California Grocer, Issue 3, 2024

Cookies, Robots, and the SelfCheckout Line PAGE 18

Chaos and Compromise PAGE 22 2024, ISSUE 3

CALIFORNIA GROCERS ASSOCIATION

The New California Consumer PAGE 28

ACCELERATING

IMPACT

Navigating the future of food in California

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.

Learn more!

Better Solutions for a Better World This fall we are taking our sustainable refrigeration education and training on the road! During stops across North America, retailers will learn about the future of low-GWP refrigerants and experience the technology that enables them.

For more information on The Evolve Experience and how to get involved in a future stop, visit us below: Hussmann.com/Hussmann-Roadshow

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

Brenda Palomino Amazon

Diane Snyder Whole Foods Market

Suzanne Baker Unilever

Tyler Kidd Mar-Val Food Stores, Inc.

Bethany Pautsch Tyson Foods, Inc.

Chang So Hollister Super, Inc.

Gary Bickmore FMS Solutions, Inc.

Brandon Lombardi Sprouts Farmers Market

Eric Pearlman C&S Wholesale Grocers

Marc Swisher Mondelēz International Inc.

Elaina Budge Costco Wholesale

Bertha Luna Stater Bros. Markets

Brian Pohl Classic Wines of California

Brad Thomas Kimberly-Clark Corporation

Pamela Burke Grocery Outlet, Inc.

Brendan McAbee Bimbo Bakeries USA

JB Ryan Molson Coors Beverage Co.

Joe Toscano Nestle Purina PetCare

Rocky Campbell C & K Market, Inc.

Kelli McGannon King Soopers

Adam Salgado Heritage Grocers Group

Stephanie Wu The Save Mart Companies

Chris Dehoff Dehoff’s Key Market

JR Medina Super A Foods, Inc.

Nick Sass The Hershey Company

Kevin Young Young’s Payless Market IGA

Jon Giannini Nutricion Fundamental, Inc.

Michael Molinar PAQ Inc.

Casey Scharetg E. & J. Gallo Winery

Sergio Gonzalez Northgate Gonzalez Markets

Andrew Nodes Instacart

Jeff Severns PepsiCo Beverages N. Am.

Amber Hammond KeHE Distributors, LLC

Tim Nowell Procter & Gamble

Greg Sheldon Anheuser-Busch InBev

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 Administration & Programs Coordinator De’Brae Gaines 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

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 Managing Editor Grace Becker gbecker@cagrocers.com For advertising information contact: Bailey Dayen bdayen@cagrocers.com

CONTENTS | ISSUE 3

FEATURES COLUMNS

18 Cookies, Robots, and the Self-Checkout Line For grocers, integrating AI into checkout lines is risky, but a human touch may be the solution.

President’s Message A Banner Year for Grocers. . . . . . . . . . . . . .

5

Chair’s Message Retail Theft in Retrospect. . . . . . . . . . . . . .

6

CGA Educational Foundation Chair’s Message Celebrating $10 Million in Scholarships. . . . . . . . . . . . . . . . . . . . . . . .

8

California Consumers...

Viewpoint It’s The Economy. Really.. . . . . . . . . . . . . . . 10

22

Inside the Beltway Shoppers Feel in Control of Their Grocery Spending. . . . . . . . . . . . . . . . 12

7

Chaos and Compromise

Washington Report High-level Gathering a Must for Independent Executives. . . . . . . . . . . . . 14

%

Capitol Insider A Safer California.. . . . . . . . . . . . . . . . . . . . . 17

Behind the Scenes of California’s 2024 Ballot Battles.

health is wealth

28

Mommy Blogger The Politics of Family Life. . . . . . . . . . . . . . 48

78 %

%

77

DEPARTMENTS 15 Minutes With Vir Satyan . . . . . . . . . . . . . . . . . . . . . . . . . . 32

The New California Consumer

Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . 40

at how California

Dan Frommer, The New Consumer, offers a data-driven look

consumers spend their time and money.

healthspan

5%

2024–25 Scholarship recipient

Food and Diet Trend

36

CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 42

24

%

2024-25 CGAEF Legends of the Industry Scholarship Recipient A love of learning fuels Jessica Jimenez’s growth in grocery industry.

CGA New Members. . . . . . . . . . . . . . . . . . . 43

Food Inspiration

60%

CAL I FORNIA G RO CER | 3

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PRESIDENT ’S MESSAGE

A Banner Year for Grocers

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

From retail theft to fending off limits to self-checkout, CGA delivered one of its best legislative years on record As the sun set on 2023, and I began to take stock of what I hoped CGA would achieve in 2024, reform of retail theft and the Private Attorneys General Act (PAGA) were top of the list.

Here were two issues severely impacting grocery store operations and bottom lines— not to mention the shopper experience. To that end, any impact the Association could make would be worthwhile. Yet there was also the stark reality that the California State Legislature’s public safety committees had refused to hold hearings for retail theft in 2023 while the business community’s ballot initiative to reform PAGA had been saddled with a very unkind title and summary by the state’s attorney general.

The conversation about retail theft took a positive turn at the start of the year when new Assembly Speaker Robert Rivas (D-Salinas) announced a retail theft taskforce to study the issue. Prior to his becoming the Assembly leader, CGA had been working to form a relationship with Asm. Rivas. You’ll probably remember that Speaker Rivas toured Hollister Super in his hometown of Salinas, and in him, the Association found a partner who was willing to tackle retail theft.

There were many twists and turns throughout the legislative session—a story for another day. The important thing is the Legislature passed a retail theft reform package that will substantively deter retail theft, which was signed into law by Gov. Gavin Newsom in late August to much fanfare. And as the Governor told me privately, a reform package simply couldn’t have happened without grocers telling their story.

In addition to retail theft, the grocery community tallied another win as the business community, labor advocates, and the Governor’s office negotiated a compromise to reform PAGA. As a board member for the PAGA reform coalition, I had a frontrow seat at the negotiations and was able to represent the grocers’ perspective. Our industry was one of those most impacted by frivolous PAGA lawsuits. Ultimately, we achieved a deal, which will save the grocery industry money and time, mostly by offering what’s known as a “right-to-cure” provision.

We were two-for-two on my 2024 wish list; however, our work wasn’t done. There was still a terrible, labor-sponsored bill that sought to break self-checkout as we know it and a bill attempting to increase cash redemption allotments for gift cards. Plus, CGA had sponsored its own bill—as part

of our strategic vision—aiming to create new incentives for grocery stores to open locations in food deserts. What a year!

Well, I’m happy to share SB 1446, the self-checkout bill, was killed by CGA as the legislative session concluded. I can’t remember the last time I was so happy to see midnight arrive. Defeating SB 1446 required an all-out offensive by the Association, unfolding at the Capitol, in the press, and online. Thanks to vigorous support from key members, CGA raised funds to push our efforts into hyperdrive.

I’m truly grateful for all our stakeholders who helped us stop SB 1446 in its tracks.

As for the gift card bill SB 1272, it was gutted and amended at the end of the session after CGA made sure legislators and the Governor understood how increasing redemption allotments would impact the industry’s ability to gift charitably.

These are just a handful of the issues CGA worked this year. For any association, just solving retail theft or PAGA would have made for a banner year, which makes 2024 one for the record books. It’s safe to say CGA made serious noise at the Capitol this year, and none of that would have been possible without you. Thank you all for your fantastic support in 2024. ■ CAL I FORNIA G RO CER | 5

CHAIR’S MESSAGE

Retail Theft in Retrospect

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

How a gradual shift in political headwinds led to sudden change People say that change happens gradually, and then things happen suddenly. In the case of retail theft reform, much of the same could be said. First, there was little to no activity, and then all of a sudden everything changed.

Only four years ago, CGA and law enforcement groups banded together to place a Prop-47 reform initiative before California voters. Known as Prop 20, this reform effort was soundly defeated, much to our disappointment for much-needed relief. Prop 20 was unable to overcome a case of the right idea, it was just the wrong time.

Emerging from the pandemic, a similar trend was occurring in our stores. Retail theft was a significant, yet gradual challenge that began to suddenly surge. Still, the public and elected officials had not yet caught on, and in 2023 elected officials stubbornly felt sure enough about their point of view on Prop 47 that public safety committee leaders refused to hold hearings for retail theft reform legislation.

With these experiences in mind, I began my year as CGA Board Chair feeling like we still had an uphill battle ahead of us.

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

When I testified at the state’s Little Hoover Commission hearing on retail theft in December 2023, my firsthand, asset management and enterprise risk protection experiences were met with skepticism.

I planned to speak for a handful of minutes, but that turned into a 45-minute cross examination. At that time the conversation was focused on retail theft and the lack of crime data, which presented a murky picture for several complex reasons.

So how did the retail theft narrative shift from one of disbelief to a retail theft reform package being signed into law by the Governor? Gradually, and then all at once.

The Little Hoover Commission hearing was followed by new Assembly Speaker Robert Rivas creating a Retail Theft Task Force. Meanwhile, our customers and employees were increasingly seeing brazen theft with their very own eyes, and viral videos put a fine point on just how bad the problem had become.

With voters pushing their elected officials to act, law enforcement and business groups created a coalition to again put Prop 47 reform on the ballot. Prop 36 will be decided this November, and it is has garnered support from business groups, law enforcement, and bipartisan politicians.

Empowered by grocers, CGA led from the front—establishing retail theft’s impact on the industry in the media and maneuvering deftly amidst a turbulent political and lawmaking process.

What I learned this year is that winning in politics is a question of timing. You must be the “fire that wishes for wind.” You must put the work in even when it seems like change is unlikely, or even impossible. Then, you must be ready when the winds shifts. This type of positioning requires political know-how, but also perseverance and grit. Characteristics I can proudly say this industry and its association has in spades. ■

iStock

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CGA EDUCATIONAL FOUNDATION CHAIR’S MESSAGE

Celebrating $10 Million in Scholarships JACQ U I E S LO B O M CGA E DUCAT ION AL FOUN DATIO N BOAR D OF TR US TEES CHAIR

The impact of these scholarships extends beyond the classroom, into the aisles, offices, and community As California Grocers Association Educational Foundation (CGAEF) Board of Trustees Chair, it is with immense pride that I share a new milestone in our organization’s history. CGAEF has officially awarded over $10 million in scholarships to grocery industry employees and their dependents—a true testament to the incredible generosity and dedication of California’s grocery industry.

Since the Foundation’s inception in 1998, we have granted 6,571 scholarships to the hardworking individuals who power the grocery industry across California.

These scholarships represent more than just financial support, they symbolize the industry’s commitment to the growth and development of our workforce.

As Chair, I’ve had the privilege of watching many talented individuals unlock new means for pursuing higher education, enhancing their skills, and working toward becoming the next generation of grocery industry leaders. This achievement was made possible by the unwavering support of so many people and companies throughout the grocery industry.

Whether you’re a corporate partner, individual donor, or one of the many

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

C O LLEGE SC HO LARS HIP 2024– 20 2 5

contributors who believes in the power of education, this $10 million milestone belongs to you as much as it does to us. That’s because you’ve played a critical role in helping thousands of employees and their families pursue their educational dreams.

Y our continued support ensures that our scholarship recipients—whether high school seniors, undergraduates, or graduate students— can continue to aim high and dream big.

We know that education is one of the most powerful tools to create change— both personally and professionally. Our scholarship program is designed to nurture the talents of those who are already contributing to our industry while preparing them to lead it in the years to come.

CGAEF_Scholarship_Brochure_2024-25_03b.indd 1

9/12/24 11:30 AM

The impact of these scholarships extends beyond the classroom, into the aisles, offices, and communities where these recipients work.

Looking ahead, our commitment to supporting grocery employees remains as strong as ever. We are energized by the future, eager to build on this momentum, and ready to continue offering opportunities to our grocery community.

On behalf of the CGAEF Board of Trustees, thank you to everyone who has made this incredible achievement possible.

Your continued support ensures that our scholarship recipients—whether high school seniors, undergraduates, or graduate students—can continue to aim high and dream big. ■

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VIEWPOINT

It’s The Economy. Really.

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

Controlling the Narrative Around Grocery Prices Four of my favorite economist jokes: • Economic forecasters assume everything, except responsibility.

• Why was astrology invented? So economics would seem like an accurate science.

• Did you know economists have predicted nine out of the last five recessions?

• The First Law of Economists: For every economist, there exists an equal and opposite economist. The Second Law of Economists: They’re both wrong.

Okay, that’s enough. For now. (I’ll have another one at the end of this column.)

Picking on economists is easy, and probably has been the sport of non-economists for as long as economists have been in business.

To be clear, I’m not an economist, and never have taken a class in economics. I’m just a simple country pundit.

Second, I have incomplete information.

The lead times on writing a magazine article tend to be pretty far out, so a lot of things may happen between the time my fingers hit the keyboard and when you actually read the result.

And third, I want to avoid politics to the best of my ability. As I write this, it is important to point out that there is a lot of debate taking place about the economy, alleged “price gouging” in the food business, and potential regulatory and legislative remedies. Lines are being drawn, and sides are being taken.

With those clarifications in place, let me suggest that even as the debate rages on, food industry companies ought to be as concerned with the optics as the reality of the situation.

Which is why, in writing this column about the impact of the economy on consumer behavior, I want to be careful about a few things.

First, no prognostications—I have no idea what the economy is going to do over the next six months (let alone further out), so I don’t want to get over my skis.

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

iStock

Whether or not the argument that the federal government should be intervening on behalf of consumers passes muster with economists and is even untenable in a contentious political climate, the suggestion is likely to resonate with shoppers. They don’t need to understand the difference on why price controls may not be precisely the same thing as putting limits on so-called price gouging.

They don’t really care.

In 1964, Supreme Court Justice Potter Stewart defined obscenity this way: “I know it when I see it.” The same may go for price gouging—regulatory and legal thresholds may be hard to define, but shoppers will know it when they think they see it. And so it becomes critical for retailers to take control of the narrative as best they can, and not allow outside influences to define them.

I’m not sure that retailers in general have defined their approach to pricing sufficiently to shoppers. Very rarely do I see targeted communications from retailers in which they describe their interactions with suppliers, give a sense of how negotiations play out, and all the expenses that go into running stores. This is all dynamic, and yet retailers almost never engage with their shoppers on these issues.

VIEWPOINT

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If prices are up, explain why. If you are able to give customers a “win,” point to it.

If you are making decisions about what to carry and not carry based on manufacturer pricing, describe your process. Be more specific about how your shoppers can save money (even at your own expense). Don’t demonize anyone. Just explain. Treat your customers like adults capable of absorbing information and acting on it.

I believe that in taking such an approach, retailers actually can build trust and community with their shoppers—which may be complicated in the short term, but will reap benefits in the long term.

One other thing, if I may.

I know that one of the themes of this month’s issue and the CGA Strategic Conference is focusing on AI and “Accelerating Impact.”

So I was curious. I went to Open AI’s ChatGPT and asked it to write, in 250 words, “in the voice of MorningNewsBeat’s Kevin Coupe,” a piece about the impact of the current economy on consumer behavior.

This is what I got: Grocery Price Surge: A Six-Month Forecast Today, let’s dive into a story that’s becoming increasingly relevant: how rising grocery

prices are set to reshape consumer behavior over the next six months.

to fill the gap. For them, every dollar counts more than ever.

Picture this: a family of four, accustomed to a weekly grocery bill of $150, is now shelling out $200. The impact? Immediate and noticeable. As grocery prices continue to climb, these families are tightening their belts—literally. Shoppers are shifting their spending, opting for budget-friendly brands, and hunting for the best deals with newfound zeal. The days of casual impulse buys are fading fast.

As we navigate these turbulent waters, one thing is clear: the grocery landscape is evolving. Consumer behavior is adapting, and those who can anticipate these changes will find themselves better equipped to thrive in this new economic reality. Stay tuned for more updates as we continue to track this story.

The substitution effect is in full swing.

Consumers are swapping out premium cuts of meat for more affordable options, and premium coffee for store-brand brews.

Bulk buying is making a comeback, as families attempt to stretch their dollars further, stocking up on staples that offer better per-unit prices.

But it’s not just about switching products.

This price surge is influencing how people think about their food. Meal planning and cooking from scratch are becoming more popular as families look to avoid the higher costs of pre-packaged convenience foods.

Low-income households are bearing the brunt of these changes, often turning to food assistance programs or community resources

That’s not bad, though I don’t really think it sounds like me, and I think it kind of skims the surface of the water. Also, no jokes or irreverence. (This points to AI’s current limitations—though I do have this feeling that eventually, when I retire, I’ll be able to just have AI generate all my writing, and nobody will know the difference. This does not make me feel better.)

Here’s would be my larger, non-AI-generated bottom line: Tell your pricing story. Vividly.

Frequently. Transparently. Contextually. In a way that will resonate with your community of shoppers. And don’t leave it to the media or the politicians to do so.

And especially not the economists.

What’s the difference between an economist and a confused old man with Alzheimer’s?

The economist is the one with a calculator. ■

CAL I FORNIA G RO CER | 11

INSIDE THE BELTWAY

Shoppers Feel in Control of Their Grocery Spending J EN N I F ER H ATC H ER CHIE F POLICY OFFICER AN D SVP, G OVERNMENT AND MEMBER REL ATIO NS, FOOD MAR K E TIN G IN S T ITUTE

Consumers Seek Deals and Shop Around to Address Inflation-Related Impacts on Food Prices As summer comes to a close and families return to more normal patterns of school and work obligations, it is a critical time to examine how this shift impacts shopping behaviors. This is especially important in the current economic environment in which food-at-home inflation has largely cooled but prices themselves remain elevated from their pre-pandemic levels.

Recently, FMI — The Food Industry Association released the fourth installment in our five-part series exploring U.S. grocery shopper behaviors and attitudes. The “Return to Routine” report reveals that consumers are adapting their shopping strategies to be more flexible to keep control of their grocery spending heading into the fall. The report provides a crucial snapshot of how shoppers are finding value and evolving their grocery shopping habits.

While shoppers report continued concerns regarding inflationary pressures on food and other spending categories, 83% of Americans feel they have at least some control over their grocery spending—with 40% indicating they feel they have a lot of control. This is welcome news, despite the fact that concern with rising food prices is persistent, widespread, and more acute than for other goods and services.

Concerns about price have kept “value” top of mind. Most shoppers (79%) say that getting 12 | CAL I FOR N I A G RO C E R

good value is a top or high priority for them, and most say it’s even more important than a year ago.

They continue to say they’re looking for deals and adjusting their mix of food stores, products and brands to manage the changed price landscape. While they remain flexible and prudent about their value-seeking tactics, they are also open to paying more for convenience, quality and products that align with their values.

Consumers continue to say their primary store for purchasing food does an excellent job of meeting their needs and have demonstrated over the last year that they are effectively managing their grocery budgets despite higher prices. Shoppers report their average weekly household grocery spending has held steady during the past 18 months ($163). In addition, 63% of shoppers say they continue to look for deals and adjust their mix of food stores, products and brands to manage their expenses. In fact, a full 92% of shoppers report having made at least one adjustment in their grocery shopping in response to rising retail food prices.

The good news for retailers is that grocery shoppers tend to see their food stores as allies in supporting their financial success, and very few choose a primary store that they think

is working against them. This is perhaps the reason why so many shoppers continue to enjoy the grocery shopping experience, with 40% either liking or loving it compared to the 11% who consider it a chore.

FMI’s U.S. Grocery Shopper Sentiment Index—a measure of attitudes towards grocery shopping in general and feelings about the shopper’s current primary store in particular—remains high at 68 out of 100.

The fact that the index has stayed consistent since before the COVID-19 pandemic—all through the supply disruptions, shift to online, and price inflation of the past several years—speaks to shoppers’ continued appreciation of their primary store’s partnership and their enjoyment of the process of procuring food and nourishment for themselves and their families.

As shoppers return to their routines, retailers can support customers making this transition by providing product offerings that prioritize value and convenience while still creating opportunities for discovery and exploration. Even though consumers may be settling back into normal patterns of life, they continue to look for ways to maximize their grocery budgets while at the same time making their lives easier. ■ To download the U.S. Grocery Shopper Trends 2024: Return to Routine report, visit www.fmi.org/grocerytrends. This report is part of a five-part U.S. Grocery Shopper Trends series this year.

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WA SHINGTON REPORT

High-level gathering a must for independent executives 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

Preparing for the road ahead Amid an election year filled with uncertainties, political divides, and continued economic pressures, independent grocers might feel challenged in delivering service and value to their customers.

The Executive Conference and Public Policy Summit, scheduled for Oct. 28-30 at The Fairmont in Washington, D.C., is designed to help grocers meet these challenges head-on.

This annual event aims to help independent owners and operators, executives, and their leadership teams gain a competitive advantage in the marketplace through indepth forecasts on the future of the industry and outlooks of emerging economic and business trends. It also provides a chance for independent retailers to strengthen their relationships with trading partners throughout the supply chain, from wholesalers to CPG manufacturers.

The summit’s high-impact education and networking will include sessions ranging from trends and technology to the future of policy to the state of our industry. Plus, NGA’s relationship with policymakers on Capitol Hill allows for the unique opportunity to meet with federal representatives and help give voice to the issues affecting your business.

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

“ It was a great opportunity to connect with other independent retailers to impact the future of grocery,” Tim Lowe, president of North Carolina-based supermarket operator Lowes Foods, said after attending last year’s summit.

“Hearing from panels of industry professionals sharing their insights was informative and inspiring. The keynote speakers were spot on and highly informative.

But the highlight of the event was when we had the opportunity to head to Capitol Hill to speak with our representatives in Congress.”

Here’s a peek at the content in store for summit attendees: • “Navigating the Future: State of the Independent Grocery Industry,” a comprehensive overview of the current landscape and future outlook of the

grocery industry, with a panel of industry leaders led by Scott Moses of Solomon Partners.

• “Engaging the Hispanic Shopper: Strategies for Success in the Fastest Growing Consumer Markets,” including the importance of product assortment, merchandising and marketing that resonate with this diverse community.

• “Leadership Insights: Navigating the Future of Independent Grocery,” an exclusive panel featuring top executives sharing their perspectives on leading in a rapidly changing industry.

• “Harnessing AI for Success: Transforming the Grocery Industry,” a dive into how AI technologies are revolutionizing various aspects of retail operations, from inventory management and customer service to marketing and personalized shopping experiences.

• “Digital Evolution: Redefining the Modern Grocery Experience,” a guide through the digital tools and strategies that are reshaping the grocery landscape.

• “Snacking Revolution: Emerging Trends and Driving Growth,” with insights into how these trends are influencing product innovation, merchandising strategies and in-store experiences.

WASHINGTON REPORT

• “Unlocking Insights: Findings From The NGA-FMS Financial Benchmark Report for Independent Grocers,” offering a deep analysis of the financial health and operational efficiency of independent grocery sector.

Additionally, we are honored to have Dr. Peter Cressy join us to speak on the strategic approach to leading in times of change and crisis. A retired U.S. Navy rear admiral and currently the Washington Presidential Library’s Director of Executive Leadership Programs at Mount Vernon, Dr. Cressy will offer a look back on some of history’s greatest leaders, including Washington, Lincoln, Roosevelt and Churchill, and the lessons they offer for today’s business leaders.

Keynoting the summit this year is the renowned Politico bureau chief and senior political columnist Jonathan Martin, whom we’ve invited to help you make sense of today’s politics. As the summit convenes,

• “Powering Growth: Mergers and Acquisitions in the Independent Grocery Sector,” exploring the dynamics of M&A activity within the independent grocery sector.

• “High Highs and Low Lows: The Global Economy and Shifting Input Costs in the Grocery Industry,” with a focus on how changing input costs are reshaping the landscape.

We’ll also have a B2B session that offers a special opportunity for retailer and wholesaler executives to connect with some of the leading suppliers and solution partners in the industry.

It’s all part of NGA’s ongoing efforts to provide independent grocers with the tools they need to succeed amid a dynamic, often volatile, economic www.nationalgrocers.org and political environment. And it’s all available to NGA members. Learn more the 2024 election will be about a week away. at ngaexecconference.com. ■ Martin will bring an insider’s perspective as he explains the potential impact on policy on your business.

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JANUARY 2023 NOVEMBER 2022

AFS taps Rice as next leader

Grocery retail giants pitch merger

Succeeds Obray, who died in August

$24.6B deal pending regulatory, anti-trust review

Salt Lake City, Utah-based grocery wholesaler Associated Food Stores has named David Rice as president and CEO of the 82-year-old company.

The move comes following the passing of Robert Obray, who served as president and CEO when he died from a rare, fast-moving neurological disease in August.

“Bob was an incredible leader and worked closely with the company’s board of directors and his leadership team to establish the future direction of the David Rice company,” Rice said. “Bob was a friend to all and while no one will ever fill his shoes, collectively we are committed to following in his remarkable footsteps.”

Obray, who previously served as the company’s EVP and CFO, was named president and CEO in 2020 after the retirement of Neal Berube.

Obray also served on the board of directors for the Retailer Owned Food Distributors & Associates, whose 60th anniversary will be commemorated with a special section next month in The Shelby Report.

An independent retailer-owned warehouse started in 1940, Associated Food Stores provides facilities and retail services to nearly 500 grocers throughout the Intermountain West.

Rice brings knowledge and experience to the position, having worked for Associated Food Stores for 27 years. Previously, Rice served as EVP of Associated Food Stores and president of Associated Retail Operations.

“With almost three decades of industry experience, Rice combines extensive expertise and a commitment to independent retailers that is vital as we continue executing our short- and long-term growth strategies,” said Chip Atkinson, chairman of the board, Associated Food Stores.

“His proven ability to connect with retailers, team members and vendor partners make him an ideal fit to lead Associated Food Stores, and we are energized and enthusiastic about the future of our cooperative under his direction.”

Please see page 34

Cincinnati-based Kroger Co. and Boise, Idahobased Albertsons Companies have announced a merger agreement between the two organizations. Through its supermarket banners, the combination would expand customer reach and improve proximity to deliver food to about 85 million households.

The deal, which could close in early 2024, has been approved by the board of directors of each company. However, it still must pass regulatory and anti-trust review.

Under the terms, Kroger would acquire all outstanding shares of Albertsons’ common and preferred stock for an estimated total consideration of $34.10 per share, implying a total enterprise value of about $24.6 billion, including the assumption of $4.7 billion of Albertsons Cos. net debt.

As part of the transaction, Albertsons Cos.

would pay a cash dividend of up to $4 billion to its shareholders. The cash component of the $34.10 per share consideration would be reduced by the per share amount of the special cash dividend, which is expected to be about $6.85 per share.

This cash dividend would be payable on Nov. 7 to shareholders of record as of the close of business on Oct. 24.

Together, Albertsons Cos. and Kroger have more than 710,000 employees and operate 4,996 stores, 66 distribution centers, 52 manufacturing plants, 3,972 pharmacies and 2,015 fuel centers.

The combination will create an ecosystem across 48 states and the District of Columbia.

If the deal is approved, Kroger plans to invest in lowering prices for customers and expects to

Your source for grocery news and insights since 1967

Please see page 34

Strategic Conference dazzles in the desert Offers messages ‘our members want to learn from’

According to the CGA, the The California Grocers Association recently held its 2022 CGA Strategic Conference in person new retail roadmap features resiliency planning, better for the first time since the COVID-19 pandemic.

As CEO Ron Fong remarked to The Shelby end-to-end supply visibility, Report’s Bob Reeves, “It’s good to be back in fostering employee well-being full force. This is the first year that people are and inclusion and prioritizing digital and autonomous comfortable gathering in large masses.”

“Retail Roadmap” was the theme of the tools on the path to sustained event, which ran Sept. 25-27 at the Palm Springs profitability.

Ron Fong The conference’s return Convention Center in Palm Springs, California. the saw close to 1,000 meetings, a ShelbyasPublication well as the As the pandemic rounds yet another corner,of the California grocery industry is turning its atten- Emerging Brands Pitch Slam Contest. Held in partnership with the Navigator Lighthouse tion to the road ahead.

Your source for grocery news and insights since 1967 JANUARY 2023 Foundation, the event came about after Fong and his team noticed that many the larger ‘product of challenge’ UNFI preparing to present Exec:ofResilience Inside CPG companies trends receive mostSEG of chief the attention Additional coverage of the CGA Strategic shares keysatto weathering industry storms innovative portfolio, meetings. as we move into this next evolution, this next

by Treva Bennett / senior content creator Conference can be found on pages 20-24, Upcoming show first of four in 2023 S-curve of what our industry will become. including more from the Pitch Slam Contest.

Resilience is the product of challenge. Challenge “If you’re going Please see through page 34 Providence, Rhode Island-based United Natural Foods Inc. plans

The Griffin Report

Northeast

to welcome about 4,000 customers, suppliers, vendors and emerging brands at its Spring and Summer Show on Feb. 7-8 in Orlando, Florida.

The show, which kicks off the first of UNFI’s four major selling shows in 2023, offers attendees the opportunity to meet with experts across natural, GM/HBC, meat, seafood, produce, bakery and deli departments to take advantage of deals, view what’s trending in the New Product Showcase and network with a community of industry experts.

“Our selling shows are a great way for our customers to discover new products and trends that extend their reach and relevance with shoppers, and in return, help them drive sustainable growth and a competitive edge in the marketplace,” said Jillian D’Elia, senior director of event strategy at UNFI. “Simultaneously, our selling shows create a compelling experience for our suppliers to make connections and lasting relationships with a broad network of retailers looking to motivate shoppers with an on-trend portfolio of products.

“Throughout the 170,000 square feet of show floor space, retailers and suppliers can find the right selection of products, prices and people to help them optimize the spring and summer seasons.”

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page_01-34.indd 1

hell, keep going.” Southeastern Grocers President and CEO Anthony Hucker referenced the quote from Winston Churchill during his remarks at the recent FMI Midwinter Executive Conference in Anthony Hucker Orlando, Florida.

Hucker shared photos from Mexico Beach, Florida, after Hurricane Michael made landfall as a Category 5 storm in October 2018. He noted that Hurricane Ian made landfall as a Category 4 storm a few months ago, just 130 miles from Orlando in Cayo Costa.

“Talk about misfortune. Talk about change.

But this, this is resilience – an ability to recover from misfortune with change,” he said. “…

Resilience is a concept that we must embrace

is the basic ingredient of resilience. And you simply cannot have one without the other.”

Hucker said the grocery industry continues to face historic challenges. The resilience of the supply chain has been tested. “We have felt it bending, but it never broke, thanks to many of you that are here today.”

He said grocery shoppers are counting on industry leaders “for value to stretch their dollars, convenience to simplify their increasingly complex schedules and products that meet at the intersection of quality, nutrition, affordability and sustainability.”

Hucker said all are now familiar with the demands of ESG, as “we’re facing unprecedented dynamics of change from our environment. The health and sustainability of our planet is adding Please see page 30

ECRS helps grocery retailers be creative, bold with CATAPULT, its ‘differentiator’ Western North Carolinabased ECRS is going into 2023 with a challenge for retailers: “Be Creative. Be Bold.”

Much of the last two years have been a constant state of waiting, said Caroline Catoe, Caroline Catoe ECRS president.

“Waiting for storms to pass or for the next storm to show. Waiting with uncertainty of what the future would hold. Waiting as lines got longer and expectations got lower.

Waiting, and all the while doing nothing,” she said.

10/21/22 9:33 PM In 2023, ECRS wants to empower its retailers to stop waiting. The company wants them to be bold

Inside

For more coverage of this month’s feature, e-commerce and technology, see pages 16-21.

Region Wise.

Nationwide.

Scan QR Code!

JANUARY 2023

ECRS helping grocery retailers be creative, bold with CATAPULT

and creative in the way they live, the way they work, the experience they offer and the energy they bring.

This includes continuing to develop CATAPULT to give retailers the ability to get creative with their offerings and to attract, delight and convert customers from one-off shoppers to loyal patrons.

CATAPULT’s Unified Transaction Logic sets ECRS apart from its competitors. “It is our differentiator,” Catoe said.

Using Unified Transaction Logic, CATAPULT leverages a single database to update every transactional touch point across an enterprise. “So that’s traditional point of sale, self-checkout, WebCart, AutoScale – all of that information updates in real time and uses the same data,” she said.

Unified Transaction Logic also allows retailers with multiple stores access to their entire enterprise from a single headquarters location. They Please see page 28

Western North Carolina-based ECRS is going into 2023 with a challenge for retailers: “Be Creative. Be Bold.”

Much of the last two years have been a constant state of waiting, said Caroline Catoe, ECRS president.

“Waiting for storms to pass or for the next storm to show. Waiting with uncertainty of what the future would hold. Waiting as lines got longer and expectations got lower. Waiting, and all the while doing nothing,” she said.

In 2023, ECRS wants to empower its retailers to stop waiting. The company Caroline Catoe

wants them to be bold and creative in the way they live, the way they work, the experience they offer and the energy they bring.

This includes continuing to develop CATAPULT to give retailers the ability to get creative with their offerings and to attract, delight and convert customers from one-off shoppers to loyal patrons.

Inside

For more coverage of this month’s feature, e-commerce and technology, see pages 22-25.

CATAPULT’s Unified Transaction Logic sets ECRS apart from its competitors. “It is our differentiator,” Catoe said.

Using Unified Transaction Logic, CATAPULT leverages a single database to update every transactional touch point across an enterprise. “So that’s traditional point of sale, self-checkout, WebCart, AutoScale – all of that information updates in real time and uses the same data,” she said.

Unified Transaction Logic also allows retailers with multiple stores access to their entire enterprise from a Please see page 28

Network designed to energize, inspire female grocery execs

Hometown Foods IGA thriving in NE Georgia

by Chelsea Matzen / director, NGA Foundation

by Jack R. Jordan / content creator

Are you ready to join one of the most energizing and inspiring executive development programs in the grocery industry?

The first meeting of the Executive Female Leaders Network offered a robust content platform focusing on leadership development, industry trends and peer networking. But it was much more than that – it was a unique experience for the independent grocery industry, the first step in what we hope will be an ongoing journey toward the growth and enhancement of women’s careers in the independent sector.

At that first meeting, launched by the Women Grocers of America this past October in Washington, D.C., there was a feeling among all the participants that we were on the threshold of what promises to be a new era for career development.

Kristin Popp, EVP of Woodman’s Food Markets and WGA president, was most impressed by “the energy and connections developed by

On the main street of McCaysville, Georgia, with the Tennessee border in its back yard, sits Hometown Foods IGA. Edward Vest and his wife, Lisa, have owned the picturesque mountain town’s sole grocery store for nearly 21 years.

Powered by meat department, store surpasses expectations

Please see page 30

Lisa and Edward Vest

Vest, who grew up in McCaysville, began his life in the grocery industry at a young age. The location that now houses his IGA used to be an A&P Grocery, where Vest got his first job in 1981.

After graduating from high school, A&P moved him to the Charlotte, North Carolina, area to manage a store. While there, his original A&P was damaged by flooding and shuttered.

“It sat empty for about seven years and a guy came through and he bought the building and he fixed it up. He made it into a large IGA,” Vest said.

Vest continued his career managing different stores around the Southeast. One of his last A&P ventures was a co-managing role in Wilkesburg, North Carolina. After that store closed, he began a career with Piggly Wiggly in Ducktown, Tennessee, less than 10 miles from McCaysville. He managed that store for nine years.

As Vest was so close at the time to the IGA and its owner, he was primed to purchase the business when it became available.

“I heard he was going to sell it,” Vest recalled.

“I came over and talked to him. He told me that his manager would come first at auction, which I understood. So about two weeks later, my phone rang and it was him. He said, ‘If you’re still interested, let me know.’ Well, I called the bank right there to see what I could work out and – spoilers – it did work out for me.”

In the years since, Vest said the store has outperformed what he could have imagined.

Please see page 30

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CAL I FORNIA G RO CER | 15

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A Safer California

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 Rocky Road to Retail Theft Reform Brown

You would be hard-pressed to find a more high-profile topic in this year’s California State Legislature than public safety, specifically retail theft. Stories of smashand-grabs have captivated voters and left both parties grappling with what to do with decades of policy—either to uphold them or undo them. Meanwhile, frustration grows amongst the electorate and a public safety proposition looms—seen by some as a threat and by others as the savior.

By February of this year, legislators introduced over 30 bills aimed at tackling retail theft. Legislative leaders held informational hearings, convened working groups, and legislators brought forth bills to establish new penalties for repeat offenders, enhance sentencing standards, increase arrest authority, and require reporting of platforms that facilitate resale and fencing operations.

But, notably absent from the bipartisan package of bills was any reference to amend Proposition 47. Passed in 2014 to curb prison overcrowding and redirect efforts to criminal rehabilitation, Proposition 47 reclassified certain nonviolent crimes, including shoplifting of goods valued under $950, from felonies to misdemeanors. While it may have achieved some of its supporters’ aims, there’s no denying since its passage

that petty theft has increased, offenders have faced lighter or no penalties, and organized criminals have become brazen.

But in the context of the State Legislature, Democratic leadership was clear— any bill amending Proposition 47 would not advance.

However, this statement did not deter the proponents of Proposition 47 reform.

By April, the Californians for Safer Communities Coalition and the California District Attorneys Association had submitted over 900,000 signatures (approximately 350,000 more than the required amount) to put a reform measure on the ballot before voters. In early June, Secretary of State Shirley Weber declared the initiative had qualified for the 2024 November ballot.

At that same time, as the remaining twelve retail theft bills advanced through the legislative process, they reached an impasse in the Senate. Legislative Democrats sponsored amendments to bills that would make them inoperative should the initiative to roll back Proposition 47 pass. Republicans labeled these amendments “poison pills” and withdrew their support, claiming they forced voters into a false choice between the bills or the ballot measure. Because of the eventual political and public pressure, the Legislature

removed the urgency and inoperative clauses from the bills and allowed them to proceed.

But the drama didn’t end there. Because qualified initiatives can be voluntarily pulled from the ballot before July, the Administration and Legislature made one last attempt to negotiate with proponents.

They offered that “everything was on the table” in legislation if the initiative supporters pulled their November measure.

But when it was clear Proposition 47 reform was never going to be included, negotiations with the District Attorneys’ initiative broke down. And in one last desperate attempt, the Governor introduced a rival legislative ballot measure, seemingly with the blessing of legislative leadership. However, just two days later, the effort was tabled.

Regardless of the politics and legislative maneuvering, the California Grocers Association seized the moment. The legislative package was signed and CGA President and CEO Ron Fong was among those invited by the Governor to speak at the signing ceremony. The effort to reform Proposition 47 is now on the ballot as Proposition 36. Voters will have their say in November. We are proud to be part of the work this year to turn chaos into order and to help make a vision for a safer California a reality. ■

CAL I FORNIA G RO CER | 17

COOKIES, ROBOTS, AND THE SELF-CHECKOUT LINE

C

K OO

IES

For grocers, integrating AI into checkout lines is risky, but a human touch may be the solution.

By Jeremy S. Thompson, Senior Vice President, Edelman Global Advisory 18 | CAL I FOR N I A G RO C E R

T

he first time I used self-checkout at a grocery store, I felt an immediate sense of freedom. Not only could I breeze through the checkout line, but I also didn’t have to endure the judgmental glance of a cashier as I unloaded four packs of Double Stuf Oreos from my cart. The self-checkout machine— unflinchingly neutral—never gave me the side-eye as I bagged my groceries mumbling something about having visitors for the weekend. Two things became clear when self-checkout entered my life: First, everyone in the store knew those cookies were just for me. And second, self-checkout is a tangible sign of the innovation that is transforming grocery stores.

Believe it or not, most changes at the local grocery store go unnoticed by consumers. With Americans spending about 41 minutes on average at their local market, innovations in processes like inventory management and demand forecasting—ensuring that tomatoes are always available for our salads—often fly under the radar. We notice when the Oreo shelf is empty, not when it’s full.

But other changes, even those not yet introduced, are causing consumers to think twice—especially those leveraging AI. While it may be tempting to boast of your tech advances and AI integration, industry should tread carefully. It’s okay to get excited about new features like personalized shopping tips, automated robot cleaners, and dynamic pricing, but consumers don’t yet trust the technology coming from the tech industry or, by extension, the tech popping into our stores.

Every year, the Edelman Trust Institute undertakes its massive Trust Barometer to measure the rise and fall of trust around the world across four key institutions: government, NGOs, media, and business. Business scores consistently high as a trusted institution. But when you dive deeper into the tech industry and its products, it becomes clear among the 2024 survey’s respondents that AI—including Continued on page 20 ▶

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◀ Continued from page 19

machine learning, natural language processing, and generative AI—is at a crossroads. It remains unclear to what degree AI will be embraced by consumers or rejected as an invasive technology that puts privacy at risk.

The concerns are familiar—if not justified. While AI isn’t going to call me out for being back so soon for more Double Stuf Oreos, consumers who are less than enthusiastic about AI are concerned about privacy and where exactly their data is going, according to the 2024 Edelman Trust Barometer Supplemental Report: Insights for the Tech Sector. Among those same people, 35% say their concern is that AI is not adequately tested or evaluated. What struck me as most compelling was the fear that AI could devalue what it means to be human. In my elementary years, I always went to our local grocers, Magruder’s, for candy because the cashier, Lacy, would ask me about my schoolwork. That emotional connection is what keeps us coming back to brands.

The reality is, if consumers do not trust the tech that’s being put in stores, that disconnect erodes trust and hurts your brand—a huge risk in an era when consumers are already looking for ways to avoid the physical store.

So what can we do? How can the corner store seize the technology revolution while maintaining trust with consumers?

Brand transparency and consumer education are key when introducing new tools and technologies, especially those powered

by AI. When you’re integrating a new technology into the store, make sure your customers know what it means for them, clearly

So what can we do?

How can the corner store seize the technology revolution while maintaining trust with consumers?

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

communicate the benefits, both for individuals and your community.

Helping people understand how AI works (remind them it’s not technically Skynet from The Terminator) and how the new technology can help them save money is essential in building trust.

Finally, ensure these technologies are thoroughly tested before implementation. You must demonstrate reliability and effectiveness.

By doing so, retailers can show that these innovations are designed not just with the bottom line in mind, but with the well-being and satisfaction of their customers at the forefront. The future of grocery shopping is digital, but that future can only come when ushered in by consumers. And consumers will only embrace technology they understand and trust.

AI has the potential to revolutionize the grocery store experience, making it more personalized, efficient, and convenient. But as with any new technology, the path to widespread adoption is paved with caution. Consumers need to know that their data is safe, that their choices are respected, and that the human touch isn’t being lost in the process. By addressing these concerns head-on, the grocery industry can build a future where AI is not just another tool on the shelf but a trusted partner in our shopping experience.

After all, if AI can learn not to announce to the entire grocery store that this is my third trip to buy Double Stuf Oreos in four days, then I’m more likely to call it a good partner. Maybe even a trusted one. ■

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iStock

CHAOS AND COMPROMISE: Behind the Scenes of California’s 2024 Ballot Battles

By Michele Fuller

“Madness, scrambling, chaos, and flurry.” These are just a few words used to describe the atmosphere leading up to California’s June 27th ballot initiative deadline.

In those final days, a political storm of national significance was brewing as a consequential presidential debate sparked Democratic unease. This development added pressure to an already tense environment as Governor Newsom and California legislators navigated their state and national responsibilities while facing the looming ballot deadline.

Concerns about campaign resources, the impact on the state budget, and voter turnout likely influenced an unprecedented and last-minute move: Five initiatives were pulled from the ballot in a surge of last-minute negotiations.

Adding to the drama, the legislature put forth two bond measures, the Supreme Court blocked an anti-tax initiative, and a governor-initiated crime measure was proposed— only to be withdrawn shortly after.

The evolving approach to policymaking, where ballot measures are increasingly traded for legislative action, marks a relatively new chapter in California politics.

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

The Law that Transformed California’s Ballot Since its introduction in 1911, the ballot initiative process has been a cornerstone of California’s political culture. It reflects the state’s progressive roots and commitment to citizen engagement in government.

This system of checks and balances allows citizens to directly address issues they believe may not be adequately handled by elected officials.

However, the process shifted in 2014 with the passage of SB 1253, known as the Ballot Transparency Act. Introduced by former Senator Darrell Steinberg (D), the law permits the proponents of a citizen-initiated ballot measure to withdraw at least 131 days before the general election.

Some critics argue that this law undermines the original intent of ballot initiatives, potentially sidelining voter input on citizen-signed petitions and introducing the risk of dealmaking that favors special interest groups.

The majority, however, see it as a way to reduce ballot clutter and craft more nuanced legislation through compromise.

“If there’s going to be some policy deal or negotiation done as a result of any ballot initiative, that ultimately has to go through the legislative process and be voted on by the representatives that voters put into place,” explains Jennifer Barrera, President and CEO of CalChamber.

“Everything has to come out through public testimony and is open and available for vetting and questioning by legislators, elected officials, and certainly the governor, before it’s signed.”

Another reason elected officials and proponents may favor legislative compromise is the rigidity of rules around qualified ballot measures. Democratic political consultant Steve Maviglio, who has worked on dozens of local and statewide campaigns, emphasizes that with ballot measures, “whatever is there cannot be changed by the legislature except for extraordinary

circumstances. So, if there’s a deficiency in an initiative, which often there is because they’re written by advocates, then it can’t be fixed. With legislation, you can always fix something that’s wrong.”

Maviglio also points out the often superficial nature of signature gathering: “When somebody signs a petition outside of Walmart, they’re not reading what’s in it; they’re listening to what somebody’s asking them to sign. It’s a completely different story.” Ultimately, SB 1253 has the potential to provide voters with more information and context about the issues at hand, avoid costly battles, and potentially save the state millions of dollars.

Maviglio sums it up: “Compromise is always better than extremism...An initiative is all or nothing. With legislation, you get to craft a finer product because it’s a result of compromise.”

Until this year, only nine measures resulting from SB 1253 had been withdrawn from the ballot—three in 2018.

This election cycle sets a new record.

Reflecting on this year’s initiative process, Barrera says, “I think people in interest groups on all sides…are looking at the ballot and initiative process as an opportunity—another tool to make some big policy changes...the Steinberg bill...has created leverage for these negotiations.” iStock

PAGA Reform: A Case Study in Compromise One of the most significant compromises this year involved the Private Attorneys General Act (PAGA), a 2004 law allowing workers to sue employers for wage theft and workplace abuses on behalf of themselves or other employees. The 2024 proposal to reform PAGA, strongly supported by the California Grocers Association (CGA) and other business groups, was one of the five measures withdrawn after extensive negotiations.

Continued on page 24 ▶

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◀ Continued from page 23

“With the data we had seen from all the research we did, [the workers] really weren’t getting the benefit of this law that was supposed to be intended to protect them,” Barrera explains.

The priority of PAGA reform, she says, was to find the pathway that cut down on lawsuit abuses while still protecting workers.

Proponents met their goal through legislative compromise— AB 2288 and SB 92, saving the state from a potentially divisive ballot fight.

Barrera believes PAGA reform is “one of the most significant business successes that we’ve seen in the legislature, at least since I have been working in this industry, which is now 13 years. And grocers were absolutely a part of that.”

Minimum Wage Increase: A Double-Edged Sword Even with the flurry of dealmaking, 10 measures remain on this year’s ballot, including Prop 32, which proposes raising California’s minimum wage to $17 for the remainder of 2024 and to $18 starting in January 2025. Small businesses would have an extra year to comply, with wages adjusting for inflation beginning in 2027.

This proposal follows California’s historic 2022 law, which made it the first state to reach a $15 minimum wage—an initiative fiercely backed by unions and restaurant workers.

Democratic strategist Matt Rodriguez points to the increasing pressures on businesses, iStock particularly low-margin grocers, facing rising wages and inflation: “There’s the lockdowns during COVID, the increased cost for things like hero pay...

Then you have the general inflationary pressures that are really affecting everybody...And you still have tax increases that people are pushing locally.”

He adds, “[Grocers] have a lot of policy coming at them that is really driving up wages and labor costs. It’s a multi-pronged attack that’s been going on for about four or five years. They’re in a bit of a storm.”

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

Barrera echoes these concerns, pointing out the unfortunate timing of the proposed increase. “We’re in a budget deficit, and inflation is super high. Businesses are feeling inflation through their supply chain and the cost they’re paying. Ultimately, we’re seeing that through higher prices for consumers. It’s an aggregating factor to throw into all of that an increase in minimum wage on all businesses at this time.”

She emphasizes that CalChamber’s polling shows that while Californians are highly sensitive to the cost of living, raising the minimum wage might exacerbate the problem. “It’s kind of this circular problem, right? The more you increase the cost on employers, the higher their prices are, and their purchasing power doesn’t increase.”

Recalling the impact of other increases, Barrera notes, “I think about West Hollywood where they increased the minimum wage, and you saw the immediate impact and outcry by small businesses in that region and the shutting down of businesses. I think those stories have impacted the broader customer or voting base that would normally and immediately say, yes, I want to support a minimum wage increase—to wait a minute, what is this going to do to the cost prices I’m already struggling with?”

With all these dynamics at play, CGA remains opposed to Prop 32, reflecting its broader concerns about the future of grocery and its advocacy for a balanced approach to doing business in California.

Retail Theft and Prop 47 Reform: The Debate Heats Up California’s rising crime rates have brought public safety to the forefront of the 2024 ballot. Prop 36, backed by the district attorneys, seeks to reverse parts of Prop 47, the 2014 law that reclassified many nonviolent felonies as misdemeanors. Prop 36 proposes stricter penalties for theft and drug crimes, especially those related to fentanyl.

In a last-minute move, Governor Newsom introduced a competing crime initiative but withdrew it due to time constraints and rumored lack of support among moderate Democrats—a reflection of the deepening concerns over crime in local communities.

Despite the grocers’ support of Prop 36 and the governor’s alternative proposal as possible solutions to retail theft, voters now have one clear choice on the ballot. The stakes are high, and the outcomes will likely shape California’s criminal justice landscape for years to come.

“The opponents really turned up the heat on the legislature,” Maviglio observes. “It was interesting to see that a lot of Democrats didn’t want to be associated with that effort. You can’t unsee what you’re seeing when you’re a voter. You’re seeing retail theft on the news every night.”

Political Strategies, Campaign Costs, and the Future of Ballot Measures

Rodriguez, who has spent over two decades working on highprofile campaigns, highlights the popularity of Prop 36 and the public’s demand for change: “Voters clearly see crime as an issue.

They want a solution. Retail theft is particularly bad, but it’s also viral—you’re seeing this stuff happening on TikTok, Instagram, YouTube. This stuff moves. Especially in some cities like San Francisco and LA that are becoming known as crime havens.”

Maviglio observes, “I don’t think the proponents of Prop 36 were in any mood to give away the store…All the polling shows overwhelming support for Prop 36, so why would you want to give away the opportunity for, most likely, winning the campaign?”

Public safety reform continues to be a contentious debate. But Barrera believes a broader lens is critical. “Leaving the existing qualified initiative aside, if any of these bills...or the governor’s proposal that was being considered before recess were put forward last year,” she says, “we and the business community would be ecstatic, right? Thrilled with these policy proposals that really do make significant changes and steps forward in addressing this problem.”

She continues, “We’re looking at it in this very narrow space, comparing it to [Prop 36] instead of from a broader policy perspective...The governor’s office was trying to put forward a more moderate proposal to meet...dealing with the theft and crime that we all see as a problem but also not going back to this mass incarceration. And how do you draw that fine line?”

Prop 47 reform remains a powerful contender on the ballot.

That said, Maviglio believes it will be a “very expensive and ugly campaign.” He points out, “The governor said he’s against it, and I think some of the people that were missing in action during the legislative debate for whatever reason, mostly the advocates of Prop 47, are going to be out in force.”

The 2024 ballot cycle highlights the growing importance of strategy, timing, and political agendas in shaping policy outcomes.

With the shifting political landscape, even the best-laid plans can quickly pivot.

This year, Governor Newsom’s involvement was particularly impactful. His ability to broker deals and influence key initiatives reflects the governor’s expanding role in the ballot initiative process.

“My sense is that Governor Newsom wanted to clear as much of the ballot as possible this year. Probably for a bunch of reasons,” Rodriguez explains. “One, he has a few priorities...like bonds...so you always want to have as clear a shot on the ballot as possible.

I think the second was that he has some future presidential ambitions and he’s obviously trying to keep some of that clear in a presidential year.”

Beyond strategy, campaign costs are also a powerful motivator for negotiating measures off the ballot. Statewide campaigns are notoriously expensive, and as stakes rise, so do the costs for all parties involved.

Even high-profile issues can struggle to secure funding. Regarding Prop 36, Rodriguez points out that “the retailers did a lot of work to get it on the ballot, but it’s not clear that the Walmarts or the Targets themselves will want to fund a $70 to $80 million campaign either.”

As California’s initiative process continues to evolve, the grocery industry’s engagement remains essential. “California is very active in policy making and legislation, and next year is going to be no exception,” says Barrera. “Engagement is obviously key to developing good policy. The more our members are engaged and focused on California and what the legislature is debating or considering, the more successful we are.” ■ For a complete list of qualified ballot measures, go to www.sos.ca.gov/elections/ballot-measures/qualified-ballot-measures

CAL I FORNIA G RO CER | 25

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The New CALIFORN A C NSUMER

By Dan Frommer, Founder, The New Consumer

What do Californians want to eat more and less of right now? How do they think about their health and longevity? What wellness trends are most appealing? And what are their attitudes on using Ozempic and other GLP-1 medications to lose weight?

For the past five years, I’ve polled tens of thousands of U.S. consumers about their food, wellness, and spending habits, as part of the Consumer Trends reports series that my publication, The New Consumer, produces with the investment firm Coefficient Capital.

This year, we’re applying a California-specific lens to our research for the CGA Strategic Conference—and this issue of the magazine. Here are some of the most interesting and high-impact findings from our recent research.

Food and Diet Trends Californians say they want to eat more… vegetables! We asked 295 Californians, and nearly 3,300 Americans, to write in the three things—ingredients, foods, or substances—they wanted to consume more of and less of this year.

Topping the list of things people want to eat more: vegetables. Nearly half of the Californians in our survey panel wrote in vegetables, ahead of fruit, water, and protein. This feels like a real merchandising opportunity—it’s time to shake things up in the fresh department.

Sugar, meanwhile, tops the list of things Californians say they want to consume less of this year. Around 60% of Californians in our survey said they’d like to consume less sugar this year, followed by salt, fat, carbs, and alcohol.

These lists are pretty similar to how the overall U.S. consumer responded, with some slight differences in the rankings.

Citrus, packaged baked goods, and Greek and Icelandic yogurt were the three top-growing food categories among Californians’ carts on Instacart last year.

Nationally, the top-growing categories were berries, Greek and Icelandic yogurt, chips, packaged baked goods, and cucumbers, according to the online grocery company.

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Californians are ahead on many food and diet trends.

About one in five Californians think they aren’t getting enough protein in their diet. That’s slightly lower than the broader U.S. population: Overall, 25% of Americans think they aren’t getting enough protein in their diet.

It’s higher among women than men, higher among Gen. Z than older generations, and slightly higher among vegetarians.

This is an opportunity to highlight foods that are naturally high in protein, and supplements that can help when needed.

Speaking of supplements, 78% of Californians say they take vitamins or supplements at least multiple times per week— higher than the national average.

Californians are ahead on many food and diet trends. More Californians are aware of oat milk, plant-based meat, avocado oil, kombucha, kelp, yuzu, ube, low-alcohol spirits, fermented foods, the paleo diet, and the concept of regenerative agriculture than the average U.S. consumer.

Among those aware of trends like reducing seed oils, food as medicine, eating fermented foods, eating organic foods, drinking low-alcohol spirits, and the keto diet, a higher percentage of Californians say they’re personally interested in participating than the average American.

Don’t be afraid to play to the cutting edge of grocery and food culture in California.

More Californians also identify as vegan and vegetarian. About 7% of Californians identify as vegetarian in our survey, compared to 4% of the broader U.S. population. And 4% of Californians identify as vegan, twice as high as the broader population.

Health, Longevity, Weight, and GLP-1s For Californians, health is wealth. Most Californians—62%—said they would rather feel 25% healthier than earn 25% more money.

Health is top of mind these days—lean into it.

About 30% of Californians say they’d like to live forever. The rest, on average, say they’d like to live until age 89. (In reality, the average Californian lives to nearly 80.)

What would Californians do to live longer? Nearly half say they’d be willing to exercise more than two hours per day, and more than 40% say they’d be willing to start a new sleep routine and stop eating sugar. Those are all higher percentages than the average U.S. consumer.

How much would Californians pay to live longer? Around half say they’d spend less than $100 per month (indefinitely) on products and services specifically designed to extend their lives— supplements, vitamins, etc.

But almost one in five Californians—19%—say they would spend $200 per month or more, which is higher than the 13% of overall U.S. consumers who say they’re willing to spend that much.

For Californians, “healthspan” tops lifespan: Given the choice, about 65% of Californians say they’d rather feel 25% healthier within their normal lifespan, as opposed to around a quarter who would choose living 25% longer.

Weight is America’s top health concern, and more than 40% of Californians say they’re “extremely” or “very” interested in losing weight—roughly the same as the overall U.S. population.

We’ve been especially curious about the new wave of GLP-1 prescription drugs, such as Ozempic, Wegovy, and Mounjaro.

Millions of Americans are now using these medications to manage diabetes and lose weight, and they may prove to have significant effects on how people eat and buy food.

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Some 60% of Californians say they’re aware of Ozempic, the best-known GLP-1 drug—greater awareness than Viagra and Lipitor.

Still, Californians do a lot of grocery shopping online.

About 24% of Californians who haven’t already been prescribed GLP-1 medications say they’d be interested in taking them for either diabetes management or weight loss.

E-commerce represented 11.6% of Californians’ grocery spending on credit and debit cards last year, according to Earnest Analytics, which tracks U.S. consumer card spending. That’s higher than the national figure of 9.1%.

And whether they use GLP-1s or not, 25% of Californians who are aware of the drugs say just knowing about them has made them feel more pressure to lose weight—greater than those who live outside of the state.

Food Inspiration and Grocery Shopping Californians get inspiration for cooking—and discover new recipes—on YouTube (41%), from friends (32%), cookbooks (26%), from food blogs and magazines (22%), and from Instagram (20%).

YouTube is particularly popular among Californians. When we asked our survey panel if they were “trapped on a deserted island” and could choose to access only one streaming video platform, a third of Californians chose YouTube—well above Netflix at 17%.

Most Californians say they actually like grocery shopping.

The state’s great array of grocery stores—from obsessive natural foods specialists to iconic local banners—have a lot of fans.

Californians who use Instacart spent almost 15% more per user last year than the overall Instacart user, according to Earnest data.

The future is omnichannel, so becoming a customer’s first choice for both their online and in-store shopping is the ultimate strategy.

Food price inflation is the biggest issue in the U.S., and that’s no different here: Even though inflation has dramatically cooled, 59% of Californians still say it feels like prices have “increased a lot” over the past 6 months.

Still, many Californians are investing in their food purchases.

About 26% of Californians say they have “traded up” on groceries—buying more expensive brands than before—versus 22% of the overall U.S. population.

Californians are also more likely to say they’re trading up in specific grocery categories: Meat and fish, fruits and vegetables, snacks, condiments, beverages, and dining out. ■

Some 77% of Californians say they “very much” or “somewhat” like shopping for groceries, higher than the 70% nationwide rate.

Californians are also more likely to say they prefer shopping for groceries in-store (65%)—as opposed to online—than the average American (55%).

It’s a good reminder that grocery stores aren’t places for sustenance-driven transactions, but for entertainment, community, and discovery.

Along those lines: Californians are also more likely to say they buy new brands when grocery shopping (24% “every time” or “most of the time”) than the overall U.S. consumer (20%).

Balance is key, but as it becomes increasingly easy to do the “boring” stock-up shopping online, enhancing the in-store experience—with on-trend food service, events, and collaborations—can further build the customer relationship, and even command more visits and greater spending.

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15 MINUTES WITH…

V i r Satya n : SV P of S u p p li e r Suc c es s, R a nge M e

By Grace Becker Vir Satyan is the Senior Vice President of Supplier Success for RangeMe, the leading online product discovery, sourcing, and purchasing platform. RangeMe helps retailer buyers efficiently discover, connect with, and purchase innovative emerging products while simultaneously empowering suppliers to grow their business. Having been with the company since the beginning, Vir helps emerging brands and Consumer Packaged Goods companies get discovered by leading retailers, distributors, and good service operators both in the United States and internationally. To date, the platform has worked with over 15,000 retail buyers and 200,000 suppliers to help with the discovery of more than 800,000 products.

CGA partnered with RangeMe this year to recruit up-and-coming brands to compete in the Emerging Brands Pitch contest at the 2024 CGA Strategic Conference. The following excerpt is from a conversation with Vir about his work with emerging brands for the CGA Radio Podcast. Stay tuned for season two to listen to the full conversation.

The following conversation was edited for length and clarity.

Grace: I would love to hear about your background and your role currently working with emerging brands.

Vir: I was one of the first employees to join RangeMe This is going back almost nine and a half years ago now in Sydney, Australia, which is fun fact. That’s where RangeMe started. The name RangeMe comes from Australia and the UK saying “range reviews”

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instead of “category reviews.” You would go to a retailer and say “when’s your next coffee range review?” and then they would tell you the dates, which, when we moved into the U.S. market nine years ago, made no sense to anybody because [here] they’re called category reviews. But fortunately, that hasn’t hindered us being able to grow here and make the U.S. one of our primary markets and our biggest market now. The whole concept behind RangeMe was always to help emerging brands get a level playing field and be able to get discovered as quickly and efficiently as possible. And on the flip side, help retailers who are looking for this new innovation be able to find those new brands in a much more streamlined manner.

How did you get into this work with emerging brands?

I really stumbled upon RangeMe from all my travels around the world. I was born in India, I went to a British boarding school in the South of India, and then went to college

at NC State in Raleigh, North Carolina, which is totally different. I had moved to Australia with my wife, and I was looking for jobs and I found this job posting that was looking for someone to help with sales and marketing and customer service. I knew it was a startup because they wanted one person to do everything. And that ended up being RangeMe. So very quickly, we realized that we were onto something in the Australian market, and we had to move into the U.S. and we did that within six months of launching. And really because it was born from a need to help emerging brands level the playing field. Our focus has always and will always be on those emerging brands, but of course we welcome brands of any size to create a profile, but we’re truly the biggest fit for those up-and-coming new exciting emerging brands that are looking to grow their retail business.

How have platforms like RangeMe transformed the buying process for both brands and retailers?

I think part of the challenge has always been that it was a much more antiquated process where it really was who you know, and you had to have a broker involved. If you were not a large CPG and you didn’t have a big broker, then good luck getting discovered.

Of course, you always had the flagship trade shows where you could exhibit and you could get business coming to you. What I feel digital tools like RangeMe have done is not replace any of that, but allow brands that don’t have hundreds of thousands of dollars a year to market to also be able to get discovered and get that exposure that they

15 MINUTES WITH...

otherwise typically wouldn’t have. I like to think of RangeMe like LinkedIn, where when LinkedIn first came out, recruiters were panicking everywhere going, “Oh my God, what are we going to do?” But Linkedin is a recruiter’s best friend today and they use it as part of their overall process and it makes it more efficient and more streamlined.

That’s what we do as well. We still encourage brands to go to physical shows because you can never replicate that in-person. But while you’re doing all of that, also have a good online presence. In a way it’s omnichannel for you as a brand.

Who typically from a retail company will use RangeMe? It was built for category managers and buyers to be able to use RangeMe to find new products. And that could be everyone from a junior category manager all the way up to the chief merchant. And we want collaboration across the team. One of the tools you have as a buyer is the ability to share the profile with a colleague. So while you’re browsing through and discovering, if you do see a brand that you’re interested in, you can share it with a colleague of yours. It could also be across a different category. And that’s another reason why the tool works so well because we know the category managers change all the time. And I hear that from emerging brands all the time where they’ve spent one year developing a relationship with their snacks buyer and now that buyer’s in charge of frozen food and they’re starting from square one almost. On the RangeMe profile, let’s say you’re a regional grocer and you and I both have profiles you’re buying for snacks.

You’ve got several years of conversations on RangeMe. If you change categories, the new buyer takes over your profile and can look at that entire history of conversation, which in the old, old school way offline would practically be lost, right?

Part of your role is to help support women and minority owned businesses who only receive 3% or less of venture capital funding.

Can you speak to how RangeMe helps close this gap and level the playing field?

I mean, today, funding is such a critical issue for emerging brands. But really as you pointed out with the less than 3%, it always has been. I will say that retailers have made big commitments and promises and they’re trying their best to stay ahead of that by finding minority businesses to work with. One of the biggest challenges we hear from buyers is what are the different certifications that even go into a minority business? And even brands that I talk to know some, but there’s dozens of minority certifications, some state, some national.

What we’ve been able to do on RangeMe is create a collection called Supplier Diversity where minority certified businesses, whether they’re women owned, LGBTQIA+ owned, veteran owned, or ethnic minority owned, all of them are housed in one collection.

And so, a buyer, instead of having to think of all the certifications, can click on that and they’re taken directly to those brands.

It makes it much easier for them to discover it. We highlight them in that way too. And therefore, we’re trying to give them an easier chance of being discovered.

What is unique about the perspective of minority owned brands and what they bring to the table, maybe how they view the customer differently?

It’s a great question and I feel like the customer at the forefront is so critical.

What minority owned brands in general do is they speak to that customer that for many years was forgotten about. When you looked at traditional CPGs and some of the products that came out, they were very one-dimensional in that sense. They didn’t have a lot of cultural nuance. They didn’t have flavors that cross culture and are representative of other ethnic minorities.

What minority owned brands do is they understand their customer really well and they bring out products that speak to that customer. And that customer is now, and slowly will become, the predominant customer in the country anyway in purchasing. So really what they’re doing is saying there’s this whole underserved market of people that are hungry for products, let’s create something that they’re familiar with

and grew up with and therefore they will be more likely to buy. And you know, part of it is flavor, part of it is new types of products in general. You’re starting to see that at Expo West earlier this year, there was a ton of innovation in the international or the cross-cultural flavor expansion where you had traditional items, but they had flavors that resonated with other cultures and other ethnic groups. And therefore, you’re more likely to relate to and call out to a different kind of customer.

What are the challenges facing emerging brands today? I’m curious about the challenge of scaling up to satisfy a test run in a retailer.

It’s one of my favorite questions that I get from brands as well because apart from the obvious funding issue, which is really affecting most brands today, especially the emerging ones, the other big challenge that ties directly to the funding issue is the ability to do business with some of the larger retailers who often require you to make a much heavier investment before you see that return on dollar. And so, if you were to go into a national chain that needs you to give them three times as much product as you currently have, but only pay you net 120, then that’s going to be a real challenge for you when cash is already so tight. I think something that the industry can do to help these emerging brands is make it easier, lower the barriers to entry, don’t have as strict a slotting fee as you typically would for the larger CPGS, Allow them the ability to get that foot in the door so that they can get that test run and prove out that they are worth being on that store shelf. And in most cases, they are. They just need the ability to not have to pay 100K before they get onto the shelf. That’s where regional grocers and independents play such a big role. They don’t typically have those barriers. They can help with sales velocity. They can help with some of that cash flow ticking while some of the larger chains are waiting for you to be able to scale up to be able to do the business with them. ■

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Support at every level Consumers expect the best from their locally owned, independent supermarket and we at C&S fully understand and deliver on this expectation.

By developing the necessary programs and offering the best possible product assortments, we help your store be the destination of choice in your neighborhood.

Contact us today to learn how we can help make this your best year ever!

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

SOMETHING NEW FOR 2025 — GET READY! —

CGA STRATEGIC CONFERENCE September 21 – 23, 2025 Stay tuned for the announcement. cgastrategicconference.com

Jessica Jimenez

recipient of the 2024–25 CGA Educational Foundation $10,000 Legends of the Industry Scholarship

A Love of Learning Fuels Jessica Jimenez’s Growth in Grocery Industry

By Dorsey Griffith It’s not often that a part-time, after-school bagger job at a grocery store inspires a lifelong love for the industry. But that’s exactly what happened with Jessica Jimenez, assistant store manager at Gelson’s Markets in Silverlake, Los Angeles.

It didn’t hurt that her mother, Cheryl, has worked for Gelson’s for nearly 35 years. By now, working for Gelson’s is more like a family tradition.

For her dedication and drive to keep learning and growing in her profession, Jessica is this year’s recipient of the California Grocers Association Education Foundation’s (CGAEF) Legends of the Industry Scholarship, a $10,000 award for college tuition.

Jessica’s immediate plan is to achieve two additional associates degrees—one in business administration with an emphasis on accounting and one in economics, both of which she intends to complete in 2025.

A College Career Interrupted Jessica’s long path to college began when she was an 18-yearold bagger at Gelson’s in Northridge. She began at College of the Canyons, a community college in Santa Clarita, studying psychology. That ended when she became pregnant with her first child, Colin, and she decided to focus instead on raising him.

After Colin was born, Jessica moved to Reno, Nevada, and took a job as a supervisor for Levy Restaurants. She ran bar and other concessions during major stadium events like rodeos and baseball games. She excelled in the role, which grew in responsibilities over time, and stayed with the company for nine years. During that time, she had a second child, Mason, who is now 11.

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Just before the COVID-19 pandemic struck and lockdowns shuttered most businesses in 2020, Jessica, a single parent, moved back to Los Angeles, where she found her way back to her mother, father, and sisters—and to Gelson’s.

Jessica and her kids live with her parents in Burbank.

“It was scary, because I didn’t know exactly what I was going to do,” she said. “I took a job as a clerk at Gelson’s.

They really needed people. Six months into it, they made me an assistant store manager. Everything was rough, but I stayed with it.”

Adam Salgado, Chief Marketing Officer at Heritage Grocers Group, is Vice Chair of the CGA Educational Foundation, and was among those Trustees who reviewed the Legends of the Industry finalists.

“I was struck by how driven Jessica is,” he said. “She has faced her share of adversity and challenges, but she is a fighter and didn’t give up. I am also a big fan of success stories, and there is definitely a ‘success story’ in the making with Jessica.”

In 2022, Jessica, with encouragement from Gelson’s management, took advantage of a program offered by CGAEF, which reimburses employees for their tuition and book expenses for college courses that are part of the Retail Management Certificate Program.

With that under her belt, she continued her college career by completing two additional semesters at Cerritos College.

This year, she completed her first of three associate’s degrees in business management.

“Classes were 100% online, and there were a lot of long days and long nights,” she said. “I work 6 a.m. to 4:30 p.m. and do my schoolwork after work and on my days off, but I juggle that with football practice for my older son and soccer practice for my younger son.”

“ Ultimately, my pursuit of a business degree is not merely about acquiring a credential but rather about embarking on a transformative journey of personal and professional growth.”

Fortunately, she said, her parents provide a great support system, which lets her focus on her ever-expanding management duties with Gelson’s and being a good role model for her boys.

Standing behind her growth as a manager are her mother, Cheryl, now a corporate employee on the merchandising team who taught her how to work hard, and her store director, Jose Salmeron.

Growing with Gelson’s

“He taught me everything I know—one of the few I ever had who got me prepared for the next step versus throwing me into the next step,” she said.

Today, Jessica oversees store operations — everything from payroll to managing customer complaints and staff scheduling to store displays. What’s the hardest part of her job? “Keeping customers happy,” she said. “We are all about customer satisfaction and making sure everyone leaves happier than when they came in.”

That can be difficult, she acknowledged, with occasional product shortages that can inconvenience loyal customers.

When a customer isn’t satisfied, Jessica has a solution. “There is always a way to make the customer happy, whether it’s a $5 gift card or a replacement item. I’ve learned a lot of people skills, how to read people’s emotions and counteract them with kindness.

People want you to listen. As long as you listen, empathize with them, and offer a solution if there is one, they are happy.”

Next Steps Beyond getting her kids off to school, prepping their sports uniforms, discussing college options with Colin and figuring out what to pick up for dinner when it’s her turn to feed the multigenerational family, Jessica is looking forward to continuing her education so she can be an even more effective leader for her company and her team of employees.

She’s eager to learn more about marketing—both through social media and in-store promotions—and hopes to better understand supply chain management, its role in the grocery industry, and her own professional development.

Jessica also has had to adapt to new corporate management; Gelson’s was purchased by Pan Pacific International Holdings, a Japanese company, in 2021, and with the new ownership came new store operations.

And while a bachelor’s degree in accounting is her ultimate educational goal, she’s eager to take on the WAFC’s Food Industry Management program at USC to learn from the industry’s top educational professionals.

“It will take adjusting and tailoring operations to specific needs,” she said. “We have a lot of longtime employees who want to do what they have always done. In the process, I’ve learned to always be open to change.”

“I love to learn,” said Jessica. “The farther I go, the more I can branch out into all the aspects of the business.”

Over time, Jessica has grown to love coming to work each day, embracing challenges and appreciating that no single day is like another.

“I’ve moved up in the business quickly because I am an employee who will do it,” she said. “I want to know what to do, why we need to do it, and all the parts that go into doing it. It’s well-rounded. I get to do a little bit of everything, so I never get bored. I don’t like being stagnant.”

Assessing her potential, Salgado points to Jessica’s last sentence in her application essay: “Ultimately, my pursuit of a business degree is not merely about acquiring a credential but rather about embarking on a transformative journey of personal and professional growth.”

Said Salgado: “I have a feeling this is not the last we will hear about Jessica. I look forward to watching from the sidelines as she continues growing in retail.” ■

CAL I FORNIA G RO CER | 37

BY

CRV

RM

S

connX

RECYCLE WITH PURPOSE.

Heather Dougherty (216) 200-9439

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

BY G RACE BECK ER

Summerween Jack-o’-lanterns in June? Halloween treats and decor hit shelves earlier than ever this year thanks to a new “Summerween” trend. The holiday brings in big money for retailers, hence the early push. According to the National Confectioners Association, Halloween drove $6.4 billion in candy sales alone last year. That explains Home Depot debuting its 12-foot skeletons in April, and Michaels dropping its first halloween decor collection in June. iStock

Your friendly neighborhood barista might soon be...a robot? Botbar Coffee is the home of intelligent robotic baristas who serve up your morning cup. The Nevada-born company aims to end repetitive manual labor and bring efficiency to traditional businesses through cutting-edge technology. Robotic baristas are calibrated to serve customers with speed, precision, and consistent quality. Botbar Coffee locations have opened in California cities Oakland, Sacramento, and Pleasanton, and at Times Square in New York.

Photo: https://botbarcoffee.com/about/

Cheez-It Has Entered the Villa The latest season of reality show Love Island USA took the country by storm—quickly becoming the top show of the summer. Early in the season when asked about his “long-term goals” one of the show’s stars, Kordell Beckham (brother of Football player Odell Beckham Jr.), shared his dream of scoring a sponsorship with his favorite snack, Cheez-It. After winning the season and emerging from the villa a celebrity, Cheez-It and Kordell made the collaboration happen with his own custom flavor. The Kordeezy Cheezy Couple box includes Beckham’s favorite combo, White Cheddar and Hot & Spicy Cheez-It. Naturally, the custom snack boxes sold out quickly.

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Cheez-It

Gen Z Gifting

OUTSIDE THE BOX

The holidays are around the corner which means gifting season is almost here. This year, Gen Z shoppers are more likely to buy holiday presents from social media platforms compared to other age groups, according to an EMarketer report that surveyed 2,000 U.S. consumers. It found that 42% of Gen Z shoppers said they’re likely to buy gifts through social media, compared to 26% of iStock millennials, 15% of Gen Xers and 6% of baby boomers. 57% of respondents said they would buy holiday gifts via Instagram, followed

by Facebook at 56%, then TikTok at 43% and YouTube at 38%. EMarketer projects that U.S. social media commerce sales will reach $82.82 billion this year and make up 6.6% of total e-commerce sales.

Music Frame After much success with the sleek Frame TV that turns into a digital piece of art when not in use, Samsung has released the Music Frame. This 13 inch-by-13 inch digital photo frame doubles as a wireless Bluetooth speaker and allows users to display their own photos. It boasts six Dolby Atmos speakers to deliver big sound and has ability to be mounted on the wall. You can also sync audio with your TV for inconspicuous surround sound. The Music Frame comes in at a hefty price tag of $400.

The US Open’s signature cocktail surpassed $10 million in sales at this year’s New York tennis grand slam. The Honey Deuce— a concoction of Grey Goose vodka, lemonade, and raspberry liqueur topped with melon balls and complete with a commemorative cup—has become a beacon of the tournament itself, thanks to its online virality and this year’s tennis craze. The drink came to be in 2007 during Grey Goose’s second year sponsoring the US Open (the partnership was extended in 2023). It has increased in price four times in the past five years, now clocking in at $23. This hasn’t stopped sales, though, with more than 2.2 million Honey Deuces sold at the US Open since its creation.

Elections and AI

Amid election season, Google released new protections for its generative AI products to mitigate misinformation and online abuse.

Google announced it would extend its policies announced last December to more of its AI products including Search AI Overviews, YouTube AI-generated summaries for Live Chat, Gems, and image generation in Gemini. New restrictions include safeguarding platforms from abuse, helping people identify AI-generated content, surfacing high-quality information to voters, and partnering with Defending Digital Campaigns (DDC) to combat cybersecurity risks.

iStock

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CGA NEWS

CGA STORE LEADER TRAINING SEMINARS This summer, grocery store leaders from across the state sharpened their leadership skills with CGA and the CGA Educational Foundation at our Store Leader Training Seminars in Costa Mesa and Concord, California.

These one-day seminars are customized for store-level supervisors interested in growing their management skills and developing their careers. The agenda offered a blend of inspiring keynote presentations and hands-on, retail-specific training that provided the inspiration, practical tips, and relevant examples to develop leadership acumen and techniques to succeed with today’s employees.

Keynote speaker Steve Black enlightened store leaders with his signature “5 Rules” to unlock your team’s potential and transform culture in the workplace. Special guest Dave Davlin shared his ingredients for developing a purpose-driven mentality for work and life. ■

CGA HOSTS LEADERSHIP SUMMIT FOR GROCERY EXECUTIVES In June, CGA hosted a leadership summit in Carmel Valley to explore big picture topics for top California grocery and food industry executives.

The summit featured presenters and thought leaders from California’s Capitol and business communities to explore the state’s shifting political, social, and business dynamics. Our retreat gave executives much needed “white space” to allow time for planning and reflection. ■

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CGA NEW MEMBERS

NEW MEMBERS CGA welcomes the following members:

BriarPatch Food Co-Op 290 Sierra College Dr Grass Valley, CA 95945 Contact: Chris Maher, Chief Executive Officer Phone: (530) 272-5333 Website: briarpatch.coop

Cart Retrieval 9668 Milliken Ave #104-389 Rancho Cucamonga, CA 91730-6136 Contact: Jesse Astorga, Chief Executive Officer E-mail: jesse@cartpickup.com Phone: (702) 468-4401 Website: cartpickup.com

Columbus Consulting International LLC 4200 Regent St Ste 200 Columbus, OH 43219-6229 Contact: Craig Rosenblum, Principal E-mail: crosenblum@columbus consulting.com Phone: (214) 695-4914 Website: columbusconsulting.com

Core-Mark LLC 1500 Solana Blvd Ste 3200 Westlake, TX 76262 Contact: Joseph Kaniyamkandathil, President, Operating Company E-mail: joseph.kaniyamkandathil@ pfgc.com Website: core-mark.com

Envipco 99 Great Hill Rd Naugatuck, CT 06770-2227 Contact: Tina Bergers, President, Container Collection Services E-mail: tina.bergers@envipco.com Phone: (203) 720-4059 Website: envipco.com

Galvan Capital 2901 Via Fortuna Austin, TX 78746-7565 Contact: Pete Herzog, Managing Principal E-mail: pherzog@galvancap.com Phone: (512) 792-2202 Website: galvancap.com

Luca 3145 Turk Blvd San Francisco, CA 94118-4179 Contact: Tanvi Surti, Chief Executive Officer E-mail: tanvi@askluca.com Phone: (206) 658-7508 Website: askluca.com

Recyclewise PO Box 1607 Riverside, CA 92502-1607 Contact: Devin Watson, Office Manager E-mail: dwatson@recyclewise.com Phone: (951) 781-8810 Website: recyclewise.com

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The Independent Operators Symposium is a great way to refresh, refuel and recharge after the busy holiday seasons at retail. It is great to catch up with industry

January 5 – 12, 2025 Fairmont Kea Lani | Wailea, HI (Maui)

partner... to share experiences and add

Recharge, Refocus, Reignite

the human element, which is always the best approach.

A UNIQUE OPPORTUNITY TO PAUSE, REFLECT, AND FUEL YOUR VISION FOR THE YEAR AHEAD Discover a retreat where you can reconnect with yourself, recharge your creativity, and refocus on the future success of your business.

Step away from the everyday and immerse yourself in an experience designed to inspire. The 2025 Independent Operators Symposium offers you more than just a break — it’s an opportunity to reset your priorities and unlock new possibilities for personal and professional growth.

Surrounded by like-minded peers and trusted business partners, this retreat creates a space where you can openly share challenges, explore new ideas, and gain fresh perspectives that drive success. With a blend of thought-provoking speakers, practical discussions, and a serene environment, this is your chance to recharge your energy and reignite your vision for the future.

Join us for a week of inspiration, collaboration, and the rejuvenation you’ve been waiting for.

Retailers: $7,500 | Retail Partners: $9,000

Martin Guerrero FreshKo Produce

FEATURED SPEAKER

Reimagining Marketing & Sales Johnny Earle Founder, Johnny Cupcakes

Johnny touches on why one handwritten note, personalized gift, or a community event could be more powerful than a cold email campaign to strangers. Johnny shares examples of how adding a dash of imagination and extra detail can drive a chunkier return on investment when it comes to marketing and sales, like when he rented a real coffin and hearse from a creepy guy on Craigslist to get delivered in for the nighttime release of his limited edition, VHS-packaged, Halloween movie themed T-shirts. This $220 vehicle rental attracted lifetime memories, created brand ambassadors, and garnered millions in free marketing as channel 4 news dedicated an entire segment to this release.

All registrations are double occupancy and include accommodations for seven nights, education sessions, four morning breakfasts and two evening receptions.

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

Visit cagrocers.com/symposium/ Registration deadline is December 9, 2024.

@ B LAN CDEB LEUUSA W W W . B LAN CDEB LEUUS A . COM

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CAL I FORNIA G RO CER | 47

MOMMY BLOGGER

The Politics of Family Life K I M B ER LY R A E M I L L ER WR IT E R

How cost-of-living shapes our choices At a recent BBQ, I found myself seated with new friends—people whose political alliances and financial situations were unknown to me. As conversations flowed, the topic inevitably turned to the upcoming elections. Politics, a subject I usually steer clear of, quickly became the focus. I’ve always believed that most people are set in their political ways, and little can be done to change their stance. But this time, I was surprised by what I heard. Many at the table talked about crossing their political party lines in the upcoming election, driven almost entirely by the escalating cost of living and its impact on their families.

I get it. It’s easy to stick to your political convictions when the stakes feel low, when your decisions only affect you. It’s easy to judge those who don’t share your beliefs.

But as I grow older, I see more clearly that we’re all just trying to do the best we can. Every trip to the grocery store is a stark reminder of how political decisions directly impact our household budget.

When I see prices climbing on essentials like milk, bread, and fresh produce, I can’t help but reflect on the policies that influence these costs. In fact, according to the U.S. Bureau of Labor Statistics, food

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

prices rose by 6.7% from 2022 to 2023, with specific staples like eggs and dairy seeing even sharper increases. These inflationary pressures are not just numbers on a page— they are tangible realities that families like mine face daily.

My husband and I both juggle multiple jobs to provide for our family. We each have a standard, full-time job in industries that offer stability and the benefits we need to ensure everyone’s health and well-being.

In addition, we both take on various side gigs that help cover the myriad

of expenses that come with raising kids.

However, as the world around us seems to be in financial free-fall, we’ve found ourselves losing gigs that we depend on to meet our family’s financial needs, even as the need for additional income grows. The rising cost of living has forced me to become more politically aware and engaged. I now find myself researching candidates’ stances on issues like inflation, food subsidies, and economic policies that directly affect my ability to provide for my family. When election time comes around, I’m not just voting for abstract ideals; I’m voting for the future of my children’s dinner plates.

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A 2023 survey by the Pew Research Center found that 82% of Americans cited the economy as a “very important” issue in deciding who to vote for, a significant increase from previous election cycles.

As parents, we have a responsibility not only to provide for our children today but also to shape the future they will inherit— sometimes, those values don’t feel like an easy fit. ■

PET SPECIALTY

SUPPLIER PERSPECTIVES

E-commerce: strengthening loyalty within your pet business by repetition

In the battle for consumer dollars, the convenience of subscription services in pet is an important opportunity for retailers.

By Joe Toscano, Vice President, Trade & Industry Development at Purina Long gone are the days when the term “subscription” was primarily used to describe how you received this very magazine. The rise of subscription services has revolutionized the way retailers interact with their customers. As the hustle-and-bustle of daily lives seems to be amplified – especially at back to school time!

– consumers are looking for ways to simplify. By offering a recurring delivery of products or services, retailers can build a loyal customer base and drive repeat business.

According to a report by McKinsey, the subscription e-commerce market has grown by more than 100% per year over the past five years, with the largest retailers generating more than $2.6 billion in sales in 2016—up from $57 million in 2011. And the biggest category of this large market? Pet. More than 50% of households purchase pet food and litter online, and the consistency and predictability in product use for many of our pets makes the opportunity for repeat purchase clear. For many consumers considering subscription purchase options, pet is often a first foray.

The benefits of an e-commerce product that includes subscription is not just about the dollars.

Subscription services for retailers offer the ability to predict and manage inventory levels, providing a rare level of assurance when forecasting demand and reducing risk of overstocking or running out of inventory.

And the pros extend to emotional benefits as well. Your e-commerce subscription service can help you build stronger relationships with your consumers. By providing a regular, reliable delivery of products or services, you can stay top-of-mind and create a sense of loyalty, increasing customer lifetime value and providing additional opportunities for repeat business.

All of the above are key reasons why subscription should be a part of your overall omnichannel strategy. But subscription services within the pet industry offer a more unique nuance.

Switching a pet’s food isn’t as simple as a different brand of 2% milk when stock is running low. In order to preserve the elusive consumer loyalty that subscription services foster, as a

retailer, you must deliver: literally and figuratively. Yes, you must ship to their door, but you almost need to fulfill the promise of consistency your consumer is expecting. This was particularly important as the pandemic challenged every aspect of the supply chain.

Retailers that prioritized subscribers and maintained consistent delivery won the dollars.

Have you added subscription options to your e-commerce plans, especially in repeat purchase categories like pet?

The power of subscription services to drive repeat customers for retailers is clear: building a loyal customer base and driving long-term growth. If you are unsure of where to start, or simply have questions or need assistance, reach out to your Purina sales rep.

Purina trademarks are owned by Société des Produits Nestlé S.A.

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