California Grocer, Issue 6, 2019

California

it’s all about the experience PAGE 40

complying with ab 5 PAGE 56 2019, ISSUE 6

CALIFORNIA GROCERS ASSOCIATION

Rethinking store page 28

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Bring a New Set of Bright Ideas Into 2020 Join your independent grocer family for a week of creative thinking, inspiration and relaxation.

In a world that offers few opportunities to slow down and reset, the New Year marks a time when renewal is possible. Provide yourself with the occasion for fresh thinking by registering for this year’s Symposium. You will come away with a renewed spirit and fresh ideas that will benefit your business for years to come.

Registration includes: 7 nights resort accommodations from January 12-19, 2020 All conference educational sessions and programs Opening and closing night receptions Breakfast functions (Monday, Tuesday, Wednesday & Thursday)

REGISTER TODAY For complete information and to register, visit www.cagrocers.com/events or call (916) 448-3545.

Featured Speakers The Power of Persistence, Creativity, and Respect Matthew Griffin Co-Founder and CEO Combat Flip Flops

Escape Velocity: Extend Beyond Your Orbit to Find New Success Kevin Ervin Kelley Principal and Co-Founder Shook Kelley

Connecting the Workplace and Life Through F.U.N.!

January 12-19, 2020 Fairmont Kea Lani Wailea, Maui, Hawaii

Paul Long Consultant & Motivational Speaker

Event Produced by California Grocers Association Independent Operators Committee

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS

Chair Phil Miller C&S Wholesale Grocers

Second Vice Chair Renee Amen Super A Foods, Inc.

Secretary Lynn Melillo Bristol Farms

First Vice Chair Hee-Sook Nelson Gelson’s Markets

Treasurer Dennis Darling Foods Etc.

Immediate Past Chair Kendra Doyel Ralphs Grocery Company

Denny Belcastro Kimberly-Clark Corporation

Steve Dietz United Natural Foods, Inc.

Casey McQuaid E&J Gallo Winery

Independent Operators Committee Chair

Elliott Stone Mollie Stone’s Markets

DIRECTORS

Mark Arrington Post Consumer Brands

Sergio Gonzalez, Northgate Gonzalez Markets

Doug Minor Numero Uno Market

Jeff Severns PepsiCo Inc.

Denny Belcastro Kimberly-Clark Corporation

David Higginbotham Stater Bros. Markets

Joe Mueller, Kellogg Company

Greg Sheldon Anheuser-Busch InBev

Jeanne-ette Boshoff MillerCoors

Bryan Jankans, Mondelēz International

Ken Mueller Raley’s

Bob Bukovec Tyson Foods, Inc.

Saj Khan Nugget Markets

Tim Murphy Costco Wholesale

Jeff Sigmen Reyes Coca-Cola Bottling LLC

Pamela Burke Grocery Outlet, Inc.

Nancy Krystal Jelly Belly Candy Co.

Skip Nugent Best Buy Markets IGA

Doug Christman Beverages & More, Inc.

Michel LeClerc North State Grocery Inc.

Subriana Pierce Navigator Sales & Marketing

Brent Cotten The Hershey Company

Hillen Lee Procter & Gamble

Willie Crocker Bimbo Bakeries USA

Hal Levitt The Save Mart Companies

Chris Podesto Food 4 Less-Stockton/ Rancho San Miguel

Steve Dietz United Natural Foods, Inc.

John Mastropaolo Chobani, Inc.

DJ Deutsch California Fresh Market

Jonathan Mayes Albertsons Companies, Inc.

Jake Fermanian Super King Markets

Mark McLean CROSSMARK

Damon Franzia Classic Wines of California

Casey McQuaid E & J Gallo Winery

President/CEO Ronald Fong

Director CGA Educational Foundation Brianne Page

California Grocer is the official publication of the California Grocers Association.

Director Digital Communications Nate Rose

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

CALIFORNIA GROCERS ASSOCIATION

Senior Vice President Marketing & Business Development Doug Scholz Vice President Communications Dave Heylen Vice President Government Relations Kelly Ash Senior Director Events & Sponsorship Beth Wright

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Director Administration & Human Resources Jennifer Gold Controller Gary Brewer

Scott Silverman KeHE Distributors, LLC Lee Smith Smart & Final Stores Rick Stewart Susanville Supermarket IGA Joe Toscano Nestlé Purina PetCare

Mike Ridenour The Kraft Heinz Company

Jim Van Gorkom NuCal Foods

Casey Rodacker Mar-Val Food Stores

Richard Wardwell Superior Grocers

Jaclyn Rosenberg Nielsen

Karl Wissmann C & K Market, Inc.

Jeff Schmiege Unilever

Kevin Young Young’s Payless Market IGA

For association members, subscription is included in membership dues.

Subscription rate for non-members is $100.

© 2019 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com Editor Dave Heylen dheylen@cagrocers.com For advertising information contact: Maria Tillman mtillman@cagrocers.com

CONTENTS | ISSUE 6

FEATURES

28 Rethinking the Form and Shape of Grocery Stores Our society’s intense interest in and focus on food is unlike anything we have seen in past generations, but grocery stores have not fully capitalized on this massive social phenomenon and cultural movement.

e c n e i r Ex pe t the

u It’s all abo

40

After decades in and around the food business, newlyelected CGA Chair Phil Miller has come to one indisputable conclusion – the customer experience is much more important than having the most unique products at the best price.

COLUMNS President’s Message Success Amid Hostility. . . . . . . . . . . . . . . . . 4

50 A Moment in Time This year’s CGA Strategic Conference explored the gaps that exist in the adoption of new technology, disruptive shifts in corporate leadership and employee culture, and the collaboration gaps that exist between producer and consumer, while providing valuable result-focused networking and business meetings.

Chair’s Message It’s Been an Incredible Year. . . . . . . . . . . . . . 6 Viewpoint Data Points, Pressure Points, & TMI.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Capitol Insider Adding to the Normal Chaos. . . . . . . . . . . 16 Inside the Beltway Thanks for the 2019 Victories.. . . . . . . . . . 20 Washington Report Industry Issues Remain Despite Distractions.. . . . . . . . . . . . . . . . . . . . 22 Mommy Blogger Combating Food Insecurity is Everyone’s Business. . . . . . . . . . . . . . . . . 64

56 Complying with AB 5 California’s Assembly Bill 5 dramatically changes the “independent contractor versus employee” tests for every business in the Golden State. Every business person should understand what this new law means to their company.

DEPARTMENTS Outside the Box New Retail Perspectives.. . . . . . . . . . . . . . . 12 CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . 26 15 Minutes With Miyoko Schinner. . . . . . . . . . . . . . . . . . . . . 60 Index to Advertisers. . . . . . . . . . . . . . . . . . 63

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PRESIDENT’S MESSAGE

Success Amid Hostility

RO N F O N G PR E S IDE N T AN D CEO CALIFOR N IA GR OCE R S AS S O CIATIO N

As the clock ticks down on 2019, it’s a good time to reflect on the Association’s accomplishments this past 12 months.

Despite a very hostile legislative environment with many businesses in the crosshairs of California’s democratically-controlled Legislature and Executive Branch, the Association fared well in 2019 and actually posted some significant victories.

Here are just a few highlights from this year’s legislative scorecard: • After several frustrating years working to find an answer to California’s broken beverage container recycling program, the Legislature passed and the governor signed CGA-sponsored legislation that provides relief, for now, from sanctions placed on our industry due to closure of hundreds of recycling centers.

stores to use online delivery services like Instacart, and possibly impose costly fines for non-compliance. CGA’s lobbying team made sure it was not even put up for a vote by the full Assembly.

In addition to these and other victories related to CGA-specific advocacy efforts, our government relations team also aggressively lobbied via coalition work with the California Chamber of Commerce and other business lobbying groups.

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Moving away from advocacy, the other big news for CGA in 2019 was the unveiling of our member-owned headquarters. After a near total renovation, CGA hosted a gala open house and invited elected officials, community leaders and member companies to join in the festivities.

We’re extremely proud of our new headquarters and its role in helping revitalize Sacramento’s downtown district.

We encourage all members visiting the state capitol to drop in and tour one of Sacramento’s historic buildings.

These are just a few examples of your membership dues at work. Whether it’s fighting for your business, or positioning CGA for a strong, healthy future, your Association always has your best interest in mind. We appreciate your tremendous support. Now on to 2020! ■

• CGA was successful in saving retail member companies hundreds of thousands of dollars in potential lost sugar-sweetened beverage sales, and prevented potentially costly fines by effectively killing AB 765. In fact, thanks to CGA’s lobbying team, the bill failed to even be heard in committee.

• The Association also was instrumental in helping defeat AB 1360, which would have severely curtailed the ability for grocery

Now a word of caution. While we registered some significant victories, keep in mind a number of bills defeated in the first of this two-year session may come back to life in 2020. I encourage you to continue tracking legislation via our website, cagrocers.com, and in Checkout, our weekly e-newsletter.

Ron Fong speaking at the 2019 CGA Strategic Conference.

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CHAIR’S MESSAGE

It’s Been an Incredible Year

K EN DR A DOY EL R ALPHS GR OCERY CO./FOOD 4 LE SS/FO O DSCO

We are taught from a very young age that the more you put into something, the more you will get out of it.

That has never been more exemplified for me than during this last year as I had the opportunity to serve our great Association as Chair of the Board of Directors.

approach. I am truly grateful for their constant drive to ensure our voice is heard and even sought after.

There are so many accomplishments that 2019 had in store for CGA. Our Educational Foundation had another year of changing lives and supporting dreams. We all learned a great deal at the Independent Operators Symposium early in the year and drove meaningful results while squeezing in a little fun.

It has been an incredible year full of so many accomplishments and opportunities for our industry, and it has been one of my professional life’s biggest honors to serve in this capacity. While extra time was needed in my calendar, I got out of it ten-fold what I gave.

We operate in a state where strong associations are critical, and CGA really hit the mark this year.

From successfully securing temporary relief for grocers in the recycling arena to privacy concerns, labor laws and sugarsweetened beverage bills, just to name a few, CGA fought against anti-business bills with success.

Whether it is through tremendous coordinated efforts like Grocers Day at the Capital or countless city halls every week across the state, our Association is a vigilant voice for our companies and our associates.

This work will never slow, and our CGA staff is second to none in its influence and

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The CGA Strategic Conference was one of our most successful ever. Attendees found great value and a solid ROI with their attendance while our speakers and education platforms were thoughtprovoking and compelling. I am hopeful that many of the takeaways we all had during this time together have driven positive results for you and your companies.

This year, CGA opened our new building which is a spot in Sacramento for our industry to call home. An incredible committee led us through construction and all that comes with it. We are complete and fully leased with our other office spaces and it makes our mark on the growing downtown Sacramento.

We owe great thanks to everyone who worked to make this a reality over the years, as I know it’s something you’re as proud of as I am.

I learned a great deal from the students at both the University of Southern California and Cal-Poly, San Luis Obispo that Ron and I had the pleasure of lecturing where we saw the next generation of leaders for our industry. And the list could go on for an incredible year at CGA! All that said, I gained so much from my time as Chair. You all taught me so much, shared incredible insights from your stores and offices, and inspired me on a daily basis. I can’t thank the Association enough for this opportunity to serve – know that I am humbled and truly grateful. I will be taking way more with me as I pass the gavel on to an incredible leader and team than I came to this table with in the beginning.

Thank you. ■

Ralphs & Food4Less wish to thank Kendra Doyel for her service as CGA Chair over the past year.

Her guidance and leadership has greatly benefited both the association and our entire industry.

VIEWPOINT

Data Points, Pressure Points, & TMI

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

I just had a birthday – my 65th – which meant that I’m suddenly getting a lot of phone calls and pieces of mail that aren’t exactly brightening my day.

It seems like I get at least a couple of phone calls a day offering me medical insurance of one kind of another and, to be honest, it is kind of annoying. Though those aren’t as bad as the voice mail messages I get that start out, “Hello, senior!” When I hear those two words, I generally carry through on the impulse to utter a two-word epithet and then hang up the phone. (One problem with cell phones: you can’t slam them down in disgust.)

Then, the other day I got an e-mail offering me a discount on hearing aids. I can only hope that the people who sent me that e-mail had them in so they could hear my reaction to that particular message.

It’s not that I mind turning 65. I still have my hair, I run 20 miles a week, and I have a fulfilling career that allows me to write and talk for a living, two of my favorite things.

And there are advantages. I’ve learned that one can save a fair amount of money on movie tickets and even hotel rooms when one gets to be a certain age. Plus, in places like Portland, Oregon, they don’t just offer discounts on public transportation, but even refer to you as an “honored citizen.” Makes it almost worth turning 65, since I’ve never been honored for anything before.

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While I’m not thrilled with the barrage of age-related solicitations, there are at least two reasons to be sanguine about it all.

First, turning 65 beats the alternative.

Second, I’ve generally believed that the collection and effective use of actionable data is one of the great differentiators in the current retail marketplace.

Think about it. In so many ways, the accumulation and then weaponizing of customer data is one of Amazon’s greatest advantages. I’ve been shopping on Amazon since January 1997 – fair to say I was an early adopter. I can go on the site and see what my first purchase was: a book called “Now I Know Why Tigers Eat Their Young/ How to Survive Your Teenagers,” which tells you a lot about what I was thinking 22 years ago.

But if I know that, so does Amazon…and it can take every purchase I’ve made from then to now and translate those purchases into relevant recommendations that, I suspect, turn into purchases more often than blind promotions that so many retailers send out.

(I wonder how many vegans get sent ads for beef, or how many people with celiac disease get bread promotions.)

The effective use of data was the whole idea behind Dunnhumby, which was created in the mid-90s and then sold to Tesco; Kroger’s use of Dunnhumby data, and then its acquisition of Dunnhumby USA, has been a real differential advantage for the company.

That’s not to say there aren’t risks.

That became evident recently when, as the Boston Globe reported, Wayfair embarked on a new sales strategy that created a “new customer service team, the Wayfair Insider Program, that monitors shoppers’ online browsing habits and then steps in to offer assistance as a way to close a sale.”

If you are spending a lot of time looking at an item and appear to be indecisive about buying it, you get a phone call from a Wayfair Insider, who offers to help close the deal.

Now, according to the Globe, the company says that “calls were not based on real-time browsing and noted that customers get an e-mail from Wayfair offering assistance before anyone places a call…there is a 48-hour lag time between someone browsing on the site and receiving a call, and that shoppers provided their phone number to the company in advance of their being contacted.”

But some folks still are creeped out by this and are telling the Insiders a) not to call, and b) let their superiors know that this is too much.

VIEWPOINT The thing is, there will be some people who would welcome the phone call.

Maybe Wayfair just had to do a better job of emphasizing the opt-in nature of the program, which could’ve alleviated a lot of the anxiety.

The line is different for everyone…which is one of the reasons that companies have to be careful about such efforts.

I recently wrote a piece on MorningNewsBeat that referenced the Quip toothbrush. I later got an e-mail from a reader who saw it, didn’t know what a Quip was, Googled it, and since then kept seeing sponsored posts for the product online. This is, to be sure, a common technique…we’ve all had that experience of going to an e-commerce site and then seeing relentless advertising for that product. It is one way companies like Google and Facebook make money.

The problem is that when this happens, some people feel their privacy has been invaded.

We have an ongoing debate about this in my house. My wife is annoyed by these ads, but I argue that if I am going to see ads, I’d rather see them for products in which I might be interested or might find relevant.

in my zip code. I clicked “yes,” and then was brought to a page that listed every product I’d ever bought at Whole Foods using my Prime app to get discounts.

(My far younger wife, on the other hand, finds the hearing aid ads and “hello, senior” robocalls to be hilarious. Just wait until she gets to be my age.)

Now, at first, that seemed a little creepy.

Then, in about ten seconds, I realized that by allowing them to scan my Prime app at checkout, I was permitting them to accumulate this information. Ten seconds later, as I looked at the screen, I realized I had the makings of an easy-to-use shopping list that would allow me to navigate Whole Foods online quickly and easily.

Relevance – and permission – strike me as the key.

The other day, after Amazon announced it was eliminating the $14.99-per-month fee for grocery delivery, making delivery from Amazon Fresh and Whole Foods Market just another perk included in Prime membership, I decided to see if my local Whole Foods would offer the service. I can’t imagine using it much – I can walk to Whole Foods in about five minutes – but I thought it would be good to know.

Alas, my Whole Foods is not offering the service yet, but the site asked me if I wanted to be notified when it is available

Every single one.

We went from a little creepy to relevant and permission-based in about 20 seconds. Not that long a time, not that long a trip, and leading to the potential for a more frictionfree shopping experience.

In the words of the song by George and Ira Gershwin, ‘Who could ask for anything more?’ ■

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CAL I FO RNIA GRO CER | 9

60+ sessions led by retailers for retailers – all designed to give you actionable ideas to drive immediate growth in your business.

Over 400 exhibitors representing the diverse range of product categories you need to stay updated on new products and innovations.

Take advantage of a new Tuesday Schedule which includes lunch on the show floor along with the ability to continue your education in the middle of the action in the new Education Theater without leaving the Show Floor!

Take advantage of pairing your Show attendance with familyfriendly networking opportunities including golf outings, shopping trips, zoo visits, sailing excursions, craft beer tasting events and store tours across Southern California.

New registrations options, including the ‘Bring the Team Bundle’, provide the most cost-effective pricing for total team member education. Bring your entire team to the NGA Show and take home ideas that will drive growth for your organization.

REGISTER TODAY AND SAVE 15% WITH DISCOUNT CODE: CA15

Act fast and save – advance rates are in effect through December 13, 2019.

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#NGASHOW20 10 | CAL I FOR N I A G R OC E R

...Greatly enhances comradery and information flow amongst our small but important niche in the larger grocery marketplace... The thoughtfully crafted 3-day educational sessions offer a wide range of emotionally and educationally uplifting sessions that will launch you into the new year energized and excited.

DAN STOKES & CONNIE COLLIER BROTHER & SISTER CO-OWNERS DIABLO FOODS, 1 STORE – LAFAYETTE, CA

Want to learn more about CGA’s Independent Operators Symposium?

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

cagrocers.com CAL I FO RNIA GRO CER | 11

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

Clowning Around Human Resources beware. An advertising copywriter in New Zealand hired an “emotional support clown” to attend a meeting at which he believed he was going to be fired. The clown made balloon animals during the meeting with employers and mimed crying when the employee was given his walking papers. iStock

Pre-Licked Oreos The latest campaign for the iconic cookie in the UK has Scottish pop star Lewis Capaldi licking Oreos which are then auctioned off for charity. The tagline for the campaign has Capaldi saying: “I’m going to lick them like there’s no tomorrow. For you.” Yuck! iStock

dna

GAMING

Delights

the

We’ve gone through vegan, vegetarian, flexitarian, omnivore, carnivore…etc. The next trend might be the genealogical diet in the health food space. Startups like Habit are launching the idea of people taking a DNA test and then tailoring products to their specific genetic profile.

SYSTEM

If you want to motivate supply chain employees, let them play games.

The latest trend in training people in this segment is “gamification.” It uses game mechanics to increase participation among employees and is being used by Walmart and Amazon. iStock

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iStock

Paying Up

CHEF AWARDS The James Beard Foundation has changed the categories for its “Best Chefs” awards for 2020. One change is individual awards for the best chefs in California and Texas. The new categories recognize changing population data, culinary trends and population data, the foundation said.

iStock

Amazon’s proposed purchase of 10,000 electric delivery vehicles with the goal of becoming carbon neutral by 2040 is still the tip of the iceberg. The company delivers about 10 billion items annually and has a massive transportation and data network and aside from its own vehicles uses UPS and the U.S. Postal Service to deliver Amazon packages.

Green Delivery iStock

TOY

If you want to know how consumers will be paying for purchases retailers iStock should look at the so-called Bridge Millennials, 30-40 year-olds who represent the first generation of connected consumers with spending power, according to the annual study by PYMNTS/Visa.

This group represents 60 million consumers who grew up with smartphones, tablets and wearables and their shopping experiences have been shaped by connected devices and apps. However, these consumers are purging themselves of devices and apps that don’t add value or save time and money day-to-day. In other words, less has become more.

For example, the report noted that apps like the ones that auto-fit clothes for purchase, auto-pay at restaurants, auto-find parking spaces and use smart devices like fridges to order food are both less used and of less interest to bridge millennials compared to years past.

Bagel Basics

STORIES

Time to redefine what makes a bagel? Philadelphia Cream Cheese is selling a gadget that can make a bagel-like hole in anything from pizza and waffles to an ordinary slice of bread.

The “Bagel That” hole cutter sold out immediately on Amazon.

Target, which has benefited most from the demise of Toys “R” Us, is doubling down by putting 25 mini-Disney stores in Target locations, according to reports by Ad Age. Moreover, Target is placing a store at the entrance of Walt Disney World in Orlando. iStock iStock

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ADV E R TI SE ME N T

Q & A with Phyllis Adkins, President & CEO of TruGrocer Federal Credit Union TruGrocer Federal Credit Union provides financial services to grocery industry employees, and their families, throughout the United States and is the only Federal Credit Union chartered to serve this group.

About TruGrocer TruGrocer Federal Credit Union is the only federal or state credit union in the United States that has been specifically chartered to serve grocery industry employees and their families. This includes not only employees who work for grocery store chains, but also includes grocery wholesalers that primarily sell to grocery stores.

There are over 3.4mm grocery workers in the United States.

Since chartered in 1965, TruGrocer has maintained a solid history of supporting the financial needs of people in the grocery industry and understands challenges unique to the industry and industry workers. TruGrocer stays involved in the grocery industry through its participation in the National Grocers Association (NGA), the California Grocers Association (CGA) and through its National Advisory Council (NAC) made up of volunteers from TruGrocer’s various nationwide grocery partners. TruGrocer’s partnership with industry supporters, such as FMS, also keeps the Credit Union well informed on industry related trends and issues.

What Makes TruGrocer Unique?

Unlike many other credit unions that are limited to select employer groups or geographic communities, TruGrocer’s charter allows grocery and grocery wholesale employers to offer their associates a credit union employee benefit without having to submit for federal or state approval, or be concerned with geographic limitations.

TruGrocer has stayed true to credit union principles and the philosophy of “common bond”. While TruGrocer offers many of the same financial services as a bank, it is not like a bank nor does it operate like a bank. TruGrocer’s management team and volunteer Board of Directors is committed to providing valuable financial services to grocery industry employees, while not charging members outrageous fees.

TruGrocer typically beats the competition with regard to savings rates, loan rates, service fee rates and the number of no-fee financial services. For example, TruGrocer checking accounts have no minimum balance requirements, no monthly service fee, no per transaction fee, no service charge for using a non-TruGrocer ATM and no fee to replace ATM/POS/Debit Card plastic. By partnering with TruGrocer, grocery employers can help their employees keep more of their hard earned money.

Another advantage of partnering with TruGrocer is assurance that employees considered “un-bankable” will be able to open accounts, giving them another opportunity to establish good credit and good credit habits. Employers can eliminate costly “Pay Card” programs and have their employees utilize a checking account at TruGrocer, direct deposit and a TruGrocer Debit Card. Employees have access to their funds 24/7 at over 30,000 CO-OP Network surcharge free ATM’s nationwide (and TruGrocer doesn’t charge members a “back end” service fee for using an ATM not owned by TruGrocer!).

What Else Does TruGrocer Offer Grocery Industry Employers?

There are many compelling reasons to partner with TruGrocer, including: • The opportunity to differentiate your company with a distinctive competitive advantage; • TruGrocer is committed to the grocery industry, unlike credit unions whose membership is open to everyone who works or lives in a designated geographic area or works for a specific company; • Offering a credit union is a great employee benefit, at no cost to employers, which enhances an employer’s benefit package and value proposition; • Marketing materials can be co-branded at a grocery partner’s request, helping to strengthen an employer’s image as an “employer of choice”; and • Save time and money by eliminating payroll cards – direct deposit to TruGrocer, with an ATM/POS/Debit Card, is all employees need and if their card is lost or stolen, they work directly with TruGrocer staff for a free replacement.

To add TruGrocer to your Employee Benefits Package, contact Chris Demaray, Director of Member Service, at cdemaray@trugrocer.com.

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CAPITOL INSIDER

Adding to the Normal Chaos LO UI E B ROW N IN T HE S ACR AME N TO OFFICE O F K AHN, S OAR ES AN D CON WAY, L L P

2020 is right around the corner, which means it’s an election year.

Brown

In Sacramento, an even-numbered year usually adds to the normal chaos of the legislative session. As we look ahead, 2020 will not likely disappoint.

Elections The California Legislature moved its primary to March so it would be relevant as it relates to choosing who will run for the Oval Office.

This also means the election season will be at full speed when the Legislature returns on January 6.

In 2020, all 80 Assembly Members, 20 State Senators and every member of Congress will stand for election.

Term limits will have a minor impact on the make-up of the Legislature next year.

However, some notable members will be retiring in 2020, like Senators Jim Beall, Cathleen Galgiani, Jerry Hill, Hannah-Beth Jackson, Bill Monning, Mike Morrell and Bob Wieckowski.

Senator Jeff Stone’s resignation to accept a job in the Trump Administration has created another vacancy. There are no Assemblymembers forced out in 2020 due to term limits, but other factors will create open seats. Assemblymember Christy Smith is running for the 25th Congressional seat, vacated by Katie Hill. So, the 38th AD is now open.

iStock

“the election season will be at full speed when the Legislature returns on January 6.

In 2020, all 80 Assembly Members, 20 State Senators and every member of Congress will stand for election. ” 16 | CAL I FOR N I A G R OC E R

Assemblymembers Eggman and Limón are seeking a move to the Senate to replace Senators Galgiani and Jackson, respectively, making the 13th and 37th Assembly Districts open in 2020. And, Assemblymember Melissa Melendez announced she would run to fill out Senator Stone’s term in the Senate.

Special elections timed with the normal election calendar will make 2020 even more interesting.

Initiatives With elections, come initiatives. The last few ballots have had a large number of initiatives included and 2020 looks as though it will not disappoint. Here’s a brief look at some of the initiatives likely to be on the November ballot.

Cash Bail Referendum – The Legislature passed legislation at the end of 2018 to eliminate the cash bail system in California. The bail industry promptly filed a referendum petition and gathered the requisite number of signatures to place the implementation of the law on hold until the voters had their say. If voters uphold the Legislature’s action by voting no (correct, a no vote will be a signal of support for the law), then almost immediately the State will be required to eliminate cash bail and replace it with a system based on a risk assessment conducted by county probation departments in concert with judges.

CAPITOL INSIDER

Proposition 47 Reform – CGA was part of an effort to qualify a criminal justice initiative in 2018 that makes some changes to Proposition 47, which was passed by the voters in 2016. While the measure had a sufficient number of signatures, they were not certified until after the deadline. So, it rolled over until 2020.

For CGA members, this initiative will place a definition of Organized Retail Crime into the Penal Code and revise previous changes to the shoplifting code sections which has resulted in an unacceptable increase in property crimes committed on retail premises.

retained for a full campaign. It remains to be seen if this is a bluff by the companies to force the Legislature into resolving the dispute with legislation and losing control over future changes in this area of law.

Legislation And, of course, there will be legislation.

If history is to be repeated, we can expect around 2,500 bills to be introduced. Having endured another season of utility-sparked

wildfires and blackouts, the Legislature will no doubt seek to make these issue areas a top priority in 2020. Other issues like affordable housing, AB 5 carve outs, climate change and push back on Trump Administration policies will no doubt also be part of the agenda.

As for CGA, we will continue to seek reasonable and comprehensive solutions to the State’s bottle bill program, which arbitrarily punishes grocers when recyclers are forced out of business. ■

Split Roll – This initiative will reform Proposition 13 by removing commercial property and requiring it be assessed for real market value every three years.

The anticipated revenue is approximately $11 billion per year.

Privacy – A privacy initiative was pulled from the ballot at the last possible minute in 2018 when proponents reached an agreement with the Legislature and opposition to place the language in legislation and forego a costly ballot box fight.

The proponent, Alastair Mactaggart, has now decided to take it to the ballot once again after the number of bills introduced in 2019 to make changes to the legislation adopted in 2018, even though most of the bills introduced did not make it out of the Legislature.

Rideshare Technology – Assembly Bill 5 was signed into law to change the statutory test for how employers classify independent contractors. While AB 5 impacts a wide swath of businesses, it was portrayed mainly as an attack on the gig economy and rideshare companies like Uber, Lyft and DoorDash.

In response to the passage of the bill, these companies deposited $90 million into an account and vowed to take their proposed solution to the voters. Language has been submitted to the Attorney General for title and summary and consultants have been

CAL I FO RNIA GRO CER | 17

Looking out for you.

Looking ahead for you.

HUB knows the Grocery Industry ȋ Tailored Insurance Solutions ȋ Safety & Risk Management Services ȋ Claim Advocacy ȋ Alternative Insurance Programs ȋ Management Liability ȋ Cyber, Privacy & Data Security HUB is proud to support CGA and partner with top Grocers throughout California.

Christopher J. Angelo 916-480-4112 | chris.angelo@hubinternational.com hubinternational.com

Advocacy | Tailored Insurance Solutions | Peace of Mind

SUPPLIER PERSPECTIVES

PET SPECIALTY

NESTLE´ PURINA

The Time is Now to Brush Up Your Pet Treat Section Shoppers Look to Treats to Improve Their Pet’s Health As more and more pet owners are becoming actively engaged and informed about their fourlegged friend’s health, targeted or functional food and treats are growing in popularity. Consumers are looking for nutrition that’s not only enjoyable, but also healthy and enables their pet to live his best life.

In fact, when it comes to pet treats – a category that has always held great potential for retailers as a basket builder – 25 percent of the category is currently made up of functional treats. It’s these better-foryou treats that are growing faster than the rest of the treat category (at nearly 5 percent growth vs. 3.6 percent). Pet treats that specifically address dental health make up 12 percent of the total pet treat category.

progresses, it becomes painful, and if left unchecked, will result

feature a crunchy exterior and chewy, porous inside that pets

Since February marked National Pet Dental Health Month, it’s important that consumers and

in the loss of the tooth.

The good news is that with consistent home dental

love. The treats, which are approved by the Veterinary Oral Health Council, help clean

retailers alike understand the importance of good oral care for pets, as well as the opportunity dental treats present to build sales in the treat aisle.

care and regular vet visits, periodontal disease can be prevented.

ORAL HEALTH CONCERNS FOR PETS

As functional pet treats increase in popularity and demand, a number of new products, specifically those formulated to help maintain good oral hygiene, are hitting the marketplace.

Purina launched the successful DentaLife® brand of dog and cat treats early in 2016.

DentaLife treats are made with wholesome ingredients and

hard-to- reach places and are scientifically proven to reduce tartar buildup on a dog’s teeth.

Under the same DentaLife® brand, Purina introduced the Advanced Clean Dental Chew for dogs. The new treats are made with a dense, chewy texture designed to keep your dog chewing longer. Together with its patented twisted triple-ridge shape, DentaLife® Advanced Clean is able to reduce tartar buildup and deliver a powerful deep clean.

Purina DentaLife® also released ActivFreshTM in January 2019, which is a revolutionary

Periodontal disease is the most common dental disease found in both adult dogs and cats. It develops as a result of bacteria and plaque that make their way under the gum line. Signs of periodontal disease include bad breath, redness along the gum line, tartar accumulation and oral pain. As the disease

AT HOME DENTAL CARE SOLUTIONS

scientific break-through in combatting bad breath. This new proprietary recipe fights bad breath at the source versus the traditional method of masking it.

THE DENTAL OPPORTUNITY AT RETAIL Pet retailers can take advantage of this trend by brushing up their treat sections to focus on these functional snacks.

Retailers should consider a monthly merchandising program that uses new merch units and secondary placements, plus highlight new items in the oral health segment. In doing so, they can realize incremental sales and profits.

Purina trademarks are owned by Société des Produits Nestlé S.A. Printed in USA. CAL I FO RNIA GRO CER | 19

INSIDE THE BELTWAY

Thanks for the 2019 Victories

J EN N I F ER H ATC H ER S E N IOR V ICE PR E S IDE N T, GOVERNMENT AND PUBLIC AFFAIR S FOOD MAR KETING INSTITUTE

With 2019 in the rearview mirror, it’s time to focus on the challenges and opportunities ahead.

About this time of year, I start to receive letters from friends recapping the events and successes of the year, so it seems like a perfect time to recap this year’s victories and think about the challenges and opportunities ahead.

The Food Marketing Institute takes government relations very seriously, but none of our government relations victories would be possible without your partnership, your input, and your advocacy; so our thanks to you for a successful 2019. We have much to accomplish ahead of the 2020 elections, but I want to highlight a sample of our achievements from this past year.

FMI Supreme Court Victory Preserving Confidentiality of Your Business Data: The Supreme Court held that the Freedom of Information Act (FOIA) does not require the government to release confidential store-level sales data related to the Supplemental Nutrition Assistance Program (SNAP). The Court rejected the “substantial competitive harm” test as having no basis in the plain text of Exemption 4. Instead, the Court held that commercial information is “confidential” when it is customarily kept private, pursuant to the ordinary meaning of “confidential.” The standard applies

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

and is being implemented in agencies throughout the government.

GMO/Bioengineering Final Rule Implementation – Ensures One National Standard for Disclosure. Avoids a Patchwork: We met with USDA officials throughout the implementation of the BE rule; compiled a compliance guide on the rule for member companies; and collaborated to address the regulation’s digital implementation through the SmartLabel program.

Advocated for Pharmacy DIR Reform In Every Venue/Platform: We utilized various in-person and social media platforms and campaigns to raise awareness of the DIR fee issue: held a congressional briefing; passed out novelty pill bottles on Capitol Hill; created an explanatory advocacy video (7,000 views in one week); enhanced grassroots push (1,500 letters to Capitol Hill in two weeks). We continue to see increased bipartisan support for DIR reform and PBM transparency and oversight, and we will continue to push for reforms in the months ahead.

Pushed for Clarity and Consistent/Fair Enforcement on CBD and Hemp-Derived Products: Engaged Congress and the administration early and often

to underscore industry priorities and concerns (oral remarks at USDA and FDA public meetings, Hill and Agency meetings); launched CBD resources portal and increased website presence; compiled a CBD Best Practices Guide for member companies.

FMI Advocacy for Passage of the USMCA During National Press Conference/ Grassroots: FMI President and CEO Leslie Sarasin joined other association leaders of the retail, agriculture, automotive, and services industries to urge lawmakers to pass the U.S.-Mexico-Canada Agreement (USMCA) at a press event this fall. FMI engaged in advocacy campaigns with Farmers for Free Trade, USMCA Coalition, and the U.S. Chamber.

Worked to Ensure SNAP Benefits Availability During Government Shutdown/Disasters: FMI successfully coordinated with our members to ensure SNAP continued to operate throughout the shutdown in early 2019, including a nationwide early distribution of all benefits.

FMI shared real-time information with our members, hosted frequent calls with FNS and FMI members, and helped address the backlog of SNAP licenses once the shutdown ended.

FMI engaged with all USDA and emergency management resources to ensure the availability of SNAP and WIC during disasters.

INSIDE THE BELTWAY FMI Pushed for QIP Fix Bill in the House and Senate: Bipartisan legislation to address a drafting error in the Tax Cuts and Jobs Act that increased the cost of making these investments. For the past year, many qualified improvements have been put on hold due to this error.

FMI Pressed Federal Reserve for Announcement on Real Time Gross Settlement: FMI submitted comments and advocated strongly for the Fed to act. FMI was joined with other trade associations in letters to Congress and the Fed Governors requesting the Fed to act. The Federal Reserve agreed with FMI and pushed forward in spite of strong big-bank opposition.

iStock

FMI Implemented New Advocacy Platform for FMI, State Associations and Issue Advocacy: Sent thousands of emails and made advocacy portals available to state associations and issue campaigns: designed to communicate with U.S. Senators and U.S. Representatives and state representatives/ senators on critical issues.

FMI Continues Advocacy/Leadership on Weights and Measures Issues: Defeated for the second time, a proposal to require tare to be placed on register receipts for random weight items. Removed all reference to Open Dating enforcement from NIST Handbook 130 since it is typically enforced by Food Safety officials rather than Weights and Measures officials.

Worked with Members/State Associations to Pass Family Meals Month Proclamations and Push for Adoption: Worked with members and state executives to pass FMM proclamations; Shared Toolkit for Participation; House Floor Speech Highlighting Benefits – One More Meal a Week!

We expect to see renewed efforts on many of these topics next year and will call on participation from the industry to help achieve more success in 2020 â–

Phil Miller

CGA Incoming Chair

Kendra Doyel CGA Outgoing Chair

CAL I FO RNIA GRO CER | 21

WASHINGTON REPORT

I n d u s t ry I s s u e s R e m a i n Despite Distractions G R EG F ER R A R A N GA PR E S IDE N T AN D CEO

Impeachment continues to capture headlines, although several important policy fights are playing out behind the scenes.

Despite the challenges presented by gridlock, the National Grocers Association is pushing ahead on important priorities, such as reforming retroactive pharmacy Direct and Indirect Remuneration (DIR) fees, fixing the retail glitch, clarifying the legal status of cannabidiol (CBD), and open trade. Below is an update on these policy issues that the NGA government relations team is actively engaged in on behalf of independent grocers: Pharmacy Direct and Indirect Remuneration (DIR) Fee Reform The House unanimously passed two bills this fall that would require more public disclosure of the discounts drug companies give to pharmacy benefit managers (PBMs).

H.R. 2115, the Public Disclosure of Drug Discounts and Real-Time Beneficiary Drug Cost Act, would require HHS to publicly post aggregate rebate data from Medicare and Obamacare exchange plans on a drug-class level.

The bills won’t change how drugs are priced or what the health system pays for them, and the narrow nature of the bills reflects how minor drug pricing reforms must be in order to get bipartisan support and stand a chance of becoming law this year.

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

However, NGA continues to work with various pharmacy groups to make sure Congress addresses DIR fees and pharmacy quality measures. NGA continues to push for the inclusion of DIR fee reform in any larger drug pricing package that is passed

by Congress and is also canvassing support for H.R. 1034 / S. 640, the Phair Pricing Act of 2019.

Taxes As previously reported, a drafting error in the Tax Cuts and Jobs Act (TCJA), known as the “retail glitch,” continues to prevent retailers from being eligible for full and immediate expensing for interior remodels to stores.

At the time of this writing, bipartisan legislation to fix the “retail glitch” had 250 House cosponsors (H.R. 1869) and 52 Senate cosponsors (S. 803). NGA is continuing to work with our industry partners to push for a retail glitch fix before the end of 2019.

We are focusing our efforts on gaining cosponsors on both the House and Senate bills while urging leadership to take up this issue as soon as possible.

Goals are to reach 290 cosponsors on the House bill, which would allow the legislation to be forced to the floor for a vote, and to reach 60 cosponsors on the Senate bill.

This would signal to leadership that taking up this issue is critically important before the end of 2019.

NGA is discussing the issue with Congressional offices daily and making significant progress in gaining cosponsors on both bills. The most likely opportunity for fixing the retail glitch is in a larger tax package of some sort.

This tax package will likely include tax extenders, several technical corrections including QIP, and items that Democrats would like in return, such as provisions related to the Earned Income Tax Credit and Child Tax Credit.

Alongside fixing the retail glitch, there are several additional tax items that NGA is advocating for Congress to pass before the end of the year, such as the extension of the Work Opportunity Tax Credit (WOTC) and New Markets Tax Credit (NMTC), two provisions of the tax code that are set to expire at the end of 2019.

Both WOTC and NMTC, along with several other provisions mainly related to energy credits, make up a group of tax extenders that have either expired at the end of 2017 or are set to expire at the end of 2019.

WASHINGTON REPORT

CBD Legal Framework

Open Trade

With the passage of the 2018 Farm Bill, CBD was removed from the list of Schedule 1 substances, and therefore we have seen a brand-new hemp and CBD industry that has rapidly developed.

Congress remains focused on passing a United States-Mexico-Canada Agreement (USMCA) by the end of 2019. Throughout the past several months, Republicans have been actively pushing for a vote on the deal, while Democrats have been pressing to address specific concerns such as enforcement, labor, and environmental standards, particularly for our southern neighbor, Mexico.

Ingestible CBD products remain technically illegal under the Food Drug and Cosmetic Act, according to the FDA, but the agency is considering an alternative regulatory approach.

Given the significant amount of consumer interest and business opportunity that CBD represents to independents, NGA has pressed FDA and Congress to identify a clear, legal pathway for CBD products to be sold at retail stores.

Members of Congress on both sides of the aisle have been working hard to reach a compromise. Republicans are asserting that if an agreement doesn't pass this year, then Democrats will suffer the price during the upcoming election cycle. However, Democrats are keen on making sure the deal addresses their concern before they will agree to a vote.

It’s important to note that the USMCA deal will not formally expire if it is not voted on in 2019, although it will be difficult to accomplish during an election year.

Supermarkets are the cornerstones of communities in California and across the country, providing nutritious and fresh food to families and spurring economic growth in the neighborhoods they serve.

Your voice and grassroots efforts help to make a difference in Washington D.C. for the entire industry. To make your voice heard on these and other policy issues impacting the supermarket industry, visit www.grocerstakeaction.org. â–

C O N G R A T U L A T I O N S

.

BRISTOL FARMS WOULD LIKE TO WELCOME THE INCOMING CGA CHAIRMAN

PHIL MILLER

C&S Wholesale Grocers

T H A N K

Y O U .

WE WOULD ALSO LIKE TO THANK THE OUTGOING CHAIRWOMAN FOR HER DEDICATION AND CONTRIBUTION

KENDRA DOYEL Ralphs Grocery Company

CAL I FO RNIA GRO CER | 23

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

Follow our journey at

TheKrogerCo.com and #

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

SPARK YOUR

PASSION Education & Events March 3-7, 2020 Trade Show: ACC North Halls, Hilton, Marriott March 4–6, 2020 ACC Halls A-E, Arena & Level 3 March 5–7, 2020 Anaheim, CA USA

The World’s Largest Natural, Organic and Healthy Products Event.

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By Informa Markets CAL I FO RNIA GRO CER | 25

CGA NEWS

PHIL MILLER, C&S WHOLESALE GROCERS, ELECTED CHAIR OF THE CALIFORNIA GROCERS ASSOCIATION BOARD OF DIRECTORS California and Nevada. The chair serves for one year. He succeeds Immediate Past Chair Kendra Doyel, Ralphs Grocery Company.

“Phil has been a tremendous CGA advocate and I know will serve the Association well in the coming year,” said CGA President & CEO Ron Fong. “He has a keen understanding of the unique challenges and opportunities facing our industry.”

Phil Miller, Vice President, West Region, was elected the 2019-2020 California Grocers Association Chair of the Board of Directors at the Association’s Annual Meeting on Dec. 6, 2019 in San Diego, Calif.

As Chair, Miller will lead the Board’s strategy regarding CGA’s numerous legislative, educational, communications and industryrelated programs. The Association is comprised of more than 300 retail companies operating more than 6,000 stores in

In addition to Miller, the following individuals were elected to the 20192020 CGA Board of Directors Executive Committee: First Vice Chair, Hee-Sook Nelson, Gelson’s Markets; Second Vice Chair, Renee Amen, Super A Foods; Treasurer, Dennis Darling, Foods Etc.; Secretary, Lynn Melillo, Bristol Farms; and Immediate Past Chair, Kendra Doyel, Ralphs Grocery Co. Directors elected to their first full threeyear term include: Doug Christman, Beverages & More, Inc.; Sergio Gonzalez, Northgate Gonzalez Markets; Bryan Jankans,

Mondeléz International; Joe Mueller, Kellogg Company; Subriana Pierce, Navigator Sales & Marketing; Chris Podesto, Food 4 Less-Stockton/Rancho San Miguel; Jaclyn Rosenberg, Nielsen; Jeff Schmiege, Unilever; Greg Sheldon, Anheuser-Busch InBev. Directors elected to their second three-year term include: Willie Crocker, Bimbo Bakeries USA; Damon Franzia, Classic Wines of California; Jonathan Mayes, Albertsons Companies, Inc.; Doug Minor, Numero Uno Market, Inc.; Mike Ridenour, The Kraft Heinz Co.; Elliott Stone, Mollie Stone’s Markets; Joe Toscano, Nestlé Purina Petcare; and Richard Wardwell, Superior Grocers.

Chair appointments to the Executive Committee include; Denny Belcastro, Kimberly-Clark Corp.; Steve Dietz, United Natural Foods, Inc.; and Casey McQuaid, E&J Gallo Winery. Former CGA Chair Bob Parriott, Twain Harte Market, was elected an honorary board member.

NEW MEMBERS CGA welcomes the following members:

Co-opportunity Market & Deli 1525 Broadway Santa Monica, CA 90404 Contact: Aung Min, Operations Director Email: aung@coopportunity.com Phone: 310-451-8902 Website: www.cooportunity.com

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

Fisher Printing Inc. 2257 N Pacific Street Orange, CA 92865 Contact: Macy Mckown, Marketing and Sales Manager Email: macym@fisherprinting.com Phone: 714-998-9200 Website: www.fisherwest.com

P.H.T. Systems Inc. 22885-C Savi Ranch Parkway Yorba Linda, CA 92887 Contact: Chris Reichert, President Email: chrisr@phtsystems.com Phone: 714-674-0369 (West Division) Website: www.phtsystems.com

Gelson’s thanks

Kendra Doyel

of Ralphs Grocery Company

for her dedication & service as the CGA Chair of the Board.

Welcome

Phil Miller

of C&S Wholesale Grocers as the incoming CGA Chair of the Board.

Mark Arrington Post Consumer Brands

Reyes Coca-Cola

Jake Fermanian

Lee Smith

Mark Foley

Rick Stewart

Super King Markets

Smart & Final Stores

Rethink THE

FORM AND

SHAPE OF

GROCERY

STORES

BY KEVIN KELLY

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

king

“So what can I do with that?”

This is a basic question we ask ourselves every day, everywhere we go and with just bout everything we encounter in our daily life. This is not an out loud question, but something that happens under our level of consciousness, as a natural part of our brain’s automatic processing system.

This processing starts first with our senses, which serve as a complex network of receptors and pathways that communicate pertinent information to our brain. Like a reconnaissance team, our eyes and other senses are constantly scanning our environment to gather relevant information and then make all kinds of snap decisions on behalf of our brain, which serves as the mission control center.

What is the brain’s recon team looking for?

Well, on a very primal level, it is looking for two critical things: enhancements or impediments to life.

Our brain and senses are constantly on the lookout for things that can help make our life better, happier, easier, more pleasurable, etc – and to avoid things that can harm us, frustrate us, slow us down or get in the way of our intentions.

As we go about our daily activities, our subconscious brain is continuously trying to make sense of the world around us by detecting, decoding and determining what it sees, hears, feels, tastes and smells. But this sense-making ability requires lots of energy, most of which is fueled by a form of sugar called glucose.

Because the brain is so rich in nerve cells, or neurons, it is the most energy-demanding organ we have, using one-half of all the sugar energy in the body. To resolve this problem of limited brainpower, our more efficient subconscious system takes over the bulk of our decision-making. This subconscious system works in the background and conserves energy by doing something called predictive coding.

In short, predictive coding is an automatic process our brain uses to quickly scan our environment and make microsecond decisions about what something is, whether that something can help or hurt us and, most importantly, trying to answer the question of what can we do with that something. We rely on this predictive coding mechanism because it reduces our need to study everything around us in exhausting detail.

Continued on page 30 ▶

CAL I FO RNIA GRO CER | 29

◀ Continued from page 29

Instead, our background thinking just quickly assesses the “form and shape” of things in front of us for recognition and match for something we already know, but there are times when we don’t know what something is, which triggers and alerts our more conscious brain to get involved.

A Caveman Walks into a Cooking Store The first time I saw a mandoline – not the musical instrument, but that kitchen contraption to julienne vegetables – I was in a fancy cooking accessory store. I didn’t know what a mandoline was for, what I could do with it or how it could possibly help my life in any way. There wasn’t anyone in the store available to help me, so my cavemanbrain tried to figure it out on its own. After a few seconds of trying to solve the complex riddle of “what does this weird-looking thing do?” my caveman brain simply gave up and I moved on to the next thing: a shiny new gas grill! My caveman brain knew exactly what I could do with this thing!

question the prophecy according to Jobs with the query: “Why in the world would I buy a cell phone from Steve Jobs?”

despite my intense love, admiration and loyalty to Apple – I wouldn’t be buying the new iPhone anytime soon.

Now technically, the iPhone was a “smart phone,” but based on its form and shape, it looked a lot like a glorified cell phone to me.

Besides I was kind of dumb to what a smart phone even was back then.

Or so I thought…

“If you go back through the history of business innovation, you can find these very distinct moments where an unidentified foreign object is placed into our hands, or in front of us as something to inhabit or experience.”

It took me many years and lots of cut fingers to finally see a mandoline being used on a cooking show. The celebrity chef revealed it to be one of the most valuable kitchen tools he had. In that moment of watching him slice and dice vegetables so effortlessly and so beautifully, I couldn’t help but involuntarily declare:

Ironically enough, on the day the new iPhone came out, I just happened to be in a shopping center with a new Apple Store, so I walked in. And there it was, lying naked on the table: the gloriously designed new iPhone. One of the young Apple employees with a coollooking t-shirt and lanyard walked up to me and said: “You want to try it?” I hesitated for a bit, and then said, “Ehhh…Sure! Why not?”

At this point in time, I had a fashionable Motorola Razr flip phone in my back pocket that I would often try to inconspicuously show off to others. I got that Razr phone for nearly free from my carrier (with a long-term contract). I couldn’t imagine parting with it anytime soon, particularly since the new iPhone 8GB model was a whopping $599.

I remember thinking to myself, “What idiot would pay that much for a cell phone they could get for free?” – particularly from a company without experience in cell phones.

But as soon as I placed that new iPhone in my hand and felt the edges, the profound simplicity of the navigational touch features and the iconic array of apps on the screen, my senses and brain immediately said to me in unison: Wow! I think I can do a lot with this!

Aha! I get it! Time to buy a mandoline!

Sold!

This moment, when consumers finally “get it,” is a pivotal turning point for understanding consumer behavior. But it is not only consumers that ask this basic question: “What I can do with that?”

Inventors, scientists and entrepreneurs also like to ponder and experiment with this question, but in a much more conscious and deliberate way.

There was no more explanation needed.

It was that instantaneous of a decision.

Love at First Sight I remember when I heard Steve Jobs was developing a cell phone. It was the summer of 2007 and I just didn’t get it. Since its inception, I have always been a dyed-in-thewool Apple fanatic, but even I dared

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

I read several articles about the upcoming iPhone unveiling, which included an exposition of seductively revealing photographs that showcased this supposedly leading edge product. I studied those photos closely but, just like the mandoline, my brain still couldn’t figure out what on earth I would do with it.

My life was already technologically challenging enough with devices, so I pretty much resolved myself to the idea that –

I bought the new iPhone on the spot.

Although I was now $599 poorer, I was filthy rich with excitement, anticipation and newfound pride for what I could do with this new, never-seen-before object.

From Painters Van to Family Transportation Solution If you go back through the history of business innovation, you can find these very distinct moments where an unidentified foreign object is placed into our hands, or in front of us as something to inhabit Continued on page 32 ▶

THANK YOU

l e y o D a r d n Ke VICE PRESIDENT OF MERCHANDISING FOR RALPHS GROCERY COMPANY

FOR YOUR SERVICE AS THE 2018–2019 CHAIR OF THE CGA BOARD OF DIRECTORS

From your friends at

The Predictable Forms and Shapes of the Retail World Most of us know what a convenience store, gas station, drugstore, coffee shop and grocery store look like simply by looking at the form and shape of the buildings.

These standard building typologies represent a very predictable form and shape in our world and therefore our conscious brain doesn’t need to pay too much attention to them as we go about our day.

When we see a building that looks like a gas station/convenience store on the corner of an intersection, we don’t have to think too much about what we can do there.

Gelson’s (Manhattan Beach, California) In-store wine/tapas/seafood bar Photographer: Lawrence Anderson

“But what if a new wave of outside players from the tech world have a better idea for how to get this weekly chore done faster, quicker, easier, cheaper and more conveniently than customers can do now at the traditional grocery store?” ◀ Continued from page 30

or experience. These moments have the potential to open our minds up to a variety of new, previously unimaginable possibilities.

Such was the case for Plymouth Voyager.

Back in the early 1980s, Lee Iacocca, the former chairman and CEO of Chrysler, got us to rethink what we could do with the existing form and shape of the van by creating what he called a “mini-van.”

Prior to Iacocca’s introduction of the minivan, the only people that had vans were construction workers, painters and a few hippies that converted their utility vans, at great expense, into shag carpeted mobile bachelor pads. But my mom wouldn’t be caught dead riding around in a “painter’s van” or a “bachelor pad van,” particularly with her innocent kids in tow.

The mere prospect that my mom would buy, much less drive a minivan around the neighborhood was totally unimaginable at the time, which may be why Henry Ford II laughed at the idea and dismissed Iacocca’s 32 | CAL I FOR N I A G R OC E R

first initial sketches of the minivan concept while he was at Ford. So too did the focus groups.

Iacocca was eventually fired from Ford for other reasons and moved on to head up Chrysler (Plymouth and Dodge). He was allowed to take the minivan idea and designs with him. But like Steve Jobs, Lee Iacocca had a new vision for what we could do with the painter’s van that few people got. He saw it as the new station wagon, the new family-oriented transportation solution and the next big wave of the future in automobile innovation.

And he was right.

After some major adjustments and the addition of wood side paneling, families immediately embraced this new form and shape, and the minivan went on to become one of the biggest selling phenomenons in automotive history. And once moms everywhere saw it in person, they immediately knew what they could do with that thing.

Our brains have been conditioned to know that we can fill up our car with gas, and run in to grab a soda, beer and/or a pack of smokes. However, we typically don’t expect to get handmade sushi, fresh organic vegetables or the best cuts of meat inside a gas station/convenience store, even though consumers would like to find these kinds of products in a small, format store. That idea is incongruous to what we think gas stations/ convenience stores can do for us.

This fundamental assumption by consumers is part of the reason why gas station/ convenience stores have such a hard time moving beyond just selling gas, sodas, beer and cigarettes. And this inability to shift the consumer’s mind to other product categories has executives at convenience stores nervous.

Why? Because many in the industry believe these top selling items are all under threat by social activists, concerned parents and the government, and they might not be around as much in the future.

Not surprisingly, consumers also have very fixed and established assumptions about what a grocery store looks like and what we can do there. This is because the grocery industry has conditioned consumers for the last 50 years to think of the grocery store as a place to pick up products to restock their shelves.

Continued on page 34 ▶

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.

CAL I FO RNIA GRO CER | 33

◀ Continued from page 32

For the most part, the industry has not focused on trying to get consumers to hang out in the store in a leisurely way, but to instead just help them get this weekly chore done quickly, easily and affordably. This made sense at the time because where else were consumers going to get this job done?

All grocery stores had to do was worry about beating the competitor down the road.

stores don’t capitalize more on the success of the form and shape of restaurants and bars.

If there is anything distinctive about our current consumer era, it is our love for and preoccupation with food, our endless need to photograph our meals, our habit of watching cooking shows and our intense curiosity to know where our food comes from, who made it and what techniques they used.

Instead of trying to get customers in and out of the store as quickly, cheaply and efficiently as possible, we should be doing the opposite: creating stores customers want to hang out in on a regular basis…just like good restaurants and bars do everyday! This is not a random idea but where we see a large portion of consumers heading in the future.

But what if a new wave of outside players from the tech world have a better idea for how to get this weekly chore done faster, quicker, easier, cheaper and more conveniently than customers can do now at the traditional grocery store?

Or what if the big retail giants can figure out how to sell groceries cheaper with robots, cashier-less checkouts, wired up carts, free online delivery, etc? Well, these are the innovative ideas that the Silicon Valley techdisrupters and retail giants are steadfastly working on as we speak.

Now Is the Time to Evolve the Meaning of Your Store I’ve been working in the grocery industry for almost 30 years and we have gotten a lot of mileage out of the traditional grocery store format. But there comes a point in every industry where an initially brilliant idea reaches its upper limit of efficacy. This eventually happened to the game-changing Plymouth minivan, and the Razr cell phone.

And it will someday happen to the iPhone.

The simple rule of business is that no great idea or market lasts forever. The key for consumer-based companies is to not hold on so rigidly to an existing form and shape forever, but to instead try to lift their existing concepts up to the next level of consumer relevancy or create an entirely new platform.

Razr had this opportunity, as did Blackberry, but they stuck with the existing form and shape at their peril, which allowed a complete outsider and novice like Steve Jobs to take that next innovative step for them.

While there are many areas of the traditional grocery store format and chassis that need to be totally re-imagined, one area I am particularly interested in is why grocery

Save Mart (Modesto, California) In-store fast casual restaurant “The Tipping Point” Photographer: Shook Kelley

“Instead of trying to get customers in and out of the store as quickly, cheaply and efficiently as possible, we should be doing the opposite: creating stores customers want to hang out in on a regular basis…”

Our society’s intense interest in and focus on food is unlike anything we have seen in past generations, but grocery stores have not fully capitalized on this massive social phenomenon and cultural movement. Even though grocery stores are supposed to be in the business of food, we have let our fixation with the commoditization of food by the retail giants and tech-disrupters consume our attention and distract us from tapping into the emotional, social and cultural side of food.

Millennials and Food As America’s largest population, millennials are entering their earning prime, with an estimated $1.3 trillion in annual consumer spending. Over the last decade or so, millennials have been the driving force to take premium food to the mainstream. For them, premium food is the minimum standard.

Who do these millennials look to to satisfy this taste for the high life? Restaurants and bars…but sadly, not grocery stores.

Continued on page 36 ▶

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Thank you Kendra Doyel 2019 Chair, CGA Board of Directors

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◀ Continued from page 34

According to the U.S. Department of Agriculture, Americans spent more than half of their food budget – a staggering 54 percent – “eating out.” What this means is that for the first time in history, Americans spent more money at restaurants than buying actual groceries. What we are witnessing now is a major shift in the way Americans buy and eat food; and this trend is going to have a major impact on the value and relevancy of the traditional grocery store format.

Simply put, our patterns of behavior for buying food are changing, but grocery stores haven’t changed with it.

of food from restaurants but spend half their time eating it at home or work. (The other half is at the actual restaurant venues.)

For millennials, eating in represents a part of the “good life” because they would much rather binge watch a series on Netflix or surf Instagram in their jogging pants than have to dress up for a formal dinner at a restaurant.

While you would think grocery stores are in the prime position to benefit from this trend of eating in – with the fancy deli departments and large prepared food sections – millennial consumers aren’t buying it.

How can grocery stores capitalize on these emerging trends in food? By having key parts of your grocery store look more like a good restaurant and bar.

By learning how to dress, talk, act and send out the right food quality signals, just like a good restaurant and bar does.

By not thinking about food as commodity, convenience and efficiency, but instead as experience and expression of life.

By thinking about food as fashion, as culture and as social occasion. By thinking about food as discovery, learning and as a shareable moment to brag about.

I know this strategy works, because we have already been implementing this strategy in almost all of the new prototype stores we designed and built over the last six years for grocery store chains like Gelson’s Markets, Save Mart Supermarkets, Harvest Market, Freson Bros., and many others.

And what we have learned during our experiments of bringing in the form and shape of restaurants and bars into the grocery store arena is that once we get customers on the lot and in the store to participate in a more restaurant-esque experience, they tend to shop more, spend more, become less price-focused and more loyal and visit us much more frequently than they did in the past.

Freson Bros (Fort Saskatchewan, Alberta, Canada) In-store dining area & bar counter Photographer: Christophe Benard

“How can grocery stores capitalize on these emerging trends in food? By having key parts of your grocery store look more like a good restaurant and bar. ” But hang with me here for a moment, because understanding this millennial food trend can get complicated.

The other big factor to note about millennials is their propensity to order food in versus eating out. More than half of that restaurant spending budget listed above is projected to be eaten off premise. This means millennials are buying a substantial amount

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They instead prefer the credibility, authority and story that good restaurants and bars provide. Or in other words, they need the form and shape of restaurants and bars to tell them where the food comes from and what it’s about. They also want the distinctive cues and triggers and robust food philosophy that good restaurants and bars provide.

This type of consumer behavior is exciting because it allows us to shift and evolve the meaning of the grocery store from commodity, convenience and efficiency to the store as a place to visit, socialize in and hang out in regularly.

And this, we believe, is the best way for conventional grocery stores to sidestep the impending battlegrounds of the retail giants and tech-disrupters, while at the same time tapping into an emerging market opportunity that is more connected to how younger generations will buy and eat food in the near future. ■

5 Things CEOs Need to Know About Application Security

by Greg Reber and Stephen Redmond, CPA, Moss Adams

As a grocer, cybersecurity may not seem like a critical issue, but it’s time for the industry to rethink this position. This is especially true as IT applications involving point-of-sales systems and inventory management become the primary target for system compromises—a trend that’s expected to continue increasing.

Here are five factors CEOs should know as they assess application security.

Vulnerabilities Are Widespread

Grocers heavily rely on point-of-sale and inventorymanagement systems. This can introduce vulnerabilities because cyberthreats often take the form of system ransomware or hacking, such as customer-data identification theft, food safety application hacking, and refrigeration monitoring system infiltration.

As technology continues to get more sophisticated, hacking techniques are also becoming more complex. Most vulnerabilities involve areas where users enter or receive data, such as login screens, portals, pages with input forms, and display screens.

Understanding your system’s vulnerabilities can help you prevent attacks.

Training Is Key

Software vulnerabilities are constantly changing, and less than 1% of software developers worldwide are trained in secure coding principles. This means companies must provide continuous training in defensive coding principles and emerging threats.

At a minimum, programs should include an industrystandard top-ten list of vulnerabilities against which personnel should be trained to guard.

Automated Scanning Tools Miss the Mark

Static analysis scanners that analyze source code aren’t always accurate—only finding about 45% of vulnerability types—and they often include high numbers of false positive findings. To increase effectiveness, all results should be examined by an experienced software security engineer.

Don’t Forget Vendor Vulnerabilities

It’s important for grocers to understand their vendors’ vulnerabilities to cyberthreats because grocers are the link between vendors and the end customer. If cyberthreats impacting a vendor’s products also impact food safety, the grocer will face negative publicity and potential legal liability.

Grocers rely on their vendors; if a vendor doesn’t provide timely vulnerability notifications, a grocery business won’t be able to assess an issue’s potential impact or prioritize a response—increasing the company’s risk.

The Sooner You Review, The Better

From defining requirements to deployment, every step of the software development cycle has the potential to create security issues. Incorporating security into your process from the beginning can help reduce costs and damage control at the end of the development cycle.

It should be the whole team’s responsibility to deploy secure applications. Shifting the culture to prioritize safety can help companies meet that goal.

WE’RE HERE TO HELP

For more information about reviewing application security and developing protections, contact a cybersecurity professional.

Greg Reber, partner, specializes in IT security consulting.

He can be reached at greg.reber@mossadams.com.

Stephen Redmond, partner, specializes in public accounting. He can be reached at stephen.redmond@ mossadams.com.

M O S S A DA M S .C O M Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.

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PHIL MILLER

C&S Wholesale Grocers

KENDRA DOYEL

Ralphs Grocery Company

CONGRATULATING PHIL MILLER & KENDRA DOYEL as 2020 Incoming and 2019 Outgoing Chairs of the

CALIFORNIA GROCERS ASSOCIATION

Thank you for your exceptional leadership!

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WELCOME

PHIL MILLER

as the 2019 – 2020 CGA Chair of the Board

THANK YOU

KENDRA DOYEL for your dedication & service this past year

CAL I FO RNIA GRO CER | 39

e i r e p x E e h t t u o b a l l a s

It’

After decades in and around the food business, Phil Miller has come to one indisputable conclusion – the customer experience is much more important than having the most unique products at the best price.

“In the past, retailers and wholesalers could steer people towards items they wanted them to purchase,” said Miller, Vice President of Sales, Western Region for C&S Wholesale Grocers and incoming Chair of the CGA Board of Directors.

“With technology where it is, new emerging markets for home delivery and easy access to products from all over the world, the industry has to be more creative and diverse in its product offerings and change them more frequently to stay ahead of the consumer demand curve,” Miller said.

“To me, that’s the biggest dynamic impacting the business.”

Miller, who grew up around the business, has had a bird’s eye view of the changes the industry has gone through.

His maternal grandfather was a butcher by trade who managed an independent grocery store in Pine Bluff, Ark. His paternal grandfather was a farmer who owned and operated a local market store on his property in Cotton Plant, Ark., a small rural town about halfway between Memphis, Tenn., and Little Rock, Ark. However, Miller’s journey didn’t start in the food industry.

His father was a physician and partner in the state’s first integrated medical practice, and his mother was an educator and passionate pioneer in community service for decades in the central Arkansas community.

“My family placed a high priority on education and encouraged me to gain exposure in a variety of areas but to ultimately follow my passion, dedication and God-given talents of working with people, stating, no matter what you decide to do, be the best at whatever it is,” he said.

Continued on page 42 ▶

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◀ Continued from page 40

After exploring the thought of studying to become a dentist, he landed on the discipline of finance. He graduated from Kennesaw State University in Georgia with a degree in finance and spent several years working at United Parcel Service as well as in the financial industry with a local Atlanta investment firm.

“No matter what you decide to do, be the best at whatever it is.”

He got into food retail with the national retail yogurt chain TCBY and relocated to New York, where he eventually became District Manager of Franchise Operations for the Northeast Region.

Phil and Carletta Miller.

In 1997, Miller joined the Refreshment Services Division of Aramark as General Manager in Allentown, Pa., quickly being promoted to similar roles with increasing responsibility in Boston in 1998 and back to New York City in 2000 before relocating to the West Coast in 2007 as District Manager of the Western Region.

In 2009, he accepted his current role with C&S Wholesale Grocers, reconnecting him to his family industry roots growing up in Arkansas.

Assessing the grocery industry today, and California in particular, Miller noted that it’s easy to pinpoint competition, including e-commerce as the driving force or disrupter in the business.

“But,” he adds, “To me, it’s all about having a unique brand and competing for customer loyalty with customization, convenience, and providing your customer with a memorable shopping experience.”

According to Miller, these are the portals that change constantly depending on your customer base.

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“Everyone these days has to remain nimble enough to make changes that attract new customers as well as keep current customers loyal and interested in the shopping experience you offer,” he shared.

“Our business environment is changing so rapidly that we have to adapt constantly,” he added. “Sometimes, we can get used to doing things a certain way, but there’s always the need for creativity not only in how we take care of customers but also our employees.”

Miller says that with today’s record-low unemployment rate, hiring and retaining a talented workforce is one of the industry’s biggest challenges.

“I think the industry as a whole is experiencing a shortfall in attracting motivated talent willing and ready to work certain positions, especially on the warehouse and transportation side,” he said, adding that the solution won’t be an easy one.

Continued on page 44 ▶

Congratulations to

Phil Miller

VP Sales, West Region – C&S Wholesale Grocers

C&S Wholesale Grocers Family of Companies

Proudly Congratulates

Phil Miller, VP Sales, West Region 2019-2020 Chair of the California Grocers Association Board of Directors

CAL I FO RNIA GRO CER | 43

◀ Continued from page 42

“It has to revolve around training and development,” he recommends. “We have to focus on ways to attract, develop and train young people in a way that offers them a personalized career path that will allow them to eventually realize a vision of how to work hard, navigate and eventually move up in our organizations.”

Looking ahead, Miller’s focus remains on people in the industry – especially independent retail owners who may be looking at retirement or getting out of the business outright.

“You can no longer assume that populations will remain the same forever. Grocers must make constant use of data analytics to understand the large and small changes in their target market area and make changes to their product portfolios and service options to stay viable. If not, many will one day find themselves behind the eight ball,” said Miller, noting that demographic changes that once took place over a five to 10-year period can now occur at a much faster pace.

This plays into the e-commerce piece of the business.

“We service several chains throughout our C&S network, but the heart and soul of our customer base are our independents, so I am always looking at issues from an independent’s perspective,” he said.

“I’m big on education and awareness, and believe we are stronger because of our association’s diversity.”

“With all the consolidation in the market, the population of aging owners is a concern. When we get down to the third or fourth generation operators, we don’t often see the same level of passion for running the business.

“This makes succession planning an essential issue for the years ahead. We have to ensure that we maintain a diverse independent grocery population that won’t disappear,” he said.

However, changing demographics must also remain a top priority for the industry, said Miller.

“Some retailers started out supplying a consumer base that might have been 80 percent Anglo and never took an inventory of the changing demographics in their marketing areas and never changed the product mix,” he shared.

Jim Amen, Super A Foods, with Phil Miller during CGA Grocers Day at Capitol.

“If I’m in rural California and the majority of my consumers are first and secondgeneration members of their respective ethnicity, it’s easy to assume there’s no interest in online shopping or grocery delivery options and therefore no urgent need to get into that business,” Miller said.

“That is a fallacy that every independent grocer has to get over,” he adds. “Look at the market for cell phones. In 2007, Apple introduced the iPhone, and now they’re up to version 11. Technology and consumer demand are moving ahead so rapidly that all retailers have to get into the game sooner rather than later.”

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Congratulations!

OYEL KENDRA D hair GA C

Outgoing C

PHIL MILLER

Incoming CGA Chair

◀ Continued from page 44

“His ability to communicate, build relationships, coupled with his considerable knowledge, makes him the perfect chair during this very volatile and transitional period in our industry.”

This brings up the issue of keeping up with retail technology.

“I know the first thing to happen is sticker shock, and it can be difficult in some cases for retailers to see the return on investment,” Miller said. “But, I believe there’s a growing population of grocers that have the benefit of employing a younger generation who understands the value of technology from a consumer’s perspective and can have a lot of influence in helping others understand the importance and urgency of implementation of e-commerce platforms.”

The theme of this year’s CGA Strategic Conference was Minding the Gaps and provideda perfect opportunity to help advance the industry, according to Miller.

“We’ve got to find a way to bridge that generational technology gap. It is perfectly okay to cherish the past, but only to use those principles as a solid base for moving forward and holding hands with the future,” he said.

Miller believes technology will be a priority this year and wants to take the learnings from the conference to develop a platform for CGA moving into 2020 – one that connects the dots and continues to bridge the gap for retailers.

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“We want to give them (retailers) the tools to enhance their ability to serve their shoppers for years to come,” he added.

Turning to CGA, Miller said the association’s staff is “an amazing team who are unique in terms of their passion for and knowledge of the industry.”

This is the strength that helps the association build productive relationships throughout California, whether it’s at the statehouse in Sacramento, or working with single store operators throughout the state, Miller said, adding, “They do an incredible job of staying connected and understanding what the pain points are for all retailers and advocating on their behalf.”

“CGA is all about encouraging innovation, not just from a technology perspective, but altering, reshaping, or completely redesigning ways to educate members about the issues affecting their business,” he said.

At the same time, all members need to be actively involved in the association, according to Miller.

“Part of our challenge is showing the independent operators the value and return on investment for being part of CGA,” he said. “That doesn’t fall completely on CGA’s leadership but also on companies like C&S that work with retailers every day.”

CGA President and CEO Ron Fong has tremendous praise for his incoming Chair.

“I have known Phil for some time, and his enthusiasm and love of this industry are evident in everything he does,” Fong said. “His ability to communicate, build relationships, coupled with his considerable knowledge, makes him the perfect chair during this very volatile and transitional period in our industry. I look forward to working closely with him this coming year.”

The C&S executive will take the reins of CGA in early December and serve for one year. During that time, Miller will help guide the association’s Board of Directors, and participate in numerous leadership opportunities, including meeting with local, state, and national elected officials, as well as presenting at various CGA and other industry-related events.

Asked about his personal agenda for the coming year, Miller replied: “I’m big on education and awareness, and believe we are stronger because of our association’s diversity.”

“I want to continue building an association that is respected not only in California but across the country,” he said. “I think we’re looking at a window of opportunity to do some special things in the coming year.” ■

Cо a la оs

Thank Y

Phil Miller C&S Wholesale Grocers Incoming CGA Chair

Kendra Doyel Ralphs Grocery Company Outgoing CGA Chair

1020 N. Lake Street Burbank, CA. 91502 818.817.6712 www.retailsolutionsus.com

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CGA_Doyel_Miller_11_2019.indd 1

12/4/19 4:49 PM

Thank You

Kendra Doyel

Kendra Doyel

for her leadership in 2019 &

Phil Miller

as the 2020 CGA Chairman

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Thank you, Mission Foods would like to recognize Kendra Doyel for her service as Chair of the CGA’s Board of Directors

Congratulations KENDRA DOYEL

Thank you for your year of service as Chair of the CGA Board of Directors.

A MOMENT IN TIME

Each CGA Strategic Conference marks a moment in time for California's grocery industry. This year's conference was no different.

BY NATE ROSE Director, Digital Communications, California Grocers Association

The CGA Strategic Conference is no easy thing to produce. Each year, hundreds of hours are spent by the Association and member partners, who make up the Strategic Conference Planning Committee, coordinating its details. The process begins with a brainstorming meeting that takes the temperature of the industry.

From there, a conference theme is born, sponsors are secured, and business meetings are scheduled.

These details are not shared with the intent of boring you with process details. Instead, the aim is to highlight the fact that each year’s conference marks a particular moment in time for California’s grocery community, and the community at large. This year, the conference committee landed on the theme of “Minding the Gaps.”

Whether you’re scanning headlines or just overhearing bits of conversation, it’s clear the grocery industry is in the midst of transition.

The entire food distribution system is running fast and recreating their businesses day-by-day.

Like any period of disorder, there are divided opinions, innovative ideas from sometimes unlikely places, and plenty of opportunity in between. Still, there’s no easy way to point out the things we may be missing while mid-stride.

“The ‘Minding the Gaps’ theme felt right for this year’s show because it reflects where the industry stands today,” explained the CGA Strategic Conference Planning Committee chair, Phil Miller of C&S Wholesale Grocers.

“The legacy grocery playbook is being reinvented on the fly.”

CGA President & CEO Ron Fong

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“I shouldn’t read your values; I should experience them.”

– Ron Tite

It was around this idea the industry gathered in Palm Springs, Calif. in late September for three days of educational programming, business meetings and networking. More than 800 retailers, suppliers and wholesalers heard from new voices, new brands, and the perspective of new technologies. For the uninitiated, CGA also pre-scheduled more than 1,000 meetings between supplier vendors and wholesalers and retailers.

“Despite how competitive the industry is, I think it’s fantastic we have this venue where we come together and plot our paths forward,” shared California Grocers Association President and CEO Ron Fong.

NEW FEATURES Two hallmarks of the 21st century’s impact on retail are technological innovation and the emerging brands it helps blossom. This year’s conference featured CGA’s firstever partnership with the Global Market Development Center (GMDC) and the Center for Advancing Retail Technology (CART) to produce a Retail Tomorrow technology pavilion. Hosting several unique

CGA Chair Kendra Doyel (L) led a panel discussion on conscious inclusion that included (L to R) Sharoni Little, USC Marshall School of Business; Justin Knighten, California Volunteers; and Subriana Pierce, Navigator Sales and Marketing.

retail technology startups, the pavilion offered private tours and in-depth product demos to conference attendees.

“This was our first attempt to infuse a future-looking retail experience into the conference, and it was great to hear all of the positive feedback,” said Doug Scholz, CGA Senior Vice President, Marketing and Business Development.

The way customers shop has not only been transformed by the types of hardware and software displayed in the Retail Tomorrow pavilion but also by the emerging brands technology empowers. In a retail environment where consumers focus on brand experience, upstart companies often offer shoppers a unique perspective.

Emerging brands are also essential to the in-store grocery experience as a means of differentiation and a determining factor in retail brand affinity. The fact that new,

direct-to-consumer brands are seeking out new channels like traditional brick-andmortar as their businesses mature only increases the growth opportunity for new types of retail partnerships.

“The Emerging Brands Marketplace was a pleasant surprise. As a retail buyer, you expect yourself to have a grasp of what’s out there. Yet, here were all these interesting brands I didn’t know about,” said Tim Murphy, Costco Wholesale. “I simply would have missed out on these types of opportunities if not for meeting these new brands and their founders.”

Continued on page 52 ▶

“Disruption is a very simple premise: it’s change without time to resist it.”

– Scott Stratten

◀ Continued from page 51

“When we engage with one another, we have to look at each other first and foremost from a human and positive perspective.”

– Sharoni Little

Jim Amen (center) and Dorie Amen (left), Super A Foods, meet with representatives from Reyes Coca-Cola Bottling, LLC.

(L to R) Greg McNiff, Ray Bridges, David Higginbotham, Stater Bros. Markets.

ON THE EDGE OF A NEW DECADE The 2010s were shaped by the disruptive forces which grew out of the Great Recession.

By 2019, this change element appears to either be diminished or to be such a feature of life that it is now commonplace. Digital marketing is maturing. Incumbents have adopted the mindset of the upstarts.

It seems likely the 2020s will be shaped by something else entirely.

Opening Experience speaker Scott Stratten’s presentation confirmed this sentiment.

Titled “The Age of Disruption: Everything has Changed and Nothing is Different,” Stratten pointed towards the cyclical nature of generational commentary and the widespread recency bias in how we evaluate the times we live in. His contention: The attention paid to all this

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“newness” shouldn’t stop with technology, but extend down to the people companies employ.

“Disruption is a very simple premise: it’s change without time to resist it,” Stratten told attendees. “That’s why there is a difference this time, with millennials coming in and the next groups…and millennials are a generation that has grown up in disruption, which makes them an asset.”

This year’s conference also featured the Retail Tomorrow Experience showcasing emerging grocery technology.

The following day, keynote Ron Tite presented his unique take on today’s retail economy and what it will take for grocers to stand out in a noisy world.

Illuminators Headlite Tracy Lape, Pete and Gerry’s Organic Eggs

Illuminators Spotlite Joe Perez, RMG-Organic Waste & Recycling Solutions, with CGA 1st Vice Chair Hee-Sook Nelson, Gelson's Markets.

Sunday’s Opening Reception helped kick-off this year’s conference.

“I shouldn’t read your values; I should experience them,” he explained.

Companies should think, do and say, according to Tite, CEO and founder of a leading advertising agency called Church+State. The online customer experience should mirror the in-person experience, driving tangible success through the type of business fundamentals that do not change, no matter the medium or channel.

Tuesday’s Keynote Luncheon featured Chip Conley and an interview hosted by CGA Chair Kendra Doyel, Ralphs Grocery Company

LOOKING AHEAD Pew Research reports the millennial generation will soon become the largest demographic in the United States, surpassing baby boomers. Right behind the millennials is Gen Z, the most diverse adult generation yet. This population trend means the workplace is due to dramatically change in the coming decades. Baby boomers are transitioning into their golden years while younger generations take the helm, bringing with them a new set of workplace expectations. The result is friction.

“Power is moving to younger people faster than ever before,” said Tuesday’s Luncheon Keynote and Airbnb Advisor Chip Conley.

“The more technologically-oriented the industry, the faster the power is moving.”

While this power transition can cause older employees to resent their younger, moretechnologically adept counterparts, the up-and-coming workforce seeks mentorship and guidance from the more emotionallyintelligent baby boomer generation.

Ultimately, a jumbled-together workplace presents opportunities to leverage diverse thinking and life experience.

Continued on page 54 ▶

“The conference changed the way I’ll evaluate my career, working with younger team members, and my children.”

– Kendra Doyel

New this year was the Emerging Brands Marketplace that allowed start-up companies to meet with grocery retailer executives.

The Premium Suite Holder sponsorship featured 40-minute retailer meetings.

CAL I FO RNIA GRO CER | 53

For over 90 years, The Illuminators has been an integral part of the conference, providing meals, entertainment and raising the level of camaraderie between grocery retailers and suppliers.

Attendees also heard three disruptive voices during Tuesday’s Brain Food session. Topics presented in the popular TED-style format included robotics and automation, direct-toconsumer digital brands, micro omnichannel partnerships and societal movements surrounding sustainability.

◀ Continued from page 53

“When we engage with one another, we have to look at each other first and foremost from a human and positive perspective,” shared Dr. Sharoni Little, who teaches at the USC Marshall School of Business and participated in a panel discussion on conscious inclusion moderated by CGA Chair, Kendra Doyel, Ralphs Grocery Co. “Implicit bias disrupts that ability, so we have to reframe the way we think and acknowledge the barriers we bring to the workplace and relationships.”

Beyond mentorship and self-evaluation, fellow panelist Justin Knighten, Director of Cal Volunteers for Gov. Gavin Newsom, recommends companies establish new talent pipelines by partnering with organizations like Americorps. Rounding out the panel was Subriana Pierce, Managing Partner, Navigator Sales and Marketing.

In addition to the conference’s general educational offering, this year’s annual industry gathering also featured targeted programming for independent retailers and enterprise risk protection directors.

“Each year, I come home from Palm Springs with a notebook full of ideas for my team,” reflected Doyel. “This year, maybe, even more so. The conference changed the way I’ll evaluate my career, working with younger team members, and my children.”

THANK YOU SPONSORS, ILLUMINATORS

And of course, CGA wishes to thank its supplier partner, The Illuminators, for once again providing scrumptious breakfasts and lunches. For over 90 years, The Illuminators has been an integral part of the conference, providing meals, entertainment and raising the level of camaraderie between grocery retailers and suppliers.

“On behalf of CGA, I wish to thank this year’s Headlite Tracy Lape, Pete and Gerry’s Organic Eggs, and all the Illuminators attending this year for their continued support of the Conference,” said Fong.

Next year, we’ll kick off the new millennium’s own “Roaring Twenties” in Palm Springs from September 27-29.

We’ll mark a new moment in time, together, and begin a new decade. ■

The Strategic Conference’s continued success is credited in large part to the tremendous support of its sponsoring companies.

“We are deeply indebted to the many sponsors that make this conference possible,” said CGA’s Fong. “Their support allows the conference team to explore new ways

One of the CGA Strategic Conference’s trademark features is its pre-scheduled business meetings.

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of bringing greater value, including our two new additions – the Emerging Brands Marketplace and Retail Tomorrow Pavilion.”

More 2019 CGA Strategic Conference photos can be found at www.cagrocers.com

2019 CGA STRATEGIC C ON FE REN C E S P ON S O R S CGA wishes to recognize and thank the many sponsors that helped to make this year’s conference a tremendous success.

Premium Suite Holders

Keynote Luncheon

Loacker USA

Anheuser-Busch InBev

California Table Grape Commission

Mettler Packaging LLC

Bimbo Bakeries USA C&S Wholesale Grocers CA GROWN

Networking Lounge Tyson Foods, Inc.

Chobani

Registration Sponsor

Coca-Cola North America/ Reyes Coca-Cola Bottling LLC

Post Consumer Brands

Hershey Company Jel Sert Company Jelly Belly Candy Company Kellogg Company Kimberly-Clark Corporation

NuCal Foods/Norco Ranch OK Produce Papyrus Recycled Greetings Westlake Produce Company

Director Level

Enterprise Risk Protection Summit Sponsors

Alto US

Front Line Safety

A.T.A.C., Inc.

Pinpoint Software, Inc.

Baloian Farms

RMS, Inc.

Bemis Retail Solutions

AppCard

BRdata Software Solutions

Kraft Heinz Company

Retail Tomorrow Experience

MillerCoors

Accelerate

Nestle Purina PetCare

Aperion

Nestle Waters North America

Eversight

PepsiCo

Community Reinvestment Associates, LLC

Fit For Bucks Corporation

Procter & Gamble

Constellation Brands, Beer Division

Smartsense by Digi

Crown Poly. Inc.

Whiteboard Session Sponsor

ECOS by Earth Friendly Products

RMS, Inc. TRUNO Retail Technology Solutions

Bunzl California, LLC Certified Federal Credit Union

F. Gavina & Sons, Inc.

Tyson Foods, Inc.

RMS, Inc.

UNFI/SUPERVALU

President Level

Vilore Foods Company, Inc.

HB Spirits

Alkaline88, LLC

Itab/Nordic Light America

Executive Level

Amplify Snacks

Lone Peak Labeling Systems

California Lottery

Lotus Trolley Bag

Cascades Paper

MCKD Holdings LLC (Muscle MX)

The Coca-Cola Company

Old Trapper

Command Packaging

PBI Market Equipment, Inc.

Direct Energy Business

Pivot3

Ferrero USA

Regional First Aid

Flowers Foods

Retail Data Systems

Freshop, Inc.

Re:THINK Ice Cream

Frito-Lay Inc.

Roplast Industries Inc.

GateKeeper Systems, LLC

Rose Arce Farms

Harris Ranch Beef Company

Securitas Security Services USA, Inc.

Houweling’s Group

Opening Reception

Sioux Honey Association

Idahoan Foods

E & J Gallo Winery

SMC ZeroWaste

Inmar

Mark Anthony Brands

Tony Chachere Creole Foods

Itasca Retail Information Systems

Unified Protective Services, Inc.

Kashi Company

Worldpay from FIS

KeHE Distributors, LLC

Zenith Insurance Company

American Licorice Company Campbell Soup Company Chosen Foods Classic Wines of California Clinton Electronics Clorox Company Daisy Intelligence Danone North America Golden West Foods Mondelēz International Unilever

After Hours Social MillerCoors

FMS Solutions, Inc.

Kushco Holdings CAL I FO RNIA GRO CER | 55

iStock

COMPLYING WITH AB 5

BY KAREN TYNAN

After a great CGA Strategic Conference in Palm Springs, many attendees returned to their offices with a long list of action items in hand. One item should have priority: compliance with Assembly Bill 5, California’s new independent contractor law.

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

During one of the conference’s early Monday morning Whiteboard Sessions facilitated by Karen Tynan, an attorney with Ogletree, Deakins, Nash, Smoak & Steward, P.C., attendees had an energetic and exhaustive discussion on what this new law means to member businesses.

Assembly Bill 5 dramatically changes the “independent contractor versus employee” tests for every business in California.

Now, in most situations, we have a three part test to determine if a worker is an independent contractor or an employee, the “ABC” Test.

Businesses have the burden of proving all three elements of this test:

A

B

C

The person is free from the control and direction of the hiring entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

The person performs work that is outside the usual course of the hiring entity’s business.

The person is customarily engaged in an independently established trade, occupation, or business of the same nature as that involved in the work performed.

Experts agree the most difficult section of the ABC test to satisfy is the “B” element – the person must be providing service or work that is outside the course of the hiring company’s business. If a retail store hires a plumber, which certainly falls outside any imaginable parameters of a retail business, that plumber is obviously an independent contractor.

However, if a store hires a worker to demonstrate or provide samples of pumpkin spice seasoning, isn’t marketing seasoning, albeit one that creates both negative and

positive responses, what a retail business is about? In that case, the pumpkin spice worker is an employee.

The Legislature did carve out some exceptions for lofty professions like attorneys and doctors, insurance salespersons, architects, and accountants.

But the Whiteboard Session didn’t find those exceptions helpful to the grocery business. Instead, there is a category that does not use the ABC test, and that’s the “business to business” category with its own test.

For retailers, B2B contracting will use both historical and new factors to determine if the B2B relationship is one of “independent contractor” or “employee.” These new factors, A through K, if met, will allow the analysis of the relationship to fall back to the traditional tests which were used in California.

A The business service provider is free

from the control and direction of the contracting business entity in connection with the performance of the work, both under the contract for the performance of the work and in fact.

B The business service provider is

providing services directly to the contracting business rather than to customers of the contracting business.

C The contract with the business service provider is in writing.

D If the work is performed in a jurisdiction

that requires the business service provider to have a business license or business tax registration, the business service provider has the required business license or business tax registration.

E The business service provider maintains a business location that is separate from the business or work location of the contracting business.

F

The business service provider is customarily engaged in an independently established business of the same nature as that involved in the work performed.

G The business service provider actually

contracts with other businesses to provide the same or similar services and maintains a clientele without restrictions from the hiring entity.

H The business service provider

advertises and holds itself out to the public as available to provide the same or similar services.

I

The business service provider provides its own tools, vehicles, and equipment to perform the services.

J

The business service provider can negotiate its own rates.

K Consistent with the nature of the work,

the business service provider can set its own hours and location of work.

The Whiteboard Session revealed concerns around inventory services, concessionaire businesses, janitorial businesses, and demo companies. Solutions we discussed included: tightening contract language based on these new tests, ensuring that individual store locations are not providing tools or equipment to companies like janitorial establishments or concessionaires, requiring proof of a business license and insurance, and documenting store supervisor directions that focus on the end-result of the work and not micro-managing the contractor doing the work at a store.

As the Whiteboard Session closed, many agreed that the first step to making the above identified changes is a thorough review and assessment of every contractor relationship to ensure compliance and reduce risk and liabilities under AB5’s tests.

Take that action item, and get it done before Jan. 1, 2020. ■ CAL I FO RNIA GRO CER | 57

Congratulations!

Kendra Doyel on your year as Chair of the CGA Board of Directors.

Congratulations Kenda Doyel!

Relax responsibly ®.

Beers Imported by Crown Imports, Chicago, IL

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

Zero sugar. Flavor for all. ©2020 Talking Rain Beverage Company, Inc. • SPARKLING ICE® is a registered trademark of Talking Rain. 2019113920

CAL I FO RNIA GRO CER | 59

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

1 5 MINUTES WITH…

Miyoko Schinner C H EF, AU T H OR, ACTIV IS T, CEO O F M IYO KO ’S

The list of people who can lay claim to the title “revolutionary” is a short one. But a new name has been added to the roster – Miyoko Schinner, chef, best selling cookbook author, animal activist and founder and CEO of Miyoko’s, whose plant-based products and technology have gained her the additional title of “queen of vegan cheese.”

The massive changes taking place in consumer shopping and eating behaviors have placed her company at the tip of the spear in the evolution of the vegan lifestyle from the fringe of consumerism to the mainstream. She sat down with California Grocer to discuss the future of this expanding category.

California Grocer: A lot of numbers are floating around. What do you see as the market for vegan cheese in the U.S.?

Schinner: “Some estimates expect it to be a $4 billion industry by 2024. But it depends on who’s doing the survey.”

But more people are leaning towards a vegan or partially vegan lifestyle?

“Absolutely, it’s one of the fastest-growing sectors of the food industry. Overall, dairy sales have been flat or declining, but the growth rate in vegan is running 9 to 40 percent annually across the entire category depending on whether you include yogurt, ice cream and cheese. Of course, some of the more mature vegan categories like plantbased milk aren’t growing as fast as the yogurts or cheeses.”

Does it seem that consumer interest or curiosity in alternative meat products have sparked sales in the entire vegan category?

“That happened over the past five years with the advent of products like Beyond Meat and Impossible Foods.”

You seem to have created a new category?

“Before we debuted, there was no category.

It was simply called block cheese, which was about a $100,000 business at that time.

A year after we came in, it grew by the amount of our sales.”

Was that primarily online?

“We launched as an e-commerce brand in 2014. Then we started selling to Whole Foods in Northern California.

Are online sales an important part of distribution?

Not at present. We never really had anyone overseeing e-commerce. Earlier this year, we decided to offload our e-commerce to online sellers when we realized we were neglecting it. But it’s increasingly important given the trend in online grocery purchasing.

We definitely need to take it more seriously.

“It will enable us to take the pulse of customers and engage with them at all times. It can also help us in market research by testing new products with e-commerce customers.”

What happens next?

“We need to reignite that next year, and there’s a plan in our budget to have someone oversee that business.”

At this point, what’s driving the overall growth in vegan?

“There are lots of studies out there.

We recently saw an interesting presentation from one industry leader specifically about plant-based yogurt and ice cream.

The term ‘vegan’ was far more popular than ‘plant-based’ and the largest search term for ice cream.

“For the yogurt sector, non-dairy or dairyfree was only slightly ahead of the term vegan. Taste and health were key factors.

But, environment was way up there among survey respondents followed by animal welfare. This seems to be fairly consistent among different surveys.”

It seems that the move to vegan is an evolutionary process for consumers, and there’s still some hesitation?

“We don’t expect things to happen all at once. There is an uptick in the number of people going vegetarian and vegan. But by and large, it’s the flexitarians that are choosing to eat more plant-based foods to improve their health or mitigate the impact on the environment.”

Continued on page 62 ▶

CAL I FO RNIA GRO CER | 61

15 MINUTES WITH… ◀ Continued from page 61

“Today, taste is the reason some consumers are choosing vegan products. They actually think it tastes better than traditional animal alternatives.”

So growth will come from the flexitarians?

“Yes. It will be interesting to see where they go over the next five years.

The populations of generation X, Y, and Z are increasing. They are more concerned about the environment and animal welfare than either millennials or older consumers. We’ll see different purchasing patterns and behavior.”

One of the main issues with vegan is taste. Is this improving?

“Go back about 15 years and vegan cheese was a laughing stock. It was inedible – disgusting. I’ve been a vegan for 35 years and I remember how excited I was to try vegan cheese for the first time. I practically threw up.

“Today, taste is the reason some consumers are choosing vegan products. They actually think it tastes better than traditional animal alternatives.”

How do you get more consumers to try it?

“I think we have to become as mainstream as possible. Foodservice can go a long way in helping us do it. Impossible Foods and Beyond Meat did it by rolling out in foodservice and the same can be done with other categories.”

Is that your plan?

“It’s going to be one of our plays. We’re launching into foodservice with the new line we created called Future Cheese that tackles the pizza problem and the cheese that goes on top of all the vegan burgers out there.

“Every burger needs a good cheese and there hasn’t been one. The products we introduced at Expo East are the answer. The mozzarella

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

is the most amazing one out there for foodservice and has all the functionality of a true mozzarella.”

As a chef, you have a leg up in the food service business. What’s the approach to getting others to use it?

“We’ve started out introducing the premium products we currently have at high-end restaurants and wineries in Napa and Sonoma. Places like Domaine Carneros and the Girl & The Fig – respected establishments that are now offering our cheeses.”

What about the mass market?

“We need to reach the Pizza Huts of the world. That will put these products on the map. Items from Beyond Meat and Impossible are almost household names and we plan to do the same for Future Cheese.”

Are retailers getting on board?

“Consider the effort that chains like Walmart, Kroger, Gelson’s and Target are making to increase their offering of plant-based items. All major grocers are getting into it. They want to meet with companies like ours for presentations that educate their people about how these products are used. Grocers don’t do that for every product on the shelf.”

There’s still a lot of confusion among the public when it comes to vegan. Can retailers educate their customers?

“I think we all have to do a better job with that. And not just about the benefits of vegan, but getting people started with these products and using it at home more frequently.

“I see it all the time. I’ll go to some party and there’s a cheese board with not only cow cheese but also our products.

People realize there could be a vegan or two at their parties and they want to have all their bases covered.”

Can it get to a point where people don’t know the difference?

“That’s exactly it. We want them to really enjoy our double cream chive and not eat it just because it’s vegan.”

Are you expanding the Miyoko’s brand into other categories?

“We’re looking at value-added products, sweets and ice cream with a spin. One of the complaints people have about plant-based products is that they’re highly processed and don’t have clean ingredients.

“We are in the Whole Foods camp on that and as our company grows we intend to ensure that all our products are made of clean, nutritional ingredients.”

Are you considering valueadded meals?

“For example, our Future Cheese mozz works beautifully in lasagna and burritos – any heated application. We see prepared meals in grocery as a huge opportunity.”

In deli or frozen?

“I’m talking about fresh prepared meals.

Frozen is another category we could get into – especially with ice cream or frozen yogurt. We’re working on that right now.”

There’s a whole new audience out there for you?

“Exactly. Something like almond milk was not as ubiquitous in grocery stores as it is now. People are continuing to shop differently. Imagine where we’ll be 10 years from now.” ■

A DVERTISER IND EX PAGE

COMPANY

PHONE

EMAIL

WEBSITE

5, 49

Albertsons, LLC

(925) 467-3000

9

American Greetings

(216) 252-7300

23

Bristol Farms

(310) 233-4700

43

C&S Wholesale Grocers

(916) 373-4396

pmiller@cswg.com

cswg.com

38, BC

Certified Federal Credit Union

(909) 261-4065

dsimpson@certifiedfed.com

certifiedfed.com

10

Clarion UX-The NGA show

(703) 516-0700

jenna.rothermel@clarionevents.com

thengashow.com

9

Community Reinvestment Associates, LLC

(312) 881-0966

scott@crassociates-llc.com

crassociates-llc.com

58

Constellation Brands

(909) 728-7637

jim.benitez@cbrands.com

cbrands.com

59

DPI Specialty Foods

(909) 975-1019

sarah.ramirez@dpispecialtyfoods.com

www.dpispecialtyfoods.com

59

Empire Marketing Strategies

(562) 650-5110

svanhamersveld@empirefoods.com

empirefoods.com

59

Gallo Wine Company

(323) 869-6461

al.aleman@gallowineco.com

gallowineco.com

27

Gelson’s Markets

(818) 906-5709

gelsons.com

18

HUB International Limited

(858) 373-6924

hubinternational.com

48

Illuminators

(949) 304-4697

illuminators.org

35

Keurig Dr. Pepper/Peets Coffee

(661) 213-4662

brent.clayton@kdrp.com

keurigdrpepper.com

17

MillerCoors

(949) 929-5180

kyle.weinsheim@millercoors.com

millercoors.com

48

Mission Foods Co.

(805) 509-7333

37

Moss Adams

(858) 627-1463

amy.dawson@mossadams.com

mossadams.com

19

Nestle Purina PetCare

(314) 982-1000

joe.toscano@nestle.purnia.com

purina.com

25

New Hope

(203) 344-7162

samson.rutkin@clarionevents.com

expowest.com

45

North State Grocery, Inc.

(530) 889-9365

33

NuCal Foods

(209) 254-2225

58, IBC

PepsiCo

(949) 330-5804

pepsico.com

7, 24

Ralphs Grocery Company

(310) 884-9000

ralphs.com

21

Reyes Coca Cola Bottling

(213) 276-3596

kristen.risbrudt@reyesccb.com

reyesccb.com

IFC, 47

RMS, Inc.

(818) 817-6712

mdodson@retailms.com

retailsolutionsus.com

31

Southern Glazer’s Wine & Spirits

(562) 673-1182

mattthompson@sgws.com

southernglazers.com

48

Stater Bros. Markets

(855) 782-8377

58

Talking Rain Sparkling Ice

(425) 222-4900

kwaters@talkingrain.com

talkingrain.com

14–15

TruGrocer Federal Credit Union

(208) 385-5273

cdemaray@trugrocer.com

trugrocer.com

39

Young’s Market Company

(714) 573-5633

albertsons.com jill.eibling@amgreetings.com

americangreetings.com bristolfarms.com

missionmenus.com

shophqf.com skoch@nucalfoods.com

nucalfoods.com

staterbros.com

youngsmarket.com

CAL I FO RNIA GRO CER | 63

MOMMY BLOGGER

Combatting Food Insecurity is Everyone’s Business K I M B ER LY M I L L ER WR ITER , ACTR ES S

There’s no more comforting feeling than unpacking the spoils of a large grocery shop. A full fridge is a sign that my family is well taken care of.

I’m lucky, I have a working refrigerator.

I’m able-bodied and capable of shopping for my family regularly. I live in a home that’s free from vermin. And, most importantly, I have the funds to be able to afford to keep a stocked refrigerator and pantry.

But that wasn’t always the case, not when I was growing up. I had a somewhat atypical childhood (I wrote a whole book about it!) and the times in which I lived with food insecurity shaped much about the way I live my life and feed my family today.

While food insecurity may be a part of my past, according to the USDA there are currently 14.3 million Americans living with the uncertainty that they can adequately provide nutrition for themselves and their families.1 In many instances, the people struggling to put food on the table aren’t who you’d suspect.

They’re young families that make too much to qualify for food assistance, but not enough to cover the rising cost of housing, transportation, childcare and food. It’s the elderly patron who puts off shopping because of their fixed income or inability to get to the store safely or carry their groceries into their home.

iStock

1

It’s the nice middleaged woman who asks about your kids at checkout, but is living with hoarding disorder and doesn’t have the sanitary means to store

https://www.ers.usda.gov/topics/food-nutrition-assistance/food-security-in-the-us/key-statistics-graphics.aspx

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

fresh food at home. It’s the family raising kids in an urban food desert who don’t have access to healthful foods.

Feeding my family, making sure that my children have fresh fruits and vegetables, healthy sources of protein and a seemingly endless supply of milk is at the forefront of my priorities.

Every time I pack up my trunk I am thankful that my kids will never worry about the freshness of their food or if they will need to worry about running out.

Taking for granted that fresh food is available is a luxury I’m grateful I can provide them with, but I will always instill in them the knowledge that not everyone is so lucky.

As we embark on a new year I implore you to think of ways you can give back to those members of your community living with food insecurity, either by donating foods that are close to expiration to local food banks, hosting community events to help your neighbors in need, or by reaching out to one customer at a time to see how you can help.

I know that feeding people is your business, but making sure our communities are taken care of are everyone’s business. ■

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

www.cagrocers.com

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