California Grocer, Issue 2, 2022

NORTH STATE GROCERY CELEBRATES 60 YEARS PAGE 18

2022, ISSUE 2

ALL IN THE FAMILY: GROCERS LOOK TO THE NEXT GENERATION

CALIFORNIA GROCERS ASSOCIATION

PAGE 24

CA AGRICULTURE CONTINUES TO FIGHT CHALLENGES PAGE 30

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INDEPENDENT GROCERS ANCHOR CALIFORNIA COMMUNITIES

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

Congratulates

North State Grocery on an impressive

60 YEARS OF SERVICE

to the Communities from California’s Central Valley to Klamath Falls Oregon

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS Independent Operators Committee Chair DIRECTORS

Chair Renee Amen Super A Foods, Inc.

First Vice Chair Dennis Darling Foods Etc.

Treasurer

Immediate Past Chair Hee-Sook Alden 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.

Hillen Lee Procter & Gamble

Joe Angulo Bodega Latina Inc.

Saj Khan Nugget Markets

Ken Mueller Raley’s

Greg Sheldon Anheuser-Busch InBev

Elaina Budge Costco Wholesale (Bay Area)

Tyler Kidd Mar-Val Food Stores, Inc.

Andrew Nodes Instacart

Scott Silverman KeHE Distributors, LLC

Pamela Burke Grocery Outlet, Inc.

Nancy Krystal Jelly Belly Candy Co.

Bethany Pautsch Tyson Foods, Inc.

Jonson Chen 99 Ranch

Brandon Lombardi Sprouts Farmers Markets

Eric Pearlman C&S Wholesale Grocers

Donna Simpson Certified Federal Credit Union

Willie Crocker Bimbo Bakeries USA

John Mastropaolo Chobani, Inc.

Jake Fermanian Super King Markets

Kelli McGannon The Kroger Company

Subriana Pierce Navigator Sales and Marketing

Damon Franzia Classic Wines of California

Doug Minor Numero Uno Market, Inc.

Jon Giannini Nutrition Fundamental

Mike Moliner Food 4 Less (Stockton)/ Rancho San Miguel Markets

Elliott Stone Mollie Stone’s Markets

Sergio Gonzalez Northgate Gonzalez Markets Bryan Jankans Mondelēz International Inc. Mary Kasper 99 Cents Only Stores

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

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David Moore E. & J. Gallo Winery Joe Mueller Kellogg Company

Jaclyn Rosenberg NielsenIQ Jeanne-ette Ryan Molson Coors Beverage Company Jeff Schmiege Unilever Karl Schroeder Albertsons, LLC Jeff Severns PepsiCo Beverages North America

Director Local Government Relations Tim James

Business Development Manager Bailey Dayen

Director CGA Educational Foundation Brianne Page

Administration & Programs Coordinator Miriam Ellis

Director Administration & Human Resources Jennifer Gold Senior Manager Marketing & Membership Sunny Porter Communications Specialist Grace Becker

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

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 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: Bailey Dayen bdayen@cagrocers.com

CONTENTS | ISSUE 2

FEATURES COLUMNS President’s Message A Win for Grocers, Consumers, and Good Governance. . . . . . . . . . . . . . . . . . . 5 Chair’s Message For Family Businesses, It’s Personal. . . . . . . 6

18 North State Grocery Celebrates 60 Years How the Morgan family turned a smalltown independent market into an employee-owned empire.

Viewpoint Declaration of Independents. . . . . . . . . . . . . . 8 Inside the Beltway Where and How People Grocery Shop Continues to Evolve. . . . . . . . . . . . . . . . . . . . 10 Washington Report Independent Partnerships for the Future. . . . . . . . . . . . . . . . . . . . . . . . . . 12 Capitol Insider How California Voters Have Reshaped the Meat Industry. . . . . . . . . . . . . . . . . . . . . . 15 Mommy Blogger Showing Up to Save Our Community. . . . . . . . . . . . . . . . . . 52

24 All in the Family: Grocers Look to the Next Generation Family-owned grocers share what it means to be a family business – and how they’re transitioning that model to a new generation.

DEPARTMENTS CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 42 Index to Advertisers. . . . . . . . . . . . . . . . . . . 51

30 California Agriculture Continues to Fight Challenges Tim Linden speaks with former California Secretary of Agriculture A.G. Kawamura and other growers to explore the state of farm production in California.

CAL I FO RNIA GRO CER | 3

PRESIDENT’S MESSAGE

Family-Run Businesses Power California Grocery Community RO N F O N G PR ES IDEN T AN D CEO CALIFOR N IA GR OCER S AS SO CIATIO N

Family-run businesses and independent grocers greatly contribute to the state’s diverse grocery industry, serving distinct regions and populations across California Growing up, I was never far away from a grocery store. For more than 50 years my parents owned and operated 4 grocery stores in the greater Sacramento region. After I graduated from university, I went back to my roots helping my family manage our grocery business. At the time, I thought I’d make my career in the grocery industry, but the allure of doing something new came calling.

Soon, I found myself in law school, and then, working as a lobbyist.

Only later, the opportunity to return to the grocery community presented itself, and I knew it was time to return to the industry I grew up in. It’s funny how life works out.

Across the state, there are so many fantastic stories like my family’s: Grocery stores owned and operated independently, by multiple generations of Californians from all kinds of diverse backgrounds. Together they make up a large portion of the industry and help to serve the state’s many unique communities.

The grocery industry is an essential part of the diverse fabric which makes California so special. Stores such as Northgate Gonzalez Markets, a Hispanic grocer in Southern

California, or Nugget Markets, which has built an awardwinning employee culture through the shared wisdom across multiple generations of family ownership.

To experience California and its culture is to experience its grocery stores. In my family, 99 Ranch, an Asian market that operates throughout the state, has nurtured my relationship with my mom. For years every Saturday, I’ve picked her up from her house, and we’ve shopped the aisles full of culinary staples and treats, alike. After these trips to the store, my mom walks me through family recipes that connect me to my heritage.

These memories would not be possible without unique grocery offerings – many of which exist only due to independent and family-owned grocery stores.

In this issue we’re looking deeper into independent grocers and seeking to tell their stories. I hope you enjoy this portal into a special segment of California’s grocery community. ■

CAL I FO RNIA GRO CER | 5

CHAIR’S MESSAGE

FOR FAMILY BUSINESSES, IT’S PERSONAL R EN EE A M EN S UPER A FOODS, IN C.

The pride, kinship, and responsibility that comes with running an independent, family-owned business Few have had the unique privilege of getting to work with your mom and dad every day.

However a lucky handful of us in the grocery industry get to experience the special bond that stems from running a business with your family. I’d argue there’s nothing else like it.

Growing up in my family’s grocery store has hugely shaped who I am and how I connect with my community. As a little girl I would go to our Hollywood store on Saturdays with my dad and we’d meet all sorts of characters from the neighborhood who relied on our store.

That’s where I realized that no other industry connects to its shoppers and impacts peoples’ lives the way neighborhood grocers do.

Being involved in my community through our store has led to some of my favorite

memories and special opportunities I’m so grateful for. Just last month I got to take my kids and my grandson to Anaheim Stadium where I threw the first pitch. And of course, having the honor of following in my dad and brother’s footsteps to serve as Chair of CGA’s Board is something I cherish.

While there is an enormous sense of pride in owning and operating a small family business, naturally it comes with its own set of challenges.

Growing up, I remember when my brother was away at college my dad would call him and ask him to come home to help run the business, saying “I really need you to be here for this.” The responsibility of ownership means that you’re never fully “off duty” and you feel a personal obligation to your customers and staff.

Smaller stores like Super A create a special environment for employees who are able to put a face to the business and work with owners on a personal level. Employees have seen me get on my hands and knees to clean shelves at the store, which in turn inspires them to do a good job. Plus, being independent helps us see changes through from start to finish to get the job done which helps build employee trust.

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Our Super A employees feel like family.

Over the years we’ve been fortunate enough to express our gratitude to employees in fun and personal ways.

Super A takes pride in making a real difference in our employees’ lives. For 25 years, Super A has hosted golf tournaments raising more than $1 million in college scholarships for our employees and their dependents to thank them for all they do for our store.

As an independent operator, it has been invaluable to meet up face-to-face with fellow family-owned businesses at events like CGA’s Independent Grocers Golf and the Independent Operators Symposium where we can all come together to collaborate.

Being able to bounce ideas off my independent colleagues who share similar experiences is something I count on and has only helped us make our business better.

This kind of collaboration is unique not only to our industry, but especially to our tight-knit community of California grocers.

It’s no wonder my dad’s very best friends were from this amazing industry. ■

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

Declaration of Independents

K EV I N CO UPE FOUN DER MOR N IN GN EWS BE AT.COM

Hate to say it, but not all grocers are created equal Some have more financial resources than others. Some have better human capital than others.

There are grocers with better imaginations than others. And, let’s be honest, there are some who somehow remain in business for reasons unclear to you and me. But so it goes.

I’ve been thinking about this lately, especially when it comes to traditional/ conventional independent retailers. We’ve all seen the statistics, about how there are fewer of the breed than there were a decade ago, suggesting that obsolescence is at hand. We’ve all heard the doomsayers, prognosticating about the possibility/ likelihood that the biggest retailers simply have so much power and so many resources that it may be almost impossible for smaller independents to survive.

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I don’t think that’s true. At least, not necessarily. And not everyone.

Sure, there will be independents that, because of circumstances beyond their control or operating methods that are not up to the moment, will not make it. But there also will be plenty, I believe, that will not only survive the competitive tsunami that threatens to swamp the industry, but will thrive – because they understand the power of creative differential advantages.

In the interest of both quantifying and qualifying some of those advantages, I’ve composed what I am calling a Declaration of Independents – eight things that I think retailers can say and do to plant their flag and establish their viability and credibility in the marketplace.

1. We will focus on doing things that bigger competitors cannot do or will not do.

2. We will establish a culture in which a primary tenet is that “everything we do will bring us closer to the customer, not distance us from the customer.”

(Outsourcing of certain tasks and technologies is okay, as long as it is within that framework.)

3. Each fresh department will have at least one totally unique item that the competition does not have … and will be charged with creating at least one new completely unique item each quarter. No exceptions. Total employee participation will be not only encouraged, but rewarded. (One additional priority here: Henceforth, we only will use the term “fresh food.” Never “perishables,” because perishables rot.)

4. We will work diligently and tirelessly to eliminate friction from every part of the customer experience – whether in the physical store or online. Friction gets in the way of the shopper-shopkeeper connection. It is intolerable for the customer, and ought to be intolerable for us.

VIEWPOINT

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5. We will endeavor to make sure that every dollar we spend is an investment in the business, not a cost. This isn’t just a semantic difference, and at the very least must be applied to employees, who are keenly aware if they are seen and treated as assets, as opposed to liabilities. (Plus, if employees feel invested in, then they will be far more likely to be invested in the store’s success). It may be impossible to apply this across the board, every time we cut a check, but it is critical to make the leap to having an investment mindset in the business.

6. We will immediately establish a twoyear, two-pizza team … small enough that it can be fed with two pizzas (an old Jeff Bezos maxim), and charged with determining how the business can and should be fundamentally different in two year’s time. It will have front line employees, as well as middle managers and executives. It will be diverse in terms of ethnicity and gender. It will be seen as a privilege to be on this team, shaping the future of the business. And every year will see the formation of a new two-year, twopizza team, so that innovations always are in the pipeline, and imaginations always are working in the interest of the business. Plus, it will firmly establish the priority within the business to have an innovation mindset.

7. Constant communications – with both employees and customers – will be our north star. That means every employee will have a company email address, which will be the way in which we create community within the business, allow them to communicate with management and peers, and access critical information that will allow them to be better at their jobs. And, to jump-start the process of communicating more effectively with customers, every store and department manager will be tasked with determining (not just through shopper data, though that obviously is important) who their top 10/20/30 shoppers are, and then communicating with them directly via email or phone, asking them what they like and more importantly, what can be done to make their shopping experience better. And then, the CEO will compile his own list and reach out to the entire company’s best 10/20/30 shoppers.

8. We will work together to know, understand, and communicate our story.

There are few things so powerful as a compelling and consistent narrative, and we want every part of the business – the people we hire (especially on the front lines), the way in which the store is laid out and products are displayed, the ways in which we communicate with our customers – to reflect our story. This is

not just about marketing and strategy, though these things are important.

Rather, it is about having a deep-in-ourbones sense of our values and value, and of why and how we are essential to the people we serve.

That’s it. At least for the moment, because a declaration like this can only be a starting point for a retail business – a retail community – that is independent in the most important ways. Not tied to old world thinking. Not in thrall to a “we’ve always done it that way” mindset. And never … never, ever … so proud or entrenched or stubborn that we are unwilling to try something new that will deepen our narrative’s meaning, strengthen our connection to employees and customers, and enrich our roles as independent-minded retailers. ■

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INSIDE THE BELTWAY

W here and How People Grocery Shop Continues to Evolve LE S LIE G. SAR ASIN PR E S ID EN T & CEO F MI – T H E F O O D I N D U STRY AS S OCIAT ION

Shoppers have adapted to supply chain and inflationary price pressures as habits continue to evolve in an increasingly hybrid shopping environment Over the last two years, food retailers and suppliers have faced a variety of rapidly evolving challenges. On the positive side, it seems the worst of the COVID-19 pandemic is behind us. Health experts have stated that we are now in the endemic phase of the crisis, and FMI data shows that shopper concern is slowly but steadily subsiding.

On the other hand, the industry continues to confront complex challenges to the global supply chain that have only been exacerbated by the war in Ukraine, as well as record inflation that continues to increase costs for both food producers and shoppers alike.

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From these challenges, we have learned valuable lessons about the importance of omnichannel operations, improving our ability to adapt to evolving consumer behaviors, and the need for strategies to support our retail associates.

FMI’s recently released U.S. Grocery Shopper Trends 2022 – Shopping Trends report illustrates the changed ways people shop for food. As recently as only a couple of generations ago, grocery shopping was the exclusive purview of one person in the household.

Today, 92 percent of all American adults participate to some degree in the household’s grocery shopping.

Interestingly, four-in-ten shoppers say they “like” or “love” to shop for groceries, and perhaps surprisingly, men (44 percent) and young adults (49 percent) say they enjoy grocery shopping even more than do women or older adults.

In terms of frequency, although the number of trips to the grocery store per week previously dipped slightly due to an increase in stock up trips and online shopping during the pandemic, Americans have now returned to their typical pre-pandemic routines of 2.8 trips to the supermarket per household each week.

The primary store remains relevant but matters somewhat less as shoppers migrate more of their spending to channels beyond supermarkets. On average, shoppers use four different channels to buy grocery items and nearly five different banners each month.

Looking a bit deeper, Millennials and Gen Z on average shop at six different banners per month, demonstrating that younger consumers are even more likely to shop around for their food and household goods.

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O n average, shoppers use four different channels to buy grocery items and nearly five different banners each month.

Supermarkets continue to be the channel shopped most frequently by the most shoppers. 81 percent say they shop at a supermarket at least fairly often, while nearly half of all shoppers say they visit a supermarket almost every time they shop for groceries.

However, two-thirds of shoppers also say they shop at a mass retailer fairly often, and a third use that type of store every time for groceries. Club stores remain popular with shoppers, as 44 percent say they use them fairly often, while online-only retailers have maintained their share of regular users (30 percent) even as brick-and-mortar stores have expanded their own online options.

The pandemic prompted shoppers who already had online grocery experience to try specific services or methods they hadn’t used before, and it also prompted many to try online grocery shopping for the first time.

Even as shoppers return to in-person grocery store shopping in greater numbers, those who do not often utilize online services continue to order online for myriad occasions or contexts.

The overall portion of shoppers who have shopped online in the past year remains steady at just under two-thirds (64 percent). 15 percent say they shop online “almost every time.” These “online-reliant” shoppers typically continue to shop in person but find a regular and critical role for online shopping in their repertoire. They continue to comprise a small minority, but this group has doubled in size during the pandemic and has largely maintained its growth.

This year’s U.S. Grocery Shopper Trends research tells the story of food retail shoppers’ resilience and transformation – and how the landscape continues to shift.

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It illustrates how shoppers have adapted to supply chain and inflationary price pressures and how shopper habits continue to evolve in an increasingly hybrid shopping environment featuring a variety of channels competing for consumer dollars. ■ To download the U.S. Grocer Shopper Trends 2022 – Shopping Trends report and to sign up to receive updates on future reports in the series, visit www.fmi.org/our-research/ research-reports/u-s-grocery-shopper-trends.

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WASHINGTON REPORT

Independent Partnerships for the Future 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

The 2022 NGA Show, held at the end of February, was another successful gathering that fortified retailers, wholesalers and suppliers with the insights, best practices, and forward-thinking guidance they need to thrive in today’s highly competitive grocery marketplace This year’s show, held at the Caesars Forum Convention Center in Las Vegas, was also the first showcase for three new initiatives from NGA and its strategic partners.

Certainly, one of the most important investments a grocery retailer can make is shopper insights – data that helps operators stay at least one step ahead of the market.

Large chain retailers have been devoting significant resources to Big Data, leaving smaller operators at a disadvantage.

Now there’s a way for independents to flex their collective analytics muscle. NGA and retail software solutions provider BRdata have teamed up to help independent community grocers leverage data analytics to stay abreast of key market trends and drive sales.

NGA Independent Insights powered

by BRdata, an independent-centric cloud-based program, allows users to see item and category trends among independents nationwide to more easily determine what trending items are not selling or underselling, along with underperforming categories.

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NGA Independent Insights will allow users to drill down on top trends in their region and state, compare trends among stores of similar sizes and in similar areas (i.e., suburban small city, urban and rural), and predict categories that will be trending in the near future. This solution makes reams of important marketplace data digestible and easily accessible to grocery operators of any size.

The past two years have revealed a heightened awareness of food safety and overall enhanced sanitation.

To that end, NGA has named Ecolab, the global leader in hygiene, water and infection prevention solutions and services, as its food safety partner as part of a new suite of resources available to NGA member companies.

Food safety and enhanced sanitation practices have always been paramount for independent community grocers. The training, guidance, and depth of knowledge provided by Ecolab will help ensure our members’ adherence to the highest food safety standards and boost confidence and trust among their consumers.

NGA members will be able to access online food safety training that reinforces the fundamentals and introduces the latest innovations. Additionally, operators will find information about how to register for webinars on food safety regulations and opportunities available through Ecolab, including links to Ecolab’s thought leadership, solutions, and services. More information can be found online as it becomes available.

Last but certainly not least, NGA and The Tomorrow Group are working together to deliver new, forward-thinking content and experiences to the independent supermarket industry, with a focus beyond tech on the total store – reimagining layout and design, and innovation in retail outside of the supermarket, as well as emerging technology.

WASHINGTON REPORT

Too often, emerging technologies and opportunities bypass independents, even though independent grocers may be the ideal partners for swift and sweeping applications of emerging innovations. Opportunities to catch this forward-thinking educational content in upcoming in-person and virtual events will be announced in the near future.

We’ve already scheduled the next NGA Show: Feb. 26-28, 2023, back at Caesars Forum in Las Vegas.

And we’re relaunching our Executive Conference as a standalone event in Washington, D.C., October 24-26, 2022, when we’ll also celebrate NGA’s 40th anniversary. Registration is now open – find more details on NGA’s website.

While NGA’s events are natural places to feature our education initiatives, it’s important that the learning continue beyond them, with year-round guidance on strategies for propelling your business to new levels of success.

These initiatives are designed to do just that – be living, evolving resources for insights and growth. You shouldn’t get caught standing still, and neither should NGA. ■ Visit us at online: www.nationalgrocers.org

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CAPITOL INSIDER

How California Voters Have Reshaped the Meat Industry LO UI E B ROW N IN T HE S ACR AME N TO OFFICE O F KAHN, S OAR E S AN D CON WAY, LLP

The issue of animal rights is one that has been recently shaped predominantly by voters Brown

After years of running into legislative roadblocks, proponents found it easier to take the emotional issue directly to the voters, and unfortunately, the grocery industry has been left trying to deal with the implementation of these poorly drafted efforts.

Proposition 2, the Farm Animal Confinement Initiative of 2008, was the first successful effort regulating eggs, pork, and veal. It passed with 63 percent of the vote, even with a well-funded opposition effort

by California’s egg industry. The initiative was relatively simple, adding sections to the California Health and Safety Code that provided for covered animals to turn around freely. Although the law was challenged in court, it was ultimately upheld.

Jump forward 10 years and Proposition 12, the Farm Animal Confinement Initiative of 2018, was passed by voters. Proposition 12, unlike Proposition 2, prohibited the confinement of calves raised for veal, breeding pigs, and egg-laying hens in areas below a specific number of square feet.

Proposition 12 also banned the sale of (a) veal from calves, (b) uncooked pork from breeding pigs, and (c) shelled and liquid eggs from hens when the animals are confined

to areas below minimum square-feet requirements. Proposition 12 passed with 62 percent of the vote.

In another major difference from Proposition 2, Proposition 12 required the California Department of Food and Agriculture and Department of Public Health to jointly adopt regulations to implement the law by September 2019 because most provisions were written to become effective December 31, 2021.

Well, the State missed the 2019 regulation deadline. Then, COVID happened.

When California shut down in March 2020, a string of executive orders followed, including one that extended the timeline for state agencies to adopt regulations. Unfortunately, an order could not delay the implementation of a voter passed initiative. So, while the State procrastinated and prolonged the development of the Proposition 12 implementation regulations, the effective date in the proposition loomed.

As with Proposition 2, industry challenged the initiative on constitutional grounds with no success, other than the US Supreme Court agreeing to hear the matter. Notwithstanding this minor victory, the implementation of the law was never delayed.

In steps the California Grocers Association and other business groups with a legal challenge arguing the law cannot be enforced without implementing regulations. The State argued the otherwise and lost in Sacramento Superior Court. The judge decided that since the language of the initiative states the department(s) shall implement regulations, it would not be enforceable unless and until regulations are adopted.

The judge ruled in favor of the plaintiffs and delayed enforcement for six months after the final implementation of the rule. The original judgement only applied to members of the California Grocers Association and California Restaurant Association. How about that for an ROI on membership! Later the court expanded the judgement to include all retailers.

So, as of the writing of this article, the regulations have been submitted to the Office of Administrative Law for review and publication. The State would like for the regulations to be finalized soon. Even with that, the earliest the regulations could be finalized is probably October, giving retailers well into 2023 before needing to comply with the recordkeeping requirements of the initiative.

In the meantime, the US Supreme Court could act and overturn the entire initiative. ■

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SEPTEMBER 25 – 27, 2022 PALM SPRINGS, CALIFORNIA

JOIN US ON OUR JOURNEY As the pandemic rounds yet another corner, the California grocery industry turns its attention to the road ahead. Navigating supply chain bottlenecks, rapid inflation and labor-related speedbumps, retailers and brands are finding ways to do more with less while driving towards “What’s Next.”

Store traffic and e-commerce adoption levels remain elevated, while consumers’ interest in cooking and working from home mark some of the lasting impacts along this route. The terrain requires the grocery industry to redraw its map by employing new skills, experimenting with new approaches, and accelerated decision-making.

The new retail roadmap features resiliency planning, better end-to-end supply visibility, fostering employee wellbeing and inclusion, and prioritizing digital and autonomous tools on the path to sustained profitability.

WHERE THE CALIFORNIA GROCERY INDUSTRY MERGES Every year, hundreds of professionals representing the broad spectrum of California’s grocery industry convene for three days to collaborate, network, and develop new approaches to their businesses. The CGA Strategic Conference features an exciting lineup of speakers that challenge you to think differently and anticipate the changing trends and new directions of the industry. Add in constant opportunities to connect with your most important partners all in one location at one time and you have the gold standard of industry conferences.

REGISTER NOW To learn more and register.

CGASTRATEGICCONFERENCE.COM (800) 794-3545 Sponsorship opportunities are available.

HUMBLE ROOTS IN COTTONWOOD LEAD TO 60TH ANNIVERSARY

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NORTH STATE GROCERY

By Trish Moratto

Over the course of six decades, the Morgan family turned a smalltown independent market into an employee-owned empire.

Richie Morgan has memories of playing in the old Cottonwood train depot as a six-year-old while his father, Richard Morgan, Sr., built a grocery empire.

While Richie danced with danger playing on the train tracks, his father ran an office and warehouse where shipments of dog food and other bulk supplies would arrive on the rails.

The family lineage story of Holiday Market and Sav-Mor foods, both which are owned by North State Grocery, is nuanced and has evolved over the course of 60 years. The family’s humble roots begin on the wide Main Street of Cottonwood, where their flagship store still stands today.

Continued on page 20 ▶

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◀ Continued from page 19

1962 – Richard Morgan, Sr. Buys Rose’s Supermarket on Main Street in Cottonwood, the store that started it all.

1989 – Richie and sister LaVonne Morgan open North State Grocery, starting with three locations.

1976 – Young Richie Morgan graduates to sorting bottles in the backroom.

In 1976, Richie graduated from dodging trains to cleaning and sorting bottles in the back of his father’s store, there in Cottonwood. At the age of 12, this was his first foray into the grocery business, which led to a lifetime in an industry he is still passionate about.

The first store the family purchased was originally called “Rose’s” – a nod to the previous owner’s mother. From the outset, the Morgans knew how important it was to stay connected to community, a tradition still pivotal to their success today.

The business grew and changed tremendously in the 1960s and 1970s.

Richard Sr. wanted to retire from owning and operating markets to pursue a new career as a consultant, offering advertising, bookkeeping, and other professional services to independent markets. This presented an opportunity for the next generation to purchase his stores.

As Richard Sr. connected with independent grocers, the family learned that many smaller grocery businesses

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wanted or needed to sell their businesses.

That drove Richie and his sister LaVonne to create North State Grocery in the hopes of building a bigger company of independent grocery stores.

North State Grocery launched with three grocery stores. One was acquired and revived out of bankruptcy, the second was built from the ground up in Colusa and the third was purchased from Richard Sr. The next few years brought a tidal wave of rapid, unplanned growth. North State Grocery went from just three stores in 1989 to a whopping 21 stores by 1992.

“It got wild for a while,” said Richie Morgan.

North State Grocery continued to purchase other stores after its initial growth season, but the focus shifted to store maintenance and improvements instead of acquisitions.

In 1998, Richard Sr. fully retired from the grocery business and North State Grocery purchased his remaining nine stores.

1989-1992 – A tidal wave of growth takes North State Grocery from three stores to 21 stores.

Between 2004 and 2006 the company started to look into employee stock ownership plan – also known as an ESOP, which gives workers ownership interest in the company. That interest takes the form of shares of stock, which gives both the selling shareholder and participants various tax benefits. Employers often use ESOPs as a strategy to combine the interests of their employees and shareholders.

Initially the company rolled out 46 percent of its shares to the employees, which came mainly from LaVonne and an additional supplier selling their shares back to the company. In 2016, the company purchased Richie’s shares and the organization became 100 percent employee-owned.

Then in 2017 and 2018, North State Grocery purchased three new stores – taking the total count from 19 to 22.

“When (North State Grocery) grows, we all see our ownership piece of the pie grow with it,” says Will Foster, a former courtesy clerk hired more than 20 years

1998 – Richard Morgan, Sr. retires and North State Grocery purchases his nine remaining stores.

2016 – The company completes ESOP transition to become 100% employee-owned.

2006 – North State Grocery rolls out ESOP, making the company 46% employee-owned.

ago who is now a warehouse manager for the company. “From what I see, more and more of our people get that and want to see it continue.”

Richie says the company is focused on upgrading and improving stores to create the best place for team members to work and shoppers to enjoy.

“We want our team to want to come to work here, to enjoy being in this space,” Morgan says.

When Michel LeClerc, Chief Financial Officer for North State Grocery started with the company in 2010, the stock price was roughly $30 a share. It has since grown to nearly $500 a share, he says.

“Initially there wasn’t a great deal of enthusiasm for the ESOP,” says LeClerc.

“We had the opportunity to educate the team about what equity is, what it means for their retirement and how as owners they made a difference.”

LaClerc has used a variety of communication tools to increase the employee’s understanding of the complex elements and slowly the company culture has shifted. Through meetings, newsletters and training the value of being an equity holder, via the ESOP, has spread through the organization.

“When our team makes the connection between the work that they do and the shares that they own, everybody benefits,” says LaClerc. “Each year we throw a barbecue at the waterpark for employees and their families. We celebrate the growth in share price.”

Unlike with the stock exchange at large companies, an added benefit is that when employees sell their shares back to the company, the proceeds stay in Northern California.

2018 – North State Grocery acquires three additional stores bringing the current total to 22.

has been the produce manager at her store since 2018 when her store was acquired by North State Grocery.

North State Grocery also offers a 401k plan for employees who have been with the company for longer than a year. They also prefer to promote from within, offering training and career development opportunities.

“What gets us excited is growing our people,” says LaClerc. “This means expanding their capacities to help them achieve their goals. Grow ourselves, grow our company, grow our ESOP shares.”

After 60 years in business this philosophy has been the foundation of their continued success. ■

“I’m convinced all our little efforts added up to the big numbers on our ESOP statements,” says Christina Russell, who

CAL I FO RNIA GRO CER | 21

Cheers for sixty years.

Congratulations to North State Grocery for 60 years in business.

As technology leaders in the industry, North State Grocery chose ECRS’ CATAPULT® for their POS system in 2020, which was successfully launched in all stores in just seven months.

This transformation focused on point of sale, loyalty, and selfcheckout. North State Grocery continues to explore new technologies that will improve the customer experience.

We are proud to work alongside this proven leader in the grocery retail industry and we look forward to working together to pave the way for future innovation.

Scan the code to learn more about why North State Grocery chose ECRS as their point of sale technology partner.

ECRS | www.ecrs.com | 800.211.1172 | 277 Howard Street • Boone, NC 28607

ALL IN THE FAMILY

Grocers Look to the Next Generation to Sustain a Meaningful Future

By Jessica Love In this issue, CGA talked to a few prominent family-owned grocery businesses in California to learn more about what it means to be a family business – and how they’re transitioning that model to a new generation. While they all bring their own unique history, processes, specialty, and strategy, they share a commitment to their foundational values, and take great pride in the role of family in their businesses.

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Location is ‘King’ for This Family-Owned Grocer For family-run Super King, slow and steady growth has been the key to success.

Starting with a 3,000 square-foot store with just two cash registers in Anaheim in 1993, today the supermarket chain operates eight locations across Los Angeles and Orange County, along with two warehouses.

After immigrating from Lebanon in the late 1980s, Peter and Mary Fermanian, along with Peter’s father, opened their first store.

They were later joined by Peter’s brother, Vache. Jake Fermanian told CGA that his parents, Peter and Mary, decided to pursue grocery because it was relatively recessionproof and there was a need for a store that offered good service, specialty meats, fresh produce, and international foods.

“My parents, my uncle and my grandfather worked around the clock to learn the ins and outs of the business, from working with vendors to serving customers,” Fermanian said. “I was a young kid – eight years old at the time, and I would help out on the weekends and after school.”

Today Fermanian is vice president of Super King but wears many hats on the job – as does the rest of the family ownership group. Fermanian does everything from purchasing, marketing, and finance to supply chain and operations.

“Our team is critical to our success and handles so much day to day, and we love

getting involved and supporting them whenever they need us,” he said.

For Super King, location has always been the biggest priority. The family developed a reputation early on for its clean stores, excellent service, and high-quality products at good value.

“Our mentality as a family was more conservative; location, location, location, and catering to the right demographics and density, rather than just scattering stores all over,” Fermanian said. “People really see us as a destination, an experience.”

Another unique aspect of Super King is its distribution model. With two warehouses and its own fleet of delivery trucks, Fermanian estimates about 80 percent of Super King’s supply chain is driven through its own warehouses. This allows the grocer to work directly with growers, packers, and CPGs, giving Super King a lot more control over quality and cost, which is passed along as savings on high-quality products to consumers.

Over the years Super King has taken on a more corporate structure because of its footprint, but the benefit of being family-owned remains. With the family ownership dynamic, the company can stay nimble, make quick decisions, and be reactive when necessary – all major

benefits in running a business. Fermanian said treating its entire team like family is also important, and results in higher loyalty and retention.

And while there is a large team in place that extends beyond family, there’s still room for family members to join the business – especially as Fermanian’s parents and uncle begin to step back and some of his cousins enter their career stage.

“Our family is motivated, and we want to see this business go to future generations,” Fermanian said. “With the right abilities, education, and interest in the business, we’d like to keep it as family-focused as possible while being an industry leader.”

As Fermanian looks to the future, he believes his family’s business will continue to thrive with an eye toward growth while still relying on the core model that’s brought them profitability.

Fermanian said Super King plans to add about one or two stores per year, depending on the opportunity.

“Sustaining our model while being innovative will be important,” Fermanian said. “The industry continues to evolve post-pandemic, and grocers must adapt to ever-changing consumer behavior. That’s what makes our business and industry fun and challenging, and it’s why we look forward to coming to work every day.”

Continued on page 26 ▶ CAL I FO RNIA GRO CER | 25

◀ Continued from page 25

Family is the Future for Community-Focused Foods Etc. When it comes to small, family-owned or independent grocery businesses, succession planning can be challenging. According to PricewaterhouseCooper’s 2021 U.S. Family Business Survey, just one-third of all family businesses have a thorough, documented succession plan in place.

The family atmosphere of Foods Etc. is particularly important because the store has about 95 employees total, and Darling said they’re all really like a family. With his daughter and son-in-law at the helm, he believes that same small town, family atmosphere will remain.

But for Dennis Darling, owner of IGA Foods/Foods Etc., the future is promising.

His daughter and son-in-law, Kori and Andrew Pierson, plan to step in to operate Darling’s grocery store in Clearlake when he and his wife, Ruth, retire in 2024.

Andrew Pierson has been working at Foods Etc. for about 10 years. Next year, he’ll assume the role of president and work alongside Darling for another year to ensure a smooth transition.

“So many independents don’t have a succession plan, and they either don’t have children who are interested in the company or don’t have children at all,” Darling told CGA in an interview. “So we feel very fortunate that we have these young, energetic people who are excited about taking over the business.”

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Meanwhile, Darling will step into the role of CGA Chair next year, where he is eager to focus his time. As a small business in California, regulations are a constant challenge, and Darling said CGA’s support has been instrumental for Foods Etc. Darling notes that although the grocery business is competitive, running a family business is incredibly rewarding.

“As I look at people working for big corporations, they’re not very happy,” he said. “The idea that we control our own future is a really positive thing. You are your own boss, and you’re able to make as much money as you’re willing to work for.”

The Darlings also have the joy of being a central part of their community, which is especially important in rural towns. They’ve found their niche as the community store, and they can offer better service and a cleaner environment than many chains.

“We’ve been working toward this for quite a long time, and we feel very fortunate that we do have good, strong people to pass it on to and that we’re able to keep our family atmosphere together for our employees,” Darling said.

99 Ranch: A Specialty Grocer to Serve Everyone With a nearly 40-year history and footprint of 63 stores spanning the U.S., 99 Ranch is in a strong position as a second-generation family-owned grocery business – thanks in large part to its reputation in its communities.

The grocer’s specialty is fresh, live seafood, meat and produce, as well as imported Asian goods. About 70% of the items in each store are imported products, said Chen. That makeup applies to each new store.

“When my father was looking into doing the grocery store, he wanted to make it as approachable as possible,” said Jonson Chen, chairman of 99 Ranch.

Chen works alongside his sister, who serves as CEO of the company. The siblings officially transitioned into their leadership roles about 10 years ago when they took over for their parents, Roger and Theresa.

That’s why Chen’s father chose the name 99 Ranch, which reflects the importance of numbers in the Chen family’s Taiwanese culture. Two nines paired together signals good fortune, and 99 signifies striving harder, without being a perfect 100. In Chinese, Chen said 99 means “everlasting.”

99 Ranch was founded in the Fountain Valley area of Orange County in 1984 when Chen’s parents recognized a need in their community for the familiar foods and products of Southeast Asia. Today, Chen said 99 Ranch still caters to the PanAsian populations in the locations they serve, however their mission remains to make their stores as accessible as possible to serve entire communities.

Growth has been steady for 99 Ranch, and Chen said that as the brand expands, the family is working hard to maintain the flexibility of their business. That means a commitment to its roots, while also embracing new technology and tools to stay current and make operations more efficient.

“Truthfully, we came from a ‘mom and pop’ business,” Chen said. “To get to this size requires a strong technological platform.”

He said the family makes the decisions for almost everything – but with that, business tends to spill over into life outside work.

“Every meal together, we’re talking about business,” Chen said. “The challenge can be that you live and breathe it, and

there’s never a moment that’s not about the family business. But I see it as natural because it is literally our welfare.”

The role of the family and the strength of the business in the community has also been important to bring them together and keep them grounded, especially with the uptick in crime towards AAPI communities in recent months.

“Though we are considered a large business, we are still very much tied in with our family and still very connected in our communities,” Chen said.

Chen and his sister each have young children, but he said passing 99 Ranch on to another generation is already on their minds, not only for their family’s livelihood, but for the communities they serve, too.

And although 99 Ranch is significantly larger than many other family-run grocery businesses, Chen said there’s still a camaraderie with similar grocers.

“In every region we do business in, we meet a lot of other independents that just have one or two stores,” he said. “But we all co-exist together, and we are still proud to be among the independents.”

Continued on page 28 ▶

CAL I FO RNIA GRO CER | 27

◀ Continued from page 27

How Raley’s Keeps Growing with Family-Run Businesses at its Core

For the leadership team at Raley’s, family values are a key ingredient to lasting growth.

A household name throughout Northern California, Raley’s is currently owned by Mike Teel, grandson of Tom Raley and third generation of the Raley family. Mike is also Chair of the Board of Directors and his wife, Julie Teel, sits on the board.

In addition, Julie leads the company’s philanthropic efforts as president of Raley’s Food for Families, created by Joyce Raley Teel and former Raley’s President Chuck Collings.

Now with nearly 235 stores spanning California, Arizona, Nevada, and New Mexico, the company is on a steady path of strategic growth that aligns with the values it was founded on.

To support the growing business, the family instituted a professional management team led by President & CEO Keith Knopf, who came to Raley’s with extensive background in e-commerce and retail before many grocery companies were investing in their digital operations.

“Our team is charged with the execution of strategy under direction from the Raley’s Board of Directors,” Knopf told CGA, noting that while the team focuses on purpose and community engagement, they’re also mindful of profitability and growth so the company can do more good in the community.

The role of an executive team is one the family took seriously, and it has paid off as Raley’s has continued a steady

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upward trajectory, becoming a leader in the industry and a competitor in a challenging market.

Among its core values, Raley’s is dedicated to creating a workplace that fosters growth and promotes from within. That includes some fourth-generation family members from the Raley/ Teel family tree who are working in stores and at the support center, as well as employees who have risen through the ranks from grocery baggers to corporate and C-suite team members.

Operating as a family-owned company also means Raley’s supports family businesses when it comes to the brands it carries and the distributors it works with. It’s a delicate act, as thoughtful relationships with family-owned producers have to be balanced with increasing sales to get better terms with larger brands and manage pricing for customers.

“We’re a big company, but when you compete against Walmart, Costco, Kroger, Albertsons and others, scale matters and purchasing power matters,” Knopf said.

Perhaps what stands out most about Raley’s as an independent, family-owned organization is its ability to expand through strategic, meaningful acquisitions.

Throughout its history, the company has been committed to acquiring other grocery businesses and banners that are also family-owned – like its well-known brands Nob Hill Foods and Bel Air. A couple of Raley’s recent acquisitions boosted its digital capabilities. These include direct-to-consumer subscription company FieldTRUE (its consumer brand is known as Farm Fresh to You), which

delivers fresh produce and grocery items to customers’ doorsteps, and FoodJets, which enhanced Raley’s e-commerce capabilities through grocery delivery.

With each acquisition, Raley’s has selected businesses that have the same values – quality products, exceptional customer service, and a focus on employees and their communities. In many cases the family members remain engaged – but the organizations have greater resources as a part of a larger company.

That model holds true even with its largest acquisition to date: Bashas’, a familyowned grocer that operates in Arizona, New Mexico, and four tribal nations.

Raley’s completed acquisition of the company last summer and has retained the names of all four formats operating under Bashas’. The company also kept the management team in place, some of whom are members of the Bashas’ family. Bashas’ continues to run its operation office out of Chandler, Arizona, and since the acquisition, Raley’s has made significant investments in salaries and wages.

Knopf said that level of care comes from the values of being family-owned, and making sure people are taken care of so these organizations have stability long into the future.

“The legacy of collaborating with other family-owned, independent businesses and retaining their brands and leadership is an important part of our growth strategy as we seek other like-minded businesses to grow with,” Knopf said. ■

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CAL I FO RNIA GRO CER | 29

Produced in partnership with the

By Tim Linden

California Agriculture Continues to Fight Challenges

For decades, California specialty crop farmers have been facing and surmounting challenges, which have allowed them to continue to grow about 40 percent of the fruits, vegetables, and nuts this country produces.

The list of historic challenges is long, including urbanization, regulation, and consolidation. Today, lack of water and labor, supply chain problems, and inflation have been added to the pile.

The state’s farmers have long taken great pride in being able to face the concerns and come out on the other end with a continually improving product that is profitable.

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That resolve is being challenged like never before. Clearly there are fewer growers and small family farms are fewer and farther between. Yet, the industry continues to be led by entrepreneurs who tend to be larger in scale than the generation before, even if it remains devoid of public and corporate ownership. Still, there are some who think the glory days are in the past…or at least will be very difficult to recreate.

“IT WASN’T LACK OF WATER THAT CAUSED US TO LOSE THOSE CROPS,” KAWAMURA SAID. “IT WAS HIGH COSTS THAT MADE THOSE CALIFORNIA CROPS NON-COMPETITIVE.”

Kawamura said farmers have survived, and sometimes thrived, by getting better and better at what they do. Increased yields have helped tremendously. But recently, lack of labor dissipated that advantage.

Orange County Produce invested in mechanical harvesters for its green bean crop in 2019, “which has allowed us to stay in the green bean business.” Five machines reduced the number of field workers needed by 50.

Kawamura said very few crops generate enough income to justify farming in Orange County. “The last three crops viable down here are avocados, strawberries, and bell peppers,” he said.

He said there are countries all over the world competing against the United States and winning market share through lower costs of production.

Kawamura said that fits into the company’s long standing strategy “to make sure it is sold before you grow it.”

The veteran farmer, and former “temporary” bureaucrat, believes technology can be a difference maker, if government doesn’t get in the way by regulating it to death. “Shame on us if new technology is held back by EPA or Cal/OSHA regulations.”

Paradoxically, Stephen Patricio, who founded Westside Produce almost 30 years ago in Firebaugh, said he has had two of the most profitable years of his career – although he is afraid that in terms of agriculture, “California is coming to the end of our story.”

A.G. Kawamura, who served as California Secretary of Agriculture for eight years under Gov. Arnold Schwarzenegger, owns Orange County Produce in Irvine, Calif., with his brother. They are third generation farmers and the fourth generation has joined the fold. “We are in a sea change,” he said, noting that major crop shifts are currently taking place in California.

Several decades ago, Kawamura noted that fresh asparagus was a California crop with tens of thousands of acres throughout the state, and there were close to 30,000 acres of table grapes in Coachella Valley alone.

Now there are only about 2,000 acres of table grapes in Coachella, and less than that many acres of asparagus in the entire state. “It wasn’t lack of water that caused us to lose those crops,” Kawamura said.

“It was high costs that made those California crops non-competitive.”

The company has also dedicated ground to the local food bank, which is purchasing its production with donations to help guarantee supplies for the disadvantaged communities it serves. Orange County Produce is providing about 40,000 pounds per week of cabbage, celery, and other fresh vegetable giving it a doable return on its investment.

“WE ARE IN A SEA CHANGE,” HE SAID, NOTING THAT MAJOR CROP SHIFTS ARE CURRENTLY TAKING PLACE IN CALIFORNIA. Orange County Produce is still a traditional grower-shipper and is surviving; however, the company is doing it by employing new strategies. Long a strawberry growershipper, the firm has become part of a larger operation, which has production from Baja California to the Watsonville district in Northern California. Kawamura said increased volume and year-round supply helps companies like his compete.

“The mid-sized regional producer can’t survive,” he added.

He added that it is precisely because it is so much harder to survive as a producer that he has had two great years back-to-back.

The challenges of producing in California have reduced his competition during the summer peak of his season, while the pandemic has created a great market for his signature crop, melons.

But before expressing a bit of pessimism about the future, Patricio did marvel at the resiliency of California farmers. “It’s never Continued on page 32 ▶

CAL I FO RNIA GRO CER | 31

◀ Continued from page 31

been easy, but the California farmer has always done too good a job navigating an incredibly difficult task. They have made it seem easy.”

Over the years, he said farmers have been able to overcome lots of roadblocks to continue to produce at a highly efficient level and remain profitable…for the most part. “But the pressures are getting too great and there are many new challenges out of our control.”

He said the current supply chain issues defy logic. “Even though we have product that we need to export, the shipping lines are shipping out empty containers to customers that can pay more. And in California, we are putting $10,000 worth of melons on a truck that is costing another $10,000 to send across country.”

He continued: “Fertilizer has gone up 300 percent and we can’t get it.”

He added that farmland prices have skyrocketed with investors paying top dollar and not even planning to farm.

“BUT I AM A GLASS-IS-HALFFULL-KIND-OF-GUY. I HAVE TO THINK THAT WE HAVE A FUTURE IN CONTINUING TO FARM THIS LAND AND I’M DOING EVERYTHING I CAN TO FIGURE THAT OUT.” Patricio is currently thriving largely because of his own business model. When he started Westside Produce Company 30 years ago, he established it as a distributor.

He owns no crops. Instead, his business strategy was to become the best processor/ distributor/shipper of fresh melons for those who did farm. That strategy has kept his company nimble.

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Patricio believes the volume of crops that are grown in California will continue to decrease, which might paint a bleak picture for the state’s agricultural community. “Oddly enough, we do have a lot of new young people getting into the business (including his own two sons),” he said. “What we are missing is the 35–50-year-olds. They didn’t come back to the farm. We have a lot of farmers in their 60s and 70s and young ones, but no one in the middle.”

If California does survive these current challenges, Patricio said it will be with technology. “It is the only way to exist,” he said.

The veteran agriculturalist takes a pragmatic view of the future. He said there is no problem relying on foreign production – until there is. He added that the war in Ukraine illustrates what can happen when the unforeseen does occur. The war has severely limited grain shipments from Ukraine and Russia causing a huge spike in feed grain prices worldwide. What happens, he wonders if California loses its agricultural production, and the country must rely on foreign producers for most of its food supply?

John D’Arrigo is president of D’Arrigo California, which has roots dating back more than a century. His grandfather and father ran the company before him, and the next generation is involved and working throughout the company.

D’Arrigo acknowledges the challenges facing California agriculture and knows they are difficult, “but I am a glass-is-halffull-kind-of-guy. I have to think that we have a future in continuing to farm this land and I’m doing everything I can to figure that out.”

The family-run company farms on thousands of acres and has thousands of employees and their dependents that rely on D’Arrigo maintaining a profitable business. About six or seven years ago, John D’Arrigo looked at the issues he was

confronting and determined that lack of labor would become the dominant issue of the day. This insight birthed the idea of launching a mechanical engineering division.

“IT’S NEVER BEEN EASY, BUT THE CALIFORNIA FARMER HAS ALWAYS DONE TOO GOOD A JOB NAVIGATING AN INCREDIBLY DIFFICULT TASK. THEY HAVE MADE IT SEEM EASY.” Today, D’Arrigo is at the forefront, bringing automation to the farm. The company has a mechanical romaine harvester and another one for broccoli. The machines are beyond the beta stage and are currently in the field being employed, albeit on a relatively small scale. Within the next three to five years, D’Arrigo expects the machines to be harvesting a significant portion of the company’s romaine and broccoli, and lighting the way for other innovative automation.

He says its more than just building a machine. The effort will help change the face of agriculture. Automation brings better jobs to the industry, which he believes will attract workers that can see a future in agriculture rather than just a starting point for a better career in another industry. D’Arrigo is constantly selling this concept to farming-related universities asking them to create technology-related curriculums to educate the agricultural workers of tomorrow.

He said that while it is true California has mounting challenges, it also has the best soil and climate in the world to grow the crops that he and his fellow agriculturalists produce. He knows solutions have to be found, but he is intent on making it work because the state has too many inherent advantages to not succeed. D’Arrigo is

planning for a bright California future for the farmers that are coming behind him. “We have to figure out how to keep California viable,” he said.

Bill Coombs has been running DLJ Produce, a Southern California produce distributor, for more than a quarter century. Like the others interviewed, he is very familiar with the issues that make California a difficult place to do business.

However, that is not where he affixes his gaze, nor is it where he expends his energy.

The company represents growers and commodities from all over California and the world. DLJ has a full line of domestic and imported fruits and vegetables, and a robust organic and conventional produce program. “The thing about the produce industry is that it operates at light speed,” Coombs said.

“You have to be willing to adjust and recognize the trends. We embraced organics early on and established our own ‘Eat Well’ organics brand.”

It is this ability to pivot that Coombs believes has allowed DLJ to thrive. He also notes that he was a retailer for many years, and he understands that side of the business. In fact, the DLJ executive team has decades of grower and retailer experience. “You have to understand the needs of both the growers and the retailers,” he said.

Coombs noted that DLJ’s philosophy is best illustrated by its table grape program.

With producers all over the world vying for the U.S. market and California’s substantial grape industry producing on all cylinders, the industry was in a bit of a crisis several years ago. Oversupply created a race for the bottom in terms of price. He recalls it was commonplace to see table grapes being sold at retail for 99 cents a pound. “At that price, growers are losing money and so are retailers.”

Coombs and DLJ devised a program to reverse the trend. He enlisted growers in California, Peru, Chile, and Mexico to

provide the company with year-round supplies of a top-quality product, picked and packed to DLJ’s specifications and marketed under a new brand. “Razzle” is the brand for red grapes; “Dazzle” is the name for green grapes; and “RazzleDazzle” is utilized in a bi-color pack. DLJ demanded a premium pack and asked retailers to pay a premium for it.

“We are now three years into the program and it is working better than I could have imagined,” he said. “Initially, we had trouble signing up growers but now they are knocking the doors down to pack for our label.”

At the retail end, DLJ concentrated on regional markets and independents throughout the country, who are as nimble and fast-reacting as the produce suppliers that service them. Over time, he said the RazzleDazzle brand took hold. “You can’t believe the number of letters we get from consumers talking about our brand,” he said. “And the produce people working in the stores love it too.”

Coombs believes this strategy can work for many other produce items and help California producers, and others around the globe, prosper. Quality does sell. ■

CAL I FO RNIA GRO CER | 33

The Razzle Dazzle grape program focuses on packing only the best quality grapes in the industry. The branded program creates a familiar, recognizable branding for consumers that would correlate to a premium eating experience with year round supply.

Year Round Availability Retailer Exclusive Branding Recognition Sustainability and Longevity For Both Retailers And Farmers.

(562) 392-8400 Sales@dljproduce.com

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CGA NEWS

GROCERS GATHER IN SACRAMENTO FOR GR DAY

Attorney General Candidate Anne Marie Schubert at Grocers Day

Remember the days when you could simply stroll into the Capitol in Sacramento, knock on your elected official’s office door, and meet with a legislator? In the last few years, the Association has had to become quite adaptive in planning the industry’s signature lobby day, Grocers Day at the Capitol.

In response to COVID-19 concerns, CGA held virtual lobby days in 2020 and 2021.

And this year, with the Capitol building under construction and the pandemic causing legislators to be largely unavailable for in-person meetings, the Association created a unique event that combined the chance to connect with invited legislators and informational briefings designed to give members a foundational understanding of the policy issues CGA is confronting.

The full line-up of speakers featured Asm. Phil Ting (D-San Francisco) and Republican caucus leader Asm. James Gallagher (R-Yuba City). These two prominent legislators shaded in valuable context for attendees from their political perspectives, explaining the worldviews and dynamics prevalent within the

California State Legislature. Additional themes covered during the event included PAGA reform, Cal/OSHA, and the CGA Issues PAC. After the event, CGA hosted its annual President’s Reception at the Citizen Hotel’s Scandal Bar. Capitol staffers and legislators mixed with CGA members, staff, and friends of the industry, offering the opportunity to connect in an informal setting. There, conversations started at Grocers Day carried into the night over small bites and mixed drinks.

Next up: The Association hosts a one-day series of store tours, pairing Armenian grocers in Southern California with members of the Legislature’s California Armenian Caucus. ■

KENDRA DOYEL, MICKIE SHARP-VILLANUEVA ENTER CGAEF HALL OF ACHIEVEMENT It was two-years in the making and not to be missed. In April, the muchloved CGA Educational Foundation (CGAEF) Hall of Achievement Dinner made an epic return in celebration of Kendra Doyel, Ralphs Grocery Company, and Mickie Sharp-Villanueva, the Performance Group.

The buzz in the room was tangible as California’s grocery community gathered in person to celebrate a pair of industry icons. Having initially been slated to be inducted in March 2020, entering the Hall for Kendra and Mickie felt long overdue – as did the opportunity to connect again in person as an industry.

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

Over the course of the night, the inductees were introduced by their loving families, who shared plenty of heartfelt remarks and garnered more than a few laughs. 2021 $10,000 Legends of the Industry scholarship recipient Michael Weir, Smart & Final, also shared the story of his career journey and the impact the Foundation’s work has had on his life and educational attainment.

In addition to inducting Kendra and Mickie, the Hall of Achievement Dinner featured live and silent auctions with the proceeds funding the CGAEF’s general work and scholarship awards for industry employees.

Headlined generously by Kendra Doyelhosted dinner parties, the auctions and

fund-a-need program raised nearly $95,000. Topping off the night, CGAEF Board of Trustees Chair Jacquie Slobom, Gelson’s Markets, unveiled the Jim & Judy Van Gorkom Heritage Scholarship in honor of the retiring trustee who served the Foundation for 11 years. To learn more about the CGA Educational Foundation’s work, visit cgaef.org. ■

CGA NEWS

NEW MEMBERS CGA welcomes the following members:

The Alixir Company 72 Windward Ave Venice, CA 90291-4102 Contact: Meg Simons, Sr. VP, Sales E-mail: meg@drinkbev.com Phone: (949) 637-7977 Website: drinkbev.com

Blueoco 2950 Prairie St SW Ste 100 Grandville, MI 49418 Contact: Monica Lee, Dir., Product Development E-mail: monica@blueoco.com Phone: (231) 250-2700 Website: blueoco.com

CH Energy Solutions 1036 W Clinton Ave Fresno, CA 93705-4415 Contact: Frank Henry, President E-mail: frank@chenergysolutions.com Phone: (559) 801-6518 Website: chenergysolutions.com

Del Monte Foods 205 N Wiget Ln Walnut Creek, CA 94598-2403 Contact: Bryan Shelton, Sr. Dir., Sales – West E-mail: bryan.shelton@delmonte.com Phone: (724) 612-5605 Website: delmontefoods.com

Dons Market PO Box 255 Santa Ysabel, CA 92070-0255 Contact: Scott Brown, General Manager Phone: (760) 765-3272 Website: donsmarketsantaysabel.com

IGA 8745 W Higgins Rd Ste 350 Chicago, IL 60631-2773 Contact: Gary Calistro, Consultant E-mail: gcalistro@igainc.com Phone: (773) 693-4520 Website: igainc.com

MADE in Central California 2331 Fresno St Fresno, CA 93721 Contact: Rebecca Sustaita, Food Expo Manager E-mail: rsustaita@fresnochamber.com Phone: (559) 495-4800 Website: madecentralca.com

The Natural Patch 9450 SW Gemini Dr Beaverton, OR 97008-7105 Contact: Gary Tramer, Co-Founder E-mail: gary@naturalpatch.com Phone: (314) 370-1407 Website: naturalpatch.com

Pacificflake.com Inc. 4020 F St Apt A Eureka, CA 95503-6006 Contact: Bryon Duty, Chief Executive Officer E-mail: bryon@pacificflake.com Phone: (760) 715-4801 Website: pacificflake.com

Porky Products, Inc. dba Global Protein Group 5230 Las Virgenes Rd Ste 275 Calabasas, CA 91302-3448 Contact: Steve Needham, VP, Trade Division E-mail: steve.needham@porky.com Phone: (818) 325-2575 Website: porky.com

Rotisol France, Inc. 1450 W 228th St Unit 10 Torrance, CA 90501 Contact: Pascal Fruge, US National Business Manager E-mail: pascal@rotisolusa.com Phone: (310) 489-3330 Website: rotisolusa.com

Scotts Valley Market 14 Victor Sq Scotts Valley, CA 95066-3565 Contact: Ron Clements, Owner E-mail: contactus@ scottsvalleymarket.com Phone: (831) 438-4324 Website: scottsvalleymarket.com

Webco Hawaii 2840 Mokumoa St Honolulu, HI 96819 Contact: Michael McDonald, Chief Executive Officer E-mail: mmcdonald@awdhi.com Phone: (808) 839-4551 Website: awdhi.com

CAL I FO RNIA GRO CER | 39

FAMILY OWNED & OPERATED SINCE 1950

SUMMER STARTS WITH

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

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

Moonshot Crackers aim to make a positive impact with climate-friendly snacking. By forging relationships with local farmers, Moonshot sources ingredients like organic artisan wheat and sunflower oil close to home.

The company also shortens its supply chain, milling flour only 2 miles from where the wheat is grown, and 85 miles away from the bakery that transforms its local ingredients into Moonshot snacks.

Wearable Weights Social media’s favorite bangle weights just got a face lift.

Bala’s wearable weights make it easy for users to add subtle resistance to their exercise routines. The chíc, bangle-style weights slip onto wrists or ankles for walks, runs, or other workouts and come in either 1lb or 2lb with seven attractive (mostly pastel) rotating color options. Bala recently updated bangles to be fully monochromatic compared to past models.

Omsom, a Vietnamese phrase meaning “noisy, rambunctious, riotous,” proudly brings bold Asian flavors to your fingertips. This “real deal” Asian cuisine company offers starters in the form of ready-to-use pouches that serve as the foundation of authentic Asian dishes. Each starter combines sauces, aromatics, seasonings, citruses, and oils that nod to decades-old traditional recipes. To use, just rip, pour, and heat up with your favorite proteins and vegetables.

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Good Looking Clean Cooking Caraway is on a mission to craft well-designed home goods that raise the standard of what customers cook with. The home cooking company removes toxic materials including PFAS, PTFE, PFOA, and other chemicals from its Instagram-able products. Its sleek pans are coated with ceramic non-stick as opposed to its teflon-coated competitors.

Caraway strives for a cleaner footprint, releasing up to 60 percent less CO2 into the environment during manufacturing and shipping orders in recycled packaging.

OUTSIDE THE BOX

Cosmic Cosmetics Affordable makeup brand Colourpop, known for its nostalgic collaborations, has once again partnered with Star Wars to create a new collection of cosmetics, this time inspired by the 1977 film Star Wars IV: A New Hope. The collection, comprised of an eyeshadow palette, lipstick, lip glosses, and eyeliners, features cosmic product names like “dark lord”, “supreme ruler” and “astromech” calling back to the beloved franchise.

Colorpop

Microwave Magic Anyday creates products that unleash the magic of the microwave to quickly and easily turn raw ingredients into nutritious home-cooked meals. Its dishes are built for cooking from scratch in the microwave. Made of frosted borosilicate glass, Anyday dishes can go from the microwave, to the table, to the dishwasher for maximum versatility. The dishes feature a silicone-rimmed lid to trap steam while cooking and come in a variety of sizes for ingredients of all kinds.

Anyday

People will do anything for their morning coffee these days… including forage?

Califia Farms cold brew mushroom coffee (that’s right, mushroom) is made from cold-brewed, 100-percent arabica coffee beans and fortified with organic extracts of cordyceps and Lion’s Mane mushrooms. The mushroom coffee claims to provide immune-boosting energy by blending the adaptogenic properties of fungi with the energizing effects of caffeine.

Volcon

epowersports

SILENT CYCLING

The Grunt electric motorcycle gives users an easy-to-operate ride for outdoor work or play. Unlike growling Harley Davidsons of the past, The Grunt has no gears, no clutch, no gas, and no noise and is approachable for both off-road-enthusiasts and novices alike. Its motor and 60-volt power plant are designed to tackle the toughest terrain and conditions. The bike also features swappable batteries for extra range on top of its 2.5 hour charge.

iStock

CAL I FO RNIA GRO CER | 43

REACH SHOPPERS WHEREVER THEY ARE AND

Shortcut their path to purchase.

CATALINA’S DIGITAL CIRCULAR PERSONALIZER delivers your best weekly deals, personalized to each shopper — driving more trips and sales.

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Scan the QR code to watch a demo or reach out to us at results@catalina.com to learn more!

Results are representative of multiple campaigns and are not a guarantee of future performance.

Brand X Marketing is a Multicultural Shopper-Marketing Agency influencing the consumers buying power.

Los Angeles • Irvine San Diego • Houston Dallas • Chicago New York • Miami

b ran d x m a rke ti n g .co m 44 | CAL I FOR N I A G R OC E R

Mariano Events is a nationwide experimental marketing agency specializing in executing high quality sampling events for innovative food, beverage, and wellness brands.

Our mission is to tell the story behind the brand.

without the eCompromise.

Level up with an eCommerce platform that scales to the size of

Store Demonstrations • Pop-Up Events • Influencer Marketing Social Media Management • Product Launches • Event Sponsorship Food & Beverage PR • Culinary Experiences

www.marianoevents.com

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

your grocery business.

Let’s talk. solutions@mercatus.com mercatus.com |1-877-525-5051

CONNECT TO LOCAL FITNESS-MINDED CONSUMERS AND BRING THEM TO YOUR STORES

A complete turnkey Commercial/Industrial refrigeration company providing design, installation, and service to the supermarket and cold storage industry.

WHAT WE OFFER:

Specializing in: • Refrigeration Sales, Installation, and Service • Refrigeration & HVAC Design and Engineering • CO2 and standard refrigeration systems • Refrigeration and HVAC Energy Management Systems • Case Setting and Walk-In Box Installations • Supermarkets, Pharmaceutical, and Cold Storage

Our technology will help you to increase product awareness and bring more customers to your doors.

CONTACT FIT FOR BUCKS:

1450 E. Walnut Ave. • Fullerton, CA 92831 (714) 949-1311 • Toll Free (833) 762-2524 Visit https://classicsocal.com for more information

(323) 920-0111 FITFORBUCKS.COM

AVAILABLE AT:

INFO@FITFORBUCKS.COM

EVERY STEP COUNTS TOWARDS REWARDS!

YOU ARE GOD’S GIFT. EVERY

SECONDS

CHILDREN ARE TRAFFICKED

IF YOU OR SOMEONE YOU KNOW NEEDS HELP CALL THE NATIONAL HUMAN TRAFFICKING HOTLINE: 1-888-373-7888 WWW.GOYACARES.COM

Cart Retrieval • Cart Repair • Cart Sales • Cart Transfers Electric Cart Repair • Backroom Rack/Cart Repairs Cart Containment & Locking Wheels Maintenance www.wcshoppingcart.com

209-886-1000 pleasantvalleyeggs.com

CAL I FO RNIA GRO CER | 47

Irresistible!

Bold & Unique Flavors TM

Jake, a fourth generation member of the jasper Family, is proud to continue the farming traditions passed down for over 70 years. Each of Jake's bold flavors are made from premium California almonds and dry roasted and seasoned in small batches to deliver exceptional quality.

TM

PROUDLY A DIVISION ON ODS OF JASPER SPECIALTY FOODS Specializing in the production of unique almond related food snacks, confections, and other treats for the gourmet food market.

FLAVORS: Barbecue | Bloody Mary | Mesquite Smoked Hatch Chile | Bleu Cheese & Cracked Pepper | Maple | Buffalo

CONTACT US: PO Box 311 Newman CA 95360 Tel: 209.862.3033 Toll Free: 800.255.1641 info@jasperspecialtyfoods.com www.jakesnutroasters.com

Find Jake’s on

Delicious Organic Immunity, Cognitive Function, Medicinal and Energy Products Functional Beverage Blends • Dentite Cavity Healing and Tooth Enamel Refurbishing

Phone: (323) 980-4950 | Fax: (323) 266-1406 Email: srodarte@rwzant.com | Website: www.rwzant.com

Providing tools to help you experience radiant health Visit our website at https://medicinal-foods.com to learn more All shipping done from California

The Perfect Travel Companion!

The Gamer Mini Classic is packed with 160 ready-to-play games, has a 1.8" full color display and is powered by 3 AAA batteries (not included). You can take this little guy anywhere – fits easily in your pocket, purse, bag or backpack!

MSRP:

1999 9.88"

3.5"

12.88" 2.38"

0.88"

For more information, go to our website: MyArcadeGaming.com or contact: Cindy Lawrick at CindyL@dreamgear.net or 310-222-5522 ext. 168.

707-795-3388 www.sonomasaladco.com

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

5.25"

My Family’s Seasonings creates savory, all natural seasonings for all occasions.

Our seasonings contain pure ingredients; no fillers, preservatives, or additives. They are available in the following varieties: • Prime Rib • Meatloaf Mix • Hamburger • Port • Poultry • Seafood • Steak

Foods • GM/HBC • Ethnic C: (310) 420-0530 E-Mail: freddiesale@msn.com Serving the West • Midwest

• All Natural Ingredients • No artificial flavors, colors or preservatives • Gluten Free (except Meatloaf mix, made in a dedicated facility) • Resealable pouches • Two year shelf life • Kitchen tested family recipes & cooking suggestions on each package

Committed to Sales & Merchandising Since 1974 Fredrick White Vice President

Complete POS Solutions POS Cash Discount Program Security Camera Systems Payment Processing & Scales

Kassumay LLC 43 Arlington Ave, Warren, RI 02885 4016549443 hello@kassumayllc.com

CAL I FO RNIA GRO CER | 49

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.

cagrocers.com

A DVERTISER IND EX PAGE IFC

COMPANY

PHONE

Albertsons, LLC

(925) 467-3000 (323) 837-0888

36

Aramco Imports Inc.

44

Brand X Marketing & Sales Solutions

1

C&S Wholesale Grocers

EMAIL

WEBSITE albertsons.com aramcoimports.com brandxmarketing.com

(916) 373-4396

cswg.com

44

Catalina

results@catalina.com

catalina.com

29

CCR

(800) 600-8060

service@ccrmeq.com

ccrmeq.com

BC

Certified Federal Credit Union

(909) 261-4065

dsimpson@certifiedfed.com

certifiedfed.com

13

CGAEF

(916) 448-3545

foundation@cagrocers.com

cgaef.org

16

CGA Strategic Conference

(800) 794-3545

cgastrategicconference.com

47

Classic Refrigeration SoCal

(833) 762-2524

classicsocal.com

45

Crystal Creamery

35

DLJ Produce

(562) 392-8400

23

ECRS

(800) 211-1172

46

Eggland’s Best

47

Fit for Bucks

40

Fowler Packaging

48

Gensa Group

47

Goya

Sales@dljproduce.com

dljproduce.com ecrs.com

info@fitforbucks.com

fitforbucks.com gensagroup.com

29

House of Dorchester

(424) 382-6857

Jennifer.Moxham@charbonnel.co.uk

houseofdorchester.com

48

Ivar’s Display

(800) 416-4827

info@ivarsdisplay.com

ivarsdisplay.com

48

Jasper Specialty Foods

(800) 255-1641

info@jasperspecialtyfoods.com

jasperspecialtyfoods.com

49

JE Sun Marketing

(310) 420-0530

freddiesale@msn.com

49

Kassumay LLC

(401) 654-9443

hello@kassumayllc.com

22

Kimberly-Clark Corp.

(847) 781-3730

49

L C Business Systems Corps.

(408) 293-2728

49

Lone Peak Labeling Systems

37

M2 Farms, LLC

46

Mariano Events

kcc.com info@lcbusinesssystems.com

lcbusinesssystems.com lonepeak.com

(916) 572-4302

m2farms.com marianoevents.com

48

Medicinal Foods

46

Mercatus

(877) 525-5051

solutions@mercatus.com

mercatus.com

medicinal-foods.com

48

Murchison & Cumming LLP

(213) 630-1089

ggruppie@murchisonlaw.com

murchisonlaw.com

(310) 222-5522 x168 CindyL@dreamgear.net

48

My Arcade

49

My Family’s Seasonings, LLC

IBC

Nestlé Purina PetCare

(314) 982-1000

36

North Coast

(707) 823-5313 (209) 254-2206

7

NuCal Foods

40

OK produce

4

PepsiCo

joe.toscano@nestle.purina.com

MyArcadeGaming.com purina.com northcoast.organic

custsvc@nucalfoods.com

(949) 330-5804

nucalfoods.com pepsico.com

47

Pleasant Valley Farms

(209) 886-1000

48

R. W. Zant Co.

(323) 980-4950

srodarte@rwzant.com

rwzant.com

pleasantvalleyeggs.com

14

RMS

(818) 817-6712

mdodson@retailms.net

retailsolutionshq.com

41

S&L Food Sales

48

Sonoma Salad Co.

(707) 795-3388

sonomasaladco.com

34

UNFI

(323) 264-5200

unfi.com

47

West Coast Shopping Cart Retrieval

wcshoppingcart.com

CAL I FO RNIA GRO CER | 51

MOMMY BLOGGER

Showing Up to Save Our Community K I M B ER LY R A E M I L L ER WR IT E R

Independent businesses give our communities a sense of place My community is changing. Housing prices are burgeoning on the absurd. There are more drugstores and banks now than we could ever need or want. And the small shops that make up the backbone of our neighborhood are struggling. Many of the stores that made it through the most dramatic days of the pandemic are now closing due to staff shortages, the high cost of upkeep, or supply chain issues.

The small family grocer near the middle school that the kids walk to for snacks, the Italian grocer that sells homemade pasta and seems to have an endless supply of fresh nougat, the local shop that sells produce from the farm down the block from my house – these aren’t just places we stop to pick up apple juice and ground beef, these stores have been the backbone of our community for as long as I’ve lived here. They sponsor sports teams and school functions, keep the local food pantry stocked, join us for holiday services and offer their grandkids up as babysitters.

Shopping local has an intimacy; the people who own and work at these small, independent shops also live here. They get to know the community and its needs. When my husband mentioned to the owner of the

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

iStock

market down the road that he was originally from Tel Aviv, a few weeks later, we were met with a small stash of Israeli snacks in the specialty aisle. Do I need to buy Bamba and Bissli each week? No, but I do because I will always support the places that go that extra mile for my family.

miracles happen – businesses that closed only to be resurrected by the community.

A community made of people who donated their time and money to keep the small businesses that make up our town going.

Not just customers but investors, contractors, fellow business owners, and local politicians.

The shops and markets surrounding our area represent the communities and values of the people who live here. And like our community, they have weathered the last few years with uncertainty but a hopeful resolve to keep going. And when things are more uncertain than they are hopeful, I have seen

People remember the conversations at the butcher’s counter, the specialty orders, and impromptu produce-picking lessons.

We may be one of any number of customers you see each day, but those moments are special for us. And those moments are worth showing up. ■

PET SPECIALTY

SUPPLIER PERSPECTIVES

Turning Empathy into Action for Domestic Abuse Survivors with Pets Purina’s Purple Leash® Project

By Nina Leigh Krueger, President and CEO of Nestlé Purina PetCare For several years now, Purina’s purpose of enriching the lives of pets and the people who love them has been brought to life through our Purple Leash Project program, which is helping domestic violence shelters across the country become pet friendly. While we have always believed that pets and people are better together, it has never been truer than for victims of domestic abuse and their beloved pets. Not only does domestic abuse impact one-third of women and a quarter of men in this country, but for victims with pets, leaving is made even more difficult by the fact that only 15% of shelters allow pets.

We believe that we can help change that.

Perhaps like many of you, I hadn’t spent much time internalizing the issue of domestic violence before Purina started doing work in the space. And while I have been sheltered from the realities of abuse in many ways throughout my life, the more I’ve learned, the more I’ve realized that domestic abuse is far too often a story that isn’t told. That is all the more reason why lending our voices and brands to shine a light on this issue through the Purple Leash Project has been so inspiring to me, and I’ve been humbled by the willingness of our retail partners to support this work.

Together, we are making a difference.

What started nearly a decade ago as a phone call to see how Purina could help a single domestic violence shelter become pet friendly has evolved into a mission to change

the narrative and the domestic violence survivor services landscape altogether at a national scale. From getting hands-on at shelters to make pet-friendly improvements through associate volunteer days to lobbying for federal support for survivors with pets in Washington, D.C., Purina is committed to doing more than writing checks to make a difference.

We’re putting in work to make real change.

And because of your support, and the support of our brands, we’ve helped 30 domestic violence shelters become pet friendly and donated more than $1 million to the Purple Leash Project fund since creating the Purple Leash Project with our nonprofit partner, RedRover, in 2019.

More survivors and pets are safe today because of this work. This program is saving lives.

The Purple Leash Project is inspiring pet owners to get involved and join us on this mission. In fact, in addition to the funding Purina provides,

consumers have donated more than $400,000 to the Purple Leash Project so far.

But there is more work to do.

There are more doors to open for survivors of domestic violence with pets, so they can escape abuse and heal together. It is only through the support and advocacy of many that we will continue to lead this charge and protect the bond between survivors and their beloved pets.

To our partners who have embraced the Purple Leash Project, thank you.

And to those who are considering it, please don’t hesitate to reach out to your Purina sales rep to find out how you can support this initiative during key periods throughout the year with merch programs designed to drive attention and awareness of this issue and give your customers a way to get involved by donating and purchasing specially marked Purina products.

Purina trademarks are owned by Société des Produits Nestlé S.A. Any other marks are property of their respective owners.

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cagrocers.com

Thank You! Together we reached a new milestone!

$800

Million in Assets!

Certified Federal C R E D I T U N I O N