Street and Cottage Grove Avenue in Woodlawn will feature a drive-through pharmacy and full-fledged drugstore, as well as the grocer’s organic and natural food options, meat-processing and cutting on site and ready-to-eat hot meals.

• The store slated to open June 27 at Clark and Division streets in Old Town will have an upstairs bar and seating area where people can order food.

• Jewel-Osco continues to look for new store sites and will step up its existing store remodels from 18 this year to 25 next year. The company has remodeled 114 stores in the past four years.

Cygan said he sees his role as ensuring Jewel-Osco continues for another 100 years by staying “hungry and humble.”

Grocery industry analyst David Livingston, managing partner of DLJ Research, said that, even though Amazon and other online grocers’ 1 percent to 2 percent market share might seem insignificant, it’s enough to have kept brick-and-mortar supermarket chains from having positive same-store sales.

Still, Livingston said, “Jewel is in a good position. Kroger is struggling to maintain sales volumes at Mariano’s.

Strack & Van Til is selling out and closing stores; Jewel might end up with some. Walmart and Meijer have closed some smaller stores in Chicago. Central Grocers, the largest area wholesaler, is financially distressed. What more could Jewel ask for?”

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Schnucks Names Peacock President, COO Schnuck Markets on Thursday said it has named David A. Peacock, a former president and dealmaker with Anheuser-Busch, to the role of president and COO. The role of president/COO at Schnucks had been vacant since Anthony Hucker departed in late 2015. Hucker is now COO of Southeastern Grocers.

Schnucks described Peacock as an active community leader with a strong business background including 20 years with Anheuser-Busch. Peacock is also chairman of Vitaligent LLC, the largest franchisee of Jamba Juice with $61 million in sales and 78 stores in Northern California and Missouri. Peacock has served on Schnuck’s board of advisors since 2013.

“Dave’s entrepreneurial spirit, vision and drive, along with his extensive business background will help us set a strong course for the future,” chairman and CEO Todd Schnuck said in a statement. “His counsel and leadership on our company’s Advisory Board have been instrumental in positioning Schnucks for growth. continues next page...

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Retailer News Schnucks Names Peacock President, COO Cont...

Further, his commitment to St. Louis and the region is aligned with Schnucks’ commitment to superior customer experience and community support. Dave also has strong values and a leadership style that will fit well within the Schnucks’ culture.”

Among his duties, Peacock will manage procurement/ merchandising, operations, marketing/communications and supply chain for Schnucks, which operates 100 stores in five states.

“This is a tremendous company and opportunity. Our teammates are focused on serving customers, delivering quality products and making Schnucks the best grocery shopping experience in the region,” Peacock said. “I am excited to work with Todd and his management team more directly on continuous improvement and innovation that will assure industry leadership, customer service and community support for the long term.”

Peacock managed U.S. operations for Anheuser-Busch, a wholly owned subsidiary of Anheuser-Busch InBev, from 2008 through early 2012, and was responsible for the commercial success of Anheuser-Busch during its integration with InBev, Schnucks said.

In 2008, Peacock led the negotiating team for Anheuser-Busch during the merger with InBev — the largest all-cash transaction in history at the time.

Peacock joined Anheuser-Busch in 1992 and served many roles in management, finance and marketing. At various times, he led the financial planning, mergers and acquisitions, information technology, procurement and route-to-market development, as well as several groups within marketing. In 2007, he was named VP of marketing for Anheuser-Busch, and in that role led the revitalization of the company’s marketing approach.

Peacock is dedicated to the St. Louis community and region and he serves on the board of directors of several charitable and civic organizations. He is chairman of the St. Louis Sports Commission and is a member of the Pro Football Hall of Fame Board of Trustees. He is a member of St. Louis’ CityArchRiver Board, where he co-chaired the initial campaign helping raise $180 million for the new Arch grounds revitalization.

Peacock formerly served as chairman of the Beer Institute, the U.S. beer industry’s policy organization in Washington and was also previously chairman of the St. Louis chapter of the American Red Cross.

In addition to Vitaligent, Peacock is an investor in Crushed Red, an elevated fast-casual restaurant with locations in St. Louis, Denver, Columbia and Kansas City.

Peacock served as a member of Schnucks’ Advisory Board beginning in July 2013 and will give up that role in his new position.

A native of St. Louis, Peacock holds a bachelor’s degree in journalism from the University of Kansas. He also holds a master’s degree in business administration from Washington University in St. Louis, from which he received the Distinguished Alumni Award in 2009. He lives in St. Louis with his wife and three children.

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Retailer News Food Lion Awards Feedys for Hunger Relief Efforts At its second annual “Feedys” awards ceremony, held at company headquarters, Food Lion recognized individual associates and one of its stores, as well as food banks and community partners, for their work to eliminate hunger in the communities served by the Salisbury, N.C.-based grocer.

“At Food Lion, we believe no one should have to choose between dinner and rent, or gas and groceries, and we know today one in six Americans are struggling with that choice every day,” said President Meg Ham. “Our passion is helping to nourish and feed families through healthy, fresh, low-price groceries in the towns and cities we serve and shorten the lines at local food banks. Through this annual event, we will celebrate the local hunger heroes in our communities and honor those who are working to make sure no one goes hungry.”

Randy Havinga, a store associate in Huntersville, N.C., and Margaret Ellis, a corporate associate in Salisbury, each received the “Lion’s Pride” award for their outstanding skills in coordinating and motivating associates and volunteers for hunger-relief projects. Store 1041 from Wilmington, N.C., garnered the “Store That Roars” Award for its work in this area as well.

Also during the awards ceremony, an individual hunger hero, a corporation and a food bank partner of the year were honored, 30 local food banks received recognition for their years of partnership with the grocer, and the Food Lion Feeds Charitable Foundation presented Kids Café grants totaling $143,000 to 14 food banks.

Food Lion launched Food Lion Feeds, its hunger relief platform, in 2014 with a commitment to donate 500 million meals by 2020. So far, the company has contributed more than 290 million meals toward this goal. Food Lion Feeds runs the Summers Without Hunger, Holidays Without Hunger and Food Lion Feeds Apple Bag campaigns. In 2017, Food Lion bestowed five honorary in-store campaign awards on the stores that donated the most meals through these programs.

A company of Delhaize America, part of Ahold Delhaize, Food Lion has more than 1,000 stores in 10 Southeastern and Mid-Atlantic states, employing 63,000-plus associates.

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Food Lion Announces $110 Million Investment in Stores Continuing on its mission to bring a new look and refreshed focus to each of its stores, Food Lion has launched even more remodels, this time targeting 71 stores in the greater Richmond, Virginia, market. In total, Food Lion’s investment is expected to reach $110 million, which will include remodeling stores, pricing adjustments, and reinvesting back into its associates and the community.

“Food Lion is proud to have been a part of the greater Richmond community since 1984, and we are excited to bring our newest format to this market,” said President Meg Ham. “We look forward to making significant investments in our stores, our customers, our associates, and our communities to offer a new grocery shopping experience. We want to ensure our customers can easily find fresh, quality products to nourish their families at affordable prices every day, delivered with caring, friendly service every time they shop. continues next page...

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Retailer News Food Lion Announces $110 Million Investment in Stores cont...

According to a press release, these new enhancements will include an expanded product portfolio, new registers, pricing adjustments, and enhanced service. The newly designed stores are made to be easier to navigate, so customers can get in and out of the store quickly, and the expanded variety of products will make each store more relevant to its customer base, providing an array of local options.

Richmond is the sixth of Food Lion’s markets it has sought to remodel, and with locations expected to be completed on a rolling basis between June and October 2017. Food Lion says it will continue to launch enhancements across its more than 1,000 stores in 2017, moving its remodel initiative to even more markets. The company is currently remodeling 93 stores in the greater Greensboro, North Carolina market, and has previously completed 142 stores in greater Charlotte in 2016, 162 stores in the greater Raleigh in 2015, and 76 stores in the greater Wilmington and Greenville markets in 2014.

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Sprouts Keeps Sprouting Sales Growth For the first quarter ended April 2, Sprouts Farmers Market saw sales rise to $1.1 billion, or 14% growth, driven by comp sales growth of 1.1%.

Two-year comparable store sales growth was 5.9% Net income was $46 million, or flat from the same period in 2016. Diluted earnings per share were 33 cents, a 10% increase from the same period in 2016.

“In an industry with continued deflationary challenges, I am extremely proud of the Sprouts team for delivering our 40th consecutive quarter of positive comps, strong new store productivity and new market entries in Florida and North Carolina,” said Amin Maredia, chief executive officer of Sprouts Farmers Market. “Sprouts was the first grocer to combine fresh, natural and organic foods with value prices, and we continue to differentiate through our high level of customer service and unique product offerings. Our focus remains on our strategic priorities of category innovation, developing team members, enhancing the customer experience and investing in infrastructure to support our long-term growth.”

Sprouts says it is maintaining its competitive position by remaining focused on the customer, offering knowledgeable customer service and fresh, healthy products at affordable prices. Bloomberg and Reuters reported in March that Sprouts was in potential merger talks with Albertsons. But Albertsons is now rumored to be in talks with Whole Foods Market.

In the first quarter Sprouts opened eight stores, including its first stores in Florida and North Carolina, which brings its footprint to 15 states coast to coast.

“Our 2016 and 2017 vintages continue to open above our expectations,” Maredia said. “In part, this has been driven by our increased brand awareness activities centered around the communities in which we operate and focus on building our brand affinity and awareness as we enter new and emerging markets. Our pipeline remains strong with 63 approved sites and 43 signed leases for the coming years.” continues next page...

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Retailer News Sprouts Keeps Sprouting Sales Growth cont...

The company also opened a new Atlanta produce distribution center in December 2016. The DC is proving to be a tremendous benefit to Sprouts stores in the Southeast. Most notably, it provides customers fresher and more local produce and allows the retailer to expand produce vendor relationships.

The company also says it has several priorities for 2017, including expanded private label program enhanced deli program in 50 new and existing stores improved grab-and-go items enhanced meat and seafood departments new customer engagement and content across print, digital and in-store more Amazon Prime Now partnership stores (currently in 10 stores with at least 10 more stores to come as the year progresses) As of April 1, Sprouts operates more than 260 stores in 15 states.

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Publix & Wegmans Are Tied For America’s Favorite Grocery Store Wegmans and Publix are tied for America’s favorite grocery store, according to a 12,700-person study conducted by Market Force, a company focused on consumer experience.

Participants in the online survey ranked the stores based on a Customer Loyalty Index, according to a press release. The index looks at a customer’s satisfaction with their last shopping experience at a grocery store and whether or not they would refer the store to others.

Wegmans (a chain based in the Northeast and Mid-Atlantic) and Publix (which is based in the South) each scored a 77 percent rating. Trader Joe’s came in second, followed by the Texas chain H-E-B. Last year, Wegmans took home the top spot by itself, beating out the longtime winner, Trader Joe’s.

Below are the top 15: 1. Publix and Wegmans 3. H-E-B 5. Harris Teeter 7. Costco 9. Whole Foods 11. Kroger 13. Winn-Dixie Stores 15. Food Lion

2. Trader Joe’s 4. Aldi 6. Hy-Vee Food 8. WinCo Foods 10. Fry’s 12. Target 14. ShopRite

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Retailer News Sweeping Change at Wholefoods

Whole Foods Market on Wednesday announced a slate of dramatic changes ranging from new board and executive appointments to an accelerated plan to slash costs and regain sales and earnings momentum.

The Austin, Texas-based natural foods retailer, whose slumping results and lagging stock price last month attracted the attention of activist investors — and rumors of strategic partnerships — said its goal was to deliver better returns for shareholders while setting the stage for positive comparable-store sales and earnings growth by the end of its 2018 fiscal year in September 2018.

“Today’s announcement is a powerful combination of accelerated initiatives and new cost savings with clear timelines to deliver,” said CE0 John Mackey in the release. “We are on a path to return to positive co parable store sales and earnings growth next year. Our increased dividend and new share repurchase authorization demonstrate our board’s confidence in our long-term growth strategy and continued ability to generate strong cash flow. The board will continue its comprehensive review of all opportunities to create value. We look forward to continuing our dialogue with shareholders and providing future updates on our progress.”

Initiatives include accelerating an affinity loyalty rollout to all U.S. stores and completing a restructure of its purchasing program by the end of the 2017 calendar year. The company said it would implement category management chainwide by the end of the 2018 fiscal year.

Whole Foods said it would also slash costs by $300 million by the end of the 2020 fiscal year behind store labor transformation including standardization of in-store processes and labor allocation; support function efficiencies; and supply chain optimization through an accelerated order-to-shelf rollout. Those savings are in addition to the $270 million already realized as part of the company’s prior cost reduction plan, which is on track to reach $300 million by the end of this fiscal year.

Separately Whole Foods announced the appointment of five new independent directors, and named existing board member Gabrielle Sulzberger the new chair of the board and Mary Ellen Coe the new chair of the nominating and governance committee, effective immediately. The company also announced the appointment of former Kohl’s executive Keith Manbeck as its new CFO. Manbeck, who begins May 17, will succeed Glenda Flanagan, who previously announced plans to retire.

Most recently Manbeck served as SVP of digital finance, strategy management and business transformation at Kohl’s Corp. During his tenure at Kohl’s, Manbeck helped lead key transformation initiatives, including the company’s development of its digital commerce business. This resulted in three years of double-digit comp growth that outperformed industry peers, along with more than 20% annual sales growth and over 25% annual profitability growth.

Prior to joining Kohl’s, Manbeck served as VP and CFO for Nike’s Direct to Consumer business, which under his stewardship grew to more than $5 billion in sales with double-digit comp growth each year and profits increasing by more than 30% each year, Whole Foods said.

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Retailer News Sweeping Change at Wholefoods Cont...

“Keith’s proven experience will be a great addition to our team,” Mackey said. “Keith has a track record of success at leading retail companies, including Kohl’s and Nike, where he led key transformation initiatives with great results. He is a proven leader who knows how to drive strategic change, while maintaining the culture and values that make a company great. We are confident Keith’s financial and operational expertise will allow him to hit the ground running as we move forward with our plan to improve financial and operational performance.”

The new board appointees, effective immediately, are Ken Hicks, Joe Mansueto, Sharon McCollam, Scott Powers and Ron Shaich.

Sulzberger, the new board chair, has served as an independent director of the company since 2003 and succeeds John Elstrott as chair. Sulzberger has served as a principal of a diversified investment fund, Rustic Canyon/Fontis Partners LP, since its inception in October 2005.

Those announcements came as Whole Foods said sales for its 12-week second quarter ending April 9 increased by 1.1% to $3.7 billion and comps declined by 2.8%, including a 30 basis-point impact of the Easter holiday falling outside of the quarter this year. Those figures were slightly above consensus analyst estimates. Net earnings of $99 million fell by 30.3%.

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Amazon, Whole Foods & the ‘New World of Supermarketing’

In the wake of Whole Foods’ announcement that it’s being scooped up by ecommerce giant Amazon.com, industry observers have been pondering how the acquisition will change the grocery game – from how the deal will affect companies ranging from grocers to CPGs and service providers, to what brick-and-mortar and ecommerce will look like in a future where Whole Foods operates as an Amazon subsidiary. Even Supermarket Guru Phil Lempert said that “June 16, 2017, will go down in history as the beginning of the new world of supermarketing.”

For years, many pundits believed Amazon’s sole purpose was to make online king while laying waste to brickand-mortar retailers. But this move, arguably more than anything else, is the “bold statement” that shows how serious Amazon is about getting into brick-and-mortar retail, says Dan Wilkinson, chief commercial officer of 1WorldSync, a Chicago-based provider of product content solutions.

Gary Hawkins, CEO of the Los Angeles-based Center for Advancing Retail & Technology, sees two significant threats that the acquisition poses for the grocery industry. First, Amazon can bring to brick-and-mortar its continues next page...

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Retailer News Amazon, Whole Foods & the ‘New World of Supermarketing’ Cont... expertise in marketing relevancy and personalization integrated with sophisticated pricing algrithms.

“Amazon’s acquisition of Whole Foods changes the game in how retail now must go to market, and since Whole Foods’ business is not dependent on the large CPG brands and their marketing funds, Amazon has no constraint in applying their personalization and pricing skills to how Whole Foods goes to market,” Hawkins explains. “This is the most pervasive and significant threat and disruption coming fast to brick-and-mortar retail. And the vast majority of traditional retailers don’t have a clue.”

Second, with online shopping quickly transforming – moving from typing on a keyboard to conversational commerce – Amazon has a significant advantage over traditional grocers.

“Think about how Alexa can be used even more extensively to shop at Whole Foods and inquire about what’s fresh that day, where products are sourced from, etc.,” he says. “Amazon will leverage voice to expand the Whole Foods shopping experience. I can start my shopping list as I have coffee at home in the morning, add some things to it I think of while I’m driving to work, and then ask Alexa to have my order ready to pick up at the Whole Foods I drive by on my way home later that day. What traditional retailer is even close to this capability?”

In general, Hawkins observes four dimensions to how the move will affect the grocery landscape:

- Amazon will be able to leverage Whole Foods’ stores to quickly grow the grocer’s sales by building both the brick-and-mortar business and the online business, using Whole Foods stores for fulfillment.

- Amazon has the unique ability to leverage its online expertise, delivery capabilities and fast-growing Alexa platform and Dash buttons to fuse the online and brick-and-mortar worlds to drive unified retailing at scale.

This goes beyond omnichannel – Amazon will be able to synthesize the shopping experience across the physical and virtual worlds to create something new. It also will allow Amazon to bring the technologies it’s been testing at its Amazon Go and other operations to Whole Foods stores, possibly bringing self-shopping to the operation, thus lowering costs and helping Whole Foods become more competitive.

- Amazon will be able to leverage Whole Foods’ locations to enhance its click-and-collect and delivery operations, making them pickup points for online orders and/or delivering products ordered online to customers surrounding the locations.

- Amazon will be able to expand into the payments business, as doing so enables Whole Foods shoppers to pay via their Prime accounts – something already employed at the Amazon Go test location.

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Retailer News Jewel-Osco Makes Bid to Acquire Strack & Van Til Stores Jewel-Osco is looking to add to its fleet of grocery stores, making a bid for 19 Strack & Van Til stores in northwest Indiana for about $100 million, according to court documents.

The Itasca-based grocery chain plans to keep all the stores open and retain most of their employees, according to a news release from Jewel. The purchase would extend Jewel’s reach in Indiana, where it currently operates only four stores.

Strack & Van Til’s Joliet-based parent, Central Grocers, filed for Chapter 11 bankruptcy this month and is set to lay off about 1,300 employees from its Joliet warehouse and shuttered Ultra Foods stores. Strack & Van Til and Ultra Foods were included in the bankruptcy filing.

Besides being the parent company of Strack & Van Til and Ultra Foods stores in Illinois and Indiana, Central Grocers is a grocery cooperative that has acted as a wholesaler for independent groceries throughout the Chicago area.

The company announced last month that it would sell 22 Strack & Van Til stores and close nine of its Ultra Foods stores. It also plans to auction off its Joliet warehouse and headquarters and other assets.

Jewel has emerged as the “stalking horse bidder” — the initial bidder prior to auction — on 19 of those Strack & Van Til stores, two of which operate under the Town & Country Market banner. However, the deal is not set in stone. If another entity bids on the assets, an auction will be held in June, according to a news release from Central Grocers.

Representatives for Jewel and Central Grocers declined to comment further.

Jewel, a subsidiary of Albertsons Cos., operates 186 stores throughout Illinois, Indiana and Iowa. Central Grocers acquired Strack & Van Til in 1998.

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Target to Test Next-Day Delivery Service in Minneapolis Target plans to test a next-day home delivery service called Target Restock in the Minneapolis area, the company said in a blog post on May 1st. The company said household essentials ordered online, like laundry detergent and coffee, will be packaged at a nearby store, allowing for delivery the next day.

Target and other major brick and mortar retailers are investing heavily in their e-commerce businesses as they try to gain ground on Amazon.com which revolutionized online retail through aggressive pricing and speedy delivery.

Minneapolis-based Target lagged behind competitors in e-commerce, but is now stepping up its emphasis on such sales. The company had signed a deal with online delivery service Instacart to pick up Target groceries and deliver them to customers in some cities. The company intends to compete with rivals Wal-Mart Stores and Amazon for same-day delivery.

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Retailer News Meijer to Open New Small Store Format Under New Banner Meijer has been successful throughout the Midwest, but the company may be moving to diversify with a new store format under a new banner.

The 30,000-square-foot urban concept store will break ground on June 26, 2017, according to a company press release, with doors opening as early as fall of 2018. The release called Bridge Street Market “the first-of-its-kind in the region and a unique retail model intended to deliver a convenient, fresh neighborhood grocery option for those who live, work, and play in the area.”

Local news source MLive noted that the market will anchor an ambitious $60 million block-length development being executed through Meijer’s longtime contractor-partner Rockford Construction. The mixed-use development that the market will anchor, located in Grand Rapids, Michigan’s West Side neighborhood, will also feature apartments, a parking deck, and an office and retail building.

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Auction of Marsh Supermarket Assets Begins With “Numerous” Bids After filing for Chapter 11 bankruptcy earlier this year, Marsh Supermarkets began auctioning off its assets this week, reportedly fielding “numerous” bids for the Midwest banner’s remaining locations.

“Qualifying bids have been received from numerous bidders,” said Thomas Mulligan, a Senior Executive from Sitrick and Company, a firm retained by the retailer to respond to inquiries on store closures and asset sales. “The company, its advisors, and the creditors committee are evaluating the bids.”

According to local ABC affiliate RTV6, the auction, which officially began Monday June 12, 2017 at 10 a.m., includes only bidders who are considered to be qualified to operate the assets of the company.

The embattled supermarket chain filed for bankruptcy earlier this year after attempts at a sale were unsuccessful.

The company closed more than 20 stores during the first half of this year, bringing the chain’s store count to 47.

Marsh recently petitioned—and was approved for—an expedited bankruptcy sale plan in Delaware courts in order to court a stalking horse bidder.

“While today’s decision was extremely difficult, we believe this action is necessary to preserve the value of the business as we seek a sale,” said Chief Executive Officer Tom O’Boyle on the occasion of the company’s decision to file for bankruptcy this May. “After reviewing every alternative, we concluded that Chapter 11 clearly provides the most effective and efficient means to ensure the best recovery for the Company’s stakeholders.”

RTV6 reports that, so far, roughly 3,700 Marsh employees have lost their jobs due to store closures, and were the remaining stores to close, an additional 2,788 employees would be laid off.

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Retailer News Lidl: First U.S. Stores Opened June 15 Pledging to “rethink grocery” behind a combination of quality, convenience and value, Lidl US revealed that its first U.S. stores would open June 15.

Lidl, a division of German retailer Schwarz Group with U.S. headquarters in Arlington, Va., also provided locations of the 20 stores it said it would open this summer but did not reveal how many of those would open their doors in June.

Lidl’s entry promises additional points of pressure to a U.S. grocery market already struggling with overcapacity, slowing sales affected by deflation and price competitiveness threatening profits. Anticipation of its arrival has been a driving factor in any number of events in recent years, from the Ahold-Delhaize merger, to Walmart’s price and service investments, to stepped-up renovations and expansion of its German counterpart Aldi.

The release came on the heels of an event in New York last month that also included remarks from executives and a sampling of its fresh and private brand products. These included a line of specialty international products to be marketed under the Preferred Selection brand and a large array of exclusive wines officials said would be offered at “market-beating” prices up to 50% less than conventional grocery stores.

The locations for Lidl’s first 20 stores are as follows:

- Kinston, N.C. 4050 W Vernon Ave - Greenville, N.C. 1800 East Fire Tower Rd - Wilson, N.C. 3520 Raleigh Rd Parkway West - Sanford, N.C. 3209 NC 87 South - Rocky Mount, N.C. 940 N Wesleyan Blvd - Winston-Salem, N.C. 3315 Sides Branch Rd - Havelock, N.C. 547 US Hwy 70 West - Rockingham, N.C. 705 US 74 Business East - Wake Forest, N.C. 1120 South Main St - Spartanburg, S.C. 8180 Warren H Abernathy Hwy - Greenville, S.C. 2037 Wade Hampton Boulevard - Virginia Beach, Va. 6196 Providence Rd - Hampton, Va. 2000 W Mercury Blvd - Culpeper, Va. 15169 Brandy Road - Chesapeake, Va. 4033 Portsmouth Blvd - Norfolk, Va. 6440 N Military Hwy - Newport News, Va. 11076 Warwick Blvd - Richmond, Va. 12151 W. Broad St - North Chesterfield, Va. 1311 Mall Drive - Richmond, Va. 5110 S Laburnum Ave

These locations, which will be open seven days from 8 a.m. to 9 p.m., would be serviced from newly opened distribution centers in Virginia and North Carolina, Lidl US CEO Brendan Proctor said. A third Lidl DC, in Perryville, Md., is still under construction. Lidl will open an additional 80 stores in markets between New Jersey and Atlanta by next summer, Proctor added. Advertising for the opening stores would begin shortly in those markets, Proctor said.

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Shows & Events

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