Reflecting on the Last 25 Years of the Association and Looking Forward

By Grace Becker

Sowing The Seeds

Originally named the California Retail Grocers and Merchant Association, the California Grocers Association (CGA) was formed in 1898 and celebrated its centennial anniversary in 1998. Twenty-five years later, this year marks the 125th anniversary of the Association and today’s landscape looks much different, with new technology, evolving customer priorities, and a changing regulatory environment in California.

Since its inception, CGA has taken root in the Golden State’s grocery industry, branching out its services and support to members in all corners of the state and standing tall to represent the industry and weather approaching storms. Considering all that’s changed over the past two and a half decades, our industry has remained united and resilient, and has much to be proud of. Together, let’s reflect on major milestones from the past 25 years of CGA, and look towards future growth for the Association as it supports and uplifts the industry responsible for feeding our great state.

1998-2008: Laying Groundwork for Leadership 2014: CGA and CIGA Merge

While its mission to serve California’s food and grocery industry has remained unchanged, the Association has evolved significantly over the past 25 years.

Its transformation was ignited by CGA’s past president, Peter Larkin, who was only a couple years into his tenure when the Association turned 100 years old. Under his leadership, Larkin changed the tone of the organization and met growing demands from members.

“Peter started the revolution of modernizing CGA,” said CGA President and CEO Ron Fong. “He professionalized the Association and brought in astute professionals in finance, government relations, and association management.”

It was also around this time that CGA members asked for a stronger emphasis on the Association’s government relations efforts. “Government relations started to become higher up on the priority spectrum,” said Fong.

By the time current CGA President and CEO Ron Fong took the wheel, the demand for a robust Government Relations program had climbed.

“When I took over in 2008, the Association ramped up to the next level of professionalism with high-level lobbyists and a greater government relations emphasis,” said Fong.

To properly support CGA’s vast membership, comprised of 300 retailers operating more than 6,000 brick-and-mortar stores, and approximately 150 grocery supply companies, Fong also enhanced the breadth of the Association’s leadership through its Board of Directors.

Senior Director of Events and Sponsorship

Beth Wright, who has been an employee of CGA since 1996, noted how much the Board has evolved through the last 25 years alongside the industry. She recalled when she first started working at CGA, only two women sat on the Board. “Under Ron’s leadership the diversity of the Board has really changed,” she said.

Since, the Board has nearly doubled in size and now includes a broad range of industry members. “When I started, the board was around 25 people. The expansion of supplier members in our bylaws, introduced by former CGA Chair Jim Amen, really increased the Board size,” said Wright.

California’s grocery industry was strengthened in May 2014 when the California Independent Grocers Association merged into the California Grocers Association, adding 126 operators and around 50 supplier companies to the Association’s membership. The move united the industry’s voice and bolstered the industry’s advocacy efforts at both the state and local levels. It also allowed the Association to speak for the kinds of retailers that resonate most with legislators: momand-pop businesses and family-owned stores. “I think by combining our two associations we got the best of both worlds because we have a more robust organization and we are serving a broader field of grocery retailers,” said Fong. “Independents have thrived with the backing of CGA. Their programs have ramped up and reached a higher level.”

Since the merger, CGA has championed the independent grocery community and retained and evolved several of its signature programs and events, including The Independent Operators Symposium and Independent Grocers Golf tournament, which remain successful to this day.

“The CIGA and CGA merger created an association with a much stronger support system for the CIGA members and stronger financial stability for both organizations.

I’m very proud that all the commitments CGA made to the CIGA members have been honored and the independent grocer is stronger today because of its membership in the California Grocers Association,” said 2023 Board Chair and indepdent store operator Dennis Darling.

A merger of this kind may not be the last. “I foresee consolidation in associations. The association world is much like the grocery world, it’s hard to make it if you’re small. So, if smaller associations partner with someone big, like CGA, it’s beneficial,” said Fong.

2016: CGA Achieves Plastic Bag Ban Victory

2019: CGA Moves House

While the Association has reinforced the industry’s presence at the Capitol, formed political alliances, and achieved many legislative victories over the last 25 years, perhaps the most notable regulatory feat was the 2016 single-use plastic bag ban.

As grocers will remember well, back in 2014 CGA scored a major political victory for the industry when SB 270 was signed into law by Gov. Jerry Brown, setting a statewide standard by banning the distribution of single-use plastic carryout bags and requiring the use of recycled paper bags or reusable plastic bags for a modest fee. Within hours of the bill signing, the American Progressive Bag Alliance filed a referendum, Proposition 67, to overturn the new statute. They also filed a separate referendum, Proposition 65, which would have redirected all revenue from the sale of reusable or recyclable paper bags to a state environmental fund. Together, CGA and its members rallied to raise over $300,000 toward the Yes on 67 campaign.

CGA led a coalition that earned the support of elected officials, business and environmental groups, community leaders, and endorsements from nearly every major newspaper in the state. On November 8, 2016, California voters approved Proposition 67, the statewide Single-Use Carryout Bag Ban, culminating in a victory for California’s grocery industry.

A new era for CGA kicked off in 2015 through the purchase of a historic, 20,544 square feet, three-level office building in downtown Sacramento. After extensive renovations, the member-owned headquarters for CGA and the CGA Educational Foundation opened in April 2019. The open house and gala drew more than 100 elected officials, Association members, and invited guests. Not only was the CGA building a sound investment by the CGA Board of Directors to benefit the Association for years to come, but since its opening the headquarters have served as a hub and resource for CGA members to hold trainings, meetings, and events.

“The decision by CGA’s leadership, Board, and membership to truly put a stake in the ground and invest in a memberowned building exemplified our industry’s continued commitment to California and the communities we serve collectively,” said Past Chair Kendra Doyel, who led the Association at the time of the grand opening. “The building serves as a center for the incredible work that CGA does not only in Sacramento and California as a whole, but, as the largest and most impactful association in the country, across the United States. The decision to invest precious resources in this way has proven to be a marked piece of the Association’s continued influence and success.”

2020: Navigating COVID-19

It goes without saying, 2020 marked the beginning of a historic few years for the grocery industry. The COVID-19 pandemic thrust grocers into the spotlight and highlighted the essential nature of the industry. CGA was with our members every step of the way, helping navigate through emergency orders and lockdowns, mitigating panic buying through public messaging, delivering PPE equipment to members, and making sense of what seemed like an endless stream of local ordinances. The Association maintained connection throughout our industry, quickly pivoting events to a virtual format so members could gather, even while apart.

The grocery industry was front and center through the pandemic, which created new opportunities to quickly adapt to new technologies and processes to maintain the health, safety, and prosperity of the industry, its employees, and its shoppers. President Fong was out it front representing the industry in the media and via his appointment to Governor Newsom’s bipartisan Task Force on Business and Jobs Recovery to jumpstart the state’s economy.

IN Bloom

Returning to the present, today the Association is thriving with healthy reserves and new programs ahead. While it’s important to reflect on the many changes and victories in our industry since the centennial celebration, there’s no shortage of offerings to look forward to.

Recalibrating Government Relations

As California’s regulatory landscape increasingly targets the business community and grocery industry, CGA is taking its government relations strategy to the next level. In the short-term, the Association is working to increase its political action campaign, GroPAC’s, annual budget with a goal to fundraise $200,000 in 2023.

“The regulatory and legislative work has ramped up tenfold. There is so much regulation and legislation affecting grocery now, even from 10 years ago, which is why we’ve had to refocus our staff and our operations to accommodate for what our members need most,” said Fong. In today’s political landscape, moderate Democrats and Republicans are shaping key political debates at California’s Capitol and local city halls. CGA is proactive and steadfast in forming vital relationships with key members, including Chair of the Moderate Democratic Caucus Blanca Rubio who spoke to members at CGA’s advocacy event Grocers Day, and incoming Speaker Delegate of the Assembly Robert Rivas, who joined CGA and store owner Chang So for a tour of Hollister Super last month. Moving forward, CGA will direct campaign contributions to the Legislature’s Moderate

Caucus members and local elected officials who support the industry and California’s business community at the Capitol.

Further, CGA will continue to educate and inform our membership on the intricacies of California’s statewide and local political landscape, and how it affects their business.

Diversified Offerings & Innovative Events

CGA is finding new ways to diversify offerings through its for-profit company, RMS, which provides cart retrieval, maintenance, sanitation, coupon redemption services, and more to grocery retailers. Adding to its offerings, RMS will take on a leading role to revamp the CRV bottle recycling program in a way that is feasible for grocery retailers following the reform of the “Bottle Bill”.

Over the past 10 years, the Association has adjusted its events to better serve members and has developed a full suite of new events. The CGA Stategic Conference, which was once a traditional trade show, transformed into an energetic three-day event with valuable educational programs and handorchestrated business meetings between retailers and suppliers. Last year CGA hosted a Leadership Summit to connect top grocery executives and key elected officials, including Governor Newsom.

CGA also toured Board Members around the Bay Area, visiting Google, the Port of Oakland, and vertical farm Plenty, for its Retail Tomorrow, California event to discover new innovations in retail and explore supply chain challenges. Looking forward, members can expect the Association to keep finding fresh and innovative ways to support our industry with new events and programs that meet the industry’s needs in real-time.

“We try to always be on the driving edge of what’s coming and what the need is now instead of sitting back. It’s about being in tune with the industry and what our members tell us they need,” said Wright. This summer, the Association introduced a brand-new event offering, the Food Industry Economic Forecast, featuring a keynote from an expert economist to give grocers a forward view of the economy and how it impacts customers and business. July also brings the return of the one-day Store Leader Training Seminars to provide store-level managers with hands-on retail-specific training for an opportunity to build their skillset and grow their grocery careers.

“We are a growing, evolving association, much like the grocery business is changing. We like to bring new event to our members and try new things that have never been tried before,” said Fong.

Promoting Industry Education

As the industry’s dedication to employee education builds, the CGA Educational Foundation (CGAEF) continues to serve as a meaningful resource, changing the lives of industry students through its signature college scholarship and tuition reimbursement programs.

“The Foundation is flourishing,” said CGAEF Director Brianne Paige. To date, the Foundation has raised a total of $8,900,150 in college scholarships and has awarded $2,028,668 in tuition reimbursement. These figures translate to thousands of students achieving their educational goals and molding into future grocery leaders.

“The Foundation is moving towards a million-dollar annual investment in member employees through the college scholarship and tuition reimbursement programs. We’ll continue to find ways to expand our programs and resources to meet the changing needs of our members,” said Page.

On the Horizon

Looking ahead, California remains a frontier for innovation and new customer demands.

“I think consumers are getting more involved and bought into legislative and regulatory matters. Consumers care more and are more educated about the products and foods that go into their bodies, so they’re lobbying for what they want to buy from our grocery stores,” said Fong. “They’re telling us what they need and we’re doing our best to keep up and put those products into our stores.” Despite changing expectations and regulatory challenges, Fong foresees a healthy business climate in California and plenty of mouths to feed.

“You’re going to have continued growth and a consistent customer base in California, but along with that comes a changing consumer palette which will challenge our grocers to stock new items,” said Fong.

CGA is proud of its long history supporting California’s food industry and is honored to grow with the grocery industry into the future—whatever it brings. “The grocery industry is so worthy of good representation and it’s my personal pleasure, and the pleasure of our staff, to represent this group of people,” said Fong. ■