California Grocer, Issue 1, 2023

2023, ISSUE 1

CALIFORNIA GROCERS ASSOCIATION

Leading the Industry

FRESH INNOVATION

HIGH TECH VS. HIGH TOUCH

IN MOTION

Ralphs celebrates 150 years in business and looks towards future innovations

Navigating the burnout paradox through modern leadership

Headlite Joe Perez is moving The Illuminators forward with the help of the next generation

PAGE 14

PAGE 28

PAGE 34

We’re sweet on California growers.

Sincerely, Fresh Berries

AVOID FINES. SAVE LIVES. FOLLOW THE LAW. IT’S NOW ILLEGAL IN CALIFORNIA TO SELL MOST FLAVORED TOBACCO PRODUCTS, INCLUDING VAPES AND MENTHOL CIGARETTES. FOLLOW THE LAW TO PROTECT KIDS FROM A LIFETIME OF DEADLY ADDICTION.

MAKE SURE YOU’RE FOLLOWING THE LAW AT NOFLAVORS.ORG © 2023 California Department of Public Health

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS

Chair Dennis Darling Foods Etc.

First Vice Chair Lynn Melillo Bristol Farms

Treasurer Michel LeClerc North State Grocery

Immediate Past Chair Renee Amen Super A Foods

Second Vice Chair Steve Dietz United Natural Foods, Inc.

Secretary Richard Wardwell Superior Grocers

Denny Belcastro Kimberly-Clark Corporation

Joe Mueller Kellogg Company

Karl Schroeder Albertsons Companies

JB Ryan MolsonCoors Beverage Company

Independent Operators Committee Chair

Elliott Stone Mollie Stone’s Markets

DIRECTORS

Mary Kasper 99 Cents Only Stores

Chris Dehoff Dehoff ’s Key Market

Jonson Chen 99 Ranch (Tawa Supermarket, Inc.)

Casey Scharetg E. & J. Gallo Winery

Greg Sheldon Anheuser-Busch InBev Brendan McAbee Bimbo Bakeries USA

Sergio Gonzalez Northgate Gonzalez Markets

Adam Salgado Heritage Grocers Group dba Cardenas Markets

Eric Pearlman C&S Wholesale Grocers

Chang So Hollister Super, Inc.

Jon Giannini Nutricion Fundamental, Inc.

Donna Simpson Certified Federal Credit Union

Andrew Nodes Instacart

Joe Angulo Chedraui USA, Inc. (FKA Bodega Latina Corporation)

Nancy Krystal Jelly Belly Candy Co.

Michael Molinar PAQ Inc. dba Food 4 Less & Rancho San Miguel Markets

Elaina Budge Costco Wholesale (Bay Area)

President/CEO Ronald Fong Senior Vice President & Chief Operating Officer Doug Scholz Senior Director Events & Sponsorship Beth Wright Senior Director Communications Nate Rose Director State Government Relations Leticia Garcia Director Local Government Relations Tim James

2 | CAL I FOR N I A G RO C E R

Pamela Burke Grocery Outlet, Inc.

Subriana Pierce Navigator Sales and Marketing

Karl Wissmann C & K Market, Inc.

Brian Pohl Classic Wines of California

CALIFORNIA GROCERS ASSOCIATION

Tim Mahoney Gelson’s Markets

Bryan Jankans Mondelēz International Inc.

Scott Silverman KeHE Distributors, LLC Kelli McGannon King Soopers Tyler Kidd Mar-Val Food Stores, Inc. Director CGA Educational Foundation Brianne Page Director Administration & Human Resources Jennifer Gold Senior Manager Marketing & Membership Sunny Porter Communications Specialist Grace Becker Business Development Manager Bailey Dayen

Saj Khan Nugget Markets

Jeff Severns PepsiCo Beverages North America Tim Nowell Procter & Gamble Josh Southerland Reyes Coca-Cola Bottling LLC Administration & Programs Coordinator Miriam Ellis Controller Ion Bazgan Senior Accountant & Assistant Office Manager William Quenga

Brandon Lombardi Sprouts Farmers Market Bertha Luna Stater Bros. Markets Jake Fermanian Super King Markets Rick Stewart Susanville Supermarket IGA Brent Cotten The Hershey Company Tiffany Menyhart The Kraft Heinz Company Donovan Ford The Save Mart Companies Bethany Pautsch Tyson Foods, Inc. Jeff Schmiege Unilever Diane Snyder Whole Foods Market – Southern Pacific Region

For association members, subscription is included in membership dues.

Subscription rate for non-members is $150. © 2023 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com

California Grocer is the official publication of the California Grocers Association. Editor Nate Rose 1005 12th Street, Suite 200 nrose@cagrocers.com Sacramento, CA 95814 Assistant Editor (916) 448-3545 Grace Becker (916) 448-2793 Fax gbecker@cagrocers.com cagrocers.com For advertising information contact: Bailey Dayen bdayen@cagrocers.com

CONTENTS | ISSUE 1

FEATURES COLUMNS

14 Ralphs Celebrates 150 Years After a century-and-a-half in business, Ralphs is innovating for the future while keeping customers old and new at the heart of the company.

20

g n i n e t s i L f o e r Cultu

Create a Culture of Listening to Maximize Employee and Customer Loyalty

Leadership consultant and author Heather R. Younger on transforming your workplace culture and empowering employees through the simple act of listening.

President’s Message Leading the Industry. . . . . . . . . . . . . . . . . . .

5

Chair’s Message Connecting Locally.. . . . . . . . . . . . . . . . . . . .

6

Viewpoint Chat Me Up. . . . . . . . . . . . . . . . . . . . . . . . . . .

8

Inside the Beltway Food Industry Policy Priorities Take Shape for 2023. . . . . . . . . . . . . . . . . . . . 10 Capitol Insider

Grocery Legislative Objectives Come into Focus. . . . . . . . . . . . . . . . . . . . . . 13 Mommy Blogger Kids These Days. . . . . . . . . . . . . . . . . . . . . . . 48

DEPARTMENTS CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 CGA New Members. . . . . . . . . . . . . . . . . . . 43 Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 46

28 High-Tech vs. High-Touch: Navigating the Burnout Paradox Through Modern Leadership Author Hamza Khan walks through the root causes of burnout in the workplace and offers ideas to modernize your approach to leadership.

34 In Motion: Headlite Joe Perez is Leading The Illuminators Forward with the Help of the Next Generation As he wraps up the final few months of his term as 93rd Headlite and President, Joe Perez is engaging industry up-and-comers.

CAL I FORNIA G RO CER | 3

on an impressive

150 YEARS OF SERVICE

to the communities of Southern California

1873 - 2023

1-800-446-0190 or visit www.cswg.com

PRESIDENT ’S MESSAGE

Leading the Industry

RO N F O N G PR ES IDEN T AN D CEO CALIFOR N IA GR OCER S AS SO CIATIO N

Why leadership is an exercise in vision This issue, “Leading the Industry,” sets aside a moment to take stock of the ideas, individuals, and a retailer that are shaping the grocery community.

Whether it’s Ralphs celebrating 150 years in business—congratulations, by the way— while plotting a path into the future, or Joe Perez’s work connecting the illustrious history of The Illuminators to its role forming industry leaders, the fast-changing nature of retail requires serious vision.

Issue one also delves further into the ideas presented at the Independent Operators Symposium, which took place in January.

If you joined us in Maui, great, these features allow a second look at some worthwhile ideas. If you weren’t able to attend this year’s Symposium, there’s much to learn from Symposium speakers Hamza Khan and Heather R. Younger. Namely, these two sections focus on burnout’s effect on the workplace and personal lives while developing the concept of caring leadership.

I’ve been thinking a lot about leadership. Recently, I was highlighted as a “Top CEO” by C Level Focus magazine. It caused me to reconsider the character of leadership and the value of positive models on those only beginning to build their managerial acumen.

Similar to so many of you in the industry, my own path began at a grocery store. That experience in my family’s grocery business, witnessing the daily hard work required by my grandfather and my parents, showed me the value of work ethic.

In the association-management business I’ve had the luxury of learning that and so much more from other CEOs and past CGA Board Chairs and Members alike.

The one thing all forms of leadership have in common is vision. Leaders must have a vision for how a store will run, how an organization operates, or the way

a workplace interacts with its workforce.

I think that’s the connecting thread between the different demonstrations of leadership presented in this issue.

Famous leadership writer Warren Bennis once said, “Leadership is the capacity to translate vision into reality.” I hope CGA’s first issue of 2023 helps inspire your thinking around leadership and your actions as a leader within your company. ■

CAL I FORNIA G RO CER | 5

CHAIR’S MESSAGE

Connecting Locally

DEN N I S DA R L I N G FOODS E TC.

It’s time to build deeper relationships with elected officials in the communities we serve As I start my year as chair of the California Grocers Association, I’m proud to be leading an organization that advocates for the entire grocery industry. Our members are the largest, most sophisticated chains, regional powerhouses, single-store operators, and the businesses that support them. CGA provides support and advocacy for members operating over 6,000 stores, many of which are independents operators like me.

Most independent grocery companies don’t have the size or resources to run their own government relations, compliance, training, or risk protection departments, and CGA is the resource that allows them to stay current. As a single-store independent, I know it would be impossible to operate in California without CGA to help us stay informed and compliant.

Many of the regulation and compliance requirements that affect our industry happen at the state level, and CGA does an admirable job affecting policy and legislation in a political environment that is often very difficult for the grocery industry.

The Association is also one of the few that has already built out a local government advocacy program in house. Still, we need to do more.

6 | CAL I FOR N I A G RO C E R

That’s because the interplay between state and local is increasingly fluid. About 70% of the current Legislature has experience at the local level, and in many cases, we’re seeing state legislators return to the local level after their terms have expired. This movement means many policy fights now occur everywhere and all at once.

Advocacy is something we hear a lot about, but we might not fully understand its complexity.

For starters, reaching out to a local official about your business is a great way to educate them on your position.

Even if there’s no pressing issue at the moment, it never hurts to engage your representative and start a relationship.

At some point, you can be sure regulations, laws, or policy issues that affect your business will come up, and if you’re already familiar with your representative, you’ll have laid the

groundwork for an open dialogue and deeper understanding of your business.

The actions of political leaders impact our day-to-day operations, and they can limit our business’ ability to succeed—yet most businesses don’t engage in local lobbying activities. In smaller rural areas this is an easier proposition since the elected officials are often personally involved with local organizations and likely have a better grasp of the importance of grocery stores in the community. It is more difficult in larger cities and metro areas, but the grocery store is still the most important business in town. As an industry we need to do a better job educating local officials about who we are and how vital we are to our communities.

This may sound great on paper, but how do I start this relationship you may be asking?

Well, it’s important to connect on a personal level with elected officials as well on a business level. Here’s an easy way to get started.

• Attend a function where your representative is participating—this could include community roundtables, chamber meetings, town halls, or local council or county supervisor meetings.

Once you’ve met, a great approach is to treat them like you would a business partner.

You’ll want to build a bond, which requires time and effort, so get to know them and their background.

It’s also important to show appreciation for their time and attention, so try to treat them more like public servants than partisan politicians. Thank them for their time and service, make every effort to stay positive and focus on shared objectives—for your business, the industry, the economy, and the community.

iStock

Happy

150

th

Anniversary!

Anniversary!

CGA is an excellent resource to help you identify the right people to contact and the possible issues that are important to your community. I would encourage you to reach out to Director of Local Government Relations Tim James, who will work with you to develop an outline for building local connections and best practices to educate local officials about the importance of our industry in your community.

I look forward to working closely with our members this year to support our industry. ■

Cheers to Ralphs for celebrating 150 years! ©2023 Talking Rain Beverage Company • Sparkling Ice® is a registered trademark of Talking Rain. 202302715275

from your your friends friends at at from

talkingrai-113321-202302715275_si_ralph-s150thanny_ad_3.indd 3

03/03/2023 15:12

CAL I FORNIA G RO CER | 7

VIEWPOINT

Chat Me Up

K EV I N CO UPE FOUN DER MOR N IN GN EWS BE AT.COM

One of my favorite TV series growing up was “Mannix,” which ran for eight seasons on CBS between 1967 and 1974. But unlike most fans of the series, my favorite season was the first, which actually was sort of prescient about how the world has changed.

In season one, private eye Joe Mannix was employed by Intertect, a detective agency that relied largely on enormous mainframe computers for intelligence gathering and strategizing. The initial concept, developed

by Richard Levinson and William Link (who shortly thereafter created a show called “Columbo”), was that Mannix (Mike Connors), a self-described “hardboiled private eye in the classic tradition,” would rebel against the idea that a computer could do his job; he preferred the oldfashioned method of talking to people and settling disputes with his fists and occasionally in a gunfight. Therein would lie tension that would be played out for myriad dramatic possibilities.

the owner of the studio that produced it, Lucille Ball, liked the show and had a lot of clout with CBS).

better, faster, and cheaper. (I don’t own a gun and I’m too old to get in a fistfight, so those options are not open to me).

I tell you all this because I’ve been thinking a lot about that first season of “Mannix” lately as ChatGPT technology gets an enormous amount of attention.

So … I decided to test it out. I went on ChatGPT and made a request: “Please write an article about how California food retailers should use technology in general, and ChatGPT technology specifically, in their businesses and even in their stores.”

In season two, they abandoned the format because the man vs. computer concept wasn’t resonating with viewers. (Go figure).

The show moved to a more traditional format, with Mannix self-employed and his secretary, Peggy, was equipped only with an IBM Selectric typewriter, and not a computer in sight. (The only reason that “Mannix” even got a second season was because

ChatGPT, as you probably know, is an AI model that, in the words of the company, “interacts in a conversational way. The dialogue format makes it possible for ChatGPT to answer follow-up questions, admit its mistakes, challenge incorrect premises, and reject inappropriate requests.”

8 | CAL I FOR N I A G RO C E R

Like a lot of folks, I’ve been curious. Also mildly worried, since, like Joe Mannix, I don’t want my job to go away because AI can do it

Here’s what I got back … in about 30 seconds: California is a hub for innovation and technology, and the food retail industry is no exception. As consumers become more tech-savvy and demand convenience and speed, food retailers in California must adapt and embrace technology in order to stay competitive.

One way that California food retailers can use technology to their advantage is by incorporating chatbots like ChatGPT into their businesses. ChatGPT is a powerful language model that can be used to provide customers with quick and accurate answers to their questions, helping to improve the customer experience and drive customer loyalty.

VIEWPOINT

iStock

For example, ChatGPT can be integrated into a retailer’s website or mobile app, allowing customers to ask questions about product availability, store hours, and even recipes. ChatGPT can also provide realtime customer support, allowing retailers to quickly address customer concerns and resolve any issues.

In addition to improving the customer experience, ChatGPT can also help California food retailers to streamline their operations and reduce costs. ChatGPT can be used to automate tasks such as order processing, inventory management, and customer service, freeing up staff to focus on more high-value activities.

In the future, we may see even more widespread use of ChatGPT in California food retail stores themselves. For example, retailers could use ChatGPT to assist customers in finding the products they need, providing recommendations based on past purchases, or even helping customers navigate store layouts and find the best deals.

Ultimately, the use of ChatGPT technology in California food retail businesses can help retailers to improve the customer experience, increase efficiency, and remain competitive in an ever-changing market. So, if you’re a food retailer in California, consider incorporating ChatGPT into your business strategy and take advantage of the many benefits that this technology has to offer.

The article is just shy of 300 words, which is a lot shorter than my usual columns run.

That is my fault—I could’ve asked for an article of no fewer than 800 words, which is what CGA wants me to write.

While the article seems relatively accurate, in some ways it has relieved my concerns.

ChatGPT didn’t really offer any nuance or context for its assertions, and the writing seemed flat.

For example, it didn’t point out that Apple and Amazon and Meta and Google all almost certainly are developing their own versions of ChatGPT, which could create a kind of space race as these companies look to accumulate market share in this segment.

Amazon, especially, would seem like a prime candidate for implementation, since it already has sold some 100 million Alexabased devices.

That said, I think ChatGPT gets one thing right—that there is enormous potential in technologies like this one for retailers, who could use the technology as a sales and education tool in their stores. Imagine being in the produce department, having a question, and being able to use this tech to ask questions about nutrition, recipes and the like, in addition to asking for product or category locations in the store. To be clear, consumers won’t need retailers to do this since the vast majority have smartphones.

But retailers would be wise to figure out ways to be part of the process, adding to the value of the physical retail or online experience.

And if in this case ChatGPT didn’t provide nuance or context, it is important to remember that the technology only is going to get better. And smarter. And faster.

And, heaven help us all, more able to be nuanced, contextual, and even instinctive in its responses.

Every business ought to designate a kind of ChatGPT team. It should be small, and made up of people who either are young, or who have a young person’s sensibilities and ability to be open-minded.

The charge would be this: Play with the technology. Come up with ways in which we can use this for both back room and front-of-house interactions. Make sure your recommendations range from the ridiculous to the sublime. And then, the company should start making some smart, strategic bets that insert them into the conversation, with the goal of finding ways to get closer to customers and becoming more relevant and resonant in their lives.

And if you can’t figure out how to do that, ask ChapGPT. At some point in the not-toodistant future (like, maybe tomorrow?), it’ll almost certainly have the answer. ■

CAL I FORNIA G RO CER | 9

INSIDE THE BELTWAY

Food Industry Policy Priorities Take Shape for 2023 J EN N I F ER H ATC H ER CHIE F PUBLIC POLICY OFFICER & SENIO R VICE P RESIDENT, FOOD MAR K E TIN G IN S T ITUTE

With the 118th Congressional legislative session getting underway, FMI is advocating for significant policy outcomes this year in support of our membership.

In January at FMI’s Midwinter Executive Conference in Orlando, our Board of Directors met to discuss their key policy priorities for 2023. We asked the Board to rank 12 different issues and identify those that they felt were the most important for FMI advocacy. It was a great exercise that resulted in the Board coalescing around five top issues that they see as critical to address in order to best position the industry for success in 2023 and beyond. These include: Labor Workforce Supply and Regulatory Enforcement: The food industry continues to face a significant workforce shortage, despite efforts to increase wages and benefits and provide flexible work schedules. Food retailers and product suppliers continue to strive for creative solutions to enable the industry to attract and retain talent and further invest in their employees. Additionally, the current labor and employment regulatory environment is inflexible and burdensome for employers and threatens to significantly hamper the food industry’s ability to grow its workforce. FMI will advocate in this area for more flexible rules that can enhance our labor participation.

10 | CAL I FOR N I A G RO C E R

Food Safety

Payments

Traceability: Nothing is more important to FMI and our members than food safety. Issued in November 2022, the Food Traceability rule was one of the last remaining regulations required under the Food Safety Modernization Act (FSMA).

Unfortunately, the rule complexity and scope deviates significantly from a law designed to focus on tracing high-risk foods, not tens of thousands of products. FMI will be outlining to Congress and FDA the flexibilities and changes needed in order for companies to even begin to develop compliance strategies for the rule.

Swipe Fee Reform and Credit Card Competition: Credit Card Competition: Grocery merchants and our customers have had to shoulder skyrocketing costs associated with credit card purchases for decades but pandemic changes took these to a new level of impact. FMI will push for reform of the broken credit card market to foster competition and bring financial relief to consumers and main street businesses during these challenging economic times. FMI will work for reintroduction and passage of bipartisan, bicameral legislation this year.

FMI 2023

INSIDE THE BELTWAY

Pharmacy

Economy

PBM Reform: Due to the anticompetitive practices of many pharmacy benefit managers (PBMs), it is a struggle to keep supermarket pharmacies in business— particularly in underserved, low-income, rural, and urban neighborhoods. Patients, physicians, and employers that provide health care coverage share our deep concerns. Increased PBM oversight and transparency reform are necessary to reduce drug costs and preserve access to supermarket pharmacies. FMI is pushing for legislative and regulatory solutions both federally and in the states.

Inflation: A number of factors continue to negatively impact the food supply chain and contribute to elevated food prices, including the remnants of the COVID-19 pandemic, severe weather events, labor shortages, and global conflict. Policies that address these root causes are needed to bring food price inflation down and provide relief to American families. We are communicating in the media and with legislators every time CPI is released.

Of course, this list of priorities isn’t exhaustive. Other critical policy areas in which FMI and our members are engaged include reauthorization of the Farm Bill,

strengthening federal nutrition assistance programs, addressing ongoing supply chains challenges, improving sustainable packaging and recycling, reducing food waste, and ensuring safe shopping experiences for customers in communities across the country.

As the 118th Congress begins its work in earnest, we see plenty of opportunities on the horizon to engage policymakers and regulators in developing solutions that address the biggest challenges our industry faces. FMI looks forward to working with Congress in a bipartisan manner to ensure our members continue to be able to fulfill their mission to feed families and enrich lives. ■

CAL I FORNIA G RO CER | 11

Congratulations

Ralphs on 150 years!

On behalf of Mission Foods

missionfoods.com ©2023 Gruma Corporation.

MissionFoodsUS

CAPITOL INSIDER

Grocery Legislative Objectives Come into Focus LO UI E B ROW N IN T HE S ACR AME N TO OFFICE O F KAHN, S OAR E S AN D CON WAY, LLP

The new legislative session is off to a hot start, bringing thousands of new bills and a full slate aimed at the grocery industry Brown

The 2023 Legislative Session has kicked off in high gear. With nearly 30% of the Legislature being new members, a considerable amount of time has been spent with “meet and greet” sessions to introduce our industry and our issues.

The session has been joined by an Extraordinary Session called by Gov. Gavin Newsom to address excess profits generated by the petroleum industry. What was rumored to be a session focused on windfall taxes has morphed into a discussion about profit margins and whether the government should be involved in determining the appropriate margin for a product produced in California.

If legislation is passed impacting one industry, what’s to stop the Legislature from doing the same to another industry the next time someone believes prices are too high? That will no doubt be on many industries’ collective minds as this discussion progresses through the Legislature.

If there were any doubts about the Legislature recovering from the COVID pandemic, one only needs to look at the number of bills introduced; a total of 2,632. While more than 1,000 of the bills are spot bills, most will likely be amended into substantive language and referred to a

committee. Of the bills introduced so far, a number of them could have an impact on the grocery industry. Here are some of the bills we are monitoring: AB 647 (Holden) – Grocery Workers This bill is a grocery worker retention measure, similar to the ordinance passed

by Los Angeles County a few years back.

AB 660 (Irwin) – Food Labeling This bill would require all products to use “Best if used by” or “Use by” to communicate expiration dates to the consumer and prohibit the term “sell by.”

AB 853 (Maienschein) – Grocery Workers The bill would prohibit a successor grocery store employer to cause a grocery establishment located in a geographic area designated as a food desert to cease being fully operational and open to the public until notice is provided to the city council, city attorney, board of supervisors, county counsel, State Department of Public Health, and Attorney General 180 days before the establishment ceases to be fully operational and open to the public.

The bill would require the notice to include, among other things, a written analysis and explanation, including data, on how residents living in the geographic area will be able, at

a comparable cost, including transportation cost and time off work and childcare costs, to purchase food.

SB 627 (Smallwood-Cuevas) – Displaced Worker Transfer Rights Act This bill prohibits an owner from closing a store unless a displacement notice is provided to the employees at least 60 days before the closure. All covered employees would be provided employment for up to a year after the closure.

SB 777 (Allen) – Reusable Plastic Bags This bill would require any store that charges for a reusable plastic bag to submit data to CalRecycle that includes the actual cost of the bags and actual compliance costs with the existing plastic bag laws. CalRecycle would also be authorized to conduct audits of stores to ensure compliance with the data submission.

These are only the grocery-specific bills.

There are at least a dozen other bills impacting all kinds of businesses that CGA will be actively and aggressively combatting, including expansion of paid sick leave; a four-day work week; device inspection fees; and local living wages.

It going to be a busy year, but your CGA Government Relations Team is ready to tackle it. ■

CAL I FORNIA G RO CER | 13

14 | CAL I FOR N I A G RO C E R

CELEBRATES 150 YEARS

By Jessica Love

After 150 years in business, Ralphs is charging ahead as one of the most beloved grocery banners among shoppers in Southern California—and for good reason.

The company has held fast to its traditional values known and loved by customers, while making bold choices and innovating for the future to keep todays and tomorrow’s shoppers at the heart of all they do.

“Ralphs is where our customers love to shop and our associates love to work,” says Vice President of Operations John Sparkenbach, who has been with the company for 43 years.

Founded in Los Angeles in 1873 and acquired by The Kroger Co. in 1998, Ralphs is one of the oldest grocery chains in the United States. Today it serves communities from the border of San Diego all the way up to San Luis Obispo.

Continued on page 16 ▶

CAL I FORNIA G RO CER | 15

◀ Continued from page 15

GENERATIONS OF SHOPPERS & EMPLOYEES Perhaps one of the biggest reasons Ralphs has had such staying power is because the stores are both built into the histories of, and move with the fabrics, of the communities they serve. For more than a century, generations of families have come to rely on their local Ralphs.

In the course of his four-decade career with Ralphs, Sparkenbach has watched other companies come and go, merge and change. But he says that Ralphs holds a special place among its customers as its name means something. Shoppers know that going to Ralphs means friendly associates, finding everything they want under one roof and knowing they won’t be disappointed by their visit.

Ralphs’ emphasis on serving not only local shoppers but its associates have built successful, satisfied teams of associates that grow with the company—another hallmark of the banner’s success.

“It’s the model we have here: ‘Come for a job and stay for a career,’” says D’Amelio. “There are opportunities for anyone and everyone here at Ralphs, and that’s one of the things I love about it.”

Case in point: Brink and Sparkenbach both started as courtesy clerks with Ralphs, and each of them has stayed for their entire careers thus far—Brink for 25 years and Sparkenbach for 43 years. Both have worked their way up through a number of positions, while D’Amelio came to Ralphs 16 years ago from another company and has experienced a similar career trajectory since joining Ralphs.

“We’re still a grassroots grocery store,” he says.

Billy Brink, Ralphs’ grocery merchandiser, said he chose to apply for a job at Ralphs when he was 16 years old because his mom had always shopped there.

“The reason my mom shopped at Ralphs was because my grandma shopped there,” he says.

“And now, my kids now shop there. I know there are a lot of other stories like that.”

Brink is just one story of many in which Ralphs employees and their families are not only the banner’s best shoppers but live in the communities in which they work as well.

“That’s one element that allows us to win and also makes us unique,” Brink says. “We’ve been able to take care of not one person or associate, but generations of families spanning centuries. Our uniqueness to mirror our communities is also what appeals to new shoppers, too.”

That’s a particularly impressive feat in a region that has grown significantly in numbers and diversity over the years, with tens of millions of residents now spanning the sprawling geography of the area.

Division Retail Operations Manager Joey D’Amelio notes that each Ralphs location is an extension of the community it serves, which is what keeps generations of shoppers coming back for more and attracts new shoppers and talent to the area. In each locale, Ralphs is not only a trusted business for customers, but an employer for many people.

16 | CAL I FOR N I A G RO C E R

Sparkenbach notes how the company’s associates show up every day, not just to work but to make a difference and deliver a memorable experience to everyone that walks through the store’s doors— something that sets the team apart.

“Everybody steps up. Everybody’s a partner. Everybody’s a family out here,” he says.

Training programs and continuing education are also an important part of Ralphs’ playbook, especially for associates working at the store leader and assistant store leader levels, which play an integral customer-facing role. Typically, these leaders have already worked at Ralphs for a few years in various roles, and becoming a store leader is the next step of their journey.

Brink is a strong believer that people matter most, and that opportunities for training, which are abundant—including a wonderful store leader program—are key to ongoing growth and development for Ralphs associates.

CUSTOMER EXPERIENCE— FIRST AND FOREMOST A constant commitment to well-trained associates who deliver a positive customer experience has established customer loyalty at Ralphs for decades and will ideally bring them through the doors for years to come.

According to Sparkenbach, there are three core principles that Ralphs focuses on for customer experience: Full, Fresh and Friendly.

Full means that shelves are full every time a customer walks through the door.

Fresh ensures the produce department is stocked with the freshest items customers want, when they want them. Friendly is important in every single service department. Sparkenbach says warm greetings and friendly interactions keep loyal customers coming back.

D’Amelio echoes the importance of friendliness in the customer experience.

“Our job is to provide an awesome experience for our customers,” D’Amelio says.

Brink emphasizes that Ralphs’ customer-first strategy is integral to the customer experience. The Ralphs team always puts the shoppers’ wants first.

In Brink’s role as grocery merchandiser, which means providing the products that shoppers are looking for today—and right now that’s a combination of health-focused items along with classic grocery staples from household brands.

Integrating technology into its stores is also part of Ralphs commitment to evolving, streamlining and simplifying the customer experience—but not at the expense of a personal touch.

While in-store Wi-Fi, expanded offerings, self-checkout, Apple and Google Pay, and hand-held android devices for associates are all examples of how Ralphs can serve its customers better.

“Technological innovation is our commitment and is implemented to enhance our customer experience,” D’Amelio says.

He recalls that when tools like self-checkout first made their way into stores, there was some hesitation from customers.

But as next-generation units have been improved upon and installed, it’s clear that things like self-checkout are becoming second nature for customers—and helps Ralphs provide better customer service.

“The self-checkout trend has been growing enormously in popularity in recent years, and the new belted check-out system we have in store has been a big hit among our customers.” Sparkenbach says. “It gives shoppers a sense of ownership when checking out.

A FORWARD GAZE FOR THE GROCER While building on the traditions of friendly customer service and developing associates is imperative to Ralphs’ growth, the company has a handful of other initiatives and programs driving its future, beyond in-store technology.

As part of the Kroger family of companies, Ralphs has the good fortune of evolving its banner with the resources and support of a forward-thinking parent company. One of the biggest priorities is the Zero Hunger | Zero Waste initiative, which is being carried out across all Kroger banners with the goal of creating communities free from hunger and waste.

The Zero Hunger | Zero waste Food Rescue Program at Ralphs is making huge strides in preventing food waste and donating perishable items to local food banks. With Zero Hunger | Zero Waste, every store is committed to food rescue and other sustainable practices, such as the implementation of a large anaerobic digester located in Compton, where Ralphs is headquartered, which converts organic waste into a byproduct to help fuel the stores.

Continued on page 18 ▶

CAL I FORNIA G RO CER | 17

◀ Continued from page 17

“Every store in this division and throughout Kroger donates perishable and nonperishable food items to charities so we can feed the communities that we serve,” Sparkenbach says.

D’Amelio, whose team oversees the Zero Hunger | Zero Waste Food Rescue Program for Ralphs, said that in 2022 Ralphs donated more than 6.2 million pounds of perishable food—which supported over 5.1 million meals for Southern Californians struggling with hunger.

Another core offering that Ralphs has seen great success with as part of Kroger is its private label products—especially the Simple Truth brand, a “free from” brand that includes natural and organic offerings at an affordable price.

D’Amelio said the line is a major differentiator for Ralphs, and it resonates among customers as the company continues to develop and innovate within the private brand.

“The Simple Truth line is a shopper favorite, and nobody has it except for us,” he says. “And it’s grown to be one of the nation’s top lines out there.”

Along with shoppers’ love for Simple Truth products, Ralphs is seeing a continued interest in the expansion of fresh foods among customers, and the company is committed to keeping a focus on fresh. Some of Ralphs’ investments in fresh include adding freshmade sushi counters to its stores, full-service floral departments and

18 | CAL I FOR N I A G RO C E R

Murray’s Cheese counters, which offer cheeses from top creameries worldwide and are a staple at many Kroger-owned stores.

“I think that will differentiate the grocery retailer of the future— that fresh [element], and we are really spearheading that movement,” D’Amelio says.

Sparkenbach agrees, noting that customers are looking for more fresh options now more than ever before: “But they want them quick, they want them grab-and-go, and they want them pre-packaged in many cases.”

And Ralphs fills that need—whether it’s freshly sliced deli meat available in a cold case, cakes freshly made in the bakery, fresh-cut fruit or marinated ready-to-cook meats.

According to Brink, a huge part of fresh offerings is giving the customer what they want most at the dinner table—especially in an era where people cook more at home.

“Food is a way for people to connect, celebrate and have fun, and that’s kind of our job to continue to allow them to do that,” he says.

From maintaining the tradition of a friendly “hello” to promoting employees from within to innovating with fresh ideas to meet future audiences, Ralphs is clear on the priorities that have made it thrive— and that will drive its vision for many decades to come. ■

Happy 150th Anniversary to the Ralphs Grocery Company!

CHEERS to 150 more!

ENJOY RESPONSIBLY ©2023 IMPORTED BY HEINEKEN USA, WHITE PLAINS, NY.

Create a

Culture of Listening to Maximize Employee and Customer Loyalty by Heather R Younger

20 | CAL I FOR N I A G RO C E R

H

ow does it feel when someone truly listens to your thoughts, ideas, and concerns? As a speaker, author, and consultant on workplace engagement, I’ve heard thousands of voices through employee surveys and what I’ve learned is that we all want the same thing. We all want to be heard, for our work to matter, and to feel valued for who we are.

Leaders in the grocery industry understand the importance of listening to their customers. For example, studies and surveys show that shoppers are willing to share personal information for personalized offers, pay more for a better experience, and switch to a competitor after a poor experience. Additionally, customers expect grocery stores to anticipate their needs and make relevant suggestions.

The global grocery industry also knows that emails have a higher engagement rate.

Unfortunately, despite understanding the value of listening to customers, many do not listen to their employees. The simple act of listening delivers a feeling of validation, understanding, and value for most people. However, the results are equally astounding when we create a workplace where employees are genuinely heard and valued. As a result, employees are empowered to achieve incredible things.

Investing in transforming your workplace culture can be a game-changer for your business. Not only will you see better employee engagement and satisfaction, but you’ll also experience a boost in customer satisfaction, increased revenue, and lower turnover rates. But the value doesn’t stop there. A culture of listening also leads to increased brand loyalty. The ROI of a transformed workplace culture is undeniable, and it all starts with investing in your people.

Unlocking the potential of your workforce and watching your business soar to new heights might sound simple. But attempting to create a workplace where everyone feels heard and their voice is valued can be daunting and overwhelming. So, where should you start?

Continued on page 22 ▶

CAL I FORNIA G RO CER | 21

◀ Continued from page 21

STEP 1:

Recognize

The first step in creating a better workplace is recognizing what’s not being said. It’s essential to tune into the organization’s current state, understand your employees’ emotions, and identify what needs fixing. With this understanding, it’s easier to make the right moves and not miss important issues.

One example of this is when an organization surveys employees year after year but needs to act on the data. It wasn’t until they took the time to understand the data that they had an “aha” moment and finally understood what was not being said. They realized that people didn’t feel safe enough to speak their truth, which pointed to an underlying lack of trust.

Recognizing what’s not being said is liberating and empowering. It allows you to take ownership of the situation and make meaningful changes. Everyone in the organization has a role in recognizing what’s not being said. Sometimes, it can be as simple as encouraging people to speak up through forums, creating psychologically safe spaces for employees to speak the truth, or giving people the courage to speak their truth as a marginalized group.

STEP 2: Seek to

Understand

It is crucial to actively listen and ask the right questions to understand the perspectives of those you lead. This means being a receptive “listening receptacle” in listening sessions or manager roundtables. In addition, you need to dare to go deeper with probing questions to get to the truth.

Ultimately, this two-way conversation allows for a deeper understanding and can lead to a greater sense of trust and value among team members. To genuinely understand your people, it is vital to gather quantitative and qualitative data through surveys and feedback sessions and to listen in multiple ways. By committing to actively listening and understanding, you can begin building a more supportive and effective work environment.

22 | CAL I FOR N I A G RO C E R

STEP 3:

Decode

In the decoding phase of the process, you need to take the time to reflect on and analyze the information you have received through listening. Then, by interpreting and making sense of what has been said, you can actively work to understand the underlying meaning behind the words. But it’s important to remember that you can’t decode what you don’t have, so it’s crucial to take the time to process and understand the information you have received.

However, this stage is not about knee-jerk reactions. By contrast, your efforts should be focussed on thoughtful reflection and analysis. By reflecting in this way, you show that you respect and value the feedback you have received. As managers and leaders, it’s crucial to not only actively decode the information you have received but also to continue to process and share it with key stakeholders as needed. This process stage synthesizes the most important pieces of information and determines how they can help you in the following steps.

STEP 4:

Act

People will only feel heard when they see leaders acting on their feedback. In this step, you must make a plan and take ownership of your actions. For example, you may create a team to address the feedback or prioritize specific action items. But it’s important to remember that listening is a team sport, and we can all work together to create a culture of listening in our organizations.

When you act on behalf of those who have provided feedback, you are showing compassion and actively work to alleviate any pain or issues they may face. It’s paramount to have the plan to act and communicate the results and progress to those who provided the feedback. This is where many organizations and teams often fall short but closing the loop and connecting the dots is crucial for building trust and fostering true engagement.

Continued on page 24 ▶

CAL I FORNIA G RO CER | 23

◀ Continued from page 23

STEP 5: Close the

Loop

Step 5 of the feedback process, “Close the Loop,” is the final step in which you communicate back to those who have provided feedback. Again, it is essential to let them know that their voices are heard and provide information on what actions have been taken or why specific actions were not taken. This step is crucial in validating the importance of feedback, and it can help build trust and improve communication within an organization.

A lack of communication during this step can leave people feeling unheard, leading to mistrust and dissatisfaction. A good approach is to use a variety of methods for feedback, such as surveys, culture teams, and listening sessions, and to empower employees at all levels to take ownership of the feedback process.

Closing the loop or ensuring that communication is complete and understood can be challenging in a virtual environment. Without the ability to read body language, it can be difficult to know if you have effectively closed the loop with your team members.

However, there are steps you can take to make sure you are effectively closing the loop in a virtual setting.

These include imparting the research and reflection on what you have done on the other person’s input or request. It can also lead to setting up virtual meetings to discuss potential actions, and, when possible, communicating in person if working in a hybrid workplace. By taking these steps, you can ensure that our team members feel valued and understood.

24 | CAL I FOR N I A G RO C E R

Closure

A recent survey of over 11,000 American consumers revealed that 72% of surveyed shoppers now shop for groceries online more frequently than before the pandemic. These numbers indicate a clear trend towards digital shopping for groceries and consumer packaged goods, with more and more people turning to the convenience and ease of online shopping. But these insights were only unlocked by listening to customers.

The grocery industry must listen to its customers and workforce because they are the backbone of its business.

Shoppers are the ones who generate revenue for the store, and their satisfaction is crucial for the store’s success. On the other hand, staff are the face of the store and play a critical role in providing excellent customer service, ensuring product availability, and keeping the store clean and organized.

When grocery stores listen to their shoppers and workforce, they can create a culture of collaboration and teamwork that aligns their efforts towards a common goal: providing the best shopping experience for their customers while driving revenue and growth.

But it also starts with creating a culture of listening.

In today’s fast-paced world, we have become increasingly focused on getting things done and achieving our goals, often at the expense of listening to others. Leaders routinely listen to consumers to determine what drives supermarket customer loyalty or causes shoppers to choose one grocery retailer over another. But in doing so, many stopped listening to their own people.

Unfortunately, this lack of listening has led to feelings of helplessness, disconnection, and unimportance among people working in the grocery industry. These problems are further amplified by the shift towards remote work, making it even more challenging to connect meaningfully with others. However, this does not have to be the case.

By committing to actively listening to others, you can create a sense of hope, belonging, and investment in our work and relationships. Active listening is about more than just hearing what others have to say. It’s about understanding, valuing, and empathizing with them. It’s about giving people their power back by making them feel heard and valued.

When actively listening, we can create an environment where people feel more connected and invested in their work. In my book, The Art of Active Listening, I expand on this five-step process for active listening, which is designed to help every business evaluate the quality of their listening efforts and ensure that others feel heard, valued, and understood.

While it may seem daunting to master these steps, it’s essential to trust the process. I have seen first-hand the positive impact of active listening on relationships and the work environment. Consider it a powerful tool to help you connect with others and create a sense of hope, belonging, and investment in your work and relationships.

For these reasons alone, please take the time to actively listen to the people in your life and see the positive impact it can have on your relationships and work environment. By actively listening, you can choose to be different and create a more connected and meaningful workplace. If you would like to dig deeper into tactics and tips to Creating the Culture of Listening, Pre-order your copy of my book, The Art of Active Listening, by visiting The Art of Caring Leadership – Heather R Younger (heatheryounger.com) ■

CAL I FORNIA G RO CER | 25

REDUCE YOUR CREDIT CARD REDUCE YOUR CREDIT CARD PROCESSING FEES PROCESSING FEES

✓

ELIMINATE UP TO 100%

FREE Credit Card Terminal Placement Wireless/Landline/High-Speed/Dial-Up

OF YOUR CREDIT CARD PROCESSING FEES!  FREE Credit Cardsetup Terminal Placement ✓ Easy (with no setup feesWireless/Landline/High-Speed/Dial-Up and quick approvals) ✓ (with Seamless integration with quick your current POS  Easy setup no setup fees and approvals) NAB makes it easy to offset your credit card processing $295** towards your early termination current processor feeswith withyour our non-cash adjustment.  Seamless✓integration with your current POS fee (if you have one) ✓ Access to Payments Hub - our secure, online merchant portal  $295** towards your early termination fee (if you have one) with your current processor ✓ Free paper**  Access to Payments Hub - our secure, online merchant portal

 Free paper**

Rates as low as .05%*

FREE TERMINAL PLACEMENT OPTIONS

INTEGRATE

EMV-Ready Terminal & Pin Pad or wireless terminal.

• Accept payments in-store, online, or on-the-go.

• Send digital receipts:

Rates as low as .05%*

Accept EMV/NFC Pay-at-the-pump (Apple Pay, ETC.) EBT, compatible Accept EMV/N FC Pay-at-the-pump Snap, Checks and Pay, more (Apple ETC.) EBT, compatible

SMART TERMINAL WITH YOUR POS

Email or SMS a receipt

Next Day Funding with weekend settlement Next Day Funding with

• Send Invoices

FREE Credit Card Terminal Placement Wireless/Landline/High-Speed/Dial-Up

weekend settlement

Snap, Checks and more

Easy setup (with no setup fees and quick approvals)

STANDARD TERMINAL

Seamless integration with your current POS $295** towards your early termination fee (if you have one) with your current processor

OPTIONAL PROGRAMS:

OPTIONAL PROGRAMS: • Point of Sale Systems

EDGE: The Best CASH DISCOUNT PROGRAM Make the American same P.rofit from North Bancardmargin with Are youand ready to get rid of the impact of payment processing costs cash non-cash paymenl:s!

Recommendations, Solutions & •Integrations Curbside Ordering

Access to Payments Hub – our secure, online merchant portal Free paper**

with 4G / Wifi

COMPATIBLE WITH

• Accept • PointEBT/Snap of Sale Systems Low Transaction FeeSolutions Recommendations, NAB makes it easy to make the same profit from non-cash payments as you do with cash payments with our cash discount program. & Integrations

on your business? With the Edge Cash Discount program you will enjoy the • Cash same profitDiscount margins from cash payments as you do from non-cash payments.

GAS CARDS WRIGHT EXPRESS FLEET CARDS VOYAGER AND MORE…

�.

866.481.4604 866.481.4604 GROW YOUR BUSINESS. PARTNER WITH NAB TODAY!

GROW YOUR BUSINESS. PARTNER WITH NAB TODAY!

866.481.4604

GROW YOUR BUSINESS. PARTNER WITH NAB TODAY!

NorthAmdlt•�,S�f

©2019 North American Bancard is a registered ISO of Wells Fargo Bank, N.A., Concord, CA, and The Bancorp Bank, Philadelphia, PA. American Express may require separate approval. *Durbin regulated Check Card percentage rate. A per transaction fee will also apply. **Some restrictions apply. This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple Inc.

WWW.NYNAB.COM

IJJ!llil=

© 2022 North American Bancard, LLC (NAB). All rights reserved. NAB is a registered ISO of BMO Harris Bank N.A., Chicago, IL, Citizens Bank N.A., Providence, RI, The Bancorp Bank, Philadelphia, PA, and First Fresno Bank, Fresno CA. American Express may C 2022 North American Bancard, LLC (NAB). regulated AD rights reserved.

NABCard is a registered ISO of rate.

BMO Harris N.A., Chicago, Citizens N.A.,**Some Providence, require separate approval. *Durbin Check percentage A perBank transaction feeIL,will alsoBank apply. restrictions RI, The Bancorp Bank, Philadelphia, PA, and First Fresno Bank, Fresno GA. American Express may require separate approval. *Durbin regulated Check Gard apply.

This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple. percentage rate. A per transaction fee wiU also apply. "'Some restrictions apply. This advertisement is sponsored by an ISO of North American Bancard. Apple Pay is a trademark of Apple.

FREE NFC & EMV-READY TERMINAL & PIN PAD OR WIRELESS TERMINAL

WWW. NYNAB.COM VISA

■

DISC VER:

Did Your Business Receive PPP? Either way,

What is ERC?

Bottom Line Savings helps business owners receive money back from the Employee Retention Credit (ERC) federal grant.

This ERC program differs greatly from the Paycheck Protection Program (PPP) and is much easier to apply for. Bottom Line will submit and collect a few important documents making this program turnkey for our owners.

******************

You don't need a sales reduction to qualify for ERC. Operational impacts to your business will qualify you as well.

******************

per employee in Your business could be getting up to Employee Retention Credits (ERC) even if you received PPP loans.

Our experts at Bottom Line will help you maximize your refund!

As a valued partner, Bottom Line will: • Identify how you qualify for the ERC Program • Outline your specific ERC calculations to maximize the credit • Help you claim the credit • Ensure proper payroll tracking and documention

Apply today and an ERC Specialist will contact you directly.

Please visit www.tryerc.com

26 | CAL I FOR N I A G RO C E R

WWW. NYNAB.C

High-Tech vs. High-Touch:

NAVIGATING THE BURNOUT PARADOX THROUGH MODERN LEADERSHIP by

HAMZA KHAN

Author of “Leadership, Reinvented”

28 | CAL I FOR N I A G RO C E R

I recently declined another venture capital-flushed startup’s request to endorse their employee burnout tracking software.

And not because I don’t care about employee burnout. In fact, the exact opposite is true—I care so much that I’m willing to turn down an exorbitant sum of money to keep our attention fixed on the root causes of the growing burnout epidemic.

Across California, grocery business leaders like you are all too familiar with the negative impact of burnout on their bottom line. Your associates’ diminished productivity, increased turnover, and unending healthcare expenses make it harder to run a thriving operation and, by extension, nourish the country’s most populous state.

But know this—you’re not alone. The global economy annually loses $1.5 trillion due to the unsuccessful management of workers’ chronic stress.

The aforementioned burnout tracking software is but one of the hundreds of well-intentioned wellness-enhancing technologies produced in the past decade. In fact, between 2010 and 2020, the world saw a roughly 856% increase in wellness app downloads alone. These innovations are part of a thriving self-care and wellness market that expanded by roughly 5592% across the pre-pandemic decade.

And when you pair that growth with the exponential increase in internet searches for “Self-Care,” “Stress,” and “Well-Being,” the following question is begged: Has the increased interest in (and solutions for) beating burnout produced the intended result? In other words, are global levels of burnout declining?

The answer is a resounding “no.” Very discouragingly, burnout is rampant, despite being situated in the supposed “Golden Age” of self-care/wellness interest and solutions.

This past January at the California Grocers Association’s Independent Operators Symposium in tropical Hawaii, I presented the aforementioned topical “Burnout Paradox” to an audience of curious owners, operators, and suppliers.

We racked our brains and co-created solutions to address the root causes of what the World Health Organization describes as “the health epidemic of the 21st century.”

Continued on page 30 ▶

CAL I FORNIA G RO CER | 29

◀ Continued from page 29

With some additional ideas and actions, here’s how we did it:

Step 1 Understand that Burnout is a System-Level Problem

to a systems-level problem, and the system-level problem is the persistent pressure to overwork.

Despite its gradual and sudden injection into the zeitgeist, the term “burnout” is a relatively young concept. It was coined in the 1970s as a metaphor with two distinct components:

Yes, burnout is experienced by individuals.

However, the most potent drivers of burnout are systemic organizational imbalances across job demands and resources. In other words, burnout is the inevitably of perpetually demanding your associates to “do more with less.”

1. Burnout as a syndrome 2. Humans as energy systems The metaphor was powerful because it expressed suffering that demanded a name, recognition, and treatment. And it did so in a language that is both easily understandable and open. The problem with this metaphor is that it induced individual treatment

Gallup found that the risk of burnout increases significantly when the workweek averages more than 50 hours and rises even more substantially at 60 hours.

And so after 60 hours of work a week—and all the stress that comes with it—it’s not a question of “if ” they’ll burn out... it’s a matter of “when.”

Step 2 Recognize Burnout’s “Upstream” Factors There’s a common saying thrown around in highoctane work cultures: “If you can’t take the heat, get out of the kitchen!”

But what if the whole kitchen is on fire?

Dr. Christina Maslach is one of the world’s preeminent burnout researchers. She’s responsible for my favorite quote about workplace culture: “Workplaces can be very unhealthy environments...if you take a plant and put it in a pot and don’t water it and give it lousy soil and not enough sun, I don’t care how gorgeous the plant was, to begin with—it isn’t going to thrive.”

Her research investigates the “upstream” factors which influence burnout.

30 | CAL I FOR N I A G RO C E R

There are 6 in particular: 1. Unsustainable Workload: Forcing associates to do more with less, with no reprieve.

2. Lack of Control: Insisting that associates run every decision by management.

3. Insufficient Reward: Failing to provide associates with a thriving wage and incentives.

4. Poor/Toxic Community: Isolating, marginalizing, and harassing associates.

5. Lack of Fairness: Providing imbalanced and inconsistent rewards for similar work.

6. Inconsistent/Missing Values: Failing to ascribe significant meaning to work.

If any of these factors are present within your organizations, then the likelihood of everyone burning out—from frontline associates right through senior leadership, including yourself—is significant.

Step 3 Appreciate the Need for Leadership Interventions When it comes to my burnout-focused presentations, I typically get two different types of requests from two different stakeholders. On one hand, Human Resources and employee-led events ask me to talk about the futility of self-care.

During discovery meetings, they say candid things like, “We can’t yoga our way out of burnout!”

They tend to ask me to provide pointed leadership interventions. Except, their leaders are rarely in attendance for these keynotes.

On the other hand, leaders—always with the best intentions, I might add—ask me to push individual interventions. Namely, self-care and resilience strategies. When I push them on their imperatives, they more or less say: “We’re not trying to start a revolution here.”

Seriously. One Fortune 500 company said that to me verbatim. Frustrated, these leaders point to their significant investments in employee wellness programs (especially shiny but mostly ineffective burnout tracking software) and blame employees for not optimizing their health and well-being.

I see this disconnect all the time.

McKinsey Health Institute found that, on average, leaders rate workplace dimensions associated with health and well-being 22% more favorably than their employees. But the chasm between the realities of employers and their employees is much wider than that.

Consider a recent study by Forbes which found that 89% of leaders think employees quit because they want more money. In reality, the number of employees who leave due to insufficient compensation is less than 12%.

Reinforcing this growing gap, the findings from Edelman’s 2021 Work Trend Index continue to disturb me. Of 31,000 full-time employed or self-employed workers across 31 markets, it was found that most leaders were “thriving” during the pandemic. All the while, frontline workers, new employees, working parents (especially mothers), and Gen Z employees were “surviving” or “struggling.”

As leaders, we can’t rely on the latest high-tech solution as a panacea; addressing the root causes of burnout requires modernizing our approach to leadership.

You may be excited to know that this call to action was answered by all of the owners, operators, and suppliers in attendance at this past Independent Operators Symposium. They inspired our fourth and final step.

Step 4 Practice High-T.O.U.C.H. Leadership

I propose five leadership values essential to this transformation:

We have a rare opportunity to reimagine a better workplace. And in doing so, to reimagine a better California. This requires getting in touch with the people we serve as leaders: our associates.

1. TRANSPARENCY 2. OPENNESS 3. UNDERSTANDING 4. COMPASSION 5. HUMILITY

Continued on page 32 ▶

CAL I FORNIA G RO CER | 31

◀ Continued from page 31

The five essential leadership values: 1. TRANSPARENCY Transparency is about keeping your associates in the loop, sharing the ups and downs, and inviting honest feedback. This value can be practiced through a “listening tour” of everyone who interacts with your value chain. Talk to fellow leaders, associates, customers, suppliers, and other stakeholders. Better yet, set up a ‘reverse town hall.’

Ask tough questions such as:

■ What’s working?

■ What needs to be fixed?

■ What are our strengths?

■ What are our weaknesses?

■ What are the opportunities for growth?

■ What are the threats to our operation?

2. OPENNESS Openness requires being receptive to new ideas and information. It involves looking beyond first impressions, releasing any preconceived notions, and approaching each opportunity as though you’ve never encountered it before.

This value can be practiced through improved one-on-ones. Company success stands and falls with the effort managers put into connecting with their team members.

Gallup has found that when managers provide weekly (versus annual) feedback, team members are much more motivated to do outstanding work and are generally more engaged.

3. UNDERSTANDING Understanding is all about mental grasp. It’s capacity to comprehend information, with a bend toward ensuring harmony. The action here is to dive deep with your people and ask big questions, such as:

■ Why did you join this organization?

■ Are you proud to work here?

■ What gets you out of bed every morning?

■ Do you respect our leadership?

32 | CAL I FOR N I A G RO C E R

When it comes to one-on-ones, have them weekly or bi-weekly at most. Keep them scheduled and private.

And use this time-tested structure for its format:

■ First 10 Minutes: Let the staff share whatever they want.

■ Middle 10 Minutes: This is about whatever you want.

■ Final 10 Minutes: This should be forward-

looking—about the associate’s role, satisfaction, and overall outlook on the organization.

And no matter how chaotic things get, only move these one-on-ones in case of an emergency.

■ What are your personal and professional dreams?

■ Are we headed in the right direction?

■ How am I doing as a leader?

■ Where can I improve my leadership?

■ How would you do things differently?

■ Do you envision a future for yourself here?

You can ask these during one-on-ones, town hall meetings, coffee chats, or wherever.

4. COMPASSION Compassion is having positive intentions and genuine concern for others. It’s a sensitivity to suffering in self and others with a commitment to try and alleviate and prevent it.

And through this process, we aim to make the journey from pity to sympathy, through empathy, to compassion.

To realize this value, I propose 1–3 different styles of shadowing your team:

■ Pity: “I can tell that the overtime demands are

This is what it could look like: causing you stress.”

■ Observation: Passively study others at work.

■ Sympathy: “I care you’re experiencing stress about the overtime demands.”

■ Regular Briefings: Shadow key activities during a single project.

■ Empathy: “I feel your stress about the overtime demands.”

■ Hands-On: Simulate working alongside others.

■ Compassion: “I want to relieve your stress about the overtime demands. It’s my highest priority.

Let’s figure out a solution that works for you.”

5. HUMILITY Humility is a sense of humbleness, dignity, and self-awareness around limitations. It’s one of the most uncommon traits associated with well-known business leaders. But it’s the most important of the five traits, as it holds them together.

All of this involves looking past the latest high-tech solution toward holistic, high-touch, human-centric approaches to leadership. Fundamentally, it requires rethinking why we lead in the first place. It’s not just to take care of profits.

The action here is simple: normalizing the phrase “I don’t know” and its pairing with “I want to learn.”

It’s first and foremost to take care of your associates while trusting that when we do this sincerely, they’ll, in turn, take care of your customers. Ultimately, it’s the customers who take care of profits.

By taking these four steps, you and your fellow grocery business leaders across California can directly address the “upstream” factors influencing everyone’s burnout. In this post-pandemic, postdisruption world, we have a rare opportunity to reimagine a better workplace. As you’ve learned, this requires a departure from the traditional management playbook and perhaps a complete leadership reinvention. As stressful as this might seem, it’s a potent opportunity to burnout-proof your organization and reimagine it for the fastapproaching future of work.

This is known in the business literature as “The Employee-Customer-Profit Chain.” It posits, simply, that how you treat your associates is how they’ll treat your customers. For over 20 years, many large retailers have replicated the model, and the results held for all of them across time: Direct and measurable sales revenue increases are the welcome byproduct (and not the goal) of thriving, satisfied employees…employees who burn bright, not out. ■

CAL I FORNIA G RO CER | 33

IN MOTION: HEADLITE JOE PEREZ IS LEADING THE ILLUMINATORS FORWARD WITH THE HELP OF THE NEXT GENERATION

By Grace Becker As he finishes out the final months of his term as 93rd Headlite and President of The Illuminators, Joe Perez is engaging the next generation.

If you’ve met Perez, you’ll know that he’s a spiritual man, often dropping inspirational nuggets or quoting his favorite leadership guru, John Maxwell, whose coaching program he completed in 2015. It’s one of the grocery community’s better-known secrets that Perez is an ordained minister and even officiated the wedding of Past CGA Board Chair Hee-Sook and her husband John Alden last year.

With a few months of his term left, Perez is focused on moving The Illuminators forward.

He’s achieving this with a brand-new strategic

34 | CAL I FOR N I A G RO C E R

“I HAVE A PURPOSE STATEMENT FOR MY LIFE. IT’S REALLY SIMPLE. MY GOAL AND MY PURPOSE IN LIFE IS TO ADD VALUE TO PEOPLE IN A PERSONAL, PROFESSIONAL, AND/OR SPIRITUAL WAY. IF I CAN ADD VALUE TO ANY OF THOSE THREE AREAS IN YOUR LIFE, I’VE LIVED MY PURPOSE.”

plan to guide the organization over the next three to five years.

In addition to carrying out The Illuminators’ mission to enhance the grocery industry through leadership and education, Perez is intentional about the future. “My theme for the year is moving forward. You can go fast and go alone, or you can go far and go together. My saying is ‘let’s go further, faster, together.’”

The centerpiece of the plan is appealing to the next generation. The youngest Illuminators Headlite, having taken over at age 43, its Perez’s priority to keep the organization relevant for up-and-comers in the industry. “We want to capture the next generation and show them that this is a great

industry to be a part of. We need you to help move us forward. We need your ideas, we need your collaboration, and we need your energy because we’re getting old, and we need fresh life and blood to come into the organization.”

One way they’re doing this? Social media.

“Social media was something I started four or five years ago with Paul Kamholz. We had a small committee, and we just blew that up. Now we have a pretty good presence on LinkedIn, Instagram, and Facebook,” he said. You may have witnessed Illuminators members capturing videos at industry events

or ramping up support online for CGA’s annual Strategic Conference, and this is no accident. “I say we’re a purpose-driven organization. Everything we do has to be intentional, if not you’re going to fall behind,” he said.

Working in the recycling and sustainability space since 2007, Perez started his career with rePlanet Recycling. There he headed up business development, marketing, and government relations efforts and fostered relationships with retailers, and local and state governments. In 2019, rePlanet went out of business and Perez started a private consulting business, Waste Stream Solutions, in the recycling and sustainability space. In 2022 Perez went to work for Silicon Valley technology company Olyns Recycling, where he currently serves as Head of Business Development. Through its innovative

business model, which uses advertising revenue to offset recycling costs, Olyns is a profitable and scalable solution to help reduce plastic pollution, meet corporate demands for recycled plastic, and accelerate the shift to a circular economy.

Perez was ushered into The Illuminators by his mentor, Paul Christianson, past Headlite and President of The Illuminators and late husband of industry maven Carole Christianson. The two met when Perez hired Christianson’s consulting business to work on a few projects. “He became this wealth of knowledge and information to the grocery industry,” he said. Though Perez recognized The Illuminators from the CGA Strategic Conference, Christianson encouraged him to become involved in the organization and join the Publicity and Greeters committees.

Paul would become Joe’s ‘Guidelite,’ or his official Illuminator mentor. “If it wasn’t for him, I would not be in this position today.

For sure,” he said. “When I met Paul, my eyes were opened to what The Illuminators do, how we partner, and the relationships that are developed and built. It’s next level.”

The Illuminators support the grocery industry through its three pillars: education, leadership, and partnering.

Continued on page 36 ▶ CAL I FORNIA G RO CER | 35

◀ Continued from page 35

The pillars materialize through raising money for education at lively events like Tips for Scholarships at the CGA Strategic Conference, developing industry leaders, and partnering with CGA and WAFC on signature events. “We call it ‘spreading the light of good fellowship.’ It’s really just bringing folks together with the common goal of servant leadership, raising money for education, and making our industry better. And having fun as we go through the process.”

Now that The Illuminators’ social media presence is locked down, Perez says there’s still more to do to engage the next generation. The Illuminators are capturing feedback from new industry members on what they want to see by sending out surveys, convening committees, and hosting fresh events. Developing leaders is also part of the plan—and The Illuminators overall mission— which is where the Guidelites come into play.

“As soon as you join The Illuminators, we pair you with someone who’s been in the organization for a minimum of four to five years so that new members can get exposure.”

Guidelites are typically either a chair, vice chair, or a board member and liaison, who help connect new industry members with industry veterans. The Illuminators also offer leadership opportunities. “We give them an opportunity to one, volunteer, or two, become a chair or a vice chair and lead the whole event. Through that process they’re paired with the liaison, so they get direction and help. It’s their event, but we’re guiding them along the way.”

Much like his work with The Illuminators, Perez is intentional about his own leadership style. “Servant leadership has been in my blood for a long time,” he said. “I practice ‘leaders eat last.’ I’ll be the guy standing at the back of the room saying, ‘All right, come on guys let’s have lunch.’ Some folks have caught on and say, ‘We’re not eating until you’re eating!’ and I say, ‘Well, then we’re eating last, together!’”

In Perez’s eyes, the most impactful leaders let their actions speak louder than their words.

“A good leader should be a good listener.

If you’re not listening, and you’re doing a lot of talking and making assumptions, you’re going to fail.”

Perez is a believer of building significance over success, inspired by, you guessed it, John Maxwell. “Success is here for a moment and then it’s gone. However, if I don’t focus on success and [instead] focus on significance and adding value to other peoples’ lives, that can live on much longer than my short-term success.” The new strategic plan is one manifestation of this philosophy. “Once it’s finalized and we’re moving it forward, the plan will live on beyond my term. I will have made an impact and left significance in the organization.

That’s where I find my motivation.” ■

36 | CAL I FOR N I A G RO C E R

Congratulations on 150 years.

Serving Up the Freshest Eggs for Generations.

NuCal Foods Family Farms Producing California’s Freshest Eggs.

Our local California Family Farms have been providing farm fresh eggs daily to your stores. In addition to producing fresh, nutritious, high-quality eggs, we take pride in the traditions and values of being good stewards of the land, providing superior care for our hens and giving back to the communities that support us.

Wheels Down for Retail.

Cart Retrieval

Cart Leasing

Cart Maintenance

Replacement Carts

Sustainability

Marketing Products

www.retailsolutionshq.com

818.817.6359

heather@retailms.net

CGA NEWS

A DAY WITH THE CHAIR Team CGA had the unique pleasure of spending a day with Board Chair Dennis Darling in his hometown to visit his family business, Foods Etc. On a sunny February morning CGA staff arrived in the small community of Clearlake after a scenic two-hour drive, elk sightings and all.

INDEPENDENT OPERATORS EXPLORE COMMUNITY AND LEADERSHIP AT SYMPOSIUM It’s easy to assume that leaders have it all figured out, all the time. After all, these are the folks who lead their businesses through whatever comes their way while simultaneously empowering and developing their teams. However, even the most seasoned leaders need a surge of inspiration now again to reinvigorate their business.

That’s where CGA’s Independent Operators Symposium shines.

Our annual Symposium is designed to allow our community of independent operators a week of restoration ahead of the busy new year. This year our operators returned to Maui to muse on leadership and recalibrate creativity. Between evening socials and afternoons spent exploring the island with family, our operators also zeroed in on burnout and community during their stay. Grocers returned from this year’s event refocused with a fresh perspective to bring home to their teams.

In addition to networking, collaborating, and taking time to recharge, our independent operators participated in enlightening educational sessions led by Hamza Khan on “Beyond Burnout: Why Self-Care is Not the Only Solution in the Reimagined Workplace,” Heather R. Younger on “The Art of Caring Leadership,” and Mark Brand on “Building Better Communities” to get guests thinking outside the box about new approaches to leadership and community support.

Thank you to our independent operators for kicking off the year with us at Symposium! ■

40 | CAL I FOR N I A G RO C E R

We met in the Foods Etc. Parking lot, greeted

by Dennis, who led us up to the company office. There we inspected the dozens of photographs lining the walls, all captured

by Dennis himself (save for one photograph captured by Rick Stewart). It wasn’t long before we were joined by Dennis’ wife and co-owner of Foods Etc. Ruth Darling, and Andrew Pierson, the Darling’s son-in-law who will take over the family business along with their daughter, Kori, when the pair retires next year.

From there, Dennis, Ruth, and Andrew took us on a tour of their immaculate store, introduced us to their longtime employees, and told us about the many ways Foods Etc. supports the local community. If the decades-worth of plaques commemorating local Foods Etc.-sponsored sports teams hadn’t tipped us off already, the Darlings are known to go above and beyond for the community. In times of emergency, like the wildfires that impacted Clearlake in 2022, the Darlings are a first responder for the

CGA NEWS

community. In times of celebration, the Darlings have donated holiday turkeys, run Christmas charity drives, and hosted community events.

During our visit, we also learned about the strong ties Foods Etc. has with local elected officials and the ways they work in tandem to meet the region’s needs. Undoubtedly, the Darlings are a pillar of the Clearlake community. ■

SUPPLIER EXECUTIVE COUNCIL TOURS NEW ANAHEIM SUPER KING LOCATION In early February, the CGA Supplier Executive Council met in Southern California for an exclusive tour of Super King Markets’ latest location in Anaheim. Though the store design is new, the location carries history for the retailer. The new store replaced the adjacent Super King location, which was the company’s very first retail space, opened in 1993. Now, the retailer operates eight locations across Southern California.

Co-owner Vache Fermanian, Vice President Jake Fermanian, and the Super King team led our tour and shared insights on how the new design was conceived and brought to life. Team Super King had all hands on deck to close the original location overnight and open the new store the following day.

Since day one, Super King has emphasized international offerings and fresh food, which are highlighted by the store’s new bright and airy design, and accessible layout. The unique open-concept format provides visitors with a panoramic view of the entire store, the vast fresh produce displays serving as the main attraction.

Super King’s latest location is a testament to the company’s dedication to innovation, quality, and customer experience. Our SEC members were delighted to experience Super King’s best-in-class operations and culture firsthand.

If you are interested in becoming a member of the Supplier Executive Council, please reach out to Sunny Porter at sporter@cagrocers.com for more information. ■

CAL I FORNIA G RO CER | 41

CGA NEWS

OUT OF OFFICE: MY DAY SHADOWING A GROCERY EXECUTIVE From the Desk of CGA Senior Vice President and Chief Operating Officer, Doug Scholz

From the Desk of Doug Scholz In february I had the privilege of getting out of the office to shadow a veteran grocery industry executive during their typical workday. I found it to be an invigorating, insightful, and eye-opening experience.

My first objective with this assignment was to develop a better understanding of the day-to-day operations of CGA’s members. By experiencing a “day in the life” with a grocery executive, I hoped to better understand the context of the work CGA does and how the Association can become even more relevant to the leaders in our industry.

Secondly, it was personally valuable for me to observe how a grocery leader works their craft.

I enjoyed watching the way this executive engaged their team and inspired them to do great work.

Here are a few specific takeaways from my visit: – There are literally thousands of business-critical details that impact a grocer’s bottom line.

When I shared this observation with another retail executive, he agreed saying, “Now you understand why we are the way we are.” Staying on top of even the smallest details is essential.

– It’s a numbers business AND a people business. Grocers have access to an amazing quantity of business data and diagnostics (labor hours and expenses, turnover, sales, shrink, product velocity, customer satisfaction surveys, and on and on). But beyond the numbers, to be a successful leader you also need to possess and demonstrate advanced people skills.

– It could be easy to become consumed by day-to-day responsibilities and operational issues, but it is important to balance this with having a growth mindset—always be looking for the next opportunity. If you are not growing, you are dying.

– Building your team, talent acquisition, and the proper placement of people in the organization is a major part of the job. With our industry’s high turnover rates, successful companies need to constantly fill the demands for new talent and invest in the skills of your employees.

A lack of training, growth, or learning opportunities is the number one reason people leave an organization.

Along with these observations, I returned from my visit with an overwhelming amount of respect for the executives and employees in our industry. My experiences that day have worked their way into many conversations I have had with the team here at CGA. I am deeply grateful to the team at Superior Grocers for granting me this experience and unrestricted access to their operations for a day. It is an honor for all of us at the Association to support the great work California grocers do to lead their businesses, take care of their teams, and feed our state.

42 | CAL I FOR N I A G RO C E R

CGA NEW MEMBERS

NEW MEMBERS CGA welcomes the following members:

Arteaga’s Food Center 6906 Automall Pkwy Gilroy, CA 95020-7135 Contact: Maria Guadalupe Lopez, Corporate Secretary Phone: (408) 847-7542 Website: arteagas.com

Eagle Eye Solutions 251 Little Falls Dr Wilmington, DE 19808 Contact: Brian Mays, Regional Director E-mail: brian.mays@eagleeye.com Phone: (619) 534-0187 Website: eagleeye.com

General Mills, Inc. 1 General Mills Blvd Golden Valley, MN 55426-1347 Contact: Lisa Menge, Key Account Manager – Costco E-mail: lisa.menge@genmills.com Phone: (763) 764-6666 Website: genmills.com

Ghazal & Sons Inc. dba All American Plastic & Packaging 3020 Hoover Ave National City, CA 91950-7220 Contact: Renee Ghazal, Chief Financial Officer E-mail: renee@aaplastic.com Phone: (619) 474-6677 Website: aaplastic.com

La Ceiba Inc. dba Laguna Market 2125 W 6th St Los Angeles, CA 90057-3121 Contact: Leticia Valladares, Secretary Phone: (213) 989-1612 Website: lagunamarketla.com

Regional First Aid/ Regional Eyewash Solutions 279 E Arrow Hwy Bldg 105 San Dimas, CA 91773-3319 Contact: Aron Urban, National Dir., Operations E-mail: a.urban@regionalfirstaid.com Phone: (877) 872-2600 Website: regionalfirstaid.com

Rose Acre Farms 1657 W Tipton St Seymour, IN 47274-8659 Contact: Matt Neible, Dir., Supply Chain E-mail: mneible@roseacre.com Phone: (812) 487-2559 x340 Website: goodegg.com

Ruiz Foods 501 S Alta Ave Dinuba, CA 93618-2100 Contact: Kristal Clark, Dir., Sales – West E-mail: kristalc@ruizfoods.com Phone: (626) 833-6458 Website: ruizfoods.com

Shaw Industries, Inc. 230 Douhit Ferry Rd Cartersville, GA 30120 Contact: Alice McCann, VP, Strategic Accounts E-mail: alice.mccann@shawinc.com Phone: (626) 590-3808 Website: patcraft.com

SMG Facilities 2517 Highway35 Bldg L Fl 2 Manasquan, NJ 08736-1918 Contact: Tom Kay, Chief Revenue Officer E-mail: tkay@smgfacilities.com Phone: (214) 912-9205 Website: smgfacilities.com

Thrive Market 5340 Alla Rd Ste 105 Los Angeles, CA 90066-7004 Contact: Alyssa Kluge, Dir., Communication Phone: (866) 419-2174 Website: thrivemarket.com

VITAVATE Products, LLC 1370 Valley Vista Dr Ste 200 Diamond Bar, CA 91765-3921 Contact: Lori White, Chief Executive Officer E-mail: lori@vitavate.com Phone: (949) 872-9021 Website: vitavate.com

CAL I FORNIA G RO CER | 43

®

without the eCompromise.

Level up with an eCommerce platform that scales to the size of your grocery business.

DENTITE CAVITY HEALING TOOTH ARMOR

NANO HYDROXYAPATITE THEOBROMINE NANO SILVER TRACE MINERALS Nano-Hydroxyapatite

Supports remineralization of dental caries to refurbish tooth enamel and reduce sensitivity.

Let’s talk.

Nano Silver

Targets bad bacteria while leaving healthy flora alone.

Theobromine (Food of the Gods)

solutions@mercatus.com mercatus.com |1-877-525-5051

44 | CAL I FOR N I A G RO C E R

SUPPORTS REMINERALIZATION, WHITENING & ENAMEL RESTORATION

Extracted from Cacao, Expands protective Apatite crystals in tooth enamel by 4X.

Directions

Apply 1-2ml (Approx.1-2 droppers) directly onto teeth. Brush normally with or without toothpaste.

May do a “Treatment” for 5-15 minutes on teeth, before bed. Rinse.

Email for sales sheet orders@medicinal-foods.com

See Full Line at medicinal-foods.com

Hall o f Achievement AWAR DS DI NN E R & LIV E AU C T IO N

MIMI SONG

BOB GAR IBALDI

Superior Grocers

United Natural Foods, Inc. (UNFI)

Will be inducted into the CGA Educational Foundation Hall of Achievement THURSDAY, APRIL 27, 2023 | ANAHEIM MARRIOTT RECEPTION 5:00 PM – 6:00 PM | DINNER 6:00 PM – 8:30 PM

CG AEF.O R G | F OU NDAT IO N@C AG R O C E R S .CO M | ( 9 1 6 ) 44 8 -35 4 5

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

CATCHING RAINWATER There’s nothing better than a rainy day for Richard’s Rainwater, the first U.S. company to bottle rain. This past year the company collected around 4 million gallons of rainwater from two locations in the U.S., then purified and bottled the water. According to Richard’s Rainwater, the water is 100 times cleaner than even the strictest bottled water standards before it’s purified, since the water is caught before it hits the ground. The company is opening the world’s largest potable rainwater collection site in collaboration with Faubourg Brewing Co. richardsrainwater.com

J.CREW GIVES CLOTHES A SECOND LIFE Retailers are tapping into consumers’ adoption of mindful consumption. J.Crew is the latest retailer to enter the business of resell with “J.Crew Always.” The initiative includes “J.Crew Vintage,” a curated collection of men’s and women’s vintage clothing pieces to be sold in select stores. The retailer, along with sister company Madewell, is also partnering with secondhand apparel site ThredUp to encourage customers to resell gently worn J.Crew garments for store credit. J.Crew’s foray into reselling used and vintage merchandise puts the store in the company of retailers including Coach, Urban Outfitters, REI, Patagonia, Ikea, Walmart, Home Depot, and more. Not to mention the rising popularity of resell sites like The RealReal, Mercari, Grailed, and eBay. iStock

Productivity Pods

Those of us who work in traditional offices have likely gotten used to the quirks of the “open concept” layout that workplaces have adopted over the past several years.

Though the format encourages collaboration, there’s also one major drawback— noise. Framery aims to solve noise issues that break employee concentration with its soundproof office phone pods. The flexible pods allow staff to take a phone call or video meeting in privacy without distracting colleagues. Framery pods have automatic lighting, calendar integration, and adjustable seating, among other features. They come in a variety of sizes and even offer custom options for your space.

46 | CAL I FOR N I A G RO C E R

frameryacoustics.com

OUTSIDE THE BOX

Suppers Spotify Advertising is engaging the senses during its executive gatherings. The Spotify Supper series, started in 2016, hosts executives and advertising partners for a multisensory evening of performances and of course, food. The Supper events marry music and food, featuring musical performances combined with a menu curated by top chefs. These events, which take place across the globe, are built around the food and culture of the hosting region. Each Supper is completely unique, ranging from a cozy sit-down dinner to a 700-person supper with renowned chefs and major musical performances. iStock

D E L AY E D PAY iStock

Research has found a shift in “buy now, pay later” habits, which allow customers to pay for items across a series of installments. Where customers have most commonly used buy now, pay later to purchase high-cost big-ticket items, customers are increasingly using the system to pay for essential items like groceries in the face of persisting inflation.

Winsight Grocery Business reported that three in five customers surveyed have used buy now, pay later at checkout. Stores including Walmart, Albertsons and Kroger, and Target offer delayed payment options.

NEW ERA ETIQUETTE New York Magazine’s The Cut released an extensive list of etiquette rules for the modern age. The list covers all facets of life spanning friends and romance, strangers, tipping, dining, work, and even posting and texting. And expect plenty of hot takes... It’s worth noting, there’s a section that exclusively applies to residents of the Big Apple. In an age that’s become so casual, the 140-item list indicates that we may be in search of some structure after all.

DTC to IRL

Cult favorite direct-to-consumer cookware brand Our Place has opened a second physical retail location on Melrose Avenue in Los Angeles. Melrose and Abbot Kinney have become havens for DTC stores including Away, Everlane, Warby Parker, and Allbirds, according to Retail Dive. You’ll find a similar lineup of physical DTC stores in San Francisco. DTC’s pivot to physical retail spaces demonstrates how vital in-person engagement is to get through to customers.

fromourplace.com

CAL I FORNIA G RO CER | 47

MOMMY BLOGGER

Kids These Days K I M B ER LY R A E M I L L ER WR IT E R

Shopping with kids isn’t always easy, but it’s a necessary part of teaching them how to be successful consumers When I want to shock my children, I tell them that my parents didn’t plan elaborate family outings for the weekends when I was a kid. Weekends instead, were spent grocery shopping, doing laundry, and cleaning the house.

Childhood has changed a lot over the past few decades. There are fewer responsibilities and expectations and lots more supervision.

I could probably philosophize for hours about what this will mean for the future of humanity, but the truth is family life has always mirrored the society around it. And society has changed a lot.

When I was growing up, there was simply more time. At least it felt that way. My parents worked, but they never brought work home with them. They didn’t work late or have side hustles. But that’s just not the reality for most American families now, and since quantity isn’t an option for many of us when it comes to time with our kids, we aim for quality.

When society emerged from its covid cocoon, it did so with much less patience, especially toward children who had lost two whole years of learning how to act in society.

There are certain weeks when I just don’t have the emotional strength to brave the wilds of the cereal aisle with my children in tow, so I order groceries online, but when I do that, I know that it comes to the detriment of my children learning to shop (and to the quality of my produce). I can’t say that I always loved shopping with my parents as a kid, but I can say I learned a lot. I learned how to choose to produce, pick good cuts of meat, how to talk to people, I learned how to budget and ask for help.

Tagging along with mom and dad is an integral part of learning how to be human.

Is roaming the aisles of the local grocery store, getting side-eye and snide comments from strangers when a toddler gets too loud or has big feelings about not being allowed to buy all the candy quality time? No. It’s the absolute worst, but it’s also important. iStock

48 | CAL I FOR N I A G RO C E R

And I honestly can’t tell you, the grocers, how much I appreciate it when I enter a store that feels family friendly. Stores with silly carts or friendly cashiers. Stores that offer samples and smiles and stickers at checkout.

Those are the stores where I feel safe teaching my kids how to pick a pineapple or ask for a raincheck. And those are the stores that will help shape the next generation of shoppers. ■

PET SPECIALTY

SUPPLIER PERSPECTIVES

Premium Brands Still a Powerhouse for the Pet Aisle

By Joe Toscano, Vice President, Trade & Industry Development at Purina It can be easy to get caught up in trends and just focus on what’s new.

Trendy and new feels fresh and can offer an exciting world of possibilities.

In the pet category, this can mean that retailers sometimes overlook one of the largest categories in pet – premium pet food – which includes trusted, iconic brands like Dog Chow®, Cat Chow®, Friskies® and Beneful®. In fact, Cat Chow is the number one dry cat brand in the U.S. based on dollar sales1 and Dog Chow has the number one SKU in the dry dog category2.

These brands are true pet food powerhouses.

The pet category is booming. Over the last three years, the pet population in the U.S. has also grown by a little more than four percent and has added 7.5 million mouths to feed, which brings the total number of dogs and cats in the U.S. to 185 million.

Consequently, the pet care category continues to grow at near record highs. As of October 8, 20223, the pet care category has seen a 16 percent increase in sales versus the previous year. This strong growth is also seen in the premium pet food category with many of Purina’s premium pet food brands showing double-digit growth with most actually exceeding the total category growth.

But what does that mean for retailers?

In the dog category, premium dry dog food has the second highest number of households, and the highest pound buying rate. On average, the premium dog food household purchases 139 pounds of dog food each year, which is 38 pounds more than that of the value dog buying household. That is a lot of dog food! The premium dry cat food

category has the highest household count with roughly 19.7 million households buying premium cat food in 20214. On average, the premium dry cat households buy an average of 62 pounds of dry cat food a year, which is 63 percent more than super premium buyers.

When we look at grocery and mass stores, we also know that the majority of puppy and kitten owners start their pets off with premium dry food nutrition. Puppy Chow® and Kitten Chow® are the household leaders in puppy and kitten nutrition, and these brands are specially formulated to meet the unique nutrition needs puppies and kittens have during their first year of life to support their rapid growth and development. With such a large buying power, it is no wonder the premium segment has such a large impact on the total pet food category.

Nielsen Data, AOC+PR+ECOM, latest 52 weeks, ending 3/26/22 Nielsen AOC+PR latest 52wks ending 3/26/22 Nielsen AOC + PR through 10/8/22 4 Nielsen Panel Data ending 1/1/22 1 2 3

As we look ahead to the impact of ongoing inflation, we know that the premium pet food category will be key for consumers and retailers. The core consumers within the premium segment are the most loyal to their brand of any segment. This high degree of loyalty and confidence in these iconic brands means that premium pet food shoppers are not likely to switch.

It is important that retailers offer a variety of the premium formulas these consumers prefer and in the sizes they want. Retailers carrying the premium dog and cat food products their consumers desire are able to turn shoppers into loyal consumers who know they don’t have to look beyond your store to find what their pets need.

Are you allocating the right space in your store to value, premium, and super premium pet products? To learn more, reach out to your Purina sales associate.

Purina trademarks are owned by Société des Produits Nestlé S.A. Any other marks are property of their respective owners.

California Grocer Online Read California Grocer on your mobile device, or share with an associate.

cagrocers.com

PRSRT STD US Postage Paid Permit No. 1401 Sacramento, CA