California Grocer, Issue 3, 2022

BRISTOL FARMS TURNS 40 PAGE 18

LEADING BY EXAMPLE 2022, ISSUE 3

CALIFORNIA GROCERS ASSOCIATION

PAGE 24

THE GREAT ACCELERATION PAGE 28

We are bringing together the ingredients for a better world

our planet our people our products our communities

to make change a Reality.

Great Food isn’t possible without a healthy planet.

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

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

on an impressive

40 YEARS OF SERVICE

to the communities of Southern California

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

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS Independent Operators Committee Chair DIRECTORS

Chair Renee Amen Super A Foods, Inc.

First Vice Chair Dennis Darling Foods Etc.

Treasurer

Immediate Past Chair Hee-Sook Alden Gelson’s Markets

Second Vice Chair Lynn Melillo Bristol Farms

Secretary Steve Dietz United Natural Foods, Inc.

Denny Belcastro Kimberly-Clark Corporation

Michel LeClerc North State Grocery Co.

Hillen Lee Procter & Gamble

Joe Angulo Bodega Latina Inc.

Saj Khan Nugget Markets

Andrew Nodes Instacart

Greg Sheldon Anheuser-Busch InBev

Elaina Budge Costco Wholesale (Bay Area)

Tyler Kidd Mar-Val Food Stores, Inc.

Bethany Pautsch Tyson Foods, Inc.

Scott Silverman KeHE Distributors, LLC

Pamela Burke Grocery Outlet, Inc.

Nancy Krystal Jelly Belly Candy Co.

Eric Pearlman C&S Wholesale Grocers

Jonson Chen 99 Ranch

Brandon Lombardi Sprouts Farmers Markets

Willie Crocker Bimbo Bakeries USA

John Mastropaolo Chobani, Inc.

Subriana Pierce Navigator Sales and Marketing

Donna Simpson Certified Federal Credit Union

Jake Fermanian Super King Markets

Kelli McGannon The Kroger Company

Damon Franzia Classic Wines of California

Doug Minor Numero Uno Market, Inc.

Jon Giannini Nutrition Fundamental

Mike Moliner Food 4 Less (Stockton)/ Rancho San Miguel Markets

Elliott Stone Mollie Stone’s Markets

Sergio Gonzalez Northgate Gonzalez Markets Bryan Jankans Mondelēz International Inc. Mary Kasper 99 Cents Only Stores

CALIFORNIA GROCERS ASSOCIATION

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

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David Moore E. & J. Gallo Winery Joe Mueller Kellogg Company

Jaclyn Rosenberg NielsenIQ Jeanne-ette Ryan Molson Coors Beverage Company Jeff Schmiege Unilever Karl Schroeder Albertsons, LLC Jeff Severns PepsiCo Beverages North America

Director Local Government Relations Tim James

Business Development Manager Bailey Dayen

Director CGA Educational Foundation Brianne Page

Administration & Programs Coordinator Miriam Ellis

Director Administration & Human Resources Jennifer Gold Senior Manager Marketing & Membership Sunny Porter Communications Specialist Grace Becker

Controller Ion Bazgan Senior Accountant & Assistant Office Manager William Quenga California Grocer is the official publication of the California Grocers Association.

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

Diane Snyder Whole Foods Market – Southern Pacific Region Josh Southerland Reyes Coca-Cola Bottling LLC Rick Stewart Susanville Supermarket IGA Joe Toscano Nestlé Purina PetCare Richard Wardwell Superior Grocers Karl Wissmann C & K Market, Inc.

For association members, subscription is included in membership dues.

Subscription rate for non-members is $125. © 2022 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com Assistant Editor Grace Becker gbecker@cagrocers.com For advertising information contact: Bailey Dayen bdayen@cagrocers.com

CONTENTS | ISSUE 3

FEATURES COLUMNS President’s Message The Retail Roadmap is a Living Document. . . . . . . . . . . . . . . . . . . . . . . 5

18 Bristol Farms Turns 40 Bristol Farms looks beyond traditional grocery aisles to deliver an elevated experience for shoppers.

Chair’s Message Making Lasting Connections at Conference. . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Viewpoint Driving Outside Your Lane. . . . . . . . . . . . . . . 8 Inside the Beltway Grocery Shoppers Remain Resilient in the Face of Rising Food Prices. . . . . . . . . . . 10 Washington Report Independents: Resilient, Creative, and Nimble. . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 Capitol Insider Significant Changes to the Bottle Bill After More Than 30 Years. . . . . . . . . . . . . . . 15

24 Leading by Example Jennifer Pelayo (Smart & Final Stores) receives the 2022-23 CGA Educational Foundation Legends of the Industry Scholarship.

Lessons I’ve Learned on Leadership and Life Donna Tyndall Reflects on Her Career. . . . . . . . . . . . . . . . . . . . . . . . . 17 Mommy Blogger The Heart of Inflation.. . . . . . . . . . . . . . . . . . 44

DEPARTMENTS CGA New Members. . . . . . . . . . . . . . . . . . . 37 Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 40

28 The Great Acceleration and the Race to (Grocers’) Resilience How a period of unexpected momentum led to building resilience.

CAL I FO RNIA GRO CER | 3

PRESIDENT’S MESSAGE

The Retail Roadmap is a Living Document

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

Exiting the pandemic, the grocery industry is seeking bold answers to new challenges When Google calls, you answer. Or at least that was my feeling when the ever-so persuasive Emily Ma, Founder of Food for Good at Google, reached out to me.

Whether she’s dumpster-diving at 5 a.m. or using Google’s artificial intelligence capabilities to predict mold development on strawberries, Emily brings contagious passion and a surplus of smarts to her work.

Her mission is to organize the world’s food information, making it accessible and useful in service of a future food system that is sustainable, nourishing, and equitable for all.

With these goals in mind, the CGA Board of Directors joined the Food for Good founder for a lunch and learn at Google’s new Bay View Campus. It was a day full of inspiration, and I’m excited to see what comes from our burgeoning collaboration with Google as our grocery community works to combat food waste, especially.

We all know sustainability is a vital component of doing business today.

Both customers and voters clamor for it.

Combatting inflation and supply chain issues by striving to do more with less, or with greater efficiency, can ultimately be something that fulfills business-driven and ethical goals.

Speaking of the supply chain, the board and a few special guests also enjoyed a tour of numerous businesses as part of our Retail Tomorrow, California event, the day before the meeting at Google. Inside this magazine you’ll find Kevin Coupe’s take on how Retail Tomorrow pushed attendees to think outside the box. That’s a great lesson, but I remain struck by the on-the-ground experience, the intermingling of the supply chain and labor, and how those two things shape so much of what takes place in making and moving goods to grocery store shelves.

Pictures of backlogged ports and container ships waiting at sea have been some of the defining images of the pandemic. At the Port of Oakland, we awed over the size and scale of these shipping operations, but also at the fact there is little automation at American ports – zero at the Port of Oakland in particular. Juxtapose these images with our group’s experience at Plenty, which is an indoor, vertical farming operation.

When touring Plenty, one is struck by the precision and reliability offered by dynamic software and robotics. At Plenty, almost no human touch is required, and the start-up is able to sustainably produce high yields of leafy greens.

Economists and on-the-ground intuition alike tell us that the last three years have had long and lasting consequences for the supply chain, the workforce, and therefore, the grocery industry. Yesterday’s solutions no longer apply, which is why I’m thrilled to see CGA taking a lead in starting conversations at Retail Tomorrow that feed into the CGA Strategic Conference “Retail Roadmap” theme. My hope for CGA Strategic Conference attendees is that these discussions continue into the pre-scheduled business meetings and educational sessions.

Enjoy your time in Palm Springs! ■

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CHAIR’S MESSAGE

Making Lasting Connections at Conference R EN EE A M EN S UPER A FOODS, IN C.

The CGA Strategic Conference is the most important stop for business connections and industry camaraderie The time has come once again to come together in Palm Springs for the industry’s most valuable event of the year. I always look forward to the CGA Strategic Conference, not only because of the terrific business and educational opportunities, but also the in-person connection. I’ve shared it before, but running a family business makes it even more special to gather with family, colleagues, and friends at the annual convention.

One of the highlights of my time at Conference each year is experiencing the event with my mom, Dorie, and taking our retail business meetings together on behalf of Super A. Even after all these years, you’ll still see my mom walking the convention floor, carrying out her lifelong commitment to our family’s business. I know my dad would be proud to see us representing Super A together as a family at this great event.

This year I’m honored to take the Conference stage for the first time as Chair on Monday morning to make opening remarks with CEO Ron Fong and The Illuminators Headlite Joe Perez. It’s a special opportunity to address our industry directly and reflect on what we’ve faced this year and what lies ahead, and I don’t take it for granted.

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Our conference theme this year, focused on the new “Retail Roadmap,” hits especially close to home after taking on more responsibility to help run my family’s business during a time of great change and adjustment in our industry. From new supply chain challenges, to changing customers, to new standards for employee care, we’ve all learned a lot this year that we can apply to future business plans.

I like to think of the new roadmap as a balance of old and new, mixing tried and true business practices with new strategies that will help us meet the evolving needs of our customers and employees. As we look forward to our updated roadmap, I still think of my dad’s business philosophy to anchor me: make your customer feel taken care of, offer a clean environment, and make sure the price is right.

We’ve learned during this year of change that it’s more important than ever that we

can lean on each other as an industry. That’s partly what makes connecting at the CGA Strategic Conference so impactful.

With expert speakers and informative educational programs like the Enterprise Risk Protection Executive Summit and the Independent Operators Forum, businesses can come together to tackle challenges we all face, share solutions, and collaborate.

(Not every industry can turn a room of competitors into great friends and confidants!) Plus, the carefully coordinated business meetings between retailers and suppliers make the event one of the most efficient destinations for in-person business connections.

This event is really where relationships are made. Every year, I meet up with some of my dearest industry friends and we make memories for years to come. Whether we’re competing in the Illuminators Bartending Competition or meeting by the pool for the After Hours Social, I know I’ll leave the conference with stronger connections than I had before – both personally and professionally.

I can’t wait to see faces both old and new this September in Palm Springs for another wonderful Conference. ■

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.

VIEWPOINT

Driving Outside Your Lane

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

The value of exposing yourself to ideas outside your comfort zone I’ve always felt that there is much to be learned from sources beyond the traditional, an approach that works whether you are in the food business (like you are) or the words business (like I am).

I’ll give you an example. In the waning days of the last century, one of my jobs was as a columnist for Progressive Grocer magazine (which I did in addition to running editorial for the “Supermarket Insights” and “Retail Insights” video programs, which were owned by the same company). I wrote a back-ofthe-book column each month, which had a core theme – lessons that could be applied by food retailers, curated from businesses that had nothing to do with food and often nothing to do with retailing. It was a radical notion at the time, but somehow, I got PG’s editor to sign off on the idea.

At the same time, I was waging an unsuccessful battle to get the company – which not only had print and video intellectual property, but, at the time, a thriving data collection business – to embrace the internet as an opportunity to remake the company for the 21st century.

We had all the pieces, but just needed to rethink how we assembled and marketed

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them … we had the ability to be way in front of all the competition. As I say, it was an unsuccessful battle, and I ended up getting laid off as the company that then owned the property thought the best way to endure tough times was to get back to fundamentals (I hate that phrase!) and not make risky bets on things like the internet.

It wasn’t that I was really smart or unusually prescient. It’s just that while everybody else was reading food trade magazines (and probably accounting manuals), I was reading magazines like Fast Company and Wired, which were showing me a world that I didn’t know existed. These magazines, and others like them, encouraged me to drive outside my traditional lane, and it was just a few years later that I launched MorningNewsBeat. com, which as you read this is just a few months shy of celebrating its 21st birthday.

Changing lanes has its advantages.

I tell you all this because last month I had the opportunity to spend time with the CGA Board of Directors during a Retail Tomorrow Immersion event in northern California, a day designed to take people outside their traditional lanes and think about the business and critical issues differently, without traditional restraints.

It was fascinating.

Two of the stops during the day showed us what is possible from very different perspectives. At Plenty, a vertical farm business just south of San Francisco, we saw a revolutionary approach to agriculture that has the potential to reshape how produce is grown and provided to stores and consumers, in a way that could have a dramatically reduced impact on the environment – no small matter in a part of the country plagued by draught.

And, we stopped by PayPal Park, home of the San Jose Earthquakes, where Dave Kaval – current president of the Oakland Athletics and former president of the Earthquakes – spoke about the importance of empowering

VIEWPOINT

employees at every end of the organization.

Parking attendants and beer vendors, he explained, were every bit as critical – and maybe more so – to the customer experience as people with better salaries and fancier titles; it is important to make them feel engaged with the team and the business so that they take the delivery of a superior experience absolutely personal. (Do your checkout personnel feel that way? If not, why not … and what can you do about it?)

This tied into a conversation about the Workforce of the Future that I had onstage with Kyle Mayer, chair of the Management & Organization Department at the University of Southern California (USC), in which we spoke about the need for retailers to be far more flexible in how they deal with employees, rejecting a one-size-fits all approach that these workers likely find to be unsatisfying and even irrelevant. One employee might need more flexible hours, while another might be looking for college loan repayment assistance … there will be employees who need frequent feedback sessions and small wage bumps, while there will be others who do not require or enjoy that level of engagement. To treat everyone

By the way … you can listen to a recording of my conversation with Kyle Mayer as an audio podcast on MorningNewBeat, which you can find at this link: https:// morningnewsbeat.com/2022/08/11/aspecial-mnb-retail-tomorrow-podcastthe-workforce-of-the-future/

Mike Neal, founder/CEO of Decision Next, built on that by talking about how retailers need tomorrow-centric information that allows them to make better decisions when it comes to buying fresh commodities. And Mark Scharbo, formerly of US Foods and now with Macmillan Doolittle, stressed the importance of developing more flexible, nimble systems and platforms that will be better able to adjust when there is another pandemic, or some other event that stresstests the industry.

Our group also traveled to the Port of Oakland to learn about the supply chain issues facing that business, and then listened to a panel discussion that was more specific to industry issues, but still offered outside perspectives.

Every moment of the Retail Tomorrow immersion was framed as a challenge – how can businesses do better and be better by being willing to drive outside traditional lanes … not just on a Wednesday in early August, but in the everyday conduct of commerce.

Suzy Monford – who you probably know from her time in the region as a food retail executive – now is Chief Strategy & Marketplace Officer at a company called Focal Systems, and she talked about how we have “a very clunky food economy” that requires better, faster and more actionable information. (No surprise, that’s what Focal Systems offers.)

Which is my challenge to you. “Think different,” was the way Apple used to put it … but it is an admonition – indeed, an exhortation – to which we all need to pay attention. And embrace.

the same, Mayer said, is to demonstrate that one is out of touch with employees, and it is difficult to get maximum buy-in and effort from workers who do not feel understood.

(You may not like that reality, but so it goes.)

Because while we all have to think about retail as it exists today, it is to some degree malpractice not to also focus on the shape, probabilities and yes, even the possibilities, of retail tomorrow. ■

iStock

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INSIDE THE BELTWAY

Grocery Shoppers Remain Resilient in the Face of Rising Food Prices J EN N I F ER H ATC H ER CHIE F PUBLIC POLICY OFFICER & SENIO R VICE P RESIDENT, FOOD MAR K E TIN G IN S T ITUTE

Over the past two and a half years, grocery shoppers have maintained their resilience in the face of incredible stress navigating a public health emergency Despite concerns about their own health, pandemic-related out of stocks on grocery store shelves, the war in Ukraine’s long-term impact on the food supply and historic levels of inflation, shoppers have demonstrated they remain flexible in securing the foods they need to keep their families healthy and nourished.

Underscoring this shopper resiliency, last month FMI – The Food Industry Association released the fifth installment of our six-part series of U.S. Grocery Shopper Trends 2022 reports. This latest report focuses on grocery shopper behaviors within the context of “Back to School” season and how their plans and habits evolve as families return to routine.

Our research finds that even though 90% of shoppers are concerned about some aspect of food accessibility, with 61% concerned about rising prices specifically, shoppers feel they have at least some degree of control over their finances, particularly when it comes to their grocery budgets (86%).

Shoppers report weekly grocery spend totals of $136, which is $12 lower than February 2022. This is partially a seasonal effect, with consumers eating out more during summer

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months, but it also indicates belt-tightening behaviors. Shoppers seem to believe they are succeeding at bringing their grocery spending under control, hitting a lower ongoing weekly total, as they adjust their overall household budgets.

consumers. There is also less worry about the safety of food shopping in person: two-thirds now feel comfortable being in stores.

Additionally, respondents are increasingly comfortable eating indoors in restaurants, up 13 percentage points since February.

Shoppers are finding ways to cope with rising food prices by looking for deals (49%), buying more store brands (41%), buying fewer items (37%), buying in bulk (23%) and making increased use of store loyalty programs (22%). Consumers are also seeing different benefits from shopping in-store or online. Customers indicate that while shopping in a physical store, they can make adjustments at the shelf (61%) and save on shipping/delivery (57%). When grocery shopping online, shoppers report they can better monitor basket size (64%) and save on gas (62%).

O ne-third of adults say their food shopping has permanently changed in some way as a result of COVID-19, and almost as many say the pandemic has changed their approach to health.

Beyond Americans’ grocery spending habits, we also looked at their attitudes about COVID-19. The good news is that COVID-19 concerns continue to drop, albeit slowly. The number of shoppers expressing concern with COVID-19 has declined since August 2021, but there has been no change since February 2022 when we last surveyed

Although COVID-19 concerns have declined, visible reassurance (e.g., cart sanitation stations, signage) of cleaning and health safety measures may become baseline requirements for food retailers going forward.

INSIDE THE BELTWAY

Even more than COVID-19, rising prices concern parents shopping for back-toschool needs. Despite an overall concern with COVID-19 higher than that of other Americans, parents generally feel it is safe to send kids to school in person. One-sixth of those in households with kids still feel it’s very risky. Households with kids also report high concern with the cost of both school supplies and clothing.

FMI is working hard to keep our elected officials aware of the latest Consumer Price Index (CPI) numbers, how these inflationary

trends are impacting food prices and what it means for consumers. See our latest briefing featuring FMI’s Andrew Harig and California Polytechnic State University’s Dr. Ricky Volpe at https://educate.fmi.org/ products/fmi-briefing-peering-into-foodinflations-black-box.

All told, the story of the typical grocery shopper is one of tremendous flexibility and resilience in the face of higher food prices and persistent effects of COVID-19.

Retailers that can offer solutions that help shoppers maintain their feeling of control

and manage their spending while still being able to secure the items they need for their families will be positioned for success amid this inflationary environment. ■ To download the U.S. Grocer Shopper Trends 2022 – Back to School report, access prior reports in the Trends series, and sign up to receive updates on future reports, visit www.FMI.org/GroceryTrends.

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WASHINGTON REPORT

Independents: Resilient, Creative, and Nimble 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

The COVID-19 pandemic has been one of the most challenging business environments that independent community grocers have ever had to face, and it’s not over yet.

The sudden shift in retail spending behavior during the second quarter of 2020 drove record supermarket sales, as grocers moved mountains to keep shelves stocked while contending with operational challenges, from supply chain to sanitation. But staying sanitary is a relatively simple task compared to the supply chain rollercoaster that retailers have been forced to ride, joined by a labor shortage and runaway inflation to deliver a triple threat to doing business.

Even so, independent grocers have demonstrated once again that they have what it takes to weather the storm and deliver for their communities, according to the 2022 edition of the Independent Grocers Financial Survey, a joint study between the National Grocers Association (NGA) and FMS Solutions.

The survey documents a complex marketplace in which the only constant was change. Amid supply chain and labor challenges, independents carefully managed inventory while compressing margins in key departments to drive sales during fiscal year 2021.

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Navigating these volatile times is a tremendous accomplishment that will help independents through tough marketplace conditions that are lingering throughout 2022, even as the usual pundits find themselves increasingly hard-pressed to speculate on the end game amid a perfect storm of factors that are pressuring retailers and consumers alike.

As detailed in the NGA/FMS survey, grocery retailing remained in flux on both the supply and demand sides during fiscal year 2021. Consumer spending and trips shifted between online and in-person as COVID-19 cases ebbed and flowed. Inflation and outof-stocks prompted shoppers to trade down within categories, seek alternative products and pack sizes, and even look to other retailers.

“Supply chain challenges kept independent retailers on their toes with historically low order fill rates averaging 74.6%,” noted Robert Graybill, president and CEO of FMS Solutions.

Even as inflation drove product prices higher and higher, nearly 60% of

independent grocers responding to the survey said they were unable to match their 2020 sales records; dollar sales outpaced pre-pandemic levels though same-store sales dipped nearly 2%.

While focusing on inventory management, independent grocers helped consumers find value for their stretched grocery dollars.

Much as they were resourceful in securing scarce high-demand goods during the darkest days of the pandemic, independent grocers continue to scour the marketplace to procure products that give shoppers the most bang for their buck. Leveraging social media has helped grocers stay engaged with their communities to alert consumers about the latest deals.

Lower sales and compressed margins, combined with expenses driven higher by inflation, delivered a decrease in net profit compared to the prior year. Of course, this was to be expected after profits that rose fivefold due to 2020’s surge in grocery sales.

As Graybill noted, “At 3.62%, the net profit before taxes for independent operators in 2021 was the second-best result on record.”

WASHINGTON REPORT

The retailers leading the pack on profits were largely those that focused on fresh, particularly produce and deli, with higher margins, above-average transactions, and bigger baskets.

While 2022 is unlikely to bring the same results as the past two years, independent community grocers – resilient, creative, and nimble – have a roadmap for success and are prepared for the challenge.

The complete survey is available at https:// www.nationalgrocers.org/resource-center/ and www.fmssolutions.com. ■

We Proudly Honor

Congratulations on 40 Years!

Visit us at online: www.nationalgrocers.org

The Southern California Acosta team and our client partners would like to congratulate Bristol Farms on their 40th Anniversary!

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I look forward to gathering with colleagues and friends in tropical paradise each year. We come together to learn, share and grow in this industry that we all love. It is the perfect setting for learning from both masterful speakers, as well as other store operators, whom I consider my mentors and my friends.

January 7 – 14, 2023 Fairmont Kea Lani | Wailea, HI (Maui)

A Meaningful Retreat

Kelly Smith United Markets

OFFERING A TIMELY OPPORTUNITY TO PAUSE, REFLECT AND FIND INSPIRATION FOR THE YEAR AHEAD. Imagine a place where you can reinvest in yourself, revitalize your creative spirit, and shift your focus to the long-term health of your business.

The 2023 Independent Operators Symposium offers a stress-free place to step back from the day-to-day and refocus on your personal and professional priorities. Surrounded by your peers and business partners, this annual retreat provides a uncommon experience where attendees can safely share the obstacles to their growth and learn new perspectives on the path forward.

We invite you to gather for a week of inspiring speakers, practical share group discussions and just the right setting to give yourself a much-needed break.

Featured Speakers Getting (The Right) Things Done: A Guide to Achieving More Without Burning Out Hamza Khan Future of Work Expert Author of Leadership, Reinvented How to Create a Culture of Listening Heather R. Younger Founder & CEO Employee Fanatix

Retailers: $6,475 | Others: $8,475

REGISTER TODAY!

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

Visit cagrocers.com/symposium/ Registration cut-off date is December 7, 2022.

CAPITOL INSIDER

Saving the Best for Last

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

Significant Changes to the Bottle Bill After 30 Years Brown

For as long as I have worked with the grocery industry, anything having to do with the “Bottle Bill” in the Legislature hasn’t happened until the eleventh hour.

And, more times than not, the clock was run out – often purposefully by one stakeholder or another – leaving grocers without policy relief.

Well, 2022 looks to be different, on at least one front. This year, we’ve achieved significant change, even though it didn’t come together until the final deadline, to amend proposed legislation.

SB 1013 (D-Atkins) seeks to make the most sweeping changes to the Bottle Bill since its inception 34 years ago. First, the bill brings wine and distilled spirits into the program.

A feat that has been attempted many times but with no success. Second, it clarifies the small store exemption passed into law last year, which exempts fuel sales from the $1.5 million in revenue. Third, it expands the convenience zones from a half-mile to one mile in urban areas and up to five miles in rural areas, which should reduce the total number of unserved zones by a considerable amount. Finally, and most importantly for our industry, it does away with the $100 per day in-lieu fee placed on dealers and allows for the formation of a dealer cooperative to develop plans for unserved zones.

Beginning January 1, 2023, CalRecycle will start a regulatory process to develop the rules around the formation and operation of the dealer cooperative. There could be multiple cooperatives serving regional needs or one statewide cooperative to address redemption opportunities throughout California. The cooperative(s) would need to be up and running by January 1, 2025, because at that time, Option B, the $100 per day in lieu-fee, will no longer be an option. At that point, a dealer in an unserved zone would sign an affidavit agreeing to either redeem containers in store or join a dealer cooperative.

The dealer cooperative would submit plans to CalRecycle showing how recycling opportunities can be provided to customers

within the zones. A plan could cover multiple unserved zones. Implementation of an approved plan would satisfy the dealer’s obligations under the Bottle Bill. Recycling opportunities include pilot program, like mobile recycling, bag drop, reverse vending machines or convenience zone recyclers.

The dealer cooperative can operate the redemption centers and qualify for handling fees, or it could partner with recyclers to locate in the unserved zones.

In addition to the policy changes, the Legislature is providing significant funds to help with this transition. $70 million in grants will be available to start mobile recycling sites, purchase reverse vending machines, and other recycling options.

When implemented, dealers will no longer be faced with the no-win decision of in-store take-back or paying $100 per day to the State, for which we never know how it’s spent. This proposal will give dealers the opportunity to dictate their own futures to provide convenient recycling opportunities for consumers at a lower cost.

This will no doubt be a lot of work. It’s a major change, but it’s one we tackle head on in order to provide needed relief to our members who have had no options for the past 30 years. ■

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Keurig Dr Pepper congratulates Bristol Farms on their 40th Anniversary

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Lessons

I’VE LEARNED ON LEADERSHIP

and Life

DONNA TYNDALL

Retired from Gelson’s markets with 48 years under her belt, former Senior Vice President of Operations shares lessons from a fruitful career.

OUR BUSINESS IS ABOUT PEOPLE … OUR EMPLOYEES AND OUR CUSTOMERS. DON’T JUMP TO A CONCLUSION OR PASS JUDGMENT, ESPECIALLY WHEN IT DEALS WITH PEOPLE, WITHOUT GATHERING ALL THE FACTS AND ASKING THE RIGHT QUESTIONS FIRST. Get all the details so you can make an

If you take care of your people, the rest will fall in place and the work will be easier. Bernie Gelson taught us that if we take care of our employees, they will take care of our customers. And if we take care of our customers, we will earn their loyalty.

WORKING HARD AND MAKING SACRIFICES ALONG THE WAY ARE PART OF ANY JOB, ESPECIALLY AS YOU PROGRESS UP THE MANAGEMENT RANKS. It doesn’t mean you still can’t have balance in your life, but don’t expect to have things handed to you without working for it. But work should always be fun!

TAKE PRIDE IN YOUR WORK. Pay attention to the details. Try to do a little more than what is expected. Help your coworkers succeed, and you will be successful.

LEADERSHIP IS ABOUT SERVING OTHERS — THAT SHOULD ALWAYS BE THE MINDSET. The biggest satisfaction and the most rewarding aspect of being in leadership is being able to help others grow and develop.

Everyone is different and has different skills, and it is the leader’s job to help them find the job that is best for them.

AS A LEADER, WE HAVE A RESPONSIBILITY TO MODEL GOOD BEHAVIOR AND REPRESENT OUR COMPANY IN A POSITIVE WAY. You may not realize the impact you make on others’ lives, but you will make an impact!

Early in my career I read this quote by Dag Hammarskold – who served as the Secretary General to the United Nations in the 1950s.

“Your position never gives you the right to command – it only imposes on you the duty of so living your life that others can receive your orders without being humiliated.” I tried to incorporate that into my management style throughout my career – at every level.

I BELIEVE YOU SHOULD TREAT PEOPLE THE WAY YOU WANT TO BE TREATED. The great poet and author, Maya Angelou, summed it up when she said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

informed decision. Ask the next question … sometimes things aren’t the way they look at first glance.

THINK ABOUT HOW YOUR DECISIONS AFFECT OTHERS. You will have to make decisions or changes that may not be popular, but you can often mitigate any negativity by being aware of the potential consequences and addressing them up front. Transparency is important – explain why and how decisions are made to help your people learn and understand your thought process.

LEARNING SHOULD BE A LIFELONG AMBITION.

Being in a leadership position is a privilege – you have the opportunity to help and guide others, to shape their lives in a positive way. And with that privilege comes a responsibility to continue to learn and grow in your role so you can guide your team.

GIVE PEOPLE YOUR TIME.

Listen, be present, and be interested in what they have to say. You may be surprised at how much a few minutes of your time means to your employees.

HAVE A POSITIVE ATTITUDE!

Negativity only serves to sap your energy.

GIVE BACK TO WHATEVER CAUSES ARE IMPORTANT TO YOU, WITH YOUR TIME AND ENERGY. The food industry works with so many great charitable causes, and as a leader, it is incumbent upon us to support those causes. We also have two associations in California, CGA and the WAFC, that are important to the future of our industry.

We are lucky to be part of a great industry and it is important to support it.

ENJOY THE JOURNEY! Appreciate what you have – both at work and outside of work. The years will go by quickly, and when you look back on your career, I hope you have many wonderful memories of the journey and the friends you’ve made along the way.

CAL I FO RNIA GRO CER | 17

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

TURNS 40

By Jessica Love Innovation isn’t just a goal for the team at Bristol Farms, the 40-year-old grocery banner that now operates 14 stores in Southern California. It’s part of the company’s DNA and its mission, and it has been since 1982.

A L O O K B AC K When founders Irv Gronsky and Mike Burbank set out to build Bristol Farms, they aspired to combine the friendliness and quality of a neighborhood butcher, baker, and specialty grocer all under one roof.

Since its beginnings, Bristol Farms has looked beyond traditional grocery aisles to deliver an elevated experience for its shoppers. Always with an eye toward being “fashion forward” in food, as CEO Adam Caldecott says, Bristol Farms is focused on bringing a fresh culinary experience to the grocery world.

For example, Bristol Farms was one of the first grocery stores to offer fresh, handmade sushi to shoppers in 1986 – and it remains a customer favorite to this day because of its high-quality ingredients. Being a culinary destination remains integral to Bristol Farms’ past and future as it celebrates its 40th anniversary this year.

“That point of culinary innovation is something that’s true to the company and has always been one of the key principles that we try to live up to,” says Caldecott, who began with Bristol Farms as a meat clerk in South Pasadena and worked his way up to the role of CEO. “That’s what’s really made up the strength of the company in the last 40 years and to grow and expand into what we are today.”

Continued on page 20 ▶

CAL I FO RNIA GRO CER | 19

◀ Continued from page 19

I N N OVAT I O N I N I R V I N E To that end, Bristol Farms’ newest store in Irvine, California, is a foodie haven.

The store concept is built around a food hall with several different full-service food options, from a sit-down pizzeria to a quick-service restaurant serving plant-based plates. According to Dan Evon, Bristol Farms’ Vice President of Culinary, this showcases Bristol Farms’ evolution with new destination opportunities in food.

Caldecott says part of what makes the Irvine store so exciting is that each of the food venues is created with its own brand, even though they’re being run in-house. For example, PikaPika is the spot for sushi and poké, while customers craving a fried chicken sandwich can order one up from Horton’s Hot Chicken.

What makes the fast casual lineup even more relevant is its connection to customers digitally. Each of the food brands is available via online apps like

want and when they want,” Caldecott says. “Through these different brands we can set up digital experiences, capture a segment of customers and then have them meet Bristol Farms through that brand.”

The Bristol Farms leadership team sees the Irvine store as a laboratory of sorts, where new products like a plantbased Green Dragon roll or Watermelon Poké can be tested, and new venues can be given the time and energy to be

“Our goal is to create food that people want to talk about,” Evon says. “Great flavor, exceptional ingredients, and quality presentation. We want to be the place where you crave the food you are coming back for.”

“Our goal is to create food that people want to talk about,” Evon says. “Great flavor, exceptional ingredients, and quality presentation. We want to be the place where you crave the food you are coming back for. But it doesn’t just end with the food quality. We believe our hospitality and service will make us stand out from the rest.”

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

DoorDash, so Bristol Farms’ brands are top of mind for diners looking to order in just as much as they are for grocery shoppers who want to come into the store for the complete Bristol Farms journey.

“In this new digital space, you’re always looking for new ways to meet the customer where they want, how they

successful. From there, the team can determine if the concept resonates with customers or if it needs to be transitioned into another venue. Then, Caldecott said Bristol Farms will take that knowledge and upgrade new and existing stores.

“Part of our growth plan is to take the successes from Irvine and port them to future new stores, but also to retrofit foodservice departments in our current stores with the successful ones we have in Irvine,” Caldecott says.

F U L L - S E RV I C E D E PA R T M E N T S The food-centric, experience-driven model of Bristol Farms didn’t happen by accident. Since the beginning, Caldecott says the leadership team of Bristol Farms has prioritized quality, innovation, service, and product knowledge. In addition to foodservice, the stores have been thoughtfully laid out with full-service meat and seafood departments featuring artisan butchers, cheese departments with hundreds of choices and regular tastings, and a theatrical shopping experience that keeps customers engaged throughout their trip.

The delight for the customer is in the details. For example, Craig Tsuchiyama, Senior Director Meat, Seafood and Sushi at Bristol Farms notes that the banner only sells the top 5% of USDA Prime & Choice beef. Among its offerings, the meat department dry ages beef for 21 days in-store and grinds beef patties daily. Butchers make sausage in-house and undergo careful training to ensure quality in their cuts.

“Both our meat and seafood departments showcase skill, service, and quality,” says Tsuchiyama. “We are serious about our standards and staying true to the roots of each department. We have long-standing relationships with our suppliers, and our team members are well-trained and engaged.”

As customers have come to expect quality and innovation from the company, so too has Bristol Farms continued to invest in proper training for its

employees and planning for each new store. Caldecott notes that the desire to train people and impart the necessary knowledge in turn makes Bristol Farms a place people want to be.

“It’s what keeps our customers coming back year after year and keeps driving our growth,” he says.

FOREVER IN THE FOOD BUSINESS Innovation will kweep Bristol Farms progressing in the future, too, Tsuchiyama said – whether it’s a new product development or something simpler like developing a sushi item for the Poké bar.

“We also update classic recipes by changing the aesthetics or ingredients in the item,” he says.

While Bristol Farms operates as a grocery banner, Caldecott notes that Bristol Farms strives to be both a place to go for a full grocery shop and a destination for breakfast, lunch, and dinner.

“Our health as a business is driven specifically by what we’ve aligned behind in quality, innovation, and service.

That’s who we are, and that’s what we dream about every day,” Caldecott says.

Evon says that above all, the company is in the food business. “Our guests are coming to us looking for guidance and support when it comes to how they eat, what they eat, and what ingredients they use when cooking at home,” he says.

And while Bristol Farms’ goal is to provide guests with craveable, exciting products, the company also understands that it’s operating in a fast-paced world.

“Convenience can be a key driver in where people choose to go – we provide a multitude of choices in one location,” Evon says.

From day one, Bristol Farms has kept quality, innovation, and service at its core, and that’s what has attracted shoppers and motivated them to return each year and with each new store. It’s also what driven the company for 40 years and will long into the future.

“Our health as a business is driven specifically by what we’ve aligned behind in quality, innovation, and service. That’s who we are, and that’s what we dream about every day,” Caldecott says. ■

CAL I FO RNIA GRO CER | 21

The

Shelby Report

Region Wise. Nationwide.

Providing the intelligence you need to compete by covering news and features on all aspects of the retail food industry across the nation through 5 regional monthly editions.

The Shelby Report of the West Your source for grocery news and insights since 1967

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JUNE 2022

Your source for grocery news and insights since 1967

Educating candidates ahead of election crucial for WFIA

Another first for Tyndall – addressing FISMC Legends

By Eric Pereira / content creator

Donna Tyndall experienced a lot of firsts in her career with Gelson’s. The Southern California native added another one recently when she addressed the Food Industry Sales Manager Club of Los Angeles Legends event.

In her introductory remarks, FISMC President Heather DeLuca noted that Tyndall became the first female “box boy” when she started working at Gelson’s in 1973. Tyndall then became the first clerk, manager, store director and director of operations who was a woman. She also was the first female EVP at Gelson’s and the company’s first employee to attend the USC Food Industry Management program.

That’s also where she met her future husband, Mike Ketcham, who was one of her FIM classmates.

As she began speaking, Tyndall took note of the number of women in attendance. She recalled when she was first invited to attend a Legends luncheon, there were only one or two women present. She pointed out that women comprised about a third of the audience.

Tyndall added she was “very humbled and honored” to be the first woman to speak at the Legends luncheon, adding that she loves the industry and its people. She then proceeded to share some lessons learned from Gelson’s legends.

When Tyndall and her twin brother turned 16, they asked for jobs at the company. Her brother was hired in about a month; it took more than a year before she was hired “because I was a girl.”

After graduating from college, she moved into management. She was named a store manager in 1987.

About 15 months later, she had the opportunity to attend the USC FIM program. One of her mentors, Bill Roulette, attended the first FIM program but wasn’t employed

by Gelson’s at that time.

“I was the first Gelson’s person who got to go…and it was For scenes from the Food Industry because Bill saw the value in it and was willing to make that Sales Manager Club of Los Angeles sacrifice. In a small company, for one of the store managers to be gone for eight months was a big thing.”

Legends luncheon, please see page 4.

Please see page 34

Group helped defeat ‘a lot of bad ideas’

Tammie Hetrick, president and CEO of the Washington Food Industry Association, views this year as one of opportunity.

The state’s legislative session has concluded and WFIA can focus on meeting with candidates in upcoming election.

The association plans to educate political hopefuls about independent grocers and convenience stores.

“We really want to be proactive,” Hetrick said. “We saw quite a few states give a reprieve of grocery tax…we Tammie Hetrick would definitely like to see something like that.”

Hetrick mentioned a few cities in the state are still paying hazard pay.

“In this situation, it probably shouldn’t be at a local level,” she said. “We may try to run legislation that stops local ordinances from doing that, because that was really labor driven. It was challenging for our members and really impacted those communities.”

The WFIA was able to help defeat several pieces of legislation that would have hindered the grocery industry. A major one involved ergonomics, which made a return after the association fought it off in 2003.

According to Hetrick, the measure would have given the Department of Labor and Industries the ability to regulate repetitive motion injuries.

It would have been able to penalize employers and require “strict” guidance for any repetitive use.

“That would have been horribly costly for our members. It’s just bad precedent setting and we already do a lot of those things to keep our workers safe,” she said.

“We really defeated a lot of bad ideas. So it wasn’t so much about trying to push anything legislatively, but really just trying to protect the industry and the members. And we were pretty successful in that.”

One of the measures that passed encouraged the reopening of rest areas, which had been shut down during COVID-19 pandemic.

“They didn’t have staff to maintain them. But we were able to get those opened up, which is huge for our supply chain and truck drivers. And we really supported supply chain this year,” Hetrick said.

Female pioneer found career at Gelson’s

Region Wise.

Nationwide.

APRIL 2022

The Shelby Report of the Southeast Your source for grocery news and insights since 1967

Cub Foods Pharmacy receives Larkin Community Service Award For their efforts to deliver COVID-19 vaccinations throughout the state, Minnesotabased grocery chain Cub Foods and its pharmacy team are this year’s recipients of the Peter J. Larkin Community Service Award from the National Grocers Association.

The announcement and award presentation occurred Feb. 27 during the opening session of the 2022 NGA Show at the Caesars Forum Convention Center in Las Vegas.

Cub Foods’ delegation accepted the award, led by Director of Pharmacy Aaron Sapp and Manager of Clinical Services Erin Suomala.

Greg Ferrara, NGA president and CEO, praised the members of Cub Foods’ pharmacy team. "[They] truly exemplified what this award is about by going the extra Inside mile, including donating their personal time, to take care of their local More coverage of community by helping ensure vaccines got into the arms of the local the 2022 NGA Show community, the elderly and first responders,” he said. begins on page 22.

“The commitment of their team members, who were on the ground in the stores to go the extra mile for their community, really resonated with the award review committee and reinforced the important role independent grocers play in their communities.”

Region Wise.

Nationwide.

JUNE 2022

Turnout strong as TGCSA is ‘Building for the Future’

Associated Grocers’ gathering touts new items, ideas, innovation

by Jack R. Jordan / content creator

After a two-year absence, Associated Grocers Inc. held its Spring Food Show for member retailers April 27 at the Lamar Dixon Expo Center in Gonzales, Louisiana.

Themed “AG Into the Future,” the event drew more than 1,000 vendors, manufacturers, retail members and store representatives.

Associated Grocers Inc. is a wholesale distributor to more than

Nichols recognized as Retailer of Year More than 900 people, including representatives from 28 companies and 37 key retail representatives, participated in the Tennessee Grocers and Convenience Store Association’s annual Convention & Expo.

Held May 11-12 at the Embassy Suites in Murfreesboro, Tennessee, “Building for the Future” featured a keynote address from Gov. Bill Lee, award presentations and a golf tournament.

Among other topics, Lee highlighted the state’s attempts to keep the local and national markets fed through the COVID-19 pandemic, supply chain shortages and rising inflation.

Donations from event benefit area food bank

More

Please see page 30

For more scenes from the show, please see page. 14

Many independents from Fulfillment center coming to Cleveland “Kroger is incredibly excited to expand Midwest earn Five Star status Kroger also plans facilities our delivery business in our home state and

The Shelby Report of the Southwest

The Griffin

Your source for grocery news and insights since 1967

Your source for grocery news and insights since 1967

Newest store includes some firsts for company Among features are Home

by H-E-B, two-story eatery

H-E-B’s new store in New Braunfels, Texas, is the first location in the company to feature a Home by H-E-B department and a two-story True Texas BBQ restaurant.

Opened April 28, the 122,000-square-foot store replaces a former location, which has since closed. The new store, which is on the same Walnut Avenue property, is about 40,000 square feet larger. The former store opened in 1994.

With two brands in the department, Haven + Key and Texas Proud, the Home by H-E-B collection offers hundreds of items that include home textiles, décor and furniture and accent pieces.

Under the Haven + Key line, customers can find seasonal items ranging from candles, mirrors and toss pillows to kitchen textiles, rugs, throw blankets and accent furniture.

The Texas Proud brand celebrates Texas style and features many items made by Texasbased artisans and businesses. These include wood and antler art from Broken Antler in Converse, leather goods from Lucio Tailoring Co. in San Antonio, cowhide benches from Texas Bench Worx in Luling and hand-poured candles from Rustic Swank in New Braunfels.

Shelby Report Report Northeast of the West of the

MAY 2022

FMI shakes up shopper trends report First in series tackles impact of inflationary pressures Following the release of the March Consumer Price Index containing the latest inflation numbers, FMI – The Food Industry Association issued a report examining how inflationary pressures are impacting the cost of food at the grocery store.

It is the first in a six-part “2022 U.S. Grocery Shopper Trends” series conducted in partnership with The Hartman Group Inc. The series is designed to explore food shoppers’ journeys and behaviors. Expanding on the annual report, the first analysis focuses on the shopper landscape. It found Americans are balancing a mix of concerns, including their health and safety as it relates to COVID-19, higher food prices and out-of-stocks.

“Shoppers tell us they have the lowest level of concern about COVID-19 since the pandemic began,” said Leslie Sarasin, president and CEO of FMI. “However, while shoppers’ concerns about contracting the virus have subsided compared Leslie Sarasin

to a year ago, their expressed anxiety regarding food prices has returned to similar levels witnessed during the summer of 2020. Further exacerbating this stress, Americans’ frustration regarding out-of-stocks has not abated.”

Concerns for COVID-19, inflation and out-of-stocks

As of mid-February, 48 percent of shoppers reported being extremely or very concerned with COVID-19, which is the lowest level of concern measured since the pandemic began but down only slightly from October 2021.

At the same time, more than half of Americans cited worries about rising food prices, with 45 percent concerned about out-of-stocks.

Consumers report their weekly grocery spending has gone up by 4 percent compared to early 2021 and 72 percent of those who have noted increased spending point to rising prices on specific items or brands as the cause.

“When we were sort of at the height of the pandemic, our research showed that we were

a Shelby Publication

IGA honors many stores in region with Five Star status

The Independent Grocers Alliance has a fresh set of Five Star retailers for 2022, many of which hail from nine states in the Northeast.

According to IGA, these retailers and their teams have continued to use their flexibility and ingenuity to keep their businesses running while adapting and evolving during the second full year of the COVID-19 pandemic.

In fact, more stores earned Five Star status this year than in 2021, according to the IGA Coca-Cola Institute, which oversaw the process.

“Six hundred fifty stores – 76 percent of our U.S. stores – earned Five Star status this year," said Jason King, training and development manager for the IGA Coca-Cola Institute.

John Ross, CEO of IGA has a theory on why there are so many.

“Many of these top retailers entered 2021 with a proverbial list of lessons learned from the first year of the pandemic, which brought panic buying and outof-stocks, but also strong profits," he said. “And many of them were ready to reinvest those profits in their business, updating signage, reaching more shoppers through the Digital Ad, and getting their e-commerce programs up and running.”

Ross said those reinvestments made a difference John Ross and put the stores in good positions for the challenges

APRIL 2022

Antitrust policymakers urged to level playing field for independent grocers Two owners from Northeast testify before FTC, DOJ Two independent grocers testified March 28 before the Federal Trade Commission and the Department of Justice Antitrust Division about how anticompetitive tactics by dominant retailers in the grocery marketplace leads to unfair conditions for independent grocers.

The remarks from Tom Charley, co-owner of Charley Family Shop N’ Save in Greensburg, Pennsylvania, and Anthony Pena, owner of City Supermarkets in Norwalk, Connecticut, came on behalf of the National Grocers Association.

They shared how consolidation in the food retail marketplace has resulted in unchecked buyer power in which a few dominant firms are able to set favorable terms, prices and product allocation for themselves.

Anthony Pena, left, owner of City Supermarkets, and Tom These discriminatory tactics are Charley, co-owner of Charley Family Shop N’ Save, provide prohibited but regulators have not remarks during a public forum hosted by the FTC and DOJ. enforced antitrust laws in decades.

Charley, a fourth-generation retailer, spoke about how his great-grandfather emigrated from Syria in 1900 and sold produce door to door before opening his own food distribution business.

The family now has three “Shop N Save” grocery stores within a 15-mile radius in Pennsylvania, but they are the only local independent retailer in the area.

“Independent grocers don’t shy away from a challenge. But I want to address a challenge that’s gotten

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The Independent Grocers Alliance has a fresh set of Five Star retailers for 2022.

According to IGA, these retailers and their teams have continued to use their independent flexibility and ingenuity to not only keep their businesses running during the second full year of the COVID-19 pandemic, but to adapt and evolve to make their stores thrive.

In fact, more stores earned Five Star status this year than in 2021, according to the IGA Coca-Cola Institute, which oversaw the process.

“Six hundred fifty stores – 76 percent of our U.S. stores – earned Five Star status this year," said Jason King, training and development manager for the IGA Coca-Cola Institute.

The following stores were among those in the Midwest to earn the

Please see page 30

This issue of The Shelby Report of the West is chock full of the latest happenings from around the region.

Our intrepid EVP Bob Reeves has been particularly busy, turning up at spring events ranging from the WAFC convention and the Illuminators Torch Award Ceremony to the always popular FPFC Expo.

Coverage of all of these – and more – can be found inside.

for delivery in Texas, Alabama

Cincinnati, Ohio-based The Kroger Co. has announced it will offer delivery through the addition of a customer fulfillment center in Cleveland.

The facility, powered by the Ocado Group, will combine vertical integration, machine learning and robotics to provide an affordable and fast fresh food delivery service. It will measure 270,000 square feet and is expected to create up to 400 new jobs. Officials said it will become operational 24 months after the site breaks ground.

provide northeast Ohioans access to thousands of fresh and popular products, including our industry-leading Private Selection and Simple Truth brands, through our customer fulfillment center,” said Gabriel Arreaga, Kroger’s SVP and chief supply chain officer.

“The Cleveland region facility is an accelerant to our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023. We’re eager to provide a rewarding experience for our new customers in northeastern Ohio and Pennsylvania and create new jobs for individuals passionate about technology, engineering, operations, logistics and transportation, inventory and quality management, and customer service and engagement.”

Luke Jensen, CEO of Ocado Solutions, shared his excitement.

“As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across Cleveland, Pennsylvania and beyond,” he said.

“This announcement marks another Please see page 30

Please see page 34

Annual awards program honors difference makers

Rob Ikard, TGCSA president; Frank Schmitt, AWG Memphis division VP and division manager; Jimmy Nichols, president and COO of Houchens Food Group; and Terry Roberts, AWG Nashville division VP and division manager

“We have the highest inflation in 40 years and there are a lot of reasons for that. But what we’re trying to do at the local level is work with folks like this to mitigate the damage that it does for Tennesseans,” Lee said.

Please see page 32

The

Shelby Report

Diversity and Inclusion – these are terms seen and heard often DIVERSITY & INCLUSION in the workplace these days. But what do they mean and why are AWARD they important?

2022 According to Merriam-Webster, diversity is the inclusion of people of different races, cultures, etc. in a group or organization.

Inclusion is defined as the act or practice of including and accommodating people who have historically been excluded (as because of their race, gender, sexuality or ability).

The Shelby Report of In our June editions, The Shelby Report will be recognizing individuthe Southeast’s als and companies in the grocery industry that have incorporated diverD&I honorees begin sity and inclusion into their cultures in an effort to make sure all their on page 16. employees or members feel free to be their authentic selves.

Campbell’s introduced an actionable diversity and inclusion strategy in 2020 with three pillars: capabilities, advocacy and accountability. Also in 2020,

Inside

Please see page 34

The ROFDA Spring Conference returned in fine fashion May 12-15 as members gathered at the Hyatt Regency Hill Country Resort & Spa in San Antonio, Texas.

For scenes from the festivities, please see page 28.

Please see page 42

17th Annual

Please see page 42

Celebrating 36 influential women in the Southwest

The Shelby Report of the Southwest presents its annual tribute to Women of Influence in the food industry. This year’s slate of 36 honorees ranges from presidents and VPs The Shelby-Griffin Report to managers, directors and supervisors.

They are among the leading executives in their respective fields, but their candid responses to questions from the Shelby team also reflect how they handle their other roles – as wives, mothers, sisters and even grandmothers.

Whether they’ve worked there decades or just a few months, these women are making an impact at their companies. Beginning on page 27, they share advice for up-and-coming professionals, as well as detail some of the challenges and rewards they’ve experienced along the way.

And you’ll also learn about the defining moments in their careers.

in the food industry

that arrived in 2021, such as labor and supply chain issues.

According to IGA, the 2021 assessment continued to reflect the changes stores were going through. The survey was streamlined to address what was truly important, eliminating graded questions about in-stock levels (since many retailers continued to experience uneven supply) and refocusing what customer service looks like during the pandemic.

"The assessment aims to identify and honor the stores that are excelling in the independent industry, and at the same time, offer guidance and feedback to the stores who need it," said Paulo Goelzer, president of the IGA Coca-Cola Institute. "It's not about catching you doing something wrong, but rather identifying tactical ways we can help you do better.”

Five Star honorees were determined from the average of two assessment visits in 2021, which were conducted in the spring and summer/ early fall. They used new measurement goals and a more modern and Please see page 30

Please see page 30

ADUSA converts first center of 2022 into self-managed network Pennsylvania addition boosts total to 21 facilities The Bethlehem, Pennsylvania-based ADUSA Supply Chain network has converted its first facility of 2022 into a self-managed network, continuing a three-year journey to establish an integrated, self-distribution network to support Ahold Delhaize USA brands’ growth.

The addition of this facility brings the total of network facilities to 21, according to the company.

“The conversion of the Bethlehem facility is an important milestone,” said Bob L’Heureux, VP of supply chain services for ADUSA Supply Chain

Services and self-distribution implementation lead.

“It’s not only the first facility to convert in 2022, but with the addition of this distribution center, we now have the first facility in the network that serves more than one Ahold Delhaize USA brand. This is an important capability to add as we continue to transform the supply chain network into an integrated, flexible model that supports omnichannel growth for the brands we serve.”

Please see page 30

For the best value add a digital subscription and stay informed anywhere, anytime.

The Shelby Report of the Southwest Your source for grocery news and insights since 1967

Newest store includes some firsts for company Among features are Home

by H-E-B, two-story eatery

H-E-B’s new store in New Braunfels, Texas, is the first location in the company to feature a Home by H-E-B department and a two-story True Texas BBQ restaurant.

Opened April 28, the 122,000-square-foot store replaces a former location, which has since closed. The new store, which is on the same Walnut Avenue property, is about 40,000 square feet larger. The former store opened in 1994.

With two brands in the department, Haven + Key and Texas Proud, the Home by H-E-B collection offers hundreds of items that include home textiles, décor and furniture and accent pieces.

Under the Haven + Key line, customers can find seasonal items ranging from candles, mirrors and toss pillows to kitchen textiles, rugs, throw blankets and accent furniture.

The Texas Proud brand celebrates Texas style and features many items made by Texasbased artisans and businesses. These include wood and antler art from Broken Antler in Converse, leather goods from Lucio Tailoring Co. in San Antonio, cowhide benches from Texas Bench Worx in Luling and hand-poured candles from Rustic Swank in New Braunfels.

Please see page 42

MAY 2022

FMI shakes up shopper trends report First in series tackles impact of inflationary pressures Following the release of the March Consumer Price Index containing the latest inflation numbers, FMI – The Food Industry Association issued a report examining how inflationary pressures are impacting the cost of food at the grocery store.

It is the first in a six-part “2022 U.S. Grocery Shopper Trends” series conducted in partnership with The Hartman Group Inc. The series is designed to explore food shoppers’ journeys and behaviors. Expanding on the annual report, the first analysis focuses on the shopper landscape. It found Americans are balancing a mix of concerns, including their health and safety as it relates to COVID-19, higher food prices and out-of-stocks.

“Shoppers tell us they have the lowest level of concern about COVID-19 since the pandemic began,” said Leslie Sarasin, president and CEO of FMI. “However, while shoppers’ concerns about contracting the virus have subsided compared Leslie Sarasin

17th Annual

to a year ago, their expressed anxiety regarding food prices has returned to similar levels witnessed during the summer of 2020. Further exacerbating this stress, Americans’ frustration regarding out-of-stocks has not abated.”

Concerns for COVID-19, inflation and out-of-stocks

As of mid-February, 48 percent of shoppers reported being extremely or very concerned with COVID-19, which is the lowest level of concern measured since the pandemic began but down only slightly from October 2021.

At the same time, more than half of Americans cited worries about rising food prices, with 45 percent concerned about out-of-stocks.

Consumers report their weekly grocery spending has gone up by 4 percent compared to early 2021 and 72 percent of those who have noted increased spending point to rising prices on specific items or brands as the cause.

“When we were sort of at the height of the pandemic, our research showed that we were Please see page 42

Celebrating 36 influential women in the Southwest

The Shelby Report of the Southwest presents its annual in the food industry tribute to Women of Influence in the food industry. This year’s slate of 36 honorees ranges from presidents and VPs The Shelby-Griffin Report to managers, directors and supervisors.

They are among the leading executives in their respective fields, but their candid responses to questions from the Shelby team also reflect how they handle their other roles – as wives, mothers, sisters and even grandmothers.

Whether they’ve worked there decades or just a few months, these women are making an impact at their companies. Beginning page news 27, they share for up-and-coming Your sourceon for grocery and insights sinceadvice 1967 JUNE 2022 professionals, as well as detail some of the challenges and rewards they’ve experienced along the way.

Educating candidates ahead Another first for Tyndall – And you’ll also learn about the defining moments in their careers.

The Shelby Report of the West of election crucial for WFIA

addressing FISMC Legends

Group helped defeat ‘a lot of bad ideas’

Female pioneer found career at Gelson’s

By Eric Pereira / content creator

Donna Tyndall experienced a lot of firsts in her career with Gelson’s. The Southern California native added another one recently when she addressed the Food Industry Sales Manager Club of Los Angeles Legends event.

In her introductory remarks, FISMC President Heather DeLuca noted that Tyndall became the first female “box boy” when she started working at Gelson’s in 1973. Tyndall then became the first clerk, manager, store director and director of operations who was a woman. She also was the first female EVP at Gelson’s and the company’s first employee to attend the USC Food Industry Management program.

That’s also where she met her future husband, Mike Ketcham, who was one of her FIM classmates.

As she began speaking, Tyndall took note of the number of women in attendance. She recalled when she was first invited to attend a Legends luncheon, there were only one or two women present. She pointed out that women comprised about a third of the audience.

Tyndall added she was “very humbled and honored” to be the first woman to speak at the Legends luncheon, adding that she loves the industry and its people. She then proceeded to share some lessons learned from Gelson’s legends.

When Tyndall and her twin brother turned 16, they asked for jobs at the company. Her brother was hired in about a month; it took more than a year before she was hired “because I was a girl.”

After graduating from college, she moved into management. She was named a store manager in 1987.

About 15 months later, she had the opportunity to attend the USC FIM program. One of her mentors, Bill Roulette, attended the first FIM program but wasn’t employed

by Gelson’s at that time.

“I was the first Gelson’s person who got to go…and it was For scenes from the Food Industry because Bill saw the value in it and was willing to make that Sales Manager Club of Los Angeles sacrifice. In a small company, for one of the store managers to be gone for eight months was a big thing.”

Legends luncheon, please see page 4.

Please see page 34

Tammie Hetrick, president and CEO of the Washington Food Industry Association, views this year as one of opportunity.

The state’s legislative session has concluded and WFIA can focus on meeting with candidates in upcoming election.

The association plans to educate political hopefuls about independent grocers and convenience stores.

“We really want to be proactive,” Hetrick said. “We saw

quite a few states give a reprieve of grocery tax…we Tammie Hetrick would definitely like to see something like that.”

Hetrick mentioned a few cities in the state are still paying hazard pay.

“In this situation, it probably shouldn’t be at a local level,” she said. “We may try to run legislation that stops local ordinances from doing that, because that was really labor driven. It was challenging for our members and really impacted those communities.”

The WFIA was able to help defeat several pieces of legislation that would have hindered the grocery industry. A major one involved ergonomics, which made a return after the association fought it off in 2003.

According to Hetrick, the measure would have given the Department of Labor and Industries the ability to regulate repetitive motion injuries.

It would have been able to penalize employers and require “strict” guidance for any repetitive use.

“That would have been horribly costly for our members. It’s just bad precedent setting and we already do a lot of those things to keep our workers safe,” she said.

“We really defeated a lot of bad ideas. So it wasn’t so much about trying to push anything legislatively, but really just trying to protect the industry and the members. And we were pretty successful in that.”

One of the measures that passed encouraged the reopening of rest areas, which had been shut down during COVID-19 pandemic.

“They didn’t have staff to maintain them. But we were able to get those opened up, which is huge for our supply chain and truck drivers. And we really supported supply chain this year,” Hetrick said.

Inside

BACK TO BUSINESS

This issue of The Shelby Report of the West is chock full of the latest happenings from around the region.

Our intrepid EVP Bob Reeves has been particularly busy, turning up at spring events ranging from the WAFC convention and the Illuminators Torch Award Ceremony to the always popular FPFC Expo.

Coverage of all of these – and more – can be found inside.

The Shelby Report of the Midwest West Your source for grocery news and insights since 1967

Region Wise.

Nationwide.

APRIL 2022

Cub Foods Pharmacy receives Larkin Community Service Award For their efforts to deliver COVID-19 vaccinations throughout the state, Minnesotabased grocery chain Cub Foods and its pharmacy team are this year’s recipients of the Peter J. Larkin Community Service Award from the National Grocers Association.

The announcement and award presentation occurred Feb. 27 during the opening session of the 2022 NGA Show at the Caesars Forum Convention Center in Las Vegas.

Cub Foods’ delegation accepted the award, led by Director of Pharmacy Aaron Sapp and Manager of Clinical Services Erin Suomala.

Greg Ferrara, NGA president and CEO, praised the members of Cub Foods’ pharmacy team. "[They] truly exemplified what this award is about by going the extra Inside mile, including donating their personal time, to take care of their local More coverage of community by helping ensure vaccines got into the arms of the local the 2022 NGA Show community, the elderly and first responders,” he said. begins on page 22.

“The commitment of their team members, who were on the ground in the stores to go the extra mile for their community, really resonated with the award review committee and reinforced the important role independent grocers play in their communities.”

Please see page 30

Many independents from Fulfillment center coming to Cleveland “Kroger is incredibly excited to expand Midwest earn Five Star status Kroger also plans facilities our delivery business in our home state and The Independent Grocers Alliance has a fresh set of Five Star retailers for 2022.

According to IGA, these retailers and their teams have continued to use their independent flexibility and ingenuity to not only keep their businesses running during the second full year of the COVID-19 pandemic, but to adapt and evolve to make their stores thrive.

In fact, more stores earned Five Star status this year than in 2021, according to the IGA Coca-Cola Institute, which oversaw the process.

“Six hundred fifty stores – 76 percent of our U.S. stores – earned Five Star status this year," said Jason King, training and development manager for the IGA Coca-Cola Institute.

The following stores were among those in the Midwest to earn the

Please see page 30

for delivery in Texas, Alabama

Cincinnati, Ohio-based The Kroger Co. has announced it will offer delivery through the addition of a customer fulfillment center in Cleveland.

The facility, powered by the Ocado Group, will combine vertical integration, machine learning and robotics to provide an affordable and fast fresh food delivery service. It will measure 270,000 square feet and is expected to create up to 400 new jobs. Officials said it will become operational 24 months after the site breaks ground.

provide northeast Ohioans access to thousands of fresh and popular products, including our industry-leading Private Selection and Simple Truth brands, through our customer fulfillment center,” said Gabriel Arreaga, Kroger’s SVP and chief supply chain officer.

“The Cleveland region facility is an accelerant to our strategy to achieve the doubling of our digital sales and profitability rate by the end of 2023. We’re eager to provide a rewarding experience for our new customers in northeastern Ohio and Pennsylvania and create new jobs for individuals passionate about technology, engineering, operations, logistics and transportation, inventory and quality management, and customer service and engagement.”

Luke Jensen, CEO of Ocado Solutions, shared his excitement.

“As this site develops and goes live, it will be instrumental in delivering fantastic grocery experiences and exciting job opportunities to households across Cleveland, Pennsylvania and beyond,” he said.

“This announcement marks another

Scan QR code or subscribe online at theshelbyreport.com/subscribe or by calling 888-498-0771

Please see page 30

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Leading by Example

BY GRACE BECKER

Jennifer Pelayo did not set out for a career in grocery. She was on another path altogether, pursuing psychology with a mission to help and connect with people along the way.

To her surprise, however, Jennifer found a niche in the grocery industry that allowed her passion to thrive. Now, with over 15 years in the grocery industry under her belt, Jennifer is the $10,000 Legends of the Industry Scholarship recipient for the 2022-23 academic year, funded by the California Grocers Association Education Foundation. She is the fifth recipient of this scholarship that was established to honor past industry legends and to recognize up-and-coming grocery leaders who are pursuing a higher education.

No matter what she decided to do with her career, Jennifer always knew that she wanted to work with people. “To be able to meet people and help people, whether they’re children or young adults, that was a passion of mine,” she said.

What fuel’s Jennifer’s desire to help others?

Her faith. “In every situation we enter, we have an opportunity to make an impact,” she said.

For Jennifer Pelayo, Receiving the Legends of the Industry Scholarship is an Honor that Goes Far Beyond Herself

Jennifer started working at Smart & Final Stores as a cashier right out of high school after her cheer team coach, who worked at the company encouraged her to apply.

After nearly one year working in the store, she transferred to the Smart & Final corporate office for a job in human resources (HR). Jennifer didn’t necessarily associate her passion for human connection with her job in the grocery business until one day an unsuspecting opportunity changed her perspective.

During her first week working in the Smart & Final corporate office, the HR manager asked Jennifer to help organize personnel

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files. Typical of any HR office, she sorted through complaints, disciplinary notices, and termination letters, leading Jennifer to ask what the HR manager liked most about his job. He responded, “What I love most is the opportunity to help people become better at what they do here at work, but more importantly, better people for themselves and their families.”

This conversation not only has stuck with her to this day but also planted the seed for Jennifer to pursue a long career in Human Resources.

Growing up, Jennifer dreamt of attending the University of Southern California (USC), but it was not financially possible at the time.

None of Jennifer’s family members in the generation before her had the opportunity to go to college. Regardless, Jennifer had always viewed education as a priority, so she enrolled in junior college.

“ Even if I didn’t know what I wanted to do, my opportunity was here and I needed to take it,” she said.

With the help of her mentor and current supervisor, Ginny Diaz, once Jennifer decided to switch gears to HR, Ginny taught her what she would have to do to change her education and career path to HR. Jennifer switched her major from psychology to business, and after receiving her associate’s degree transferred to California State University Los Angeles to study business with an emphasis in HR management. Later, she received her Professional in HR (PHR) certification.

Meanwhile, she held various HR positions at Smart & Final, supporting both stores and supply chain as a Regional HR Representative and Regional HR Manager, advancing to her current position of Director of HR.

Around the time when Jennifer’s son turned three and she started looking into master’s programs, Ginny informed her that she’d been selected to complete the four-day Executive Education Program at USC, which seemed like a sign.

“It’s always a goal of mine to be a leader who my team feels safe with,” she said.

It was an amazing honor and privilege when she officially became a USC Trojan in March 2022 and was accepted into the master’s program.

“It’s important to know when to start, when to stop, and what to adjust,” she said.

“It felt surreal,” she said.

Now a full-time HR Director at Smart & Final and full-time master’s student in University of Southern California’s Business Management program, Jennifer has been with Smart & Final for almost 18 years.

Jennifer credits Smart & Final’s culture and growth opportunities as the reason she’s stayed so long, “Smart & Final has been so committed to my growth and has provided an environment I want to live in … They’ve shown me they care about me.”

She speaks highly of the company’s core values, which include teamwork, respect, accountability, integrity, and growth. “Those core values have been the pillars of who I’ve become,” she said.

For Jennifer, the honor of receiving the $10,000 Legends of the Industry scholarship goes far beyond herself. Now, Jennifer is committed to the further growth and development of her team.

When she learned that she is this year’s recipient, Jennifer said, “It’s an honor, but I’m a big believer of creating an example, so this is a way that I can be an example to my team and [show them] to not let any boundaries get in the way of what you want to achieve.”

Jennifer wants her team to consistently continue to grow and know that it’s ok to not always have the solution, but if you try your best and learn from mistakes, ultimately you’ll be better off.

A career woman with a husband and with young children, Jenifer acknowledges that sacrifices have to be made to juggle, work, school, and family.

Jennifer is mindful that she may be setting an example to other women who she may not even realize are watching, and she does not take it lightly.

“ It’s never too late to go back and it’s never too late to start,” she said.

She believes that continuing her educational journey will keep her sharp, “You have to stay knowledgeable, you have to stay educated.”

While ultimately working towards the role of Vice President of HR, her aspirations go beyond that, “My personal goal is to be an HR leader.”

The most rewarding part of the job, she says, happens when she’s in the “dark side of HR,” helping someone who’s struggling and wants to give up, who later goes on to receive an award or promotion. “You’re able to see the glimpse of light that you knew was there, but they couldn’t see it,” she said.

Outside of work, Jennifer is deeply involved in her local church and spends her free time meeting with a women’s group weekly, volunteering, leading bible study groups, and coaching for a bible college program.

She has also been involved in the Network of Executive Women (now called NextUP).

Ultimately, she hopes that receiving this honor will demonstrate the importance of education to her two young sons, Gregory and Gabriel. “It’s not just about the money, but what the scholarship represents,” she said. ■

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The Great Acceleration

By Carl Boutet

M

id-January 2020, I was in Shanghai on a business trip exploring the latest consumer consumption trends and how corporations were leveraging emerging technologies processes to meet them. Little did I know as I boarded a plane back home to North America that I was just a few days ahead of one of the greatest technology adoption accelerations: the global pandemic.

I spent the following weeks and months in constant contact with my Asian, then European, and finally North American networks as the pandemic rapidly expanded worldwide. Within this time, I learned and shared how businesses were adapting (read: surviving) to lockdowns and other extraordinary measures that radically changed the paths to purchase, plus their fulfillment.

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and the Race to (Grocers’) Resilience

iStock

Obviously, grocers were often at the center of many of these discussions.

In the fall/winter of 2020/21 I decided to write a book on this topic, focusing on how The Great Acceleration (a name I coined in April 2020 to refer to these rapidly shifting business dynamics) was most importantly going to build sustainable organizational resilience. A particular focus being how increases in technology adoption could help build that resilience while leveraging physical infrastructure. In other words, how improved digital processes augment physical commerce capabilities and vice versa.

During the past two years, a lens through much of the acceleration was the increase of e-commerce adoption. A trend that a recent

McKinsey survey titled “The next horizon for grocery e-commerce” forecasts will double in the coming five years. Although this is indeed an important trend, there is a broader narrative that is even more deserving of grocers’ attention: how the blurring (i.e. interoperability) of digital and physical commerce is key to building organizational resilience. Hence, it’s very vital to survival.

Zero Percent The most important data point in the same must-read McKinsey report is a far more concerning one: zero percent. This is the percentage of grocery retailers who feel “very well prepared for the transition to more digital commerce.” Sixty-four percent feel somewhat prepared, and two thirds

expect to lose market share consequently.

Thus, the race to resilience is on. A resilience that goes far beyond the ability to offer online grocery shopping.

I suspect nothing I’ve written here so far is totally shocking to you. Plus, you probably have far greater talent attraction/retention, inflation, and supply chain issues to solve.

What if I told you that is precisely why digital adoption, that augment physical capabilities, are key to solving those challenges? The critical role technology investments and capabilities play in attracting talent, more effective engagement of all stakeholders (including suppliers), and better forecasting/ fulfilling consumer needs will be at the core of your business success.

Continued on page 30 ▶

CAL I FO RNIA GRO CER | 29

◀ Continued from page 29

However, as with all things, resources are limited and must be strategically allocated.

Build Alignment First, these investments must align with your differentiation and market relevance. I.e. why your target market decides to shop with you.

In my book, I present a framework titled the Retail Relevance Index (RRI) that I based on research from Professor Kahn at Wharton to support a differentiation strategy based on my adjusted take of the four attributes of price, convenience, cultural values, and customer delight.

It’s typically used in a two-step process: First build the critical internal strategic alignment that is often lacking or being pushed in several varying directions which dilute the desired impact. Once internal alignment is built, we survey the external market to validate how these vectors significantly differentiate beyond how we might internally perceive your performance engaging your customer.

Now that you have a better idea of which attributes you wish to build and validate, you can begin to evaluate the technology solutions at your disposal to determine which will most effectively serve your purpose.

Beyond e-Commerce: e-Influence Some of you might remember that famous scene in the 1992 movie Glengarry Glen Ross where a very assertive (read: arrogant) character named Blake, played

by Alec Baldwin, is brought in to “coach” an underperforming team of insurance salesmen. Though fewer and fewer of my university students today recognize this extraordinary scene, it remains very relevant

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

in building relevance and resilience. Those who do remember the scene probably remember the “ABC” acronym, meaning “Always Be Closing.” To me, an even more important acronym followed that one in this historic scene: AIDA. This has long been taught in marketing classes as the stages or funnel necessary to convert consumers into customers. Although the “Attention, Interest, Decision, and Action” funnel today is often converted into a more circular model where we show the importance of building loyalty, it remains relevant in how we build the differentiation we discussed above and guide our resource allocation.

How does your investment build either of those four factors and align with your differentiation strategy? Does it extend beyond the basic (now table stakes) transactional e-commerce capabilities to better build awareness, interest, and desire that will deliver conversion?

Put another way, how can technology solutions contribute to building e-influence?

This is harder than it might seem as we often think that it’s simply building a social media campaign and/or an effective e-flyer.

With the proliferation of data points, consumers will be looking for a far more relevant and personalized approach rather than the generic conversion of what (once) worked in more static-analogue times.

Back to Basics: The Retail Equation Another valid stress test that can help bring more clarity to your building resilience in your investment is validating how it

measures up against the perennial retail equation. This is similar to the AIDA model, but this time in much more familiar terms: Does the technological solution I am considering drive more store traffic, increase conversion, basket size and/or margin? This applies both to in-store and online. Ideally both as we know how the two are now converging. More on that in the conclusion.

In writing my book, I interviewed several business leaders in early 2021 to get their perspectives on the ramifications of The Great Acceleration. Among them, I interviewed Stacey Shulman, who, at the time, was Chief Innovation Officer of the retail and hospitality sectors at Intel Corp.

Based in California, she spoke about the impacts of the acceleration on the grocery sector, that was strongly benefiting from the imposed consumption shifts (mainly the temporary closures of other food services such as dine-in restaurants).

She expressed how this combination of sudden increases in revenues and delay of technological investments should create a sense of urgency for grocers to address the needed adaptations. In other words, through the government-imposed lock downs, grocers were offered a glimpse of a virtual consumption future, only it came a decade earlier than expected.

The challenge was how to best prepare for it in a dynamic industry environment, with a proliferation of new entrants, channels, and processes to meet consumer demand.

We also discussed how many grocers’ digital transformation roadmaps were postponed to focus on more pressing matters. Waiting for new solutions to emerge, tracking competitors’ investments, third party negotiations, seeking inspiration from global leaders, and attracting the right talent all seemed to justify these delays. Then the pandemic exposed many vulnerabilities from this lack of investments. Customers dealt with inadequate, unstable, or poor digital platforms. Not to mention the entire

logistical fulfillment piece that is impossible to prepare for in such a sudden influx. This is a situation that we know today’s consumers are no longer willing to tolerate.

Conclusion: The Rise of i-commerce I’m presently writing my next book exploring the many ways, thrust by The Great Acceleration’s digital proliferation, we have what I refer to as a rapidly thickening “digital layer” that will further impact and augment the path to purchase. This highly personalized and contextual layer that will be as thin as simple pricing, availability, and characteristics all the way to fully immersive virtual experiences. All driven by much more data collection, processing, and bandwidth capabilities that businesses will be looking

to better leverage. A recent signal of this trend is Amazon’s decision to move these capabilities away from its grocery business to its more technologically focused web services (AWS) group.

We all know that now more than ever, the quote, “The only constant is change” rings true.

The status quo is a guarantee to rapid irrelevance and the very opposite to building resilience. Now, it’s up to you to decide how to make the most of this imposed momentum. ■

Carl Boutet is Founder of StudioRx, a boutique retail/go-to-market advisory firm at the insertion of experiential design, technology and data science. He is also author of The Great Acceleration, The Race to Retail Resilience (available on www.studiorx.world ). Carl teaches the ‘new technologies and emerging business models’ class at McGill University Masters in Retail in Montreal as well as digital marketing at the Asian Institute of Technology MBA in Bangkok. He remains a perennial name on many lists of most influential retail thinkers and can be found on several global media outlets adding his retail strategy related commentary.

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Chiono Consulting 12 Weber Ln Coto De Caza, CA 92679 Contact: Vic Chiono, President E-mail: vichiono@outlook.com Phone: (949) 322-5283

Del Monte Foods Inc. 205 N Wiget Ln Walnute Creek, CA 94598-2403 Contact: Bryan Shelton, Sr. Dir., Sales E-mail: bryan.shelton@delmonte.com Phone: (925) 949-2772 Website: delmonte.com

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Good Stuff Distributor 131 W Harris Ave South San Francisco, CA 94080-6010 Contact: Ahmed Chehade, Chief Operations Officer E-mail: ahmed@goodstuffdist.com Phone: (415) 647-6617 Website: goodstuffdist.com

Homesome 1488 Darlene Ave San Jose, CA 95125-4726 Contact: Rahul Chabukswar, Chief Executive Officer E-mail: rahul@homesome.com Phone: (213) 590-3258 Website: homesome.com

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Shopper AI 418 La Calle Corte Pacific Grove, CA 93950 Contact: Gadi Maier, Chairman E-mail: gadim2020@gmail.com Phone: (415) 612-7003 Website: shopperAI.ai

Store Intelligence Inc. 6700 Koll Center Parkway Ste 109 Pleasanton, CA 94566 Contact: Daniel Tye, Dir., Account Services E-mail: dtye@store-intelligence.com Phone: (925) 470-7213 Website: store-intelligence.com

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Walmart Gets Cute As Americans returned en masse to summer vacation travel, Walmart paired with the startup company Getaway to open tiny, “cute” stores in Big Bear Lake, Calif. and the Catskill Mountains in New York. For the uninitiated, Getaway offers tiny vacation homes in situated in nature. Walmart calls these new store models, “The General Store,” and these diminutive retail establishments feature vacation goods, things you may have forgotten to pack, and local goods. While the notion of a general store conjures up old-timey, wild west imagery, similar neighborhood-based retailing concepts have proved popular over the last decade.

In the Palm of Your Hand Like a Jedi mind-tricking POS, Amazon’s latest frictionless payment concept allows customers to check out with the palm of their hands. That’s right, in 65 California stores Whole Foods shoppers can register their palms in participating locations. After the palm print is set up, store customers simply pay via a palm scan.

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

Whether its Korean facemasks, footmasks, or Frownies, it appears nobody can get enough of self-care. So let’s head to the home of fondue where if Mud baths aren’t your thing, but cheese is, you’re in luck. In Switzerland, cheese artisans have taken to offering tourists baths in giant vats of leftover whey. It’s a tradition that goes back centuries to a time when Europeans, who were justifiably over leech treatments, began bathing in whey – believing the soak had restorative effects on their skin. Every kilogram of cheese produced leaves behind nine litres of whey, so there’s plenty to go around.

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Your Snack

Psychoanalysis

Is your favorite snack a bowl of Greek yogurt with honey? Then you’re a naturally amiable person who makes friends easily. Prefer ants on a log, even as an adult? Then, you may be an actual child. The New Yorker recently published an article listing a number of popular snack foods, and their creative personality interpretations that align with your snacking habits. Care to share yours?

iStock

iStock

Expiration Dates No Longer Apply A movement to eliminate “best by dates” is gaining momentum across European supermarket chains. Recently, Marks & Spencer went public with its intention to remove “best before” labeling from its products as it works to combat food waste.

It will now be left to customers to decide whether a particular piece of produce IS okay to eat.

What’s Up with Ethnic Aisles?

The founders of Omsom, a hot new Asian spice and mealprep purveyor, have something to say to grocers about their ethnic aisles … what gives? In a viral social media video Kim Pham shares the history of the ethnic food aisle, which got its start after World War I when soldiers returning home from Europe were clamoring for flavors they’d experienced abroad. With one in three American families comprised of immigrants or their children, Omsom believes the ethnic food aisle designation is no longer representative of the United States.

unsplash

Meals in Five Items or Less with a Side of Voyeurism There’s something strange about the way so many of us unwind by watching others in some of the most mundane of settings. From cooking dinner to renovating a home, some of America’s favorite past times occur on Food Network or HGTV. A similar interest has developed on TikTok as some of the most popular influencers on the platform have built massive followings from content as simple as sharing a haul from a grocery store or farmer’s market. Another related popular content style focuses on offering culinary inspiration, using the formula of five or less items from a particular grocery store.

CAL I FO RNIA GRO CER | 41

HAPPY

Congratulations Bristol Farms on an amazing 40 years!

TH

ANNIVERSARY!

Thank you and your shoppers for keeping an impressive 2,868,716 pieces of plastic out of the environment while partnering with Repurpose!

Congratulations to Bristol Farms on achieving 40 years in the business!

Together we make everyday green for people and planet.

We appreciate your partnership.

@repurpose | repurpose.com

UNFI-Ad_Bristol Farms 40th Anniversary .indd 1

DELIVERING GOODNESS TO YOU OUR DRIVING FORCE Our mission to serve and feed America is fueled by our passion for natural & organic, specialty, and fresh products.

OUR CRAZY GOODTM NETWORK With a 16 distribution centers network, KeHE has a national footprint - coast to coast. Each one serves the unique needs of our retail partners, providing everything from emerging brands to tried & true favorites shoppers crave.

DISCOVER HOW KEHE CAN HELP BRING CRAZY GOODTM SOLUTIONS AND GROWTH TO YOUR STORE. VISIT KEHE.COM. KEHE.COM |

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KEHEUS

KEHEUS

KEHEUSA

KEHEDISTRIBUTORS

8/10/22 11:10 AM

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MOMMY BLOGGER

The Heart of Inflation K I M B ER LY R A E M I L L ER WR IT E R

For parents, milk prices determine brand loyalty.

Each morning when I browse my local Facebook Mom’s Group page for updates on community events, PTA committee assignments and recommendations for local contractors, I check the milk thread.

Parents from all over my community post what they’re paying for milk and where.

Cow, soy, almond or oat; milk, more than any other item we buy for our families, dictates where most of us shop. The milk thread is only a few months old, but it most certainly marks a change in the culture of my community.

While some families have felt the sting of inflation less than others, the increase in food and gasoline prices has changed our routines. Brand loyalty is a luxury reserved for the beginning of the month, but when ends don’t meet by the end, the milk thread is the first stop in figuring out how to fill the fridge until the next payday.

The truth is budgeting can only do so much.

My income hasn’t changed, and so my budget hasn’t changed. I still have the same $600 a month/$125 a week to feed my family of four that I had two years ago. And while I can make sure everyone’s bellies are filled each morning. I can pack everyone’s lunchbox daily and make sure no one goes to bed hungry each night; it’s not the same. That $600 doesn’t buy the same amount of food, the same quality of food that it once did.

Our current culture is quick to point fingers, to find a bad guy to blame for inflation. But in the end the blame matters less than the cost.

The actual price of inflation is families.

Families of different means, beliefs, and cultures; all doing their best to care for the people and communities they love.

For my community, it comes in the form of a Facebook thread that monitors the cost of various kinds of milk. A simple gesture, but a communal one that hits the heart of our need to provide for our children.

And if there’s one thing to be learned from all this, the moms will come if the milk is cheap. ■

My family is thankfully not food insecure, but that doesn’t mean there haven’t been months this year when we dipped into savings when our cost of living didn’t fit as comfortably into our budget as it once did.

I don’t think I’m alone. I think my family represents just about every other middleclass family in this country. iStock

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PET SPECIALTY

SUPPLIER PERSPECTIVES

Service Dogs Provide Life-Changing Benefits to Veterans

By Joe Toscano, Vice President, Trade & Industry Development at Purina

Purina Dog Chow has proudly supported the military since its founding almost 100 years ago, and the strong commitment to service members continues today.

In fact, Dog Chow is celebrating five years of its Service Dog Salute campaign, which highlights the life-changing benefits that service dogs provide to veterans experiencing post-traumatic stress disorder (PTSD).

Approximately 3.5 million military veterans suffer from PTSD, and while service dogs are demonstrated to reduce the severity of PTSD symptoms and suicidal behaviors, only one in 100 of those in need who seek a service dog receive one each year.

Dog Chow is on a mission to help.

This year marks $1 million in donations from Dog Chow to service dog organizations since the start of the Service Dog Salute program in 2018. These donations help support the care and training of more service dogs for veterans with PTSD. PTSD service dogs are NOT the same as emotional support, therapy or companion dogs. Like service dogs for the blind, deaf and physically disabled, PTSD service dogs for veterans must be specifically trained to help their handler perform tasks they cannot otherwise perform on their own.

As part of this year’s Service Dog Salute program, Dog Chow has launched its first-ever Visible Impact Award in partnership with the Association of Service Dog

Providers for Military Veterans.

The award celebrates the remarkable impact PTSD service dogs have on veterans’ daily lives and recognizes these outstanding service dogs and the organizations that trained them.

research that shows most veterans with trained service dogs exhibit lower symptoms of PTSD, reduced depression and increased social participation compared to those who utilize more traditional clinical care for PTSD alone.

Starting September 1, 2022, dog lovers can join in selecting the first-ever Dog Chow Visible Impact Award winner by voting on the selected finalists at DogChow. com/service. For every vote, Dog Chow will donate $5 to the Association of Service Dog Providers for Military Veterans (up to $75,000 total) to help train more PTSD service dogs at no cost to veterans. Additionally, the winning dog’s veteran will receive a $10,000 cash prize and $25,000 for the organization that trained the service dog.

Dog Chow and Purina associates are working to bring more awareness and support to veteran service dogs. Soon, you’ll see our mission highlighted on every bag of Dog Chow that arrives in retail stores. Retailers can make an impact by carrying special Service Dog Salute in-store signage designed to drive attention and awareness for the program.

Contact your Purina sales rep to learn more.

The Dog Chow Visible Impact Award complements ongoing

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

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