NEW LAWS FOR 2022 PAGE 16
SHIFTING ELECTORAL DYNAMICS PAGE 22 2022, ISSUE 1
CALIFORNIA GROCERS ASSOCIATION
HOW LEADERS GET THEIR MOJO BACK PAGE 26
T H E N E W F A U LT L I N E S I N
CALIFORNIA POLITICS — EXPLORING THE STATE’S NEW LAWS FOR 2022 — WHAT REDISTRICTING MEANS FOR THE GROCERY COMMUNITY
To us, local means
California
We’re proud to offer more of what Californians are looking for – from locally grown produce to California-raised USDA choice meat. Long before local was cool, our family of stores made it a priority to buy direct from local growers. In fact, some of our current relationships with farmers started over 60 years ago. We’re working hard to be The Golden State’s favorite grocer. And we’re proud to employ more than 76,000 hard-working, talented Californians in our stores and other facilities..
To us local means…
fresher | better | California
CGA | BOARD OF DIRECTORS
EXECUTIVE COMMITTEE
CHAIR APPOINTMENTS Independent Operators Committee Chair
Chair Renee Amen Super A Foods, Inc.
First Vice Chair Dennis Darling Foods Etc.
Treasurer Hal Levitt The Save Mart Companies
Immediate Past Chair Hee-Sook Nelson Gelson’s Markets
Second Vice Chair Lynn Melillo Bristol Farms
Secretary Steve Dietz United Natural Foods, Inc.
Denny Belcastro Kimberly-Clark Corporation
Michel LeClerc North State Grocery Co.
Phil Miller Core-Mark International, Inc.
Elliott Stone Mollie Stone’s Markets
DIRECTORS
Tim Alborg Gopuff Joe Angulo Bodega Latina Inc. Jeanne-ette Boshoff Molson Coors Beverage Company Lori Brown Post Consumer Brands Elaina Budge Costco Wholesale (Bay Area) Pamela Burke Grocery Outlet, Inc. Jonson Chen 99 Ranch Willie Crocker Bimbo Bakeries USA Jake Fermanian Super King Markets Damon Franzia Classic Wines of California Jon Giannini Nutrition Fundamental
Sergio Gonzalez Northgate Gonzalez Markets Bryan Jankans Mondelēz International Inc. Mary Kasper 99 Cents Only Stores Saj Khan Nugget Markets Tyler Kidd Mar-Val Food Stores, Inc. Nancy Krystal Jelly Belly Candy Co. Hillen Lee Procter & Gamble Brandon Lombardi Sprouts Farmers Markets John Mastropaolo Chobani, Inc. Kelli McGannon The Kroger Company Doug Minor Numero Uno Market, Inc. Mike Moliner Food 4 Less (Stockton)/ Rancho San Miguel Markets
David Moore E. & J. Gallo Winery Joe Mueller Kellogg Company Ken Mueller Raley’s Andrew Nodes Instacart Bethany Pautsch Tyson Foods, Inc. Eric Pearlman C&S Wholesale Grocers Subriana Pierce Navigator Sales and Marketing Jaclyn Rosenberg NielsenIQ Jeff Schmiege Unilever Karl Schroeder Albertsons, LLC Jeff Severns PepsiCo Beverages North America
CALIFORNIA GROCERS ASSOCIATION
President/CEO Ronald Fong Senior Vice President & Chief Operating Officer Doug Scholz Vice President Government Relations Kelly Ash Senior Director Events & Sponsorship Beth Wright Senior Director Communications Nate Rose Director State Government Relations Leticia Garcia
Director Local Government Relations Tim James Director CGA Educational Foundation Brianne Page Director Administration & Human Resources Jennifer Gold Senior Manager Marketing & Membership Sunny Porter Communications Specialist Grace Becker
Administration & Programs Coordinator Miriam Ellis Controller Gary Brewer Senior Accountant & Assistant Office Manager William Quenga California Grocer is the official publication of the California Grocers Association. 1005 12th Street, Suite 200 Sacramento, CA 95814 (916) 448-3545 (916) 448-2793 Fax cagrocers.com
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Greg Sheldon Anheuser-Busch InBev Scott Silverman KeHE Distributors, LLC Donna Simpson Certified Federal Credit Union Diane Snyder Whole Foods Market – Southern Pacific Region Josh Southerland Reyes Coca-Cola Bottling LLC Rick Stewart Susanville Supermarket IGA Joe Toscano Nestlé Purina PetCare Rich Tovatt Smart & Final Stores Richard Wardwell Superior Grocers Karl Wissmann C & K Market, Inc.
For association members, subscription is included in membership dues. Subscription rate for non-members is $125. © 2022 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com For advertising information contact: Beth Wright bwright@cagrocers.com
CONTENTS | ISSUE 1
FEATURES COLUMNS President’s Message A Win for Grocers, Consumers, and Good Governance. . . . . . . . . . . . . . . . . . . 5 Chair’s Message A Fresh Year. . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
16 Need to Know: New Laws for 2022 Louie Brown covers new and existing laws kicking off in 2022.
Viewpoint Three Technologies: The Holy Grail of Frictionless Retailing. . . . . . . . . . . . . . . . . . . . . 8 Inside the Beltway New Year Brings Continued Supply Chain Challenges – and Opportunities.. . . . . . . . . . . . . . . . . . . . . 10 Washington Report Congress Revisits 2022 To-Do List. . . . . . . 12 Capitol Insider Biting the Hand That Feeds You… Again and Again. . . . . . . . . . . . . . . . . . . . . . . 15
22 Shifting Electoral Dynamics in Democratic California Matt Rodriquez on the California Democratic Party and what’s in store for the state’s progressive politics.
Lessons I’ve Learned on Leadership and Life Career reflections from Former Raley’s Chief Operations Officer Kevin Konkel. . . . . . . . . . . . . . . . . . . . . . . . . . 21 Mommy Blogger Let’s Play the Inflation Game.. . . . . . . . . . . 36
DEPARTMENTS CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 34
26 How Leaders Get Their Mojo Back What to do when you and your team are out of gas.
CAL I FO RNIA GRO CER | 3
PRESIDENT’S MESSAGE
A Win for Grocers, Consumers, and Good Governance RO N F O N G PR ES IDEN T AN D CEO CALIFOR N IA GR OCER S AS SO CIATIO N
The California Superior Court recently ruled in favor of the grocery community, acting to delay Prop 12’s implementation until regulations are finalized. Whether we’re stocking store shelves, or shopping them, we’ve all seen firsthand how the pandemic has continued to challenge the industry’s ability to supply products to consumers. This fact made it particularly concerning when Prop 12’s January 1, 2022, implementation date drew closer, and the grocery industry was still without finalized regulations. Back in 2018 two-thirds of Californians voted in favor of Prop 12, which promised to set new standards for the way pork, veal, and eggs are produced to be sold in the state’s grocery stores. While the ballot initiative laid out generalities, the California Department of Food and Agriculture
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(CDFA) was expected to finalize its regulations by September 1, 2019. These were to be the guidelines pork producers would use to refurbish their facilities. The deadline for finished regulations came and went as COVID-19 roiled the CDFA’s plans to draft regulations. Having lived through the past two years of the pandemic, the delays are understandable. Yet, the state’s decision to take no action to delay the January 1, 2022, implementation due to its own lack of regulatory progress, is less so. CGA was forced to seek to delay Prop 12 in the courts. At the end of November, our grocery community joined California restaurants, retailers, and a family-run pork producer in challenging Prop 12’s implementation date. In late January the California Superior Court, Sacramento County, ruled in favor of CGA, and its members, alongside our partnering plaintiffs.
CGA is thankful for the court’s intervention. To impose mandates without completing the regulatory process would have been a strike against good governance – one which would have forced producers to pull products from the marketplace, or risk being on the receiving end of regulatory fines. With meat prices soaring and plenty of supply chain issues already existing, the last thing Californians needed was to see their favorite pork products missing from meat cases or to see costs increase even further. A few years back, the CGA Board established the goal of becoming an advocate for the customers our grocery community serves. In the case of Prop 12, CGA and its members’ legal victory represents a win for our customers and our businesses. Thank you for supporting the Association’s legal strategy. ■
The Court’s ruling issued a stay of enforcement against Prop 12, meaning pork producers – almost all of which operate out of state – will have 180 days from when CDFA finalizes its regulations to meet California’s standards for pork products. CAL I FO RNIA GRO CER | 5
CHAIR’S MESSAGE
A fresh year
R EN EE A M EN S UPER A FOODS, IN C.
many changes to California politics I am overjoyed to continue the work of Immediate Past Chair Hee-Sook Nelson and carry on the legacy of my dad, Lou Amen, and my brother, Jim, in my position as Board Chair of CGA. Growing up at Super A and working in the grocery industry since I was 12 years old, I’ve had a front row seat to the impacts of California politics on businesses. A fresh year means many changes to California politics. Coming off last year’s gubernatorial recall and entering 2022 with newly imagined districts, supply chain troubles, and unpredictable COVID variants, there are plenty of conflicting ideas swirling around about how our state should run. Luckily, my fellow columnists break down everything you need to know politics-wise in this issue. Over the past several months, an inordinate number of elected officials have bowed out early before the end of their term, abandoning constituents despite the promise to represent them. While this is partially due to opportunities elsewhere, it is a largely a result of representatives’ voters no longer residing in their newly assigned districts. Elected officials shouldn’t only be willing to represent those who agree with them. Leaders elected by the people should serve
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with honesty and have California’s best interest in mind first and foremost. Though political divisiveness seems to be all around us, we cannot lose sight of our togetherness.
I also look forward to building upon the foundation laid by my colleagues, Phil Miller and Hee-Sook Nelson, to prioritize diversity in our industry.
It is essential that we are able to have conversations with one another, even if we disagree, and work together. Instead of fixating on our differences, we should use them to our advantage as a glimpse into different perspectives and creative ways to represent our state’s diverse population.
We must make an effort to set out to understand those with different perspectives from our own. We all have a lot to learn and can achieve solutions that benefit our state if we practice tolerance and work across the aisle.
To help ensure that the Legislature hears our industry’s perspective on pressing issues in our state, I urge you to donate to CGA’s GroPAC.
(Scan QR code to make your donation.)
The grocery industry has long been home to all types of people and opinions, and we will continue to welcome differences in the interest of reflecting our communities.
Our industry knows all too well how quickly things can change. I, myself have seen our customers at Super A shift dramatically over the past few years. No matter how much the neighborhoods around us change, we know that our commitment to service for our communities stays the same. As Chair I look forward to further advancing the industry I’ve called home my whole life. One last note: It was a pleasure to connect with my friends and peers at the Independent Operators Symposium in January to discuss upcoming priorities and give back to Oahu’s local community, as you will read in CGA News. After a successful Symposium, I am energized by what grocers are looking forward to in 2022. When we work together and lead with integrity, there is nothing we can’t achieve. ■
Serving Up the Freshest Eggs for Generations. NuCal Foods Family Farms Producing California’s Freshest Eggs. Our local California Family Farms have been providing farm fresh eggs daily to your stores. In addition to producing fresh, nutritious, high-quality eggs, we take pride in the traditions and values of being good stewards of the land, providing superior care for our hens and giving back to the communities that support us.
VIEWPOINT
Three Technologies: The Holy Grail of Frictionless Retailing K EV I N CO UPE FOUN DER MOR N IN GN EWS BE AT.COM
Curation, frictionless shopping, and subscriptions may be the key to the future and making your customers’ lives easier. It is a fact of life that there are way too many technologies out there for retailers to keep abreast of, much less adopt, as they look to find ways to innovate in-store and online experiences. In many ways, I’m sure a lot of retailers feel like the average viewer during Super Bowl LVI trying to make sense of all the various cryptocurrency commercials – what the hell is the difference between these things, and are any of them really relevant to the day-to-day conduct of business? I know I feel that way, and all I have to do is write about these things, not make actual choices or spend actual money or put the future of my company potentially on the line with my decisions. It is true that people like me often gravitate to the “fail fast, fail early, fail often” school of management, but to be honest, I think it is because people like me love a good story; people and companies that endure failures but end up succeeding are better stories than those with easy successes or those unable to achieve their goals. (Consultants have a different reason for loving the “fail fast, fail early, fail often” model – they get
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paid for both failures and successes, and so it sort of all works out for them in the end.) I do think, however, that there are three general areas of technological innovation to which retailers ought to pay attention, largely because they potentially could help redefine the relationship to shoppers. I’m going to mention some specific companies, not because I’m doing a commercial for them, or because I have any interest beyond the academic in seeing them succeed. I just think they’ve identified something smart, and are shining a light in the right direction. The Curation Challenge It almost goes without saying that pretty much everybody who enters a supermarket is interested in just a small fraction of the products they find there. These folks may have an actual list, or they may just have a mental checklist of what they need or want. There are a wide variety of factors that may go into the compilation of this list – health, allergies, ethics, lifestyle choices, etc.…. The reasons are many, the rationales are infinite, and the act of adhering to the list can be complicated. To say the least.
What most retailers never have done to any great degree is simplify the act of curation so that it narrows down the choices to the ones that are appropriate to the individual shopper, or making sure that the promotions that people get are consistent with their behavior. Into this environment comes a company named Sifter, which the founders – Andrew Parkinson and Thomas Parkinson, who in 1989 created Peapod, the world’s first online grocer – describe as “an advanced, new online grocery site built for the 200 million consumers who need to avoid certain allergens or ingredients, address a dietary medical need, or follow a specific lifestyle diet. The interactive site delivers an unprecedented level of product information and allows consumers to shop and select products based on their personal dietary needs and preferences. Sifter increases retailer basket size and brand sales through enhanced shopper engagement.” In other words, it allows the consumer to actually sift through the tens of thousands of products that a retailer may have in the store and, in the words, eliminate the positive and accentuate the positive. (Negatives and positives, of course, within their contexts of their lives. Your negative may be my positive. Which is exactly the point.)
VIEWPOINT
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The Frictionless Factor The nirvana of a checkout-free store experience has been very much in the conversation ever since Amazon opened its first Amazon Go store. I was one of the folks who got an advance look at the original Seattle Go unit before it opened, and I can vividly remember my reaction – that checkout-free technology eventually could be as important and ubiquitous as scanning, and that once someone had a checkout-free experience, it would be like seeing Paris for the first time – How are you going to keep them down on the farm? (If you disagree with me on this, I assume that means that you would like to go back to the time when people actually had to have physical money to use at toll booths, or would like airports to go back to those halcyon days before TSA Pre-Check and Clear. Yeah. That’s what I figured – nobody wants to go back those bad old days.) The thing is, there are a bunch of companies out there right now who are testing various iterations of a frictionless, checkout-free experience in environments that range from retail stores to sports stadiums, and the cost seems to be coming down even as the technology gets better and better. We see companies like Standard Cognition and Zippin getting ever more aggressive in this segment, and companies ranging from
ShopRite in New Jersey, Nourish + Bloom in Georgia, and Choice Market in Colorado, all are testing the technology. I continue to believe in the long-term relevance of checkout-free … and would argue to anyone uninterested in checking it out (pun intended) that this means they better have the smoothest and most engaging checkout ever created operating in their stores. Otherwise, they got trouble. The Subscription Solution Any doubts about the compelling value of creating a subscription model can be alleviated by a simple understanding of how well Amazon’s Subscribe & Save business works – alone, it generates an estimated $25 billion in annual sales. I’ve been using Subscribe & Save as a consumer almost from the moment it launched the program in 2007, and currently have about two dozen items – all things we use regularly, all things that we used to buy in a supermarket – on our list. The prices are fine, generally competitive. But the real advantage is convenience – these are items for which there is no tangible or intangible advantage to buying them in the store, and so they just show up at the house on whatever schedule I’ve established. No surcharges, no cancellation fees. It just makes my life easier and locks in these
sales for both Amazon and the individual vendors over the long term, because once people get into these programs, they’re in for the duration. And yet, almost nobody seems to be competing with Amazon. Until now. My friend Tom Furphy, who does The Innovation Conversation with me on MorningNewsBeat, is the guy whose team launched Subscribe & Save at Amazon, and having left the company a number of years ago, he’s now built a team that has developed a competitor called Replenium. Or, as I call it, Subscribe & Save for everyone else. I think this is important because, just like Sifter and checkout-free technologies, the overarching goal of Replenium is to remove friction from the shopping experience and create a stronger foundation on which customer relationships can be built. None of these businesses are about the individual transaction, but they are about building enduring connections that can lead to greater profit in the long-term. For me, that’s the Holy Grail of retailing. And I think it makes for more than just a good story. ■
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INSIDE THE BELTWAY
New Year Brings Continued Supply Chain Challenges – And Opportunities J EN N I F ER H ATC H ER CHIEF PUBLIC POLICY OFFICER AND SVP, GOVERNMENT REL ATIO NS FOOD MAR K ET IN G IN S TIT UT E
The pandemic altered the grocer-customer relationship. Now, we’re working to articulate what this means moving forward. As America enters year three of the pandemic, it’s clear that the last couple of years have been challenging for consumers and retailers alike. Our industry continues to grapple with inflation, supply chain complications, and record-setting consumer demand for food at home. Because these pressures are not expected to subside immediately, the food retail industry is addressing these issues in both the short and long-term. Through congressional briefings and press conferences, FMI is working to explain the complexities and intricacies of these challenges to public policy officials, the media, and consumers who want to understand why they are spending more at the grocery store. Due to the essential nature of grocers and food manufacturers, our industry has embraced the responsibility and privilege of serving our communities during the pandemic while continuing to provide a sense of normalcy for customers. The food industry’s supply chain challenges have evolved over time. In the early weeks of the pandemic when many were uncertain of how long lockdowns would last, consumers turned to their neighborhood grocery
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stores to stock up on essentials. This panic buying, combined with the fact that shoppers increasingly embraced – or were forced to embrace – the idea of cooking their own meals at home rather than dining out, caused consumer demand for groceries to jump 50 percent almost overnight. Prior to the pandemic, in February 2020, 52 percent of all household food spending was at restaurants. Two months later, that number fell to 34 percent, creating an enormous spike in demand for food retailers. This shift presented a huge challenge to the supply chain as retailers struggled to keep up with the sudden surge in demand at their stores. As the pandemic progressed, the demand evolved from short-term
stocking-up to long-term, widespread lifestyle changes in which consumers continue to cook and eat more at home than at restaurants. A combination of supply chain challenges are likely to persist as we move further into 2022. For example, in-demand products may be sitting idly in warehouses because there aren’t enough truck drivers to distribute food throughout the country, resulting in shortages on store shelves. According to the American Trucking Associations, the nation is facing a record shortage of 80,000 drivers. Like almost every industry in the U.S. economy, the food industry is reporting worker shortages driven by a host of factors including childcare responsibilities, health concerns, and difficulty recruiting and retaining workers. According to FMI’s annual The Food Retailing Industry Speaks report, 80 percent of responding retailers said their inability to attract and retain quality employees is negatively impacting their business. The cost of raw materials used to produce popular products is also increasing due to labor shortages, extreme weather events, higher fuel costs, and backups at ports. Supplies of cardboard boxes are low due to increased online shopping and higher costs for freight and raw materials.
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If we drill down into the issue of packaging, we get a real sense of how many moving Continued on page 13 ▶
WASHINGTON REPORT
Inside the Beltway
G R EG F ER R A R A PR E S IDE N T AN D CEO N AT ION AL GR OCER S AS S OCIATIO N
Congress revisits 2022 to-do list Partisan gridlock continues to be a theme as the Biden Administration and Congress take on economic concerns, new tax proposals, and child nutrition.
to pass legislation, dubbed the COMPETES Act of 2022, to increase America’s economic competitiveness with China.
Earlier this year, Punxsutawney Phil, the nation’s most famous groundhog, saw his shadow, leading us to brace for six more weeks of winter. Unfortunately, it doesn’t appear things are warming up in the nation’s capital either. Between the situation in Ukraine and an open seat on the U.S. Supreme Court, Capitol Hill is buzzing, and both parties have their eyes already set on the midterm elections that will likely lead to an extended period of partisan gridlock. Despite this political Groundhog Day, NGA remains focused on advocating on behalf of independent grocers throughout the country, ensuring their priorities are heard on both sides of the political aisle. The Economy Consumer worries over persistent supply chain challenges and soaring inflation have elevated concerns in both the Biden Administration and among members of Congress, particularly vulnerable Democrats hailing from battleground states. With that in mind, NGA expects to see a renewed focus on the economy, including efforts
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Taxes The majority of NGA’s tax work in 2021 was spent been playing defense, and by Q2 of that year, the White House and Congressional Democrats had their sights on a $3–$6 trillion “Build Back Better” package that would be paid for, in part, by substantial tax increases on businesses and individuals. Democrats, however, continue to be locked in negotiations over their BBB spending plans and will likely look to budget reconciliation to move legislation. NGA and various tax coalition partners continue to be hard at work fighting against tax hike proposals.
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The Senate passed its version earlier this year, but it has since undergone a number of changes to address broader economic and foreign policy concerns. That’s not all, a problematic provision included in the Senate version would create mandatory online country-of-origin labeling for internet sales of a variety of imported products, including foods, and would charge the Federal Trade Commission (FTC) with enforcing its provisions. NGA is working with Sen. Baldwin’s office as well as House and Senate champions to get the COOL Online provisions removed.
NGA has also been working with various offices to promote tax credits for the independent grocery industry. NGA has helped to draft and introduce the Supermarket Tax Credit for Underserved Areas Act (H.R. 4687) and is working on a tax credit bill to help independents with the costs of becoming eligible to offer SNAP Online Purchasing. Transportation & Supply Chain NGA has continued a two-prong approach to advocacy on trucking and other transportation issues: working with federal agencies to push for regulatory flexibilities, and moving the needle on legislative solutions to transportation issues.
WASHINGTON REPORT
NGA successfully lobbied the Federal Motor Carrier Safety Administration to extend its Hours-of-Service waiver for grocery truckers. The current waiver was extended in November and carries through February 2022. With the Infrastructure Investment and Jobs Act (H.R. 3684) signed into law in November of last year, NGA was also successful in including provisions of the DRIVE Safe Act (H.R. 1745/S.659) in the bill, which creates an apprenticeship pilot program to allow commercial drivers under the age of 21 to operate across state lines. Nutrition 2022 will likely jumpstart discussions on Capitol Hill surrounding the future of federal nutrition programs. NGA is currently working with the House Education and Labor Committee as they
As NGA celebrates its 40th anniversary this year, we will look to continue to champion the independent sector. intend to mark up the first Child Nutrition Reauthorization legislation since 2010. Secondly, the House and Senate Agriculture Committees are beginning the process of preparing to write the next Farm Bill with the expiration date of the 2018 bill set to occur in 2023. Although the House may move quickly to reauthorize child nutrition programs, finding bipartisan consensus in the Senate remains the largest obstacle to a bill becoming law.
Additionally, at the time of this writing, Farm Bill hearings were slated to kick off as early as February, which means that the nutrition title and pandemic-era programs like P-EBT will get a thorough review by the Agriculture Committees. As NGA celebrates its 40th anniversary this year, we will look to continue to champion the independent sector by advocating for a level playing field and policies that advance independent community grocers and wholesalers. While we have made progress over the last 40 years, there is always more work to be done to ensure independent grocers will maintain their position as the heart of local communities across the nation. For more information on these issues and how you can make your voice heard in Washington, D.C., visit grocerstakeaction.org. ■
INSIDE THE BELTWAY ◀ Continued from page 10
pieces are involved in getting a food product from farm, to factory, to shelf. For example, the ink used to label packages is in short supply in addition to certain packaging components.
T hese challenges combined with the ongoing labor, transportation, and weather impacts across the supply chain result in a “slowdown.” According to some industry experts, these conditions have delayed lead times
anywhere from eight to 12 weeks, stalling food manufacturers’ ability to fulfill orders in a timely fashion. To some degree, the food supply chain is a victim of its own success. Many fruits and vegetables that were once considered seasonal items are now available year-round thanks to an increasingly complex supply chain that delivers produce from a variety of sources. However, the level of convenience and availability that consumers are used to has been challenged by pandemic-related bottlenecks. Despite the ongoing challenges posed by the pandemic, or perhaps because of them, the food industry has a profound opportunity to make the supply chain even more resilient. A key component of this will involve technology upgrades and advances in areas like artificial intelligence, machine learning, and data analytics. Technological upgrades will
help reduce inefficiencies by utilizing data to automate portions of the decision-making process and allow for faster, better forecasting of possible disruptions. The industry is also examining ways to find a balance between the maximum efficiency supply chain model and a more robust system that relies on more inventory so that unanticipated bottlenecks have less of an impact down the line. As we continue to transform our operations to adapt to the pandemic, our industry evolves the ways we invest in and implement new technologies that improve our operational efficiency and customer experience, while simultaneously reimagining the way we engage with our customers and serve our communities. To learn more about these challenges, visit FMI.org. ■
CAL I FO RNIA GRO CER | 13
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CAPITOL INSIDER
Biting the Hand That Feeds You… Again and Again KE LLY ASH VP, G OV E R N M E N T R E LATION S C A L IF OR N I A G R O CE R S AS S OCIAT ION
It’s important California’s elected leaders remember both workers and businesses are essential as the state unwinds its pandemic strategy. Since the beginning of the pandemic in early 2020, grocers have never stopped serving customers, keeping communities fed, and employing Californians. So, what happens when many of the regulations, legislation, and executive and health orders start to be rescinded even as others remain in effect or are reinstated? Our grocery community is in the middle of finding out. Both the State Legislature and Gov. Gavin Newsom have reacted to the omicron variant spike with policy and legislative actions that give businesses a serious feeling of whiplash. With one hand, the Governor and legislative leaders passed another round of supplemental paid sick leave (SPSL) – the third iteration mandated upon the grocery industry since the beginning of the pandemic. On the other hand, Newsom decided that positive cases were manageable enough to lift the statewide indoor mask mandate, a move that has trickled down to the local level. Not seeing the logic? You’re not alone. Why would the state’s elected leaders insist on pushing through emergency, health-andsafety based legislation to reinstate SPSL, yet lift one of the very safety mechanisms
they have been touting for almost two years? Governor Newsom stated at a press conference the day he signed the bill, “That’s why sick leave is foundational – keeping people healthy, keeping patrons safe is so important.” Isn’t that why California required individuals, regardless of vaccination status, to wear masks for the last two months? If there is a legitimate need for additional weeks of supplemental leave, then why take away one of the ways to support businesses in keeping their employees safe from the public? With the idea of softening the blow, the Governor, legislative leaders, and CalChamber pointed towards a $6 billion tax relief packaged centered on grants and other benefits. Specifically, the package restored research and development tax credits, as well as the net operating loss deduction one year earlier than expected. It also expanded the relief grant program for business applicants that had been previously waitlisted for grants. The problem is that the grants are geared toward specific businesses that were shut down during the pandemic, such as
restaurants, and the plan generally misses the opportunity to support essential businesses that have been up and running throughout the pandemic. Unlike the rest of the business community in California, the grocery industry came to the table in March and April 2020 to work on solutions to keep workers safe and distanced when COVID-19 was especially novel and uncertainty about COVID’s characteristics high. This makes the neglect for essential businesses’ needs, and the continued effort to saddle such businesses with contradictory mandates a point of frustration. The Governor and the Legislature are moving mountains to support families and workers with their policies, but the grocery community has undergone a similar feat while playing whack-a-mole against inflation, severe supply chain challenges, and intermittent and unpredictable surges in consumer demand. This is why California needs to do a better job balancing its support for workers with support for the very businesses that have proven to be the lynchpin of communities during the pandemic. During the last two years we experienced firsthand how interdependent the world is. As the state moves from its pandemic to endemic strategy, it’s vital our elected leaders remember what’s truly essential. ■
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NEED TO KNOW:
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NEW LAWS FOR 2022
WHILE THE PANDEMIC HAS REDUCED THE AMOUNT OF NEW LAWS PASSED BY THE CALIFORNIA STATE LEGISLATURE, THERE ARE STILL A NUMBER OF LANDMARK LAWS TO COMPLY WITH IN 2022. By Louie Brown, Attorney at Law, Kahn, Soares & Conway, LLP January 1 kicks off a new year and brings with it a number of new laws. In my first article of 2022, I will dig into some of those new laws, describe what they did and what the future implications are for the grocery industry.
Gonzalez eliminated the 10-hour workday in production agriculture. As of January 1, agricultural employers with 26 or more employees are required to pay overtime after eight hours per day or 40 hours per week.
But before we get into the new laws, let’s cover a couple of older laws with extended implementation into 2022.
JUST BECAUSE WE HIT THE CALIFORNIA GOAL OF A $15 MINIMUM WAGE THIS YEAR DOES NOT MEAN THE ISSUE GOES AWAY.
First is Senate Bill 3 (SB 3) which was signed into law in 2016 and started the path to a $15 minimum wage. In January 2022, the minimum wage hit the target of $15 for employers with 26 or more employees. For employers with 25 or fewer employees, the minimum wage is $14 per hour and will increase to $15 per hour on January 1, 2023. However, just because we hit the California goal of a $15 minimum wage this year does not mean the issue goes away. An initiative was recently cleared for signature gathering that would increase the minimum wage to $18 per hour with an annual cost of living adjustment (COLA). If the requisite number of signatures is collected, this initiative could be on the November ballot. In 2016, another law passed that indirectly impacted the grocery industry. Assembly Bill 1066 (AB 1066) by Assemblymember
The implementation schedule for agricultural employers with 25 or fewer employees does not reach the eight-hour day until 2025. The impact of this change remains to be seen, but increased labor costs downstream could impact the cost of fruits and vegetables sold in retail. The last bill on our list of past legislation is Senate Bill 1383 (SB 1382), also passed in 2016. This bill set methane emissions reduction targets for California in a statewide effort to reduce emissions of short-lived climate pollutants (SLCP). SB 1383 establishes statewide targets to reduce the amount of organic waste
disposed of in landfills (50 percent reduction by 2020 and 75 percent by 2025). It also sets a goal to rescue at least 20 percent of currently disposed edible food by 2025 and redirect that food to people in need. Beginning in 2022, local governments are required to start implementing practices to reduce the organic waste diverted to landfills. Grocers and other retail establishments are considered organic waste generators and will be required to follow prescribed collection and separation practices. January 14, 2022 was also the effective date of the new CalOSHA Covid Emergency Temporary Standard (ETS) – the regulation that is seemingly no longer an emergency and definitely isn’t temporary. The changes, effective January 14, will remain in place until late 2022, when CalOSHA will determine whether to let the standard lapse or vote in a permanent regulation. With the Governor expected to release the strategy for transitioning from a pandemic to endemic status soon, it is still too early to predict what route CalOSHA will take. Now let’s focus on a few of the laws passed in 2021 that took effect on January 1, 2022. Continued on page 18 ▶
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Assembly Bill 1311 (AB 1311) by Assemblymember Wood makes a number of minor changes to the State’s “Bottle Bill” program. No doubt this bill was introduced to address some of the specific issues faced by dealers and recyclers in the Assemblymember’s north coast district but will also provide some meaningful relief in other areas of the state. The key changes made by AB 1311 are: n
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A product/packaging that displays a chasing arrows symbol, statements, or directions, is deemed to be a deceptive or misleading claim unless the product or packaging is considered recyclable and is of a material type and form that routinely becomes feedstock used in the production of new products or packaging.
Since the passage of SB 343, concerns from reusable plastic bag manufacturers and thermoform clamshell producers have grown. As of today, neither are included in most curbside programs and face significant challenges to reach the recycling targets in the legislation in order to be deemed recyclable and utilize the chasing arrows.
Provides alternative schedules for certified recycling centers, including by appointment. Recognizes natural disasters and States of Emergency as criteria for flexible hours of operation. Adds definition of a “bag drop recycling center.” Allows a bag drop recycling center to pay refund value within a reasonable time, not to exceed three business days, and it may be made electronically. Exempts dealers from daily load limit.
As we have seen with other bills like AB 1311, they nibble at the edges but fail to address the ultimate issue faced by grocers: in-store take back. Senate Bill 343 (SB 343) by Senator Allen may have been the most significant and underrated environmental bill passed in 2021. Better known as the “chasing arrows” bill, SB 343 seeks to create truth in environmental labeling. The bill states: It is the public policy of the State that claims related to the recyclability of a product or packaging be truthful and that consumers deserve accurate and useful information related to how to properly handle the end of life of a product or packaging.
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For a product to be deemed recyclable, it must achieve a recycling rate of 75 percent if included in a curbside collection program. If it is not included in a curbside program, the product must achieve a recycling rate of 60 percent prior to 2030 and 75 percent after 2030. The California Recycling Commission will make the determination of recyclability based on data generated by Cal Recycle.
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AS WE HAVE SEEN WITH OTHER BILLS LIKE AB 1311, THEY NIBBLE AT THE EDGES BUT FAIL TO ADDRESS THE ULTIMATE ISSUE FACED BY GROCERS: IN-STORE TAKE BACK. The following terms will be prohibited on packaging unless certain requirements are met: Ecologically friendly, earth friendly, environmentally friendly, ecologically sound, environmentally sound, environmentally safe, ecologically safe, environmentally lite, and green product.
We should expect considerable pressure from the manufacturers of these products over the next few years to implement instore take back programs as a means of increasing their recycling rates. Senate Bill 606 (SB 606) by Senator Gonzalez was perhaps the most significant labor bill passed in 2021. It creates a rebuttable presumption that a violation committed by an employer with multiple worksites is enterprise-wide if the employer has a written policy or procedure that violates these provisions, or the division has evidence of a pattern or practice of the same violation committed by that employer involving more than one of the employer’s worksites. The bill also creates a new definition of egregious violation which carries with it significant penalties.
THE BILL ALSO CREATES A NEW DEFINITION OF EGREGIOUS VIOLATION WHICH CARRIES WITH IT SIGNIFICANT PENALTIES. A violation is an egregious violation if one or more of the following is true about the employer or the willful violations committed by it: n
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Intentionally, through conscious, voluntary action or inaction, made no reasonable effort to eliminate the violation. Violation resulted in death, workplace catastrophe, or large number of injuries or illnesses.
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Violation resulted in persistently high rates of injury or illness. Employer has extensive history of past violations. Employer has intentionally disregarded health and safety responsibilities. Employer’s conduct amounts to bad faith. Employer has committed a large number of violations that undermines health and safety of the workplace.
On a positive note, violations of SB 606 cannot be prosecuted under the Private Attorney Generals Act (PAGA).
THE 2022 LEGISLATIVE SESSION IS OFF TO A SLOW START, BUT IT IS NOT EXPECTED TO STAY THIS WAY FOR LONG. A significant budget surplus combined with the transition from pandemic to endemic practices will likely result in an active legislative session, which means next year’s new bills column could be much longer and likely more upsetting. Here’s to a successful 2022! ■
Without a doubt COVID-19 had an impact on the number of bills enacted in 2021 as there are less new laws than usual.
When Disaster Strikes... From Public Safety Power Shutoffs to coronavirus updates, the California Grocers Association leverages its relationships with key state agencies to keep its members informed during natural or disasters. man-made disa Bookmark cagrocers.com and stay up to date during major disaster events.
cagrocers.com
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CGA gives me a voice in Sacramento that I otherwise wouldn’t have. Through CGA I’ve been able to lobby directly with elected officials and their staff on issues that effect my business. RICK STEWART, PRESIDENT SUSANVILLE SUPERMARKET ONE STORE – SUSANVILLE, CA
Want to learn more about the benefits to CGA membership? Contact Sunny Porter to learn more and start the conversation with your fellow industry peers at sporter@cagrocers.com or call (916) 448-3545.
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Lessons
I’VE LEARNED ON LEADERSHIP
and Life
KEVIN KONKEL SEEK FIRST THE MOST IMPORTANT AND MEANINGFUL THINGS IN LIFE. Then the trials, tribulations, joys, and victories
Former Chief Operations Officer at Raley’s & former CGA Board Chair
AFTER DOING THE RESEARCH, IT’S OK TO TRUST OUR GUT/HEART. There are tons of cliches out there from
may be kept in perspective. The eyes of man are never satisfied. If more “stuff ” is what we want, we will never have enough, and gratitude will elude us.
“experts” that have never been in our shoes, and at the end of the day, we own our decisions. Seek advice, but question it ruthlessly to ensure it’s a path to go down.
FIND THE RIGHT PARTNER.
PREVAIL OVER SELF-DOUBT.
YOU ARE THE “GOOSE THAT LAYS THE GOLDEN EGGS.”
“I’M SORRY” AND “I FORGIVE YOU“ ARE POWERFUL STATEMENTS FOR THE WORKPLACE TOO. Nothing is more
Leadership is hard, and the right relationship at home to ground, inspire, and challenge makes all the difference.
Take care of yourself and continue to produce golden eggs long-term. Focus on spiritual & physical health; otherwise, it’s difficult to serve others and tend to responsibilities. Neglecting this fact catches up to us more quickly than we realize.
IF YOU WANT TO BE A GREAT LEADER, HAVE THE HEART OF A SERVANT. It’s a life-long journey, and we never fully arrive, so above all else, be humble – lookout not only for your interests but for the interests of others.
INTENSE COMPETITIVENESS AND KINDNESS CAN CO-EXIST. I’ve seen and experienced this time and time
again in retailing. Daily, we set out to beat the competition yet cheer each other on simultaneously. Go figure.
LEARN FROM THOSE WHO HAVE DONE IT BEFORE US.
No matter what we’re going through, someone else has been in our shoes and persevered. Seek them out.
Imposter syndrome is often a natural byproduct when we’re persistently leaning against our comfort zone; push through it.
powerful than admitting mistakes, forgiveness, grace, mercy, and love. Never take a genuine connection for granted. True friends and trusted colleagues are hard to find. Honest conversations are rare. Moments of vulnerability are special. Soak these up.
WE ARE HUMAN BEINGS, NOT HUMAN DOINGS.
Love, care, and serve, knowing people are not widgets. People need leaders who provide trust, compassion, stability, and hope to achieve their best and that entails treating others with respect and dignity who are wonderfully and fearfully made individuals.
BE A GOOD STEWARD.
Return the business to the owner in better condition than where we found it. Optimally, much better.
THE GRAVEYARD IS FULL OF INDISPENSABLE PEOPLE.
We will eventually be replaced. We will move on someday. Don’t be threatened by up-and-coming superstars within our organizations. Build a bench of talent better than us and start today.
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SHIFTING ELECTORAL DYNAMICS IN DEMOCRATIC CALIFORNIA By Matt Rodriguez, CEO of Rodriguez Strategies
The California Democratic Party, its dominance, and what the latest polls portend for the state’s progressive politics. California may be part of the contiguous United States, but it has become an island unto itself in terms of Democratic political control. As voters sort themselves into increasingly ideological camps, national campaigns are ever more volatile. The presidency ping-pongs between Republicans and Democrats. Midterm elections increasingly demonstrate huge swings, typically in favor of the party not controlling the White House. President Donald Trump only lasted one term, and President Joe Biden currently sits in a perilous position, stymied by a 50-50 Senate with his party poised to lose both houses of Congress in this year’s elections.
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For the last decade, California has been largely immune to these trends, consolidating of Democratic political power at the state and local level. The California Republican Party has completely cratered with no sign of life. Hillary Clinton and Biden won historic statewide victories in 2016 and 2020, as did Gov. Gavin Newsom in fending off a recall challenge fueled by voter anger over COVID-19 policies upheld through sweeping emergency powers.
California prides itself as being on the front lines of public policy, and elected officials have leaned hard into pandemic-fueled restrictions. COVID lockdowns were as stringent here as any state in the nation. Democrats hold all statewide offices, control big city councils and mayors, and maintain historic margins in the California State Legislature. So are voters uniformly happy with what is essentially one-party government?
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It doesn’t appear that way. Recent polling shows voters believe things are on the wrong track, Governor Newsom’s approval ratings have fallen significantly, and many of California’s cities have become synonymous with bad governance, corruption, and incompetent leadership. Schools stayed closed well after they had safely re-opened in other states. Unionbacked local “Hero Pay” ordinances proliferated, even in the face of store closures and job losses due to increased
(and unsustainable) costs. At the same time, crime has exploded in cities, and homelessness is the number one issue cited by voters in places like San Francisco and Los Angeles. Nationally, the GOP appears positioned to win big in November. Will that wave spill over into California? In terms of GOP candidate victories, the answer is probably no. However, while no institutional counterweight stands in the way of progressive ambitions, voter sentiment might. We have begun to see voters push back against perceived philosophical and policy excesses and some of the candidates associated with them.
At the state and local levels, even progressive California voters have demonstrated a willingness to push back against the never-ending cycle of tax increases and bond measures that populate election year ballots.
In the 2020 cycle, voters shot down the idea of rolling back parts of Prop 13 and raising taxes on commercial property – a concept that has held since 1978. Governor Newsom’s school bond measure failed at the ballot in 2020 despite no opposition campaign of any significance – the first such loss by a statewide school bond since 1994. Proposition 22 overturned the laborbacked AB 5 for gig drivers with a whopping 58 percent of the vote – a very high number for a contested Yes ballot measure and one that overturned existing law. In the March 2020 election, voters rejected about half of local tax and bond measures put before them, including a raft of school bond measures typically seen as a “slam dunk.”
Where else might this voter unrest manifest itself this November? For that answer we can look to the bluest of the blue urban areas in the United States: California’s cities.
These population centers are among the most progressive places in the country and always at the tip of the spear
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Also in San Francisco, District Attorney Chesa Boudin, elected on a platform of less aggressive prosecution and sentencing guidelines, faces his own recall this year. In Los Angeles, nearly the same dynamic is playing out with District Attorney George Gascón (formerly D.A. in San Francisco) facing a potential recall at the
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The ultimate outsider, billionaire developer Rick Caruso, has entered the race for mayor in Los Angeles, betting that voters want an outsider candidate to run against a failed status quo widely seen as inept and self-dealing.
California’s cities have always demonstrated a kind of dual nature: laboratories of innovation; machine politics based on
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for driving tax increases and novel policy prescriptions. What are voter attitudes there demonstrating? Deep unrest with their current trajectory.
ballot and a revolt among the rank-andfile prosecutors he oversees. n
Just take a look at what has happened over the past few months: n
San Francisco voters just recalled three sitting school board members for failing to address parent concerns over school closures and student academic performance in favor of renaming schools and making changes to admissions policies. Even progressive Mayor London Breed supported the recall, remarking that officials had “failed” San Francisco’s children.
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Los Angeles City Council Member Mike Bonin narrowly dodged his own recall attempt in early 2022 but nonetheless is not running for reelection – clearly due to widespread unhappiness with his leadership (or lack thereof) on issues related to crime and housing on LA’s westside. All major candidates in the Los Angeles mayor’s race have come out either for hiring more police officers or keeping the force at its current numbers. This position would have been inconceivable in the wake of the unrest following George Floyd’s death.
union power; progressive governance fueled by wealthy urban elite donors. At the same time, this governance has failed to stem the tide of exploding housing costs, rising crime, the homelessness crisis, and in some cases out-migration to more affordable enclaves outside of California. Democratic electoral dominance is unlikely to fade in California or its urban centers any time soon. But elections this year in cities like Long Beach, San Francisco, San Jose, and Los Angeles will provide insight into what voters will demand from their elected leaders in 2023 and beyond. Matt Rodriguez is a veteran Democratic strategist with more than 20 years of experience working for candidates and causes across the nation. ■
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It’s been a tough couple of years. Here’s what to do when you and your team are out of gas.
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By Mike Maddock, CEO and Founding Partner, Maddock Douglas, Inc.
How Leaders Get their
MOJO BACK
“ People can’t inspire others unless they are inspired themselves.” – Carmine Gallo, Talk Like TED In December 2021, Adam Grant wrote a piece in The New York Times which put a name to how many people were feeling. He described the space between burnout, joylessness, and depression as “languishing.” Then, the article immediately went viral as the world gave a virtual head-nod to how a year of a pandemic had impacted them. Fast forward to 2022. Leaders are still dealing with a pandemic and many of us have moved well past languishing. In fact, Dr. Heidi Hanna, who has made a living writing, teaching, and speaking
about how leaders function best under stress, is now recommending techniques used regularly to treat PTSD for her CEO clients most impacted by the pandemic. According to Dr. Hanna, “Stress itself isn’t good or bad, but rather energy potential that can be used in positive or negative ways.” In fact, many leaders use stress to get more done and perform at higher levels. But when the stress is unrelenting it can be damaging, leading to an utter depletion of the mojo that makes us special. Continued on page 28 ▶
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My buddy, Rand Stagen, runs a leadership academy in Dallas. He’ll tell you he helps entrepreneurial leaders of companies with hundreds of millions in revenue scale to billions in sales. While this may be the outcome, I believe his most valuable skill is helping leaders see that their teams are simply reflections of themselves.
After speaking to Marshall and some other trusted advisors, I knew I had to do some work on myself first, company second. I took an intentional, lengthy break, during which I left my phone and computer on one continent and spent four weeks with my family, wine, cheese, and lavender on another one.
If that’s true — and I sincerely believe it is — then paying attention to how our own engines run is one of our most important jobs as leaders.
Our executive team could have reached me if Rome was burning, but it would
have involved a carrier pigeon or a Frenchman on a Vespa. It worked. The following two years were the best our company ever had, and the break inspired me to launch a new division which would triple the size of our firm. I am convinced that my thinking was directly related to the fresh perspective that comes with a clear head.
This just makes sense. When the leader is focused, the team is focused. When the leader is oozing with mojo, so is their team, and when the leader is out of gas… well, you see where this is going. Leadership guru Marshall Goldsmith wrote a great book titled, MOJO, in 2010. The year before the book was published, I shared a quiet moment with him at an entrepreneurial gathering that I was chairing. I had asked Goldsmith to come speak to the group about leadership. During our conversation, I admitted that I was feeling run down and feared that “I had lost my mojo.” Marshall responded with something like, “Well then your team has probably lost its mojo too.”
He was spot on. Every team becomes a reflection of their leader — good and bad — and it is natural for leaders to run out of gas occasionally. The leadership road is long and bumpy.
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So, if your mojo-meter is running on fumes, here are a few simple ways to refuel:
TAKE A BREAK Sometimes the most obvious ideas are the best ideas. When was the last time you really got away from your business? The axiom that you can’t work on your business when you are working in your business is true. One of the best ways to gain new perspective and the energy to act upon it is to leave your business behind — for a while. Verne Harnish, founder of The Entrepreneurs Organization (now EO) and Gazelles, recommends you step away from your business and take a sabbatical every seven years. He notes that every culture celebrates life transitions in seven-year increments, e.g., Confirmations and Bat Mitsvahs, which were naturally designed around our need to reset. So, taking time to recalibrate as a business leader every seven years makes a lot of sense. For this strategy to work, you really have to be committed to leaving your business behind. Take at least three weeks and commit to not checking email or calling in to see how things are going without you. If possible, go to a completely foreign location — the further off-the-grid, the better. Your goal is to be intentionally distracted by things other than business.
I have done this twice now, in my three decades of running businesses. Upon returning from each trip, I was able to see things more clearly, and the results were extraordinary. I learned that the necessary changes I was putting off because they required too much emotional capital were much easier to make upon return. I also noticed that it was easier to make subtle connections that lead to disproportionate returns. For example, upon returning from one trip, I repositioned our company and started a new one. These shifts would have required “juice” that I didn’t have when I left the country.
TAKE A NAP Naps aren’t just for grandparents and babies, leaders everywhere have learned about the value of 30 minutes of downtime. A NASA study on pilots found that a 40-minute nap improved performance by 34 percent. The National Sleep Foundation even describes napping as a mini-vacation.
It’s up to you as a leader to make taking quick breaks okay. We have a room in our office that is used for napping. I am delighted when I see someone emerge from a mid-afternoon break because it means that they feel comfortable taking care of themselves, and they will be performing at a higher level for the rest of the day.
WORK OUT DURING WORK If you can’t nap, then exercise in the afternoon. Research shows that muscle strength, power and output are all better later in the day. Nothing shrinks stress like the endorphins you get from a good workout. One benefit of the pandemic is that many companies are now embracing the benefits of more flexible schedules, making this accommodation possible. Continued on page 30 ▶
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Switching jobs will give you a fresh, meaningful problem to solve. It will allow your brain to stop grinding on your old challenges and it will remind you that you are a great problem solver. As long as you pick the right challenge, you will find that this practice is invigorating. It’s important. It’s worthy of your time.
One last bit of experience to share. Social media can be insidious. It is impossible to check out if you are always checking in. So when you take a break, leave your smart phone in a drawer. The world will be fine without you for a while. ■
SWITCH JOBS I’ve joked for years with my entrepreneurial friends that we ought to do a “Boss Swap,” during which we’d run each other’s companies for a period. While running the friend’s firm, we’d have carte blanche to make any decisions we thought necessary for the good of the company and its shareholders. After all, it’s always easier to solve other people’s problems than your own. Thankfully, there are simpler and perhaps less dramatic ways to switch jobs. They are called special projects. Just pick a really big challenge that is new to you. This could be in your department, another department, or within a client’s company. Commit to working on this singular challenge. Establish a time limit to solve the challenge. Since this is essentially a working sabbatical, a good rule of thumb is 4–6 weeks, but even dedicating a week to something completely different will work wonders. Choose the biggest, most important challenge you believe you can solve within that time frame so you are completely distracted and engaged.
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FOCUS ON FUTURE OUTCOMES I’ve noticed that for leaders, the past sucks energy, but the road ahead fuels mojo. The solution to this is simple on paper, but hard for many to implement: We must always be focused on the future we want. The easiest way to do that is to simply ask this question constantly: “What is the outcome I want?” Great leaders have the ability to focus and refocus themselves and their teams on this powerful question. In doing so they are constantly writing a story about a better future instead of reflecting on a past that they cannot change.
Mike Maddock is an entrepreneur, a keynote speaker, an executive coach and a writer. He calls himself an Idea Monkey because he loves to solve problems with disruptive ideas. This passion for problem solving led him to establish Maddock Douglas, Inc. in 1991. Maddock Douglas has become an internationally recognized innovation consultancy that has helped more than 25 percent of the Fortune 100 create and launch new products, services and business models.
CGA NEWS
Independent Operators Symposium, Jan. 9-16, 2022, Kahumana Farms, Lualualei Valley, O’ahu.
SYMPOSIUM GIVES BACK When CGA’s events team began planning the Independent Operators Symposium for 2022, we knew we wanted to adopt a unique approach to our educational program. For one, the industry was fortunate enough to experience a prosperous last two years, and it seemed only right to find a way to start the new year by showing gratitude and giving back to the beautiful island hosting our independent operator community. We also wanted to get back to connecting at a human level with those outside of the small cohorts many have been reduced to interacting with during the pandemic. Enter Kahumana Farms, a 31-acre sustainable farming operation and food hub on Oahu whose mission is to co-create a healthy, inclusive, and productive farm-based community with homeless families, people with disabilities, and youth. In addition to its expansive farm that grows 100,000 pounds of organic produce a year, Kahumana houses a farm-to-table café, retreat center, kitchen serving 1,200 meals daily, housing and employment services for homeless families, and programs for adults with developmental disabilities. Kahumana is a center for individuals from all walks of life from farmers to social workers, youth, and locals. Kuhamana’s mission, led with mindfulness (Maka’ala), empathy (Aloha), and working together (Lokahi) in mind, seemed a natural fit with our industry who works around the clock, year-round to provide for shoppers and communities. After touring the grounds, learning about indigenous Hawaiian crops, and enjoying a three-course meal from the farm’s harvest, guests contributed their time and labor to assemble food boxes that directly benefit the farm’s community support programs for those in need. Not only were guests able to connect to the island’s agricultural roots, learn about sustainability, and discover the nuances of Hawaiian food, but they were also able to embody the spirit of “aloha” by giving back while bonding over the vital role of food and service to our communities. We are grateful to Kuhamana Farm for welcoming our guests with open arms, and we thank our Symposium attendees for graciously donating your time to the island. Our immersive experience at Kahumana was a meaningful addition to our businessfocused educational sessions, reminding us to take pause and show gratitude. ■
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CGA NEWS
NEW MEMBERS CGA welcomes the following members:
Bel Brands USA 30 S Wacker Dr Fl 30 Chicago, IL 60606-7459 Contact: Amanda Evans, Sales & Marketing Administrative Operations Assistant E-mail: aevans@belbrandsusa.com Phone: (312) 489-5289 Website: belbrandsusa.com
eGrowcery 1221 Bowers St Ste 512 Birmingham, MI 48012-7128 Contact: Pat Hughes, Chief Executive Officer E-mail: pat.hughes@egrowcery.com Phone: (248) 417-0470 Website: egrowcery.com
FMS Solutions 800 Corporate Dr Ste 350 Ft Lauderdale, FL 33334-3624 Contact: Gary Bickmore, Chief Strategy Officer E-mail: gary.bickmore@fmssolutions.com Phone: (503) 878-8157 Website: fmssolutions.com
Rose Meat Services 4561 Loma Vista Ave Vernon, CA 90058-2601 Contact: Kevin Rose, Vice President E-mail: kevin@rosemeatservices.com Phone: (323) 589-3393 Website: rosemeatservices.com
RW Zant Co. 430 S Anderson St Los Angeles, CA 90033 Contact: Lourdes Navarro, President E-mail: lnavarro@rwzant.com Phone: (323) 980-5213 Website: rwzant.com
The Sauce Company 4000 Pimlico Dr Ste 114-261 Dublin, CA 94568-7419 Contact: Rob Barrett, Chief Operations Officer E-mail: rob@thesaucecompany.net Phone: (925) 451-3372 Website: thesaucecompany.net
Swift Pork Company 1770 Promontory Cir Greeley, CO 80634 Contact: Theodore Sangalis, Corporate Counsel E-mail: theodore.sangalis@jbssa.com Phone: (970) 339-1609 Website: jbsfoodsgroup.com
Tahoe Spirits 11355 Folsom Blvd Rancho Cordova, CA 95742-6249 Contact: Michael Bozora, Chief Operations Officer E-mail: mikeb@tahoebluevodka.com Phone: (916) 903-8106 Website: tahoebluevodka.com
Yosemite Foods 4221 E Mariposa Rd Ste A Stockton, CA 95215 Contact: Michael Lau, Vice President E-mail: michaell@yosemitefoods.com Phone: (209) 990-5400 Website: yosemitefoods.com
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!
OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES
CHIC ON THE STREETS Prada and Adidas have released the third installment of their ongoing collaboration. The highly anticipated collection features 21 sharply designed pieces including sneakers, bags, and now, apparel, carefully crafted in Italy by Prada artisans. Prada’s Re-Nylon fabric, made from recycled and purified plastic trash recovered from the ocean, is a focal point of the collection and demonstrates the brands’ commitment to environmentally-conscious innovation.
H(AIR) Tools Innovative electronic company Dyson, known for its sleek vacuums and restroom hand dryers, has entered the business of hair. The company’s new “Airwrap” hair styling wand (one of the hottest holiday gifts of 2021) uses air and controlled heat to dry and style hair simultaneously, causing less damage than traditional hair tools that use heated plates. The Airwrap has five interchangeable styling barrels to replace the rest of your hair tools and comes in at $549.99.
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The Sound Mirror ‘Voice-Activated Acoustic Mirror’ from Icon.AI combines an everyday household item with a Voice-activated Smart speaker to create a speaker-mirror hybrid. Users can stream music to the mirror wirelessly from their phones via bluetooth and connect to Alexa Voice Services with WiFi. The Sound Mirror was named three CES 2022 Innovation Awards Honoree with Audio Segments. It features a waterproof speaker and has capabilities to set alarms and control smart products.
A New Take on Tonic
Icon.ai
Olipop puts a healthy spin on classic soda flavors. The sparkling tonic claims to support digestive health, contains 32 percent of your daily fiber, and boasts no artificial sweeteners. The sparkling beverage made of plant fiber, probiotics, and botanicals, offers flavors like classic root beer, vintage cola, cherry vanilla, and orange squeeze. Olipop was developed in collaboration with a team of human gut microbiome researchers. iStock
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OUTSIDE THE BOX
Open-Ear Listening Shokz headphones allow you to listen to music solely through bone-conduction – vibrations to your bones – without putting anything inside of your ears. While this can take getting used to, it’s a good option for those who suffer from hearing loss. Previously “Aftershokz” the company rebranded to “Shokz” and refreshed its best-selling OpenRun headphones. The updated sports-friendly model is waterproof and lightweight with an 8-hour battery life and quick charge feature for $129.95.
ON-TREND ORANGE WINE
Celebrity video shout-out platform Cameo has entered the NFT space. Beginning February 17, fans of the 50,000 musicians, influencers, and athletes on the platform will be able to mint a Cameo Pass via OpenSea. Starting at $550, the NFTs will give users exclusive access to Cameo events, meet-and-greets, merchandise drops, and celebrity Q&As.
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Step aside Rosé, there’s a new sheriff in town. Orange wine is the newest trend captivating tasting rooms across the state. Despite its name, the white wine is not made of oranges at all, but rather refers to the drink’s orange hue created by leaving grape skins and seeds in contact with the juice, also known as “skin contact.” The wine has little to no additives and usually has a bitter taste and dry profile. You can try orange wines from California makers including Donkey & Goat and The Vice Wine.
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Gourmet Eats at Your Door Goldbelly food delivery allows eateries across the country to deliver to your doorstep. Ship NYC bagels, Philly cheesesteak, or lobster rolls from Maine directly to your home. Goldbelly has expanded the possibilities for restaurants struggling to survive during the pandemic. The platform offers access to over 800 eateries from meal kits to complete dishes. Food is shipped in a freezer container for freshness.
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MOMMY BLOGGER
Let’s Play the Inflation Game K I M B ER LY R A E M I L L ER WR IT E R , ACT R E S S
As food prices continue to increase, families have started to strategize food shopping I don’t want a lifetime supply of canned ravioli, but I am impressed by the people I see on TV who somehow manage to fill their basements, closets, and toolsheds with years’ worth of pantry- stable items that they bought for 37 cents. Extreme couponing, or couponing in general, has never been my thing. I like a deal as much as the next person, and if something I generally buy is on sale, I’m not beneath stocking up. Still, the few times I’ve opened the circulars that show up on my lawn each week to look at the coupons inside, I haven’t seen anything that we would typically include in our weekly grocery haul. When my local newspaper hosted an Extreme Couponing master class with someone I assume is famous in couponing circles, I surprised myself and signed up for it. But 2022, in all its humbling glory, has me rethinking many things in my life like if I can walk the 27-miles I drive to work each day and if a pantry full of ravioli isn’t worth a shot. While I may never have the time, energy, or passion for couponing like the masters, I find myself regularly brainstorming new ways to trim my ever-increasing food budget. For instance, I’ve learned to leave my husband
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and kids home for shopping trips. Everyone is an adventurous eater when they’re roaming the brightly colored aisles of the grocery store, but they’re far less committed to trying new things once they’re home. We’ve nixed our weekly takeout night, as restaurant prices unsurprisingly reflect the same uptick in food costs we’re feeling at home. Instead, I’ve been making my own pizza dough at home (Note to grocers: more self-rising flour, please!), turned Taco Tuesdays into a tradition, and making the most of my Instant Pot Indian Food cookbook. I’ve cut back on meat significantly. Thank goodness my kids love tofu. Not only has meat been harder to come by lately, but it
is by far the steepest price increase we see at the store. I’ve also been picky about the fresh produce that we buy. We go through pounds of fruit each day, but I’m relying heavily on frozen vegetables to cut back on waste and cost. I’ve even attempted to figure out the in-app coupon system for my local grocery store. Please note, if you rely on an app to incentivize customers, please have in-store wi-fi or at least don’t block cellular service, so customers can actually access it. All in all, as prices continue to increase in just about every aspect of our lives, keeping our food budget manageable may ultimately be a pointless endeavor. Still, I will continue to try to find healthy food I can ultimately afford to feed my tiny humans. Although let’s be honest, they’d probably prefer the canned ravioli. ■
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PET SPECIALTY
SUPPLIER PERSPECTIVES
Purina’s Commitment to Pets, People and the Planet By Joe Toscano, Vice President, Trade & Industry Development at Purina At Purina, we are committed to pets, people and the planet we all share. You love your pets and want a safe and clean environment where you can play together for years to come, and so do we. That’s why Purina is committed to the safety and health of our pets, and to our planet. From the soil where our ingredients grow to our manufacturing facilities where our pet food is made, you can be confident that we’re using resources efficiently throughout the journey of your pet’s food. How are we pursuing a more sustainable future? To start, we are working to reduce our greenhouse gas emissions by 50 percent by 2030 and striving for net zero greenhouse gas emissions by 2050. Purina is also transitioning away from paper FSIs and focusing instead on digital FSIs. In 2021, Purina’s FSIs were printed on 1.1 billion pieces of paper, which equals roughly 54,217 trees. For 2022, our Dog Chow, Friskies and Beyond brands have all committed to not running paper FSIs. If all of our brands fully transition to digital FSIs, we estimate we could save roughly 136 acres of forest while still offering our consumers great deals on their favorite pet products. When it comes to sustainable business practices, we source ingredients responsibly and continuously work to reduce our energy, water and waste in our operations. Every ingredient in our food serves a purpose. We work to ensure it meets the nutritional needs of your pet. Purina is working with America’s farmers to assess the ongoing challenges facing their community and collaborating to help implement innovati ve approaches like regenerati ve agriculture to improve the health of the ecosystem and enhance overall production. Purina is working to help Nestlé source 20 percent of its key ingredients globally from regenerati ve farming by 2025. We also partner with leading national
conservation organizations like The Nature Conservancy, Ducks Unlimited, and Pheasants Forever to promote healthy ecosystems in sourcing regions complementing the work done by thousands of farmers. Today, more than 80 percent of Purina’s product portfolio by weight is packaged in recyclable materials. We are working to optimize our packaging with the goal of making the remaining 20 percent reusable or recyclable by 2025. We are also working to incorporate more recycled content into our packages and eliminate unnecessary materials. For instance, our Tidy Cats Naturally Strong cat litter is available in 14 lb and 20 lb jugs that are made with 50 percent post-consumer recycled plastic, and Yesterday’s News clumping and non-clumping cat litters are made with recycled paper. The aluminum cans that our wet dog and cat food come in can be recycled endlessly, resulting in
a significant decrease in waste. In fact, recycling 75 percent of all aluminum cans would prevent 11.8 million metric tons of CO2 emissions, which is why we are working on a program that encourages consumers to recycle their empty cans of wet food. Why does this matter for your store? Research has shown that consumers are choosing brands whose values align with theirs, especially when it comes to sustainability. A September 2021 survey conducted by PwC showed about half of respondents said they consciously consider factors related to sustainability when making purchasing decisions. You can learn more about Purina’s sustainability efforts by visiting purina.com/about-purina/cares. Please contact your Purina sales rep to discuss further and learn how you can get involved. Purina trademarks are owned by Société des Produits Nestlé S.A.
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