SUPPLY CHAIN
Regulatory Issues
retailer happy? No. Is it a perfect law? Absolutely not. But we showed up to the table and made some really good progress, and now we have that open line of communication so that we can continue to move forward with regulators and legislators in a way that I think will allow us some say in what it looks like in the end.” She adds that Vermont’s bill has been deemed the most comprehensive plastics ban bill in the country. It not only bans plastic bags, but also plastic stirrers that are typically used in coffee, as well as polystyrene. Additionally, retailers and food establishments are prohibited from providing straws unless the customers ask for them. The bill also mandated a working group that has been tasked with considering the waste stream in Vermont, and how to eliminate single-use products as much as possible. Another environmental issue being floated around Vermont is a potential cap-and-trade program on petroleum, says Sigrist. “Lawmakers are questioning whether to impose additional costs on the gas used to power trucks, including the trucks that deliver food,” she notes. “There are only a few ways you can make up for that cost, and ultimately it will increase prices to the consumer. So that’s one conversation we’re having not only with petroleum distributors, but also with retailers and food distributors.” California already has a current cap-and-trade law in place, and several large grocery chains — including Safeway and Kroger — have reacted by proactively setting their own green energy goals and looking for renewable sources of energy, observes Fong. “This is forcing people to look at their own operations.”
Midwest Mandates
While Illinois hasn’t seen quite as many regulations dealing with the environment, the state is also mulling what to do about plastic bag waste — and the Springfield-based Illinois Retail Merchants Association (IRMA) has been there to represent retailers’ points of view. In Chicago, a ban on thin plastic bags was implemented in 2015, but in some ways it put more plastic into the environment, according to Tanya Triche Dawood, VP and general counsel of IRMA. “Many consumers were getting the thicker plastic bags, so it was more like a swap,” she says. In 2017, the city changed the ban to include a 7-cent fee on all checkout bags instead. “That got folks to think about whether they wanted to use less bags and bring their own bag, which is ultimately what you want them to do,” notes Dawood. Beyond environmental issues, Dawood says she’s concerned that the “constant piling on of mandates,” whether it be in the labor space, taxes or other areas, will ultimately have a negative impact on retailers’ viability. “In Chicago, retailing is extremely competitive,” she explains. “Independent grocers have made great strides at being successful in this environment, but I’m concerned about the impact from so many mandates.” In her view, that’s why trade groups are so important in political discussions. “One of the ways to start addressing this in a real way is to make sure that when lawmakers are making decisions about more regulations, and adding more costs to doing business, that they have a better understanding of how their decisions will impact individual neighborhoods. Grocery stores are critical to neighborhoods, so there should be some real consideration about how each mandate is going to impact the likelihood of whether or not you’re going to get more grocery
68
progressivegrocer.com
States Go on Summer Retreat Every year, the Food Marketing Institute (FMI) brings together retail trade associations and grocery professionals from each state to discuss legislative issues at its State Issues Retreat. “With gridlock at the federal level in Congress, state and local issues continue to grow in importance in the public policy arena — including local ordinances, state legislation and ballot initiatives,” notes Jennifer Hatcher, chief public policy officer at Arlington, Va.-based FMI. At the annual retreat, Hatcher says, attendees explore critical industry issues in depth and share ideas to prepare for the upcoming legislative sessions. “Providing our members with a forum to deep dive into emerging issues with industry experts has allowed us all to be more effective at the state and local level,” she says. “As food retailers, many aspects of the business are regulated at the state or local level, and many of those same public policy issues also have the potential to transition to the federal level.” At this year’s retreat, Tanya Triche Dawood, VP and general counsel of the Springfield-based Illinois Retail Merchants Association, received the Donald H. MacManus Award in recognition of her achievement in public and regulatory affairs. One of Dawood’s most impressive accomplishments was working to help repeal the Cook County sweetened-beverage tax.
stores in every neighborhood that wants them.” Dawood says she feels that it’s more important now than ever for grocers to get involved with their local governments and state associations. “Things happen on a local level early and often. There’s no time like the present to join together with like-minded people who are in your business and have a voice at your local city hall, the town board and the state legislature. Other communities are banding together and have a voice, and if you aren’t at the table, you’re on the table.”
Things happen on a local level early and often. There’s no time like the present to join together with likeminded people who are in your business and have a voice at your local city hall, the town board and the state legislature.” —Tanya Triche Dawood, Illinois Retail Merchants Association