May 2018 Michigan Food News

May 2018 Vol 72, Number 5

Also Inside  Deposit Law Drags Down Recycling Rate, page 3  MRA Can Help Your Business Process Credit Card Payments, page 9  Lipari Food Show Sets Records, page 13  Don’t Miss This Year’s Golf Outing, page 13  MLCC Rescinds ‘Half-Mile Rule,’ page 15  FDA Releases New Guidance on Menu Labeling Requirement Now in Effect, page 16

The annual Legislative Reception is one of the most talked about events in Lansing — with good reason! It has a reputation for having extraordinary food, beverages, and networking opportunities. This year’s event was another success. Above: SpartanNash’s Meredith Gremel, Senator Dave Hildenbrand, and Rep. Brandt Iden.

Right: MRA Board Member John Leppink, Leppink’s Food Centers, meets the Buy Nearby Guy — MRA’s mascot who travels the state reminding shoppers to buy local.

For more reception news and photos, see pages 10-11.

Michigan Retailers Association 603 S. Washington Avenue, Lansing, MI 48933

PRSRT STD U.S. POSTAGE PAID Lansing, MI Permit No. 846

‌Anytime It’s an exciting time for Koegel Meats. With our 100th anniversary behind us, we are excited to be moving forward into our next 100 years.

We do so with a vision & mission to promote the full-line of Koegel’s Fine Meat Products to your loyal customers. “Koegel’s ‌Anytimeâ€? is a strategy that reinforces the SKU velocity of our most popular items, like Viennas & Skinless Franks, while also including other Koegel's items for consumers to consider. Ring Bologna, Braunschweiger, Luncheon Meats, Bratwurst, Smoked Sausage, Chili Topping, and more, will be featured in our 201 advertising program. Our strategy will be supported by a statewide outdoor/billboard campaign, TV News, Radio, and a very aggressive social media plan.

Holidays, sunny days, birthdays, special days, any day - Koegel's Anytime! It's a plan to grow with ...together!

Talk to your Koegel's Representative about joining us in our 201 sales growth by offering more Koegel's Fine Meat Products to your loyal customers.

Koegel Meats, Inc. 3400 Bristol Road, Flint, MI 48507 810.238.3685 Koegels.com

president ’s message

James P. Hallan Publisher Lisa J. Reibsome Editor

Advertising Index Better Made Snacks ......................................... 4 Consumers Energy ......................................... 12 Grazing Fields ................................................ 16 Koegel Meats ................................................... 2 Michigan Apples ............................................ 15 Michigan Lottery ........................................... 19 Michigan Potatoes ........................................... 8 Miller Poultry ................................................. 17 Prairie Farms Dairy .......................................... 6 SpartanNash ................................................... 14 Star Truck Rentals .......................................... 18 Effective January 1, 2018, Michigan Grocers Association is officially a division of the Michigan Retailers Association

Michigan Grocers Division Board of Directors Rich Beishuizen, Country Fresh Craig Diepenhorst, H.T. Hackney Dave Duthler, AMRA Energy Jim Forsberg, Arctic Glacier Premium Ice Jim Gohsman, SpartanNash John Leppink, Leppink’s Food Centers Ken McClure, Kroger Company of Michigan Bryan Neiman, Neiman’s Family Market DJ Oleson, Oleson’s Food Stores Joe Risdon, Prairie Farms Dairy Don Symonds, Lipari Foods Thom Welch, Hollywood Markets Jim Zyrowski, Ben’s Supercenters Michigan Food News is completely recyclable.

Printed on recycled paper with soyoil-based ink.

Publisher does not assume responsibility for statements made by advertisers in business competition.

MICHIGAN FOOD NEWS © 2018 Michigan Retailers Services, Inc. All rights reserved.

Contact Information Lisa J. Reibsome, communications director 517.449.2256 MGAReibsome@comcast.net  Michigan Food News advertising  Michigan Food News all content, layout, and printing  Grocers Division public relations Grocers Division Michigan Retailers Association 603 South Washington Avenue, Lansing MI 48933 517.372.5656 or 800.366.3699 www.Retailers.com

Michigan’s Recycling Efforts Dragged Down by Unfair Deposit Law This month I turn my column over to Amy Drumm, MRA’s Vice President of Government Affairs. She recently wrote a terrific op-ed piece about recycling and the bottle deposit law that I’d like to share with you.

In April, Bridge Magazine wrote an article exploring Michigan’s abysmal recycling rate and declaring the state’s 10-cent deposit law on bottles and cans a “hands-down success.” In fact, the opposite is true. Michigan’s recycling record is terrible because of the deposit law, not despite it. We need only point to the many states that have no bottle deposit policies and much higher recycling rates than Michigan’s 15%. These include neighboring states Illinois (37%), Minnesota (43%), Pennsylvania and Wisconsin (both at 35%).

Bottle return rates have slowly dropped over the years, falling to 92% in 2016. That’s the lowest rate since tracking began in 1990, according to the Department of Treasury.

It’s clear consumers are becoming less enamored with taking their trash back to grocery stores and want more comprehensive and convenient recycling options.

The deposit law was passed in 1976 as an anti-litter measure at a time when recycling wasn’t really contemplated. The law addresses 2% of our waste. The responsibility has been shoved off onto bottlers and grocers, costing them $100 million annually, according to a Public Sector Consultants study. That same study found the state only spends $200,000 to support recycling efforts that have fallen markedly short.

A bill in the Legislature proposes expanding the law to water bottles. That would increase the burden on private industry by another $60 million to bring in just 2% more waste. Meanwhile, Michigan would continue to be awful at comprehensive recycling.

And consider this: Michigan uses three-quarters of the revenue gleaned from unclaimed deposits to pay for contaminated site cleanup, not recycling initiatives.

Municipalities could desperately use such revenue to educate residents, expand curbside pickup programs and improve community recycling centers, like other states that realized long ago that recycling is driven by convenience.

But a curbside cart cannot live on cardboard boxes alone. The deposit law takes valuable aluminum and PET plastics out of the cart and into grocery stores. If households put those recyclables into a curbside cart, that would add about 25% more value to the recycling stream.

It would also add efficiency to our current two-pronged recycling process: one method for bottles and cans, another for everything else. Michigan’s deposit law takes bottles and cans out of the regular stream, puts them in grocery stores, where they go to distributors who then send them off for recycling. So many touches for one little can. Wouldn’t it be more efficient to throw it into the curbside cart and send it directly to the recycler? continued on page 15

it ’s the law

Requests for Bottle Deposit Fund Reimbursement Due June 1

Each year, Michigan retailers and dealers who sell beverages in returnable containers can request compensation for a small portion of the costs to handle empty containers.

To qualify, retailers must file a Request for Bottle Deposit Fund Reimbursement Form 2196 on or before June 1, 2018. Reports postmarked after June 1 will not be honored.

Form 2196 is available online to print and mail.

See www.michigan.gov/documents/taxes/2196_444331_7.pdf. Contact the Special Taxes Division, Misc. Taxes and Fees Unit at (517) 636-0515 with any questions. The payment is based on the number of empty returnable containers handled in a calendar year. Payment amounts will be known after the Michigan Department of Treasury determines the total dollars available in the fund. The Treasury will begin issuing checks after August 1.

New Law Simplifies Process for Claiming Small Business Exemption

Michigan Retailers Association-supported legislation to eliminate the requirement for small businesses to file a Personal Property Tax exemption form every year has been signed by the governor as Public Act 132 of 2018. Before PA 132, small businesses claiming the Personal Property Tax exemption because they have less than $80,000 in personal property had to do so every year by filing an affidavit with the local tax collecting unit. Under PA 132, business owners now must only file an exemption form in the first year. If an exemption is granted, the business will not have to file again unless they exceed the $80,000 threshold in a given year or there is a change in the personal property schedule that would make the business no longer eligible for the exemption.

May 2018  Michigan Food News 3

Made in Michigan — From Farm to Grocer Your Shoppers Love Local, You Should, Too The National Grocers Association reports that one of the many driving factors influencing consumers’ preference for independent supermarkets is their unique ability to offer fresh and local items through the relationships they have created with local producers. In the “2018 National Grocery Shoppers Survey,” conducted

by Nielsen on behalf of NGA, 68% of shoppers gave high scores to independents for offering locally grown produce and packaged goods. This is good news for independents, who have a keen understanding of the value of fresh and close ties to nearby farms and local suppliers.

The survey also found that shoppers value low prices, quality meats and produce, friendly staff, cleanliness, and locally grown produce and packaged goods.

In Michigan, shoppers rank the criteria “Offers locally grown produce & other packaged goods” even higher than it scores nationally.

Local Food Sales Continue to Grow USDA reports that local food sales totaled at least $12 billion in 2014, up from $5 billion in 2008; and experts anticipate that value to hit $20 billion by 2019.

USDA statistics also show that local food sales are helping to drive job growth, increase entrepreneurship in rural communities, and expand food access/choice.

Consumer interest in local food has become so pervasive that the Federal Reserve reached out to the USDA in 2017 to undertake a comprehensive study to better understand consumers’ increasing interest in where their food comes from and how their food dollars can provide greater support for local food-related businesses and farmers. The 300-plus page “Harvesting Opportunity” study reveals that:  Nearly 75% of U.S. grocery shoppers consume local food at least once per month (with the largest plurality consuming local food three times per week).  Nearly 9 out of 10 shoppers (87%) say the availability of local food is either “very” or “somewhat” important to their choice of a primary supermarket.

U S D A’s presentation, “The Staying Power of Local Food D e m a n d ,” asked why shoppers are demanding local food. Their research found the following:

 Shoppers want to have trust in the source and integrity of the food they purchase.  They seek authentic food products.  They seek clarity and transparency in food labeling.

This phenomenon is strongest among younger consumers. In a survey of more than 400 millennials conducted in 2016 by Watershed Communications, every single respondent indicated that he or she frequently purchased food and beverage brands based on the brand’s reputation for authenticity. The research also found that the willingness to pay more for local foods spans the income spectrum.

‘Buy Local’ Campaigns Make a Difference Economic analysis and strategic planning firm Civic Economics executed numerous studies attempting to quantify the difference in economic return between local and non-local businesses.

The most recent findings say that, on average, 48% of each purchase at local independent businesses is recirculated locally, compared to less than 14% of purchases at non-locally owned business.

Civic Economics and the American Independent Business Alliance report that a “buy independent/buy local” campaign that engages local businesses and residents can be a powerful tool to help sustain independent businesses and neighborhood-serving business districts. Compelling data in annual surveys by the Institute for Local Self-Reliance suggest how great that benefit can be. See the graphic above.

Buy Nearby Campaign Can Help In 2013 the Michigan Retailers Association launched “Buy Nearby,” a shop-local initiative to increase traffic and sales at Michigan businesses. The campaign runs throughout the year and is formally celebrated on the first weekend in October, called “Buy Nearby Weekend.”

The fifth year of the campaign was the biggest yet, breaking the mileage record by traveling 13,854 in the Buy Nearby van, visiting 65 communities — with a total of 84 visits from January 1 through Shop Small Saturday in November. continued on page 17

May 2018  Michigan Food News 5

Made in Michigan — From Farm to Grocer Michigan GROWN, Michigan GREAT Brand Can Help Retailers Sell Michigan Products The Michigan Ag Council builds awareness among Michigan consumers about food and agriculture. The Council engages the public through its “Michigan GROWN, Michigan GREAT” brand, launched in 2016. The brand is designed to:  Establish a trusted voice in Michigan for agricultural information for consumers, media, and retailers;  Build trust in Michigan’s farmers and farming practices among consumers; and  Increase sales of Michigan foods and products in the state.

Michigan GROWN, Michigan GREAT programming ensures that consumers are hearing directly from Michigan’s agriculture experts — the farmers themselves. The Council works corroboratively across its agricultural partners and with farm families to provide credible information about the diverse products grown and raised in Michigan.

Bring Farmers into Your Store Michigan GROWN Michigan GREAT connects retail shoppers with farmers by scheduling a day when farmers are available in-store to answer shoppers’ questions. The farmers typically set up in the fresh produce section. Experience says that the farmers won’t shy away from any questions, and that they enjoy learning just as much as the shoppers who engage in conversations. Whether you’re already in touch with farmers who supply your stores with local foods, and other products, or if you need help contacting farmers who are willing to speak with customers about products grown in Michigan, the Council is available to help host events in stores across Michigan communities.

Educate Employees In 2017, the Ag Council led 40 people on a tour of a local dairy farm, greenhouses, and a crop and animal farm in the Ann Arbor area. Topics included animal care, GMOs, sustainable environmental practices, water quality, nutritious foods, and local products. These tours are continuing in 2018, and retailers are encouraged to arrange tours to help store employees learn more about Michigan’s agricultural diversity.

A study by the University of Pennsylvania found that more than 50% of shoppers seek advice when they enter a store. As a result, educated and engaged store associates who were able to meet consumers’ needs — especially by providing knowledge about specific products —rang up sales that on average brought in 69% more money than those who didn’t, the study found. It stands to reason that employees who know about locally grown and produced products can help sell them.

In addition, studies find that shoppers — particularly millennials — want to know the story behind the products they purchase. Employees who can share details about the local products offered are able to use the power of story to increase sales.

The Ag Council also manages MichiganGrown.org, where people can learn more about food and other agricultural products. Website visitors can view farmer videos, find what’s in season, access local recipes, and read stories from Michigan farmers.

Marketing Materials Retailers can partner with Michigan GROWN. Partnership levels vary to meet each retailer’s needs. Partners may access point-of-sale signs, farmer testimonials, and the Michigan GROWN, Michigan GREAT brand in marketing materials, ads, brochures, and more. Contact Elaine Bristol at (517) 618-1934 or elaine@miagcouncil.org for more information.

Article written in part by Elaine Bristol, Michigan Ag Council Program Coordinator.

Bag stuffers, informational postcards, plus digital and social advertising are examples of ways Michigan GROWN, Michigan GREAT can be used in partner marketing. This is an example of a bag stuffer that the Ag Council can provide to help grocers share exciting opportunities such as “Meet a Farmer.”

Demand for Fresh Slows Shift to Online Grocery Shopping

The adoption of online grocery shopping is moving at a slower pace than other consumer categories, but it’s growing with about 10% of U.S. consumers now regularly buying groceries online, reports The NPD Group. Although there are more consumers buying groceries online, they haven’t jumped all-in. Nearly all online grocery shoppers (99%) still shop in brick-and-mortar grocery stores.

Consumer preferences when shopping for foods and beverages and logistical challenges are the primary reasons why consumers haven’t gone all-in on online grocery shopping.  Wanting to pick out their own fresh items was the top barrier to shopping online for groceries;  This is followed by not wanting to pay a delivery fee.  Many consumers (46%) who are lapsed online grocery shoppers or have never shopped online like that walking through a store reminds them of what else they need.  And, even though one of the key benefits of online shopping is speed, 46% of consumers who aren’t online grocery shopping enthusiasts feel it’s faster to go to the store.

The benefits of online grocery shopping such as price comparisons and not having to leave home or wait in line entice a growing number of consumers but not enough to get them to do all grocery shopping online. Groceries may in fact follow the same path as electronics, where consumers still want to see the item up close. Like electronics, often the answer is in an omnichannel approach, which grocers are now offering.

“With brick-and-mortar grocery stores announcing click & collect and speedy delivery options, the line between physical and online is blurring; and as a result, consumers are getting the best of both worlds,” says NPD’s Darren Seifer. “There is also a place for pure-play e-commerce grocers but it looks like, as of now, consumers want a seamless experience between brick-and-mortar and e-commerce.”

May 2018  Michigan Food News 7

Don’t Miss Your Chance! Nominate a Retailer or Business Partner for the Kessel Awards Do you know an outstanding food retailer or business partner? We are accepting nominations for the sixth annual Al Kessel Outstanding Achievement Awards which recognize one Outstanding Retailer and one Outstanding Business Partner each year. The Association created the awards to honor the memory of former board member Al Kessel and to shine the spotlight on the food industry, highlighting outstanding companies and sharing that recognition with peers and the public.

Previous winners have told us how meaningful it is to receive the award.

These winners include Outstanding Retailers Oleson’s Food Stores, Leppink’s Food Centers, McDonough’s Market, Hal Neiman of Neiman’s Family Market, and Fred Angeli of Angeli Foods, and Outstanding Business Partners Lipari Foods, Star Truck Rentals, Koegel Meats, County Fresh, and SpartanNash.

The awards are about drawing attention to food industry businesses that should be acknowledged for what they are doing. Wholesalers and other suppliers can nominate customers, retailers can nominate suppliers, and both can nominate peers. Michigan has great retailers and suppliers — including wholesalers, manufacturers, DSD vendors, brokers, service providers, etc. — who have contributed much to MGA member businesses, the food industry in general, and local communities. They are all deserving of recognition.

Nominating someone is a great way to support our industry. We want to make the process as user-friendly as possible. If you have a retailer or supplier in mind, just give us a call or send an email, and we can help! Contact Nora Jones, njones@retailers.com or (800) 366.3699 ext. 344.

The awards will be presented September 23 during the Michigan Grocers Food Industry Summit at Crystal Mountain Resort. We count on you to tell us who should be acknowledged each year, so please take a moment right now to nominate someone!

YOUR CUSTOMERS

PREFER LOCAL of consumers will spend more on local Learn more at mipotato.com/retail

HOMEGROWN GOODNESS UNEARTHED

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Michigan Food News  May 2018

FDA Cracks Down on Selling E-Cigarettes to Minors

FDA Commissioner Scott Gottlieb issued a statement on April 24 indicating that the FDA has been conducting a large-scale, undercover nationwide blitz to crack down on the illegal sale of e-cigarettes to minors. “We’ll hold retailers accountable for continued violations. Let me be clear to retailers. This should serve as notice that we will not tolerate the sale of any tobacco products to youth,” Gottlieb said.

He continued, “This isn’t the first time we’ve taken action against retailers for selling these e-cigarettes and other tobacco products to minors, and it won’t be the last. In fact, the FDA has conducted 908,280 inspections of retail establishments that sell tobacco products, issued 70,350 warning letters to retailers for violating the law, and initiated about 17,000 civil money penalty cases. We have also issued more than 110 No-Tobacco-Sale Order Complaints, which can result in retailers being prohibited from selling tobacco products for specified periods of time.”

If your store isn’t recently trained on spotting minors’ attempts to purchase any age-restricted product, now is the time to make sure all your responsible retailing efforts are in order. The federal Tobacco Control law points out four “effective steps to prevent violations of the minimum age requirements for the sale of tobacco products.” They are: 1. Adopting and enforcing a written policy against sales to minors; 2. Informing employees of all applicable laws; 3. Establishing disciplinary sanctions for employee noncompliance; and 4. Requiring employees to verify age by way of a photo ID or electronic scanning device.

MRA Can Help Your Business Process Credit Card Payments Most Efficiently For shoppers, it’s simple to use a credit card to pay for purchases. But for retailers, accepting credit cards can be a complicated process. A lack of transparency, surprise fees, aggressive sales tactics, and unfair contracts are just some of the hurdles retailers face when dealing with credit card processing companies.

The good news is that members of Michigan Grocers Association are now members of Michigan Retailers Association (MRA). And, as one of the nation’s oldest and largest independent credit card processors, MRA handles processing for thousands of businesses in Michigan and dozens in other states.

“In fact, MRA has accounts in all 50 states,” says Tom Tuggle, MRA Senior VP, Insurance Sales & Membership. “We process more than $1.4 billion in volume annually.”

MRA members receive low rates and enjoy personal, professional customer service. “We’re the credit card processing experts,” Tuggle says. “To put it simply, we provide the best solutions to a company’s credit card processing needs at prices that are fair and true. We stand by our members like any good business partner should, always working to be sure that you have the best solution for your business.”

MRA’s credit card processing service has no hidden fees and no teaser rates. In addition, there are no long-term contracts. “We earn your trust every day,” says Tuggle. “That’s why we don’t rope you into long-term contracts.”

Benefits of Michigan Retailers Processing MRA services all major cards (Visa, MasterCard, Discover, American Express) as well as EBT cards such as Bridge Cards, and offers a variety of deposit options: • Competitive rates and no hidden fes • Free setup, supplies, chargebacks, terminal reprogramming • No long-term, “handcuff ” contracts • No monthly minimums • State-of-the-art online access to statements • Automatic data breach protection • EMV/chip card compliant terminals • Point-of-sale, website, computer, smartphone, and tablet processing  EMV/Chip Card Terminals — Retailers must protect themselves from chargeback liability. MRA makes the switch to EMV simple and affordable, offering 50% off EMV terminals. MRA also provides $100,000 of protection against the cost of a data breach involving customers’ credit cards.  E-Commerce — MRA partners with Authorize.Net to provide members with an Internet credit card solution that allows customers to make credit card purchases from their e-commerce site. It’s compatible with most online shopping cart programs. Retailers who currently use a payment gateway service other than Authorize.Net can still take advantage of MRA’s low Internet credit card processing rates.  Web-Based Processing — Transaction Express is MRA’s web-based payment processing engine that serves as a Virtual Terminal for secure credit card transactions. It allows retailers to use the Internet to do everything that can be done on a conventional POS system. Features include Payment Gateway, Batch Upload, ACH Processing, Recurring Billing, Back-Office Integration, and more.  Online Reporting — TransLink provides online access to the information retailers need to manage credit card sales efficiently. TransLink provides secure, instant access to statements, chargebacks, and transaction details. “This means there’s no more searching through stacks of receipts or boxes of files,” says Tuggle.

 Gift Cards — MRA’s electronic gift card program allows retailers to input the exact denomination a customer wants at the time of the transaction. In addition, retailers can personalize the cards with the store name. Retailers can also access a complete record of the gift card transition via the Internet.  Mobile EMV Credit Card Processing — Businesses can process secure credit card transactions with a Smartphone, using the SwipeSimple cardreader and payment gateway or process securely with a tablet using the ShopKeep cardreader and payment gateway from Michigan Retailers Association.  Always-Available Customer Support — MRA’s expert customer service is one of the top competitive advantages. Any time you need help, you will deal with a real, live expert.

No-cost Quote Comparison “Whether you’ve been in business for years or are just starting out, we have the merchant processing solution that’s just right for you. Please contact us to compare our solutions to what you have now,” Tuggle adds. “With our no-cost quote comparison, we’ll show you – in writing – how you’ll benefit from Michigan Retailers processing.”

To learn more, see www.retailers.com or contact MRA’s Harmony Clouse at hclouse@retailers.com or (800) 366-3699.

MRA is All About Service: In addition to a strong credit card processing program, MRA membership services range from legislative advocacy to business insurances, discount programs, information services including free labor law posters, college scholarships, and more. Michigan Retailers also operate the popular Buy Nearby campaign, which encourages all Michigan consumers to shop locally. Upcoming issues of the Michigan Food News will provide a more detailed look at these services.

The Association has four full-time regional marketing representatives in the field providing service to members. Be sure to check out the back cover for details, and call your local contact for information on any of MRA service.

Lottery News

Quick Instant Game Family Expected to Generate Interest; Boost Sales

By Brian O. Neill, Michigan Lottery Commissioner The Michigan Lottery’s instant game portfolio has performed at record levels for the last three years. In 2015, Lottery instant game sales eclipsed $1 billion for the first time ever with double-digit growth. Sales growth continued in 2016 with instant game sales increasing about 10% to $1.1 billion. Final results for 2017 show instant game sales increased an impressive 16% from 2016 to a record $1.3 billion.

The momentum for instant games has carried forward into 2018, with sales for the first half of the fiscal year increasing about 12% compared to the same period in 2017. The Lottery is launching a new family of “Quick” instant games to help maintain player interest and continue that sales momentum. The “Quick” instant games launched May 1. Players may choose from a variety of price points: $1, $2, $5, and $10. The new games also offer players a range of top prizes. The games are:

Quick Cash – A $1 ticket with top prizes of $5,000, and more than $5 million in total prizes.

Quick Winnings – A $2 ticket with top prizes of $50,000, and more than $20 million in total prizes.

Quick Riches – A $5 ticket with top prizes of $500,000, and more than $29 million in total prizes.

Quick Million – A $10 ticket with top prizes of $1 million, and more than $51 million in total prizes.

We expect the variety of price points and prizes will make the “Quick” family of games attractive to a large number of players and build on the strong interest and purchases in instant games.

Reminder: As reported in the April issue, Gov. Snyder accepted the resignation of Commissioner Aric Nesbitt and appointed Brian O. Neill, the Lottery’s Chief Deputy Commissioner, to the post.

May 2018  Michigan Food News 9

On April 24, the Association hosted its annual Legislative Reception, with nearly 130 people gathering to build rapport with legislators, state department leaders, and industry peers. The event was a combined grocers and retailers’ reception, following MGA becoming a division of the Michigan Retailers Association (MRA) in January.

An important grassroots addition to the Association’s daily advocacy and lobbying work, the reception provides a fun and effective way to meet lawmakers from across the state and share positions and concerns in a relaxed social setting.

In preparation for the event, MRA created a handout, available at the reception, to highlight the economic impact grocers as well as all retailers have on the state.

It also reminded legislators of several Association priorities including preventing and repealing burdensome or unfair regulations, modernizing statutes to allow for 21st century innovation, and protecting free markets and competition.

This event is a unique opportunity for grocers and suppliers to showcase the topof-the line food and beverages they create and sell each day. A selection of Michigan wine, craft beers, spirits, and soft drinks rounded out the outstanding food and flowers provided by Michigan Grocers. The bill of fare tied in seamlessly with MRA’s Buy Nearby program — a year-round campaign designed to keep everyone excited about Michigan’s great products.

Future legislative receptions are not to be missed!

Photos, this page top to bottom, left to right: Prairie Farms Dairy’s Tom Davis and the Buy Nearby Guy make a fitting pair. Prairie Farms prides itself on local farmers supplying fresh milk to local grocery stores, and the Buy Nearby campaign’s goal is to keep shopping dollars local.

Jim Forsberg with Arctic Glacier Premium Ice, Steffen Nizinski with SpartanNash, and Senator Goeff Hansen, who is a former grocer, pause their conversation to smile for a photo.

State Treasurer Nick Khouri, MRA CEO Jim Hallan, Senator Jim Marleau, Retired MRA Chairman and CEO Larry Meyer, and new MRA Board Director John Leppink with Leppink’s Food Centers take advantage of the reception to build social capital in front of the state Capitol.

Senator Tory Rocca, Senator Steve Bieda, and UBCR’s Nick Kronsbein discuss UBCR’s upcoming 20th anniversary.

Rep. Leslie Love and MRA Government Affairs VP Amy Drumm enjoy the reception.

MRA Executive VP Bill Hallan chats with the new Michigan Department of Agriculture and Rural Development Director Gordon Wenk.

Photos, page 11: Not your run-ofthe-mill reception — Shown here are some of the delicious food and beautiful flowers that make this event the talk of the town and beyond. It’s safe to say that no one left hungry.

10 Michigan Food News  May 2018

Thank you to the following Association members for their generous support of the Legislative Reception

Thank You,

Sponsors!

Amway National Association of Chain Drug Stores Artic Glacier Premium Ice Prairie Farms Dairy Busch’s Fresh Food Market Retail Industry Leaders Association Consumer Healthcare Products Association Rite Aid Dykema SpartanNash Kroger-Michigan Target Lipari Foods Prepared, Designed and Staffed by the Culinary Teams at: Meijer Oleson’s Food Stores National Confectioners Association National Retail Federation

Court Paves Way for Release of SNAP Sales Figures

In early May the Eighth Circuit Court of Appeals ruled that the USDA should publicly disclose retaillevel SNAP sales data.

The case originated in 2011 when a reporter for the Argus Leader, a South Dakota newspaper, submitted a Freedom of Information Act request to USDA seeking annual store-level SNAP redemption data from more than 300,000 SNAP-authorized retail food stores during a five-year period. The USDA denied the request and the newspaper sued. When a lower court sided with the newspaper and USDA declined to appeal, the Food Marketing Institute intervened last year with an appeal to the Eighth Circuit; and the National Grocers Association filed an amicus brief on behalf of FMI. Now the court has ruled against FMI. Judge Jane Kelly wrote the decision: “FMI’s assumption that stores would be stigmatized was speculative and not supported by any other evidence in the record.

There was also no meaningful evidence that retailers would end their SNAP participation if the contested data were released.”

The court ruling in favor of disclosure now paves the way for USDA to release more than a decade’s worth of payments to hundreds of thousands of retailers who participate in SNAP. “The supermarket industry is highly competitive and any public disclosure of this sales information could give competitors an unfair advantage, particularly over many small and medium size grocers, in addition to stigmatizing stores that serve low income communities,” says NGA President and CEO Peter Larkin. “This adverse court ruling underscores the importance of advancing a legislative solution to this problem, such as the House Farm Bill, which protects store-level SNAP data from public disclosure.”

Division of SpartanNash

Michigan House Passes Bill Allowing Quicker Delivery of Alcohol

The Michigan House passed legislation that address issues with alcohol products in high demand. House Bill 5768, sponsored

by Rep. Brandt Iden (R-Oshtemo Township), would eliminate impediments to the flow of commerce by codifying and amending current rules that govern how beer and wine comes from suppliers to distributors to retailers. Under the MRA-supported bill, an exemption to skip a hold period on the wholesaler’s floor would be created for product in high demand. This would get beer and wine in high demand that frequently sells out quickly back in stock and on the shelves for retailers. The bill now goes to the Senate Committee on Regulatory Reform.

May 2018  Michigan Food News 11

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Lipari Food’s 2018 Show Sets Records MGA Associate Member Lipari Foods held their annual food show on April 25 in Novi. This year’s show theme, “Explore Our Rainforest of Savings” was prominent throughout the event, with larger-than life displays and costumed performers. The sold-out show was the largest in the company’s history with approximately 6,000 in attendance, 711 booths, 850 vendors, and 12,500 total items at special prices.

The Lipari Food Show remains a premier place to get inspired and grow your retail or specialty foods business, check out the latest products and most profitable strategies, and have a great time while you’re at it.

“Lipari’s acquisition of Dairy Fresh Foods in Fall 2017 definitely brought a lot of new customers to the show,” says Lipari Foods Director of Events and Trade Relations Don Symonds, who also serves on the Grocers Division Board of the Michigan Retailers Association. “Another huge hit this year was the introduction of our new Inspired Organics line. Customers are looking for ways to get into the natural and organic product offerings, and it doesn’t get any easier than Inspired Organics.” He later added, “Keep in mind that we’ll do this all again with a new theme, Wednesday April 3, 2019.”

Above: Lipari Foods President and CEO Thom Lipari and Senior VP of Sales Tony Franchi at the show. Right: Don Symonds checks in with show attendees. Far right: Ford Kennedy considers new products for his family’s eight Polly’s Country Markets and Country Market supermarkets.

Looking to Get Your Hands on the Trophy?

This year’s golf outing will be at the Brookshire Inn and Golf Club, which is about 20 minutes east of Lansing. At 6,300 yards, the 18-hole (par 70) layout is an ideal course for both the casual and skilled golfer. It is uniquely mature and offers scenery more characteristic of courses only found in Northern Michigan.

The entry fee is $125 per golfer and includes golf, cart, food, refreshments, and prizes.

Golfers can enter as an individual or full team. The four-ball scramble event welcomes all, regardless of skill level. Entry deadline is June 15.

The event has an 8 a.m. registration, which includes a continental breakfast, and a 9 a.m. shotgun start. There will be lunch at the turn and an awards dinner following golf.

All Michigan Retailer Association Members are invited, so this event provides a fantastic opportunity to meet with new retailers! Sponsorship opportunities are also available. Some package options include complimentary golf. For more information and to register, contact Nora Jones at njones@retailers.com or (800) 366-3699 ext. 344.

Winning comes with bragging rights, and the Paulie Bunyan Trophy goes home with the winning team until the Association’s next golf outing.

PREVIEW The June issue of the Michigan Food News is the yearly Beverage Issue Everyone is cautious with their dollars, looking for the right opportunities to promote their products.

Is the Beverage Issue a good fit for your company?

Contact Lisa Reibsome to discuss advertising opportunities and the best way to reach retailers: MGAReibsome@comcast.net or (517) 449-2256 by May 29.

May 2018  Michigan Food News 13

Your food has a

LOCAL address

Partnering with hundreds of local producers for homegrown, homemade foods right where you live.

Visit SpartanNash.com for more information or call: Jim Gohsman 616-878-8088 Roger Delemeester 989-245-0337

MLCC News

MLCC Rescinds Longstanding ‘Half-Mile Rule’ On April 16, Michigan Court of Claims Judge Stephen Borrello dismissed a lawsuit brought in an attempt to blocks the MLCC Chairman Michigan Liquor Andy Deloney Control Commission’s plan to rescind the 1968 administrative rule that generally limited liquor stores from operating within one half mile from each other.

“There is no property right to be free from increased competition,” Borrello wrote in a summary opinion.

The judge’s ruling cleared the way for the MLCC to submit a final Certificate of Adoption to the Office of Regulatory Reinvention; and on April 17, the rule was officially rescinded in the Office of the Great Seal.

“The Liquor Control Commission was confident that the judge would agree with our arguments, and we are pleased with the decision,” said MLCC Chairman Andy Deloney. “We look forward to working with all of our licensees to continue to ensure the health, safety, and welfare of the public.”

Applying for New Licenses Applications for a new Specially Designated Distributor (SDD) license or for the transfer of ownership and/or location of an existing SDD license must be submitted on the Retailer License & Permit Application (LCC-100) form and accompanied by the documents and fees indicated on the form. All other requirements for new or transferring SDD licenses remain the same as they were prior to the rescission of administrative rule R 436.1133, the “Half-Mile Rule.”

Revenue Services Cashier Office Relocates Effective February 26, 2018, the Michigan Department of Licensing and Regulatory Affairs (LARA) Revenue Services cashier office relocated to the Bureau of Medical Marihuana Regulation (BMMR) building located at 2407 North Grand River Avenue, Lansing, MI 48906.

Those wishing to make payments in person at

the cashier office will need to go the BMMR rect shipment is not just an issue of individuals building to pay and not to the Commission of- at home purchasing alcohol for their own use, fice as in the past. but it is also an issue of businesses using direct The cashier fax number has also been shipment. The MLCC reminds retailers that — changed to (517) 284-8557 for applications as license holders in the state of Michigan — being submitted with a credit card payment. retailers may not purchase, sell, or possess bevCommission forms have been updated to in- erage alcohol that has not been purchased from clude this new fax number. To mail a payment MLCC, MLCC’s authorized agent or distributor, via check or money order, you may send your an authorized distribution agent certified by orpayment to Michigan Liquor Control Commis- der of MLCC, or a licensee of MLCC authorized sion, P.O. Box 30005, Lansing, MI 48909. to sell that alcoholic liquor to a retail licensee.

Please note that LARA Revenue Services is not part of the Michigan Liquor Control Commission. Receipt of payment and application forms by LARA Revenue Services does not constitute receipt of an application by the Commission. Applications submitted through LARA may take up to two additional business days to be received by the Commission after receipt by LARA Revenue Services.

For requests that require a timely receipt of an application by the Commission to be processed, such as Special Draw shoppers to your produce department with Licenses and temporary requests, please ensure the flavor, freshness and quality they expect from that your application will the place where apples love to grow. Contact be received in adequate your Michigan Apple supplier today. time to be processed by the Commission after the payment is received and processed by LARA Revenue Services.

BLOSSOMING WITH FLAVOR

Illegal Direct Shipment Reminder As alcohol becomes more available via e-commerce, illegal purchases often increase. Illegal di-

Recycling Efforts Dragged Down by Deposit Law continued from page 3

A comprehensive recycling plan also would relieve an unfair burden on grocery stores, which must make room for the recyclables and pay for the machines to accept them. Here’s the irony: While demanding sanitary conditions for our grocery stores, we force them to accept bottles and cans that contain cigarette ashes and worse.

After four decades of major changes in our economy and culture, it’s time for the anti-litter deposit law to be reexamined to keep up with the times and with other more environmentally successful states.

MRA VP of Government Affairs Amy Drumm also serves as chairwoman of the Michigan Recycling Partnership, a task force of retailers, grocers, and bottlers.

MichiganApples.com

May 2018  Michigan Food News 15

FDA Releases More Guidance on Menu Labeling Just after the menu labeling rule officially went into effect on May 7, the FDA released another round of guidance on complying with the rule. The guidance, in questionand-answer format, provides additional clarity and details requested by the food industry on the FDA’s thinking on various topics related to the new regulation. The changes in the final guidance include expanded and new examples of the ways to comply with the menu labeling requirements. The guidance includes pictures of the flexible approach that covered establishments can take, under the FDA’s regulation, in choosing how to display calories on menus and menu boards.

Key items:  The FDA states that unless a store sells “substantially the same” food as at least 19 other stores with the same brand name, they are not covered by this rule. The FDA further explains that even if stores sell the same types of foods (such as hot dogs) they would not have “substantially the same” menus unless the recipes used in those foods were the same.

This new clarification is welcome news to many small operators who were uncertain of their status under the rule. It should relieve the burden of compliance for many branded marketers with fewer than 20 outlets.  Section 6 of the guide states that the FDA intends to use the first year of the rule as an educational period. Specifically, the FDA says they do not intend to penalize or recommend criminal penalties for minor violations. A further important distinction in this section provides time for a covered entity to fix minor problems with compliance. While the FDA does not provide a set grace-period during which fixes can be made, they do state that their intention is to work with stores to provide the appropriate amount of time needed to fix minor compliance problems.

To view the 42-page guide, dated May 2018, see www.fda.gov.

16 Michigan Food News  May 2018

Mergers and Acquisitions: 2017 is Third-busiest Year

Food industry mergers and acquisitions hit a record total in 2017, reaching the highest point in over 15 years, according to The Food Institute’s recently released “Food Business Mergers & Acquisitions 2017” report. Total deals for the year climbed to 591, moving well past 2016’s high of 505 deals, but still remaining under 1999’s record 813 deals.  Food processors took part in 191 deals in 2017, a 33.6% increase from 2016.  Supermarket acquisitions dropped 39% from the previous year.  Convenience store acquisitions fell 54.4%.  The ‘Other retailers’ category, which includes dollar stores, drug stores, and e-commerce retailers, increased slightly and was host to one of the largest deals of the year, Amazon’s acquisition of Whole Foods.

People & Industry News Grazing Fields is Now Certified Humane

Michigan Apple Retail Dietitian Kit Now Available

Association Member Grazing Fields, a Michigan multi-farm cooperative, has received Certified Humane® certification from Humane Farm Animal Care, the leading non-profit certification organization dedicated to improving the lives of farm animals in food production from birth through slaughter. The certification comes after over a year of on-farm trainings, setting up systems for documentation, on-farm inspections, and on-farm re-insepctions. To be certified means the food comes from farms where Humane Farm Animal Care’s precise, objective standards for the humane treatment of farm animals are implemented.

The goal of the program is to improve the lives of farm animals by driving consumer demand for kinder and more responsible farm animal practices.

Anyone applying to the Certified Humane program must meet all of the standards before they can be certified. There is no “phase in” period allowed. In addition, third-party inspectors must have a masters or PhD in animal science or a veterinary degree, and they must have expertise in a specific species so when they’re doing an inspection, they know if what they are seeing has simply been set-up to look good or if humane practices are really being used on the farms all the time.

Humane Farm Animal Care’s 38-person scientific committee is considered the “who’s who” of farm animal welfare work. The committee is available to answer questions about farm animals, the latest research, how farmers can improve their practices, and how to make life better for farm animals.

Humane Farm Animal Care is the only certification organization in the country endorsed by over 70 humane organizations, including the ASPCA and local humane societies across the country.

Grazing Fields has been delivering products to mid and southeast Michigan grocery stores and restaurants every week since 1997. The co-op supports small and mediumsized farms throughout the region, helping to grow local economies.

Grazing Fields products are carried in Association Member stores including Tom’s Food Center, Busch’s, and Hollywood Markets.

Made in Michigan continued from page 5

This year’s Buy Nearby Weekend is October 5-7. The special shopping weekend will include a contest to get shoppers into participating retailers’ stores. The program mascot, Buy Nearby Guy, is a shopping bag in the shape of Michigan (see page 10). He’s a popular fixture at festivals, parades, and special retail events around Michigan. You can follow him on Twitter (@buynearbymi), Facebook, and Instagram. To schedule the Buy Nearby Guy for your next event and learn more about Buy Nearby Weekend, see buynearbymi.com/retailers.

The Michigan Apple Committee has released a new Retail Dietitian Kit aiming to assist retailers with educating their customers about the health benefits of regular apple consumption.

“We worked with nutrition expert Shari Steinbach to develop the retail dietitian kit as a way to provide nutrition resources to retailers,” says Michigan Apple Committee Executive Director Diane Smith. “Consumers often look to their local supermarket as a source for information about healthy eating, recipes and solutions for their families.

The Michigan Apple kit will be invaluable as a way for retailers to reach their shoppers, particularly in the fall time frame,” The kit includes information about the Michigan Apple industry; varietal, usage and storage information; and copy for social media posts, television segments and blog posts for retail dietitians. To obtain a hard copy or PDF file of the Michigan Apple Retail Dietitian Kit, contact the Michigan Apple Committee at Staff@MichiganApples.com. For more information, visit www.MichiganApples.com.

Kroger-Michigan Cuts Prices Across the State

Association Member The Kroger Co. of Michigan is investing in lowering prices in its 122 Michigan stores. Thousands of items are part of the investment, with reduced prices in all store aisles on products ranging from cheese and cookies to pasta, frozen foods, natural and organic produce, pet products, laundry, and more.

“Michigan Kroger wants to help customers stretch their budgets by reducing the cost of food and other items they purchase regularly,” says Kroger-Michigan President Scott Hays. “Kroger constantly strives to create a very positive shopping experience by offering the products customers desire at highly competitive prices.”

SUPERVALU Completes Sale and Leaseback of Seven Distribution Centers

Association Member SUPERVALU completed the sale and leaseback of seven of its distribution centers as part of the agreement to sell eight of its owned warehouses.

With the sale of these seven facilities now complete, SUPERVALU has entered into lease agreements for each facility for an initial term of 20 years with five five-year renewal options. The sale and leaseback of the eighth property is expected to be completed by October. The sale of all eight facilities represents approximately 5.8 million square feet with an aggregate purchase price, excluding closing costs and taxes, of approximately $483 million. Net proceeds from the sales will be used to reduce outstanding debt.

SUPERVALU Completes Sale of 21 Farm Fresh Stores: The company also completed the sales of 21 of its 38 Farm Fresh stores to three different retailers: Harris Teeter, Kroger Mid-Atlantic Division, and Food Lion.

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May 2018  Michigan Food News 17

MSU Team Makes Healthy Food More Accessible with App Joshua Introne, assistant professor in Michigan State University’s Department of Media and Information, helped develop a solution to what he would describe as a “food desert” in Flint. A “food desert” can be described as a city in which major conventional food retailers are the minority; and smaller, local retailers with mainly unhealthy, old, or possibly spoiled food are the primary food retail option.

Introne, assisted by Rick Sadler, assistant professor of public health, and Ashley Sanders-Jackson, professor of advertising and public relations, created a social application, called Flint Eats, that aims to allow Flint residents and food retailers to communicate openly about available resources within the community.

“The key is that we have to build some trust back into the community,” Introne said. “We have to give residents a sense of ownership over the

18 Michigan Food News  May 2018

food system. The project is not an app. The project is trying to address some fundamental social and economic problems. The app is really the visible part of this much larger effort.”

The app is designed to address the trust and information flow issue and to apply market pressure on food retailers to approve food product quality.

Introne hopes this will provide incentive for business owners to improve the quality of their food products.

Features of the app include icons on the map that will give an indication of freshness and quality based on community reviews and a geographically encoded system where users can search for specific deals anywhere on the map or get alerted to deals and sales upon walking into a store. Users also will be able to post reviews, recipes, deals, and tips about healthy eating.

The MSU Extension SNAP-Ed and Michigan Department of Education have funded the project, jointly committing about $450,000.

Introne believes Flint Eats will have a huge impact for the community thanks to the research collected from users’ purchasing behaviors. Data from the app will provide researchers with a dynamic food inventory they can use to monitor the food that is available in the city.

The project is a part of a larger ongoing effort to address food access in Flint and will also be useful for other food system efforts such as the Flint Fresh Mobile Market.

“We can see over time if markets start carrying different kinds of things,” Introne said. “The long play is to see if we can do research on the community itself to see if the availability of food within the community changes as a result of the app.”

The app ultimately will be transferred to the community; the steering committee will transform into a nonprofit.

“They will own the app and they will continue to figure out how to fund it going forward,” Introne said. “MSU is not building an app to provide a Band-Aid solution for the problem. Instead, we’re using this research project to enhance the capacity of the Flint community to address the problem on its own.”

App objectives:  To create a platform for information sharing between Flint residents about quality and cost of food available from local food retailers.  To create incentives for local food retailers to provide healthy, high-quality food in safe, friendly, accessible environments.  To provide Flint retailers with an opportunity to advertise affordable, healthy food to residents.

Check out the app at http:// flinteats.org.

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Meet your Marketing Representatives

Your Association has four full-time regional marketing representatives in the field providing service to members and signing up new ones. Their areas and contact information are shown below.

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