California Grocer, Issue 4, 2023

MEET THE CHAIR pag e 24

What’s New in Retail pag e 38 2023, ISSUE 4

CALIFORNIA GROCERS ASSOCIATION

Robots at the Ready Exploring innovative technologies powering the future of retailing page 28

Space for Lease Opportunities abound in California’s urban core page 16

FORECAST

2024

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.

SOC_AVP_CGA_Recipe_for_Change_Full_Page_Ad_3_SincerelyLook_7.375x10_Issue4.indd 1

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

11/17/23 3:31 PM

PEPSi PROUDLY THANKS OUTGOiNG CHAiR, DENNiS DARLiNG & CONGRATULATES CHAiR, LYNN MELiLLO. PEPSI, PEPSI-COLA, the Pepsi Globe, and the Pepsi Pulse Design are trademarks of PepsiCo, Inc.

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.

Tyler Kidd Mar-Val Food Stores, Inc.

Tim Nowell Procter & Gamble

Greg Sheldon Anheuser-Busch InBev

Gary Bickmore FMS Solutions, Inc.

Nancy Krystal Jelly Belly Candy Co.

Bethany Pautsch Tyson Foods, Inc.

Elaina Budge Costco Wholesale

Brandon Lombardi Sprouts Farmers Market

Eric Pearlman C&S Wholesale Grocers

Donna Simpson Certified Federal Credit Union

Pamela Burke Grocery Outlet, Inc.

Bertha Luna Stater Bros. Markets

Brian Pohl Classic Wines of California

Rocky Campbell C & K Market, Inc.

Tim Mahoney Gelson’s Markets

Jeremy Runge GoPuff

Chris Dehoff Dehoff’s Key Market

Brendan McAbee Bimbo Bakeries USA

JB Ryan Molson Coors Beverage Co.

Jon Giannini Nutricion Fundamental, Inc.

Kelli McGannon King Soopers

Adam Salgado Heritage Grocers Group

Sergio Gonzalez Northgate Gonzalez Markets

JR Medina Super A Foods, Inc.

Nick Sass The Hershey Company

Amber Hammond KeHE Distributors, LLC

Tiffany Menyhart The Kraft Heinz Company

Casey Scharetg E. & J. Gallo Winery

Mary Kasper 99 Cents Only Stores

Michael Molinar PAQ Inc.

Jeff Schmiege Unilever

Saj Khan Nugget Markets

Andrew Nodes Instacart

Jeff Severns PepsiCo Beverages N. Am.

President/CEO Ronald Fong

Director CGA Educational Foundation Brianne Page

Controller Ion Bazgan

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 Director Local Government Relations Tim James

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

Director Administration & Human Resources Jennifer Gold Senior Manager Marketing & Membership Sunny Porter Communications Specialist Grace Becker Business Development Manager Bailey Dayen CGA Educational Foundation Administration & Programs Coordinator Miriam Ellis

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

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

Diane Snyder Whole Foods Market Chang So Hollister Super, Inc. Josh Southerland Reyes Coca-Cola Bottling LLC Marc Swisher Mondelēz International Inc. Brad Thomas Kimberly-Clark Corporation Stephanie Wu The Save Mart Companies Kevin Young Young’s Payless Market IGA

For association members, subscription is included in membership dues.

Subscription rate for non-members is $150. © 2023 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com Assistant Editor Grace Becker gbecker@cagrocers.com For advertising information contact: Bailey Dayen bdayen@cagrocers.com

CONTENTS | ISSUE 4

FEATURES COLUMNS

16 Reimagining the Urban Grocery Store

California’s urban core was hard hit by the pandemic, but creative energy still lies untapped in Golden State cities.

24 Lynn Melillo to Lead CGA as Board Chair

After more than 40 years in the grocery industry, Lynn Melillo, VP of Asset Management for the Bristol Farms, is ready to make her mark on the California’s grocery community.

President’s Message Ending 2023 with a Bang .. . . . . . . . . . . . . .

5

Chair’s Message Closing the Chapter on My Year as Chair. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

6

Viewpoint Another Trip Around the Sun . . . . . . . . . .

8

Inside the Beltway Grocery Shoppers Exhibit Cautious Optimism at Year’s End.. . . . . . . . . . . . . . . . 10 Washington Report Economic Challenges Bring Out the Resilience of Independent Grocers. . . . . . . 12 Capitol Insider A California Political Scene in Transition . . . . . . . . . . . . . . . . . . . . . . . . . . 15 Wellness 2024 Wellness Forecast. . . . . . . . . . . . . . . . . 44

28

Mommy Blogger Kitchen Gadgets and Grocery Adventures.. . . . . . . . . . . . . . . . . . . 56

The Tech-Powered Store of the Future

From micro-fulfillment to robotic shelf-scanning, meet the new technologies ready to change the grocery game.

DEPARTMENTS CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 48

34

CGA New Members. . . . . . . . . . . . . . . . . . . 49 Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . 50

Grocers Hold Ground in California’s Evolving Political Game

It was a challenging year for business groups at the Capitol, will the forecast hold more of the same for 2024?

38 What’s New in Retail

Gelson’s unveils a new growth strategy with its EV partnership.

CAL I FORNIA G RO CER | 3

YOUR RETAIL SOLUTIONS Full Suite of Services

CRV SERVICES

GOVERNMENT COMPLIANCE

SHOPPING CARTS

FOOD MARKETING

818.817.6712 www.retailsolutionshq.com

COUPONS

PRESIDENT ’S MESSAGE

Ending 2023 With a Bang

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

Some years allow us a moment of stillness around the holidays to reflect on the preceding months.

And while it is certainly important to practice gratitude for the year’s successes, we instead close out 2023 with energy and momentum that will carry us far into the year ahead.

This issue of California Grocer aims to take hold of this energy and project a forecast onto the next year for our industry. You’re in for a treat as you pour through the pages that follow as our writers and columnists unfurl cutting-edge technology, experimental retail concepts, and upcoming regulatory challenges that will continue to shape the industry over the next year.

Before looking ahead, I’d like to acknowledge our industry for its investment in the Association this year. Together, we put on another successful lineup of events and offered new occasions for the industry to come together. Among my favorites included our signature event, the CGA Strategic

iStock

Conference in Palm Springs, the return of our Store Leader Trainings in both the North and South, and the first-ever Food Industry Economic Forecast. In addition to engaging in industry events, our members were generous in contributing to our Political Action Campaign, GroPAC, which puts us in an advantageous position approaching an election year.

Already, the Association has been building a foundation with Assembly Speaker Rivas and members of his Retail Theft Select Committee through a series of store tours.

We’ve also launched a new ad hoc Retail Theft Committee for members to collaborate on potential policy solutions. We are excited to continue leading the charge on this issue on behalf of members in 2024.

During the last quarter of 2023, we were thrilled to bring on board Daniel Conway as Vice President of Government Relations to lead the Association’s lobbying efforts.

Daniel has already infused the department with enthusiasm and expertise in state and local government, and we are so pleased to have him. In November Daniel joined us along with our Government Relations Committee and retail leaders just in time for our In-person GR Day to review our year at the Capitol and forecast next year’s political environment.

For more political temperature-taking, dig into CGA’s legislative forecast in Louie Brown’s Capitol Insider Column and our feature article from Tim Townsend.

Retail theft, of course, tops this list. We close out the year with new energy towards finding a solution for retail theft from lawmakers and the public, and CGA has been hard at work to carve out our industry’s story and help drive the conversation.

In 2024 we also look forward to leadership from our new Chair Lynn Melillo, who serves as Vice President of Asset Management for Bristol Farms. As you will read in the following pages, Lynn, who’s been a part of this industry since she was a teenager, brings with her years of experience and intimate knowledge of the industry’s most pressing priorities from Enterprise Risk Protection to compliance. I encourage you to get to know Lynn in her feature story.

At every turn, CGA is appreciative of your support and partnership. Thank you for a fantastic 2023, and I look forward to what our industry will achieve together next year. ■

CAL I FORNIA G RO CER | 5

CHAIR’S MESSAGE

Closing the Chapter on My Year as Chair DEN N I S DA R L I N G FOODS E TC.

As I end my year as Chair of the California Grocers Association Board...

I’m reflecting on the mission of CGA, how proud I am to be part of this organization, and what fun I’ve had during the past year.

It has been an honor to serve as Board Chair and especially gratifying to work with the wonderful CGA staff. CGA is a relationshipdriven organization, and I’ve been fortunate to form lifelong friendships and meet many wonderful people that are the heart and soul of our industry.

In my time on the CGA Board and at the helm as Chair, I’ve seen the team lead California’s grocery community through some of the most trying times in our industry’s history. We’ve experienced an explosion of governmental regulation, a once in a century pandemic, labor shortages, and the worst inflation in 50 years. Through every crisis, CGA has been there to lead, educate, and advocate on our industry’s behalf for grocers of all sizes. We’ve not only survived, but thrived.

With CGA’s continued leadership, our industry has a bright future.

Grocers know that operating in California is challenging, and advocating from the business perspective is no easy task. This year was especially difficult for grocers, with several bills introduced directly targeting our industry. However, CGA worked tirelessly to modify or kill the

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

threats to our livelihood. It is unlikely that the industry will win them all in this environment, but Ron Fong and his staff are strategic and relentless in fighting for our interests. Going forward, one of the tools that CGA needs help building upon to bolster the industry is a strong Political Action Committee (PAC). I’m very proud that our members almost doubled their historic yearly contribution to CGA’s GroPAC in 2023, which will help strengthen our industry’s position in the new year.

As I look back on my year as Chair, I am grateful for the experiences that brought me even closer to the industry. For example, I was lucky enough to spend time with the CGA Educational Foundation and visit industry students face-to-face. Two of my favorite experiences this year were presenting to up-and-coming industry leaders at the University of Southern California Marshall School of Business, and to students of the Cal Poly San Luis Obispo AgriBusiness program. It was so exciting and inspiring to see the enthusiasm of these young people just starting out in our industry. Believe me, we are in good hands!

Another highlight that comes to mind was this year’s Strategic Conference in Palm Springs. This is CGA’s signature event,

and 2023 was a huge success. The Strategic Conference is a unique blend of education, vendor meetings, and social networking.

We heard from wonderful speakers including One Funny Mother, Dena Blizzard, who did a great job teaching Superior Grocer’s Rich Wardwell how to dance onstage, but totally failed with me.

If you didn’t attend the conference this year, don’t miss it next year. It is a fun and educational event that allows you to connect even more deeply with the industry.

One of CGA’s great strengths is the participation of its Board of Directors.

It has been an honor to serve alongside so many dedicated, knowledgeable leaders that have selflessly contributed to our industry. Looking ahead, I’m excited to pass the baton to Lynn Melillo from Bristol Farms as incoming Chair of the Association. Lynn brings such wonderful passion and commitment to the Board and a deep understanding of both our industry and CGA. I hope you will take advantage of the opportunity to get to know Lynn in the pages that follow.

In looking back and reflecting on my experience as Chair, I see that there are great things ahead for CGA and California’s grocery industry. ■

Board Chair

VIEWPOINT

Another Trip Around The Sun

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

What’s changed, and what hasn’t, in 40 years of writing about the grocery industry As you read this, I will be observing two events almost simultaneously. One will be the launch of my 70th trip around the sun. And the other will be the beginning of my 40th year writing about the food retailing industry.

that job by looking in the classified ads in the New York Times. (Younger readers will have no idea what classified ads are. Google it.)

Oddly enough, I’ve been giving more thought lately to the latter. (It may well be that I am in denial about the whole age thing.)

And yet, here I am.

When I got my first job writing about the supermarket business, it was 1984, and the magazine I went to work for was called, appropriately enough, SUPERMARKET BUSINESS. (Alas, it no longer exists.)

When I took that job, to be honest, it was out of necessity, not desire—I’d lost my job working for a small PR agency on the same day that my wife and I closed on a house, and I needed work. To paint you a picture of how long ago this was, and how different a world we lived in, I will tell you that I found

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

I didn’t think I’d write about the supermarket business for 40 weeks, much less 40 years.

I vividly remember the cover story on the issue of Supermarket Business that came out just before I started. It was about Cub Foods, and how this big box format was threatening to take over the industry and put everybody else out of business.

Supermarket Business got it at least partially right—Cub Foods pioneered a format that persists even today, though ownerships and strategies have changed over the years. What the story got wrong is something that we need to remember to this day—that no single format is likely to take over the industry and put everybody else out of business. Not Cub. Not Amazon. Not Walmart. Not anyone.

I spent three or four years at Supermarket Business before moving on to a video business called Supermarket Insights that was owned by the same company that at the time owned Progressive Grocer.

(Alas, that company doesn’t exist anymore, either.) I got that job because I had some

understanding of retailing, and had studied film and television at Loyola Marymount University—this persuaded them that I could write a script and stand up in front of a camera and talk with some modicum of confidence. Which I could. And did. And then spent a number of years traveling all over the country and the world interviewing great retailers, profiling terrific stores, and learning about a global industry of enormous complexity upon which people depend to nurture and nourish themselves and their families. It was fascinating.

From there, I moved on to the internet— I’ve spent the last 22 years as “Content Guy” for my own blog, MorningNewsBeat.com, which actually predates the popular usage of the word “blog.” Needless to say, I didn’t see that coming in 1984.

I should point out that my career movement reflected the degree to which the communications business was evolving.

Not to say that any one form was putting the other out of business; just like one store format wasn’t going to make all others obsolete, the existence of online blogs like my MorningNewsBeat wasn’t going to put all magazines out of business. (I am, after all, writing this column for a print magazine.) But the existence of new forms and formats does put pressure on their ancestors to figure out new ways to be

VIEWPOINT In the end, I think, I take four lessons from a career that is not yet over.

• To me, the best retailers are the ones that endeavor every day to be closer to their customers, to understand their shoppers’ needs and aspirations, and who then build experiences—whether instore or online— to meet and exceed their desires.

iStock

both relevant and resonant. Just as the next form of communication will force me to rethink my online approach. (I often joke that before I am done I will be coming to people each morning via hologram.

I suppose that means that I won’t be able to work in my pajamas anymore. Oh, well.)

I tell you all this not just because at this moment in time I am getting a little reflective, but because I think there are business lessons to be learned from the industry’s path—and my own—that can be applied in the future. Next week.

Next month. Next year. And beyond.

One of the things that has kept me engaged in the industry for going on 40 years is that for all that time, the supermarket business has been a good story, populated by fascinating people.

How else would I have met and become friends with Feargal Quinn, the iconic Irish retailer, who infused his food stores with DNA learned from his father’s holiday camp business decades before. The camp was structured so you paid one price, and for nothing else as long as you were there; Feargal said the business needed to employ what he called “the boomerang theory,” making sure that people’s experiences were so positive that when they departed, they made their reservations for the following year. That’s what a great food store does, Feargal would say—making sure that every customer experience is so good that they’ll never even consider other options.

Or meet and interview Raymond Ackerman, the chairman of Pick ‘n Pay in South Africa, who understood that the people on the front lines were most important to making the stores function effectively, and even during apartheid would hire Black folks to work in places where normally there were not allowed to go—he was as powerful a private sector voice for the end of apartheid as there was, and helped to push his country in new directions.

The lessons I learned from people like these, and the stores I got a chance to visit all over the world, have been lasting. It is hard to remember now, but in terms of format development, 1988 was a seminal year in the US—Walmart opened its first supercenter that year, and the French retailers Carrefour and Auchan both brought their versions of the supercenter to different cities in the US. I thought of Carrefour and Auchan a lot when Tesco was floundering with its US entry—in all these cases, decades apart, management thought they could teach US shoppers to do things their way, but learned that this isn’t the best way to go to market.

As for Walmart—well, in 1988, I’m not sure any of us would’ve dreamed that it would become the biggest seller of groceries in the US in relatively short order.

In 1988, we also never would’ve thought that just six years later a company would come onto the scene, named after a South American river, that would threaten to make stores irrelevant. (Didn’t quite work out that way—yet—but audacity is a powerful fuel.)

• To me, a story is everything. Not just because I trade in stories for a living, but because the best retailers are the ones who understand that every store should have a kind of narrative, telling the shopper a story about how the retailer is going to make his or her life easier, happier, more affordable, more pleasurable.

• To me, passion is critical. He was talking about writing, but Raymond Chandler once said something that is equally applicable to business: “Technique alone is never enough. You have to have passion.” After all these years, I can separate the people who are in the business from the people who are in the food business. Me, I prefer the latter.

They’re more fun. And the meals are better.

• To me, the best retailers are the ones who keep pushing the envelope, trying new things, testing concepts that sometimes fail, but from which they learn much, and continue to innovate. They understand that “we’ve always done it that way” is generally the phrase you utter on your way to irrelevance.

I’m not sure I have another 40 trips around the sun in me. But I am confident that for the next 40 years there will stories and innovations that will, if nothing else, make us wonder why we didn’t see that coming back in 2023, but mostly remind us how important it is to keep looking and moving forward.

In the words of Jimmy Buffett: “ Yesterdays are over my shoulder, So I can’t look back for too long.

There’s just too much to see waiting in front of me, and I know that I just can’t go wrong.” ■

CAL I FORNIA G RO CER | 9

INSIDE THE BELTWAY

Gro cery Shoppers Exhibit Cautious Optimism at Year’s End J EN N I F ER H ATC H ER CHIE F PUBLIC POLICY OFFICER & SENIO R VICE P RESIDENT, FOOD MAR K E TIN G IN S T ITUTE

Despite working to balance inflationary pressures at home, consumers are looking forward to the holidays As we head into the final stretch of 2023, Americans are preparing more meals at home as they cut back on spending to manage ongoing inflationary and economic pressures.

According to the fifth and final installment of our 2023 consumer research, U.S. Grocery Shopper Trends, Holiday Season, shoppers are optimistic about their financial situations and are finding ways to feed their families and meet their needs at the grocery store.

To set the stage, it’s important to recognize that consumers are demonstrating resilience and flexibility in the face of higher prices.

Prices for food from grocery stores worry shoppers more than for any other consumer expenditure, with 72% being very or extremely concerned, up from 69% in August 2023. Two-thirds of shoppers express concerns about rising gas prices, while half are concerned about restaurant prices.

Nevertheless, shoppers are being prudent and tactical with purchases to stay within their household budgets, shopping for shortterm needs rather than filling their pantries.

Cooking at home continues to be a key tactic used by shoppers to manage their expenses, with 31% saying they are preparing meals at home more often, and more than half are

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

planning to cook and eat more of their meals at home in the coming year. Alternatively, 60% of shoppers say they are eating out less, and just 14% of shoppers say they plan to dine out more in 2024.

I nterestingly, one in five shoppers say they are actually buying more groceries as a way to contain their food spending, which helps explain why the average weekly grocery spend per household is currently $155/week.

While that is higher than the $148/week shoppers were spending in October 2022, it is a decrease from the $164/week from February of this year.

Even given these economic challenges, Americans are excited to celebrate the end-of-year holidays. To manage their

budgets, consumers tell us they intend to shop ahead, seek deals and explore more food options to help them continue to make the holidays special.

In fact, 47% say they will make at least some adjustments to the way they cook over the holidays. Thirty percent of shoppers say they will be seeking more deals, 24% will be preparing more dishes at home, and 17% will have others contribute to holiday meals.

Another 18% report they will be substituting products for more affordable options.

Americans have also reported shopping earlier for the holidays, but there appears to be less focus on this tactic than last year. For the end-of-year holidays, 31% plan to shop further in advance than usual, down slightly from last year.

In most cases, these strategies are considered by shoppers fairly equally regardless of household income, although there are some differences based on age, where younger shoppers are typically more active shopping strategists.

Interestingly, consumers are also taking advantage of expanded foodservice options at their local grocer. Shoppers are increasingly enjoying “hybrid” meals that

INSIDE THE BELTWAY

What changes do you anticipate making in the year ahead (2024)

pair food made at home alongside semi- or fully- prepared items from the grocery store.

This hybrid approach can offer shoppers tremendous value during this hectic season by offering convenience and affordability for any holiday meal celebration.

Looking ahead into next year, shoppers see increased enjoyment from cooking and eating in 2024, and plan to save money, exercise, and spend more time with friends and family in the New Year. Shoppers tend

to expect that both their nutrition and their enjoyment from eating will improve over the course of 2024, with 61% of shoppers feeling their enjoyment from eating will get better, and 53% believe their diet and nutrition will get better. When it comes to household finances, 35% of shoppers feel that those will improve for them one year from now.

Similarly for affordability, 30% of shoppers feel that their ability to buy the food they need will improve a year from now.

Retailers that are able to emphasize deals, increased private brand offerings, foodservice meal solutions and product pairings that meet consumers’ health and nutrition aspirations will be better positioned to foster customer loyalty in the New Year. ■ To download the U.S. Grocer Shopper Trends, Holiday Season report and to sign up to receive updates on future, visit www.FMI.org/ GroceryTrends.

CAL I FORNIA G RO CER | 11

WA SHINGTON REPORT

Economic Challenges Bring Out the Resilience of Indepe ndent Grocers 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

Independent grocers are more in tune than most businesses with the communities they serve.

Grocers see folks every week—sometimes every day—to help them with their families’ needs. Grocers engage, communicate, and commiserate, offering ideas and solutions amid challenging economic times.

So, it may come as a surprise that, according to recent surveys, consumers generally don’t understand the grocery business.

The latest confirmation came over this past summer, when findings from a survey of more than 1,200 grocery shoppers conducted by The Feedback Group revealed that, on average, shoppers believe their primary store has a net profit of 33% after expenses and taxes, rather than the historic reality of 1% to 2%.

The gradual easing of inflation in the food sector doesn’t appear to have shaken this perception, and grocers have been under intense pressure to deliver value at the shelf while contending with higher prices for everything from the products themselves to the gasoline in the trucks that move the products to the salaries of the people that make it all work.

Independent grocers have continued to be successful amid these trying economic conditions, though it hasn’t been easy.

As revealed by the 2023 edition of the Independent Grocers Financial Study, conducted by NGA and FMS Solutions, same-store dollar sales trended 4.8% in fiscal year 2022 above year-ago levels, but sales growth was below the rate of inflation for more than three-quarters of independent operators. Reflecting record participation, 521 independent grocers representing nearly 2,000 stores shared their financial and operational data for fiscal year 2022, which ended March 31, 2023.

While inflation dominated the headlines and bottom lines, consumers sought out sales, switched between stores and bought less, hurting volume and unit sales, and slowing inventory turns.

Out-of-stocks improved over 2021, but sourcing products continued to be a challenge.

Inflation, competition, and continued supply issues are just some of the

iStock

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

challenges facing independent grocers, but independents are nimble enough to keep on doing what they do best: pivot to meet the ever-changing marketplace opportunities and challenges.

Independent grocers compressed margins in 2021 to help consumers absorb rapidly rising prices. Strong customer loyalty combined with business savvy have positioned independents to not only survive but thrive in the coming year.

Employee turnover remained an issue, averaging 57% in 2022. Despite these challenges, only about a third have turned to automation to fill labor gaps.

But they’re investing in their businesses in other ways.

WASHINGTON REPORT

iStock

Bullish in their outlook, nearly half (48%) increased their capital expenditures; 34% remodeled one or more stores and 14% added new stores. They’re also continuing to invest in ecommerce, with pickup service leading the growth.

Meanwhile, supply chain challenges persist, with 49% of independents saying they lost sales because of procurement issues; 47% have had to source from alternate, nonwholesale channels due to more favorable pricing. Still, the average out-of-stock rate dropped to 17.5% from 24.3% in 2021.

Inflation fueled growth, but price increases drove most gains, with units and volume down. Same-store sales grew 4.8%, but adjusting for inflation made it a loss of 3.6%. Average weekly transactions topped 7,200, with an average transaction size approaching $34.

Total store gross margin was unchanged from 2021 as independent grocers kept margins compressed. While expenses increased, as a percentage of inflationboosted sales they remained relatively

unchanged. Strongest growth in share of sales by department was in produce (9.7%), deli (7.4%), and bakery (2.8%).

Inflation is slower for food at home compared to food away from home, presenting grocers with an opportunity to better serve consumers finding themselves priced out of frequent restaurant dining.

Shoppers are still paying as much as 30% more for groceries than they did three years ago, with low savings rates and high credit card debt contributing to the pressure.

Consumers are clearly not confident in their spending; in response to higher prices, 93% are making at least one change to their grocery shopping habits, including buying less, changing brands or choosing different pack sizes, the FMS study reported.

So, to help consumers better understand the business, be transparent about prices, cost to retailers, and supply chain pressures. Make them aware that consistently higher prices for goods, services, and transportation make it difficult to deliver value. Re-evaluate your pricing strategies.

Make your sales more meaningful—feature items that offer meal-planning solutions and otherwise meet consumers’ highest needs.

Use your circulars more strategically.

Consumers are leaning toward store brands, so demonstrate how they offer added value beyond just a lower price. Emphasize conventional produce as fewer consumers select organic options. Highlight valuepriced items with healthy profiles. Offer bulk specials and volume discounts.

Retailers and consumers alike are displaying resilience in challenging times. New behaviors quickly become new habits, so stay on top of changing trends. And keep communicating with your consumers so they understand the challenges you face to remain invested in the community.

To learn more about this report and additional industry resources, visit www.nationalgrocers.org/resource-center/.

CAL I FORNIA G RO CER | 13

connect with fresh

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

CAPITOL INSIDER

A California Political Scene in Transition 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

Congressional openings set off a game of musical chairs while new legislative leadership prepares for the upcoming session Brown

The only constant in the Capitol is change.

While even-number years usually bring change in the Capitol, we usually see that change happening at the end of the year. This year, we will start 2024 with some significant changes; many of which are good for the grocery industry.

In the middle of the 2023 legislative session, we saw a transition of leadership in the Assembly. However, other than leadership changes, not much happened to impact the operations of the Chamber. That was until the day before Thanksgiving when Speaker Rivas announced his new committee chairs for the 2024 legislative session.

Here’s a list of new Committee Chairs on committees that could impact grocery industry legislation: Appropriations Committee: Buffy Wicks Budget Committee: Jesse Gabriel Environmental Safety and Toxic Materials Committee: Eduardo Garcia Governmental Organization Committee: Blanca Rubio Health Committee: Mia Bonta Judiciary Committee: Ash Kalra Labor and Employment Committee: Liz Ortega Natural Resources Committee: Isaac Bryan

Privacy and Consumer Protection Committee: Rebecca Bauer-Kahan Public Safety Committee: Kevin McCarty Transportation Committee: Lori Wilson The Speaker did a nice job of spreading these new assignments to progressives and moderates in the caucus, showing his interest in trying to find balance whenever possible. He also received accolades from the Legislative Women’s Caucus for having appointed more women to committee chairs and leadership position than any other Speaker.

What remains to be seen is how engaged the Speaker will be with his committee chairs.

Former Speaker Rendon was hands off, leaving decisions to pass, fail or not even hear certain bills to the Chair. Other Speakers, while giving authority to committee chairs still controlled how the game was played, especially when controversial matters were being heard.

We saw a glimpse of Speaker Rivas engaging in the committee process last year after the Assembly Public Safety Committee failed to pass Senator Grove’s legislation that would have made sex trafficking of minors a strike, under California’s Three Strikes Law. After the Speaker engaged, the committee held another hearing and passed the bill, which was ultimately signed by Governor Newsom.

Speaker Rivas may plan to be more engaged in the committee process in order to avoid the unnecessary drama that came from an ideological chair and committee not in tune with the mindset of the California voter.

In addition to committee changes, other changes are on the horizon. A record number of Members of Congress are choosing not to seek reelection which will create a scramble to replace them.

This year, Congressional representatives Schiff, Porter, Lee, Napolitano, Eshoo and McCarthy are not seeking reelection. Three are running to replace Senator Dianne Feinstein. Napolitano and Eshoo are retiring and McCarthy just announced his desire to resign at the end of the year. Due to these changes, no less than eight members of the California Legislature are seeking the opportunity to serve in Congress, creating a scramble to replace them.

The Assembly is not the only state house facing change. At the end of the 2023 legislative session, it was announced that Senator Mike McGuire would replace President Pro Tem Toni Atkins in the Senate.

That transition is expected to happen on February 5, 2024, which could lead to additional changes in that house.

As I said in the beginning, the only constant is change! ■

CAL I FORNIA G RO CER | 15

Reimagining the Urban Grocery Store CHALLENGES AND OPPORTUNITIES IN CALIFORNIA’S DOWNTOWNS

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

By Michele Fuller

In the pre-pandemic era and throughout the 2010s, American cities experienced

an unprecedented surge in cultural growth and business investments. Downtowns across California were at the forefront of the urban renewal project, drawing in a wave of entrepreneurs and transforming the retail landscape. This surge spurred economic development and created a thriving ecosystem where cultural institutions, small businesses, and larger retailers coexisted harmoniously, transforming California’s downtowns into lively, creative, and interconnected communities.

Grocery retailers, in particular, adapted with innovative strategies, embracing smaller formats and ready-to-eat options to cater to the needs of busy professionals and urban dwellers—strategies that continue to be paramount today.

But the COVID-19 pandemic has cast a new light on California’s downtown areas, as shifting demographics, inflation, crime, and changing consumer preferences are all redefining the role of businesses in city centers.

NAVIGATING THE EVOLVING LANDSCAPE Urban migration continues to impact the dynamics of businesses operating downtown. The Economic Innovation Group’s study earlier this year reports that two million people fled the nation’s largest cities between 2020 and 2022. This mass exodus had a domino effect on local businesses, with many small businesses shutting down and larger companies moving to more profitable areas.

“Population migration is a topic that hasn’t gotten enough attention,” says R.J. Hottovy, Head of Research Analytics at Placer.ai. “Certain markets got hit really hard, like New York, San Francisco, and Los Angeles. If you look at today versus pre-pandemic levels, population growth is down for most of those markets.”

Placer.ai’s robust migration data tool also shows that most who left the city were higher-income households that have moved into suburban or rural areas. This shift left a substantial impression on the overall economy of our downtown areas.

“If we take a look at all the different trends, it kind of paints a negative picture for some of these markets,” says Hottovy, “but over the last year, we’ve seen a resurgence of younger, more millennial Gen Z households, that are starting to backfill some of the real estate that was made available by that urban migration.”

Richard Florida, world-renowned urbanist, cofounder of CityLab, and Professor at the University of Toronto, also recognizes the new wave of residents in urban cores. “I think downtowns and cities are reviving,” Florida says. “Much more than people think.”

Based on a recent study, Florida emphasizes that “for the revival of downtown areas, visitors are critical. It’s really the areas that were so dependent on the commuter workers that have been so hard hit. If you were a strong residential neighborhood before the pandemic, you tended to get stronger… and if you’re a place that can attract visitors.”

Continued on page 18 ▶

CAL I FORNIA G RO CER | 17

◀ Continued from page 17

“Places like Nashville,” he says, “have done remarkably well for its continuous ability to attract tourists both local and from other parts of the country and world.” In addition to Nashville, the study also shows that San Jose and San Diego are at a record 90% of pre-pandemic visitor levels.

THE IMPACT OF CRIME ON DOWNTOWNS Urban migration also led to an increase in crime, keeping foot traffic away from many downtown areas, raising business insurance costs, and deterring new investments. In September, over 200 business owners in Oakland joined in a citywide strike, closing down their stores and demanding local leaders take action on the rising crime in their city.

“It [crime] is a huge issue,” says Florida.

“I think the big problem is what Jane Jacobs long ago called ‘The eyes on the street.’

There was a big void left in these downtown areas where people weren’t coming back to work. But I think that will get better as downtowns recuperate.”

Still today, many grocery retailers, whose success is inherently tied to the well-being of their communities, find themselves losing customers, inventory, and even their businesses because of the crime permeating their cities.

Florida believes the long-term solution would be for cities to create more familyfriendly environments and events that appeal to a diverse range of residents. By promoting community programming and more activity in downtown areas, you can foster an environment of economic growth and attract families to live and work in these spaces.

More immediately, grocers can play a role by getting involved at the local level.

“I think the most important thing grocers and other businesses can do is to work with their Business Improvement Districts,” says Florida. “And if they don’t have a Business Improvement District, to create one and to use [it] as a way to not only provide more activity but more security.”

Kevin Kelley, principal and cofounder of the design firm Shook Kelley, says that small storefronts and design can also reduce crime and increase shopper safety. “The really fascinating correlation,” Kelley says, “is that the better designs we do, the less crime we get. The more apathetic environment we have, the more crime we get. And the more we lock things up, the more crime we get.”

Similar to the “eyes on the street,” Kelley also notes that the more customers, the less criminal activity there is in store.

CONSUMER PREFERENCES AND THE SHIFT TOWARDS EXPERIENTIAL SHOPPING Grocery visitation is down in most cities.

It’s easy to point fingers at crime and the rise of e-commerce and remote work, but there’s another trend emerging. People are shopping around.

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

“We’ve seen people start to embrace more channels, different channels for grocery purchases, as they’re seeking out value,” says Hottovy. “I think it’s no secret that inflation has disrupted consumers, and not just food inflation, but rent, healthcare, and other forms of inflation have made things a lot more expensive just for essential products.

People are spending less, but as they’re looking for deals, they’re shopping more locations than ever before.”

Some of that shopping around even happens in the store, according to Hottovy. Placer.ai’s data partly contributes this to comparing brands and prices while shopping, often private label versus branded products. Many modern-day consumers are looking for highquality, organic, locally sourced products at the best price, and they will go store to store to find them.

Hottovy credits Trader Joe’s and Aldi for doing so well because they do a great job at offering competitive pricing and innovation.

“It’s not just about cutting prices. People there are given a lot of sense of newness, unique products, and flavor profiles,” he says.

Florida, who has spent decades researching cities and urbanism, believes grocers have a unique niche in the market. “I live in Toronto and I really like going to the grocery store, especially small boutique grocers, “ he says.

“We not only have large supermarkets, which are great, but we have all of these independent grocers, small shops, butchers, fishmongers, cheese places. And it’s exciting.

I mean, it’s an experience.”

What this new wave of urbanites is teaching us is that they want something more than

stopping at the store for eggs and milk.

“It’s no longer about buying things,” says Florida. “It’s about the experience of shopping. Shopping for groceries is a different experience than shopping for t-shirts, you know, that’s easier to buy online…it’s where consumption can make buying more of an experience is what people are flocking to.”

CREATIVITY AND INNOVATION IN STORE DESIGN Florida reminds us that we are social creatures. Creating spaces where people can connect and hang out is vital for urban communities. He points out that even people who work remotely spend 25–30% of that time working from a co-working space, coffee shop, or friend’s house. “The key to recovery is these third places, which are neither home nor work. They are cafes, they are restaurants, they are places you go hang out, the corner bar,” he says. “Grocers are third places, too, as places for people to buy things. I think that’s the lesson to learn.”

When grappling with store design and the changing food landscape, many grocery retailers opt for a professional approach that aligns with industry best practices.

But Kelley urges them to do the opposite.

“We sometimes get trapped in our industry in what we call ‘form and shape.’ And what I mean by form and shape is that a grocery store looks a certain way. And it has a certain size, and we all identify with it just as we would identify with a gas station or a mall.

We know what it is without even seeing a sign on it. But the players that are going

to succeed are the ones that start breaking down those institutionalized concepts and start rethinking.”

Kelley’s firm invests significant time in retail strategy and discovery analysis before beginning the design process. This approach allows them to identify market voids and give grocery stores a distinct and authentic identity that stands out in the crowded marketplace. “There is no one way or binary way,” Kelley says, “There’s so much room, and any path will kind of take you there; you just have to do it with conviction.”

An example is Northgate Market’s newest location in Costa Mesa, where Kelley’s team helped develop a new Mercado. The Mercado Gonzalez food hall and marketplace is a highly experiential, highly differentiated store focusing on the Mexican food community rather than commodities.

In densely populated urban areas, Kelley observes a shift in how today’s consumers shop, especially among younger demographics. They want to go to smaller format stores that cater to what Kelley calls their ‘fill-in’ needs. These stores are typically around 8-10,000 square feet and are perfect for those quick trips to buy some essentials to cover three to four days of groceries.

“Our firm is developing grocery stores,” explains Kelley, “but we’re also involved in developing a lot of mixed-use developments that generally are led by housing, and you’ve probably seen them all over LA. They’re retail on the ground floor, which most of the cities in California mandate. And then they have residential above. And I’m not talking

about a small amount of residential. I’m talking large. We’re doing a giant one in LA called Cumulus with 3,000 people, and we put a Whole Foods in there.”

Residents in these complexes typically have smaller apartments with less cabinet space and don’t want to, what Kelley’s team calls, “schlep” large bulk items from the store to their homes. They simply want to grab a quick semi-prepared meal, a bottle of wine, some other “fill-in” needs, and be on their way.

With smaller stores, grocers can get creative with real estate investments in downtown areas. Florida believes now is the time to look for deals. “These neighborhoods are going to come back,” he says, “I would be looking at failed office properties and these old retail spaces that nobody wants to go into. They seem to be great for independent grocers and great for artists.”

THE URBAN GROCERY STORE ISN’T JUST A STORE; IT’S A LIFESTYLE By embracing unique strategies, leveraging data, and keeping a finger on the pulse of evolving consumer preferences, grocery stores are reimagining their role in both urban and suburban communities.

Grocers have an opportunity to foster an environment where people not only shop but come together to dine and interact.

Though it is still an evolving landscape, one thing is sure: grocery shopping runs deep into the social fabric of life as food continues to be one of the most powerful shared experiences in cultures worldwide. ■

CAL I FORNIA G RO CER | 19

and

CGA Board Chair

Lynn Melillo

Foods Etc. on his year of service

Bristol Farms for her new role as CGA Board Chair for 2024

Dennis Darling

Congratulations Lynn Melillo Bristol Farms

Incoming CGA Chair

Thank You Dennis Darling

Foods Etc. Outgoing CGA Chair

(818) 817-6702 www.retailsolutionshq.com

MAKE MEMORIES

with

DISTINCTIVE CHARACTER

Carmenet (pronounced “Car-men-ay”) is a French–inspired collection of fine wines with a California point of view. Grown at our family–owned Forest Lake Vineyard in Lodi, CA since 1983, we have set out to create balanced, elegant wines that represent affordable luxury in a bottle. Around here we like to say our Carmenet Reserve wines are “half the price, yet twice as nice” as other luxury wines. So, let’s raise a glass to discovering something new!

« SCAN HERE t o l e a rn m o re a b o u t o u r w in e s

C A R M E N E T R E S E RV E . C O M

@ C A R M E N E T R E S E RV E

YOUR TRUSTED PARTNER IN CALIFORNIA WINE DISTRIBU TION

We are a premier wine and spirits distributor focused on servicing retailers and restauranteurs throughout California. Our passion is to build brands while providing accounts with valued expertise. Founded in 1973, we are a family-owned company that proudly sells and distributes exceptional products to the Golden State’s wine and spirits marketplace.

MARKETED BY CLASSIC WINES OF CALIFORNIA | CLASSICWINESOFCALIFORNIA.COM

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

LYNN MELILLO TO LEAD CGA AS BOARD CHAIR LYNN BRINGS POSITIVITY, PASSION, AND VISION TO HER ROLE AS CHAIR

By Grace Becker Lynn Melillo’s more than forty-year grocery career started with a bike ride. A teenager in Pasadena, Lynn cycled over to newly opened Louis Foods in 1980 to submit a job application. The family-owned business hired her on as a courtesy clerk/cashier.

When Louis Foods went for sale in 1995, Lynn left to be a cashier and trainer at Bristol Farms to prep front-end staff for the company’s fourth store opening. Five years later, a manager of training and operations position opened at Bristol’s corporate office and Lynn took the job.

Now Vice President of Asset Management for the Bristol Farms banner, which includes Lazy Acres and New Lead Community Markets, Lynn has spent many pivotal life chapters in the grocery industry. Her next chapter in grocery starts with taking the reigns as Chair of the CGA Board of Directors.

“I really came to love the industry and the fact that you didn’t need a college degree. If you had the heart and the grit to do what was required, you were able to write your own ticket. Whatever you wanted to do, if you put in the time, you could do it. So that’s what I did,” says Lynn.

The grocery industry quickly became personal for Lynn.

Shortly after starting her job at Louis Foods, her siblings followed suit. “I’m the oldest of six kids, and at one point all six of us were working for Louis Foods which was so funny,” says Lynn.

Her love of the grocery industry and the people in it came easily, “It was in my blood at that point because when you’re working for a family business, you’re really doing everything. You’re not assigned to just one department—you help out wherever needed.”

After four years at Louis Foods, the words “family business” took on a whole new meaning. Her boss at the time, Louid Melillo Sr., who was a longtime industry member and through the family is a legacy supporter of the CGA Educational Foundation, became her father-in-law.

“I married the middle son, Rodney, and we’ve been married for 39 years now,” she says. Together, Lynn and Rodney share adult sons Reed and Aaron, and boxer dog named Daisy.

Though she did not attend a four-year university, Lynn’s pathway to education is one shared by many in the grocery industry. Throughout her career, she’s sought out education opportunities and certifications that would help her grow in her role and propel the company forward.

In 2003, Lynn completed her Associate’s Degree in Risk Management from the Insurance Institute of America, and in 2014 she received certification in Human Resources Management, Business Administration from University of California, Los Angeles.

“I have often said people in this industry need perseverance and grit. When you look at Lynn, she is one of those people,” says past CGA Board Chair and Gelson’s Vice President of Team Development and Public Affairs HeeSook Alden.

Lynn’s commitment to education and quest for knowledge benefited her tenfold. Despite her natural inclination towards store operations, while working as operations manager, Lynn recognized an opportunity for Bristol to

Continued on page 26 ▶

CAL I FORNIA G RO CER | 25

◀ Continued from page 25

grow in the food safety and employee safety space. So, she pitched the idea to take those areas under her umbrella to help Bristol change with the tides of the industry. Years later, Lynn had the opportunity to see her vision through and drove the formation of Bristol’s asset management department.

Taking initiative and carrying out a project of this scale is perfectly in character for Lynn. “Lynn takes it upon herself to become a subject matter expert in the various responsibilities she has. If she doesn’t know, you can bet she will find out by getting on a webinar, taking a class, getting a certification, as well as networking,” says HeeSook.

In her day-to-day as vice president of asset management, Lynn oversees a broad scope of responsibilities that are crucial to Bristol’s daily operations, including employee safety, customer safety, loss prevention, insurance and risk, and compliance. Her workdays vary drastically, whether she’s liaising store inspections with governmental agencies, working through compliance for a new store opening, or handling the aftermath of an in-store customer injury.

No matter the situation, Lynn is the connecting link. “I never know what we’re going to face when we walk in the door,” she says. The way she sees it, the role of

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

her department is to serve and support the store operations team so they can focus their energy on front line support to customers and employees.

That’s a passion of mine. I have to start my day that way so I know my heart and my head are in the right place. My cup of coffee and my daily devotional,” she laughs.

Recently, loss prevention has come front and center in her role. “Lately the phone has been ringing off the hook because of loss prevention and theft in our stores,” says Lynn. “California Grocers Association is doing everything they can with local legislation to help us on that end, but the legislation is not fast enough to combat what we’re facing on a daily basis.”

That positivity, care, and focus is exactly how she’ll approach her new role as chair. Her good friends and past CGA Board Chairs Renee Amen and HeeSook Alden will be by her side cheering her on.

After connecting with the California Highway Patrol (CHP) during the Loss Prevention Executive Summit at the CGA Strategic Conference, Lynn’s team had the opportunity to work face to face with CHP to address retail theft. Continuing to strengthen the industry’s relationship with local government and supporting CGA’s efforts to combat retail theft sit high on her agenda as Chair.

No matter what may unfold during her workday, her morning regimen remains the same. Before heading off to work, Lynn takes time to center herself.

“My day is started in the Bible. I have a very strong faith, and I want to make sure I start my day getting guidance and direction.

“Lynn will bring years of hard work and knowledge to the chair. She has many diverse responsibilities in her role at Bristol Farms and that will translate to valuable knowledge to share with her colleagues at CGA,” says Renee.

“Lynn’s positive attitude and spirit will make her a great CGA Board of Directors Chair. I am very proud to call Lynn my friend and colleague,” says HeeSook.

One of Lynn’s focus areas as chair is encouraging food recovery within the grocery industry. From her perspective, the industry has a long way to go.

Food recovery became a passion point for Lynn after hearing Social Impact Entrepreneur Mark Brand speak at the 2023 CGA Independent Operators Symposium in Hawaii. Brand, a chef and social impact entrepreneur, is known for creating his

signature token program where community members in need could redeem a warm meal for a token he handed out at his sandwich shop. Now, Brand speaks around the world about his work to inspire others.

Brand’s heartful approach to solving hunger resonated with Lynn.

but fresh product like produce, meat, seafood, sushi, and even floral.”

Going forward, Lynn hopes to extend Bristol’s existing local partnerships by introducing staff field trips where employees can see the life cycle of donated food and impacts on local communities.

“I think that’s what makes me so proud about this industry. You can start as a dish washer or cook or a butcher, and you can work your way all the way up into c-suite if that’s what you want to. You can be an encouragement to people in all walks wherever you are in your path,“ she says.

“Mark Brand opened my mind and my heart to the incredible need that is out there and the role our industry can play,” says Lynn.

“I was left with a sense and a yearning to educate myself and our staff because I believe there is so much more we can do in the area of food recovery as an industry.”

“The trash has to be the last resort. I think the key is a better partnership with those local organizations. As an industry, we need to be able to identify and create those relationships.”

Though Lynn didn’t have a mentor in a traditional sense, she takes her position as a mentor and role model seriously and encourages those coming up in the industry to seek mentorship.

Carrying on the legacy of the chairs that precede her, including Phil Miller, HeeSook Alden, and Renee Amen, Lynn continues to encourage the diversity of CGA’s Board of Directors and Executive Committee. “The grocery industry is very diverse in terms of the workers in our stores and our store management, so I think it’s very important that the CGA board and the executive board reflect that,” she says.

“I think back, and it was my own vulnerabilities that kept me from seeking out a mentor. I think you can advance farther if you seek out that mentorship. You have to be comfortable and acknowledge your own vulnerabilities. We all have them, we just need to learn not to hide behind them, but instead seek out the people that can help you overcome them.”

Currently, Bristol works closely with local organizations including FoodCycle LA, Food Finders, Second Harvest Food Bank of Orange County, San Diego Food Bank, and several others. Though many grocers partner with community food banks and organizations to donate bakery goods and the like, in Lynn’s opinion there’s ripe opportunity for the industry to make more effort to recover fresh goods.

“The food banks in our communities have the resources to take the unsaleable food from the grocers and create wholesome and nutritious meals for the those in need within our communities. Not just the day-old bread we are used to donating,

As someone who is proud to have taken her education journey into her own hands, it’s important to Lynn to set an example as chair. She plans to both encourage and promote education opportunities to industry members hoping to advance their careers— even if through a less traditional route.

As she leads CGA over the next year as chair, Lynn will continue her devotion to the grocery industry and people in it. ■

CAL I FORNIA G RO CER | 27

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

The Tech-Powered Store of the

F uture

By Nate Rose

From micro-fullfilment centers to robotic shelf-scanning, new technologies are ready to change the grocery game

T

here’s a famous critique of Silicon Valley that goes something like this: “We were promised flying cars, but all we have are 140 characters.” Instead of the future envisioned and popularized in popular culture by television shows, such as “The Jetsons”, the 2000s have primarily gone down as the social media age. The utility of which, is often up for debate.

Regardless of how you feel about the technology hype cycle, entrepreneurs have continued to pursue the outer limits of what’s possible, pushing towards exciting new advancements in robotics, automation, and AI. The amalgamation of these advancements, when combined with California’s high labor costs and declining labor pool, has incubated an environment where practical realities point towards technology as necessary for sustaining commerce.

A new technological stack is being built for grocers, one where companies compete for disparate parts of its retail operations— everything from micro-fulfillment to robots patrolling store aisles for out-of-stocks.

The options are wide-ranging, and the central challenge facing grocers is how to prioritize their investments and reimagine their operations.

Meet Your Robot Coworker In Redwood City, Calif. Simbe is harnessing robotics, data, and AI to revolutionize a process as old as the general store: shelf maintenance. Its charismatic robot, Tally, patrols stores shelves in search of out-ofstocks, as well as pricing and promotions mishaps. The data it collects then flows into its platform, helping retailers to understand product movement while also alerting store teams to store shelf issues. Store teams are alerted on handheld devices, or even through automated printouts.

“Simbe was founded with the core focus to help retailers understand what’s happening on their store shelves,” explains Simbe CEO and Co-Founder Brad Bogolea.

“What grocers really start to see (with our technology) are all the missed opportunities from out-of-stocks. Across grocers in the U.S., we typically see that in 60% of out-ofstock scenarios the products are actually in the back of the room. Store teams either haven’t discovered the issue yet or haven’t had the time to resolve it. So, with our technology we’re cutting that time down, and boosting sales and margin by getting products back on shelves faster.”

Simbe focuses on “shelf intelligence” to mainline key data into core business systems with the goal of making on-theground teams more efficient. The logic is simple, fewer out-of-stock and other shelf issues leads to better customer experiences, meanwhile store employees and corporate buyers can more sharply calibrate their stores and supply chains. Tally, the robot, typically scans store shelves three to five times per day.

Continued on page 30 ▶

CAL I FORNIA G RO CER | 29

◀ Continued from page 29

Across grocers in the U.S., we typically see that in 60% of out-of-stock scenarios the products are actually in the back of the room.

“Most retailers today are performing manual shelf audits every week,” Bogolea says.

“They’re not only checking to ensure product is in stock, but are also verifying pricing. If you think about customer service as one of the most valuable attributes, imagine if the labor component was focused on restocking or picking online orders. We really see an opportunity for retailers to automate shelf-checking.”

Clearly other retailers agree. In 2021 Schuck Markets rolled out Tally across its stores which span the Midwest. Simbe also has deals looming in California although these are yet to be announced.

“Our real competition is the incumbent process and getting retailers to rationalize the incredible opportunity that is here and the ROI,” reflects the Simbe CEO and when asked about what holds back grocers from partnering with his company.

“We have to show retailers what’s possible.

Some of the technology has evolved so quickly, there’s maybe been a thought that this is a science experiment, or maybe it’s not real.”

Bogolea acknowledges that grocery c-suites are also navigating a high number of strategic priorities simultaneously, and that is one reason manual store shelf audits remain a fixture in the industry.

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

“Rolling out new technologies is a serious endeavor, involving many different points of the business. I think a lot of retailers will think about how many strategic priorities they can invest in at once and what’s the ROI. I do think Tally is rising in the stack with those that have taken us to scale.”

Ultimately, Bogolea believes it’s essential grocers look to the future and avoid complacency, an alluring trap given the pandemic-related, temporary outsized sales volume to the industry.

“We really see this technology as a power tool,” he shared. “Think about how a power tool helps a carpenter to work more efficiently. Instead of store teams going out and looking for what’s wrong in their stores right now, they’re being automatically told.

Think about how empowering that can be. Think about how much efficiency and effectiveness it can put into store execution and process.”

It’s a similar refrain to the view shared by digital transformation and e-commerce veteran Michael Klein at the 2023 CGA Strategic Conference, where Klein explained that AI will not replace humans; however, a human using AI will replace a human not using AI.

UPDATE PRICE

Making Convenience King Traveling further across the grocer’s technology stack, Takeoff is working to automate a different section of the grocery business: e-commerce.

Already partnering with Safeway/Albertsons, Takeoff has garnered positive press for its core product: micro-fulfillment centers built into the back rooms of grocery stores. These micro-fulfillment centers employ automated product picking to assemble online orders with human workers supervising the overall center. But the company isn’t stopping there, Takeoff ’s goal is to offer a solution for every grocer regardless of scale, as well as new distribution channels for groceries.

“Part of the journey for grocers is their overall network strategy,” says Takeoff Chief Business Officer Curt Avallone. “How many micro-fulfillment centers do they need. How many modular fulfillment centers do they need. Micro-fulfillment does $35M a year, but modular can do $100M,” he explains.

“A lot of it depends on volume and your lastmile strategy. We also have the nano express.

Unlike our micro-fulfilment centers that are 100 square feet, it’s a 2000 square feet model that we believe will be a global breakthrough, even bigger than micro-fulfillment centers.

Then we have mini micro-fullfillment centers.

optimize planogram

Low Stock Notification

The mini micro-fulfillment centers are for the $10M and $35M range. If you’re SKU count is lower than a traditional grocer, let’s say 10,000 SKU, then it’s ideal.”

If you’re new the company’s roster of solutions, the varied options can make your head spin. Avallone spent much of his career working at H-E-B, and he believes his team’s experience in grocer sets them apart from competitors. Takeoff ’s aim is to be able to visit any grocer and solve their problem of “digital unprofitability.”

At the center of its thinking is customer experience. The online shopping experience where goods show up at your door, or curbside even, is a nice, convenient proposition. However, the journey to getting there can be more arduous than it needs to be in Avallone’s opinion.

“The mistake that almost every grocer has made in the journey is they put selection above convenience,” the Takeoff executive says. “What we’re doing is saying the grocers that are going to win are going to be those that focus on convenience.

“You personalize the assortment to the customers who shop online, to the 6,000 vs 20,000, and you find that you can get 95% plus with about 12,000 SKU’s when it’s 6,000 customers. These secrets of the

model aren’t really understood by the robotics firms because they aren’t grocers and many grocers don’t realize they’re operating a format…When I do that I’m not focused on convenience or price, I’m focused on selection. The red herring is the average U.S. consumer only purchases 340 unique products from the store each year.

That allows you to sort your microfulfillment center by knowing it’s not about 100% selection.”

In an atmosphere where retailers have been racing to catch up with Amazon’s “endless shelf ” many have looked past convenience.

Avallone contends this is because it’s more natural for grocers to spend more time thinking about their bakeries, which are 3-4% of their business even as digital represents something closer to 10%.

“The noise is that a lot of grocers haven’t considered digital as a competitive advantage,” he explains. “It’s like having an air force and leaving it on the ground. It’s supposed to strike a specific target, and that’s not just optimized for best customers. It’s also by focusing on a competitor’s secondary customers. When grocers put in restaurants and bakeries, it was all to attract customers and make their stores better. Digital is the same way, grocers just haven’t realized it.”

“ We have to show retailers what’s possible. Some of the technology has evolved so quickly, there’s maybe been a thought that this is a science experiment, or maybe it’s not real.”

Continued on page 32 ▶

CAL I FORNIA G RO CER | 31

◀ Continued from page 31

“ One thing that really empowered our facilities is we looked to the superintendents or plant managers to be the ones that drove recommendations,” DAN VINCENT former Pacific Coast Producers CEO and President iStock

The 80-20 Rule This is the part where you land back on earth. Previously at the helm of Pacific Coast Producers, Dan Vincent has lived the experience of automating key components of his business and investing in technological innovation.

“I think where people get into trouble is they look for 100% solutions,” he says. “Butchers are a good example. You could probably use robots for 80%, and then have the final 20% finished by a skilled butcher. The companies want to sell you 100% solutions. For example, there’s no end to the amount of money you could spend on these automated warehouses.

But even Amazon has people in the last 20%.

That’s how we looked at it. Where’s the 80% because technology could really do a good job with that, but if you try to do 100%, the costs and the complexity are showstoppers.

So, look for the technology to solve 80% of your problem and not 100%.”

For those unfamiliar, Pacific Coast Producers is a cooperative that specializes in canning and processing fruits and vegetables for private brands. The company began its technological journey due to its experience with labor constraints.

“There’s obviously the cost of labor, but I think even more importantly it is access to labor,” the former President and CEO of Pacific Coast Producers says. “The big initiative we did pre-Covid, thankfully, we did a big push into where there were

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

opportunities to displace labor in places we couldn’t find labor. Difficult jobs that required heavy lifting, repetitive jobs. I’m sure that’s what your members will find: the algebra of paybacks as technology’s cost goes down and the quality rises and the cost of labor goes up, the math gets easier.”

According to Vincent, this process was not dramatic as it took place as an extension of the company’s ethos. There were no largescale layoffs since they automated tasks that needed backfilling. When there were job displacements, team members were able to shift to other upskilled job opportunities at the company. Overall, Vincent simply saw the shift towards an innovative approach as necessary to surviving long term.

Similar to grocery operators, Vincent was faced with the question of how to best rationalize its investments, how to prioritize amidst competing needs and opportunities.

When faced with this question, he looked to his on the ground teammates for signals.

“One thing that really empowered our facilities is we looked to the superintendents or plant managers to be the ones that drove recommendations,” he shares. “They come up with the capital ideas, and then as a team we go through and look for the best opportunities. In our capital budget, we never said this plant gets this much or this plant gets this much. They all had to compete for a fixed budget and as a team we would decide what are the best uses of this and the highest returns.

“We also forced creativity on them. Imagine you’re a store and your need to redo your parking lot or store shelves. There’s no ROI on that, it’s just staying alive. So, if you have a capital budget for a store and you have to spend on new floors or something, well then you need to generate an average return on your capital or you’re going backwards. We would just create the math and ask what’s the x factor to subsidize repairing roofs or something. That gave them a challenge of what can we do to generate this return. It created these creative juices to say what’s out there and what can we do.”

Do Your Own Research Vincent’s experience at Pacific Coast Producers shows there’s a roadmap for improving core functions of a business through advanced automation, robotics, and AI. It’s not just a Jetsons’ future, nor a fit of fanciful thinking. Nevertheless, the decision-tree will be individual and reliant on the particulars of each business and innovation under consideration.

When asked about the often lofty potential and promises of a quick returnon-investment, Vincent laughs.

“Do your own homework,” he says. “Lots of what grocers would look at have long learning curves. Technology doesn’t solve problems, it’s a piece of the solution. There’s probably training, process changes, all these different pieces, and technology is the main one, but not the whole thing.” ■

Grocers Hold Ground in California’s Evolving Political Climate

iStock

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

HOW THE INDUSTRY FARED IN 2023 AND WHAT LIES AHEAD IN 2024

By Tim Townsend

With the Legislature’s session complete for the year, the main storyline of 2023 was unquestionably labor organizations’ growing influence.

While unions have long held sway in Sacramento, they were able to capitalize on broad shifts in the Legislature’s political makeup and public support for unions reaching its highest point since the 1960s. The Assembly’s new Speaker, Robert Rivas, also helped spearhead some of the most progressive efforts, including a new $25 minimum wage for healthcare workers, that put many business groups on their back foot.

Despite the challenges other industries faced in 2023, the California Grocers Association’s (CGA) lobbying efforts were able to neutralize the most impactful proposals for members, with only one priority bill opposed by CGA making it into law.

However, given the new political reality in California, labor’s success is creating questions about how businesses will respond in the future.

NEW CLASS OF LEGISLATORS DRIVING CHANGE California has long been synonymous with liberal politics, but this year set a new tone. Democrats have controlled the State Legislature for decades, aside from a brief period in the 90s, and have held all statewide offices since 2010. Yet the business community traditionally provided a moderating force by working with centrist Democrats to stop bills that most impacted businesses.

A palpable shift happened after many long-time Legislators were forced from office due to term limits. Following the 2022 elections, nearly one-third of the Legislature was new. As the Legislature’s session unfolded, it quickly became apparent these new members would support significantly more progressive legislation than in the past.

A SHIFTING POLITICAL LANDSCAPE The California Chamber of Commerce’s “Job Killer List” has traditionally been highly influential, with any bill on the list facing an almost inevitable demise. From 2018 to 2022, no more than two bills on the Job Killer List passed the Legislature. However, in 2023, nearly 40% of the bills on the list were approved by the Legislature, while 21% were ultimately signed into law—the highest ratio since 2002.

On top of the new class of progressive Legislators, labor unions were riding a wave of momentum from the “Hot Labor Summer” that brought 53 strikes in California spanning Hollywood, hotels, the healthcare industry, and more.

“I attribute the victory to workers who were energized,” said Tia Orr, the executive director of SEIU California, in an interview with Capitol Weekly on labor’s success.

Lorena Gonzalez Fletcher, a former Assemblymember who now heads the California Labor Federation, told CalMatters, “The legislators are representatives of the people, right, and they see what we see. And that’s that unions are exceptionally strong right now.

They’re exceptionally popular among their constituents.” With the Continued on page 36 ▶

CAL I FORNIA G RO CER | 35

◀ Continued from page 35

Legislature welcoming a large class of new members, she added that the labor groups had strategically worked to elect candidates who helped unions pass a “really heavy agenda” this year.

and acquisitions. The bill’s original version was far more burdensome for the industry, and CGA was able to work with the author of AB 853 to settle the bill to a neutral place for the industry.

OUTCOME FOR CGA PRIORITIES—CGA 2023 SCORECARD ■ Senate Bill 725 Grocery Worker Severance Pay (Smallwood-Cuevas) Opposed/Vetoed ■ Assembly Bill 853 Attorney General Notice (Maienschein) Neutral/Signed into Law ■ Assembly Bill 647 Grocery Worker Retention (Holden) Opposed/Signed into Law This year, bills affecting grocers were not exempt from labor’s legislative push and faced a suite of three grocery-targeted bills from United Food and Commercial Workers (UFCW). However, CGA was able to negotiate critical changes that made proposals more reasonable or stopped them altogether.

One of CGA’s top priorities was defeating Senate Bill (SB) 725, a bill that would have required one week of severance pay for every year worked if the worker was laid off after a change of ownership. While the Legislature approved SB 725, the bill was ultimately vetoed thanks to CGA’s efforts, with Governor Newsom citing it as “unduly prescriptive and overly burdensome.”

CGA also achieved a favorable outcome on Assembly Bill (AB) 853, which creates a new notification requirement to the California Attorney General for grocery store mergers

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

The only significant setback was AB 647, which expands California’s Grocery Worker Retention Law when a grocer changes ownership. In addition to some other changes, AB 647 expands the worker retention law to also apply to grocery distribution centers. The bill was ultimately approved despite a coalition of business groups joining CGA in opposition, and the proposal was on the California Chamber’s Job Killer List.

However, given many industries’ unfavorable outcomes this year, losing one out of three of its main battles was a good result for CGA.

“ Thanks to our strong relationships and effective advocacy, CGA was able to navigate a difficult political environment to achieve most of our priorities,” said CGA President and CEO Ron Fong.

MINIMUM WAGE BILLS SHOW LABOR’S STRATEGIES Healthcare providers and fast food restaurants were some of the most impacted businesses, with new laws creating a $25 and $20 per hour minimum wage for each industry, respectively.

Both laws followed a long path toward their final approval. Healthcare unions pushed a patchwork of local measures across the state to create momentum for a statewide solution.

That strategy is similar to how plastic packaging rules started at the local level only to culminate in Senate Bill 54, the statewide plastic packaging law enacted last year.

With the help of Assembly Speaker Rivas, healthcare unions were able to pass the law despite it raising wage costs for the state.

Fast food workers achieved their $20 minimum wage after the Legislature passed a sector-wide bargaining measure in 2022, and fast food companies quickly qualified a referendum to challenge the law. After protracted negotiations, a $20 minimum wage compromise was reached to avoid an expensive referendum campaign.

The list of most impacted industries could have been far more extensive. However, the Governor vetoed several other high-profile labor bills, like one that would have required a human driver to be in self-driving trucks or another that would have expanded domestic workers’ rights.

WHAT IS AHEAD? Over the last decade, an informal group of moderate Democrats tended to hold disproportionate sway over the fate of the most controversial legislation. But their influence may be waning as labor unions have worked to elect enough of their candidates to negate the more centrist factions of the Legislature.

The new era of politics is also driven by the fallout from the pandemic, high inflation, and California’s rapidly rising cost of living.

The most prominent proposals have mainly dealt with wages or benefits.

In an interview with the Associated Press following the end of the Legislature’s session, the Senate’s leader, Toni Atkins, said economic conditions were driving labor’s agenda.

“ You consider the economy that we’re living in, consider what we’ve been through this last three years. I think workers and employees have really felt like they need more support and more help.

I think that resonated.”

GOING DIRECTLY TO VOTERS

With inflation beginning to slow down, whether unions continue to have success on these issues will be a trend to watch.

And with the Legislature more amendable to unions’ policies than ever, Governor Newsom will have an outsized role for business organizations looking to push back.

When efforts to influence the Governor and Legislature fail, going directly to voters has become an increasingly utilized strategy.

Similar to the referendum mounted by the fast food industry, oil companies have taken a similar tact on a law approved last year on oilwell setbacks—putting it on hold until voters can decide its fate in the next election.

Newsom vetoed the California Labor Federation’s most important bill, which would have extended unemployment insurance to striking workers—citing the state unemployment fund’s $20 billion debt.

Since employers will likely be on the hook to pay off the fund’s debt, the veto was an important win for the business community.

While the Legislature pushed through a new law slightly altering the referendum system, business interests will likely continue to follow this playbook until the political environment changes.

“Whatever Newsom’s political ambitions beyond the governorship may be, he clearly wants to be seen as an effective and relatively moderate figure,” observed long-time commentator Dan Walters in a column on Newsom bucking progressive priorities.

The state’s deteriorating fiscal situation could also cloud labor’s future priorities.

Dozens of bills were vetoed due to their fiscal impact, as the state’s budget passed in June projects a $68 billion deficit for the 2024/25 fiscal year.

Proactive ballot measures by businesses could also become more common. The 2024 ballot has a measure seeking to reform the state’s private right-of-action laws and a taxpayer protection initiative that requires voter approval of state tax increases—an initiative that will be a high priority for labor to defeat in 2024, according to SEIU Executive Director Tia Orr. Whether labor’s banner year is the start of an emerging trend or a one-off will be the question business groups grapple with in 2024. ■

Assembly Speaker Rivas added a similar sentiment when speaking to the Los Angeles Times. “We have an affordability crisis.

Middle [and] low-income residents of our state are struggling.”

iStock

CAL I FORNIA G RO CER | 37

GELSON’S UNVEILS NEW GROWTH STRATEGY WITH EV PARTNERSHIP

By Bill Romanelli

Even a grocery chain with a 70-year

history can show the power of innovation in identifying trends and meeting customer demands, while simultaneously planning for a new era of growth.

This past October, Gelson’s, an upscale independent grocer with 27 locations throughout southern California, announced a partnership with Rove—a commercial developer of electric vehicle (EV) charging stations—to offer food and beverage services at 20 proposed charging centers.

The concept, dubbed “ReCharge,” will offer a healthy selection of food, beverage, and convenience items, complementing a 40-station charging center featuring a lounge, Wi-fi and eco-friendly car wash.

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

Below that c-store surface, however, is much more than a modern, high-end take on the traditional gas station minimart. It’s a strategic approach to overcoming economic barriers to growth, reaching new customers, and embracing a more sustainable future.

“To grow, Gelson’s needs formats that will work where there is available real estate, but in southern California real estate that can accommodate our traditional stores is hard to find, and expensive,” says Yvonne Manganaro, Senior VP of Customer and Team experience at Gelson’s. “To make many of these development ideas work we need to partner with complementary concepts that offer multiple options for customers.”

Experts predict that approach will work for Rove as well. Large-format EV charging stations are still a relatively new concept, but competition is already emerging.

Adam Roseblatt is a founding partner of Bold Decision, a public opinion and market research firm that has been monitoring attitudes and trends in the convenience retail sector for years. Rosenblatt himself has been a research-based advisor to the National Association of Convenience Stores since 2010. In his view, the Gelson’s / Rove ReCharge concept presents two interesting benefits. First, it helps mitigate the risk for a grocery chain that’s weighing the risks of investing in EV infrastructure—at a time when even in California there’s not

Rendering of the new Rove EV charging center (Credit: Peruzzi Architects)

enough data or drivers to determine when (or whether) EV infrastructure will turn a profit. Second, by providing the convenience of groceries and fueling in one place, the combined ReCharge stations present a more appealing offering.

“ It’s a matter of customer preference,” Roseblatt says. “ Compared to a conventional charging center that only offers power, a concept that includes groceries and healthier foods in the same location is going to be more attractive to busy consumers.”

To increase that appeal, Gelson’s and Rove also plan to offer an app-based e-commerce experience, enabling customers to order ahead for pickup or have purchases delivered to their cars. The result is whether a customer needs a charge or not, or even whether they drive an EV or not, the ReCharge stations will help grow Gelson’s customer base.

Rosenblatt and Manganaro agree that in the higher-end grocery sector this is a groundbreaking concept, at least in the U.S., where the closest facsimile might be a Tesla Superstation. Some larger grocery chains have added EV charging slots, but have yet to integrate smaller store footprints with full-service charging stations. Likewise, most traditional gas station convenience stores cater to the “quick customer,” only looking for a drink, tobacco products, or snack food, and because of that rely more on fuel sales to drive visits. The Gelson’s model is different in that upscale grocers tend to have higher margins, and can use their differentiated product offerings to draw customers in, rather than just fuel.

There’s also proof of concept overseas—fuel stations that sell fresh, higher-quality food are common in Europe. That gives the Gelson’s team good reason for optimism.

“We saw a gap in this space where customers are seeking food that is both convenient and fresh, and realized we can be more responsive to neighborhoods at a hyperlocal level,” Manganaro says. “At the same

time, we think this concept has legs in larger metropolitan markets with an established base of EV users.”

Manganaro adds this strategy is helping make EV’s more accessible in California where, as Rosenblatt says, issues like “Range Anxiety”—concern about driving an EV at a distance out of reach of charging options— are still prevalent. Making EV charging more accessible by helping address this need contributes to Gelson’s overall corporate sustainability goals.

Development of six ReCharge stations is already under way, with plans for up to 20 in the coming years. Company leaders expect a learning curve as things move ahead, but are looking forward to the experience.

“With a traditional grocery store, there is more flexibility in trying to have a product find its legs, but in a convenience store shelf space is at a premium,” Manganaro says. “One of the bigger challenges we look forward to teasing out is the speed of product introduction and inventory turns.”

For more information visit Gelson’s online at www.gelsons.com ■

CAL I FORNIA G RO CER | 39

In late September, California Grocers Association hosted the Golden State’s grocery industry for its annual convention in Palm Springs. The Strategic Conference is where California’s grocery community comes together to make lasting connections and get inspired. We hope all who attended came away from our event with stronger industry bonds and new business leads.

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

This year we uncovered the grocery industry’s shifting priorities and explored fresh solutions and emerging opportunities for businesses, with help from our inspiring lineup of speakers and moderators.

On Sunday afternoon in partnership with Navigator Lighthouse Foundation, CGA hosted its second Emerging Brands Pitch Contest, where up-and-coming CPG contestants made connections with retail leaders for a chance to grow their business in California. Our event officially opened with a thought-provoking presentation by chef and Social Impact Entrepreneur Mark Brand who inspired attendees with his journey to building business beyond the bottom line. The Opening Experience flowed right into a lively reception where attendees had the opportunity to make connections with top retail executives in attendance.

Monday morning rolled around, and CGA President Ron Fong, Chair Dennis Darling, and Headline of The Illuminators Greg Siegel took the stage for their opening remarks to reflect on the Association’s 125 year anniversary and longstanding partnership with The Illuminators. Afterwards, we were joined by state legislators Senator Rosalicie Ochoa Bough and Assemblymember Blanca Pacheco for a fireside chat with CGA Board Member Michel LeClerc on the latest legislative happenings and hot topics like retail theft.

Continued on page 42 ▶

◀ Continued from page 41

General Session Keynote speaker Rohit Bhargava taught the audience the top five habits of non-obvious thinkers to help you see opportunities that others miss, and practice resilience.

The rest of the day consisted of hundreds of pre-scheduled business meetings, plus the Enterprise Risk Protection Executive Summit and the Independent Operators Forum, featuring IGA President John Ross.

Attendees unwound from the day at The Illuminators hosted happy hour.

Retail expert Michael Klein helped us kick off Tuesday morning with a presentation on keeping up with shifting consumer behaviors. Then, grocery veteran Tom Furphy joined Klein onstage for a fireside chat to give his take on digital, customer-centricity, and other disruptions.

Busy business meetings resumed and our final conference speaker left the audience with plenty of laughs. Comedian and entrepreneur Dena Blizzard delivered her stand up routine with relatable tales of motherhood, entrepreneurship, and her own evolving relationship with the grocery store through different phases of her life.

With the Strategic Conference in the rear view, we hope you feel more connected than ever to California’s grocery community and equipped to take on shifting priorities and new opportunities on the horizon. To all of our speakers, sponsors, partners, and attendees, thank you for contributing to the success of this year’s conference. ■

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

MARK YOUR CALENDARS FOR NEXT YEAR’S CONFERENCE ON SEPTEMBER 29 – OCTOBER 1, 2024 IN PALM SPRINGS!

2023 CGA STRATEGIC CONFERENCE SPONSORS CGA wishes to recognize and thank the many sponsors that helped to make this year’s conference a tremendous success.

PREMIUM SUITE American Licorice Company Anheuser-Busch InBev Bimbo Bakeries USA Bodyarmor Powerade C&S Wholesale Grocers CA GROWN Real California Milk Chobani Constellation Brands Happy Egg Co. Jelly Belly Candy Co. Kellanova Kimberly-Clark Corporation Molson Coors Beverage Company Polar Nestle Purina Petcare PepsiCo Procter & Gamble Reyes Coca-Cola Bottling/ Coca-Cola North America RMS, Inc. The Hershey Company The Jel Sert Company The Kraft Heinz Company Tyson Foods, Inc. UNFI

EXECUTIVE LEVEL Classic Wines of California GWFG Golden West Food Group Martinelli’s Unilever Upside

WI-FI Mercãtus

AFTER-HOURS SOCIAL Molson Coors Beverage Company

CONFERENCE LANYARD Instacart

CONFERENCE HOTEL ROOM KEY CARD Instacart

WHITEBOARD SESSIONS RMS, Inc.

THE OPENING EXPERIENCE Mercãtus

PRESIDENT LEVEL American Greetings/Papyrus Bluetriton Built CA Lottery Chosen Foods Del Monte Demand Tee Ecos FMS Ferrero USA Food Donation Connection Frito-Lay The Hershey Company Hippeas Hussmann Idahoan Foods Inmar KeHE Distributors Kind Brands Loacker USA Mark Anthony Brands NuCal Foods Post Consumer Brands Pre Zero The Shelby Report Shopper AI Supermarket News Tru Connect Truno White Castle WK Kellog Co. Wonderful Sales

DIRECTOR LEVEL American Farmers Network Barsotti Bay Cities Packaging & Design Blue oco Brand X Marketing & Sales Solutions Bunzl Certified Federal Credit Union Chemours Crown Poly, Inc DISTANT LANDS COFFEE Energy Cubes Eoslift Energy recovery Flowers Foods Gaviña Gourmet Coffee Green Gruff Harkins Popcorn & Snacks Hostess Brands In Good Hands Kern’s Lone Peak Labeling Monster Energy New York Style Sausage Company OK Produce Old Trapper OneWorld Beef Olyns Raptor Vision San Francisco Bay Coffee Sioux Honey Co-Op SMC Zero Waste Tahoe Blue Vodka Thrifty Ice Cream Tomra Torani Unified Protective Services, Inc. Vital Farms

CHARGING STATION Upside

CAL I FORNIA G RO CER | 43

WELLNESS

2024 Wellness Forecast

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

With 2023 coming to an end, all eyes are on 2024 and what’s to come.

• More people will be buying food in bulk, so bulk bins at grocery stores should be highlighted and added to weekly coupons.

Before we close out 2023, let’s review some prominent trends from the year. The post-Covid focus on health and wellness continued for many, with added emphasis on eating less sugar, cooking at home more often, and adding movement into the day, especially via strength training.

sugar intake, less take out and more home cooked meals. Dietary changes are the most important step in preventive health care and we need to keep that in mind as we head into a new year.

• An uptick in frozen produce, especially with out of season produce. Rather than spending $13 on strawberries in January, more people will turn to frozen fruits and vegetables.

Ready or not 2024 is right around the corner, here are my top 2024 wellness predictions:

• More unprocessed plant based options as budget-friendly alternatives to meat.

Nuts, lentils and beans cost less than meat but offer the same protein-packed punch, which is appealing to shoppers on a budget.

Meanwhile, a 6% increase in the cost of food affected people’s decision making process at the grocery store. I heard it during my nutrition sessions with clients, and noticed every time I looked at our grocery bill.

People adjusted their spending habits, swapping name brands for store brands or shopping at multiple grocery stores to find deals. In some good news for consumers, the USDA predicts food costs will increase by only 2.1% in 2024, which is more in line with historical norms.

Despite these rising costs, many are still determined to eat healthy to meet their goals.

Global wellness is an estimated $1.5 trillion market with an annual growth of 5 to 10%, so the opportunity for grocers and brands to align with this trend is massive. With health care premiums for employees expected to rise by almost 5% in 2024, I expect to see an even bigger focus on preventive health measures, including an emphasis on eating more whole versus processed foods, reducing 44 | CAL I FOR N I A G RO C E R

• Meal planning will become even more prominent, especially with families. Many people will be planning ahead not just their dinner, but what to bring into the office for lunch and will be eating breakfast at home more often.

• People will invest in good coffee beans and accessories to make their morning coffee at home as a cost-cutting substitute to their daily Starbucks run.

• Consumers will be looking for grocery stores to carry healthy alternatives to their favorite dressings, condiments, and beverages. A good example is a brand such as Primal Kitchen, who exclude added sugars and use heart-healthy avocado oil in their products.

• Date nights at home! I predict more stay at home date nights where people will try to replicate meals from their favorite restaurants and stream media vs. spending heavily on entertainment.

• With the focus on wellness, many people will be looking for foods with medicinal benefits like mushrooms and CBD, or alternative diets with added health benefits such as vegan, gluten free, or fermented foods for gut health.

With economic uncertainty mixed with increasing awareness of wellness and longevity, both trends align with the benefits of shopping at grocery stores to save money and eat healthy. Marketing should focus on this dual benefit for shoppers, and in-store promotions should follow suit. 2024 is sure to be another year of transition as we move further away from the pandemic and tackle its after-effects, and the grocery store experience will remain central to how the modern shopper supports their health and wellness goals. ■

CONGRATULATIONS

THANK YOU Dennis Darling Foods Etc. Outgoing CGA Chair

Lynn Melillo Bristol Farms Incoming CGA Chair

CAL I FORNIA G RO CER | 45

AWARD-WINNING COMMERCIAL AWARD-WINNING ARCHITECTURAL COMMERCIAL FIRM ARCHITECTURAL FIRM RKAA.COM | (602) 955-3900 | 2233 E THOMAS RD, PHOENIX, AZ (949) 954-8785 | 1151955-3900 DOVE STREET, SUITE 175, NEWPORT BEACH,AZ CA RKAA.COM | (602) | 2233 E THOMAS RD, PHOENIX, (949) 954-8785 | 1151 DOVE STREET, SUITE 175, NEWPORT BEACH, CA

ADA Compliance Reviews ADA Compliance Reviews Food Production Facilities Food Production Facilities

Exterior Facade Renovations Exterior Online Facade OrderingRenovations Design Online Ordering Design

Lighting & Rebate Packages Lighting & Rebate Packages Automated Distribution Centers Automated Distribution Centers

Site Entitlement Processing SiteRestaurant Entitlement/ Kiosk Processing Design Restaurant / Kiosk Design

Prototypical Design Packages Prototypical Design Packages Cold Storage Warehouses Cold Storage Warehouses

Nestled in the rolling hills of Sonoma County, California, Manzana Products has been Nestled the rolling hills of Sonoma County, has been crafting in premium apple juices and ciders since California, 1922. With Manzana over 100 Products years of expertise, crafting premium apple juices and ciders since 1922.

With over 100 years of expertise, we believe in maintaining the special taste that mimics biting into an apple just picked we believe in maintaining the we special tastefresh, that mimics biting into just picked from the orchard.

That’s why use only whole apples in allanofapple our recipes, and from the orchard.

That’s why we use only fresh, whole apples in all of our recipes, without added sugars or preservatives, you can surely taste the difference with every and sip. without added sugars or preservatives, you can surely taste the difference with every sip.

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

CAL I FORNIA G RO CER | 47

CGA NEWS

CGA HOSTS GOVERNMENT RELATIONS DAY IN LA In early November CGA members convened at the historic Reyes Coca-Cola bottling facility in Downtown Los Angeles for the Association’s In-person Government Relations Day. This year’s GR Day was an open forum for members to provide perspective and highlight challenges as we strategize together on top grocery issues and priorities for the year ahead.

At the top of the day, CGA’s state and local lobbying team contextualized the 2023 political playing field and set the stage for 2024. This year’s Legislature underwent massive turnover and there’s more to come with one-fourth of the Legislature turning over at the end of 2024. Local government will also experience high turnover in the 2024 election, with councilmembers and supervisors facing election and re-election. This crop of new faces will give CGA the opportunity to tell the industry’s on grocery-specific issues.

With crime plaguing grocery stores every day, a retail theft discussion was at the top of the list for GR Day. Together, attendees drew from personal experience to chart next steps to address rampant theft and employee safety concerns. To gain a sense of who may be influencing these conversations in the near future, CGA was joined by 2024 candidates Dr. Angelo Farooq (SD 31), Laura Richardson (SD 35), and Efren Martinez (AD 57) to talk retail theft and public safety and to hear their policy priorities.

Our group also had the opportunity to discuss concerns over retail theft with Sen. Josh Newman (SD 29), Co-Chair of the Problem Solvers Caucus. Sen. Newman provided an overview of the caucus’ 2024 priorities including strengthening moderate forces within the Legislature through leadership and committee appointments and taking on retail theft. CGA is actively engaging with the caucus and looks forward to strengthening the relationship.

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

CalChamber Policy Advocate Ashley Hoffman joined us for a labor and employment update to review 2023 legislation and help us anticipate potential labor mandates on the horizon.

Attendees had the opportunity to weigh in on environmentally targeted legislation that would effect carryout bags and packaging.

CEO of RMS Matthew Dodson provided an overview of the proposed recycling dealer cooperative model spearheaded by RMS for recycling compliance under SB 1013. The proposed cooperative model would engage retailers, recycling partners, and technology companies.

The Association is grateful to our attendees for their candor and engagement at this year’s GR Day. Your perspective and participation are invaluable as CGA works to create an ideal business environment for grocers in California. ■

CGA NEWS AND NEW MEMBERS

CGA HIRES DANIEL CONWAY AS VICE PRESIDENT, GOVERNMENT RELATIONS The California Grocers Association (CGA) was thrilled to announce the hiring of Daniel Conway as Vice President, Government Relations, effective Nov. 6, 2023.

In this position, Conway will serve as the Association’s chief lobbyist and be responsible for managing all aspects of CGA’s advocacy efforts. He will represent CGA member companies on strategic advocacy efforts before the State Legislature, regulatory agencies and local municipalities, as well as manage CGA’s government relations staff, contract lobbyists, and political action committee (PAC).

Conway will participate on CGA’s management team.

“We are thrilled to add Daniel to our government relations team,” said Ron Fong, CGA President and CEO. “His breadth of experience in California policy and advocacy combined with his knowledge of local government make him a valuable asset to spearhead and strengthen the Association’s legislative program.”

Prior to joining CGA, Conway led his own strategic political communications firm, Conway Strategies, where he worked on a variety of campaigns and issue areas. His recent work has focused on the state’s homelessness crisis, where he advised the LA Alliance for Human Rights on its groundbreaking federal lawsuit and lead the Yes on Measure O campaign in the City of Sacramento. Conway previously served as Chief of Staff to former Sacramento Mayor Kevin Johnson and as Legislative and Public Affairs Director for the California Restaurant Association.

Conway holds a Juris Doctor with a concentration in business law from the University of the Pacific, McGeorge School of Law, and a Bachelors of Arts degrees in history and political science from University of California, Santa Barbara.

“Daniel’s impressive background set him apart from a group of well-qualified candidates,” said Michel LeClerc, Chief Financial Officer, North State Grocery, Inc., and chair of the CGA Government Relations Committee. “His political expertise and strategic knowhow make him well equipped to represent the industry before the Legislature and navigate legislative and regulatory hurdles facing California’s grocery industry.” ■

NEW MEMBERS CGA welcomes the following member:

T&T Supermarket 123 Commerce Valley Dr E E Ste 800 Markham, ON L3T 7W8 Canada Contact: Tina Lee, Chief Executive Officer Phone: (647) 237-8113 Website: tntsupermarket.com

CAL I FORNIA G RO CER | 49

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

BY G RACE BECK ER

Snoop Goes Smokeless Snoop Dogg and Solo Stove sparked up a new partnership. In a mid-November tweet, Snoop vowed to “give up smoke,” seemingly referring to his infamous marijuana usage.

The announcement produced headlines and inspired plenty of fodder both online and off.

A few days later, the viral tweet was followed up by a commercial featuring Snoop as the official spokesman of Solo Stove, creator of the smokeless fire pit. Snoop is teaming up with Solo Stove to design a signature line of goods. A limited edition bundle on sale now includes a bonfire fire pit designed by Snoop, a fire pit stand, bucket hat and sticker pack.

SoloStove.com

Cyber Spending American shoppers broke records this Cyber Monday, spending $12.4 billion in online purchases—a 9.6% increase from last year according to Adobe Analytics.

Not to mention, Americans also set a new Black Friday record for online spending in 2023, ringing up $9.8 million—a 7.5% increase from last year. In total, online spending during the five days from Thanksgiving to Cyber Monday was up 7.8%, totaling to $38 billion. Though shoppers were slowing in early October, these cyber stats show the impact of discounts on shoppers amid an uncertain economy.

iStock

Chatty Bots

Meta.com

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

Meta introduced a new collection of chatbots modeled after faces you know well. Chatbots, which eerily share the faces of well-known celebrities, are available to chat with in Instagram DMs and Facebook messages. Intended to act as virtual friends, to young people especially, the bots incorporate Facebook’s in-house AI technology and Microsoft’s Bing search engine to use youthful words. How effective this is is yet to be seen. So far, a roster of 28 characters is available based on the likeness of celebrities including Kendall Jenner, Paris Hilton, Travis Kelce, Tom Brady, Snoop Dogg, Steve Buschemi, and more.

Cashierless, Checkoutless, Contactless Green Picks Market opened its first autonomous grocery store in Chamblee, Georgia. The cashierless, contactless, and cashless market targets health-minded shoppers short on time. Using frictionless technology and AI, shoppers scan the Green Picks app when entering the store and sensors and cameras throughout the store detect when a product has been picked up, set down, or carried out of the store.

Green Picks stores are intended for urban areas that require little parking so shoppers can run in and out.

Green Picks Market

iStock

Mainstreaming Mushrooms Mushroom-based products are finding their spot in the mainstream. According to Modern Retail, mushroom-based products are appealing to wellness-minded customers who are shopping for items that will offer benefits like immune support, cognitive function, and energy boosts. Modern Retail reports that this July, product intelligence firm Spins found that “super mushroom” food and beverage products saw a nearly 20% year-over-year growth at $642 million in sales. Mushrooms are making their way into a diverse range of products from coffee and beverages, to supplements, to baked goods.

Stanley Still Standing

Stanley, known for the revival of its insulated 1913 Quencher cup, has taken its durability to new heights. A TikTok video showing the aftermath of a car fire went viral when the creator revealed an unexpected survivor. Sitting among the remnants of the destroyed vehicle was a singed but perfectly intact Stanley Quencher cup with ice still inside. The video, which garnered more than 80 million views and earned the cup widespread praise, caught the attention of Stanley.

Company President Terence Riley responded with a video wishing the car owner well and pledging to send her new Stanleys in addition to fully replacing her vehicle. As you can guess, the act of good will earned Stanley even more attention.

Photo credit: @danimarielettering

CAL I FORNIA G RO CER | 51

CONGRATULATIONS

DENNIS DARLING FOODS ETC.

LYNN MELILLO BRISTOL FARMS

YOUR FRIENDS AT

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

Learn more: mercatus.com/mercatus-mobile solutions@mercatus.com

Where the bag... is going

Congratulations!

Aon is proud to congratulate Lynn Melillo on her new role as CGA Board Chair for 2024

Your trusted partner to prepare for California’s plastic produce bag ban in January 2025.

Reusable Bag Solutions Made Simple

Visit lotus-sustainables.com Contact us at info@lotus-sustainables.com

CAL I FORNIA G RO CER | 53

2024 CGA Events Calendar INDEPENDENT OPERATORS SYMPOSIUM January 7-14, 2024 Mauna Lani - Auberge Resorts Collection Kohala Coast, Hawaii (Big Island)

CGA STRATEGIC CONFERENCE September 29 October 1, 2024 Palm Springs Convention Center

GROCERS DAY AT THE CAPITOL April 3, 2024

CGAEF TOP SHOT @ TOPGOLF October 2024

Sacramento, CA

Southern California

CGAEF HALL OF ACHIEVEMENT Honoring Karl Schroeder, Safeway Northern California & Dennis J. Belcastro, Kimberly-Clark Corporation

SUPPLIER EXECUTIVE COUNCIL PROGRAMMING Store Tours: To be determined Winter Event: December 5, 2024

Spring 2024 – Northern CA

Throughout California

INDEPENDENT OPERATORS GOLF TOURNAMENT June 5, 2024

STORE LEADER TRAINING SEMINARS To Be Determined in 2024

Foxtail Golf Course Rohnert Park, CA

Northern & Southern California

CALIFORNIA GROCERS ASSOCIATION | 1005 12th Street Suite 200, Sacramento, CA 95814 P: (916) 448-3545 | F: (916) 448-2793 | cagrocers.com Questions? Contact Sunny Porter, Senior Manager, Marketing & Membership, at sporter@cagrocers.com.

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

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

CUSTOMIZED TR AINING FOR GROCERY INDUSTRY

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

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

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

English & Spanish Trainings Available

Purchase Today!

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

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

MOMMY BLOGGER

Kitchen Gadgets and Grocery Adventures K I M B ER LY R A E M I L L ER WR IT E R

Navigating Trends in the Grocery Aisles There’s a shelf in my garage adorned with dusty appliances, relics that once played a significant role in shaping our family meals for what felt like ages. I admit, there’s a lingering fondness for them, but the mere thought of hauling them back into the kitchen and dusting them off seems like an overwhelming chore. What I purchase for my family is often influenced by the current must-have gadget in the culinary world.

These trendy gadgets tend to reshape our cooking patterns and play a role in what eventually lands in my shopping cart, albeit sometimes just momentarily. I’m in a perpetual dance, adapting to my family’s ever-changing needs—the things my kids love and despise seem to shift daily. So, when stores can help bridge the gap and offer what I need, it’s a relief to spare a bit from my food budget for the convenience.

I’m not the type to fill out surveys or feedback forms—seriously, I’m juggling two kids and three jobs, time is a luxury I can’t afford. But when stores echo the evolving preferences shaped by these gadgets, count me in. And let’s face it, there are moms everywhere, sharing the same social media and Food Network-induced temptations that lead me to buy the latest Cook-o-matic 3000 or whatever’s in vogue. Just ask them!

Having specific sections dedicated to the latest trend in kitchen gadgets is a gamechanger. These areas are a treasure trove of information, guiding me through the latest innovations and offering practical insights, making my shopping experience richer.

Ultimately, grocers hold an incredible opportunity to meet the unspoken needs of shoppers like me. By seamlessly aligning their offerings with the ever-evolving trends in kitchen gadgets, they can elevate the shopping experience, even iStock when I might not explicitly vocalize what I require for these gadgets. Their astuteness and proactive approach can foresee the next big culinary trend and bring it to the grocery aisles, making my shopping escapades simpler as a busy mom on the move. ■

Can we all agree that it’s the air fryer right now? It’s practically a kitchen staple.

Well, maybe it’s the convection oven.

No, definitely the convection oven.

Remember when the crockpot was all the rage? I still pull mine out occasionally to whip up a stew, until I realize I have an Instant Pot, which gets the job done in a fraction of the time. I’m almost certain I have a sous vide wand tucked away somewhere that saw daylight once. There was a time when my go-to cooking method was everything on a George Foreman grill.

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

PET SPECIALTY

SUPPLIER PERSPECTIVES

E-Commerce and In-Store: The Perfect Pair with Pet Owners

In the battle for consumer dollars, these two work better on the same team.

By Joe Toscano, Vice President, Trade & Industry Development at Purina When it comes to e-commerce and in-store, it feels as though this has often been an either/or conversation – a “versus” instead of an “and” or “plus.”

While the pandemic took what was already a clear trend of growing e-commerce in pet care and put it into hyperdrive (it has accounted for 46 percent of growth in pet sales since 2019), some have resisted investing into the space, firmly focusing on existing brick-and-mortar operations. And it is an understandable position if you are coming from a place of defense, in the belief that one cannibalizes the other.

However, data show that, for pet owners, they do the opposite.

According to recent data from Nielsen IQ, pet consumers that purchase pet care items both in-store and online spend over 2x more than those that only purchase in-store. What’s more, this data showed that shoppers who buy both in-store and online from the same retailer also spend more than twice on pet at that retailer.

We’ve seen how the needs of pet owners have evolved in recent years towards more e-commerce, but we now see their needs change day-to-day. And that is why brick-and-mortar and online work in tandem, functioning best together, rather than at odds.

As you consider this strategy which embraces how the two channels complement, rather than compete with one another, keep the following in mind: • Meet pet owners when and where they choose to shop. Offering a variety of fulfillment options is how you can consistently be there for your customer, based on their changing needs. And your brickand-mortar presence should offer a full omnichannel fulfillment model that includes ship to home, BOPIS

(buy online, pick up in-store) and curbside pickup.

• Cross-promote. Let your customers know you are there wherever and however their pets may need you.

While in-store, remind them with signage in aisle of your online platform. And ensure your online presence includes details on your in-store happenings and community involvement, making those owned digital properties work harder for you.

• Leverage the additional digital shelf space. Just as you thoughtfully consider endcaps, think of your online presence as a mirror of your in-aisle selection. Position your best-selling pet brands prominently on your landing pages to extend their reach and visual impact. And let the “limitless” digital shelf space work to your advantage. Add large sizes or bulky items online for shoppers to fulfill when there isn’t enough shelf space in-store, especially for large bags of dry pet food.

• Make it easy. Fifty-six percent of shoppers say that using a site once motivates them to go back and shop there again. Offering autoship or auto replenishment will not only allow shoppers to save time and money, but it will also increase repeat buyers. Simplify the online checkout process and offer free shipping. Partnerships with services like Instacart® provide a turnkey way to provide these benefits to your customers.

By next year, it is expected that nearly a quarter of all pet care sales will be via e-commerce. And store-based retailers with an online presence are uniquely positioned to succeed. As the pet care category leader, Purina offers retail partners customized strategies to capture the valuable pet shoppers’ sale.

If you have questions or need assistance, reach out to your Purina sales rep.

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

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

cagrocers.com

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