California Grocer, Issue 2, 2024

2024, ISSUE 2

CALIFORNIA GROCERS ASSOCIATION

The New Food Frontier

Kevin Coupe on The Wellness Paradox

GLP-1 Drugs and the Rise of Health-Conscious Consumers

The California Consumers’ Financial Health

page 8

pag e 1 6

pag e 26

We are bringing together the ingredients for a better world

our planet our people our products our communities

to make change a Reality.

Great food isn’t possible without a healthy planet.

We’re committed to reducing our carbon footprint and nurturing the environment.

We’re committed to creating and sourcing sustainable products and reducing unnecessary packaging and food waste.

PEPSI, PEPSI-COLA AND THE PEPSi GLOBE ARE REGiSTERED TRADEMARKS OF PEPSiCO, INC.

THANK YOU FOR YOUR HARD WORK AND DEDiCATiON! KARL SCHROEDER OF SAFEWAY NORCAL DiViSiON AND DENNY BELCASTRO OF KiMBERLY-CLARK CORPORATiON.

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS Independent Operators Committee Chair DIRECTORS

CALIFORNIA GROCERS ASSOCIATION

Chair Lynn Melillo Bristol Farms

First Vice Chair Steve Dietz United Natural Foods, Inc.

Treasurer Richard Wardwell Superior Grocers

Immediate Past Chair Dennis Darling Foods Etc.

Second Vice Chair Michel LeClerc North State Grocery, Inc.

Secretary Jonson Chen Tawa Supermarket, Inc.

Joe Mueller Kellanova

Subriana Pierce Navigator Sales and Marketing

Karl Schroeder Albertsons Companies

Joe Angulo Chedraui USA, Inc.

Saj Khan Nugget Markets

Tim Nowell Procter & Gamble

Jeff Severns PepsiCo Beverages N. Am.

Suzanne Baker Unilever

Tyler Kidd Mar-Val Food Stores, Inc.

Brenda Palomino Amazon

Greg Sheldon Anheuser-Busch InBev

Gary Bickmore FMS Solutions, Inc.

Brandon Lombardi Sprouts Farmers Market

Bethany Pautsch Tyson Foods, Inc.

Elaina Budge Costco Wholesale

Bertha Luna Stater Bros. Markets

Eric Pearlman C&S Wholesale Grocers

Donna Simpson Certified Federal Credit Union

Pamela Burke Grocery Outlet, Inc.

Tim Mahoney Gelson’s Markets

Brian Pohl Classic Wines of California

Rocky Campbell C & K Market, Inc.

Brendan McAbee Bimbo Bakeries USA

Jeremy Runge GoPuff

Chris Dehoff Dehoff’s Key Market

Kelli McGannon King Soopers

JB Ryan Molson Coors Beverage Co.

Jon Giannini Nutricion Fundamental, Inc.

JR Medina Super A Foods, Inc.

Adam Salgado Heritage Grocers Group

Sergio Gonzalez Northgate Gonzalez Markets

Michael Molinar PAQ Inc.

Nick Sass The Hershey Company

Amber Hammond KeHE Distributors, LLC

Andrew Nodes Instacart

Casey Scharetg E. & J. Gallo Winery

President/CEO Ronald Fong

Director Local Government Relations Tim James

Controller Scott Inman

Elliott Stone Mollie Stone’s Markets

Senior Vice President & Chief Operating Officer Doug Scholz Vice President Government Relations Daniel Conway Senior Director Events & Sponsorship Beth Wright Senior Director Communications Nate Rose Director State Government Relations Leticia Garcia

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

Director CGA Educational Foundation Brianne Page Senior Director People Operations & Talent Management Jennifer Gold Senior Manager Marketing & Membership Sunny Porter Communications Manager Grace Becker Business Development Manager Bailey Dayen

Executive Assistant Delaney Faulkner Senior Accountant & Assistant Office Manager William Quenga California Grocer is the official publication of the California Grocers Association.

1005 12th Street, Suite 200 Sacramento, CA 95814 (916) 448-3545 (916) 448-2793 Fax cagrocers.com

Diane Snyder Whole Foods Market Chang So Hollister Super, Inc. Marc Swisher Mondelēz International Inc. Brad Thomas Kimberly-Clark Corporation Joe Toscano Nestle Purina PetCare Stephanie Wu The Save Mart Companies Kevin Young Young’s Payless Market IGA For association members, subscription is included in membership dues.

Subscription rate for non-members is $150. © 2024 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com Assistant Editor Grace Becker gbecker@cagrocers.com For advertising information contact: Bailey Dayen bdayen@cagrocers.com

CONTENTS | ISSUE 2

FEATURES COLUMNS

16

President’s Message Dimensions of Health .. . . . . . . . . . . . . . . . .

5

Chair’s Message Feeding Our Communities. . . . . . . . . . . . .

6

Viewpoint Sobremesa & the Wellness Paradox. . . . . .

8

Inside the Beltway Consumers Habits Shift as They Maintain a Positive Outlook on Grocery Shopping. . . . . . . . . . . . . . . . . . 10

The New Food Frontier GLP-1 drugs and the rise of health-conscious consumers.

Washington Report SNAP Choice Preserved. . . . . . . . . . . . . . . . 12 Capitol Insider One Half Down, One to Go. . . . . . . . . . . . . 15

22

?

The California Health Laws that Shape the Landscape for Grocers How California makes its mark on food safety standards far beyond the state’s borders.

Honoring 2024 CGAEF Hall of Achievement Recipients Karl Schroeder. . . . . . . . . . . . . . . . . . . . . . . . 32 Denny Belcastro. . . . . . . . . . . . . . . . . . . . . . . 36 Wellness Wellness Trends. . . . . . . . . . . . . . . . . . . . . . . 42 Mommy Blogger All the Things for All the People. . . . . . . . 64

DEPARTMENTS 15 Minutes With Julie Chapon.. . . . . . . . . . . . . . . . . . . . . . . . 40 Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . 50

!

?

CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 52 CGA New Members. . . . . . . . . . . . . . . . . . . 55

26 The California Consumer Financial Health Report What lies ahead for grocery spending and prices.

?

CAL I FORNIA G RO CER | 3

PRESIDENT ’S MESSAGE

Dimensions of Health

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

From our sense of physical wellness to the health of our personal finances, health and wellness can hold different meanings at different times.

California families. This occasion not only celebrates the achievements of the California WIC program, but also underscores the vital role of WIC’s continued partnership with WIC-authorized grocery stores throughout the state.

In this issue we’ve chosen to play around with the concept and its implications for the industry—to explore the potential impact of weight loss treatments, but also how the Legislature figures to play a role in Californians’ health. We have some fantastic stories for you.

Health and wellness isn’t just a theme in this magazine, it’s also playing out in the work CGA undertakes on the industry’s behalf every day. In partnership with Sen. Susan Rubio (D-Baldwin Park), CGA is promoting new legislation this year to expand food access. SB 1419 would earmark new financial incentives for grocers that open stores in food deserts or areas at risk of becoming one as defined by the USDA. The state is home to more than 10% of the country’s food deserts, but said differently, it represents a significant market opportunity if the right conditions exist. SB 1419 advanced to the Assembly at the end of May and the Association is pleased with how it’s been received by legislative partners.

Conversations around food access require acknowledging food pricing. As grocers, we know profit margins have remained

iStock

razor thin despite inflation. That’s because input costs have significantly climbed in the last four years. This isn’t unique to grocers, to California, or even the United States.

Nevertheless, grocery prices are something consumers come into constant contact with, often multiple times per week, and for 2024 the USDA predicts deflationary forces for grocery prices. In this issue, the CGA team caught up with some of California’s best economists to discuss where food pricing and consumer spending is heading in the next 12 months.

I also bring all of this up because our partners at the California Department of Public Health’s Women Infants & Children program are celebrating 50 years nurturing

If SB 1419 reflects one part of our story to expand food access, WIC represents another side of the coin. The last 50 years has been a testament to what can be achieved through public-private partnerships that shares a vision for a healthier California, where every family has access to the nutritious foods they need to thrive. This relationship has not only benefited WIC families, but has also enriched our grocers by allowing them to serve their communities in more meaningful and impactful ways.

CGA remains committed to strengthening our partnership with the California WIC program and to innovating, adapting, and expanding our efforts to meet the evolving needs of families through legislation and policy changes, such as SB 1419. As we always say, grocers anchor California communities. ■

CAL I FORNIA G RO CER | 5

CHAIR’S MESSAGE

Feeding Our Communities

LY N N M EL I L LO BR IS TOL FAR MS

When I was elected Chair of the CGA Board, I shared a few priorities and passions that I was eager to work on during my tenure.

The year started off strong as I had the opportunity to draw from my background in loss prevention to address the Little Hoover Commission on behalf of CGA regarding retail theft reform, as I discussed in my first Chair column. Now halfway through my term, I feel like I’ve struck gold as CGA sponsors a piece of legislation addressing an area close to my heart: food access.

Let me share with you some staggering figures around food insecurity. As of October 2023, over 3 million households in California—including over 1 million households with children—face food insecurity. Although California produces nearly half of the nation’s fruits and vegetables, more than 1 in 5 Californians— about 8.8 million—currently struggle with food insecurity according to the California Association of Food Banks.

As we consider many angles of wellness through the pages of this issue, having access to nutritious and wholesome foods lays the foundation. This year, CGA has partnered with Sen. Susan Rubio to introduce the California Food Desert Elimination Act, SB 1419, which seeks to provide financial assistance to grocery stores operators who wish to establish a store within a delineated food desert or areas at risk of becoming food deserts.

Despite it being a tight fiscal year due to the state’s tremendous budget deficit, as Louie Brown covers in the Capitol Insider column, it gives me hope to see SB 1419 advance through the legislature. At the time of this writing, SB 1419 passed through the Senate and is headed to the next house. It’s encouraging to see our lawmakers show commitment in this area.

iStock

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

C oretta Scott King once said, “The greatness of a community is most accurately measured by the compassionate actions of its members.”

Working in the food industry, I, and so many of my peers, feel a personal sense of responsibility to do our part to recover unsaleable goods that can create wholesome meals for those in need within our communities. Through my own company, Bristol Farms, Lazy Acres Natural Market and New Leaf Community Markets banners we are proud to partner with local food banks and organizations including FoodCycle LA, Food Finders, Second Harvest Food Bank of Orange County Santa Cruz and Silicon Valley, San Diego Food Bank, San Jose Conservation Corps and others to put to use wholesome goods that would otherwise be wasted.

I’m so proud of the work the Association is doing to help address food insecurity in our communities and make it more feasible for grocery stores to serve food deserts.

If you would like to help the effort, urge your legislators to support the Food Desert Elimination Act on CGA’s website. ■

fresh retail solutions

Find out more about our organic and conventional produce, plus our full floral program.

VIEWPOINT

SOBREME SA & The Wellness Paradox

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

The subject of wellness is on a lot of people’s minds these days.

Hence, the theme of this month’s edition of California Grocer. But when I was asked if I had anything to contribute to the conversation, specifically how it “translates to customer shopping habits and industry trends, weight loss drugs and their impact on the industry, consumers’ financial health amid inflation, and the health standards imposed on the grocery industry,” I must admit that I find myself to be conflicted.

Not because I’m anti-wellness. Far from it.

And not because I’m anti-weight loss. I’m in favor of it, when and where appropriate. In fact, weight loss is something that has long been on my mind, since I’ve struggled with weight all my life—as an adult, I’ve been as low as 180 lbs. and as high as 240 lbs. It is just one of those things that I think about, and try to act on, a lot.

As I get older, though, I find myself thinking about the concept of wellness, what it means to live a happy and fulfilled life, and the role of food.

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

Not long ago, the New York Times had a story about Dr. Bob Ross, of Ortonville, Minnesota, a community of about 2,000 people. Dr. Ross has been taking care of the people in that community for so long that in many cases he delivered children who are now in late middle age, and facing the inevitabilities of old age. Think of Moonlight Graham, and baseball playerturned-doctor played by Burt Lancaster in “Field of Dreams.”

(For context, the Times story was framed from a political perspective, pointing out that both major party candidates for the presidency are older than Dr. Ross. He didn’t seem to think that this was a good idea.)

In the course of the piece, Dr. Ross was giving nutritional advice to an elderly woman, and it all came down to seven words: “If it tastes good, spit it out.”

That’s where Dr, Ross, as saintly a man and physician as he may be, lost me.

For the record, that wasn’t all he recommended. He also suggested exercise.

“If your body’s healthy, that helps keep your mind sharp,” he said. I’ll buy that.

But, “If it tastes good, spit it out?” Nope.

I’m not suggesting that we should all eat like Mr. Creosote in “Monty Python’s The Meaning of Life.” (The uninitiated can go

iStock

to YouTube to check it out. Hope you have a strong stomach. And a slightly depraved sense of humor.)

However, there is an enormous difference between gross over-indulging and not eating anything that tastes good.

And people in the food business ought to make it their business to occupy that middle ground—offering options that are healthy (but not always, because indulgence can be critical to a happy life) while encouraging people to try new cuisines and expand their palates. I’m not talking about gourmet, specialty foods here, though there certainly is room for them in this continuum. I am talking about foods that can challenge the tastes buds, that try to move beyond the lowest-common-denominator approach typical of too many stores.

VIEWPOINT

iStock

There’s a difference between a bland meatball, and a rich, flavorful meatball. I don’t think it is calories as much as creativity.

Part of the problem, of course, is much of the oxygen in the room is being taken up by various approaches to weight loss and wellness.

There’s Ozempic and all the other similar products.

There’s the trend of (mostly) men eating nothing but red meat—rib-eye steaks, bacon and innards—and saying that it is the key to mental and physical well-being.

I know a woman who used to suffer from a variety of inflammations; she switched to an all-red-meat diet, and says she has improved immeasurably.

Of course, right after I learned about the all-meat craze, I saw an AARP article about foods that cause inflammation: “We’re talking all the usual suspects: red meat, white sugar, french fries, soda, pastries.

These pro-inflammatory foods can worsen joint pain … On the other hand, foods rich in omega-3 fatty acids—flaxseed oil and cold-water fish like salmon and mackerel— are considered anti-inflammatory and can help alleviate inflamed joints.”

What to do?

There are the various kinds of diets and fasting regimens that seem to catch fire on social media, then find their way into more traditional media, and often vanish without a trace, or until they find a second, viral life and a third and a fourth.

And, of course, there are the new studies that contradict the old studies, and that almost certainly will be contradicted yet again by newer studies. Red wine and coffee used to be good for us, until they weren’t. (In this case, I’m sticking with the old advice.)

Fasting just doesn’t seem particularly attractive to me—I’m one of those people who, because I live to eat, often starts thinking about tomorrow night’s dinner even before I’ve had this evening’s meal.

And Ozempic? I don’t think so, at least as long as I can avoid it. People I know who have tried drugs in this family say that they lose weight largely because a) they lose their taste for food and drink and b) they’re never hungry.

find room to market their products around the weight loss industrial complex.

But I also think they can do a better job of building marketing programs around foods that are good for us but can taste terrific, around aggressive recipe-and-sampling programs that delight the taste buds, and targeted to a population that wants to be healthier but also resists the if-it-tastesgood-spit-it-out mentality.

I think that food industry can aim higher by helping people live better, richer, more flavorful lives.

I recently saw the folks from Northgate Markets talk about the concept of sobremesa—when people sit around after a meal, satisfied and happy, engaging in conversation, perhaps with a glass of wine or tequila. It was a word with which I was unfamiliar, but I love it—and it is so far from if-it-tastes-good-spit-it-out.

Sobremesa seems like the very definition of being well. ■

I wouldn’t mind not being hungry as often as I am, but losing my taste for food and wine?

Don’t think so.

While this all is a challenge for me and my waistline, it strikes me as an enormous opportunity for food retailers. Yes, they can

CAL I FORNIA G RO CER | 9

INSIDE THE BELTWAY

Consumers Habits Shift as They Maintain a Positive Outlook on Grocery Shopping 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

shoppers continue to enjoy food shopping as much as ever As we approach the summer months when Americans will be shopping for barbecues, July 4th celebrations, and other outdoor activities with family and friends, it stands to reason that they will continue keeping a keen eye on food prices and finding ways to maximize the value they get from their primary grocery stores. The good news is that despite the inflationary environment over the last 18 months, shoppers continue to enjoy food shopping as much as ever.

FMI’s newest annual survey, U.S. Grocery Shopper Trends 2024: Finding Value, provides a crucial snapshot of consumer behavior and sentiment in the most frequently purchased consumer category amid ongoing concerns about the impact of inflation on the cost of groceries.

To manage higher prices, today’s grocery shoppers navigate purchasing decisions through a more expansive understanding of value, with increased attention to quality and optimizing purchases for relevance and waste reduction at home. Even channels strongly positioned around offering low prices are often evaluated in terms of criteria that are not just about price, but also include the quality or healthfulness of their product selection or their shopping experience.

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

T his is not to say that price is irrelevant to the value equation—91% of shoppers concerned with rising prices have made some changes to their shopping habits to achieve better price value.

While half of shoppers say they are looking for more deals, 32% are buying fewer items and fewer are cutting back on key food categories or attributes such as organic (15%) or fresh items (14%).

Consumers are also recalibrating where and how they shop to align their purchasing habits with whatever method works best for them and their families. Despite a decade-long trend toward mass retailers, 40% of shoppers now choose supermarkets as their main store, compared to 32% opting for mass stores. This is in part due to a shift toward convenience and one-stop shopping as well as the wider selection that supermarkets tend to offer.

And while frequent online shopping has almost completely returned to pre-pandemic levels, shoppers also increasingly value digital touchpoints. Fifty percent of shoppers use digital coupons, surpassing the 37% who use physical coupons. Additionally, 37% of grocery shoppers now use their mobile phones to compare prices across stores, a 28-point increase from 2016. This suggests an opportunity for retailers to think strategically not only about how they replicate physical shopping experiences online, but also how they integrate digital experiences in their brick-and-mortar stores.

Even as consumer habits continue to shift to find the best value, shoppers tell us they still enjoy shopping for food. FMI’s newly launched U.S. Grocery Shopper Sentiment Index—which accounts for shoppers’ collective feelings and attitudes toward grocery shopping as well as their feelings about their current primary store—finds that grocery shopper sentiment reached a post-COVID-19 pandemic high in 2023 (72 out of 100) and continues to remain elevated (70 out of 100 currently), with more than half of shoppers surveyed expressing positive feelings toward grocery shopping.

This strong score, achieved at the virtual peak of price inflation, suggests that higher

INSIDE THE BELTWAY

iStock

prices have done little to degrade the overall experience and outcomes shoppers encounter when grocery shopping.

Additionally, Americans continue to prioritize eating meals with family and cooking at home. Eighty-eight percent say they believe eating together is at least somewhat important; within that number, 31% say it is very important and 32% say it’s extremely important. Furthermore, 43% of adults say they “like” or “love” cooking, which is similar to levels reported for the past five years.

The data also indicates enjoyment varies across generations. Millennials and Gen Z say they ‘love’ or ‘like’ grocery shopping more than Gen X or Baby Boomers do.

The research shows that where and how

consumers shop for food also differs depending on age—it’s not just that younger shoppers have more comfort with online grocery shopping; younger shoppers are also more likely to have shifted their trips away from supermarkets and toward mass and other channels.

Ultimately, food shopping remains a labor of like—if not always a labor of love. Understanding why can illuminate opportunities to better serve value-seeking grocery shoppers. While offering savings and deals continues to be important to shoppers, additional opportunities can be found by recognizing the role of food engagement and experience for American consumers as they navigate today’s food shopping challenges. ■

To download the U.S. Grocery Shopper Trends 2024: Finding Value report, visit www.fmi.org/ grocerytrends. In addition to this report, FMI released reports on Online Shopping (https:// www.fmi.org/forms/store/ProductFormPublic/ u-s-grocery-shopper-trends-2024-online) and Eating & Cooking (https://www.fmi.org/ forms/store/ProductFormPublic/u-s-groceryshopper-trends-2024-eating-cooking). These reports are part of a five-part U.S. Grocery Shopper Trends series this year.

CAL I FORNIA G RO CER | 11

WA SHINGTON REPORT

SNAP choice preserved

G R EG F ER R A R A PR E S IDE N T AN D CEO N AT ION AL GR OCER S AS S OCIATIO N

deliberations continue on nutrition policies across the federal government A year ago, independent grocers were looking toward a reauthorization of the Farm Bill, the nation’s nutrition policy roadmap that’s supposed to be updated every five years.

Work toward a new Farm Bill has continued since last November, when lawmakers passed a one-year extension to the 2018 legislation.

A politically divided Congress continues to hammer out a new bill as they hear from key stakeholders on what aspects of the policy to retain, eliminate, enhance, or diminish.

NGA is pleased to see movement on the Farm Bill from both sides of the Capitol.

During the first week of May, Senate Democrats and House Republicans released their proposals for the Farm Bill.

The full summary of the Senate Democrats’ bill included several wins for independent grocers, including protection from fees, protection of SNAP choice, and increased funding for the Healthy Food Financing Initiative and nutrition incentives.

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

The House Republican bill includes the collection of retailer data and opens the door the future SNAP purchasing restrictions. It also cuts benefits slightly by making future Thrifty Food Plans cost-neutral. The House marked up the bill on May 23; as of this writing, NGA expected the bill to pass out of committee with minimal amendments.

Independent grocers have already chalked up a few wins on nutrition policy as NGA plays an active role in demonstrating to policymakers the importance of Main Street supermarkets in enhancing consumer choice and access to fresh foods and other daily staples.

In early March, Congress chose to protect grocers and Supplemental Nutrition Assistance Program (SNAP) participants by eliminating a proposed provision in the House Agriculture Appropriations that could have caused widespread disruptions and undercut SNAP’s effectiveness— a proposal that looked simple on paper but would have created confusion for program participants and resulted in a costly bureaucratic nightmare for small businesses around the country.

This provision would have sharply limited the types of foods covered under SNAP, and forced grocers to examine hundreds

of thousands of food items to decide which qualify and which don’t. The proposed pilot program would have asked the government to pick winners and losers in the grocery sector and harmed the 42 million SNAP participants who have diverse nutritional needs.

SNAP restriction proposals usually fall under Agriculture Committee jurisdiction and are fought in Farm Bill negotiations.

But the most recent Congressional push to restrict SNAP purchases is led by the chairman of the House Agriculture Appropriations Subcommittee, who is using his position on the dais to force this policy through as an appropriations policy rider.

Independent grocers also had a victory last fall when Congress, in bipartisan agreement, extended the prohibition on electronic benefits transfer (EBT) processing fees for SNAP as part of the one-year extension of the 2018 Farm Bill.

If EBT processing fees were allowed, stores of all sizes would have been forced to pay new fees on EBT transactions, which would likely reduce the number of participating retailers in the program. While NGA continues to fight for the permanent abolition of these fees, credit for the shortterm victory goes largely to the hundreds

WASHINGTON REPORT

of NGA members who appealed to their representatives in Congress about the negative impact these added costs would have on their communities.

grocers across America have long been valuable collaborators with federal and state government agencies in the implementation of WIC.

These grassroots efforts are crucial to the ongoing fight for policies that help independent grocers better serve their communities. Other priorities for the new Farm Bill include maintaining the current program structure and expanding and streamlining the Gus Schumacher Nutrition Incentive Program (GusNIP) to drive consumption of fresh produce.

More recently, NGA was encouraged by the final rule issued in April by the U.S. Department of Agriculture (USDA) to revise the food package within WIC, the first such revision since 2009. NGA submitted comments on the rule, supporting many of the food package expansions finalized by the USDA including expanded product offerings, pack size flexibility, product substitutions and “up to” amounts. Changes like this will improve consumers’ shopping experience and enable retailers to better meet their needs.

While not in the Farm Bill, Women, Infants and Children (WIC) has kept policy makers busy over the past few months as well. NGA supported the $7.03 billion in funding for the Special Supplemental Nutrition Program for WIC, which is an essential nutrition safety net for families facing hardship. Independent community

For example, the final rule allows states to authorize a greater variety of package sizes to increase variety and choice, while still providing participants with package sizes

that ensure their purchases add up to the full benefit amount. Expanding package sizes will allow for more flexibility for WIC participants and retailers. This will make the program easier for retailers to administer while building flexibility for participants.

For more details, read NGA’s complete summary of the rule changes. (https://www.nationalgrocers.org/news/ national-grocers-association-wic-blog/) In an election year, with control of Congress as well as the White House on the line, lawmakers will be paying particular attention to the needs of their home districts—all the more reason for independent grocers to make their voices heard as work toward a new Farm Bill and funding the government proceeds while the election season unfolds. ■

iStock

CAL I FORNIA G RO CER | 13

Family farms producing California’s freshest eggs.

fresh eggs.

SHOP OUR BRANDS!

Our local California Family Farms have been providing farm fresh eggs daily to your stores for generations. 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.

CAPITOL INSIDER

One Half Down, One to Go

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 first half of the 2024 legislative session ended with the House of Origin deadline on May 24.

Brown

As it goes these days with a supermajority in both houses, the deadline is rather anticlimactic. Courtesy votes are offered, and bad bills are the next house’s problem, meaning nearly all bills move, with only some making authors work for votes. Those that don’t survive the deadline are generally moved to the side by the author at the request of leadership to avoid too much drama.

Leading up to the House of Origin deadline, however, was the much-anticipated Suspense Hearing in the Appropriations Committees of both houses. With a $70 billion budget deficit and anticipated deficits for the next couple fiscal years, most were hopeful the committees would hold a higher-thanaverage number of bills (the Department of Finance included). In total, the two committees held 32% of the more than 1,000 bills, exceeding the annual average of 25%. Of those that advanced, many were amended in an attempt to reduce costs. However, most would agree, in the current fiscal situation both committees should have shown more restraint.

CGA’s top priority, SB 1446 (SmallwoodCuevas), was one of those bills amended coming out of the Appropriations Committee. However, it arguably became a whole lot worse.

The bill, sponsored by the UFCW, proclaims to prevent retail theft. It establishes minimum staffing requirements for selfcheckout and inhibits the implementation of any new “consequential workplace technology” in stores and distribution centers. Of course, the language doesn’t specifically prohibit the technology, but requires a “worker and consumer impact assessment” on the technology be completed with the inclusion of impacted employees as a condition of implementation.

This new language creates significant policy issues not analyzed by a Senate policy committee, namely the Senate Judiciary Committee. After considerable lobbying by CGA and other industry representatives, the Chair of Senate Judiciary Committee took notice of the new language and raised concerns with the author and colleagues on the floor of the Senate. Of course, our preferred approach would have been for the Chair and his allies to withhold their votes and stop the bill. But unfortunately, those hardline approaches are no longer the normal course of action. Rather, the Chair engaged in negotiations with the author and sponsors, ultimately agreeing to handwritten amendments and a handshake. Obviously, this is not how good public policy is made.

We now enter the third quarter of the legislative session, which is essentially the month of June. In less than thirty days, the policy committees of the second house are expected to analyze and “improve” more than 1,000 bills. This process takes four months in the first house.

As it relates to SB 1446, the bill will face hearings in the Assembly Labor Committee and Appropriations Committee. The Assembly Labor Committee rarely does anything to benefit employers, especially when the bill is sponsored by labor. On the other hand, the the Assembly Appropriations Committee sees policy issues differently and could play a pivotal role in determining the fate of this bill, but a lot of that depends on those handwritten amendments.

In the end, to stop this bill, the industry and others impacted will need to engage early and often with members of the Assembly and implement a comprehensive and coordinated strategy highlighting its deficiencies and negative impacts on the consumer. You can bet we will be prepared to do just that, and more! ■

CAL I FORNIA G RO CER | 15

THE NEW FOOD FRONTIER GLP-1 DRUGS AND THE RISE OF HEALTH-CONSCIOUS CONSUMERS

By Michele Fuller

iStock

Susan does a quick Google search about a frustrating health concern, and before she knows it, her screen and social media feeds are full of ads for weight loss products, dietary supplements, and trendy workout gear.

She’s bombarded with “solutions” to her problem, but how does she cut through the noise and know what’s right for her? Discovering the answer is the mission of the health-conscious consumer.

A

mericans’ approach to food and healthy eating is constantly evolving. In the past decade, there’s been a noticeable shift towards wellness and better-for-you options, extending even beyond weight loss goals.

Consumers increasingly opt for dietary products that support blood sugar regulation, autoimmune conditions, or heart disease. Many adhere to specific diets like vegan or keto, practice intermittent fasting, eat high-protein, or supplement for athletic performance. Additionally, there’s a rising demand for organic and sustainable foods rich in vitamins and minerals to support energy, health, and longevity.

Today’s shoppers aren’t always gravitating toward discounts or attractive packaging—they’re shopping for personalized nutrition and making intentional food choices.

Continued on page 18 ▶

CAL I FORNIA G RO CER | 17

◀ Continued from page 17

Breakthrough Drugs: Revolutionizing Health and Weight Management The emergence of GLP-1 receptor agonist medications like Ozempic, Wegovy, and Mounjaro brings a new dimension to consumer behavior by offering targeted solutions for managing diabetes, cardiovascular disorders, and obesity.

The drugs mimic the action of the GLP-1 hormone, increasing insulin and regulating blood sugar levels. These medications also reduce appetite by delaying stomach emptying, prolonging the feeling of fullness. While long-term side effects are still uncertain, studies indicate that taking these drugs can result in 15–20% of near effortless weight loss.

As more individuals seek out GLP-1 drugs for personalized health and weight-loss support, consumers are again redefining their interaction with food, bringing notable attention to the intersection of healthcare and consumerism.

Beyond the Scale: Transforming Health and Identity “Health and wellness is a really big topic that we’re constantly thinking about, which is how all the GLP-1s got on our radar very early,” says Natalie Borowski, Advisor at venture firm Coefficient Capital, “it’s part of that broader trend of living healthier lifestyles, weight management, and trying to decrease obesity in America.”

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

Dan Frommer of The New Consumer, in collaboration with Coefficient Capital, conducted a 2024 Consumer Trends Special Report, surveying 3,000 participants to gain insight into consumers’ attitudes towards health and diet. The study also included 388 Ozempic and other GLP-1 users to understand better how these medications could influence the food and wellness landscape and individuals’ lives.

The report reveals an overarching inclination among GLP-1 patients towards healthier living. Yet possibly more compelling is the transformative nature of these drugs beyond weight loss; they are impacting people’s identity and sense of self.

“Of those 388 people who filled out our survey and indicated that they were taking a GLP-1, 86% of them said they feel like a different person,” notes Frommer, founder of The New Consumer. “Most people said in a good or a neutral way, very few people said in a bad way.”

These GLP-1 patients report significant improvements in physical and mental well-being, increased activity, and social engagement.

“Beyond just whether or not they’re eating more ice cream,” Frommer adds, “I think the biggest picture is that this is not, for a lot of these people, a very kind of minor nuanced thing.

This can really change who they think they are and perhaps change the way they live and behave.”

Refining Diets: Navigating Quality Foods Given that GLP-1 drugs can cause patients to feel full faster, many users are more discerning about their food choices to avoid uncomfortable digestive symptoms such as nausea, vomiting, and constipation.

One Wegovy user on Reddit writes, “I have to search for what I feel like eating because nothing is calling me ‘eat me, eat me.’ Smells repulse me, and I just cannot eat much at a time.”

iStock

According to the survey, GLP-1 users consume more protein and less sugar and alcohol than before taking the medication. The inclination towards higher protein intake is notable, especially considering reports of muscle mass loss among GLP-1 patients.

“A lot of doctors that are closely monitoring their patients are recommending higher protein diets,” explains Borowski, “making sure that they’re taking supplements or protein powders to make sure they’re keeping that muscle mass and getting the protein they need.”

Borowski points out that 62% of GLP-1 users consume protein or nutritional shakes, identifying a potential market for grocers and suppliers to develop and stock new protein products and supplements tailored to the needs of the emerging GLP-1 consumer.

Upgrading Wellness: Investing in Healthier Choices The New Consumer and Coefficient Capital study juxtaposed GLP-1 users against the general population to more broadly understand whether consumers are trading up for higher-priced, higher-quality items or trading down in the grocery store.

“Just given kind of the macroeconomic environment and inflation, many consumers are actually overall in the grocery store trading down,” observes Borowski, “but GLP-1users are trading up in groceries overall and then specifically trading up in the protein they buy, the produce they buy, and the snacks both salty and sweet that they’re buying. And they’re trading up on their alcoholic and nonalcoholic beverages.”

The study also reveals a propensity among these shoppers to explore new food offerings. A surprising 27% of GLP-1 users report purchasing new grocery products and brands during each shopping trip, while only 3% of the general population do so.

Despite eating less and differently, GLP-1 users are choosing better products, extending beyond food choices. “If you feel like you kind of have a new lease on life and you need to buy new pants, you might as well get a nice pair,” notes Frommer, “or if you are going to eat a smaller portion of food, you might as well get better quality.”

Borowski anticipates this new consumer behavior will balance out grocery sales. “Just because volume might go down, they’re choosing things that are of higher price and higher quality,” she says, “Time will tell exactly in what direction that’s going to get pulled. But I think it bodes well for the broader CPG and grocery landscape.”

Precision Nutrition: Personalizing Dietary Plans The introduction of weight loss drugs has sparked a larger conversation about precision health, an alternative to the onesize-fits-all solution for medical care. Precision health emphasizes personalized strategies based on individual genetics, culture, lifestyle, and environment, facilitating more targeted prevention, diagnosis, and treatment.

At the forefront of this initiative is the Nutrition For Precision Health Project, a groundbreaking endeavor funded by a $170 million National Institutes of Health (NIH) grant. The project begins with the All of Us study, which collects data from 1 million Americans.

It is then broken down into three modules: one tracking 10,000 participants’ usual diets, another following 1,500 individuals on prescribed diets, and a third observing 500 subjects on researcherselected diets under lab conditions.

LSU Health New Orleans, where professor and Genetics Department Chair Dr. Lucio Miele contributes to the research, is among the 14 clinics participating in the study, including four in California.

“This is not a weight loss study,” says Dr. Miele. “It’s a study meant to determine how individuals vary in their personal responses to specific diets. Once the results are published, we’re going to have a wealth of information we haven’t had before that’s going to tell us much more precisely than we have been able to do so far, how somebody is most likely to respond to eating certain types of food.”

The study excludes participants taking appetite-suppressing drugs, like Ozempic, so researchers can gauge how people respond to the diets without using these medications.

However, Dr. Miele notes that “...part of the hope [of the study] is that a healthy and reasonably palatable diet will prevent people from being in a position of needing prescription drugs. But if they do need prescription drugs, that’s absolutely fine.”

Dr. Miele underscores the project’s potential to empower individuals to better understand their dietary needs. “Part of the goal of the project,” he says, “is to expand the health literacy of communities so that this information is widely available.”

Data from the project, analyzed using machine learning, will enable personalized dietary recommendations in the coming years. The final results are expected in 2027. Dr. Miele anticipates the widespread dissemination of findings will benefit healthcare professionals and consumers alike.

Continued on page 20 ▶

CAL I FORNIA G RO CER | 19

View the 2024 Consumer Trends Special Report conducted by Dan Frommer, The New Consumer in collaboration with Coefficient Capital at https://newconsumer.com/wp-content/uploads/2024/03/Consumer-Trends-2024-Food-Wellness-Special.pdf

◀ Continued from page 19

Empowered Consumer: Taking Control of Your Health Interest in precision medicine and health literacy isn’t just confined to research labs; it’s becoming widespread among everyday Americans.

There’s a growing trend for individuals to wear continuous glucose monitors and personal health trackers regardless of medical conditions. Similarly, the general public seeks out lab tests to gain insights into their unique biology, nutritional impact, and metabolic profiles. This surge in self-monitoring reflects a broader acknowledgment of the role of nutrition and lifestyle in addressing weight loss and health concerns.

Dr. Miele, who also co-chairs the Nutrition for Precision Health Project Community Engagement Committee, emphasizes the rising demand for personalized health information. “We’re getting from participants a lot of requests for their own data. What does it tell us?

It tells us that society is ready to hear about this information,” he says.

“That people want to know more than just ‘eat healthy and exercise.’

They want to know what exactly constitutes eating healthy for me?”

Expanding on this idea, Dr. Miele anticipates a paradigm shift in the food industry. “Those who provide food, like grocers, are probably going to have to carry a wider variety of items,” he suggests, “And I understand that creates some logistical issues, but the demand is going to be there.”

Food Transparency: Meeting Expectations Informed and health-forward consumers increasingly prioritize transparency in food packaging, a trend observed among both GLP-1 and non-GLP-1 users.

Borowski sheds light on this idea, noting, “It’s also interesting that a lot of GLP-1 users also do actually say they’re more conscious about nutritional labels, like checking calories, checking ingredients, looking at all the macros. So, it’s just a further emphasis on all the health and wellness trends that we’ve been seeing over the past few years and being really transparent around ingredients and where they’re being sourced from, and how everything’s being made.”

Dr. Miele echoes this sentiment and consumers’ desire for comprehensive information.

“Informed consumers are going to want to look beyond the buzzwords,” he explains. “The FDA labels do a reasonably good job, but [the consumer] is going to be looking for more information—as much information as they can—to make informed decisions. And so, those who produce

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

the food will do well to include as much unbiased information as possible on that packaging because people will be reading packaging more carefully as we move forward.”

The Wellness Era: Introducing the New Health-Conscious Consumer Consumer attitudes towards healthy purchasing have significantly evolved, driven by a heightened awareness of the profound impact of diet on overall well-being. Now, with the rapid increase of GLP-1 users, it is paramount for grocers and suppliers to adapt to these changes.

Frommer suggests, “This is definitely something to be aware of, to pay attention to, and to be creative about it and how you cater to the changing consumer needs. Whether it’s by changing the mix of what you sell in your store, offering a greater range of portion sizes, or paying specific attention to the things that people need more of, which seems to be protein or just simply healthy food.”

Borowski adds, “I just think it’s introducing a whole new block of consumers. Health and wellness has been a trend for a while, but now I think a lot of people who maybe weren’t part of it are being introduced to it because they’re on these GLP-1 medications.”

Innovation and responsiveness to these shifts involve more than altering product lines; they require a deeper understanding of what really matters to the new consumer.

“One of my favorite stats in our work is that more Americans would rather feel 25% healthier than earn 25% more money,” shares Borowski. “I think that’s really kind of the broader macro theme here.”

Reflecting on the societal implications of widespread GLP-1 usage, Dr. Miele observes, “We’re now running a very large societal experiment on having a lot of people on a certain class of drugs. The whole point of having a precision medicine initiative is that not only does not everybody respond to diet in the same way, but not everybody responds to medications in the same way. Is this safe and iStock effective for 100% of people?

Is it 98%? We don’t know.”

Although change won’t happen overnight, Morgan Stanley estimates that by 2035, nearly 7% of the U.S. population, approximately 24 million individuals, will be taking GLP-1 drugs. “Of course, I hope everybody benefits from them,” Dr. Miele adds, “but if some people do not, we need to find out. Because, again, that’s precision medicine.” ■

iStock

THE CALIFORNIA

HEALTH LAWS THAT SHAPE THE LANDSCAPE FOR GROCERS

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

BY TIM TOWNSEND

HOW CALIFORNIA MAKES ITS MARK ON FOOD SAFETY STANDARDS FAR BEYOND THE STATE’S BORDERS Whether it’s environmental or labor laws, many of California’s policies are designed to drive national standards. Food safety and consumer health is no different. The state’s unique government system, from the initiative process to its progressive politics, has ushered in new laws in recent years that are shaping what grocery stores sell.

The state’s food safety laws are shaped by ongoing skirmishes between advocacy organizations, supporting mandated regulatory policies and producers, and business groups, preferring self-imposed actions to protect consumer health.

However, as the nation’s largest consumer market, many of these health standards will be felt in other states regardless of whether they adopt them—putting pressure on the federal government to provide consistent national standards.

All this shapes the landscape for the state’s grocers to navigate.

NEW FOOD AND ENVIRONMENTAL HEALTH LAWS TAKE HOLD A few prominent examples of California-specific laws include Proposition 12, passed by voters in 2018. The initiative established minimum space requirements for food sold in the state produced by egg-laying chickens, breeding pigs, and calves raised for veal. Proposition 12 has dramatically altered farmers’ operations far outside the state—especially for pork and eggs—and experts have observed it has led to higher consumer prices.

The state has also looked to improve environmental health.

California’s new single-use plastic food packaging law aims to substantially reduce plastic use by 2032, and its decadeold single-use plastic bag ban has expanded to 12 states.

“Healthy Checkout Ordinances” that limit soda and candy from being sold at checkout aisles are also popping up in

cities, with Berkeley and Perris adopting local ordinances.

While these policy areas have mostly been the focus to date, a new law on food ingredients passed last year could signal the next forefront.

FOOD ADDITIVES BAN, HOW CALIFORNIA IS CHALLENGING NATIONAL STANDARDS The California Food Safety Act, the first of its kind nationally, shows an appetite for legislating specific food ingredients—a role traditionally left to the federal government. While initially branded the “Skittles ban,” that name was misleading. The law phases out four additives—brominated vegetable oil, potassium bromate, propylparaben, and Red Dye No. 3—from food products starting in 2027, giving manufacturers time to adjust their formulas. Impacting an estimated 12,000 products, Skittles are not included since titanium dioxide, found in the popular candy, was removed from the bill.

The law was spearheaded by national organizations like Consumer Reports and the Environmental Working Group, which argued that these additives are disproportionately consumed by children who are more vulnerable to potential negative impacts. While the affected additives are allowed by the U.S. Food and Drug Administration (FDA), they are banned by the European Union and several other countries.

Continued on page 24 ▶

CAL I FORNIA G RO CER | 23

◀ Continued from page 23

Opponents of the law, which included the California Grocers Association, are concerned that it moves away from established processes at the FDA, replacing it with a political process in the Legislature.

In its opposition, the National Confectioners Association said the law is “based on soundbites rather than science.”

PORK PRICES PROP

12

HIGHER

However, supporters said California needed to act because most chemicals used in foods are approved by the food and chemical industry and avoid meaningful scrutiny from federal regulators. “Since the FDA has failed to keep us safe, it has become the responsibility of states like California to step up and lead,” Scott Faber, from the Environmental Working Group, said after Gov. Gavin Newsom had signed the legislation.

So far, California is succeeding in shifting the national market toward its standards. Shortly after the law was signed, the FDA proposed banning brominated vegetable oil in food after the agency’s research showed adverse health impacts. Regardless of whether the FDA acts on other additives included in California’s law, the policy will likely change consumer products sold nationally as it will be cost-prohibitive for manufacturers to have Californiaspecific products. The New York Legislature has also introduced a similar bill.

While the costs to consumers for reformulating products are likely not large as they are phased in over several years, the impact of some of California’s other food safety laws is high.

HOW PROPOSITION 12 IS AFFECTING CONSUMERS AND PRODUCERS No California food standard has been more impactful than Prop 12, at least financially. Sponsored by the U.S. Humane Society, the ballot measure promised to enhance food safety and reduce the spread of diseases like salmonella by preventing farm overcrowding.

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

After a long-running legal challenge, the U.S. Supreme Court ultimately ruled the law is constitutional and does not violate federal interstate commerce provisions. The Court said California can set rules on products sold in its jurisdiction, even if those products were produced out of state. Implementation began on July 1, 2023, with retailers given until the end of 2023 to sell any remaining non-compliant products.

The impact on prices was quickly felt.

A preliminary study by the University of California found that pork product prices rose 20% on average, and demand for pork declined.

How well voters understood the economic trade-offs when deciding the initiative is unclear.

“California has a relatively small pork industry, so the opposition campaign to Prop 12 was limited. But the impacts are clear now.

It has resulted in higher prices on bacon and pork at the grocery store,” said Steven Fenaroli, director of the California Farm Bureau’s Political Affairs Division, in an interview for this article.

Proposition 12 also has significantly impacted egg prices, especially when combined with the effects of Proposition 2, a voter initiative passed in 2008. A UC Davis Department of Agricultural and Resource Economics report found that California egg retail prices have reached as much as $3 higher per dozen than in the Midwest, an outcome that researchers at least partially attributed to both propositions. The report also notes that disease spreads more easily in the egg production facilities required by the laws. California’s cage-free requirements standards are expected to be adopted by nine other states in the next few years. However, because animal products are produced across a large network of different farms, it has created a segregated market for California and other states with similar standards instead of leading to a nationwide trend as some proponents hoped.

California has a relatively small pork industry, so the opposition campaign to Proposition 12 was limited.

But the impacts are clear now.

“Farmers recognize the importance of good biosecurity measures,” said Fenaroli. “They take food safety very seriously. Protecting the food supply is a national security issue.”

THE ROAD AHEAD With California’s precedent for establishing food health standards, what comes next?

It’s unlikely that Prop 2 and 12 would have passed in the Legislature, but voters have been willing to approve them directly at the ballot box. With most of the state’s population concentrated in urban areas, the success of these propositions shows that progressive voters tend to be supportive of animal welfare policies and also view them as food safety issues. But with the economic costs becoming more visible and food costs rising, the success of future initiatives remains an open question.

When interviewed for this article, Consumer Report’s director of Food Policy, Brian Ronholm, expects California to continue pushing federal action. “Given that there is still a lot of activity at the state level on food dyes and chemicals, it may be too soon to predict what it means for future state-specific health standards.

However, much like the work going on now, states will likely continue to identify areas where they feel federal standards meant to protect consumers are weak or non-existent.”

Overall, the laws exemplify the ongoing tension between food producers and the advocacy organizations proposing how to best create healthy food requirements.

This year, new legislation is building on the California Food Safety Act by banning schools from serving products like Hot Cheetos containing six synthetic food dyes. Whether the bill will become law is unclear. However, as these efforts expand, the goal is to prompt the FDA and other federal regulators to take a more hands-on approach to food ingredients. This dynamic is similar to the way advocates in other sectors use local jurisdictions to eventually thrust statewide change upon various industries.

PRODUCER RESPONSIBILITY VS. MANDATES Fenaroli says that agriculture producers take their responsibilities to provide safe and healthy foods very seriously. As just one example, farmers are taking steps to prevent the spread of avian flu, which has infected dairy cows in other states, by working with regulators to limit the movement of cattle. As of writing this article, no cases of bird flu in dairy cows have been reported in California, and Fenaroli notes that avian flu from migratory birds is a yearly occurrence that usually presents no threat to the public.

“Farmers recognize the importance of good biosecurity measures,” said Fenaroli.

“They take food safety very seriously.

Protecting the food supply is a national security issue.”

The agriculture industry has also undergone efforts to minimize pesticides and fertilizers needed to grow crops, utilizing tools like integrated pest management programs to ensure healthy foods for their customers. “Farmers are incentivized to use as little as possible,” Fenaroli added.

The shift by advocacy organizations towards regulating food ingredients and away from more sweeping ballot measures like Prop 12 reflects voters being more cost-focused than in years past due to rising food prices and inflation. Financial concerns could also affect support in the Legislature for expanding environmental standards, such as adding additional requirements to last year’s plastic food packaging law.

While new statewide animal standards are unlikely, food producers are closely watching a local Sonoma County initiative sponsored by animal rights groups that would effectively ban most animal farming operations. Fenaroli says it would set a significant precedent, and if passed, it could be a sign of the next wave of policies imposed on farmers and ranchers.

While the future is always uncertain, one thing is clear. California’s policies will continue to shape what is sold in grocery stores and how those products are produced. ■

CAL I FORNIA G RO CER | 25

THE CALIFORNIA ?

!

?

! iStock

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

CONSUMER

By Nate Rose

FINANCIAL HEALTH REPORT

T

WHAT LIES AHEAD FOR GROCERY SPENDING AND PRICES

hree years ago, Dr. Chris Thornberg from Beacon Economics and the UC Riverside Inland Empire Economic Development Institute was on stage with the grocery community attempting in vain to explain why the wave of headlines about the dire financial straits of Americans during the pandemic was plain wrong.

Because of the unique role grocers play in consumers’ lives, sticker shock at the checkout stand is more pronounced than purchases made with less frequency, such as hot tubs.

The narrative is also complicated by politicians, who see grocery prices as a potential wedge issue. Nevertheless, the lack of data-driven conversation about grocery prices and the broader economy frustrates economists.

“The story has been based on the broader concept of what I’ve called miserabilism,” Thornberg reflects. “The idea of our government agencies is that Americans are suffering tremendously from technological change, unaffordable housing, inflation, low wages—they always have some story for why people are really suffering. When you look at the data, it suggests nothing of the sort.”

“Here’s the reality,” Thornberg insists. “If you sit down and look at the numbers—despite what people are saying—real incomes are up in the state and they have risen faster than prices in California. California prices are actually mostly in lockstep with the rest of the nation.”

?

The data, according to one of California’s leading agribusiness department economists, paints an entirely different picture. While the COVID-19 lockdown caused more than $1 trillion in economic damage, American politicians responded by stimulating the economy with five dollars of deficit spending for every one dollar lost to the pandemic slowdown.

The effect of this spending reflects an old expression in economics circles: Too many dollars chasing too few goods, to quote the UC Riverside professor.

Like many other sectors of the global economy, grocery pricing sharply rose from 2020 to 2023. With parts of the economy fenced off from consumers, spending poured disproportionately into particular channels, such as grocery stores or what the USDA terms the “food-at-home” category. It also caused anomalous distortions like six-month waiting lists for hot tubs.

A DEEPER LOOK INTO FOOD PRICES The U.S. Federal reserve recently studied the divergence between how consumers view their own financial health versus the health of the economy overall and found a significant gap in sentiment. This is the dynamic Thornberg calls “miserabilism,” but which has also been described as the “vibecession.” According Federal Reserve data, 72% of Americans are positive about their personal finances while only 22% feel similarly positive about the country’s economy.

Dr. Ricky Volpe at the California Polytechnic University, San Luis Obispo School of Food and Agriculture is another economist who takes issue with the predominant stories being told about the economy—especially when discussing the grocery industry.

“There is this narrative that food pricing is spinning out of control, and there’s no evidence for it overall. We’re actually flirting with deflation.”

Continued on page 28 ▶ CAL I FORNIA G RO CER | 27

◀ Continued from page 27

STILL, THERE IS ANOTHER ASPECT OF FOOD INFLATION THAT HAS GONE LARGELY UNREPORTED THAT

iStock

CONSIDERS HOW GROCERY SPENDING

RELATES PROPORTIONALLY

TO THE GENERAL CONSUMERS’ BUDGET.

For 2024, the U.S. Department of Agriculture predicts food pricing increases of only 1.2%, which would fall below the historical inflation targets set by the Federal Reserve. A smaller bump will be a welcome sign for weary grocery shoppers. Still, there is another aspect of food inflation that has gone largely unreported that considers how grocery spending relates proportionally to the general consumers’ budget.

“In the last couple of years, the average share of household income spent on groceries has fallen. This is especially true for the lowest quintile of households by income,” the Cal Poly economist says.

“What really matters is what we’re spending versus what we have. In fact, grocery spending has only gone up for the highest earners.”

It’s difficult to escape the headlines gathering around grocery store prices, and the topic remained top-of-mind for legislators when the grocery community visited Sacramento for CGA’s annual Grocers Day at the Capitol. The challenge is, again, one vulnerable to the stories we tell ourselves, whether or not they match reality. Or as Thornberg says, “Everybody has a grandfather who has told them about the days of five-cent burgers.”

Yet another reason this conversation feels more prevalent in California is that Californians already pay higher prices for almost everything. According to the Public Policy Institute of California, food prices—including food-at-home and food-away-from-home— have increased 27% and gas prices have risen 29% since 2019.

“California is the most highly regulated state in the union, and the food supply chain is more regulated here than anywhere else,” Dr. Volpe explains.

California takes pride in being first and using its economic might to set an example for the rest of the world. As voters, we tell ourselves our marketplace is large enough to be a changemaker.

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

C ar I n s u

r an c e

But like the story around the broader economy and grocery prices, what’s an attractive narrative is sometimes far from reality. For example consider the market for eggs. Proposition 2 and trailer legislation led to new standards for egg-laying hens for all eggs sold in California. The idea was to use the state’s market size to cause widespread change in the food system. Instead, it only created a smaller pool of eggs for California grocers to buy to stock their shelves. When avian flu led to large scale herd culling among bird ranchers, prices for eggs skyrocketed. In this way the state’s regulatory attitude towards the food industry can introduce greater fragility into the system. The dynamic isn’t unique to eggs sold in the state.

“Everybody understands if you regulate wages and protocols, you increase food prices,” Volpe explains. “But if you minimize the available pool of supplies that’s also going to increase prices because it reduces a grocery category buyer’s ability to shop around and get the lowest prices.”

To better understand food pricing, the Cal Poly professor closely tracks not just the Consumer Price Index (CPI), but also the Producer Price Index (PPI). While CPI analyzes the pricing consumers see when they visit a store, PPI gives researchers a way to understand how input prices are changing. Comparing the two indicators also allows for a better appreciation for grocery profit margins, which despite a blip in 2020 and 2021, have returned to being persistently razor thing regardless of inflation.

“Did profit margin change from inflation?” Volpe asks. “My best estimate is that for the supermarket profit margins have come down.

Average profit margins did expand somewhat in 2020 and 2021 as eating at home surged. But if you look apples to apples, measuring PPI against CPI, PPI has outpaced CPI by 20 percentage points since 2020. It’s very, very hard to argue that margins have increased.”

THE NEXT 12 MONTHS The U.S. Federal Reserve’s stated goal has been to stem inflation, translating to higher unemployment and a slower pace of consumption. However, the uniqueness of the pandemic adds an unusual layer, as the fences around experiential consumption have been removed. The effect has been to boost categories like tourism and eating at restaurants. The shift to services and experiences marks a slowdown in hallmarks of the pandemic—everything from groceries to Peloton bikes.

“Now you see people’s spending cooling off a bit, not fading or going away,” explains Thornberg. “While net worth has remained steady because prices are up, real net worth is settling down a bit. Still very high, but settling down. And people are full of stuff. Your garage is full; your storage is full. There’s no more space, so people are going back to services.”

According to both Dr. Volpe and Thornberg, the next 12 months should see the economy achieve a better balance in how the food dollar is distributed.

“My crystal ball prediction says we are reaching equilibrium again between eating out and eating in,” says Volpe.

Thornberg concurs.

“Grocery spending is down, in nominal terms, over the course of the last 12 months. You’ve seen a 1% spending increase in supermarkets and 12% increase in spending in restaurants. There’s the big shift; that’s what’s really hitting grocers. People are eating out; they aren’t eating in, simple as that. In some ways supermarkets are an inferior good as a class. People would rather have someone cook for them and clean up their table. So, when people are doing well, they shift towards a restaurant.”

“The real issue here is that wages are still rising dramatically for your typical supermarket,” the UC Riverside professor adds. “They continue to see rising food costs, rising labor costs, they’re still struggling to manage costs and at the same time, demand is flat because demand is shifting towards restaurants.”

Another unique dynamic for California is what’s happening in the restaurant industry: the minimum wage has risen for fast food operators to $20 and restaurants have lost their ability to add surcharges to cover regulatory costs. Menu costs are now increasing and there are already widescale reports of restaurant closures and jobs lost to automation. For grocery operators wondering if a higher minimum wage would change their hiring dynamics, Thornberg projects the opposite effect. As fast food worker wages rise, the incentive to implement automation will mean fewer fast food workers. These same workers will then flow back into the labor pool, allowing grocers to have an easier time finding employees.

These dynamics present a complicated scenario to navigate for a grocery industry that has experienced declining sales. Californians are stretched thin by the state’s high costs for transportation and housing. Spending is flowing back towards services and experiences.

The National Restaurant Association predicts the highest volume of restaurant sales ever for 2024, yet the Golden State’s dining out scene is teetering. Meanwhile, economists are hoping for a soft landing. These trends point towards reasonable growth amidst continued pressure.

“The economy is leveling out,” Thornberg predicts. “You’re going to see things move back to trend. Normal growth, 2 or 3%. Next year will be better than last year. No big slowdown. No recession. But no big surge either. While the equilibrium is there, and I think grocers can catch their breath, I don’t think any of these pressures are going to go away anytime soon.” ■

ACCORDING TO BOTH DR. VOLPE AND THORNBERG, THE NEXT 12 MONTHS SHOULD SEE THE ECONOMY ACHIEVE

A BETTER BALANCE IN HOW

THE FOOD DOLLAR IS DISTRIBUTED. “MY CRYSTAL BALL PREDICTION SAYS WE ARE REACHING

iStock

EQUILIBRIUM AGAIN BETWEEN

EATING OUT AND EATING IN,” SAYS VOLPE. CAL I FORNIA G RO CER | 29

September 29 – October 1, 2024 Palm Springs Convention Center The CGA Strategic Conference is the must-attend event for anyone looking to stay on the cutting edge of California’s grocery industry. Focused on the latest trends, pressing issues, and innovative solutions, this conference provides attendees with a unique chance to acquire invaluable insights, knowledge, and skills from industry leaders and experts.

Highlights include: • Over 1,000 private, pre-arranged business meetings • Inspiring and innovative guest speakers • Comprehensive education sessions • Continuous networking opportunities Come gather and collaborate with your California grocery industry trade partners to develop new strategies to impact your bottom line and accelerate your business into the food industry’s fast-paced future.

LIMITED SPONSORSHIP AVAILABILITY We have a limited number of conference sponsorship opportunities available. Check out our sponsorship prospectus on the website. For further inquiries, please contact Bailey Dayen, Business Development Manager. e-mail: bdayen@cagrocers.com | phone: 916.228.4436

REGISTER TODAY!

To learn more and register, visit: cgastrategicconference.com

Honoring

ABOUT OUR HONOREE

Karl Schroeder Karl Schroeder entered the world as the youngest of five children. His parents, having already learned the ropes of parenting by raising two boys and two girls before him, pretty much left him to his own devices.

“My parents both worked, and I was a latchkey kid,” Karl says. “There was plenty of love and support, but there wasn’t lots of helicopter parenting going on. I’m not even sure they knew where I was half the time.”

His family was close, however, and his childhood was a happy one, where the independence his parents gave him, coupled with a little German Catholic guidance, made him naturally inquisitive, free to learn, make mistakes, and understand consequences.

It’s possible a life in the grocery industry was always his destiny— before he was born his father briefly ran a small grocery store— but it was a destiny he’d embrace more out of necessity than anything else. In so doing, he’d embark on a career that would lead him to a life beyond his wildest dreams, much of it accomplished without a college degree, and set him up to inspire generations of future leaders.

GROWING UP IN WATERTOWN, NY Karl was born in 1958 and raised in Watertown, NY, which he describes as “a cold spot in the nation off Lake Ontario.” He was primarily involved in sports, including gymnastics, football, and track, until a love for music overtook him in 5th grade. His passion was, and remains, drums and percussion.

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

In those days, there wasn’t much conversation about college. His parents were blue collar and there wasn’t money for that sort of thing. There wasn’t money for much at all—if Karl wanted something, he had to find way to work for it.

“I’ve worked ever since I can remember—I started shoveling snow as a kid, I mowed lawns, I had a paper route—which I got because I wanted a bike,” Karl says. “My family ingrained a very strong work ethic in me.”

He started Watertown High School in 1972, and by his junior year was working as a clerk at the local IGA where he stocked shelves, ran the register, and acquired a little wisdom.

“My boss had two rules: Don’t mess with his wife, and don’t mess with his cash,” Karl says. “His wife was the morning checker, and it wasn’t long before I realized she was having an affair with the produce guy. That cemented two foundational rules in me: don’t steal, and don’t get involved with people at work.”

As high school ended, and with college still not really on the radar, Karl had plans to go into the Air Force, for music. He was set to leave in July 1976 when the recruiter called to say the music school was backlogged, and he could either defer a year or enter the Air Force right then and do something else.

KARL SCHROEDER

Neither option appealed to him, so at 18 with a vague dream to be a professional drummer and a couple hundred bucks in his pocket, Karl went west to Arizona.

LAUNCHING A CAREER “I learned quickly that I was going to starve to death as a drummer,” Karl says. “I was living in an apartment with three other guys and having the time of my life, but running low on money. So, with a tie on and my IGA experience under my belt, I walked into a Safeway and asked for a job.”

He also worked up the ranks at Safeway during those years, although he’ll tell you it wasn’t by setting goals and working toward them.

That came later. In those early years, his success was built on two things: fear of failure—he had a wife and a family to feed, and a drive to show he could be successful.

He worked extra shifts, did jobs no one else would, and one summer he even worked at three different stores. Eventually he realized there was no job he hadn’t done, and he’d learned the grocery business from the ground up.

The job interview consisted of the store manager asking if Karl had put on the tie to get the job, and if he was willing to “lose the earring and cut his hair.” Karl said yes to both and was hired.

He never even filled out an application.

That first job involved emptying trash, cleaning toilets and shagging carts. It was honest, paying work, but the probably not the stuff of great biographies— with two exceptions.

First, it taught him to value employees at every level of the company. The second was the day a young woman of east Indian descent came into the store.

“My high school class had 360 kids, and 358 were white,” Karl says.

“So, when I helped this woman bag her groceries, I had to ask her, how did she get such an even, all over tan?”

The look she gave him is probably best left to the imagination, but with dignity and composure she told him she was Indian.

With plenty more room in his mouth for his foot, he asked, “Oh? Which tribe?”

Her name was Aurelia. He married her four years later.

“The old school story is that the grocery industry can be a career path for people starting at the bottom and going all the way to the top. Karl IS that story,” says Ron Fong, President and CEO of the California Grocers Association. “And he did it all at the same company—he’s the quintessential loyalist and professional.”

Shortly after learning the business from the ground up, Karl would get the opportunity to learn it from the inside out and embark on an executive-level career that would all but define the concept of servant leadership.

Along the way, as much as he valued his job, he realized it was not the kind of work he wanted to do for the rest of his life. He enrolled in classes at Arizona State University and Mesa Community College, eventually focusing on completing his associates degree at Mesa.

The whole thing took seven years, taking classes part time.

It might have gone faster if not for algebra. He’d started algebra several times at ASU, only to find he was getting lost about a third of the way through. He worried math was an area of weakness for him, but decided to try one more time at Mesa.

“It was the smartest thing I ever did,” Karl says. “I had a fantastic teacher who helped me turn math and analytics into a strength— and I learned the real value of perseverance.”

Continued on page 34 ▶

CAL I FORNIA G RO CER | 33

KARL SCHROEDER ◀ Continued from page 33

THE GAME CHANGER

A SERVANT LEADER

By 1987, Karl had managed six stores in Arizona, and he got an opportunity to attend the Food Industry Management program (FIM) at USC. FIM is an intensive, full-time program designed to develop the next generation of leaders in the food and grocery industry. Today it’s a 16-week program; in Karl’s time it was a full year. Companies select promising employees to go through the program and pay their salaries, benefits, and housing costs.

Tuition is provided by scholarships from the Western Association of Food Chains (WAFC).

In 2002, Karl was promoted to senior vice president of corporate retail operations and named president of Safeway’s 178-store Eastern Division, followed by a promotion to president of the Northern California division in 2004. Over the next eight years, he would accomplish two significant goals. First, 36 years after finishing high school, and with great fanfare from his colleagues, he earned his bachelor’s degree from the University of San Francisco.

So Karl and Aurelia loaded up their three kids and left for Southern California. With little money or room for furniture, the adults slept on the floor that entire year as Karl went through the program.

USC bills FIM as “transformative” and Karl couldn’t agree more. He became a true believer in the power of education to help people succeed.

Second, he became a company leader who inspired, motivated, encouraged, and cared for every single person he oversaw, mentoring many of them into successful careers of their own.

“I’ve never worked with anyone who exemplifies the idea of a servant leader more than Karl,” says Eureka McCrae, Safeway’s vice president of operations. “He genuinely cares. He takes the time to reach out with a phone call or a personal note to see how we’re doing. Every time you talk with him, you leave knowing you can accomplish whatever your goals are, and you’re motivated to work even harder towards them and for Karl.”

Kelli Elson, Safeway’s Northern California Division vice president of operations, agrees.

“He creates an amazing air of family—my first year as a District Manager my parents had moved away and I was going to be alone for Thanksgiving. Karl and Aurelia invited me to their home. That really speaks to who he is as a person.”

“It was a game changer,” Karl says. “It was an explosion of understanding about our industry, and an incredible confidence builder. Mostly, it imprinted upon me the value of helping other people access education that would advance their careers.”

Karl’s career went into high gear. He returned to Arizona and became a district manager, then moved on to manage multiple districts. In 1991, he became a district manager in Northern California where Safeway’s new CEO Steve Burd (himself a Hall of Achievement honoree in 2000) was a resident. Steve reached out to Karl with a proposal—if Karl would teach him everything he knew about the grocery industry, Steve would teach Karl everything he knew about business. It was the start of a friendship that continues to this day.

“Karl is a man who spells integrity with all capital letters,” says Steve (now retired). “He’s respected across the entire organization.

Not many people know he made it to SVP at Safeway, running the largest division in the company, without a college degree, and yet he’s become a huge advocate of continuing education.”

Stories like that are prevalent among everyone who’s known Karl.

There are stories of him helping a woman who accidentally locked her baby in her car. There are stories of his uncanny ability to leave people feeling like they’ve learned something. There are stories of how he encourages everyone to take fear out of the equation in addressing challenges. Central to it all is a common thread of helping people be their best.

“We had a speaker named Captain Michael Abrashoff, who wrote a book called ‘It’s Your Ship’,” says Carole Christianson, WAFC’s former chief operations officer. “He was a Navy Captain who

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

KARL SCHROEDER

turned around an underperforming vessel. Karl bought copies for every one of his store managers, nearly 300 of them, and then met personally with each one of them to talk about their careers.”

In those talks, he asked each person three questions: 1) If things work out perfectly in your career, what’s the ultimate job you’d like to have in our company?

2) What are you doing to prepare yourself for the path to that route?

He’s been a speaker in the FIM program for the past 15 years and has spoken on leadership and servanthood to thousands of current and future leaders all across the industry. He does 100-mile bike rides to raise money for cancer research. He grows wine grapes, he’s served on nonprofit boards, and he even manages to bang on a drum every now and then.

And oddly enough, when people think about Karl, one of the last things that comes to mind is what he does for his actual job.

3) What can I do to help you achieve your career goal?

What help do you need?

“The power of those conversations is they connect me to the individual, connect them to the organization, and encourage them to think and act like owners,” Karl says.

Something else most people mention about Karl is his “Attributes for Success” pyramid. It’s something he developed for himself, but now presents to current and future leaders across the country. At its base—the foundation—are the words “Be Honest—Character.”

The next level has blocks for “General Management Thinking,” “Setting Goals,” and “Walking the Store,” followed by a third level with “Communicate,” “Value Every Associate,” and “Utilize your Experience.” The fourth level covers “Be Courageous” and “Be a Keeper,” and at the top of the pyramid, governing it all, is “Balance in Your Life.”

“These are the attributes that contributed to my success…

I went from the guy who cleaned toilets all the way to a company president—without a college degree,” Karl says. “That says a lot about the opportunities in this company, and in this industry, and that’s what I hope to impart. I want people in this industry to see they have doors open to them, and if they take advantage of that, they can live an amazing life.”

FOR A MAN WHO LOVES MUSIC, A FINAL MEASURE A USC theme Karl has embraced is “Lift as you Climb.” It can mean many things, but at its heart, it’s a call for intentional action.

It’s a phrase that measures someone’s success not by what they’ve achieved for themselves, but by how many lives they’ve made better.

Karl has three sons who are an endless source of pride and joy, a loving wife, and four grandchildren he adores, but his “family” is geometrically larger. At his recommendation (and encouragement), dozens of Safeway employees have gone through the FIM program and are now in leadership positions throughout the company.

“I deal with a lot of numbers—we do tons of sales every week, and that fear of math I overcame back in my Mesa College days helps me manage a spreadsheet and deliver a good P&L,” Karl says, “But I know I’m never going to be remembered for the numbers I crunch. It’ll be for the people I’ve had the privilege to serve.” ■

CAL I FORNIA G RO CER | 35

ABOUT OUR HONOREE

Dennis J. Belcastro Denny Belcastro’s grocery career started when he was seven, sweeping floors and sorting soda bottles (although in Pennsylvania they called it “pop”) at Chotiner’s Market, where his mom was a clerk. But it was the three years spent working at the local steel mill that really set him on his path.

was in high school, he’d moved up from sorting soda bottles to a job stocking shelves and eventually delivering groceries in Mr. Chotiner’s station wagon.

It’s fair to say a life in the grocery industry wasn’t his driving focus in those years. In fact, his job was almost a side note to his high school experience.

“I was elected class president at Aliquippa High in my junior and senior year, and I kept busy,” Denny says. “My interests were sports, music, and I was very active in student council. I was also captain of the baseball team and learned a lot about building teamwork and alignment those same two years.”

“I learned two things at that mill,” Denny says. “One, when you combine multiple elements, [like coke and iron ore to make steel], you have the power to make the end product stronger. Second, I learned that I really didn’t want to work in a steel mill long term, but really enjoyed working with others.”

He was in college at the time and devoted himself to combining study and good grades to build a better career, one that would be deeply influenced by baseball and the Wizard of Oz movie, shaped by a personal mission to “Inform, Educate and Inspire,” and defined by the importance of fostering relationships.

A LEADER IS BORN Denny was born May 10, 1954, in Sewickley, Pennsylvania, the third child of a former Marine drill instructor father who provided the discipline, and a working mom who provided the nurturing. Together they combined to teach their children balance between a strong work ethic and an Italian Catholic family tradition that fostered a mindset toward “doing the right things.”

They lived in West Aliquippa, which Denny describes as a true melting pot of nationalities and ethnic diversities. Chotiner’s Market was across the street from their home. By the time he

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

He also played football as a sophomore, joined the Bach Choir, Spanish club, the CFH Community Service group, and played the organ at St. Joseph’s Church at every Saturday evening mass.

At the 1972 graduation ceremony, Denny was presented with the Mario Sullivan Community Service Award, the highest recognition given to a senior for their leadership. After graduation, Denny had lofty ideas to parlay his love of sports—baseball particularly—into the next chapter of his life. Fate, however, had a different plan.

DENNY BELCASTRO

FROM BASEBALL TO PLANTERS TO OREOS

LESSONS FROM OZ

The J&L Steel Plant was walking distance from their home, and his father had worked there all of Denny’s life, so there was a sense of legacy when Denny took a job at the mill in his senior year. His job was shoveling coal and “coke” (a byproduct of heating coal to very high temperatures) off the rail tracks and working on the coke oven production. He stayed there for three years, earning money to pay for classes at Edinboro University of Pennsylvania, where he was studying media communication and journalism. His plan was to be a sportswriter.

The chronological story of Denny’s career with Standard Brands/ Nabisco/Kraft Foods reads like a manual on how to succeed in business. He got promotions every 2–4 years, taking on greater responsibility and larger portions of the country. He lived in Canton, Pittsburgh, Chicago, New Jersey, then back to Chicago.

He went from sales representative to regional manager, regional vice president, area vp, and ultimately senior vice president— taking time to earn a master’s degree in business and organizational communication from Northwestern University in 1994.

Denny played baseball all four years in college and continued his leadership development— he was named team captain his sophomore through senior years. He was selected to participate in a college all-star game at Three River Stadium in Pittsburgh and got an opportunity to attend a minor league training camp with the Philadelphia Phillies after graduation in 1976.

It was there that things took a dramatic turn.

“I was catching, and making a play at the plate while a runner was trying to score,” Denny says. “His shoulder slammed into my right knee, dislocating it. And that was the end of professional baseball for me and my career dream.”

The injury left him with an unclear path for what he’d thought was his chosen profession. So, he went home, back to what he knew best—the grocery business.

One of his first stops was back at Chotiner’s Market where Mr. Chotiner himself encouraged him to look for a sales job with a consumer packaged goods (CPG) company.

He took the advice and soon had three job offers, ultimately choosing a job in retail sales with Standard Brands. That job appealed to him for two reasons—one, because of his past grocery work he was familiar with the product lines like Planters Nuts and Blue Bonnet Margarine. Two, it was based in Canton, OH, which was only a couple of hours from his family home.

Standard Brands merged with Nabisco Foods in 1981 and, thanks to a fantastic group of managers who provided outstanding training, exposure and development, Denny spent 35 years with the company—the last ten years as part of Kraft Foods—all the way up until his “first” retirement.

His work in all these areas and job titles distinguished him in the company and the industry, but it was his contributions to the lives and successes of the people he worked with—inspired by a movie of his youth—that made him a legend.

As a child, one of Denny’s favorite movies was the Wizard of Oz, because it was one of the few movies that were kid-oriented, had great messages, and it was on TV every year.

“Over time, the movie built into me the idea of going down the path of life,” Denny says, “The first stop, brain, means making sure you get a great education. The next stop, heart, means being caring and empathetic to others as you build a career. Finally, have the courage to take risks along the way to continue to learn and self-develop.”

In embracing those ideals in his own career, Denny had a profound influence on countless colleagues. One of them was Kurt Laufer, now president and chief customer officer with KimberlyClark and to whom—in a fun twist—Denny now reports.

Kurt first met Denny in 1998. At the time, Kurt was in marketing with Nabisco, while Denny was running national customer teams. Denny was “working a room” of fifty people.

“I watched him own that room, taking the company and making it relevant to the customers, and I said to myself, ‘that guy can drive relationships better than anyone I’ve ever seen,’” Kurt says.

Seeing Denny in action that day was a catalyst that compelled Kurt to move from marketing to sales, and ultimately into the job he has today. When he came to Kimberly-Clark in 2018 and learned he’d be working with Denny again, he was thrilled, but not just for Denny’s business prowess.

Continued on page 38 ▶

CAL I FORNIA G RO CER | 37

DENNY BELCASTRO ◀ Continued from page 37

“There are few people I’ve met in this industry who invest more time in people,” Kurt says. “He’s such an incredible mentor—he has this unique ability to know exactly when to step in and provide advice to help people grow.”

That’s fueled by something else Denny learned from The Wizard of Oz—all the characters already had everything they needed by the time they reached the wizard. It’s a theme Denny uses to encourage others, particularly young people, to look within themselves as they follow their own road to success. At the same time, the fact that Dorothy and her friends all worked as a team isn’t lost on him.

Here again he sees how combining strengths and working together can lead to amazing results.

It’s not just that Denny’s a great mentor and collaborator, however.

It’s also how he does it.

“Anywhere Denny goes, you get the authentic, genuine Denny,” says HeeSook Alden, formerly with Gelson’s Markets. “It’s never just about ‘connection’ with Denny. He fosters good, meaningful relationships with people.”

HeeSook experienced that for herself a few years ago when her parents died within days of each other. Denny was one of the first people to reach out to her with a sincere card, telling her he was praying for her.

“I’ll never forget his kindness” HeeSook says. “I think we need a little more of that in this world—people who are empathetic leaders… and genuinely kind.”

“I think Denny is one of the world’s finest people; in good and bad, he’s always ready to provide support for what’s needed, in the industry, in life, and as a friend,” Leslie says. “He was a tremendous supporter when I joined FMI 15 years ago, and it was at a time when I needed that support. He always had good advice for me, helped me think through difficult challenges, and proved to be just a prince of a guy on a professional and personal level.”

At the same time, and consistent with his Oz takeaways, he focused on how to enhance educational opportunities for younger people in the industry.

“As soon as I transitioned into a more industry role, I took the approach of ‘payit-forward,’ and dedicated my efforts to train and develop the next generation of industry leaders,” Denny says.

He worked with the National Grocers Association, the California Grocers Association, the Western Association of Food Chains, and The Food Industry Association, providing expertise, career development programs, and industry funding for scholarships and continuing education.

“Denny is a true industry leader who has selflessly given so much of himself to make our industry better and stronger,” says Greg Ferrara, president and CEO of the National Grocers Association.

Denny stayed with GMA for three years, complimenting his educational initiatives with support for philanthropic causes within the industry, particularly “Feeding America,” a nationwide food banks network that helps feed nearly 50 million people annually.

SERIAL RETIREMENT Denny made his first retirement attempt in June 2010. It lasted a month.

“I was recruited to pursue a broader industry role in Washington DC with the Grocery Manufacturers Association (GMA) as executive vice president of industry affairs,” Denny says.

It was in this role Denny could make substantial contributions to industry, and to the industry’s overall impact on society, particularly in education. He led industry efforts to forge a coalition between retailers and suppliers called the “Trading Partner Alliance” and launch industry collaboration initiatives. He advised GMA’s CEO on industry challenges and helped spearhead industry initiatives on health and wellness education.

Leslie Sarasin, president and CEO of FMI—The Food Industry Association, remembers Denny as much for his industry contributions in those years as for his friendship.

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

In 2013, he was recruited to become vice president of government and industry affairs for Hillshire Brands, to help the company navigate a host of legislative and regulatory issues. In 2015, when Tyson Foods purchased Hillshire Brands, Denny made his second retirement attempt.

That one lasted 10 days.

DENNY BELCASTRO

and middle school students. Beyond academics, the program also teaches kids the virtues of justice, kindness, hard work, moral character, respect, and humility, among others. Denny has served on the organization’s board for the past three years while also helping with fundraising, organizing events, and regularly visiting the center to play piano for the kids and talk with them about how to be successful in life.

JUST WHEN HE THOUGHT HE WAS OUT...

What started as an advisory role with Kimberly-Clark led to a job opportunity that was just too attractive to give retirement a real go.

He was brought in to fill a new role at the company, vice president of industry affairs and customer development. They asked for “two good years” from him. He jokes that he must not have given them that yet, since he’s been there for nine, forging strategic, enduring partnerships for Kimberly-Clark’s growth. Once again, combining things to make them stronger.

“What made Kimberly-Clark fit my lifestyle—and life stage—was the shared values and the culture of caring that exists within the company,” Denny says. “Our vision of building a better world starts with a caring culture, and transforming ideas into innovative products that provide solutions for today’s consumers.”

“Denny has a huge heart and really cares for the kids we serve,” says Glenn Wilke, executive director of Midtown Metro Achievement Centers. “He really sets an example—sometimes in your career you’re so driven to achieve success that you can forget to give back, but Denny is an exception.

He’s incredibly generous with his time.”

GOODBYE YELLOW BRICK ROAD? Now approaching his 70th birthday, Denny still talks a good game about retiring, but the relationship building and collaborating with others that have helped him build a career most people would envy are still a major source of joy and motivation to keep going.

That, and a personal mission to Inform, Educate and Inspire, which drives him to do his best every day, is not something easily sidelined.

“I have been very fortunate to be supported by my entire family, especially my wife Marsha, who gave me the unwavering encouragement to commit to this journey. We raised three terrific kids, Chris, Craig, and Courtney, and provided them the opportunity to pursue their dreams and career aspirations.”

As for the future, Denny says, “I look to stay informed on issues important to our company, industry and customers, to educate my colleagues on what I’ve learned to help them be successful, and inspire others to think differently,” Denny says. “There are countless ways our industry can innovate to serve consumers better, so I’m always challenging myself and others to find new ways of working together.”

He also continues to give generously of his time and personal resources. Roughly 10 years ago, Denny and his wife volunteered to support the Declan Drumm Sullivan Foundation to benefit Horizons for Youth, a Chicago-based organization that helps kids graduate high school by providing scholarships, mentoring and college preparation. To date, that program has raised more than $10 million in pursuit of its mission.

Denny is also deeply involved with Midtown Metro Achievement Centers, a Chicago organization that provides tutoring and educational support programs for low-income elementary

It’s that outlook that leaves Ron Fong, president and CEO of the California Grocers Association, secretly hoping Denny never stops working.

“As the role of ‘Industry Relations,’ is slowing phasing out of our industry, and as a society we communicate more and more through devices instead of face-to-face, we’re losing some of the power of what people like Denny do to create lasting meaningful relationships,” Fong says. “I hope he never retires. He’s the last of the Mohicans.” ■

CAL I FORNIA G RO CER | 39

15 MINUTES WITH…

Juli e Cha p on C o-fou nd e r of Yu k a

By Grace Becker Julie Chapon is co-founder of Yuka, an app that scans the barcode of food and personal care products to analyze their impact on health and the environment.

Based on a product’s ingredients, Yuka considers nutritional quality, the presence of additives, and its organic component to assign items a health score and recommend alternatives.

Founded in France in 2015, Yuka is an independent project and receives no funding from brands or manufacturers to maintain objectivity in its ratings and product recommendations. In fall 2023, Julie and her co-founders, brothers Francois Martin and Benoit Martin, packed up with their families and moved overseas under one roof in New York City to support the growth of Yuka in the U.S. and better adapt the app to American users’ needs.

Yuka’s mission is to help consumers make better choices by providing ingredient transparency, and to embolden consumers to use their buying power as catalysts for change so manufacturers improve what’s in their products. Today, the app has 54 million users—over 12 million in the U.S.—and is available in 12 countries. Julie runs Yuka’s communication, content creation, and customer service.

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

Coming from France, what has been the biggest culture shock living in the states so far?

One of my biggest surprises upon arriving in the U.S. was realizing how different the meal culture is here. In France, we always take a proper break of at least an hour at midday to eat. However, in the coworking space we work out of, we noticed that people often eat in front of their computers. We’re always alone in the dining room!

What differences have you noticed about how Americans use Yuka versus users in other markets?

Grace: The Yuka team recently moved to the U.S. What went into the decision to move abroad?

Julie: We decided to move to the U.S. because, since January 2022, the U.S. has been our top growth country among the 12 countries where we are present, and we didn’t have anyone there. We had three objectives in expanding to the U.S.: One, adapt the app and communication to the American market, which is very different from the European market in some respects. Two, accelerate growth by speaking to the media, and for that, it seemed essential to be onsite. And three, recruit a small local team, to then be able to return to France.

In the U.S., there has been stronger interest in the cosmetic part of the app compared to Europe. Young Americans start using cosmetic products quite early, and we’re seeing this trend reflected in Yuka’s U.S. user base, too. We’ve also noticed that Americans are more likely to buy the premium version of the app—in Europe, it’s quite difficult to get users to pay for an app. I don’t know if this is related to a stronger digital consumption culture, higher purchasing power, or the fact that Americans value convenience more and are willing to pay for apps that make their lives easier.

Perhaps it’s a bit of all three!

15 MINUTES WITH...

What has been your process to better understand the American consumer?

We organized meet-and-greet sessions with Yuka users on site, meeting about 20 people from different backgrounds. It was very interesting, and we learned a lot. For example, we realized that our independence, meaning we have not taken any outside funding, could be seen as a surprisingly positive aspect, and that we needed to highlight it much more. We also realized through these interviews that we were displaying the European code for naming additives in the app (the letter E followed by three digits), which didn’t make sense to Americans, so we modified the display of additive information for the U.S. market.

Finally, we participated in trade shows where we had a booth to present the app, get feedback, and answer questions.

What themes related to health and wellness are coming up in conversation with American Yuka users?

We hear a lot about the difference in regulations between Europe and the USA. American users feel that European regulations are more protective, which is indeed the case. There are food additives banned in Europe that can be found in American products, such as titanium dioxide or potassium bromate. Sometimes, the same product can have different compositions in the U.S. and Europe, like Skittles, M&M’s, or Froot Loops. In the U.S., they contain highly controversial additives that are not present in their European counterparts.

This magazine issue is all about wellness. To what do you attribute consumers’ increasing interest in prioritizing wellness and transparency around the ingredients in their products?

In the U.S. and Europe, numerous food scandals have made headlines over the past 10 years (meat contaminated with salmonella, flour contaminated with E. coli, and so on). This has contributed to growing consumer distrust of the food industry, which we previously almost blindly trusted

to sell us products that were good for our health. As a result, consumers have become more conscious about what’s in their food and demand more transparency about the ingredients. Public campaigns about obesity and various diseases related to poor nutrition have also led to greater awareness of the importance of diet on health. Yuka was born from this need for transparency and the desire to take care of oneself and one’s health.

How has having your team and families living under one roof affected your business?

Living together with my associates is a very positive experience. It allows us to fully immerse ourselves in this U.S. adventure and discuss topics on Yuka in the evenings. Living together with our respective families has also created even stronger bonds between us.

In your opinion, what do you think grocery and food companies can do to increase ingredient transparency?

Beyond transparency, manufacturers must improve what is actually in their products. They need to take responsibility and prioritize consumers’ health over their financial interests because we now clearly understand the consequences of an unbalanced diet that is too rich in ultraprocessed foods. In Europe, many brands and manufacturers have reformulated their products in response to the growing success of Yuka and the impact that changes in purchasing habits had on them. We conducted an impact study a month ago with 20,000 American users of the app, and 80% of our users completely agree that, by helping consumers make informed choices, Yuka can be a driving force for brands and manufacturers to offer better products.

Transparency must also be enforced by public authorities, similar to what exists in Europe with the Nutri-Score.

What is the philosophy behind Yuka’s status as an independent project?

Being independent is essential to fulfill our mission of informing consumers while remaining completely neutral and objective.

For this, we have three commitments behind the notion of independence: One, no external

influence: Scores and recommendations are obtained independently, with absolutely no influence from outside brands or manufacturers. Two, no ads: Yuka does not display any ads. No brand, manufacturer, or celebrity can promote their products on the application. And three, protected data: Yuka does not sell or exploit user data. Personal data remains strictly confidential.

What category do you personally use Yuka for the most?

When I arrived in the United States a few months ago, I started using the app again for all product categories because the offerings here are quite different from those in France.

It was very helpful in establishing new benchmarks for myself and making a list of products I can now buy regularly. Because I cook a lot and buy few processed products, I mainly use it for cosmetics. Over time, for food products, I have learned to decipher labels on my own without using the app, but for cosmetic products, it’s much more complex. The ingredient lists are often written in Latin, and the app is essential for choosing the best products for me and my children.

You were able to get 40 million people to download the app without spending a dime on advertising. How did you get the word out about Yuka?

We currently have 54 million users, including 13 million in the United States. I must say that we owe a lot of our growth to our users who have shared and continue to share the app widely with their friends and family.

Interestingly, we observe peaks in Yuka downloads on Friday and Saturday evenings, which are times when people gather with family or friends and take the opportunity to share their discovery of Yuka. I think this word-of-mouth is encouraged by the fact that the app is very easy to use and can be used by both children and the elderly who may be less tech savvy. Our independence probably also contributes to the desire to recommend Yuka: beyond being a simple scanning tool that helps them make better individual choices, our users see Yuka as a genuine impact project, a new tool at their disposal to help drive collective change. ■

CAL I FORNIA G RO CER | 41

WELLNESS

Wellness Trends

K AT I E B R ES S AC K FOUN DER HOLIS T IC N UTR IT ION IS T

What’s old is new: The grocery store as a destination for personalized wellness.

Integrating wellness experiences to help consumers focus on creating healthy and lasting lifestyle changes is a $480 billion dollar opportunity for grocery stores. Growing at an estimated 5-10% clip annually according to McKinsey, the wellness market has wide-ranging appeal, and the grocery store is the perfect destination to incorporate all aspects of wellness in a one-stop shopping experience.

A few grocery chains have started implementing personalized wellness programs for their customers and it will be fascinating to see the impact this will have on individual health and the overall health of the communities in which these programs exist.

As a wellness expert, this approach makes so much sense to me. People are seeking tailored nutrition and exercise programs and looking to incorporate supplements.

More brands are releasing customized vitamins and supplements delivered to your door each month based on health goals and bloodwork.

When we lead with wellness to help support current customers and attract new people into your store, we establish personal connections that generate loyalty. Here are a few additional ideas on how grocery stores can reach consumers and help create a big impact on their health and wellness based on wellness trends.

I love that people are approaching their health in a more personalized and holistic way.

Many people are realizing the importance of understanding their own individual needs versus replicating the needs of others. My approach with my own clients is to treat everyone uniquely, and survey data from grocery retailers seems to indicate that this is the path they expect to take when marketing their own businesses moving forward.

Education

iStock

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

We also must understand that shoppers are busy these days and it takes a lot more effort to get people into the physical store.

Personally, I love the modern convenience of ordering groceries for pick up or home delivery, so if I can incorporate holistic wellness into my grocery pick-up routine, that would enhance my shopping experience.

•E ducation is key in the modern age of information overload. It can be confusing to understand which products are healthy, and consumers are looking for expert opinions to supplement the marketing they are exposed to. Integrating wellness workshops in stores is one way to provide educational support to your customers.

Teaming up with local nutritionists is a great way to help educate your customers on healthy eating and cooking. Some instore educational workshops I’ve held over the years included topics like how to read labels, easy ways to meal prep and quick meal ideas, and how to curb sugar cravings.

Another opportunity is to have store managers present to incorporate feedback on what customers are seeking from the grocery store outside of what’s currently on shelves.

WELLNESS

iStock

Grocery Store Tours

Fitness

• This is a fun and engaging way to help people become acquainted with their grocery store if they aren’t already loyal to it, or to attract new customers with a personalized tour designed around their nutritional needs and interests. I’ve held grocery store tours with my own clients, and teamed up with grocery stores for a monthly tour to help shoppers learn how to read labels and understand the nutritional impacts of whole foods and supplements based on their lifestyle goals. It’s one thing to talk about eating healthier, but helping people shop in a way that supports their health goals makes it feel more accessible.

• Bring fitness to the store! You can team up with local gyms where they host workouts on the weekend in the parking lot. You can also cross promote by having local gyms give away a free weekly pass that you add to grocery bags, while the gym can give customers gift cards or healthy snacks from your store. I’ve planned and attended a few of these events and even had retailers like Athleta and Lululemon sponsor the event to help get the word out in the community.

Connecting these dots for shoppers helps them visualize the complete journey to a healthy and fulfilling lifestyle.

Personalized Support

• I can’t say this enough, but people don’t have the time or don’t know how or what to cook anymore! Making dinner after a long day at work can be a daunting task.

You can help people make healthier meals in a few ways. Offering a fun cooking class and curating a shopping bag full of ingredients for the recipe is both educational and helpful. I also see the potential for grocery stores to implement more meal delivery services with fresh food from the store. You can team up with a

• Most of us desire to feel healthy, but don’t know where to start. I love the idea of meeting people where they are in their health and wellness journey with a personalized nutrition and wellness program. I also see the benefit of group programs where you have a small group of individuals working towards better health. This environment offers even more support and accountability both in and out of the store.

Meals To Go

local nutritionist who creates a weekly meal guide and then collect all the ingredients and either put them into meal kits or prep meals for customers to take home and reheat. This could also be a compliment to either the individual or group programs the store provides.

Supplements • With the supplement industry worth $57 billion dollars in 2023, it’s only expected to grow just like with food choices, consumers are looking for higher quality vitamins and supplements without all the added fillers. It will be key to have healthy brands in a specific section with a wellness advisor helping customers find vitamins, herbs, and other supplements that support their health needs. ■

CAL I FORNIA G RO CER | 43

Quality Product.

Exceptional Service.

Leverage C&S Scale to maximize your produce quality and value. High quality product with both national and regional lines across dry & fresh produce & floral. Experience best in class service and price to maximize your produce & floral offerings.

Contact C&S today to learn how we can help grow your business!

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

CONGRATULATES DENNY BELCASTRO & KARL SCHROEDER ON THEIR INDUCTION INTO THE CGA EDUCATIONAL FOUNDATION HALL OF ACHIEVEMENT WE CELEBRATE YOUR ACHIEVEMENT & DEDICATION TO OUR INDUSTRY

DENNY BELCASTRO Kimberly-Clark Corporation

KARL SCHROEDER Safeway Sunkist is a registered trademark of Sunkist Growers Inc., U.S.A. ©2024. Produce of U.S.A.

Celebrate the Holiday Season with delicious Fine British Chocolates For more details: Please call (424) 382-6857 Jennifer.Moxham@charbonnel.co.uk or visit www.houseofdorchester.com

Proposition 12 Compliant Pork Products Available

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

SPECIAL ONE DAY SEMINAR FOR

Store Leaders Who Should Attend?

• Store Directors • Assistant Store Directors • Department Managers

Southern California Tuesday, July 23, 2024 8:00 am – 4:00 pm Hilton Costa Mesa

Steve Black

ed Featur er: Speak

Presented by the California Grocers Association and the CGA Educational Foundation, these single-day regional seminars are customized for store-level supervisors interested in growing their management skills and developing their careers. The agenda offers a blend of inspiring keynote presentations and hands-on, retailspecific trainings that will provide the inspiration, practical tips and relevant examples to develop your leadership acumen and techniques to succeed with today’s employees.

EQUIP STORE LEADERS WITH RELEVANT SKILLS AND PRACTICAL KNOWLEDGE The 5 Rules

Northern California Thursday, July 25, 2024 8:00 am – 4:00 pm Hilton Concord Cost: CGA Members: $125/person Non-Members: $250/person Registration includes lunch & full-day program.

Leaders want results, but only 5% have plans in place to develop their teams. It doesn’t take a complex plan to create transformation – it just needs The 5 Rules.

Keynote Speaker Steve Black The Game-Winning 3 – Making It Count … In Business and In Life Success can be defined in its simplest form as making life better for someone else. Whether it comes in creating a better product, helping to relieve someone’s stress or pain, bringing someone laughter or joy or helping someone get more out of their life, success is always about serving.

Dave Davlin, Guiness World Record Holder

Sponsored by

REGISTER TODAY! Sign up at cagrocers.com/events or call CGA at (916) 448-3545

Congratulations!

ON YOUR INDUCTION INTO THE CGA EDUCATIONAL FOUNDATION’S

HALL OF ACHIEVEMENT

Karl Schroeder,

Denny Belcastro,

Safeway

Kimberly-Clark Corporation

From your friends at Constellation Brands |

CAL I FORNIA G RO CER | 49

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

BY G RACE BECK ER

Clay Cups California-based craft coffee roaster Verve partnered with technology company GaeaStar to create a new line of zero-waste clay to-go cups, available at select cafe locations. Inspired by “Kuhlars,” an ancient Indian ceramic style dating back 5,000 years, the to-go cups are as thin as eggshell, made of natural ingredients, and eventually disintegrate into dust. The cups are designed to accommodate both reuse and single use for customers’ convenience. The 12-ounce clay to-go cups cost $2 and customers receive a discount on future drinks when they bring the cup back for reuse.

Photo: GaeaStar

Those Dumb Phones!

The dark side of smart phones—including negative mental health effects—have left some users eager to dumb it down. Enter: the dumbphone. These 90s-2000s inspired cellphones are meant to relieve smart phone dependency by getting back to the basics: texting and calling. DumbWireless, founded in 2022, offers a selection of dumbphones from companies including Nokia, Light, and Punkd. According to Axios, this March, DumbWireless sold about $68,000 worth of phones, up from $5,000 in March 2023.

Beer brand Heineken also released “the boring phone” in collaboration with apparel brand Bodega to inspire in-person socializing.

Beauty from Within www.prettytasty.com

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

You are what you eat...right? Pretty Tasty Tea tackles beauty and skincare from the inside. Its canned teas are infused with 10 grams of collagen to elevate your beauty routine and support skin, hair, nail, and joint health. The beverage comes in four flavors (peach, raspberry, lemon, and original) has zero sugar, no artificial colors, and is allergen and gluten free. Pretty Tasty Tea also comes in powder packets.

OUTSIDE THE BOX

Stay in the Loop Belgian-based company Loop Earplugs is filling a gap in the market.

According to the World Health Organization, a billion people under the age of 36 are at risk of hearing loss due to live music events and other activities. Co-founded by an avid concert and festival goer, Loop filters sound without muffling it completely, unlike traditional foam earplugs. Plus, its bold and sleek “loop” design remains visible in the ear during use like a piece of jewelry. The company offers a variety of Loop plugs for sleep, social events, concerts, and festivals, and a “switch” model that captures three modes in one.

According to Fast Company, Loop broke $100 million in sales in 2023. https://us.loopearplugs.com

Pet Food Gets Personal

Emerging global trends in the pet food market have revealed that pet diets are starting to mirror human wellness trends in terms of personalization, natural ingredients, and sustainability. Like with their own diets, pet owners are looking to optimize health for their pets through DNA-tailored diets and the use of straightforward, natural ingredients. In the U.S., 23% of pet owners look for products with limited ingredient lists.

Sustainability claims are also growing in the pet food world as it relates to sustainable packaging, iStock ingredients, upcycled ingredients, and water use.

Fresh star power and a burst of energy around the Women’s National Basketball Association (WNBA) has made way for strategic new brand partnerships. Under the spotlight, WBNA stars are amassing social media followings and reaching influencer status, which has attracted attention from beauty and fashion brands both on and off the court. In 2023, the WNBA launched a Player Marketing Agreement program to help players score brand deals. Among them are Kim Kardashian’s SKIMS, the official underwear partner of the WNBA, that also partners with individual players to represent the brand. Millennial-favorite beauty brand Glossier became the first official beauty sponsor for the league in 2020 with much success and has since expanded the partnership to incorporate courtside signage, content with players and teams, seeding and gifting, a zine starring players for a new product launch, a sponsored podcast episode, and more. To help debut a new product, rookie Caitlin Clark wore a full face of Glossier at this year’s WBNA Draft.

Anti-Wrinkle Straws As anti-aging becomes synonymous with wellness, there’s no shortage of products aimed at preserving youthfulness. On TikTok, a unique straw design has taken young users by storm for its possible effects on anti-aging and skincare. Anti-wrinkle straws are designed to keep you from pursing your lips, therefore Lipzi via preventing wrinkles. Instead of the straw opening The New York Times being vertically situated at the top of the straw, the tip of the straw is horizontal with the opening at the top—like a flute—to keep the mouth in a neutral position when sipping. While it’s true that traditional straws may contribute to wrinkling around the mouth, it’s unclear if anti-wrinkle straws are as effective as they claim to be.

Glossier

CAL I FORNIA G RO CER | 51

CGA NEWS

CGA EDUCATIONAL FOUNDATION HONORS SAFEWAY AND KIMBERLY-CLARK EXECUTIVES The California Grocers Association Educational Foundation (CGAEF) inducted Karl Schroeder, president of Safeway Northern California Division, and Denny Belcastro, vice president of industry affairs and customer development for Kimberly-Clark Corporation, into the prestigious Hall of Achievement on Thursday, March 14, 2024 in Alameda, California.

This year’s awards gala took place aboard the USS Hornet, a historic decommissioned aircraft carrier and museum docked in the San Francisco Bay. In addition to honoring Karl and Denny, attendees raised more than $375,000 during the awards gala which will help fund the Foundation’s signature college scholarship and tuition reimbursement programs to support future grocery industry leaders in their pursuit of higher education.

Karl and Denny, both respected leaders within the grocery industry, are outspoken proponents of industry education, mentorship, and professional development. Having gone back to school to complete the University of Southern California Food Industry Management Program and ultimately earn his bachelor’s degree from the University of San Francisco years later, Karl has mentored hundreds of his own staff and encouraged their continued education. Denny has long supported grocery industry organizations, including

INDEPENDENT GROCERS CONNECT ON THE GOLF COURSE The independent grocery community soaked up the sun and connected on the golf course at the 2024 Independent Grocers Golf Tournament on June 5 in Rohnert Park, CA. This annual tournament allows independent grocers, wholesalers, and suppliers to network while practicing their swing for a productive day of golf, sampling product from sponsors, and strengthening business relationships. After a day of play, attendees gathered back at the clubhouse for a raffle and silent auction. Grand Prize winner Darin Austin took home a week’s stay in Mexico. ■

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

California Grocers Association, offering his expertise, career development guidance, and industry funding for scholarships and continuing education opportunities.

“Karl and Denny are the embodiment of influencers in the grocery space. Both have dedicated their careers to developing their teams through mentorship and the encouragement of education, thus lifting all ships in the industry,” CGAEF President Ron Fong said. “This honor is a testament to their tremendous impact on the industry and influence on creating the next wave of industry leaders.”

Recipient of CGAEF’s fifth annual $10,000 Legends of the Industry Scholarship, Rosita Szatkowska, addressed the crowd during the event to share how the industry’s support will help her fulfill her education and career ambitions. Szatkowska, who previously struggled with homelessness and addiction, now oversees thousands of employees as a district manager for Albertsons. Simultaneously, Rosita is pursuing a degree in business administration from Brandman University.

The Hall of Achievement recognizes grocery leaders for their tremendous contributions to the grocery industry and within their local communities. ■

CGA NEWS

GROCERS ADVOCATE AT STATE CAPITOL Grocery retailers and suppliers traveled to Sacramento in early April for CGA’s Grocers Day at the Capitol event to advocate on behalf of California’s grocery industry.

Grocers met with lawmakers and staff to educate them on the grocery industry’s most pressing issues and speak to their firsthand experience running a business in California. While the day’s top priority was sharing the impacts of retail theft on stores and communities, grocers also asked for legislators’ support on two food access bills, and asked for opposition on harmful self-checkout and store closure bills that would negatively impact stores and customers.

In addition to legislative meetings, attendees were joined by guest speakers from the Capitol community. Journalist Laurel Rosenthal,

Sacramento bureau chief for the Los Angeles Times, joined us to share her insights on the legislative landscape and takeaways from the March primary election. Members of the Assembly Public Safety Committee Asm. Rick Chavez Zbur and Asm. Juan Alanis joined us for a candid fireside chat around retail theft.

This year’s event also featured the inaugural Legislative Bagging Competition with Senate Candidate Christopher Cabaldon, Asm. Greg Wallis, and Asm. Tom Lackey, judged by our friends at Nugget Markets. Our day of advocacy wrapped up with a President’s Reception back at CGA headquarters to mix and mingle with lawmakers and members of the Capitol community. ■

GROCERS DAY 2024 SPONSORS

the only

green onion supplieR you’ll ever need bajasongrowers.com

Connect with us:

One Year Anniversary under New Ownership, returning to the core!

Valley Inventory Services - 50 years in business 1180 Horizon Drive Suite B Fairfield, CA 94533 1 (800) 332-6868 www.valleycount.com

GM - Jack Link, Jack@valleycount.com Operations - Alice Ballardo, Aliceb@valleycount.com Sales - sales@valleycount.com President - Amby Nair, amby@valleycount.com

Serving the community since 1970, premier inventory services in CA, NV, OR, AZ

Foods • GM/HBC • Ethnic C: (310) 420-0530 E-Mail: freddiesale@msn.com Serving the West • Midwest

Committed to Sales & Merchandising Since 1974 Fredrick White Vice President

2405 Garden Street Titusville, FL 32796 MIke@JGLC.com 321.432.6323

321.269.9169 Extension 105

www.JGLC.com

CAL I FORNIA G RO CER | 53

-

-

-

-

CGA NEW MEMBERS

NEW MEMBERS CGA welcomes the following members:

Clynk 100 Waterman Dr South Portland, ME 04106-2890 Contact: Lauren Standal, Dir., Business Development & Innovation E-mail: lstandal@clynk.com Website: clynk.com

Conn Maciel Carey One Sansome St Ste 3500 San Francisco, CA 94104-4436 Contact: Rachel Conn, Chair, California Practice E-mail: rconn@connmaciel.com Phone: (415) 233-4551 Website: connmaciel.com

CVW T Lines 216 N 18th Ave Ste 100 Phoenix, AZ 85007-3252 Contact: Joseph Farhat, Managing Director E-mail: info@cvwtlines.us Phone: (650) 283-6115 Website: cvwtlines.us

Darlington Marketing 885 Channel Island Dr Encinitas, CA 92024-2485 Contact: Cynthia Darlington, President

Howe Corporation 1650 N Elston Ave Chicago, IL 60642-1585 Contact: Alexandra Pawlikowski, National Sales Director E-mail: alex@howecorp.com Phone: (773) 687-4927 Website: howecorp.com

IFCO Systems, Inc. 3030 N Rocky Point Dr West Tampa, FL 33607 Contact: Dana Slagle, New Business Development Manager E-mail: dana.slagle@ifco.com Phone: (720) 492-5885 Website: ifco.com

Lockton Insurance Brokers, LLC Niagara Bottling 777 S Figueroa St Ste 5200 1440 Bridgegate Dr Los Angeles, CA 90017-5850 Diamond Bar, CA 91765-3932 Contact: Mark Pastorius, Exec. VP, Contact: Laurie Thompson, Director of Client Services VP, Sales E-mail: mpastorius@lockton.com E-mail: lathompson@ Phone: (213) 712-0061 niagarawater.com Website: lockton.com Phone: (909) 240-8529 Website: niagarawater.com

Northwest Supermarkets Incorporated 2386 NW Hoyt St Portland, OR 97210-3219 Contact: Matt Marcott, Chief Executive Officer Phone: (503) 941-9374 Website: nwsuper.com

Pacaso Inc. 18 E 4th St Ste 902 Cincinnati, OH 45202 Contact: John Choi, Sr. Dir., Public Affairs & Communications E-mail: jchoi@pacaso.com Phone: (213) 446-3732 Website: pacaso.com

Profounda Health & Beauty, Inc. 10501 S Orange Ave Ste 124 Orlando, FL 32824 Contact: Todd MacLaughlan, Chief Executive Officer E-mail: todd@profounda.com Phone: (908) 635-2326 Website: profounda.com

E-mail: cynthia@darlingtonco.com

Phone: (760) 473-6241 Website: darlingtonco.com

RSA America 1604 W Colonial Pkwy Inverness, IL 60067 Contact: Lisa Bahmann-Rocher, VP, Marketing E-mail: lisa@rsaamerica.com Phone: (312) 471-6700 Website: rsaamerica.com

Vici Robotics Company 1604 Remuda Ln San Jose, CA 95112 Contact: Kyle Smith, Chief Executive Officer E-mail: kyle@vicirobotics.com Phone: (925) 548-8177 Website: vicirobotics.com

CAL I FORNIA G RO CER | 55

CA LAW

The sale of tobacco products including e-cigs is prohibited to persons under 21.

Don’t get fined.

Scan to learn more.

PREVENT A LIFET IME OF ADDICT ION © 2024 California Department of Public Health

T:11"

B:11.25"

S:10"

Irresistible!

Bold & Unique Flavors TM

Jake, a fourth generation member of the Jasper Family, is proud to continue the farming traditions passed down for over 75 years. Each of Jake's bold flavors are made from premium California almonds and dry roasted and seasoned in small batches to FLAVORS: Barbecue | Bloody Mary | Mesquite Smoked deliver exceptional quality.

Hatch Chile | Bleu Cheese & Cracked Pepper | Maple | Buffalo | Brine & Dill

TM

PROUDLY A DIVISION ODS OF JASPER SPECIALTY FOODS Specializing in the production of unique almond related food snacks, confections, and other treats for the gourmet food market.

CONTACT US: PO Box 311 Newman CA 95360 Tel: 209.862.3033 Toll Free: 800.255.1641 info@jasperspecialtyfoods.com www.jakesnutroasters.com

CAL I FORNIA G RO CER | 57

T VA L L E Y

F MS

PLE

AN

AR

PORTABLE GAMING SYSTEM

AS

Available at UNFI, KeHE, and Amerisoucebergen marketplace or direct from Profounda H&B

™

™

For more information, go to our website: MyArcade.com or contact: Steve Zitter at stevez@dreamgear.com or 310-222-5522 ext. 166

209-886-1000 PLEASANTVALLEY EGGS.COM

O

N

AN

H

Y

707-795-3388 www.sonomasaladco.com

NO

R FOODS CO

M

PA

Phone: (323) 980-4950 | Fax: (323) 266-1406 Email: srodarte@rwzant.com | Website: www.rwzant.com

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

INDUSTRIAL

CURTAINS

PRINT POWER

INSERTS, DIRECT MAIL & ADVERTISING

(833) 572-1578

SCAN FOR WEBSITE

WE WANT TO MANUFACTURE YOUR STORE BRAND VITAMINS, SUPPLEMENTS, ENERGY DRINKS & MORE! info@makersnutrition.com

• Custom & Private Label Manufacturing • Packaging, Design & Fulfillment

• FDA, GMP Registered • 24/7 Customer Service

Ph: 844.215.5780

Request a quote today!

Renowned Inc. 5000 Fastest-Growing Manufacturer in America

www.makersnutrition.com

TRAX Industrial Curtains • P.O. Box 2089, Loomis, CA 95650 www.TRAXindprod.com • (800) 248-8729 / (916) 652-1080

CAL I FORNIA G RO CER | 59

PITCO FOODS Proudly Serving since 1982

Serving 25,000 Retail Stores • 4 warehouse locations

• 550,000 sq. ft. of warehouse • 500 associates

WHOLESALE DISTRIBUTION COMPANY PITCO FOODS is the leading wholesale Distributor in California servicing grocery stores, gas stations, liquor stores and convenience stores. Pitco Foods has both Delivery and Cash & Carry Operations at each warehouse, providing a high-quality selection of product at the lowest possible price.

Offering numerous Hispanic and Asian product lines as well as our own Private Label brand. We stock over 10,000 various Groceries, Candy, Snacks, Beverages, Refrigerated, Frozen, Health & Beauty Aids, General Merchandise, OTC, Cigarettes, Tobacco, Tobacco Accessories and a turn key Food Service Program

For more information visit: www.pitcofoods.com

Find us on:

1-800-464-4441

1-408-282-2200

SAVOR OUR FLAVORS With over 150 years of coffee roasting expertise, Don Francisco’s® Coffee stands as a pioneer and a leading brand in the flavored coffee segment.

Partner with us and bring a world of flavor to your customers’ daily coffee experience.

For more information about our brands, please contact us at hello@donfranciscos.com or call (925) 525-6911.

Customized Grocery Workplace Harassment Prevention Training All employees must be certified every two years The California Grocers Association Educational Foundation provides online supervisor and employee training programs for workplace harassment prevention. These easy-to-use training modules are customized for the grocery industry and are fully compliant with California law.

CUSTOMIZED TR AINING FOR GROCERY INDUSTRY

• Real life in-store, office and warehouse scenarios • Convenient one-hour employee course • In-depth two-hour supervisor course A F F O R DA B L E

• Substantial CGA member discounts • Quantity pricing • Flexible LMS hosting opportunities E ASY TO IMPLEMENT

• Tablet/desktop ready • On-demand training for your employees • Convenient reporting for compliance tracking & verification

English & Spanish Trainings Available

Purchase Today!

To learn more about these training modules including special CGA-member pricing, contact the CGA Educational Foundation at (916) 448-3545 or foundation@cagrocers.com.

CGA Educational Foundation | www.cgaef.org/training | (916) 448-3545

MOMMY BLOGGER

All the Things for All the People K I M B ER LY R A E M I L L ER WR IT E R

One Mom’s Guide to Feeding the Hungry, Picky, Bodybuilding Masses A few days back, my nearly 8-year-old managed to tear himself away from his Roblox adventures just long enough to hit me with a classic query: “Hey, can you chill with the healthy snacks at school, bruh?

I want the normal stuff.” I swiftly retorted, “Bruh, I give you normal snacks. Junk food is not normal.”

Navigating my family’s culinary preferences and dietary needs is a task that requires careful consideration. Each member comes with their own set of requirements and tastes, and I’m mindful of not only what goes into their body, but also the memories it may create. Growing up, I recall the occasional longing for my friends’ trendy snacks while my mom stuck to her guns, reserving junk food for special occasions. Now, as I raise my own family, I appreciate the wisdom in her approach and strive to emulate it.

However, our dietary journey isn’t solely about snack choices. My husband, a vegetarian and bodybuilder, presents a unique challenge with his high protein needs, demanding culinary creativity. Meanwhile, my son’s medication affects his appetite, prompting us to focus on calorie-dense meals when hunger strikes. And then there’s my imaginative 5-year-old daughter, who’d happily wander the forest, munching on

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

grass and poisonous mushrooms while clad in fairy attire if given the chance. As for me, I often find myself consuming whatever’s left.

I am, in essence, the linchpin of our family’s nutritional harmony. Each trip to the grocery store becomes a delicate dance, not just about filling the cart but selecting items tailored to each family member’s dietary quirks. It’s a balancing act that blends strategy with ingenuity, ensuring everyone’s needs are met within the confines of our $200 weekly food budget.

The reality is healthier choices come at a price. While I wish it weren’t the case, our budget necessitates meticulous planning to accommodate everyone’s needs. A weekly meal plan, prominently displayed on the fridge, serves as our roadmap. Special requests must be made before the shopping trip, ensuring I stick to the list to avoid

overspending on impulse buys. Opting for online orders with curbside pickup has proven to be an effective strategy in curbing such temptations.

Healthy snacks that I can send to school and activities with the kids are bought in bulk through wholesale stores. As are meats, which are only purchased a few times a year when they’re on sale and then stored in a deep freezer. Fresh foods like fruits, veggies, eggs, and dairy make up the bulk of my weekly grocery budget.

Of course, what works today won’t work tomorrow. I’ve reached the stage of parenting when what I buy for my kids requires social approval from their peers.

I know this will only worsen as they get older, but I will hold the reins as long as possible and continue to slip carrot sticks into their lunchboxes, just in case. ■

iStock

S USPUPPL PI EL RI E PR EPRESRPSEPCETCI VT EI VS E S

P EP TE TS PS EP CE ICAI LA TL YT Y

To Tosee seethe thepower powerofofpeople peopleand anddogs dogstogether, together, ServiceDog DogSalute Salute just justlook looktotoDog DogChow Chow® ®Service

The Thecausal causalinitiative initiativeconnects connectstotoPurina’s Purina’spast, past,asaswell wellasasitsitsmission missiontoday. today.

ByByJoe JoeToscano, Toscano,Vice VicePresident, President,Trade Trade&&Industry IndustryDevelopment DevelopmentatatPurina Purina Pets Pets and and people people areare better better together. together.

That That truth truth is our is our north north star star here here at at Purina.

Purina.

And And that that star star has has provided provided a simple a simple but but bright bright and and clear clear guide guide asas we’ve we’ve embraced embraced and and championed championed causes causes that that areare true true toto our our mission. mission.

That That includes includes thethe Dog Dog Chow Chow Service Service Dog Dog Salute Salute Program Program – where – where these these remarkable remarkable dogs dogs areare more more than than pets, pets, but but heroes heroes themselves. themselves.

Supporting Supporting U.S. U.S. troops troops isn’t isn’t new new toto Dog Dog Chow.

Chow.

In In fact, fact, it goes it goes back back toto Dog Dog Chow’s Chow’s creation, creation, as as a nod a nod to to thethe “chow “chow lines” lines” that that sustained sustained American American service service members members during during World World War War I. But I. But what what was was once once a part a part of of our our heritage heritage became became part part of of our our mission mission in in 2018.

2018.

The The power power of of animals animals is rarely is rarely more more apparent apparent than than when when you you see see thethe profound profound impact impact of of a service a service dog dog onon a person a person in in need. need.

And And there there areare approximately approximately 3.63.6 million million And And at at Purina, Purina, wewe want want toto extend extend From recognizing recognizing and and performing performing upup military military veterans veterans in in need need suffering suffering from from From awareness awareness beyond beyond thethe shelves. shelves.

Even Even 2020 tasks tasks that that range range from from reducing reducing post-traumatic post-traumatic stress stress disorder disorder (PTSD) (PTSD) toto into into thethe theater! theater!

This This year, year, Dog Dog Chow Chow panic panic attacks attacks toto alerting alerting veterans veterans of of that that may may benefit benefit from from thethe lifesaving lifesaving is introducing anan all-new all-new Service Service Dog Dog potential triggers, triggers, and and soso much much more, more, is introducing impacts impacts of of a service a service dog. dog.

Yes, Yes, lifesaving. lifesaving. potential Salute category category in in thethe New New York York Dog Dog these service service dogs dogs have have very very important important Salute PTSD PTSD service service dogs dogs have have demonstrated demonstrated these Film Film Festival Festival which which invites invites filmmakers filmmakers differences differences from from emotional emotional support, support, thethe ability ability toto reduce reduce thethe severity severity of of toto explore explore thethe unique unique ways ways PTSD PTSD therapy oror companion companion animals. animals.

PTSD PTSD symptoms symptoms and and suicidal suicidal behaviors. behaviors. therapy service service dogs dogs transform transform the the lives lives of of PTSD PTSD service service dogs dogs areare remarkable remarkable That That is why is why it is it particularly is particularly thethe military military veterans veterans they they serve. serve.

If If and rare. rare.

And And our our sincere sincere hope hope is to is to heartbreaking heartbreaking toto learn learn that that just just 1%1% of of and you you or or someone someone you you know know is a is visual a visual increase awareness awareness of of thethe need need while while those those in in need need who who seek seek a service a service dog dog increase storyteller, visit visit www.DogChow.com/ www.DogChow.com/ also also celebrating celebrating thethe tremendous tremendous impact impact storyteller, receive receive one one each each year. year.

The The cost cost and and filmfestival filmfestival to to learn learn more. more.

And And if you if you these service service dogs dogs and and their their veterans veterans time time it takes it takes toto train train each each service service dog dog – – these are are simply simply just just a fan, a fan, stay stay tuned tuned to to that that make.

AsAs a retailer, a retailer, you you can can help help usus dodo approximately approximately two two years years and and $20,000$20,000- make. same same website website this this fall fall to to find find out out how how that.

Service Service Dog Dog Salute Salute is highlighted is highlighted $50,000 $50,000 – has – has put put many many of of them them out out of of that. you you can can see see and and share share thethe winning winning film. film. onon every every bag bag of of Dog Dog Chow Chow Complete Complete reach reach toto veterans veterans in in need. need. that that arrives arrives toto retail retail stores, stores, but but you you WeWe want want toto change change that. that.

Dog Dog Chow Chow can can also also contact contact your your Purina Purina sales sales reprep has has donated donated more more than than $1.2 $1.2 million million to to learn learn more more about about special special Service Service toto service service dog dog organizations organizations since since thethe Dog Salute Salute in-store in-store signage, signage, social social and and inception inception of of Service Service Dog Dog Salute.

Salute.

These These Dog digital digital assets, assets, additional additional merchandise merchandise dollars dollars support support thethe very very specialized specialized and more more toto drive drive attention attention forfor thethe training training required required forfor PTSD PTSD service service dogs. dogs. and program. program.

There There areare multiple multiple ways ways toto getget involved. involved.

Our Our hope hope is that is that you you find find at at least least one. one.

Because Because it is it with is with your your support support that that wewe can can advance advance our our mission mission and and bring bring more more veterans veterans and and PTSD PTSD service service dogs dogs together. together.

Purina Purina trademarks trademarks areare owned owned by by Société Société desdes Produits Produits Nestlé Nestlé S.A.S.A.

California Grocer Online

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

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

cagrocers.com

Certified Federal C R E D I T U N I O N

Proudly Serving

Welcome!

Serving Grocers Since 1949