California Grocer, Issue 2, 2021

California

viewpoint: the next 18 months PAGE 10

15 Minutes with Ben Nemtin PAGE 40 2021, ISSUE 2

CALIFORNIA GROCERS ASSOCIATION

connecting growers to retailers

PET SPECIALTY

SUPPLIER PERSPECTIVES

Help Us Keep Domestic Violence Victims and Their Pets Together Purina’s Purple Leash® Project

By Joe Toscano, Vice President, Trade & Industry Development at Purina For more than 90 years, Purina has been guided by the belief that pets and people are better together. I can attest that my own dog, Stew, has made my life better, and I cannot imagine having to choose between his safety or my own. Unfortunately, that decision is being made every day by domestic violence victims who want to leave but can’t because there is no safe place to go with their pets.

According to the National Coalition Against Domestic Violence, 71% of pet owners entering domestic violence shelters report that their abuser had threatened, injured or killed family pets. This is why nearly half of survivors will delay leaving abuse if they cannot take their pets with them.

As few as 10% of domestic violence shelters in the United States accept pets, and we want to change that.

We envision a world where no one is trapped in abuse because they can’t take their whole family with them.

The inspiration for what developed into the Purple Leash Project came nearly seven years ago when one of our associates read about the difficult decision that many domestic violence survivors with pets were being forced to make. It didn’t seem fair that pets, who may be the only source of unconditional love and support for a victim, weren’t being considered when it came to sheltering survivors. So, we decided to help.

After working to support New York’s largest domestic violence shelter for many years, in 2019 Purina took the step to make a national impact by creating the Purple Leash Project.

In partnership with the national nonprofit RedRover®, our goal is to raise awareness of the issue and increase the number of pet-friendly

domestic violence shelters in the United States. And we have committed nearly $1,000,000 to support the cause.

In addition to offering grant support for shelter upgrades, Purina is donating pet food, supplies and other resources for pet owners escaping abuse. We’re also advocating in D.C. for more federal resources for domestic abuse survivors with pets.

Since 2019, Purina and RedRover have gifted 21 grants totaling more than $375,000 to help equip domestic violence shelters to receive and care for pets, leaving survivors with more options when trying to flee a dangerous situation.

Now, 48 of the 50 U.S. states have at least one pet-friendly domestic violence shelter. The Purple Leash Project team hopes to work with domestic violence service providers in Hawaii and Rhode Island to close the gap. In the meantime, Purina and its associates are working to bring more awareness to this issue and increase the number of pet-friendly shelters

across the country, and I invite you to join us. Here are three ways you can help us raise awareness of the need for more pet-friendly domestic violence shelters across the country: • Use your social media platform to support survivors with pets using #PurpleLeashProject and highlighting one of the many sobering stats I’ve mentioned to start a conversation.

• Visit PurpleLeashProject.com to receive updates and learn more ways to get involved with the cause.

• Retailers can make an impact during the months of May and October by carrying special Purple Leash Project merchandising shipper units designed to drive attention and awareness for the cause and sales of Cat Chow®, Tidy Cats®, Beggin’® and Beneful® for our retail partners.

Contact your Purina sales rep to learn more.

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

We provide solutions to your toughest retail problems!

Contact us today!

818-817-6712

info@retailms.net

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS

Secretary Hal Levitt The Save Mart Companies

Chair Hee-Sook Nelson Gelson’s Markets

Second Vice Chair Dennis Darling Foods Etc.

First Vice Chair Renee Amen Super A Foods, Inc.

Treasurer Lynn Melillo Bristol Farms

Denny Belcastro Kimberly-Clark Corporation

Steve Dietz United Natural Foods, Inc.

Michel LeClerc North State Grocery Co.

Independent Operators Committee Chair

Elliott Stone Mollie Stone’s Markets

DIRECTORS

Kylie Bishop LaBrie The Hershey Company

Mary Kasper 99 Cents Only Stores

Joe Mueller Kellogg Company

Greg Sheldon Anheuser-Busch InBev

Jeanne-ette Boshoff Molson Coors Beverage Company

Saj Khan Nugget Markets

Ken Mueller Raley’s

Scott Silverman KeHE Distributors, LLC

Tyler Kidd Mar-Val Food Stores, Inc.

Bethany Pautsch Tyson Foods, Inc.

Rich Tovatt Smart & Final Stores

Nancy Krystal Jelly Belly Candy Co.

Subriana Pierce Navigator Sales and Marketing

Diane Snyder Whole Foods Market – Southern Pacific Region

Chris Podesto Food 4 Less (Stockton)/ Rancho San Miguel Markets

Josh Southerland Reyes Coca-Cola Bottling LLC

Mike Ridenour The Kraft Heinz Company

Rick Stewart Susanville Supermarket IGA

Jaclyn Rosenberg Nielsen

Joe Toscano Nestlé Purina PetCare

Jeff Schmiege Unilever

Richard Wardwell Superior Grocers

Jeff Severns PepsiCo Beverages North America

Karl Wissmann C & K Market, Inc.

Lori Brown Post Consumer Brands Elaina Budge Costco Wholesale (Bay Area) Pamela Burke Grocery Outlet, Inc. Willie Crocker Bimbo Bakeries USA Jake Fermanian Super King Markets Damon Franzia Classic Wines of California Sergio Gonzalez Northgate Gonzalez Markets Bryan Jankans Mondelēz International Inc.

CALIFORNIA GROCERS ASSOCIATION

President/CEO Ronald Fong Senior Vice President Marketing & Business Development Doug Scholz Vice President Government Relations Kelly Ash Senior Director Events & Sponsorship Beth Wright Senior Director Communications Nate Rose

4 | CAL I FOR N I A G R OC E R

Hillen Lee Procter & Gamble John Mastropaolo Chobani, Inc. Jonathan Mayes Albertsons, LLC Kelli McGannon The Kroger Company Mark McLean CROSSMARK Doug Minor Numero Uno Market, Inc. David Moore E. & J. Gallo Winery

Director State Government Relations Leticia Garcia Director Local Government Relations Tim James Director CGA Educational Foundation Brianne Page Director Administration & Human Resources Jennifer Gold Controller Gary Brewer

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 www.cagrocers.com For association members, subscription is included in membership dues.

Subscription rate for non-members is $100. © 2021 California Grocers Association

Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com For advertising information contact: Maria Tillman mtillman@cagrocers.com

CONTENTS | ISSUE 2

FEATURES

18 Plant Based Foods Shine in 2020 The CGA’s new partners at the Fresh Produce and Floral Council explain why plant based foods are here to stay.

COLUMNS President’s Message Getting Back to Business. . . . . . . . . . . . . . . . . 7 Chair’s Message The Descent. . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Viewpoint The Next 18 Months.. . . . . . . . . . . . . . . . . . . 10 Capitol Insider Somewhere Outside of Normal. . . . . . . . . . 13 Washington Report Threats, Risks, and Opportunities. . . . . . . . 14

24

Inside the Beltway Changes in Shopping and Legislation. . . . 16 Mommy Blogger The Sense Memory of Normal. . . . . . . . . . . 48

Life After Covid

DEPARTMENTS

The pandemic challenged the grocery industry’s enterprise risk protection community like never before. With eyes ahead, enterprise risk thought leaders explain where the sector will head after Covid-19.

Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 38 15 Minutes With Ben Nemtin. . . . . . . . . . . . . . . . . . . . . . . . . 40 Index to Advertisers. . . . . . . . . . . . . . . . . . . 45 CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 46

30 An Economic Tightrope From the drought and inflation to potential legislation, California’s produce industry finds itself in a precarious position.

CAL I FO RNIA GRO CER | 5

PRESIDENT’S MESSAGE

Getting Back to Business

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

As California returns to business as we knew it, let’s not forget the fantastic work of California’s grocery community during the pandemic.

When I packed up a few essential belongings from my office at the outset of the pandemic, my best guess was everything would return to normal within a few months – definitely by summer of 2020.

But we here we are, more than one year removed from that day, having experienced the unthinkable and only now approaching the pandemic’s conclusion. At least that’s the hope, as there are numerous positive signals to consider.

California’s economy has reopened.

The vaccination rate has progressed to a point where the Vaccine Community Advisory Committee, of which I was an appointee, has been disbanded. Masks are less frequently required for vaccinated Californians when heading out the door.

Restaurants, bars, and events have restarted.

People, generally, are able to gather again.

Importantly, our grocery community is reconnecting. In early June the Independent Operators Symposium was held in Hawaii.

It was just fantastic to see so many of your faces in person again, not to mention, the opportunity to get outside the house – heck outside the state. The Symposium is known

to be a great chance to refresh oneself, and I’d guess everyone in attendance was in need of resetting. Feeling reinvigorated, I’m looking forward to hitting the links with you all soon and participating in other in-person CGA industry events in 2021.

during the pandemic for the first time.

This reality differentiates the grocery community’s experience. From senior shopping hours and the overbuying frenzy to in-store social distancing protocols and mask procurement, in many ways the grocery industry went first. And the accomplishment of operating through these difficult times, innovating ways to keep Californians nourished and essential workers safe should not be forgotten as California gets back to business.

So as we begin to reconnect, let’s find reason to celebrate the industry. I’d love to connect with you in person. I’m fond of saying CGA headquarters is your building, and I mean it. I hope you’ll visit us soon – whether at the office or a CGA event. ■

iStock

Seeing everyone again in person was a great reminder that throughout it all, the grocery industry has remained steadfast.

Much of corporate America is adjusting to a reopened economy and many industries are tackling some of the issues we faced

CAL I FO RNIA GRO CER | 7

CHAIR’S MESSAGE

The Descent

H EE-S O O K N EL S O N G ELS ON’ S MAR K E TS

There’s only one thing left to do after you’ve summited: climb back down.

The pandemic has been a trying time for all.

From the intensity of keeping food stocked to the strain of protecting customers and essential workers during the pandemic, our grocery community has been stretched in unprecedented ways. And with the pandemic’s end in sight, we now find society and our businesses preparing to unwind after more than a year of build-up.

levels have been challenging. All of this begs the question of how we can be better leaders that empower our teams to recharge and re-engage as California reopens.

There will be difficult decisions along the way. How do we manage the vaccinated versus unvaccinated? What social distancing measures stay, and which ones go away? How do we reacclimate ourselves to a world that has grown used to physical disconnection? While some of these questions will be answered by policymakers, the grocery industry will also need to solve the challenges that stem from emerging from the pandemic.

• Integrity – Make sure that your teams know what your core values are and build trust. Model great behavior so people can learn and always be good for your word.

As someone who manages teams and policy, here are three areas of focus for me in the coming months.

Our Teams In my last column, I wrote about the characteristic grit, which I believe, has been integral to sustaining ourselves and our teams during the pandemic. But we also know willpower is finite and that stress

Warren Bennis, a leadership guru, said six specific qualities make us great leaders and, to constantly engage our employees and cultivate a good culture, we should possess these qualities.1

• Dedication – Have the dedication to spend time with whomever and whatever needs your attention. If your teams know that you are dedicated to their success and the company, they will follow you.

• Magnanimity – Give your team credit where credit is due. Be okay with defeat and let others retain their dignity if they at least tried. We can all learn from our mistakes.

• Humility – Foster humility and the ability to be vulnerable, which shows your team that you are human.

The importance of valuing everyone on your team shows that you are not narcissistic or arrogant, but human.

1

8 | CAL I FOR N I A G R OC E R

On Becoming a Leader, Warren Bennis

• Openness – Be open to listening to ideas and truly listen without shutting a team member’s idea down. This will build trust and psychological safety for employees to feel they can approach you and who knows, you may get the next great idea through team member feedback.

• Creativity – As Apple once advertised, “Think Different.” Look where it got them. Find different ways to look at things and encourage people to think outside the box. As we descend, and navigate all the changes Covid-19 brought forth, it is more important than ever to be creative.

Our Customers While the challenges of living through Covid-19 are unique to the individual, they are not unique in their existence within all of us in general terms. You can think of this period as one of “Peak Stress” for many.

At various points during the pandemic, we’ve seen how this stress spills into grocery stores. Whether it is the political debates around policies like the mask mandate playing out in the store or panicked customers overbuying, the shoppers’ relationships to grocery stores have changed drastically.

CHAIR’S MESSAGE

“While some of these questions will be answered by policymakers, the grocery industry will also need to solve the challenges that stem from emerging from the pandemic.”

Coming out of the pandemic, I believe grocers have a role to play in helping our customers reconnect with each other – hopefully around food.

According to Inmar Intelligence, recent data suggest our customers feel the impact of rising grocery prices beyond consumer psychology. This price sensitivity has led to seven in 10 Americans swapping grocers. In the next six months, we’ll have to focus on protecting market share and strengthening these customer relationships. The climb to the top of the mountain earlier in the pandemic and all of our hard work will be diminished if we do not strategize around these aspects.

We need to find unique ways to keep our customers engaged and ensure that our companies’ value propositions are worth their while. Additionally, our industry’s ability to pivot and accommodate shopper needs, such as higher investments in technology, will come out ahead when they provide solutions for our customers.

The online grocery segment will not revert to pre-pandemic levels and is here to stay.

Our Compliance Strategies While operating throughout the pandemic, grocers were asked to scale mountains of regulatory conditions alongside selfimposed measures to ensure the health and safety of employees and customers. From Covid-19 testing to aiding in vaccinations and spending millions on in-store health and safety solutions like PPEs and extra sanitation, in many ways, the industry built the playbook for continuing to do business after the pandemic.

Now that we are reopening the economy, we must come down from that mountain top, choose when, and think about disassembling or keeping procedures and in-store safety features. Our newfound attention will surely spotlight the grocery community should anything go awry or should the state experience any pandemic-related setback.

iStock

Grocers will have to be strategic. We know some customers may expect extended safety protocols while others hope to see life return to “normal” as soon as possible. We also know consumer expectations may not align with regulatory orders and conditions.

The navigation of all the changes will be a challenge. However, it will not be as daunting compared to what we had to do at the pandemic’s peak.

California’s grocery and food industry community has never climbed mountains that were higher than we did during the pandemic. I expect 2021 into 2022 will continue to test us all on our descent.

But one thing we can all be proud of is, “Together we are better!” ■

CAL I FO RNIA GRO CER | 9

VIEWPOINT

The Next 18 Months

K EV I N CO U PE F OUN DE R , MOR N IN GN E WS BEAT.CO M

Forget the last 18 months. You ain’t seen nothing yet.

The next 18 months, I would argue, are going to be a lot more difficult to navigate and a lot more challenging to survive if you are in the food retailing business.

That’s not to minimize what you’ve been through. The pandemic has been a tough slog, as stores dealt with all the logistical, infrastructural and personnel issues inherent in doing business as the Covid-19 coronavirus has an enormous impact on business, politics, and the culture. But let’s face it. At some level, if you were able to bring products in the back door, you are able to sell them to shoppers and send them out the front door (Note: If there are products you had trouble selling during the pandemic, delete them from your SKU count.)

Which accounts for the fact that so many retailers are going to have trouble meeting last year’s comps during 2021; most are comparing their numbers not just to 2020, but also to 2019 when they file their quarterly reports. They believe, and I agree, that this is a fairer comparison under the circumstances.

But…it seems entirely possible that the challenges of the next 18 months will have a lot of retailers yearning for those halcyon days when all you had to worry about was

10 | CAL I FOR N I A G R OC E R

whether the toilet paper truck was going to show up, and how to make sure everybody kept their masks on.

As the country moves past mask mandates, at least for those of us who are – or claim to be – fully vaccinated, there remain some considerable issues with which retailers have to deal.

There’s the rising costs of raw materials and the inflationary trends that have some economists worrying. There are the increased wages that companies are having to pay as they struggle to find sufficient numbers of people to keep their businesses operating, a problem that has been exacerbated by unemployment benefits that have made it less necessary for some folks to look for work.

At the same time, there seems to be a shortage of…well, just about everything.

One story I read said that shortages, attributable to a variety of causes, are affecting products that include ketchup and computer chips, chlorine and lumber, chicken and various metals. This is real stuff, folks. The lack of an adequate supply of computer chips means a shortage of cars that depend on them to run; but that’s okay

because there may not be enough steel to build the cars anyway. Which explains why the cost of used cars is off the charts.

Also can’t build a new house without lumber, which at least partly explains why the cost of residential real estate is so high in many markets. (I know a couple that lives in my town that decided to cash in on the trend and sell their home for a lot more than they would’ve gotten a year ago. Only once it was sold did they realize that they had no place to move to, and things were almost prohibitively expensive. Oops.)

All of this means that consumers may have less disposable income than they used to have, which affects retailers. At the same time, coming out of the pandemic, consumers are going to want to go to restaurants if only for the socialization experience, which affects retailers that got used to owning (or, to be more accurate about it, renting) a bigger than usual slice of share of stomach.

It all strikes me as a kind of perfect storm for many retailers. It is harder to get products, you have to charge more for them, you have fewer people to sell them, and you have to pay those people more money just to walk through the door.

Oy.

VIEWPOINT

“For stores to survive and even thrive in this perfect storm, they are going to have be laserfocused on their value proposition, which has to be constructed and deployed through a prism of relentless customer-centricity.” iStock

It brings me back to the beginning: The next 18 months, I would argue, are going to be a lot more difficult to navigate and a lot more challenging to survive if you are in the food retailing business.

Difficult. Not impossible. Not hardly.

For stores to survive and even thrive in this perfect storm, they are going to have be laser-focused on their value proposition, which has to be constructed and deployed through a prism of relentless customer-centricity.

Almost from the beginning of the pandemic, I have been writing – here and elsewhere – that retailers had to be different coming out of the pandemic than they were going in. That they had to use the crucible of a a national public health emergency that tested consumers and retailers alike to think about the products and services that really make them essential. In doing so, they had to identify and exploit the things that make them different, not the same stuff the competition sells.

Connecticut coast, well worth a 60-mile drive…or Mueller’s, a bakery on the New Jersey shore, 114 miles away from my front door, which makes a crumb cake so good that every once in a while I’ll hop in the car and brave the George Washington Bridge, New Jersey Turnpike and Garden State Parkway to buy a few.

Do you have such products?

The year 2020 was a nightmare year in many ways, and 2021 is proving to be what I’d call a transitional year. But next year, 2022 – which is only about six months away – has to be a transformative year as the food industry embarks on what may be one of its most competitive eras…ever.

Innovate around, to and for the customer.

Or die.

It may be just that simple. ■

I like to talk about the almost-local coffee shop that makes cinnamon buns the size of wagon wheels, so good that I’ll drive 12 miles to get them…or Walter’s, the iconic hot dog stand to which I am more than happy to drive 20 miles for two with mustard…or the lobster roll joint on the

CAL I FO RNIA GRO CER | 11

Serving Up the Freshest Eggs for Generations.

NuCal Foods Family Farms Producing California’s Freshest Eggs.

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

CAPITOL INSIDER

Somewhere Outside of Normal

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

California’s regulatory environment and Gov. Gavin Newsom’s recall are shaping how the state reopens.

Brown

The state has reopened, and we are starting to see the light at the end of the tunnel.

After 16 months of uncertainty and restrictions, grocers and everyone else are finally be able to return to usual operations with one major caveat – Cal/OSHA COVID-19 Prevention Emergency Temporary Standards (ETS).

Masks or no masks? Physical distancing?

Capacity limitations? Vaccine verification?

Terms that were once foreign to us, have become universal. We have adapted since last March, but now we are beginning to return to some normalcy and confusion is at an all-time high.

The night before its May Meeting, the CalOSHA Standards Board received a memo from CalOSHA requesting they delay action on the proposed modifications.

The Standards Board heard the issue and listened to more than six hours of testimony, which included many individuals requesting the Board to make the standard permanent, but ultimately agreed to postpone a vote.

The Board then held another vote, even more raucous than the last. The meeting ran late into the evening (more than nine hours) as it first rejected, then passed, an updated ETS.

All the while, Gov. Gavin Newsom telegraphed he hoped Cal/OSHA would revisit its new workplace rules, which it did on June 17.

It’s easy to see why. These modifications made some improvements, but also created two different worlds after June 15 – one for employees and one for the rest of California.

So, it was a positive development when the Board moved closer into alignment with the CDC a couple weeks later. With that being said, pre-Blueprint was always going to be different than pre-pandemic, and no one expected it to go away – meaning employers will once again be forced to make changes to current practices, continue some costly pandemic procedures and operate somewhere outside of normal.

While the Governor is preparing the state to reopen, he is also navigating through a recall.

A number of Republicans have thrown their name in the hat, but the Democratic party is holding strong behind Gavin Newsom.

We have seen a recall in recent years, but nothing quite compares to a recall during a global pandemic. Some might associate it with COVID restrictions, one expensive dinner party during a Stay-at-Home Order

or simply political party affiliation. Whatever it may be, Gavin Newsom will have to fight for his political life this fall and if he wins, again next November.

The odds definitely favor him with democratic registration outperforming republicans for the last few years.

However, it will be those decline-to-state voters, the fastest growing registration sector in California, that will ultimately decide the outcome of the recall.

This effort is much different than the recall of Governor Davis. At that time, the State was suffering record energy prices, rolling blackouts and an economic recession resulting in significant cuts to services.

Governor Newsom has a record surplus of $75 billion, a job approval rating hovering above 50 percent and the reopening of the economy after a devastating pandemic.

Not to say it will be a cakewalk, because the state is also facing an extreme drought which could result in many being told to reduce water use, an out of control homelessness issue and the potential for another record fire season.

It will be a long, hot summer and how the Governor maneuvers through these issues will more than likely have a greater impact on his future, than the pandemic. ■

CAL I FO RNIA GRO CER | 13

WASHINGTON REPORT

Threats, Risks, and Opportunities

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

Tax and labor issues abound as Biden pursues new Covid-19 agenda.

Since the onset of the Covid-19 pandemic, NGA has been advocating to Congress and the administration the critical need for technical assistance for independent community grocers that desire to participate in SNAP online purchasing.

This year ushered in a new Congress and presidential administration, including changes to which political party holds the majority.

Democrats hold a trifecta in Washington, with a slim majority in the U.S. House, a 50-50 split in the Senate with the tie vote going to Vice President Kamala Harris, and President Joe Biden at the helm in the White House.

Attention quickly turned to an aid package in which much of the debate centered around the scope of the bill, namely the spending levels and funding amounts of unemployment benefits. Leaning on the budget reconciliation process, Democrats passed a $1.9 trillion relief package, which was signed into law in March by the President. The package included an extension of a $300 per week unemployment benefit through Sept. 6, expanded the child tax credit for a year, and increased the maximum Supplemental Nutrition Assistance Program (SNAP) benefit by 15% through September.

Despite the continued challenges brought on by the Covid-19 pandemic and partisan politics, NGA remains focused on advocating on behalf of independent grocers throughout the country, ensuring their priorities are heard on both sides of the political aisle.

Since the onset of the Covid-19 pandemic, NGA has been advocating to Congress and the administration the critical need for technical assistance for independent community grocers that desire to participate in SNAP online purchasing. The program is technically challenging to set up, particularly for small and mid-size grocers.

President Biden began his first days in office with the signing of several executive orders aimed at addressing the Covid-19 pandemic, including increasing vaccine rollout and implementing mask mandates on federal properties.

The Consolidated Appropriations Act signed into law in December 2019 provided $5 million for SNAP online purchasing, and the American Rescue Plan signed into law this March provided $25 million to promote technological improvements for

14 | CAL I FOR N I A G R OC E R

SNAP online purchasing, modernizing the Electronic Benefits Transfer (EBT) system and supporting SNAP mobile payment technologies.

NGA will continue to support efforts to provide technical assistance to help more independent community grocers offer SNAP online purchasing.

This April, President Biden unveiled the next step in his “Build Back Better” agenda by calling on Congress to pass an infrastructure package. As proposed, the package laid out more than $2 trillion in federal spending on infrastructure and other domestic investments. The administration sees this as a one-two punch to not only provide the resources to revitalize the nation’s roads, bridges and other traditional infrastructure, but also as a job creation tool to help the country rebound from the economic downturn of Covid-19.

Included in the Biden plan is a list of tax increases proposed to pay for at least some of the more than $2 trillion in spending.

At the time of this writing, negotiations were still taking place between the White House and congressional Republicans to find a bipartisan deal, however Biden’s own party, specifically the progressive wing, were growing tired of the ongoing talks and urging the White House to move forward with a package that can pass with Democratic support.

WASHINGTON REPORT

With expectations that a package will likely include a variety of hikes on individuals and pass-through corporations, as well as hefty increases to the estate tax and lowering thresholds, “Main Street” businesses could inevitably be hit with a larger tax bill.

For many businesses, including grocers, the prospect of tax increases forces them to withhold capital that could be invested back into their companies, preventing them from hiring, renovating or expanding their stores, or upgrading equipment.

Another issue area that has captured headlines and the attention of lawmakers is the labor shortage. In May, NGA sent a letter to President Biden urging his administration to advance policies that

“NGA remains focused on advocating on behalf of independent grocers throughout the country, ensuring their priorities are heard on both sides of the political aisle.” encourage unemployed Americans to seek work and provide resources to businesses in need of help hiring talented employees.

Grocers have dealt with historically high consumer demand and, due to this, hired more employees, while at the same time implementing labor-intensive public health protocols. They also increased employee pay, provided additional overtime, and offered bonuses.

However, despite these efforts, the industry is currently at a crisis point, struggling to find qualified employees to keep grocery stores operational. NGA’s government relations team is working with the Biden Administration and Congress to address these issues.

For more information on these issues and how you can make your voice heard in Washington, DC, visit www.grocerstakeaction.org. ■

New King King isis InInTown.

A ANew Town.

Organic Sweet King Tomatoes A New King is In Town Best Tasting Vine Ripe Perfect Slices The Sweet King tomato is a proprietary seed producing vine ripe tomato Full Flavor like you’ve never tasted before. Every Sweet King tomato boasts Full Flavor, Deep Red Color in Every Bold RedSlice Color, and Perfect Slices. www.vegfresh.com The Sweet King is grown as nature intended: a smaller plant grown directly

Sweet King Tomatoes

in soil (not in a hydroponic growing environment). This results in a tomato that tastes like it was grown in your backyard – flavorful and authentic!

Try it on a BLT, a caprese salad, or a delicioius burger...these tomatoes turn any dish into a meal fit for a king!

For recipewww.vegfresh.com inspiration, visit vegfresh.com.

21072SweetKing_Ad_3.indd 1

5/20/21 4:12 PM

CAL I FO RNIA GRO CER | 15

INSIDE THE BELTWAY

Changes in Shopping a n d L e g i s l at i o n J EN N I F ER H ATC H ER S E N IOR V ICE PR E S IDE N T, GOVERNMENT AND PUBLIC AFFAIR S, FOOD MAR KETING INSTITUTE

Grocery customers aren’t alone in embracing online tools.

For more than 40 years, FMI – The Food Industry Association – has tracked the grocery shopping habits of U.S. customers through its U.S. Grocery Shopper Trends report.

The 2021 edition reveals that the future of food shopping has been fundamentally changed by the pandemic. At the same time that we are seeing seismic shifts in the way consumers purchase groceries, we are also seeing the same very significant shifts in how our legislators and regulators work in Washington and how we can continue to have an impact on their decisions.

Our U.S. Grocery Shopper Trends report confirmed what you have likely experienced yourself: Americans have spent more time in their kitchens, increased their focus on healthy eating, and have learned new ways to shop for food, including stocking up and purchasing online during the pandemic.

A wide array of legislative and regulatory actions in Washington have developed from these new fundamentals.

The first fundamental shift has been the tremendous growth of an online pilot project that allows customers to use their Supplemental Nutrition Assistance Program (SNAP) benefits online. The program

16 | CAL I FOR N I A G R OC E R

initially started in just three states and quickly expanded to 47 states in less than one year. Retailers and wholesalers have scrambled to be able to put technology advances in place and get the required certifications to take advantage of this change and offer the opportunity to their customers.

receiving school meals when schools were open. Recipients of P-EBT get additional SNAP benefit dollars added to their family EBT cards in consideration of the days when schools were closed and school meals were not available to them.

Finally, and most recently, the pandemic contributed to the evolution of an EBT-based summer feeding program for children. Each of these presents a tremendous opportunity for grocers to address some of these evolving needs of customers. Even companies not previously impacted significantly by SNAP or WIC shoppers found themselves working to address these customers’ needs because of the challenges the pandemic presented to a large segment of our population.

It is not only the policy programs of Congress and the Presidential Administration that have evolved, but the advocacy process itself looks different than it did before 2020.

iStock

The second fundamental change also involved a significant revision to SNAP necessitated by the pandemic – the introduction of the Pandemic EBT or P-EBT program for children previously

FMI held our first ever virtual fly-in and had over 200 video meetings with legislators – all without getting on a plane or spending a night in a hotel. A legislator recently told me that she had not met with her colleagues in-person in over a year.

She relayed this during a Zoom meeting while in her car.

INSIDE THE BELTWAY

“Americans have spent more time in their kitchens, increased their focus on healthy eating, and have learned new ways to shop for food.”

For the first time, proxy voting has been allowed in Congress, yet visiting a congressional office continues to be restricted.

However, at the same time that our legislators have been cut off from inperson interactions with colleagues and constituents, the needs for understanding have never been greater – on mandatory premium pay; the continued skyrocketing growth of both swipe fees and (for those with pharmacies) DIR fees and legislative efforts to stop them, the extreme challenges of attracting and retaining the necessary workforce due to government incentives for

the unemployed, and the keeping up with rapid and significant changes in laborrelated rules.

One important tool we put in place during the first week of the pandemic, that has stayed in place, is an opportunity to share and track all of these dramatic changes on both the business and policy side on a regular basis. These daily calls, which shifted into weekly calls, necessitated “trackers” for both consumer trends and policy changes.

FMI’s newly released, U.S. Grocery Shopper Trends, includes an online experience at www.FMI.org/GroceryTrends that shares

shoppers’ insights on how they define being well in their own words and more fully develops the work that was done to see the weekly evolution of the consumer throughout Covid with FMI’s Trends Tracker just as we also tried to do on the public policy front with the FMI | State Issues Crisis Tracker.

You can access the downloadable analysis, as well as highlights from our ethnographic research among shoppers and information about our June 2nd webinar at FMI.org/ GroceryTrends.

The past year and a half has been an unprecedented time for the country and the world. As parts of the country begin to reopen their economies more and more, we will begin to see whether the changes to consumer behavior and the advocacy process are short-term adjustments or longer-term shifts. ■

4 Reasons to Join the Fresh Produce & Floral Council

Become A Member of the FPFC Today!

There’s never been a better time to become a valued member!

The mission of the Fresh Produce & Floral Council is to connect members to the information, education and professional network they need to increase knowledge, grow their businesses and collectively advance the industry.

EXPO: The fresh produce and floral industry comes together at The FPFC Expo to discover new products and to form new partnerships and plan business strategies for success.

Professional Development: The Apprentice program provides a complete overview of the supply chain, as well as professional skills coaching and networking oppotunities to professionals looking to increase their knowledge of the industry and develop leadership skills.

Make a Difference: The FPFC supports four local charities each year at two annual luncheons. We support City of Hope, Feed Orange County, Second Harvest Food Bank of Orange County, and Caterina’s Club.

Networking: The FPFC hosts multiple networking events each year. Our events give Our members include growers, shippers, wholesalers, membership the opportunity to conduct business brokers, distributors and retailers of produce and/or floral. and build relationships with other industry professionals.

Fresh Produce & Floral Council 2400 E. Katella Ave. Ste. 330 Anaheim, CA 92806 info@fpfc.org / www.FPFC.org

CAL I FO RNIA GRO CER | 17

iStock

18 | CAL I FOR N I A G R OC E R

PLANT BASED FOODS Shine During 2020

Part of a new CGA collaboration with the Fresh Produce & Floral Council

BY TIM LINDEN

The adoption curve for plant based foods may have been slow, but now that the category has caught on with consumers, it appears unlikely to slow anytime soon.

The Plant Based Foods Association has revealed that the category grew a whopping 27 percent in 2020, doubling the very impressive growth number of the year before. In fact, U.S. retail sales of plant-based foods have grown 43 percent in the past two years, which is nine times faster than total food sales. The category reached $7 billion retail sales last year.

And there is no sign of a letup, though it is clear that the pandemic boosted retail sales, largely because the foodservice community experienced a significant downturn due to opening restrictions. Nonetheless, scan data reveals that 57 percent of all U.S. households, which represents more than 71 million units, purchased plant-based foods in 2020, a penetration increase of 4 percent of the nation’s households.

Many companies are capitalizing on the trend by growing their product lines and expanding their reach. The industry has many new players as well as established marketers taking advantage of the collective consumer’s desire to eat healthier and cut down on meat. Meat alternatives or products being marketed that way are leading the category.

Continued on page 20 ▶

CAL I FO RNIA GRO CER | 19

◀ Continued from page 19

One company established more than 30 years ago has seen a huge uptick in sales over the past five years. Jasmine Byrne noted that her mother, Kimberly Chamberland, started Big Mountain Foods in Vancouver, B.C., in 1987 as an ode to her vegetarian lifestyle. Jasmine reveals that her mother was the first to introduce a veggie burger to the Vancouver market. Sher largely worked in that region for 25 years but the company, with mother and daughter leading the charge together, has recently expanded into a 70,000 square foot facility and is selling more than a handful of products, led by its Cauli Crumble Veggie Grounds. It also has items that are broccoli and mushroom centric and a line of veggie sausage links. The company boasts that all of its items contain a minimum of 40 percent fresh vegetables.

In January 2022, Jasmine said the company will introduce an “innovative product that will put us on the map”, though she wouldn’t say more.

Bryne believes the plant-based trend will continue as it is being driven by a generation of Millennial consumers who are committed to living a healthier lifestyle and eating a diet that is more plant based.

“I think there is no limit to the category,” she said. “There is so much room for innovation and getting creative. The sky is the limit for meat alternatives.”

Bryne said it is the company’s preference that its products be marketed in the fresh produce department along with other value-added produce. She considers Cauli Crumble, Broccoli Boost Veggie Ground and Mighty Mushroom Bites to be akin to fresh cut vegetables and packaged salads. But she does say that the competition is the meat alternative category not whole cauliflower and other fresh produce.

“I think the plant-

based market is just beginning. People

are more aware of

eating healthy. Our

product is good for the gut and people

who are concerned

about gut health are our customers.”

Catherine Viera is head of sales and marketing for Curry Fresh, a plant-based offering of packaged Indian sauces and foods that have also been designed to be sold in the produce department next to tofu, fresh salsas and guacamole. The sauces utilize tofu, jackfruit and chickpeas as well as ginger, turmeric, garlic, cloves and other fresh spices.

The company was founded by India native Priya R Dass, who graduated from the University of Michigan with an MBA. Initially, he wanted to open a chain of Indian cuisine restaurants to bring his native culinary tastes to U.S. consumers.

Eventually, however, he decided to accomplish the same goal through fresh Indian sauces and dishes to

iStock

be sold in the supermarket in the produce department. Viera said some of the traditional Indian recipes were altered a bit to better fit the plant-based environment.

For example, coconut milk is being used instead of dairy-based liquids or chicken broth, and jack fruit and chickpeas are utilized instead of chicken and other meat.

The company initially launched in Michigan but is now selling its offerings in Florida as well, and has started working with a California food broker to introduce its product to Golden State retailers and shoppers. Viera expects the line, which is currently eight products strong, to launch in California by the fall.

She also believes that the plant-based movement is a lasting trend not a fad.

She said it represents a change in the way Millennials and others want to eat, which includes reducing their meat consumption.

Another company that pre-dated the trend but is catching its wave is Wildbrine. The company grew out of a project in Ceres, CA in the San Joaquin Valley to restore locally-grown organic produce to its proper place as the foundation of health for people, communities and the planet. The project used cabbage to create naturally fermented kraut products for cancer patients.

Eventually, partners Rick Goldberg and Chris Glab created the commercial product marketed under Wildbrine and have since added a dairy alternative wildCREAMERY. The main Wildbrine products are sauerkraut, salsa, sriracha and kimchi while the wildCREAMERY products are mainly a substitute for sour cream and butter. Goldberg said the company started commercial production about a decade ago before the plant-based trend had momentum, but their initial goal was always to provide healthy products utilizing plants.

“I don’t think we were visionaries,” he said.

“But we are passionate about what we do, and it is a philosophy. We live and walk the talk. We are plant forward.”

Continued on page 22 ▶

iStock

PBH has adopted the term plantforward, and published a guide designed solely to put more plants on the plate. “You don’t have to create anything new,” she said. “You can be compliant by simply adding more fruits and vegetables to your plate.”

◀ Continued from page 20

The company is committed to utilizing fresh products in its process such as whole ginger and Goldberg said they processed 10 million pounds of cabbage last year. “I think the plant-based market is just beginning.

People are more aware of eating healthy.

Our product is good for the gut and people who are concerned about gut health are our customers. Our product is taking off through gorilla marketing and becoming more and more popular.”

For the fresh produce industry, the plantbased food craze is somewhat of a doubleedge sword. The industry loves the concept as there is no sector that embodies the movement more fully than whole fruit, vegetable and nut producers. On the other hand, plant-based product discussion typically focuses on processed products and meat alternatives, as illustrated above. Whole and packaged raw produce often isn’t part of the conversation.

The Produce for Better Health Foundation (PBH), an industry organization dedicated to increasing consumption of fruits and vegetables, has taken a different approach to the plant-based trend. Wendy Reinhardt Kapsak, president and CEO of the organization, explains that it is an inclusive view, embracing all styles of eating that prioritize plants – vegetables, fruits, nuts, seeds, legumes and whole grains – without excluding other food groups.

22 | CAL I FOR N I A G R OC E R

“Plant-forward

diet is not about

excluding or limiting food groups. It is

simply about being more mindful of how to add and

enjoy more plants on the plate.”

She said a plant-forward diet is not about excluding or limiting food groups. It is simply about being more mindful of how to add and enjoy more plants on the plate.

“Flavorful fruits and vibrant vegetables, satisfying whole grains and a variety of wholesome, nutrient-packed foods such as legumes, nuts and seeds, edamame and tofu are the mainstays,” says the PBH guide.

“Low-fat milk and dairy products, seafood,

lean meat, poultry and eggs are also parts of this balanced diet and complement plant foods deliciously and nutritiously.”

PBH defines “plant-based” products more narrowly, preferring that the phrase be used to identify food product made with 100 percent plants, such as chickpea-based chicken nuggets or peaprotein burgers made entirely of plants.

Or nut milks and soy products. It also includes produce in any form, including fresh, canned or frozen. Kapsak believes the “plant-forward” message is inclusive as it is not as restrictive as a vegetarian or vegan diet and allows more people to achieve success in adopting a healthier lifestyle without too many rules. PBH has launched its “Have a Plant” movement to tap into the emotional connection consumers have to the fruit and vegetable eating experience while inspiring long-term, sustainable behavior change.

She said the movement capitalizes on the tailwind that is the plant-forward trend driven largely by inhabitants of Generation Z and Millennials, who are committed to eating healthier. Like the others interviewed, Kapsak believes the movement has legs.

PBH has a blueprint to help retailers launch plant-forward promotions and increase consumption of the category. “We’d love to see more retailers partner with PBH to have a plant-forward section that promotes fresh produce in an inclusive way that includes the whole store.”

She added that the plant-forward movement is a great opportunity for fresh produce companies to capitalize on the “large tailwind in our sails” and move the consumption needle forward.

For far too long, Reinhardt said the consumption of fruits and vegetables has been stagnant. “We are trying to lead the change.” ■ Tim Linden is editor of Fresh Produce & Floral Council’s quarterly magazine, Fresh Digest.

OUR NAME SAYS IT ALL Let us show you how we can be your one-stop produce solution.

Retail Whether you’re a national retail chain or a neighborhood bodega our experienced team of produce professionals understands how to meet your needs.

Wholesale Because we source products directly from our own farms and grower network, we offer a strong supply of popular, high-quality produce items at highly competitive prices.

Partnership Programs Variety and quality are the keys to success.

Our grower network makes it possible for us to deliver a full line of fresh-tasting fruits and vegetables year-round locally and nationwide.

Visit us at FreshQualityProduce.com Fresh Quality Produce, Inc. 2022 Violet St., Los Angeles, CA 90021

LIFE AFTER COVID:

iStock

24 | CAL I FOR N I A G R OC E R

How the pandemic changed everything for the enterprise risk protection community, and how it plans to move forward.

By Len Lewis Fire, flood, earthquakes, mudslides, droughts, blackouts, brownouts, retail theft – normal, albeit unfortunate events that have placed California retailers among the most resilient in the country.

But the 2020 pandemic – despite a light at the end of the tunnel – has irrevocably changed the calculus, making retailers more acutely aware of supply chain fragility, rapid fire shifts in customer behavior, the need for more efficient digital strategies and greater agility in planning to mitigate losses.

“Pre-pandemic, risk protection was largely about developing better business plans and hedging against easily foreseen challenges like local and state legislation and new regulations,” said, Mike Bowers, vice president of enterprise protection at Northgate Gonzalez Markets, emphasizing the risks brought about by softer penalties for retail theft and serial offenders.

But for Bowers and many others in the industry, 2020 was clearly the most challenging year of his career.

“Despite the challenges brought about by the pandemic, I believe we did an incredible job of taking care of people. We really had to think through the uncertainty surrounding safety from the health threat, but also prepare and respond to civil unrest. Even though we’re getting closer to exiting the pandemic, things are still quite uncertain with confusion over government guidance,” he noted.

With a keen eye on post-pandemic, Raley’s is focusing on staying ahead of the game, said Matt Hilbrink, senior director enterprise risk & asset protection. “We have our enterprise risk register to rank every risk in the organization on a continuum. It’s a very disciplined practice that involves everyone from the CEO all the way down the line to stores. This is what drives our decision-making for the year,” he said.

Meanwhile, the pandemic is changing the definition of what constitutes enterprise risk management. It’s still about identifying and assessing operational dangers. But the pandemic uncovered some flawed strategies that may require a new risk management framework and response, according to global insurance company Willis Tower Watson, noting that Covid-19 is directly shaping how companies view and manage risk.

“We expect the pandemic will drop from being the number one risk priority, but it will certainly remain in the top five along with cyber security, food safety, quality assurance, and workplace violence,” Hilbrink said.

But Raley’s is proactively tracking a list of risk issues throughout the organization, “We rank those risks and develop work streams and responsibilities.; we update them quarterly throughout the organization. The individual process owners in the company manage those risks daily and then report to a central group.”

Continued on page 26 ▶

iStock CAL I FO RNIA GRO CER | 25

◀ Continued from page 25

“We’ve had tremendous investments in PPE and different physical barriers to facilitate social distancing while enabling employees to have the flexibility to care for themselves and their families.”

But, we did it, worked through the challenges and got it right. And it was worth it to serve the community in that way.”

Retailers across the nation reported serious conflicts and even violence over mask mandates, according to Bowers. “We kept our people safe by implementing deescalation training. In this way, our leaders focus on problem resolution rather than viewing the disruptive person as the issue.”

Looking ahead Bowers sees numerous changes in pandemic related ERP. “The nation is going to focus on moving back to normality while still needing a strong sense of safety and well-being.

iStock

Hilbrink continued, “I help lead the enterprise risk governance committee and each leader is accountable for presenting the risks and work stream data to this committee. In turn, this group provides regular updates to Raley’s Board of Directors.

For Raley’s, everyone is considered a risk manager, we have created a decentralized and departmentalized process for those that are responsible. Sharing responsibility and accountability is the logical and responsible way of managing risk.”

Bowers noted that one of the biggest challenges retailers had to think through was how to manage social distancing and metering incoming traffic. “There was a greater focus on entry and exit points at stores. Many retailers had to direct traffic through one door to gain better control and enhance safety.”

The upside was a decline in subversive activity and inventory shrink. Some retailers are thinking about continuing this practice in new stores or modifications of existing ones for some type of traffic management, Bowers said.

26 | CAL I FOR N I A G R OC E R

Raley’s is among them. “We will likely have 70 percent of stores with a single entrance compared with about 10 percent before the pandemic,” said Hilbrink. “A single door provides shrink savings and has allowed the company to leverage other technology like validation of customer counts for building capacity limits, efficiencies in cleanliness standards, and better monitoring for stores that have guards or contract off-duty Police officers,” he said, noting that plans may have to be adjusted based on customer feedback and local regulations.

For Northgate and others social unrest took several forms and ERP was a major factor in protecting customers and associates.

“One of the first challenges during the pandemic was creating senior shopping hours. Letting some vulnerable populations in to buy food but not others could create unrest. We knew it was the right thing to do but had to figure out how to make it work because no one else had done it.

When we started senior hours the line was unbelievably long the first morning and it took several hours to get everyone through.

“Basically, best practices related to associate safety and health are here to stay. There’s also an expectation from customers about allaround store cleanliness.”

As Bowers noted: “People count on us to keep them safe and that had to be our first priority. We haven’t faced anything like this pandemic in decades. But there was greater collaboration across many companies who shared their security plans with each other and the CGA who stepped up in a big way to facilitate conversations with government.”

One other consequence of the pandemic, according to some observers, has been the escalation of active shooter incidences and a staggering 50 percent increase in inquiries about mass shooting insurance, according to figures from Marsh & McLennan, noting that retail establishments and restaurants are among the top clients for active shooter policies which have ranged in price from $1 million to $75 million.

But for most retailers, and others,it is the issue of the post-pandemic supply chain, which will impact pretty much every industry, according to a recent risk management article by Deloitte in the Wall Street Journal.

Technology may be the answer for mitigating some supply chain issues with critical suppliers. Overall, the disruptions caused by Covid-19 are spurring some companies to review long-term supply chain strategies.

“Organizations could establish a new model for connecting with and building relationships with third parties. A model that encourages more direct contact with critical providers on an ongoing, iterative basis may work well. Companies also could consider requiring providers to complete new questionnaires or surveys to gain more actionable data,” the article noted.

Supply chain issues, including alternative suppliers and products is also high on Hilbrink’s list. “The pandemic prepared us for supply chain interruptions that may have nothing to do with a pandemic in the future,” he said. “We’re looking at supply chain from the perspective of whether we can source and distribute products to stores outside our traditional distribution environment. So if we lost a key partner we’d have alternatives to support our stores.”

“However, the reality is this is disruptive.

If there is an alternative chicken supplier needed during an emergency, for example, some stores may only receive legs and wings depending upon supplier availability. They may not get split chicken breasts or rotisserie chickens for weeks. But our goal is to have at least some protein products available for our customers,” he said.

The bigger issue is who supplies the distribution center, according to Hilbrink. “It’s all about the manufacturing environment and their capabilities, a product might have had 30 flavors pre-pandemic but came back with only 10 or 15 SKUs post-pandemic. We may never see full offerings from them again because the manufacturers don’t see a need to produce them any longer. The supply chain has been disrupted from the manufacturer to the register and it continues to be a challenge,” he said.

Longer-term the industry will have to think strategically about e-commerce and digital transformation that goes beyond websites and record-keeping, industry sources said.

One issue has to do with the shift in population from urban areas to less densely populated areas that could force retailers to re-examine their store footprints and operations, according to a report by the Boston Consulting Group.

“Retailers can respond by doubling down on the use of data analytics to understand how their customers’ needs are changing and by modifying operations to address evolving needs,” BCG said. “We recommend they focus on distinctive value propositions, safe in-store experiences, and improved e-commerce offerings. At the same time, they should continue to manage costs as closely as ever, understanding that a postpandemic return to normalcy may be

both startlingly different and some time in coming. Consumer spending is accelerating due to growing consumer confidence and pent-up demand; but the recovery is uneven, and many consumers – and retailers – will be left behind.”

Meanwhile e-commerce, which exploded in 2020, is an essential part of the postpandemic future for all retailers, according to the Harvard Business Review, which cited statistics from the EY Future Consumer Index (Ernst & Young), showing that 80 percent of consumers are still changing the way they shop.

In fact, 60 percent are visiting brick and mortar stores less than before the pandemic while 43 percent shop more often online for products they used to buy in stores. The bottom line is that geographical location has become increasingly irrelevant with highspeed Internet connections.

A survey also revealed an almost overnight shift in e-commerce strategies by retailers from a top priority to a “desperately needed lifeline that could enable them to survive a global pandemic.” Retailers made approximately $10 billion in e-commerce investments, acquisitions and partnerships from May to July 2020. These investments spanned logistics capabilities to enable last-mile, asset-light approaches like ghost kitchens and dark stores.

Continued on page 28 ▶

“Technology may be the answer for mitigating some supply chain issues with critical suppliers.” iStock

CAL I FO RNIA GRO CER | 27

◀ Continued from page 27

There is also the issue of using stores as fulfillment centers for customers’ online orders. The EY index found that BOPIS (buy-online-pickup-in-store) would be used by 37 percent of consumers. “But curbside or in-store pickup can quickly lose its luster if consumers experience long wait times in a jammed up parking lot or if their local store inventory can’t accommodate their online purchases.

“The store as a fulfillment center can be an effective strategy, but requires systems and business units that communicate with each other to deliver on the promise,” the article noted.

The Index found that only one in five (21%) U.S. consumers say they are forgiving retailers and brands for service disruptions due to Covid-19. “In other words, the pandemic is no longer a reasonable excuse for not delivering orders on time. Today,

28 | CAL I FOR N I A G R OC E R

retailers are vying for limited shipping capacity in the last mile due to surges in online shopping. Even the most advanced e-commerce capabilities can’t conceal the importance of fulfillment, as delivery becomes a cornerstone of the experience.”

For many retailers, the pandemic meant rapidly adjusting their digital framework and capabilities. “We were very fortunate that Raley’s already had buy-online-pickupin-store (BOPIS) available chainwide, branded Raley’s ‘E-Cart’. During the Covid peak, some stores experienced 10 to 20 times the volume and some went to 30 or 40 times normal volumes in a couple of weeks following lockdown restrictions.

“We were committed to filling orders as best we could. Some of our competitors turned off their online customer facing systems to concentrate on their core in-store business because fulfillment rates were so low,” he

said. “But we never turned off a single location. We always filled a customer order with something and it turned out to be an advantage to build loyalty. We received great feedback from customers, even though the fulfillment rates may have been low. If you think back to that time in the Pandemic some of our elderly population and at-risk customers were fearful to go out in a public setting. For them, having the ability to receive online fulfilment of their grocery order, even a partial order, provided them with food and peace of mind.”

Hilbrink firmly believes the pace of BOPIS will continue and probably increase. “Some efficiencies and product offerings have to be improved. But we see tremendous opportunity and the system demonstrated such resilience that we know it was built on a solid foundation.” ■

To us, local means

California

We’re proud to offer more of what Californians are looking for – from locally grown produce to California-raised USDA choice meat.

Long before local was cool, our family of stores made it a priority to buy direct from local growers. In fact, some of our current relationships with farmers started over 60 years ago.

We’re working hard to be The Golden State’s favorite grocer. And we’re proud to employ more than 76,000 hard-working, talented Californians in our stores and other facilities..

To us local means…

fresher | better | California

AN ECONOMIC TIGHTROPE:

iStock

The State of Produce in a Reopening Era

Across the produce industry, all eyes are on costs and consumer demand as more shoppers get fully vaccinated and increasingly emerge from quarantine.

But there’s no crystal ball to guide retailers, growers, distributors and buyers over the next year as the world starts to return to “normal.” During this time, leaders will simply rely on the known factors about food prices, fluctuation and how to interact with the supply chain.

And if you add in the wild cards of labor shortages, weather, legislation and transportation woes, the process of getting to market seems fraught with risk, as any number of events could derail processes and create an economic tightrope.

A 2020 report from the Food Marketing Institute – titled Fundamentals of Food Prices: Cost, Consumer Demand and Covid-19 – lists fresh produce as one of the most variably-priced categories in the supermarket.

The report notes, “Commodity prices are trending upward, and are highly volatile…Supply side factors tend to dominate when trying to explain retail food price variation.”

There are, of course, factors within product categories that drive prices to change at the micro level, such as trends and product formulations.

The report goes on to say, “Food price changes, especially in the short run, are usually attributable to supply side factors, with the most important of these being input costs.”

With the state reopening, those costs and the supply side factors are about to change as the market returns to some semblance of normalcy, a reality that Dr. Ricky Volpe has focused on.

Volpe has a depth of experience forecasting retail food prices and inflation.

Upon completion of his Ph.D., he worked as an economist at the USDA Economic Research Service.

In his current role in the Agribusiness Department at Cal Poly, Volpe teaches courses on food retail, supply chain management, transportation and logistics.

It is his knowledge in those areas that drives his thoughts on the changes that await in the market.

“The food supply chain is about to get competitive again,” Volpe says. “For the last 11 months, retailers didn’t have to compete across channels, and as things now open back up, restaurants will be clawing to get their market share back to pre-pandemic levels. And they’re going to do whatever they can to make that happen.”

Continued on page 32 ▶

CAL I FO RNIA GRO CER | 31

◀ Continued from page 31

With any fresh produce, there is a labyrinth of factors that influence the price of each item between the farm and the table. These factors and challenges impact three major segments of the supply chain for all products: production, processing and retail.

But what do those elements look like as we head into the second half of 2021? Here is a breakdown of the state of produce as the market finds its footing after a pandemic year riddled with upheaval and lockdowns.

fryers and instant pots to cook all manner of meals? And if yes, how will that impact the produce department?

“Produce is an ingredient-based department, so people getting more intimate with cooking is what we ultimately want,” says Michael Schutt, the Director of Produce & Floral for Raley’s Family of Fine Stores.

“We’re watching the air come out of this balloon that saw more people cooking at home and are wondering what the retention is going to be now that there are abundant restaurant reopenings.”

“With any fresh produce, there is a labyrinth of factors that influence the price of each item between the farm and the table.”

“I’m not aware of shortages that continue to impact the perimeter of the store,” Volpe says. “The majority of the shortages were in the center aisles for UPC-coded, shelf-stable items. Most of the large retailers are able to keep those items in appropriate stock at this point, and have been doing so for a while.”

Schutt remembers how precarious things got when the pandemic hit since there were a few weeks when he scrambled to keep produce inventory in stock at Raley’s.

The changes in supply also had a benefit, according to Schutt.

“We weren’t hit as hard on the fresh side, and we were flexible to support our partners that had surplus originally intended for food service,” he says.

The collaboration with suppliers was mutually beneficial. And the recovery didn’t take long as two things happened in tandem – the intersection of plantings came on and demand slowed.

The Consumer Price Index, published by the Bureau of Labor Statistics, shows that Food-At-Home (grocery) prices increased by 1.2% between April 2020 and April 2021.

Looking back to April 2018, grocery prices have increased 6.09%.

In April 2020, the Food-At-Home (grocery) consumer price index increased 2.7% in just a single month, the largest monthly jump in grocery prices since the 1980s.

iStock

The Covid-19 Footprint The pandemic-related factors that will continue to impact grocery retailers, even amid widespread reopenings, are nuanced.

How many people will continue to work from home, and how will that affect foot traffic? How many restaurants and smaller grocers will be permanently shuttered?

The quarantine has certainly created more intense demand for products related to preparing and eating food at home, and shoppers have taken the opportunity to hone their cooking skills. Will these consumers continue pantry-loading with their newfound love of baking bread and firing up air

32 | CAL I FOR N I A G R OC E R

Schutt says a similar pattern emerged with the economic downturn in 2008, and it took some time to normalize once everything settled.

“Customers need to find their individual comfort levels, so we may see these patterns remain a little longer,” he says.

Schutt predicts that, even with the reopenings in California, there will be at-home cooking “stickiness” well into fall this year.

One element that has seemingly stabilized are the food shortages that left shelves famously bare in the spring of 2020.

But the banner retail numbers don’t represent the full picture of how these changes impacted grocers.

“Of the money made in the grocery channel, a substantial amount, and I can’t over-exaggerate the word substantial, was reinvested back into modifying the store and paying people to clean,” Schutt says.

“It chewed up a lot of the extra money coming in through the grocery channel.”

Raley’s, like most companies during the pandemic, has made investments to protect its products and employees from Covid-19.

Continued on page 35 ▶

Helping our oceans thrive.

Our commitment to sustainable seafood makes a positive impact on the oceans – and your dinner table.

Responsible Choice seafood is: Sustainably wild caught with minimal impact to ocean habitats.

Responsibly farmed with minimal impact to the environment.

Third-party audited to ensure highest standards.

For more info go to: Albertsons.com/responsiblechoice

We are committed to ending hunger in our communities and eliminating food waste in our company by 2025.

Follow our journey at

TheKrogerCo.com and #

◀ Continued from page 32

Such industry adaptations increased labor costs while manufacturers often worked with smaller shifts of workers in production facilities to ensure physical distancing.

iStock

In response to the perception about grocery retail enjoying large profit margins, Schutt says, “It’s good, but I wouldn’t say it’s great.”

Dry Spell Another factor that will affect the state of produce is the impending dry spell in California. Indeed, the information coming from the U.S. drought monitor doesn’t look particularly optimistic for farmers.

The state is divided between the severe, extreme and exceptional drought classifications. In May, Governor Newsom expanded the drought state of emergency to 41 of California’s 58 counties. While Mother Nature has long been an unpredictable element for growers, one that further exacerbates their stress around water access, all of this has potential impacts on grocers as well.

Schutt hasn’t seen direct impacts at Raley’s just yet, however.

“We’ve had a fairly stable growing season – not too cold, not too wet,” he says. “There will be a good crop of cherries this year.”

Schutt explains that, when things get dire, you hear about farmers “farming” water, selling their water rights to other farmers.

“Row crop farmers can choose to not bring in a crop or to plant less,” Schutt says. “Tree and vine farmers don’t have that option.

As a result, we could see the price of table grapes, stone fruits and cherries rise quickly if the drought is as severe as, or worse than projected,” he says.

Volpe takes a more holistic perspective in considering how drought may impact food prices.

“If you track corn prices, you track food prices,” Volpe says. “A coastal drought is very different from an inland drought. At least 75% of our food in the supermarket has corn in the product or the production process requires some form of corn, such as feed, corn flour, cornstarch and/or corn syrup.”

“As a buyer for Raley’s, Schutt is watching the drought situation closely, including and especially its impact on the supply chain.”

From an economic perspective, Volpe points to the 2011 drought in the Midwest as an indicator of what price changes might look like. He says that although a drought in California will impact commodities, retailers can shift to a global commodity market to augment the state-side supply chain. As a result, a California drought is only going to have a marginal impact on food prices for a representative consumer.

“It would surprise me if food prices accelerated from just a California drought,” Volpe says. “It’s almost mathematically impossible. But if the drought continued for multiple years, that could shift to a point where food prices would start climbing.”

As a buyer for Raley’s, Schutt is watching the drought situation closely, including and especially its impact on the supply chain.

“It hasn’t been as dire this year as it has been in some past years. But if we’re still having this conversation in three to five years, it’s going to be a big problem,” Schutt says.

Labor Pains The economics of produce will also be affected by the agricultural workforce, which started shrinking long before the pandemic hit in 2020.

A mix of declining interest in the field among younger workers, increasing competition from other industries like construction and limiting government policies have all decreased access to labor.

Since the pandemic, immigration has slowed as well, which has made a dwindling labor pool even smaller. These factors have left a lot of produce lying unpicked in fields.

The future outlook over the next decade doesn’t look much more promising, either. In fact, the Bureau of Labor Statistics projects only a 1% growth in agricultural workers between 2019 and 2029. That’s only a quarter of the 4% growth projected for the total of all other occupations.

The only exception is in the employment of agricultural equipment operators, a field projected to increase by 11% between 2019 and 2029. This expected growth is due to the advancement in automation and robotics, both existing advancements and those that will come to fruition over the next decade.

Assembly Bill 710: Is the juice worth the squeeze?

In early 2021, California Assembly Bill 710 was introduced, and if passed, the bill will specify new requirements for the sale of some agricultural products in the state.

Continued on page 36 ▶

CAL I FO RNIA GRO CER | 35

◀ Continued from page 35

iStock

“The bill would prohibit a retailer from selling some agricultural products unless they were produced in compliance with specific California health, environmental protection and labor laws.”

This list includes fresh or value-added fresh apples, asparagus, bell peppers, blueberries, dates, honeydew melons, lemons, nectarines, olives and table grapes.

The bill would prohibit a retailer from selling some agricultural products unless they were produced in compliance with specific California health, environmental protection and labor laws. In addition, the bill would require the Secretary of Food and Agriculture to adopt regulations to administer and enforce these requirements.

In an Assembly Agriculture Committee meeting on Thursday, April 15, representative Eduardo Garcia said, “Farmers in this state produce fruits, vegetables, nuts and meats in accordance with state pesticide, labor and minimum wage laws. Complying with these laws without a doubt increases costs, but provides real benefits to the health of consumers, to the environment and to the workers who produce these goods.”

He also elaborated on why the committee selected the listed products.

36 | CAL I FOR N I A G R OC E R

“I understand the concern about the ability of grocery stores to source these products year-round,” Garcia said. “But we specifically chose this list of products because a lot of them, if not all of them, are grown yearround here in California.”

Volpe says that, as an economist, he’s trained to think about the potential unintended consequences of any piece of legislation. He points out that retailers’ margins on most products are thin, and if the transaction acquisition prices go up, the corresponding increases will be passed along to the consumer so that retailers’ margins don’t take a hit.

“I’m curious if this is going to make produce more expensive,” Volpe states. “If so, that may have implications for food access and food security.” He also questions what rising prices will ultimately mean for families who receive SNAP benefits since high prices could limit a family’s ability to access fresh fruits and vegetables.

iStock

Powering Forward Even with the backdrop of constant changes, severe weather, labor shortages, new legislation and pandemic-induced pandemonium, the grocery retail industry is adapting and meeting ongoing demand for produce, as it has for decades past.

Shelves have been restocked. With the vaccine proliferation, manufacturing facilities are also starting to run at expanded capacity and technology continues to assist where possible.

While those are all promising signs, the future will likely remain an economic tightrope that grocers will need to continue to navigate. The long-term impacts of the pandemic remain largely unknown, but the last year has clearly shown that the grocery industry is nothing if not resilient. ■

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

iStock

Cherries Blossom

Fresh cherries from the southern-most growing area in California are moving north and it like a banner year for the category, according to an interview in The Packer with Chris Zanobini, Executive Director of the California Cherry Board. “We’re looking forward to 2021 being an excellent year in terms of both volume and quality,” he said. Essential workers got the industry through last year’s harvest and packing season and California cherry packers reached out to health officials and began a relationship targeted at protecting those who work in the fields and packing facilities, Zanobini noted.

iStock iStock

Walmart Canada is juicing up its fresh and frozen operations with a $56 million distribution center in Moncton, NB – the chain’s first in Atlantic Canada. The facility will serve all 43 stores in the area and will create 200 jobs inside the facility.

Vegan Makeup

Chipotle and e.l.f. Cosmetics are introducing a new makeup collection that includes 12 shades of eyeshadow inspired by ingredients such as rice, beans, salsa and guacamole, Ad Age reports. There’s also “Make It Hot” lip gloss, an “Extra Guac” sponge set and an “Eyes. Chips. Face” makeup bag.

The vegan, cruelty-free products are being sold by both brands on their websites starting March 10, and on virtual shopping platform NTWRK, the magazine said.

38 | CAL I FOR N I A G R OC E R

The Great White North

Intelligent Produce Walmart’s Intelligent Retail Lab (IRL) in New York is working to refine intelligent inventory management – a shopping environment to explore AI using that uses sensors and cameras to track purchases in its farmers market section – move that supports fresh produce from community farms while lowering the carbon footprint.

iStock

OUTSIDE THE BOX

Down in Flavortown For consumers looking to give their taste buds a jolt, spice blends most of which are rich in disease-fighting antioxidants, are the key, an article in the Men’s Journal reports, pointing to artisanal fusions like Asian-influenced Umami mixes or Mexican adobo spices and chili powders infused with pineapple and citrus. iStock

iStock

Farmer’s markets, once considered a social event and a community gathering place, became an essential source of food during the pandemic that was considered safer than the local grocery store. The markets have also become a valuable backstop for farmers and manufacturers who lost their foodservice sales virtually overnight. According to surveys by Stanford University, popularity of farmers markets escalated as producers redirected food from wholesale to direct-to-consumer channels, and farmers found new ways to collaborate to generate revenue and keep food from going to waste.

A New Era

Cu lin ary H u stle Off-premise dining isn’t slowing any time soon. In fact, it’s bigger than ever with consumers on pace to increase the $486 billion spent last year and more restaurants opening ghost or virtual kitchens to produce and deliver a wider variety of edibles. Millennials are driving the business, according to research showing four in 10 are ordering from restaurants at least twice a week – a group labeled “restaurant enthusiasts”. And 38 percent of these are high-income customers.

Esse ntial Se rvice

iStock

iStock

2021 may be the International Year of Fruits and Vegetables, but the next five will be one of conscious consumption, according to recent article in AmericaFruit magazine. This initiative seeks to transform fruit and vegetable consumption from conscious eating into an unconscious or automatic behavior among consumers.

Eating More OR Less?

A State of the Plate report by the Produce for Better Health Foundation indicates that total produce consumption is down 3 percent with vegetables off 4 percent. On the other hand, a report from the California Agriculture department by iStock the Giannini Foundation, says Americans are eating more fresh vegetables.

None of this takes the pandemic or its long term implications into account.

CAL I FO RNIA GRO CER | 39

40 | CAL I FOR N I A G R OC E R

1 5 MINUTES WITH…

Ben Nemtin PRO DU CER, WRITER, S PEAK ER

2021 Independent Operators Symposium features Speaker Ben Nemtin shares the lessons learned from a decade spent pursuing the items on his bucket list.

California Grocer : Can you share what the journey looked like from university student to “The Buried Life” TV show and becoming a New York Times’s “Best Selling” author?

Nemtin: In university, my friends and I felt buried. We felt buried by school, by work, and by the day to day. As a result, we weren’t doing the things that we truly wanted to do and we weren’t happy.

My friends Dave, Duncan, Jonnie and I got together and decided we were going to do something about this void we were feeling and asked ourselves the question, “What do you want to do before you die?” We made a list of 100 things to do before you die and decided that for every item we crossed off of our bucket list, we would help a complete stranger accomplish something on their list.

Serendipitously, Jonnie was assigned a poem in English class called “The Buried Life,” which articulated our feelings to a T, so we decided to call this project, “The Buried Life.” We borrowed an RV, bought a second hand camera so we could film the journey and hit the road for two weeks one summer to tackle our list. What happened next was a mix of luck and magic.

People started to hear about our mission and wanted to help. Total strangers would contact us and offer to help us cross items off our list, and on the flip side, people would send us their biggest dreams asking for our help. That two week road trip has lasted over 10 years and it has become a philosophy to live life by: prioritize the things that are important to you try not to get buried. Since then, we’ve crossed off items we thought were impossible, like #53: Make a TV Show, #19: Write a #1 New York Times Bestseller and #93: Play Basketball with President Obama. We’ve helped countless folks over the years and have learned that this resonates even more than doing things for yourself.

Do you think it is important for everyone to have a bucket list and why do you think it is important?

Definitely. At its root, a bucket list is a list of the most important things you want to do in your life. In other words, it is a list of things that you think will bring you the most fulfillment and happiness. It’s important to stop and think about what you truly value.

A lot of people have never done this. It’s important to write the list because that helps you prioritize these things that deserve your energy and attention. So at a very basic level,

a bucket list forces you to think about what’s important and reminds you to take steps towards those things.

A lot of people just don’t know where to get started. Are there any secrets that work for you and the guys that you can share with us in terms of getting things checked off a bucket list?

That’s very common; here are five steps that will help you cross things off your bucket list: Think About What’s Important: Before you start your list, make sure you’re going after the right things. Think about what’s important to you, not what’s important to your friends, your family or the people around you. Listen to your gut and your heart. What excites you?

What makes you feel butterflies in your stomach just thinking about it? Get used to hearing people say you can’t do it. If people say that you’re crazy, that’s a good sign. If you’re scared, even better.

1. Write it Down: The act of writing it down means you’re taking an idea in your head and you’re making it real. You’re taking something that’s intangible and making it tangible. This gives your dreams their first breath of life.

2. Share: If you don’t talk about your list, no one can help you. Sometimes people keep their dreams inside because they are afraid of what others might think or that others will know if they fail.

Continued on page 42 ▶

CAL I FO RNIA GRO CER | 41

15 MINUTES WITSH… ◀ Continued from page 41

“This is the one thing I try to hammer home in my keynote talks because it’s so powerful when you get it. Anyone can do anything; it’s kind of that simple.”

The reality is people will step up in the most unexpected ways to help you if you talk about your goals passionately and authentically (either in person or online).

3. Be Unstoppable: It’s not going to be easy and you’re going to hear ‘no’ a lot. I’ve learned that ‘no’ doesn’t always mean ‘no’, it usually means ‘not now’. As a result, you may have to approach any potential roadblocks in creative new ways. People trick themselves into thinking external forces are the reason they can’t do something. I believe the simple truth is that you fail because you stop trying.

4. Take Moonshots: 99% of the world is convinced they can’t do great things so they aim for realistic goals. This means the level of competition is highest for realistic goals. Therefore, you have a better chance of achieving unrealistic goals because there is less competition. Do not underestimate yourself and overestimate the competition.

You will surprise yourself. In addition, having a spectacular goal motivates you to keep moving forward and attracts like minded people to your side.

5. Give: This fills you up in a way that doing things for yourself doesn’t. In addition, when people see you out in the world helping others, they are more inclined to help you. The film Into the Wild has a great quote: “Happiness is only real when it’s shared”. When I look back at the past 10 years of crossing off list items, it’s the

42 | CAL I FOR N I A G R OC E R

moments when I’ve been able to step into someone else’s life and share in their big moment that stick with me.

The Buried Life is clearly a labor of love created by four very good friends. How do you think your life would be different had you never met Duncan, Dave and Jonnie?

Absolutely. I wouldn’t be living in the US with my incredible fiancé, I wouldn’t have such a diverse group of friends and I’d probably have less frequent flyer miles.

It’s funny how small decisions or encounters can change the trajectory of your life.

You seem like one of the most positive people on the planet but I have also heard you actually struggled with depression in your teen years. What can you share about your experience and how you coped with it?

I got really depressed in my first year of university and dropped out. I retreated into my parent’s house and didn’t leave much.

That was a really dark, difficult time for me.

It wasn’t until my friends came and pulled me out of the house that summer to go live and work in another town that I finally started feeling like my old self. That was the beginning of a long road of learning what I needed to be healthy and it’s a road that I am still on. I coped by finding friends and

professionals to talk to, people I loved and trusted. They helped me through the tough times and gave me the tools that I needed to maintain a healthy balance in my life (think exercise, meditation, sleep, support).

I learned that I have a tendency to push myself too hard and if I don’t have balance, I get in trouble. I am also learning to feel and communicate my feelings in a more authentic way, which isn’t easy for me to do.

What have you learned about people through The Buried Life project that surprised you? And what have you learned about yourself along the way that surprised you?

I’ve learned that if you give someone the chance to be a hero, they take it. Folks are generally willing to help if you just ask and that has been a really cool realization from the get-go. It’s made me believe in humanity.

The only way we cross items off our list or help other people accomplish their goals is from the help of other people.

The one thing I’ve learned about myself (and I know it sounds cheesy) is that I can do anything. This is the one thing I try to hammer home in my keynote talks because it’s so powerful when you get it. Anyone can do anything; it’s kind of that simple.

What is one of your favorite memories checking something off your list?

I think #95: Play Basketball with Obama.

We put it on the list for fun because it was the most impossible thing we could think of.

We were going to university in Canada at the time and had absolutely no connection to DC, let alone the White House, so it seemed like a ridiculous goal. In our first attempt, we drove our 1968 purple transit bus to DC and started asking people on the street if they knew anyone in the White House.

That failed (obviously) but we realized that a lot of politicians have their information listed publicly so we reached out to all of them and started lobbying in DC to play basketball against President Obama. We finally got the attention of the President’s personal aide

15 MINUTES WITH…

(Reggie Love at the time) and he was all about our idea and said he would run it by the White House press team.

We waited two excruciating weeks for our answer and they ultimately denied our request. We were devastated. The next time we were in DC, Reggie offered to show us the White House basketball courts as consolation, mentioning that the President was out of town. We raced to rent suits (what do you wear to the White House?) and met Reggie in the West Wing and he gave us a private tour. He then took us down to the basketball courts where there is one presidential basketball.

As we were shooting around, President Obama strolled on the court and completely surprised us saying, “Hey, I heard you guys were in town. I thought the least I could do is shoot a basket with you.”

We were dumbstruck. We shot around and chatted with the President for the next 20 minutes, battling shot-for-shot with him on the court. He is such an incredibly genuine person, we immediately forgot that he was the President and just had fun with him.

It was an extraordinary day because it was the moment that we realized, “Oh my God, anything is possible”. As I mentioned above, this was the most unimaginable thing we could think of putting on the list and somehow, it happened.

What is one of your favorite memories checking something off someone else’s list?

The first person we ever helped was a guy named Brent. Brent had emailed us asking if we could help him take pizzas down to the homeless shelter.

We didn’t have much money but this was something we knew we could help with.

When we met Brent we learned that the reason he wanted to bring pizzas down to the homeless shelter was because he used to live in that same shelter and he said when people brought in food it felt like someone actually cared about him.

We learned that he had been able to leave the shelter because he had started a landscaping business. That business relied on his truck and his truck had just broken down. He never asked us for help with the truck so we thought, “We gotta help this guy”.

We pooled our money and went to a used car lot and offered the owner $480 for a $2100 truck. He gave it to us. When we surprised Brent with the keys, you could tell how much this meant to him. We still stay in touch with Brent, 10 years later. ■

Feel Good with Antioxidant Goodness

ARE YOU A TOP SHOT?

GOLF WITH GROCERS INDEPENDENT GROCERS GOLF TOURNAMENT OCT 20 | FOXTAIL GOLF CLUB

CGAEF TOURNAMENT TOP SHOT @ TOP GOLF NOV 4 | TOP GOLF ROSEVILLE

© 2021 POM Wonderful LLC. All Rights Reserved. POM, SUPER TEA, the accompanying logos, and the Bubble Bottle Design are trademarks of POM Wonderful LLC or its affiliates. PT210524-01

PT210524-01_CGA_1_4PageAd_F.indd 1

6/4/21 12:24 PM

CAL I FO RNIA GRO CER | 43

...Opened doors and provided us the opportunity to network with all the CGA members who are our potential customers. We seize every CGA advertising opportunity to get the word out, to those grocers who might not be aware, that we are the credit union that serves the grocery industry.

DONNA SIMPSON EXECUTIVE VICE PRESIDENT/COO CERTIFIED FEDERAL CREDIT UNION – MEMBER SINCE 2015

Want to learn more about the benefits to advertising with CGA? Contact Sunny Porter to learn more and start the conversation with your fellow industry peers at sporter@cagrocers.com or call (916) 448-3545.

cagrocers.com

A DVERTISER IND EX PAGE

COMPANY

PHONE

EMAIL

WEBSITE

29, 33

Albertsons

(925) 467-3000

21

Big Mountain Foods

(604) 325-7853

6

C&S Wholesale Grocers

(916) 373-4396

BC

Certified Federal Credit Union

(909) 261-4065

dsimpson@certifiedfed.com

certifiedfed.com

17

Fresh Produce Floral Council

(714) 739-0177

emma@fpfc.com

fpfc.com

23

Fresh Quality Produce

(714) 557-7100

1

Nestle Purina PetCare

(314) 982-1000

joe.toscano@nestle.purina.com

purina.com

12

NuCal Foods

(209) 254-2206

custsvc@nucalfoods.com

nucalfoods.com

3

PepsiCo

(949) 330-5804

37

Pete’s

(805) 630-4499

34

Ralphs/Food 4 Less

(310) 884-9000

2

RMS

(818) 817-6712

IFC

UNFI

(323) 264-5200

15

Veg-Fresh Farms

(714) 446-8800

danielat@vegfresh.com

vegfresh.com

28

Wildbrine

(707) 291-6688

jonic@wildbrine.com

wildbrine.com

43

Wonderful Brands

(661) 428-7348

robert.thomson@wonderful.com

wonderful.com

IBC

Yummy Industries/Cheese Bits

(310) 683-9609

jmargolis@cmab.net

cheese-bits.com

albertsons.com ap@bigmountainfoods.com

bigmountainfoods.com cswg.com

freshqualityproduce.com

pepsico.com corrie@eatpetes.com

eatpetes.com ralphs.com

mdodson@retailms.net

retailms.net unfi.com

CAL I FO RNIA GRO CER | 45

CGA NEWS

ASSOCIATION INKS NEW PARTNERSHIP CGA and Fresh Produce & Floral Council (FPFC) agreed to form a new partnership earlier this year, further linking the state’s grocery retail community and California produce and floral suppliers.

Through this joint effort the organizations are collaborating to grow membership, promote industry events, and share advertising and marketing opportunities.

“Produce plays a vital role in the way consumers eat and how the grocery industry serves its customers,” said Doug Scholz, Sr. Vice President, Business Development and Marketing.

“This relationship offers our grocery community the chance to build a greater connection to these important grocery partners.

CGA STRATEGIC CONFERENCE RETURNS TO THE DESERT Last year, the CGA Strategic Conference left the desert for the desktop, hosting the conference remotely for the first time.

After 18 months of being largely apart, the Association is excited to announce we plan to return to Palm Springs this fall with a thematic focus of “Emerging Better Together.”

The CGA Strategic Conference takes place from September 26-28 at the Palm Springs Convention Center. It will feature the same retailer-supplier meetings attendees have come to expect, along with top-rated speakers focusing on reinvigorating your business in the aftermath of the pandemic.

Most importantly, the Strategic Conference offers the opportunity to reconnect as a grocery community, to shake a hand, plan your strategy, and share a moment with your peers. Learn more at cgastrategicconference.com.

HIT THE LINKS WITH US

The first-ever agreement between the two organizations, the partnership also includes reciprocal information sharing and elevated marketing opportunities.

After being canceled in 2020, the Independent Operators Golf Tournament returns this October to Northern California.

“We’re thrilled to be solidifying the on-ramp between produce and floral companies and the grocery retail industry,” said Don Gann, FPFC Executive Director. “California’s produce and floral providers are essential to the state’s food marketplace, and through this partnership, I’m confident we’ll foster a thriving link between FPFC and CGA.”

Reconnect with your independent grocery community on the beautiful Foxtail Golf Club greens, enjoy the crisp fall Northern California weather, and support great causes. Email Beth Wright at bwright@cagrocers.com to learn more. iStock

46 | CAL I FOR N I A G R OC E R

CGA NEWS

NEW MEMBERS CGA welcomes the following members:

Bagel Brands 555 Zang St Ste 300 Lakewood, CO 80228 Contact: Ernie Mattin, VP, Wholesale E-mail: ernie.mattin@ coffeeandbagels.com Phone: (303) 568-8410

Everson Spice Company 2667 Gundry Ave Signal Hill, CA 90755 Contact: Erik Everson, CFO E-mail: erikteverson@gmail.com Phone: (562) 988-1223 Website: eversonspice.com

Fresh Produce & Floral Council 2400 E Katella Ave Ste 330 Anaheim, CA 92806 Contact: Don Gann, Executive Director E-mail: don@fpfc.org Phone: (714) 739-0177 Website: fpfc.org

Gensa Group 7250 Redwood Blvd Ste 300 Novato, CA 94945-3269 Contact: Byron Navas, Chief Executive Officer E-mail: marketing@ gensagroup.com Phone: (214) 299-7757 Website: gensagroup.com

Jensens Finest Foods 2465 E Palm Canyon Dr Bldg 7 Palm Springs, CA 92264-7004 Contact: Matt Zack, Vice President Phone: (760) 325-8282 Website: jensensfoods.com

Kingsburg Supermarket 1367 Marion St Kingsburg, CA 93631-2215 Contact: Daniel Gong, General Manager Phone: (559) 897-5827 Website: kingsburgsupermarket.com

Murphy’s Markets Inc. 785 Bayside Rd Arcata, CA 95521 Contact: Dave Breisacher, Controller/HR Director Phone: (707) 822-7665 Website: murphysmarket.net

QM Power 9680 Marion Rdg Kansas City, MO 64137-1284 Contact: Kellan Draeger, Sales Development Consultant E-mail: kdraeger@qmpower.com Phone: (816) 246-4200 Website: qmpower.com

Tuolumne Market PO Box 1355 Tuolumne, CA 95379-1355 Contact: John Egger, President Phone: (209) 928-4844

Vori 311 Wisteria Dr East Palo Alto, CA 94303-2518 Contact: Simone Wilson, Head, Marketing E-mail: simone@vori.com Phone: (402) 917-6175 Website: vori.com

Wonderful Sales 11444 W Olympic Blvd Fl 2 Los Angeles, CA 90064 Contact: Rob Thomson, VP, Sales – Western US E-mail: robert.thomson@ wonderful.com Phone: (661) 428-7348 Website: wonderful.com

Zanotto’s Market 1970 Naglee Ave San Jose, CA 95126-1934 Contact: Fred Zanotto, VP, Operations Phone: (408) 294-9151 Website: zanottos.com

CAL I FO RNIA GRO CER | 47

MOMMY BLOGGER

The Sense Memory of Normal K I M B ER LY R A E M I L L ER WR ITER , ACTR ES S

I told my husband it was a two-cart kind of day.

My hint that I’d needed him, and our tiny humans, to come along on a family shop for the first time in over a year. He raised an eyebrow and reminded me that the big box warehouse store we frequent is accessible via Instacart.

“I like going in person,” I told him. “The kids can pick their own snacks; we can look at swing sets.”

He smiled, shrugged, and promised the kids dessert if they were on their best behavior at the store. 90 minutes and 600 dollars later, our trunk was full, our bank account was in a state of shock, and our kids were giddy with the normalcy of it all.

my community and recreating foundational memories through meals. And the quirky European chain that’s carved a niche in my town never fails to leave me marveling at my budgeting mastery.

As we roamed the aisles of the warehouse store, my son excitedly greeted strangers through his mask. Wantonly sharing tidbits about his preschool classmates and little sister that he thought they should know.

For the most part he was ignored and was

I loved every second of it.

I’ve always loved shopping for food. I remember the feelings of security and excitement when leaving the store with a cart full of food as a kid, anticipating the treats and family meals the week ahead had in store. As a young adult, shopping for one was a symbol of my independence and ability to take care of myself.

As a mom, there is so much implied meaning in each of the places I regularly shop. Big box shopping feels like being prepared. It means full pantry shelves and a well-stocked freezer.

The family-run grocer I’ve been visiting since childhood makes me feel like I’m supporting

48 | CAL I FOR N I A G R OC E R

iStock

surprised that no one was as excited as he was to be out and about doing normal things in the almost normal world.

It will take some time, I think, for us to remember how to exist normally with one another again; to smile at strangers or laugh at the awkward excitement of small children.

All those little things that make for silent chuckles or fleeting grins, a part of regular life that seemed to fade behind our masks for a moment in time. It will happen, as normalcy once again feels normal. Until it does, I will continue to relish the beautiful little moments that make a life, like looking at swing sets somewhere between the produce and motor oil. ■

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

www.cagrocers.com

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