C.A.FORTUNE the lifestyle brand agency
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C.A.F ANNOUNCEMENTS June 2018 Volume 6, No. 3
Contents C.A.F. Announcements 2-3 Distributor News 3-4 Industry News 5-7 Consumer Trends 7-8 Retailer News 8-10 Shows & Events 11
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GET TO KNOW US Founded in 1983, C.A. Fortune is a leading full-service national consumer products sales and marketing agency, focusing on lifestyle brand partnerships, across numerous trade channels. With more than 375 associates nationwide, the firm offers clients a turn-key solution — from brand incubation/acceleration, client development, sales management, marketing and insights, retail services and more. The company, headquartered in Chicago, has regional offices in Cincinnati, New York City metro, Dallas, San Francisco, Los Angeles, Denver and Portland, OR.
C.A. FORTUNE ANNOUNCES CORPORATE REBRANDING It’s has been with great pleasure and a tremendous amount of excitement, that C.A. Fortune has shared the new “look & feel” for the company effective this month. As many may know, the company re-branded the organization five years ago this month following the initial acquisition of legacy C.A. Fortune. At that time, the company felt it was ultra-critical to clearly establish (through our logo) the three main trade channels/ areas of focus & expertise we were going to narrow in on: Natural Channel, Specialty/ Conventional Channel, & Fresh (bakery, deli, etc.). While those areas/channels continue to be our main focus today (which will not change), we strongly felt with the continued evolution of how the industry is defining what differentiates one trade channel from the next, along with the opportunity to better align our branding with the true “look and feel” of our organization, it was the perfect time to embark on this journey. With that said, we proudly announce our new re-branding effective June 2018.
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C.A.F ANNOUNCEMENTS /DISTRIBUTOR NEWS
SPINS Announces New Partnership with C.A. Fortune, Fueling Expanded Connectivity & Data-Driven Insights June 21st, SPINS®, the industry-leading source in health & wellness retail intelligence, providing actionable insights, activation tools, and product transparency to improve the lives of consumers, announced a new partnership with C.A. Fortune. This new partnership builds further support and connectivity for retailers and manufacturers aligned with both C.A. Fortune and SPINS. As the two companies continue to advance solutions and thought leadership in health & wellness, the new partnership equips innovative retailers and shared manufacturer clients with tremendous insight and a common language on which to build stronger collaboration. Manufacturers working with both organizations will immediately recognize additional opportunities to accelerate growth with key retail partners. “As natural, specialty, and health & wellness influences continue to disrupt retail across all channels, it is more important than ever for manufacturers and retailers to communicate effectively and efficiently on their most important business metrics,” said SPINS CEO, Tony Olson. “We look forward to facilitating this essential connection as C.A. Fortune joins SPINS as a valued partner.”
Hot Products & Fourth Quarter Seasonal Trends On Full Display At KeHE’s 2018 Holiday Show More than 4,500 industry leaders convened at Chicago’s McCormick Place on June 13-14 for KeHE Distributors’ 2018 Holiday Show. Products featured by nearly 700 exhibitors across all categories allowed retailers to experience firsthand new and on-trend products for the upcoming winter season. “Industry leaders convene to ignite their senses and experience great food. Our retail partners are able to purchase products on the spot with great discounts from our valued supplier community,” said Brandon Barnholt, President and CEO, KeHE. “We are proud to continue to connect our community of retailers, suppliers and brokers with the dynamic products, educational presentations and deals showcased at KeHE’s annual Holiday Show.” Barnholt’s President’s Address opened the show, providing insight on the evolving marketplace. During the Keynote Address, Carey Lohrenz - the U.S. Navy’s first female F-14 Tomcat pilot, discussed her definition of fearless leadership and how taking big risks can create big rewards. New for the 2018 Holiday Show: • Themed Holiday Showcase featuring holiday cooking and demo seminars to spark inspiration • At the Fresh Marketplace, retailers learned about new products and trends driving the industry
New for this show, a portion of the Exhibit Hall was dedicated to the Compassion Experience, an immersive walk through the life of a child with poverty. Afterward, attendees could opt to sponsor a child through Compassion International, a KeHE Cares™ partner.
Following the show, the KeHE community donated 33,818 pounds of food products to the Greater Chicago Food Depository. Article Source
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“At our show, we do more than connect, we are able to satisfy our mission of SERVING to make lives better™. Showcasing our values is an important pillar in our trade shows,” said Ari Goldsmith, KeHE Executive Director of Marketing.
Show attendees received a wooden KeHE Cares™ token to drop into a bucket representing one of four partner organizations around the world – The Ark (Chicago), KHK Foundation (Cambodia), A Kid’s Place (Florida), and Restoring Hope (Nepal). For each token placed in its bucket, the organization received a $5 donation from KeHE Cares™.
“Our partnership with SPINS represents C.A. Fortune’s continued investment in and commitment to our client and customer partners across the country,” said C.A. Fortune’s Managing Partner, Tyler Lowell. “SPINS’ vision, forward-thinking approach, and dedication to always being a value-add organization perfectly aligns with C.A. Fortune. Tony has built a first-class team, one with which we are thrilled to be connected.”
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More than 190 brands were featured in the New Products Showcase, highlighting items from Certified B Corp vendors and KeHE’s CAREtrade™ partners. Attendees voted using the KeHE Events Mobile App for the winners of the Best of New Products Awards: • Best of Show: Prommus • Best of Beverages: Vitacup • Best of Breakfast: Coffee Booster • Best of Condiments & Sauces: Primal Kitchen • Best of Confections & Baking: Pamela’s Products • Best of Fresh & Frozen: Caulipower • Best of Health & Wellness: EO Products • Best of Mission-Based Brands: Berri Fit • Best of Snack Foods: Hen of the Woods • Best of Staple Goods & Grains: Maya Kaimal
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DISTRIBUTOR NEWS Supervalu announced a restructuring plan to convert it into a holding company that would further segregate its retail and wholesale operations.
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The Eden Prairie-based company filed a preliminary proxy statement June 12, 2018 with the Securities and Exchange Commission detailing the company’s latest plan. “We have been executing a strategic transformation of our business over the last two years to become the wholesale supplier of choice for grocery retailers across the United States, while also executing initiatives to deliver long-term stockholder value,” said Mark Gross, Supervalu’s president and CEO, in a news release. “The proposed holding company structure is another significant and important undertaking by our team that would support and advance our transformation by further separating our wholesale and retail operations in a taxefficient manner.” Supervalu is one of the country’s biggest grocery wholesalers, with that segment contributing 78% of overall revenue during the last fiscal year. The company also operates about 200 grocery stores, chiefly in the Midwest with its biggest chain being Cub, the market leader in the Twin Cities. Under the plan, a holding company called Supervalu Enterprises Inc. would be formed in a tax-free transaction to shareholders. That entity’s name would revert to Supervalu Inc. after the transaction. The company would maintain its current stock symbol of SVU. Supervalu said the plan would give it more strategic and financial flexibility and “facilitate the company’s previously announced strategic transformation plan to sell certain retail assets to third parties.” Supervalu has been under pressure from an alternative asset-management firm, Blackwells Capital, since October. The New York-based firm took an ownership
Supervalu Plans a Corporate Restructuring into a Holding Company position in Supervalu and urged the board of directors that it should sell a third of its retail grocery stores and some real estate to return value to shareholders. Blackwells was frustrated with the long downward trend of Supervalu’s stock and the company’s plans to create shareholder value. Blackwells, which hadn’t previously launched an activist shareholder campaign, increased its pressure on Supervalu’s board in February, saying it needed to sell its wholesale business and in March started a proxy battle by nominating a slate of six independent director nominees for places on Supervalu’s nine person board.
A filing by Blackwells on May 29 showed that it had increased its ownership stake in Supervalu to 7.3%. A date has not yet been set for an annual meeting where shareholders could vote on the new holding-company structure and new director candidates. Supervalu, whose fiscal year ends in February, typically has its annual meeting in the third or fourth week of July. Shares of Supervalu ended n June 13th at $19.89, down 21 cents or 1.04%. Yearto-date shares are down 5.8% and down 30.1% in the last year.
Supervalu responded to Blackwells in February saying a “rapid transformation” was underway.
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INDUSTRY NEWS
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The Future of Grocery Shopping: Click or Mortar? The future of grocery shopping has been debated for decades because it’s been changing for decades, but the speed of change—driven by everything from smartphones to data analytics—has turned up the volume on that debate. Nutrition Business Journal invited expert, Linda Shein (LBShein & Co.) to share her opinion. Omnishopping: Grocery’s new normal Arguments abound that online grocery is over-hyped and especially that the desire for “fresh” will continue to drive consumers to physical stores to touch, feel and select their food, versus other sectors that are more vulnerable. But these arguments miss the point: To compete in the Amazon era, successful retailers across all segments must offer a seamless customer experience across online and offline touchpoints, leveraging physical stores to create new, more sensory, engaging and differentiated experiences. Retail is now channel agnostic—customers shop 24/7 from anywhere, checking their phones over 200 times a day, and the journey for a single sale crosses multiple channels and devices. Even the term “omnichannel” is obsolete, as this is our new normal retail. Online versus offline is siloed thinking that must yield to seeing through the eyes of the consumer, meeting her wherever she is, whenever she shops—in a store, at a red light, while in a meeting or even from the bathroom. Still, while online grocery in the U.S. has lagged other sectors in reaching the “tipping
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point” we have seen in books, fashion, sporting goods, toys, etc., grocery is in the early stages of digital disruption with massive changes on the horizon. It is interesting to consider that the center of the store is most vulnerable, given branded packaged goods are ubiquitously available and price comparison engines drive consumers to the lowest price offered, such that private label and fresh are the future to a differentiated product offering. Regardless, the Food Marketing Institute and Nielson together predict that 70% of consumers will buy at least some groceries online in the next five to seven years, and unlike at any time in the past, new shopping patterns are now driven largely by technology, which continues to change at an ever-increasing rate (i.e., this is not slowing down, and agility will be the key to success). It is hard to imagine the iPhone was introduced only 10 years ago, with consumers now on mobile devices hundreds of times a day including time spent in “pre-commerce” discovery—even if, for now, most conversion still happens on a larger screen or in physical stores. Rather than looking inside the U.S., where retailers have not cracked the online grocery code, let’s look to the U.K. to learn from a model of success. Ocado is a U.K. onlineonly grocer that dispels many myths around online grocery. (I recently had the privilege of hearing the CEO speak alongside the CEOs of Target and Shipt discussing their new relationship, Walmart e-commerce which is rolling out home delivery to another 1000 stores, and Sprouts and AmazonGo
leadership as well). At $2 billion a year and profitable, Ocado is now investing in doubling capacity; its largest warehouse ships 2 million items a day, with more fresh and organic offerings than the largest U.K. brick-and-mortar grocers. It guarantees lower prices than the least expensive offline grocer, as well as one-hour delivery to anywhere. Most interestingly, shoppers cut across all age groups and are not dominated by millennials. While the U.K. is not the U.S., it is interesting to observe as we pursue the optimization of U.S. grocery offerings across channels. In many ways, everything has changed in retail, but in the most important way nothing has changed: The customer is still queen (or king), and we still must meet her wherever, whenever with whatever she demands, across all channels and devices. Today, however, offering the right product at the right time in the right quantity at the right price are simply table stakes and are no longer differentiators. Today’s consumers no longer buy stuff. Instead they seek experiences. They are accustomed to more engaging and personalized experiences online, where data mining enables a highly individualized path to purchase—including presenting products and experiences curated based on prior shopping patterns that can be merged with physical store history enabling one view of each customer. Retail winners will be those who adapt readily to constant change and keep their eye on the ball to continuously reinvent the customer experience, whether online or offline, which is what successful retailers have always known.
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INDUSTRY NEWS
Why “Going Blue” (Not Green) is the New Standard for Wellness Brands Voting with your wallet is real. Have you noticed how giant brands in the food and drink industry—including PepsiCo and General Mills—are making changes in order to bring healthier options to the masses? That’s because consumers have made it clear that, when they go shopping, they’re looking for more: more freshness, more whole ingredients, more sustainability.
Hatz names the beverage company Rebbl as an example of an organization that’s going the extra mile. “It’s a for-profit company that was founded to raise money for a non-profit committed to ending human trafficking and their proceeds go toward that,” she says.
supplement companies will follow suit,” she says.
Mazzucco says Olly has been a public benefit corporation from the beginning— which she says is similar to being a Certified B Corp—so the changes the company had to make were minimal. “We already had these great benefits in place, but many employees didn’t know Hatz says that while becoming a B Corp about them. So part of what we had to isn’t the only way for a company to do was make [everyone] more aware,” “go blue,” it does show that its level of These new demands from consumers she says. One such benefit: Ensuring each commitment to do good is woven into the are changing not just the items on store employee knew they had allotted money company’s DNA. When Athleta received shelves, but the way companies are being this distinction structured down to the core. Now, not “The customer has spoken specifically for health and wellness related activities, only are shoppers looking for brands to be earlier this month, loudly & clearly. She is like a gym membership or it made major healthy and environmentally friendly, they demanding this change, & the SoulCycle classes. news because it’s want them to give back to the planet even companies who ignore her do a step not many more than they are taking out. Enter: the so at their peril.” Similarly, Just Water CEO large fashion rise of Certified B Corporations. Andrea Mallard, Athleta CMO Ira Laufer says when brands have taken. they filed for certification in December, “We’re incredibly impatient with ourselves Companies that are Certified B must prove not many changes needed to be made they are using their company as a force for at Athleta, and I think that’s exactly the because the company was founded with right mindset,” the brand’s CMO, Andréa good—and not just in a way that sounds transparency and public good in mind, Mallard, says. “The world would be far nice in publicity materials. According to though he did say the process was quite better off if the entire fashion industry—or the official B Corp website, “B Corp is to frankly, any industry— believed they could vigorous—something he sees as a good business what Fair Trade certification is to thing. “They have an ‘impact assessment’ never do enough to Serve the world.” coffee or USDA Organic certification is and really decry every step of the process, to milk.” And to be approved, companies Mallard says there are infinite ways brands looking at, for example, how we treat our must meet “rigorous standards of social employees and vendors, how we buy our can work giving back into their mission. and environmental performance, ingredients and raw materials, and making For Athleta, it’s using highly sustainable accountability, and transparency.” sure our paper is sourced from rainforests fabrics, but she says another company alliances,” Laufer says. may choose to focus on conserving water Activist Diane Hatz, who founded Change in a really unique way. “We’re proof that Food, says the shift toward demanding Laufer says it was important to the [giving back] can be done while growing more from companies is the result of a company to show their customers exactly enormously as a business,” Mallard says. progressive awareness, especially with how they give back. “A lot of brands younger generations. “Now, if someone say they have some sort of give-back Similarly to fashion, the supplement is going to feel really good about what component, but many don’t actually industry is another section of the wellness they’re buying, they want to know it’s deliver,” he says. “Having the certification world where many brands have yet to benefiting the planet or someone else is a transparent and tangible way that’s step up and commit to contributing to in a bigger way,” she says. This goes easy for the consumer to see and identify.” the greater good. Mari Mazzucco, a beyond just buying a product made out of marketing manager at Olly, recyclable material “Where we’re heading, or designed locally. “Customers are researching products and companies are going to says she was surprised to only see a few supplements “Right now, people companies like never before, and are very have to give back more on B Corp’s website when are trying to put back happy to force a change with their wallets. than they take out.” she was working on the what they take out. B Corp is a clear signal to customers that - Diane Hatz, Change Food Founder paperwork for Olly. “It’s you’re committed to being on her side— You’ve heard of going green? This is going something we’re really hoping to lead and the right side of history,” says Mallard, the charge with and hopefully other blue. at Athleta. Article Source
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INDUSTRY NEWS/CONSUMER TRENDS FDA Expands List of Ingredients Approved as Dietary Fiber U.S. Food and Drug Administration (FDA) Commissioner Scott Gottlieb, MD, released decisions made on citizen petitions to expand and better define what ingredients fall under the legal definition of “dietary fiber.” Eight new fibers were added to the list: • Mixed plant cell wall fibers (sugar cane fiber, apple fiber, ect.) • Arabinoxylan • Alginate • Inulin and inulin-type fructans • High amylose starch (resistant starch 2) • Galactooligosaccharide • Polydextrose • Resistant maltodextrin/dextrin “Consumers can be assured that non-digestible carbohydrates counted as fiber on the new Nutrition Facts label have health benefits grounded in scientific evidence,” commented Commissioner Gottlieb. “Eating foods rich in dietary fiber, as recommended by the Dietary Guidelines for Americans, can help cholesterol levels, increase feelings of fullness (satiety) resulting in reduced calorie intake, and increase the frequency of bowel movements.” Food manufacturers now have additional clarity to help them move forward to update labels as needed ahead of the compliance date for the updated Nutrition Facts label, which is Jan. 1, 2020 for manufacturers with $10 million or more in annual food sales and January 1, 2021 for smaller manufacturers. “Our goal is to make sure that consumers can trust that the latest, tasty fiber-rich snack food or cereal that comes on the market can offer them some real health benefits,” commented Commissioner Scott Gottlieb.
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Top 5 Bakery Trends for 2018 Everyone seemingly has an opinion of what’s hot and what’s not in food. With input from culinary trend watchers and he Bakery.com’s own conversations with bakers, here are Bakery.com’s top five bakery trends for 2018.
years by its producer Barry Callebaut, the pink chocolate is reportedly not as sweet as milk chocolate and has a hint of berry flavor. It’s chocolate and it’s pink! What’s not to love? The creative bakery applications are endless.
Trimmed Down Product Lines Bakery operators will trim down their product lines, offering their best-selling products and seasonal favorites. Finding that balance between offering a variety of bakery products to appeal to more consumers and offering products that are truly profitable can be achieved by examining product lines and the true cost of production. Popular products two years ago may need a revamp or to be dropped all together. Big chains, like Dunkin’ Donuts, are scaling back. In 2018, bakeries of all sizes will cut the slack and focus on what they do best, changing products seasonally to keep it interesting.
Just Desserts and Drinks Too “Bars” that specialize in pies or other desserts paired with alcoholic drinks, coffee, and/or tea beverages are hot. Pie Junkie in Oklahoma City, Florence Pie Bar in Florence, Mass., and Patisserie Chanson’s Dessert Bar are just a few establishments making a hit out of scratchmade sweet treats served in a cool, inviting setting. More consumers see dessert as an “any time occasion”, according to a recent report by Technomic, so look for entrepreneurial bakers and pastry chefs to provide people the hot hang outs for sweet treats.
Black is the new Black Whether it’s the somber mood brought on by political unease or simply a backlash to the rainbow-unicorn everything last year, black and darker hues are making a comeback in food. We likely won’t see the black hamburger buns made with activated charcoal that are catching on in Japan. But, we do think bakery customers will have a growing affinity to the darker side of things. Bring on the dark ryes, dark chocolate treats and black icings! And, why not offer both…rainbow bagels to lighten the mood and the black versions for the office Grinch. Pink Chocolate Creativity As for new and exciting colors, ruby chocolate will show up in more bakery products, pastries, and desserts. Promoted as the first new chocolate flavor in 80
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Exotic and Classic Donuts Funky donut shops with fun, exotic donut flavors have been a hit for a while now, and we see this trend continuing. Consumers still want to splurge. And when they do, fresh-fried donuts with interesting flavor combinations (s’mores, maplebacon, blueberry-lemon cheesecake flavors, to name a few) are hard to beat. Crowds still want the classic glazed and old-fashions too, but they want fresh, high-quality versions worth waiting in line and cheating on diets for. Exotic donuts are hot on restaurant dessert menus too. “Doughnuts with nontraditional filling is the fastest-growing trend: More chefs voted for it this year compared to last year than any other trend,” writes Brett Thorn, Nation’s Restaurant News.
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Southeastern Grocers Announces 100 Remodels Restructured and now in a stronger financial position as it emerges from Chapter 11 bankruptcy, Southeastern Grocers is launching a plan to remodel 100 of its 575 supermarkets. “We’re now able to move with a much more powerful velocity,” CEO Anthony Hucker said last week in an interview, according to Jacksonville’s Daily Record. He added, in regard to its own restructuring, “The customer won’t see anything. This doesn’t reflect on anything we do on a day-to-day basis.” Hucker said the company uses focus groups with customers to find out what they want in their local stores. “I always believe the customer is the boss,” he told the news source, explaining that the coming upgrades attempt to address those needs. One suggestion the Daily Record noted inspired the creation of a “Dollar Shop” in the Brierwood neighborhood’s store, a section with hundreds of low-priced and convenient items.
Millenial Parents Remain Loyal Despite Cheaper Options Almost half of millennial parents remain loyal to a brand despite cheaper options, compared with 30% of other parents, according to the National Retail Federation. 52% will remain loyal despite more convenient options, and 64% will shop at a brand they are loyal to before looking at a competitor.
As previously reported, the retailer announced last month that the United States Bankruptcy Court for the District of Delaware confirmed its restructuring plan, which will allow the company to decrease its overall debt levels by approximately $600 million, nearly two months after declaring it would go through Chapter 11 bankruptcy. In the reorganization, Southeastern exchanged equity shares in the company for debt, emerging from Chapter 11 with no one owner and the mindset of sponsorship rather than ownership. “There’s a slew of companies” which were issued stock, Hucker said. “It’s effectively an ad hoc consortium. We refer to them all as our sponsors.” Southeastern Grocers operates about 575 supermarkets in seven states under the Winn-Dixie, Bi-Lo, Harveys, and Fresco y Mas banners.
Subscription services for automatic restocking are used by 40% of millennial parents, and 86% have used same-day shipping. Millennial parents are also quick to turn to smartphones during shopping. The study found 78% of the cohort uses phones to research products, 75% to check prices or availability, and 71% to pay at checkout. Parents in other demographics use smartphones for those activities 58%, 58%, and 51% of the time, respectively.
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RETAILER NEWS In salute of its admired efforts to bring healthy, affordable food to a growing number of communities, as well as its abilities to propagate its brand with a welloiled, high-performing mix of products, people, services, in-store experience and e-commerce, Sprouts Farmers Market has been named as WGB’s 2018 Grocery Business of the Year. A true pacesetter and industry achiever on multiple fronts, the Phoenix-based retailer’s unwavering dedication to wellness and value provides it with a distinct edge as part of its overarching “healthy living for less” mantra, which manifests in its welcoming stores, knowledgeable team members and laser-sharp merchandising. Specializing in fresh, natural and organic products at prices that appeal to everyday grocery shoppers, Sprouts offers a complete shopping experience in its average 30,000-square-foot stores, where fresh produce serves as the epicenter. With nearly 300 locations in 15 states and more than 27,000 team members, Sprouts’ demonstrated investments in technology, infrastructure and e-commerce are fitting with its strong financial performance, on-point execution, trusted relationships with vendors and suppliers, commendable community and charitable involvement, and exceptional environmental stewardship. Renowned for its wide selection of products in unique categories—such as plant-based and gluten-free, vitamins and supplements that exceed 7,500 products, an expansive selection of purely natural and cruelty-free beauty and body care products, a bodacious bulk foods department, and a breadth of natural and organic products—Sprouts has simultaneously earned a stellar reputation for value. In fact, at any given time, roughly one-third of the store is on promotion. To be sure, Sprouts Farmers Market has perfected a formula that’s made it difficult for its conventional grocery counterparts to replicate.
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Sprouts Named 2018 Grocery Business of the Year
Impassioned Mission Intent on becoming the preferred food retailer in the markets it serves, Sprouts’ pragmatic philosophy is predicated on a singular goal. “We’ve always believed that healthy food should be available to everyone,” says CEO Amin Maredia. “We’re a healthy grocery store that appeals to mainstream consumers interested in fresh, natural and organic products at affordable prices.”
Guided by a “passion statement”—as opposed to a mere mission—Maredia effuses confidence when evangelizing the company’s creed. “We believe healthy living is a journey and every meal is a choice. We love to inspire, educate and empower every person to eat healthier and live a better life,” he says, speaking on behalf of the company’s 27,000-plus “knowledgeable team members, who bring this belief to life, and who are eager to support customers on their journey to better health.” As its national expansion progresses, Sprouts continues to tinker with its formula, most recently dispersing extra firepower to its fresh, convenient, on-the-go options hailing from its high-volume Market Corner delis and adjacent prepared foods departments. Other recent additions such as salad bars, freshly squeezed juice, olive bars, fresh sushi and soup bars in many of its stores have also paid off handsomely for the fast-growing retailer—as has an expanded selection of fresh prepared foods from its full-service deli case. Several new options have also been added in refrigerated areas, which serve up readyto-eat, ready-to-heat and ready-to-cook meals.
“These deli enhancements are in close to half of our stores today and are truly changing the way our guests shop at Sprouts—particularly during the noon and 5 p.m. hours,” says Maredia, noting that they’re embedded in most of its new stores and are “performing extremely well.” To further enrich its fresh credit, Sprouts continues to augment its meat departments, which feature in-house butchers in every store who are trained to fresh-cut meat and assist guests with product selection, seasoning, cooking tips and custom cuts. “Engaging our guests in service-heavy departments like The Butcher Shop not only builds trust with transitional shoppers, but also encourages repeat visits,” says Maredia. To support continued growth, the chain has also upped investments in team member training. “We’re known for knowledgeable and friendly service and are always looking to raise the bar,” he says, pointing to its intensive 10-week meat apprentice program as an example. As workforce competition continues to heighten, Sprouts is prioritizing leadership development, pay and benefits alongside fostering a culture of engagement. The retailer also plans to invest approximately one-third of the savings from the Tax Cuts and Jobs Act of 2017 to further enhance those efforts while increasing pay and improving benefits, including healthcare and expanded maternity leave. Behind the scenes, the company is investing in technology with several projects aimed at driving sales and margin effectiveness, as well as improving demand forecasting and data analytics to enhance in-stocks, reduce shrink and optimize labor.
RETAILER NEWS Brookshire Grocery Co. Celebrates 90 Years in Business Brookshire Grocery Co. has a rich history dating back to 1928 when Wood T. Brookshire opened a small, 25-ft. x 100-ft. store in downtown Tyler, Texas. Article Source
Tops Market Settles Pension Dispute in Bankruptcy, Saves $180M
In the beginning, Wood was in a partnership with five brothers operating under the “Brookshire Brothers” name. In 1939, the partnership dissolved and Wood became the sole owner of three stores in Tyler that serve as the cornerstone for today’s Brookshire Grocery Co. Wood founded the company with a foremost concern for the wellbeing of others, and his dedication to his business and to his customers are characteristics that continue to influence the company today.
The company had the distinction of operating the first air-conditioned Tops Markets is making ground in its bankruptcy case after settling a grocery store in East Texas. It opened in Tyler in 1939. major pension dispute that could have cost the company more than $180 million, according to a report by The Buffalo News. While the As the company grew, more stores continued to open across East deal, struck between Tops, C&S Wholesale Grocer, and Teamsters Texas, and Brookshire’s opened its first grocery warehouse in 1953. Local 264, still needs to go before a U.S. Bankruptcy Court judge for approval during a hearing on June 21st, the settlement would resolve one of the retailer’s biggest financial hurdles. “We are pleased to have reached an agreement in principle with the Teamsters, which will allow us to provide important benefits to Teamsters’ members,” said Tops Public & Media Relations Manager Kathleen Romanowski. “It represents an important milestone in our financial restructuring efforts.” If approved, the deal allows Tops to forego an expense of $100 million and resolve an ongoing disagreement of the last four years that has affected the retirement funds of more than 600 workers at a grocery warehouse in Lancaster that Tops acquired in December of 2013. As part of the deal, Tops, C&S Wholesale Grocers, which supplies about two-thirds of Tops’ merchandise, and the Teamsters, who represents the warehouse workers, will contribute a total of $15 million, which averages about $25,000 per eligible employee. This money will help replace part of the pension benefits that the warehouse workers would have accumulated since the end of 2013. While the payment will not fully reimburse the warehouse workers, the Teamsters union is working on economic models to determine the best way to use the funds to offset the impact on workers, said Teamsters Local 264’s President Brian C. Dickman in a letter to workers. As part of this economic model, the Teamsters is working on saving up its finances by providing the settlement with a cash infusion through the payment of the withdrawal liability that had been in dispute. According to The Buffalo News, C&S Wholesale Grocers will pay Tops’ obligation that is currently valued at nearly $95 million in today’s dollars. Tops has already paid $29 million toward that obligation, and, as a result, C&S will pay about $65 million to cover the rest of the money owed to the pension fund. Will Tops Markets’ continue out of the bankruptcy trenches?
Today the company operates three distribution facilities—two based in Tyler, Texas, and one in Monroe, Louisiana—with more than 2 million total s.f. and a company fleet of 73 tractors and more than 300 trailers. Through the years, the company continued to experience steady growth and expanded across state lines into Louisiana and Arkansas, bringing the service and quality of Brookshire Grocery Co. to more areas. Today, Brookshire Grocery Co. employs close to 14,000 partners and operates more than 180 stores in Texas, Louisiana and Arkansas, under four distinct banners: • Brookshire’s Food Stores—The company operates more than 100 of these full-service supermarkets, which are focused on excellent customer service and high-quality fresh meats and produce. • • Super 1 Foods Stores—There are close to 50 of these full-scale supermarkets focused on high-quality fresh meats and produce, value pricing and helpful staff and service. • • FRESH by Brookshire’s—A destination market specializing in natural, organic and chef-prepared foods with cut-to-order meats, specialty cheese, local produce, an artisan baker, fresh flowers, patio dining, live music and the best selection of wine and craft beer in East Texas. • • Spring Market—The company’s newest banner, established in 2016, offers a full shopping experience, great prices and a focus on community involvement and superior customer service. Brookshire Grocery Co. is moving forward toward an exciting future, guided by the core values it was founded on in 1928. W.T. Brookshire believed the grocery business was his calling to serve others, and service continues to be the company’s driving force. Article Source
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SHOWS & EVENTS Summer Fancy Food Show New York City, NY June 30-July 2, 2018
UNFI & Allegiance Winter Wonderland Shipper Show Woodbridge, NJ July 12, 2018
Jewel Holiday Shipper Show Oak Brook, IL July 12, 2018
Albertsons Safeway Southern Division Show Dallas, TX July 16-17, 2018
ACME Holday Show Pennsville, NJ July 24, 2018
Market Centre-SuperValu National Expo St. Paul, MN July 24-26, 2018
Valu Merchandisers Company Overland Park, KS August 7-9, 2018
MDI Food Show Hickory, NC August 13-15, 2018
KeHE Fall Table Top Dallas, TX August 15, 2018
SproutsFest Grapevine, TX August 19-21, 2018
Tony’s Fine Foods San Francisco, CA August 22, 2018
Expo East
Baltimore, MD September 13-15, 2018
UNFI North Atlantic Showcase Uncasville, CT October 2-4, 2018
KeHE Spring Show Salt Lake City, UT October 3-4, 2018
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C.A. FORTUNE