California Grocer, Issue 3, 2021

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California

The Power of Grit

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Finding Balance and Leading to Serve

PAGE 32 2021, ISSUE 3

CALIFORNIA GROCERS ASSOCIATION


connecting growers to retailers


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SUPPLIER PERSPECTIVES

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support, therapy or companion dogs. Like service dogs for the blind, deaf and physically disabled, PTSD service dogs for veterans must be specifically trained to help their handler perform tasks they cannot otherwise perform on their own. The training process can take from one to two and a half years to learn to perform tasks such as: • Placing body weight on the veteran to promote a sense of calm during panic attacks • Waking the veteran from upsetting dreams or night terrors • Reminding the veteran to take medications • Alerting the veteran when someone is approaching from behind

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CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS Independent Operators Committee Chair DIRECTORS

Second Vice Chair Dennis Darling Foods Etc.

First Vice Chair Renee Amen Super A Foods, Inc.

Treasurer Lynn Melillo Bristol Farms

Denny Belcastro Kimberly-Clark Corporation

Steve Dietz United Natural Foods, Inc.

Michel LeClerc North State Grocery Co.

Saj Khan Nugget Markets

Joe Mueller Kellogg Company

Greg Sheldon Anheuser-Busch InBev

Tyler Kidd Mar-Val Food Stores, Inc.

Ken Mueller Raley’s

Scott Silverman KeHE Distributors, LLC

Nancy Krystal Jelly Belly Candy Co.

Bethany Pautsch Tyson Foods, Inc.

Rich Tovatt Smart & Final Stores

Hillen Lee Procter & Gamble

Subriana Pierce Navigator Sales and Marketing

Diane Snyder Whole Foods Market – Southern Pacific Region

Chris Podesto Food 4 Less (Stockton)/ Rancho San Miguel Markets

Josh Southerland Reyes Coca-Cola Bottling LLC

Mike Ridenour The Kraft Heinz Company

Rick Stewart Susanville Supermarket IGA

Jaclyn Rosenberg Nielsen

Joe Toscano Nestlé Purina PetCare

Jeff Schmiege Unilever

Richard Wardwell Superior Grocers

Jeff Severns PepsiCo Beverages North America

Karl Wissmann C & K Market, Inc.

Elliott Stone Mollie Stone’s Markets Jeanne-ette Boshoff Molson Coors Beverage Company Lori Brown Post Consumer Brands Elaina Budge Costco Wholesale (Bay Area) Pamela Burke Grocery Outlet, Inc. Willie Crocker Bimbo Bakeries USA Jake Fermanian Super King Markets Damon Franzia Classic Wines of California 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 Marketing & Business Development Doug Scholz Vice President Government Relations Kelly Ash Senior Director Events & Sponsorship Beth Wright Senior Director Communications Nate Rose

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Secretary Hal Levitt The Save Mart Companies

Chair Hee-Sook Nelson Gelson’s Markets

John Mastropaolo Chobani, Inc. Jonathan Mayes Albertsons, LLC Kelli McGannon The Kroger Company Mark McLean CROSSMARK Doug Minor Numero Uno Market, Inc. David Moore E. & J. Gallo Winery

Director State Government Relations Leticia Garcia Director Local Government Relations Tim James Director CGA Educational Foundation Brianne Page Director Administration & Human Resources Jennifer Gold Controller Gary Brewer

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 For association members, subscription is included in membership dues. Subscription rate for non-members is $100. © 2021 California Grocers Association

Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com For advertising information contact: Maria Tillman mtillman@cagrocers.com


CONTENTS | ISSUE 3

FEATURES COLUMNS President’s Message How We Can Move the Industry Forward Hand-in-Hand. . . . . . . . . . . . . . . . . 7

18 How to Navigate Multiple Generations in Your Stores and in Your Workplace Mastering generational preferences, whether in the form of marketing messages or workplace incentives, is more necessary than ever for grocery industry leaders.

Chair’s Message CGA Leadership Summit 2021. . . . . . . . . . . 8 Viewpoint The Death of the Conventional Supermarket. . . . . . . . . . . . . . 10 Capitol Insider Advocacy ’s New Normal Will Outlast the Pandemic. . . . . . . . . . . . . . . . . . . 13 Washington Report Independents in California are a Powerful Economic Engine.. . . . . . . . . . . . . 14 Inside the Beltway The Return of Regulatory Risk. . . . . . . . . . 16 Mommy Blogger Another Year of Lunch Box Blues.. . . . . . . 52

24 The Power of Grit How grit can take us beyond the grind and towards purpose.

DEPARTMENTS Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 40 15 Minutes With Lenny Mendonca. . . . . . . . . . . . . . . . . . . . . 42 Index to Advertisers. . . . . . . . . . . . . . . . . . . 49

32 Finding Balance and Leading to Serve CGA Educational Foundation Legends of the Industry scholarship recipient Michael Weir talks education, family, and growing his career at Smart & Final.

CAL I FO RNIA GRO CER | 5


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PRESIDENT’S MESSAGE

How We Can Move the Industry Forward Hand-in-Hand RO N F O N G PR ES IDEN T AN D CEO CALIFOR N IA GR OCER S AS SO CIATIO N

Inside the pages of this California Grocer issue you’ll find two seemingly opposite values that I would summarize as grit and empathy. In some forms, imploring someone to practice grit can feel similar to encouraging someone to push through a challenge despite the burden being shouldered. At the same time, you might visualize empathy as the proverbial hand on the shoulder, emoting understanding or a softer form of encouragement. Despite the apparent juxtaposition, these two characteristics round us out as humans and business leaders and must be deployed through a balanced approach. They are also essential to working towards an improved future, or a vision of how your life, your company, or the world might be. These two concepts also embody the theme of this year’s CGA Strategic Conference. Dozens of hours go into planning each year’s Strategic Conference. There are committee meetings, brainstorming sessions with the committee chair and board chair, and dozens of hours spent organizing pre-scheduled business meetings. It’s a major endeavor for the entire Association staff, board, and, I would say, California’s grocery community.

The first step is to create the conference theme. For 2021, after much deliberation, we landed on the theme, “Emerging Better Together.” Our industry has never been stronger, nor more united. The trials and tribulations stemming from the pandemic required us to sync up like never before. There were supply chain challenges to navigate, societal changes to understand, and plenty of political battles to fight. And therein lies the opportunity we have before us: the chance to process what we’ve learned and generate new insights to drive the grocery community forward in greater strength and purpose. The pages that follow and the Strategic Conference itself are a great first step. CGA Board Chair Hee-Sook Nelson examines what we learned from the CGA Leadership Summit in Santa Barbara. NGA President Greg Ferraro shares new data on the importance of independent grocers (I couldn’t agree more!). Kevin Coupe, as always, seeks to push the industry to think bigger and move faster.

It’s fantastic to have Grocery Dive’s Jessica Dumont back writing for the magazine. Her feature dives into the conference theme through the lens of “Opening Experience” speaker Bruce Kirkby. After summiting mountains, navigating wild rivers, and traversing wild lands of all kinds, Bruce identifies how we can move beyond the grind, finding grit, resiliency, and purpose in our everyday lives and work. Moving on to empathy, Independent Operators Symposium speaker Cam Marston returns to go further into his theory of generational collaboration in the workplace and between businesses and customers. Finally, there is our CGA Educational Foundation Legends of the Industry Scholarship recipient, Michael Weir, who embodies both the grit and empathy we’re discussing as he works full-time at Smart & Final, is a full-time undergraduate student, and family man. Whether it’s the relationship between suppliers and retailers, businesses to employees, Association to industry, or even people to people, the last 18 months have changed the way we see the world. I’m excited to see how the industry emerges from these experiences truly better together. ■

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CHAIR’S MESSAGE

CGA Leadership Summit 2021

H EE-S O O K N EL S O N G ELS ON’ S MAR K E TS

The economy, political environment, and evolving society will shape how the industry interacts with shoppers, elected officials, and our employees. At the end of July, industry leaders gathered in Santa Barbara, my old stomping grounds (go Gauchos!), for the CGA Leadership Summit. Over the course of two days, economists, political experts, former elected officials, and Gov. Gavin Newsom addressed attendees as the Association worked to craft its next five-year strategic vision. The past vision could be broken down into three buckets: expanding our grocery industry’s reach and influence, making our grocery community more inclusive, and creating new products and offerings for CGA members. By all metrics, the Association achieved its goals, and it’s from these strategic successes, our grocery community can now look to reach even greater heights. So, where do we begin? If you’re reading this column at CGA Strategic Conference, then the name Chris Thornberg might sound familiar. Thornberg is a professor at UC Riverside and the co-founder of Beacon Economics. During his presentation to Summit attendees, he shared many data points showing the state and country’s economic

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trajectory. Mainly, he believes the economy has already recovered and that the narrative of a sluggish economy is inaccurate.

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While these thoughts set the big picture, the Beacon Economics co-founder also offered some actionable insights concerning the industry’s workforce. Like many of you, I know all too well what a challenge hiring is right now. Thornberg states, there are simply more jobs than workers to fill them, and a lack of housing. We need to adjust to the demographic reality of our state’s workforce.

His advice is to focus on automation and methods to lure Baby Boomer retirees back into the industry. Additionally, we should push elected officials to offer child care solutions that better solve for the issues working mothers face. To understand how these ideas can filter into CGA’s work, we should consider the Association’s role in advocating for working parents, who also happen to be some of our best customers. During the pandemic, women have been dropping out of the workforce at alarming rates. It’s become so bad some have taken to calling it a “she-cession.” Fewer women in the workplace harm the industry’s ability to build out well-rounded teams that successfully connect with our customers. It also slows the momentum the CGA Board of Directors has established on fostering greater diversity, equity, inclusion, and belonging within our grocery community. Throughout the two days in Santa Barbara, speakers encouraged industry leaders to embrace the societal causes of our time. In a progressive state, business groups are commonly seen as only playing defense and saying “no” to the majority’s political priorities.


CHAIR’S MESSAGE

“By all metrics, the Association achieved its goals, and it’s from these strategic successes, our grocery community can now look to reach even greater heights. So, where do we begin?”

Speaker John Myers, the Sacramento Bureau Chief at the Los Angeles Times, focused on this concept. The veteran Capitol journalist explained that reporters are looking for interesting or counterintuitive angles for their stories. Business groups are often tuned out because they are not seen as being collaborative. Therefore, he advised the industry to seek common ground with elected officials and more nuanced policy positions. The Myers viewpoint fits nicely with one of the Summit’s most popular speakers: Mike Madrid. Having worked on many high-profile political campaigns, the political consultant shared the framework he has developed to understand the current American political landscape.

According to Madrid, change is accelerating, and partisanship is worse than at any time since the Civil War. Populist dynamics are dominant in both the right and left. Unsurprisingly, California inhabits the left side of his political grid, meaning progressives. Madrid recommends the grocery community work to find collaboration points concerning equity – think about the right to access fresh food. The last 18 months have been extremely difficult politically. Hazard pay, for example, swept through cities across the state’s metropolitan hubs faster and with less conversation than we’ve ever seen during any policy fight. The truth isn’t always pretty. The work isn’t always easy. But, like running stores, we know positive results stem from identifying the issues at hand and working together towards strategic solutions. ■

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VIEWPOINT

The Death Of The Conventional Supermarket K EV I N CO U PE F OUN DE R , MOR N IN GN E WS BEAT.CO M

Are we living out, with apologies to Charles Dickens, a Tale of Two Industries? Is this the best of times, or the beginning of the worst of times? I’d argue that the answer to all of these questions is the same. Yes. I am persuaded in this belief by Scott Moses, the managing director and head of grocery, pharmacy and restaurants at PJ Solomon, who recently joined me on MorningNewsBeat for an extended conversation about the economic and competitive state of the industry. There has been a sense over the past year that, as consumers found the supermarket industry to be essential during the pandemic, that this is a perception that will persist and a reality that will provide the business enormous momentum going forward. It is hard to know how the resurgence of the coronavirus and the emerging threat of the Delta Variant will impact the industry; as I write this, vaccinations are increasing (though too few people still are fully vaccinated) and there is an ongoing debate about mask and vaccination mandates. Lockdowns seem not to be on the table right now, thank goodness.

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Scott’s position is that there are two different industries – one dominated by Amazon, Walmart, Target, Costco, and Aldi, as well as Dollar General and Family Dollar, which are engaged in almost unprecedented expansion efforts, and another one that includes almost everyone else, most (though not all) of which are at a competitive disadvantage because of simple economics. He’s done a lot of research in this area, and here is the number that most concerns him – between 2010 and 2020, the national supermarket industry lost some 900 conventional stores, a drop of about three percent. Compare that to “discount supermarkets” (up by more than 1,500 units, or 61 percent), dollar stores (up a whopping 12,000 units, or 62 percent), and “natural/gourmet supermarkets,” up more than 500 units, or 133 percent). At the same time, Scott points out, Amazon has a valuation of more than one-and-a-half trillion dollars, way larger than (and this never ceases to amaze me) Walmart, Kroger, Albertsons, Ahold Delhaize, Costco, Target, CVS, Walgreens, and Dollar General. Combined. Which means that Amazon

has access to financial resources that most of these companies do not (it can borrow money at lower rates than most countries), which makes it more competitive in almost any category in which it chooses to compete. All of which paints a picture of an industry in which the conventional sector, in some sense, is dying. There is an argument to be had, of course, about whether all this pain has been wreaked upon the conventional supermarket sector, or whether it is self-inflicted. Once again, my response is: Yes. Both. A couple of things here. First, can we be clear about the definition of “conventional”? “Concerned with what is generally held to be acceptable at the expense of individuality.” Whoa. That definition reads like an enormous red flag. I think it is fair to suggest that for retailers to succeed in 2022 and beyond, the last thing they ought to think about is acceptability, and the first thing they ought to be focused on is individuality. Isn’t the very definition of competing doing what the other side either cannot do or will not do?


VIEWPOINT

“Can you honestly say that in your business, change is happening faster inside than outside?” iStock

It is, in fact, the Moneyball argument, as made by Oakland A’s general manager Billy Beane (Brad Pitt in the movie): “The problem we’re trying to solve is that there are rich teams, and there are poor teams. Then there’s 50 feet of crap. And then there’s us. It’s an unfair game.” Life is unfair, I always told my kids growing up, when they’d come to me with a complaint. Deal with it. Jack Welch, the legendary CEO of GE, put it this way: “If change is happening on the outside faster than on the inside, the end is in sight.” Question: Can you honestly say that in your business, change is happening faster inside than outside? If not, you may shortly have some explaining to do. (Maybe to your banker. Or your realtor.) The thing about change and innovation, though, is that they are not always achieved through some sort of expensive technology. Of course, tech certainly can be the engine of great change, but that’s not the only way to go. There’s that thing about individuality. Doing what the other side cannot do or will not do. Do you know what those things are? If the competition is offering a new checkout-free store, then your job is to have the best checkout people in town. If the

competition (not always a supermarket) is selling tuna fish sandwiches but finds itself questioned by the national media and activists about whether it is actually tuna, then your job is to have the best, freshest, most delicious tuna fish sandwiches in the market. (I’m biased on this one, believing in my heart that a great tuna melt is one of life’s great pleasures.) If the competition is antiseptic in its approach, then your job is make your store smell like fresh baked bread or chocolate chip cookies or whatever else will make folks hungry when they walk through the door. If most folks sell pre-packaged guacamole, then your job is to sell made-to-order guacamole so fresh and good that people will line up to buy it. These are only a few examples of how to compete in the current environment. There are many more. And it won’t be easy. Of course, the battles won’t only be played out on the competitive fields, but also, in all likelihood, in the court system and by both legislators and regulators. Scott Moses argues that this “Tale of Two Industries” narrative will need to be addressed with the Federal Trade Commission (FTC) and with national lawmakers highly focused on antitrust issues. The good news is that rigorous antitrust enforcement might mean that big tech companies like Amazon could be broken up, which would at least limit for some period of

time it ability to spend any amount wants on any amount it wants. (Though don’t delude yourself that this will blow up Amazon’s business model. Some would suggest that broken into two companies, Amazon actually becomes more valuable, not less so. But that’s a different conversation. Scott says that one thing the industry must be vigilant about it making sure that the FTC does not apply a re-energized opposition to mergers and acquisitions to the independent/regional/conventional sector, where retailers may need to find new partners and alliances if they are to do the things necessary to survive. (Scott would concede that this sounds like this is a selfserving position to take, since his business is mergers and acquisitions. But I’ve never met a finance guy with as much sincere concern about the long-term vitality of a sector as Scott has for the supermarket industry.) The Death of the Conventional Supermarket. This isn’t just what I hope was an attention-grabbing headline. It is a challenge to never be conventional in thinking, implementation or vision. It is an opportunity to think of your store, your employees and your customers in a far more individualistic framework, thinking in a granular way about being essential. And it is a call to vigilance on all fronts, in what can be an unfair world, to make sure change and innovation are happening more on the inside than the outside. ■

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CAPITOL INSIDER

advocacy’s new normal will outlast the pandemic 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

Advocacy’s New Normal Is Here to Stay. Brown

“Shaking hands and kissing babies” was the first description of politics and politicians many of us learned. It’s a people business built on relationships, and the Covid-19 pandemic has helped prove that in so many ways. The “building,” as we know it, has been closed for normal access for the last 18 months. Committee hearings that once drew hundreds of witnesses in person to testify, are now empty and rely on operators to usher in the next caller. And, while the public has been allowed to enter since early summer, the hallways are quiet and most office doors are locked, even when staff is present. Drop-in meetings and hallway discussions are a thing of the past. Videoconferences, email and text messaging have replaced this personal interaction. Many of us failed to appreciate the efficiency of conducting business while standing in the hallway of the third floor. The opportunity to see multiple staff in a short period of time to discuss a variety of issues was extraordinarily productive. Not to mention the ability to catch the latest rumor or witness another conversation happening that could directly impact an issue you were working on.

While videoconferencing cannot replace the in-person meetings, they have provided more structure to the day allowing, at times, a greater sense of accomplishment when the final “Leave Meeting” button is pushed. There are also some legislative members that seem to be a whole lot more open to meeting when they can do it remotely.

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While I may be in the minority on this, I believe the virtual element of today’s lobbying has greatly enhanced legislative days. I do miss the Ice Cream Social and helping lost industry members figure out the antiquated numbering system of the Capitol. However, those don’t even compare to the benefits we have seen from increased industry participation and the ability to hold multiple events throughout the legislative session.

This new hybrid of lobbying created by Covid is not likely to go away any time soon. Even if the Covid restrictions are lifted, its hard to see how the Legislature moves away from virtual testimony at its hearings. The public now has greater access and opportunity to participate in governing and turning that off would be a herculean effort. The Capitol is also changing. In October, the Governor, Lieutenant Governor and legislative offices will move out of the Capitol to their new temporary offices, located a half-block south of the building, behind the Legislative Office Building, better known as the LOB. These temporary accommodations will be in place for the next three to five years while the annex portion of the Capitol is torn down and rebuilt, and a new visitors center in built in the basement of the Capitol. Legislators will be shuttled between the new office building and the Capitol where most hearings and Floor Session will continue. The offices, described by disgruntled staff, are extremely small and not very private, meaning virtual meetings are likely to continue, especially for groups visiting the Capitol for lobby days. It looks like many of the lessons brought to the lobbying community by Covid are likely to part of our new normal for many years in the future. ■

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WASHINGTON REPORT

Independents in California are a Powerful Economic Engine 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

When talking about an independent community grocer, entrepreneurship is its foremost quality. Anyone familiar with the independent supermarket industry knows in their gut that local retailers are a driving force in the U.S. economy. Millions of people across the U.S. rely on their local independent for quality products at an affordable price. However, while we all know this to be true, it helps to have the data to back it up, whether it’s used to show lawmakers at the state and federal level the pivotal role independents have in the U.S. economy, or so that operators can use the data to adjust their business strategy. That is why NGA commissioned John Dunham & Associates to conduct an economic impact study to demonstrate the strength of independent operators in the grocery industry. The results were not surprising: Independents are at the heart of the U.S. economy, supporting more than 1 million jobs and generating billions in wages nationally. Updating the study NGA last conducted in 2012, the results showed independent grocers’ sales rose from $131 billion when the study was last conducted to $253.6 billion in 2020. This means that even in a world with more and more big-box stores, consumers still find value in their local independent grocery store.

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But what about in California, where there are 2,701 independent grocery stores? The study revealed that independent grocers: • Account of 1.2% of the state’s GDP

Some key takeaways from the study: • Overall, independent grocers contribute more than $255 billion to the economy, or about 1.2% of the U.S. GDP

• Generate $15.1 billion in wages • Are responsible for 274,600 of the Golden State’s total jobs • Have a total economic impact of 38.1 billion • Contribute $3.2 billion in federal tax and $3.1 billion in state tax revenues

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• Independents are responsible for 1.1 million jobs earning wages approaching $39 billion • They generate federal, state and local tax revenues surpassing $36 billion • Their sales account for 33% of total U.S. grocery sales, up from 25% a decade ago

Much like the data nationally, independent grocers in California are a driving force in the economy. Even with all the challenges faced during the Covid-19 pandemic – increased demand, government regulations and a labor shortage – independent grocers have persevered, innovating whenever necessary to continue serving their communities. The study also found e-commerce has driven sales as independent grocers have invested more in their online shopping platforms, which gave independents an edge during the pandemic of the past year-plus. Online grocery sales grew 54% in 2020 to nearly $96 billion, driving it to a 12% share of total U.S. e-commerce sales and 7.4% of all grocery sales (Insider Intelligence, emarketer.com/ content/2021-online-grocery-sales-willsurpass-100-billion)


WASHINGTON REPORT

“even in a world with more and more big-box stores, consumers still find value in their local independent grocery store.”

Between the farm and your store’s shelves is hard work. —

Sales growth in the fresh perimeter of grocery stores – including meat, baked goods and prepared foods – has driven greater demand for skilled workers such as butchers, bakers and chefs. As demand for these and other fresh products continues to be strong, opportunities abound for career pathways in independent grocery.

Day in and day out, in the midst of the challenges so many families are facing during this pandemic, our team members go above and beyond to help maintain a healthy and stable food supply for tens of millions of Americans. That’s why we’ve put in place a host of safeguards and measures at all our facilities to protect them. Now, as always, their safety is our top priority.

There’s also significant power behind grocery’s efforts to help the food insecure. In 2020, the Supplemental Nutrition Assistance Program, which helps lowincome families afford more healthy foods, was responsible for nearly 200,000 U.S. grocery industry jobs earning wages totaling more than $6.7 billion. Additionally, SNAP drove job growth of nearly 45,000 jobs in supporting industries, including agriculture, manufacturing, transportation and municipal services. SNAP also was responsible for 2020 federal tax receipts in excess of $1 billion, as well as state and local taxes topping $975 million. It’s further proof that independent community grocers are crucial to feeding the nation’s pocketbooks as well as its bellies. For more information on this study, visit grocersimpactamerica.com. ■

learn more at tysonfoods.com

Robbie

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INSIDE THE BELTWAY

The Return of R e g u l at o ry R i s k J EN N I F ER H ATC H ER S E N IOR V ICE PR E S IDE N T, GOVERNMENT AND PUBLIC AFFAIR S, FOOD MAR KETING INSTITUTE

Retailers need to be prepared for a renewed federal effort to regulate industry. When the Biden Administration released the Spring Regulatory Agenda back in June, the Acting Administrator of the Office of Information and Regulatory Affairs (OIRA), Sharon Block, included a statement that painted a stark contrast with how she believed the previous administration viewed regulation: The last four years offered a clear lesson on what happens when the Executive Branch fails to uphold its responsibility to protect the American people. Our first regulatory agenda demonstrates our commitment to reversing this trend and using every tool available to meet the challenges of the moment and support a robust and equitable economic recovery. One of former President Trump’s first actions on entering office was to issue an Executive Order calling for federal agencies to repeal two existing regulations for every new one proposed. He ultimately was not successful in achieving this goal – it is pretty challenging to remove a regulation once it is on the books – but it did signal the administration’s overall attitude: they were all about deregulation.

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After the furious pace of rulemaking during President Obama’s final years in office, this new approach felt like a welcome breather for businesses that were exhausted by compliance costs and regulatory risk. Regulation and enforcement didn’t stop, of course, but the pace slowed, and many industries felt like they had a more direct voice in helping to shape the rules that were promulgated. Combined with one of the strongest economies since the end of World War II, this deregulatory stance allowed many retailers to shift their focus away from the federal government and – often – towards state and local regulators who stepped in to fill the gap of the slower pace of rulemaking at the national level.

gridlock in Congress and the difficulty in getting anything done legislatively. The result of this standoff is a flood of new regulations that impact a broad swathe of food retail’s operations. In just the past few months, FMI and many of you, have provided comments on rulemakings in a host of areas including: • Payments (a Federal Reserve proposal to amend the regulation on debit card routing, driving competition); • Food Labeling (an FDA rule on a voluntary symbol depicting the nutrient claim “Healthy”); and • Pensions and Retirement (a PBGC rule on special financial assistance for troubled multiemployer pension plans).

But that brief respite is over.

There are many additional proposed regulations in the pipeline and retailers need to be prepared to respond to them in order to head off bad regulation that can be even more costly to the industry.

If that June release wasn’t a clear enough signal of the Biden Administration’s intentions, the months since have made one thing absolutely clear – robust regulation is back on the agenda and businesses need to be ready to respond on myriad fronts.

Regulators often don’t have much experience with food retail and how it operates, and they depend on good data and examples from retailers, wholesalers and suppliers to help them accurately gauge the impact of their proposals.

This difference in approach is partially the result of differences in political philosophy, but it is also a reflection of the

One of the best examples of the value of engagement dates back to the Obama Administration’s rulemaking on grinding


INSIDE THE BELTWAY

“robust regulation is back on the agenda and businesses need to be ready to respond on myriad fronts.” logs. Originally, USDA estimated that filling out the logs would take mere seconds, which was reflected in their estimate that the cost of the whole process would be negligible for the industry. FMI took several USDA officials to an actual store and walked them through the process – clocking their attempts to complete the grinding log; to their surprise filling out the logs actually took several minutes. This “discovery” was ultimately reflected in a more accurate cost estimate and an overall better rule. Engagement and collaboration with regulators clearly paid off in this example and it should guide

the way industry approaches working with government. Complaining about too much regulation is probably as old as regulation itself; considering how extensively the industry’s operations are subject to government oversight it is understandable that many retailers are frustrated with and dread the return of a kind of regulatory risk they simply did not face over the past four years. In the

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current national environment, engagement with the regulatory process is every bit as much an investment in the future of your business as any equipment purchase or new construction. So keep your comments and your stories coming! ■

M O S S A DA M S .CO M / RE TA IL

RESILIENCE RISES IN THE WEST Innovative solutions. Engaging collaboration. Forward-looking perspectives. It's how Moss Adams brings West to business so grocery companies can navigate change and seize emerging opportunity. Discover how our industry-focused services can help your business plan for what's next.

RISE WITH THE WEST. A C C O U N T I N G / C O N S U LT I N G / W E A LT H M A N A G E M E N T Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.

CAL I FO RNIA GRO CER | 17


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


How to Navigate

Multiple

Generations in Your Stores and in Your Workplace By Cam Marston Whether as customers or coworkers, generational clashes can hold your business back from reaching its potential. I’ve enjoyed a funny meme making its way through social media these days. It says to hear the music of Generation X’s youth all you need to do is go to the grocery store. It’s playing as the background music while you shop. And, as it turns out, rightfully so. Generation X is the generation spending the most on groceries today. Born between roughly 1965 and 1979, the Gen X’ers are the ones with kids who can never be sated. Per the Bureau of Labor Statistics, Gen X is spending approximately $10,000 per year on groceries. The Baby Boomers and Millennials are each spending about $8,000. I know what I’m talking about. My wife and I have four teenagers and more than “Good morning,” “I’m going out with friends,” and “Can I have some money?” we hear, “There’s nothing to eat. We have no food. When are you going to the grocery store again?” though I may be standing in the kitchen loaded with grocery bags fresh from the third or fourth store run of the week. With four teenagers, I wish my wife and I spent only $10,000 per year. For over 20 years my firm has studied generational and demographic trends in the workplace and marketplace. We help

our clients understand the constant changes of generational workplace and marketing preferences and our nation’s demographics. What one generation prefers in a marketing message may turn off another. Workplace incentives may appeal to one generation while disincentivizing another. It’s our job to highlight these differences for our customers across industries and work with them to solve the problems these differences create. “Fifty Years of Serving Customers” Vs. “Expect Stocked Shelves, Friendly Staff, and Competitive Prices Today, Tomorrow, and Onward”

A point of pride for any business that’s been around for a while is its longevity. We see and hear this across industry: “Your local plumber since 1980.” “Serving customers for over twenty years.” “Celebrating the beginning of our next fifty years serving our community.” Etc. Businesses of all sorts that make it over “the hump” of longevity – whatever that is – tend to promote themselves this way. Continued on page 20 ▶

CAL I FO RNIA GRO CER | 19


◀ Continued from page 19

oriented workers make themselves known this way, say the Baby Boomers. It was their ethos and, for many, remains their ethos.

What our research continues to reveal is that the generation spending the most on groceries today – Gen X – and the two generations younger than them – Millennials and Gen Z – don’t care and are not impressed by your longevity. It means very little. For various reasons (technology, parenting trends, online peer product reviews, etc.), they’ve been taught to pay attention to messages highlighting THEIR future, not YOUR background. To stimulate their attention, tell them how your grocery store is going to make their future better by shopping with you. Do not expect them to patronize you over your competitor because you’ve been in business for ten, twenty, or fifty years. They don’t care. While your longevity in business should be lauded, it won’t matter to your next generation of customer. So, as you craft your next series of TV commercials, online ads, or radio spots, focus on what you’re doing for your customers in their future. Will they stop what they’re doing when they hear/see this message and run to your store to spend gobs of money? No. But over time, with repetition, the message will make its way to forefront of their minds. They’ll hold an awareness of your brand and your stores in a new, positive light which, in time, will lead to new customers.

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“focus on what you’re doing for your customers in their future.”

Workplace Preferences and “kids these days” and “When I was your age…”

One of the areas of nearly predictable conflict in every workplace is around workplace preferences. What one generation tends to prefer in how work gets done can conflict with another’s preferences in how work gets done. A simple example will illustrate: The icons of the today’s workplace are the Baby Boomers. Born between 1946 and 1964, the Boomers long ago relinquished the title of the most populous generation in the workplace but they still hold an outsized share of workplace influence. The traditional Baby Boomer work ethic is summed up with a simple phrase: “Arrive early and stay late.” Committed, loyal, hard-working, career-

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

Younger generations pushed back. Arrival and departure time signify nothing about workplace commitment, work ethic, or career goals. What matters is how much work is accomplished between arrival and departure times, not what time you get there and what. And herein lies the conflict. Using their time-honored gauge, the Boomers express frustration at the apparent lack of work ethic of the next generation. The younger generations express frustration at the unwillingness of the Boomers to acknowledge the industrious nature of the younger generations during the workday, the younger generation’s use of technology to accomplish more in a given amount of time, and their proven results. The consequences of these different preferences clashing? Poor teamwork. Unspoken grievances. False assumptions about motivation and loyalty. The consequences aren’t good, with the ultimate ending being losing talented people who quit to find places workplaces where “they share my work ethic” or “where I’m better understood.” The solution? Becoming aware of your own workplace preferences, where they originate (which takes more space than this article allows), how they manifest in your workplace thoughts and behaviors, and how they can conflict with other generations’ workplace preferences. I repeatedly say in my workshops that the greatest benefit of this awareness is not becoming aware of your workplace colleague’s preferences but of your own. The reasoning? You can demand that your direct reports’ behaviors change but they’ll only do it because they have to. Or, you can voluntarily change your own behavior and expectations, letting your direct reports behavior remain the same – as long as the job is getting done in a timely way and to your satisfaction – and you’ll see their spirits rise and their teamwork increase.

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So, become aware of your workplace preferences. Become aware your teammates, your colleagues, and your direct reports. Where possible, let other’s preferences hold sway and learn to not let yours get in the way of their preferred work methods. Finally, The Gen X Leader

Not only are Gen X’ers your largest customer base, but they’re also likely your largest group of managers, supervisors, and leaders. Their management style leaves a lot to be desired. The “latch-key kid” has not converted very well into leaders. There are exceptions, of course, but if I had to place a bet, I’d say that about half of your turnover is driven by the Gen X management style.

The largest characteristic of the Gen X management style is a lack of thoughtful, interpersonal connection with teammates and direct reports. Theirs is an attitude of “we just work together; we don’t need to be friends.” They keep others in the workplace at an impersonal distance. The Millennials don’t like this. They want to know and feel known by their managers and supervisors. The Boomers don’t like it either. They feel teams should be full of interpersonal interactions, not just directives, assignments, and reporting in on tasks. To the Gen X managers: If you’re one of those who don’t want to invest time getting to know your direct reports, don’t want to

make meaningful connections with them, step out of management for the sake of your company and your team. Your team wants to know you and they want you to know them. It’s what leadership requires today and that means you. ■ Cam Marston is an author, researcher, and workshop leader focusing on notable trends shaping today’s workplace, workforce and marketplace. He has an old-school terrestrial radio show broadcast in his hometown of Mobile, Alabama where he interviews guests about the trends shaping their businesses. You can find episodes of the show at WhatsWorkingCam.com. Learn more about his offerings at CamMarston.com.

Congratulations

to North State Grocery’s 2021 scholarship recipients!

Jessica Jamerson

Shannon Jones

Felipe Reyes-Rivera

Aurora Ruscigno

CAL I FO RNIA GRO CER | 21


“The best thing about the future is that it comes one day at a time.”

– Abraham Lincoln

i

BRAVO to El Super’s 2021/2022 scholarship recipients for their infinite pursuit of academic excellence during a challenging year. ¡Aplaudimos y apoyamos sus esfuerzos!

Aide Aguirre

Alejandra Aguirre

Lorena Balsach-Cabrera

Lisset Cambray-Garcia

Zaira Cervantes

Emily Corona

Arianna Garcia

Andrea Gonzalez Zuno

Alex Gutierrez

Brenda Gutierrez

WIlliam Hook

Maria Lara

Andreas Lozano

Emiliano Lozano

Alicia Osorio Palacios

Alexander Perdomo

Zulema Reyes

Steven Rojas-Cornejo

Jasmin Samaniego-Sanchez

Carter Stoddard


Gelson’s

Congratulates

these outstanding CGAEF Scholarship recipients for their dedication to achievement.

2021 CGAEF SCHOLARSHIP RECIPIENTS Ruben Barajas Samuel Dull Austin Evey Nichole Gatten Sara Gibson Molly Gillmore Ashley Johnson Esmeralda Morales Daisy Perez Sylvie de Rouin Samantha Ruano Rudransh Saxena Brenton Smith Sianna Vega Christopher Wong

/ilovegelsons

@gelsonsmarkets

@gelsonsmarkets

/gelsonsmarkets


THE POWER OF GRIT:

How to Build Purpose in the Grocery Business

BY JESSICA LOVE DUMONT

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Few grocery industry executives are living life on the edge the way Bruce Kirkby is – think camel rides, alligators, mountain treks and more – but the principles Kirkby lives by can certainly be applied to any organization or industry to help build a more purpose-driven, resilient team. In his session at this year’s CGA Strategic Conference, Kirkby will address the concept of “grit” versus “grind” and how organizations can use purpose, practice and process to improve their performance. “Tough stuff happens to all of us, whether we choose to take on challenges or they get thrust on us, like the fires, like the pandemic,” Kirkby said in an interview with CGA. “We’re either going to grind against the challenge or we’re going to use grit as an opportunity to grow and become better than we were before.” With a society that venerates the “hustle culture,” grind is the way most people and organizations work today, which pushes most people to exhaustion. And while Kirkby said there is a time and place for the grind, it’s not a long-term success strategy. On the flip side is grit – which isn’t about grinding more. It’s an opportunity to cultivate growth, opportunity and to identify a true purpose. Building a Purpose-Driven Culture The work of a grocery retailer no doubt leads to a daily grind mentality. From crunching numbers and looking at margins to dealing with supply chain and stocking shelves,

it can be easy to get swallowed up in the day-to-day operations of business. But Kirkby suggests that grocery companies are also serving an extremely valuable purpose. At its most basic level, a grocery store is offering sustenance, life and health for its communities. “What we instinctively do is move toward grind,” Kirkby said. “So how do we set up the conditions and habits and rituals in our lives that will lead us toward grit instead?” There are three key components: • Develop a clear purpose – Why does our work matter? What do we care about? • Practice the important things – How do we address weakness? And what can we do each day to improve and grow our abilities? • Use process to keep up momentum – What are the small, important things we have to do every day? Continued on page 28 ▶

CAL I FO RNIA GRO CER | 25


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Kimberly-Clark’s Family Care brand strategies remain focused on Building Resilience at Retail

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CAL I FO RNIA GRO CER | 27


◀ Continued from page 25

The difference between grind and grit is using those three tools of purpose, practice and process to allow that natural grit,” Kirkby said. “If we put those into place, it will drive us to grit.” And while grinding may drive winning, it doesn’t create a collaborative process or foster an environment of value. Kirkby notes that on an individual level, people aren’t loved by family and friends because of winning and success, but because of a set of sensitivities and strengths and weaknesses that make someone unique. Translated to an organization, one with grit is one that shows purpose and instills joy into processes, rather than just operating to get things done.

needs, and stores throughout California including Gelson’s, Whole Foods and more provided pay increases, bonuses, and other benefits for their employees. As grocers emerge from the intensity of the last two years, they can take a moment to pause and evaluate how they want to operate moving forward.

Anyone who works in the grocery industry knows it’s an industry built on hard work, humility and service. Never was that tested more than during the Covid-19 pandemic and subsequent events over the last 18 months.

Employees across the industry stepped up to work long hours, provide extra cleaning and serve customers on the front lines of the pandemic. Grocers hired as many people as possible to support essential and ever-present

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

Like any new habit, philosophy or leadership style, it’s easy to learn something, apply it and then forget it later. So how can grocery organizations build a culture of grit that will last?

“Caring is contagious,” Kirkby said. “When we share our purpose, why it matters to us, that resonates with other people.”

“I’m sure there was a lot of grind during the pandemic, but I bet there was a lot of grit, too, with grocers realizing the importance of what they were doing,” Kirkby said.

For example, retailers large and small added or expanded curbside pickup services as customers drove years’ worth of growth in a matter of weeks. Other grocers added or upgraded store apps to make online shopping easier, and still others, like Albertsons, added contactless checkout methods. Southern California-based Barons Market reimagined its soup and salad bar with pre-made gourmet salad offerings and an employee to serve up the store’s beloved hot soups.

How to Keep Grit Going

Kirkby said for starters, there’s a powerful opportunity for purpose to come from the top. Once leaders live grit and show purpose themselves, it can cascade down through all levels of the organization.

Grit v. Grind and the Pandemic

To be sure, the way the grocery industry collectively stepped up to serve customers in uncertain times was a major demonstration of resilience, creativity and collaboration.

From pivoting operations to adding new offerings and services for customers, grocers’ commitment to being nimble, flexible and adaptable is a key demonstration of grit – and a prime opportunity to continue the momentum.

“Tough stuff happens to all of us, whether we choose to take on challenges or they get thrust on us, like the fires, like the pandemic.” “Coming out of the pandemic is an opportunity for reflection for all of us,” Kirkby said. “It was such a seismic shift that could alter our outlook and how we go about work.” With that in mind, Kirkby said that while our culture has created a generation of workforce that is focused on the grind, now there is an opportunity to shift toward a grit mindset, focusing on growth, possibility and opportunity.

It can be easy to get lost in the “forest of modernity” – emails, reports and bottom lines – and Kirkby said that this can cause leaders to lose sight of what’s important and how their organization can improve. Rather than focusing on the practice of what counts, companies let go of the essentials that make their stores successful in the long run. That’s why the simple act of sharing a purpose and showing some vulnerability is enough to bring some practice and process into an organization, he said. From there, it’s about staying the course. “We might not see results in the first day or the first week, but we’re going to stick with the plan,” Kirkby said. “Because over time that’s going to make a difference. With these processes we don’t see the results right away and it just takes a deep faith, and that comes down from the top.” Some grocery stores are well on their way to establishing this type of


“Caring is contagious,” Kirkby said. “When we share our purpose, why it matters to us, that resonates with other people.”

culture. Raley’s, for example, has an entire web page dedicated to sharing its higher purpose: Dedicated to changing the way the world eats, one plate at a time. The company further elaborates on how this purpose is carried out in its communities, among employees, in the environment and with its customers, and has recently expanded its executive team to build upon its purpose. With a vision in place, Kirkby said an organization can keep building and growing without having to try too hard. “Grit is like a fire. Once it’s going, it keeps going, but we’re often in that early stage where we’re trying to ignite it. But once we get these three things going together we build momentum, and it becomes how we live and do things.” ■

Here’s to a Bright Future! Congratulations to Our California Grocers Association 2021 Educational Foundation Scholarship Winners! Macie Dias Alexis Johnson Trinity Kirvida-McGowan Bryce Lackey Daksha Prasad Schuyler Becker Dajhanna Flores-Sanchez

Shreya Holikatti Brien Hosier Kendall Johnson Candace Karren Brayden Montgomery Gabrielle Montgomery Simrit Rai

Lindsay Sandy Kelsi Spencer Sydney Vallier Kylie Wornardt Jessica Seibold Veronika Watkins Young Suk Yoon

CAL I FO RNIA GRO CER | 29


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


2021 Scholarship Recipients!

Kenneth Chang

Nicole Chang

Natalie Chen

Adithi Desham

Alyssa Duque

Alyssa Fromelius

Jessica Gaitan

Jordan Gentry

Daisy Gomez

Susana Gomez

Kaili Fisher

Lara Kane

Kristin Landaverde

Justin Lee

Emma Leininger

Sara Long

Brayden Martinez

Emily McClelland

Esia Medrano

Kassandra Mendoza

Madeline Minutelli

Clara Montenegro DuBerke

Armaan Nangia

Logan Oberman

Colin Scales

Lindsay Scholbrock

Alyssa Silva

Daniel Ochoa Reyes

Nicholas Robertson

Melissa Sanchez

Jacqueline Taylor

Rebecca Taylor

Brianna Wolfe

Bryan Wolfe


Balance

FINDING

AND

to Serve

LEADING 32 | CAL I FOR N I A G R OC E R


BY GRACE BECKER

Between working full time, raising a family and getting his degree, Michael Weir found stability and a path to leadership. Not many of us have the capacity to balance all facets of our lives simultaneously and we’re often left choosing between passion, work, school and hobbies. Few of us are bold enough to juggle them all. That is, unless you are Michael Weir, a fulltime student at CSU Bakersfield, full-time Assistant Store Manager at Smart & Final, and recipient of the 2021 Legends of the Industry Scholarship. This $10,000 award, funded annually by the California Grocers Association Educational Foundation, honors those going above and beyond to earn an education while simultaneously pursuing a career in the grocery industry. If you ask him, Weir’s success is largely due to a combination of stellar time management skills and a cadre of mentors who inspired him to seek more from his career. A Bakersfield native, education was not a priority for Weir as a teenager who struggled through high school. Once graduation rolled around, he had no interest in pursuing higher education and went straight to work in retail. Weir’s first ever job was at a small independent grocery store in Bakersfield, Young’s Market. At that point, he did not see a future in grocery but enjoyed the independence of having a job. Weir learned the ins and outs of grocery at Young’s, assuming numerous positions in the store over eight years from bagging, to working the cash register or in the deli and even managing. While grinding through retail, Weir met his future wife, Amy, who inspired him to reach for more.

“I started to see 20 or 30 years down the line and without a college degree it did not look promising. We knew we’d eventually want kids. Neither one of my parents have a college degree and they have certainly struggled their whole lives to make ends meet. I don’t want to be in that position,” he said. He made the call to pursue a degree. A few months before Weir was set to attend CSU Bakersfield to begin his degree, Young’s Market went out of business and he lost his job. Luckily, just a month later in summer of 2012, Smart & Final opened down the street from his house and Weir applied. When he was hired to work in the receiving department at Smart & Final, he did not have a car and would wake up at 2 a.m. to budget enough time to walk or bike to his 5 a.m. shift. Weir found balance between working part-time at Smart & Final and going to school part-time, doing homework on days off. In 2014, Weir’s wife Amy became pregnant and he dropped out of school to prioritize his family’s future. With another mouth to feed, he took on a second job as a custodian for a property rental company and worked up to 65 hours a week. Weir knew aiming for an education would open the door to more opportunity for him and his family. After juggling two jobs, Weir was promoted to a full-time position at Smart & Final and was able to leave his custodial job. He spent the next year working full time to get his finances together. The Weir’s second baby came along in 2016. Continued on page 34 ▶

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◀ Continued from page 33

Finally, after a hiatus, Weir returned to school at a local community college, Taft College. There he absorbed as much information as possible and took any online class he could. Once he graduated from Taft in 2019, Weir moved on to CSU Bakersfield as a junior and transitioned to life as a full-time student to pursue a bachelor’s degree in business administration with a concentration in management. On top of working full time at Smart & Final, Weir was taking 12–15 units a semester at school. He has continued this schedule for the past three semesters and has 10 more classes to go until he completes his degree. “When school is in session, I’m booked seven days a week. There’s no wiggle room,” he said.

and the benefit of the work environment. In Weir’s program at CSU Bakersfield, a speaker visited to discuss servant leadership, which made it all click. “I finally had a name for what I was witnessing at work,” he said. “It’s about catering to employees’ needs to get the best out of them.” With two young kids and school to juggle, Weir’s top priority is work-life balance, something both Schiltz and Wood have always accommodated and encouraged. “If you are miserable in your personal life, you are going to bring it to work.” Schiltz and Wood’s approachability makes associates feel comfortable to come to them with questions. Their leadership style has inspired Weir’s.

“It’s about learning as much as you can and trying to recognize sales trends, seek information and try to educate yourself as best as you possibly can. Smart & Final really encourages that.” In his day-to-day life as an assistant manager, Weir maintains merchandising standards, handles crises and researches the latest information that will affect his store. Smart & Final fosters an environment of growth, asking questions and challenging employees to educate themselves. “It’s about learning as much as you can and trying to recognize sales trends, seek information and try to educate yourself as best as you possibly can. Smart & Final really encourages that.” Weir’s mentors include Steve Schiltz and Jim Wood, his store manager and district manager. “Once I started working for Schiltz and Wood regularly as a member of store management, I started to think more about a career instead of just trying to make money.” Both Schiltz and Wood follow the “servant leadership” philosophy, aiming to make employees’ lives easier both for their benefit

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

“Until I met them, I didn’t really have a leadership style,” he said What began as a way to make money for his family grew into a career after meeting Schiltz and Wood. Weir developed an interest in leadership studies, a topic he’s continued to study in school. Outside of work, his wife Amy has provided continuous support, allowing him to focus on his education during off hours. Weir is candid as he describes what it takes to be a full-time student and full-time assistant manager at Smart & Final. “I remember when Jacquie Slobom (CGAEF Chair) called me and asked how I manage to work full time and go to school and have a family in the middle of a pandemic, and I started laughing because I don’t think ‘manage’ is the right word,” he said. “It’s not an easy way to do it, but I want a great breadth of opportunities.” His secret? Good old-fashioned time management and a lot of caffeine.

“If you don’t have time management skills you will drown, which I learned the hard way,” he said. His success is a product of deliberate planning. At the beginning of each semester, Weir studies his class syllabus and plans months in advance. At the start of each week, he creates a schedule to stay on top of assignments. He leaves two to three hours a week for personal time to enjoy one of his many hobbies, whether it be chess, ice hockey, video games or cooking. Weir and Amy budget time to take the kids to hike, fish, and take road trips. “You have to make time for yourself and your family or you’ll go looney,” he said. The Legends of the Industry Scholarship takes a load off Weir’s mind. “Now that I’m a senior I can see the finish line and it means I’m almost there. It’s one less thing on my plate and it’s very much appreciated.” What Weir wants most out of his career is opportunity. Eventually, he may move up the corporate ladder within grocery, or if he’s dreaming big, open a bar with a friend. His degree will allow him options and flexibility that he may not have had otherwise. At the height of the pandemic, Weir worked 72-hour weeks and put all of his overtime pay into savings. Due to the many challenges the industry has faced during the pandemic from supply shortages to evolving masking regulations, life in grocery has changed a lot. Now, he takes his cue from corporate leadership and moves forward one day at a time. “You spend so much time running from one assignment to another or dealing with the kids or going to school or work and sometimes you think no one even notices what you’re going through. It’s nice to know that somebody noticed.” ■



We are committed to ending hunger in our communities and eliminating food waste in our company by 2025. Follow our journey at

TheKrogerCo.com and #


to our

CGAEF Scholarship Recipients Jackalyn Ballard Ericka Marie de Guzman Emily Duong Jaylene Harvey Austin Hong Nicholas Hong Faith Lee

Jordy Magallanes Jason Marshall Erin Miller Alexandria Morrell Chamine Tran Sofia Votava


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OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

iStock

EVERY COMPANY IS A MEDIA COMPANY

It’s become a common trope in the 21st century that everyone is in the content business. Your old high school flame’s awkward selfies now compete against Netflix for attention, which competes against Fortnite. Sports gambling companies, swimming in profits, are also joining the content wars. In January 2020 Penn National Gaming purchased a 36% stake in Barstool Sports. The Ringer, a popular sports and culture website and podcast company, has joined forces with Fan Duel. Content is still king, even in the casino business.

THE RETURN OF

Geof frey THE

iStock

G ira f f e

After going bankrupt in 2018, Toys “R” Us is back. The toy retailer has announced plans to open 400 storefronts inside Macy’s stores in 2022. This concept is known as a shop-ina-shop, and with nostalgia for the 1990s at an all-time high, there might just be plenty of Millennial parents who grew up visiting Toys “R” Us ready to share the experience with their children.

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

Korean Corn Dog Craze iStock

Korean corn dogs are the latest street food sweeping the United States. The South Korean delight ditches corn flour for a rice flour similar to what you’ll find in mochi ice creams. From there things can go all sorts of directions. Add powdered sugar? Sure. Mozzarella inside the corn dog? Why not? Call us suckers for that classic savory and sweet combination. If that’s wrong, who wants to be right?


OUTSIDE THE BOX

Pinterest Predicts iStock

NFT’s Go Mainstream

iStock

If you need more proof that Americans are doubling down on eating at home, consider the latest findings from social media company Pinterest. According to its latest trends research, the area of the home receiving the most makeovers is the kitchen. Think fancy pantries and lux cabinets. Retrofitted to be more aesthetically pleasing, Pinterest has taken to predicting “Shelfies,” or photos of well-adorned kitchen shelves are the new gallery wall.

BUY NOW

PAY LATER

iStock

The payments company Square acquired Afterpay earlier this summer. Buy Now Pay Later (BNPL) may seem like a foreign concept, or like a credit card, however, companies offering installment payments without interest for e-commerce goods is gathering steam. who are riskaverse and no fans of credit cards, have begun to use BNPL as a substitute for credit cards – instead connecting their debit cards to spread out purchases.

Allow these buzzwords to wash over you: defi tokens, DAO’s, low-fi crypto character graphics, the metaverse. These terms make up what is popularly referred to in the Twittersphere as “Web3.” The idea is the decentralized web is what comes after the mobile world we now inhabit. It’s a lot. But, if you have doubts about whether there are real business opportunities in the space, consider that Shopify recently announced it would help NFT creators build storefronts on its platform to connect directly with consumers. Just don’t Google “$200,000 NFT Rocks.”

NEW BRANDS TARGET OLYMPIC SPONSORSHIPS Among cultural observers there was considerable debate during the Olympics about whether Ralph Lauren was still the best brand to develop Team USA’s look. Some suggested a new company like Rowing iStock Blazers, who designed uniforms for El Salvador’s Olympic contingent, should pick up the mantle. It’s part of a larger trend recently covered in The New York Times as the competitors, themselves, turn away from traditional sponsors in favor of new brands, such as Tracksmith and Champion. The list also includes Simone Biles, who shunned Nike for the athleisure brand Athleta.

CAL I FO RNIA GRO CER | 41


NEED TO PURCHASE IMAGE 42 | CAL I FOR N I A G R OC E R


1 5 MINUTES WITH…

Lenny Mendonca enny Mendonca is the former chief economic and business advisor to Gov. Gavin Newsom and chair of the California High Speed Rail Authority. He is also owner of Half Moon Bay Brewing Company, managing partner of the Coastside News Group, and Senior Partner Emeritus at McKinsey & Co. In April of 2020 he resigned from his post with Gov. Gavin Newsom. Three months later, he penned an op-ed in Cal Matters where he openly shared his struggles with anxiety and depression. Lenny was a featured speaker at the recent 2021 CGA Leadership Summit in Santa Barbara, where he addressed attendees on mental health issues. Nate Rose: There seems to be a growing conversation occurring in the United States about mental health – whether its someone like Simone Biles or even a broader topic like homelessness. How did you come to find yourself taking part in this conversation? Mendonca: I have had almost zero exposure to issues of mental health challenges either personally or in my professional life until – what was a very personal experience for me – when I was in the Governor’s office and got hit with a sudden and severe case that was later diagnosed as anxiety and depression. So, my exposure and perspective was driven through that lens and, certainly, I can’t claim to be broadly knowledgeable about it, but

the experience gives me a perspective on mental health. Having talked a lot about the issue recently, I have a view about some of the challenges and opportunities to deal with mental issues in our society. You’ve written about how common mental health issues are, citing one in three Americans will deal with such a challenge. Yet, we know discussing mental health is still often considered taboo. Why is that the case? And do you think it’s changing? Well, the statistic that I used about one in three Americans was from before the pandemic. Early indications show it’s only increased during the pandemic, understandably. Whether you’re a frontline worker or it’s the stress of dealing with working from home, and people with multiple obligations between work and family or otherwise – let alone anyone who was exposed to Covid-19 – circumstances have only broadened the perspective on it. I do think it is becoming more commonplace to lower the stigma and talk about mental health. I decided to write about it because it didn’t feel like something that should be talked about openly. My daughters and my wife encouraged me to write something. In part, it was going to be more of a private thing to send to people to explain what was going on, because I hadn’t talked about it and I kind of abruptly left my job. It was a way to have the conversation without having to repeat the story over and over again. I started to share it with family and friends, and I was encouraged to publish it.

I think there are two things going on: First, you see more people talking about mental health publicly, who are of stature. Whether it is an athlete or not, you’re seeing the topic discussed more and more. Athletes such as Simone Biles, and Michael Phelps before her. There’s also Lady Gaga from the entertainment world and others. Or even Michelle Obama, saying she felt depressed during the pandemic. So that creates a conversation over time. Secondly, what I experienced is that when it is one in three or one in four Americans who suffer from a mental health issue, everyone is one or two degrees of separation from someone who has had an experience. It then becomes something that isn’t a theoretical conversation anymore. It’s a more personal one. I’ve probably written over 100 editorials in my life, and this one had an order of magnitude more response than anything else I’ve ever written. The number of people who reached out to me, most of whom I didn’t know, and wanted to tell me their own story was touching – whether it was a family member or friend, and many of whom didn’t have good endings. That’s really heartbreaking. I think it’s essential we eliminate the stigma and recognize it’s a health issue like any other health issue. If we treat it that way and start to have real conversations to address it, we can avoid those bad outcomes, or at least reduce them. Continued on page 46 ▶

CAL I FO RNIA GRO CER | 43


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15 MINUTES WITSH… ◀ Continued from page 43

What’s the business case for focusing on mental health? Even before the pandemic, it was clear that it is really like other health issues in your workforce. You’re much better off having a healthy workforce that can bring the full self to the workplace to contribute. When they’re out, or not operating at full capacity, that has major implications on the ability to do the job. There’s a large number of economics studies that show that the cost of mental health on health care expenses and productivity for business is very high. It’s in the employer’s interest, if they can do something about it, to do something about it and to address it early. I do think when you look at the studies the evidence is very clear. The challenge most employers have is they will acknowledge it, they will say they are already dealing with it, or there’s nothing they can do. Which isn’t true. Employers have a really important roles to address this issue. It’s not just the right thing to do from a human standpoint, but also a business one. In the business world praise of ideas like grit, or even hustle culture, are commonplace. How do you square up those ideas to your thoughts on mental health?

In the sports world you see world class athletes talking all the time about having to be in the right mental frame to perform at their peak. There are athletes all the time talking about mental conditioning. If you are a world class athlete, you have physical trainers, but also mental ones to make sure you are in the condition to perform at your peak.

There are difficult challenges in many industries and with grocery, where that’s the culture and in many ways the history and managerial ethos, it’s that much more challenging. I do think it’s one where both for the safety and well-being and performance of the existing people in the industry, let alone attracting new employees going forward, it’s something where you really do have to take this serious. I don’t think that happens unless senior leadership steps up and says we think this is important.

iStock

“Grit helps you get better quicker, but it isn’t just about playing through. ”

I think grit is compatible with mental health. It’s really useful to have grit and determination and a willingness to commit to what you want to do. But if you’re a professional athlete and you pull your hamstring, it’s not about grit to keep playing. It’s in their interest to help you get better. Grit helps you get better quicker, but it isn’t just about playing through.

Business doesn’t think about mental health that way often enough. It’s something a mindset shift will help. It used to be only bad executives got coaches. Someone whose boss told them they aren’t performing the way they should so I’m going to get you a coach. Well today, if you don’t have a coach helping you, then the company isn’t investing in you, and you aren’t on the top of your game.

The same thing is true in mental health. I think the business world is a little bit late to this game compared to how other sectors think about performance. If you’re in the entertainment world, it’s a much more common conversation because it’s often about creativity and performing your art. It’s a natural conversation in those circles.

So, it’s the same thing, perhaps even more so, in the business world where you’re using your brain, not your body. It’s completely aligned to say you want to have a top performance and have all the grit and resilience you can, so you need the support to make sure that’s the case to be in condition.

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

The grocery industry has a reputation for being one that requires long hours, “paying one’s dues,” people in the industry often talk about the grind operating a store requires. What advice would you give the grocery community on mental health?

In many places it’s not the culture. That’s why it’s easier to enter the conversation with the business case I laid out earlier. Maybe bring in a speaker who can speak to their own experience, where you can have a conversation that doesn’t go straight at the culture and individuals behavior. And I do think it’s going to be challenging. I’m not going to sugarcoat this. If you really do want to alter it, you have to be serious about it. Culture change is hard and it starts at the top with commitment to do something about it. I think it’s also why the issue is more severe in these high stress, high performance macho cultures, whether that’s grocery, investment banking, law firms or other things. They have that culture, and mental health needs to be part of the conversation if they want to do something about it. So how can industry leaders do more on the mental health front? I think the most important thing from a senior business leader standpoint is the stigma one we’ve been talking about. You can’t have this conversation really and


15 MINUTES WITH…

address it if you aren’t prepared to openly discuss mental health. So that’s the first thing to do. The second thing you’re going to immediately get into is what is your benefit package and how adequate is it for issues of mental health. And adequacy not meaning is it theoretically available, but how good is it and is it practically available.

Okay, last question: What are some simple changes you recommend at an individual level? What about smartphone apps like Calm or Headspace? There are increasingly good articles in business press on both the business case and resources. I do think there are nonpharmaceutical interventions that can be

In my circumstances I had the privilege of having a very generous healthcare plan, and because of that and networks and things, I had quick and immediate access to really quality support. But I’m not delusional enough to think that wasn’t a function of privilege as opposed to typical circumstance. For mental health issues, especially if they’re more pronounced, it’s just not helpful to say dial this number and we’ll get back to you or sure we have access to a therapist or support but it’s going to take three months to get help. You know, when you break your leg, you get sent to the emergency room and they treat you right there. Mental health challenges, especially if they are in severe circumstances, it is not only unhelpful, it is worse to not get help when you think you’re getting help. So you have to stress test your program, and I would encourage leaders to not do that theoretically. Have someone, or if you can do it yourself, call it and find out what support you get and how quality is. I’m pretty sure most will find out it’s not adequate. That’s partly a function of the fact we are dramatically under-resourced in our mental health capacity in our healthcare system. Like a lot of other things, we have a system for treating things when they are severe as opposed to preventing them or catching the early and that’s got to shift in this world too.

A couple of things that, certainly for me, have helped and are good things generally: Really take sleep seriously. Get enough of it and take the time to recharge when you’re burnt out. Vacations matter, take them. There are reasons why there are people insistent that people take them. And turn your social media and email off when you’re doing it. Exercise and healthy eating are important too. Just being able to clear your head and get out into nature or in a gym, however you do it, developing health habits are good ideas. All those things are just kind of common sense things that are important to do. The last thing I’ll say is this is really a human issue. We need to be able to recognize we are all human beings and there are stresses, many that aren’t related to work. Be aware and be a human being to your fellow workers and family members. It makes a big difference if someone says something and is paying attention.

“Culture change is hard and it starts at the top with commitment to do something about it.”

And if you’re the person going through a mental health challenge, you often don’t know you are. If it’s the first time you’re having a substantial episode, as it was in my case, I had no idea what was going on. It took my family and a couple close friends to really insist I get some help. Otherwise I wouldn’t have known what was going on. ■

really helpful. Everything from mindfulness support and the apps you were describing to monitors like Fitbit. You can look into things that monitor your sleep patterns and use technological ways to start the conversation. I said before, the doctor that’s treating me, I’ve never met in person. It’s all been on video and that would have been unthinkable before a little while ago and is practical for many.

CAL I FO RNIA GRO CER | 47



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MOMMY BLOGGER

Another Year of Lunch Box Blues K I M B ER LY R A E M I L L ER WR ITER , ACTR ES S

Sometimes providing for your little ones comes down to simply trying your best, regardless of the results. There is a particular flavor of parental anxiety that happens at the end of each day, as I unpack my son’s lunchbox and realize that out of the smorgasbord of options I have packed for him, he has eaten half a slice of lunch meat and a single strawberry. The rest of his carefully packed lunch, of course, is thrown out, as it has been sitting, unrefrigerated for most of the day in his backpack. “Did you at least drink your milk?” I ask him, knowing the answer.

of the pandemic, we increased our food budget because everyone was home all the time, grazing their way through the days. But I won’t increase it again, so the treats my kids’ love (and will actually eat) but don’t provide any nutritional value to their lives are the first to go. Each morning, as I pack their bags, I err toward their tried-and-true favorites. For my son, carrots and cucumbers are a staple – the only vegetables he will eat.

Hummus to dip. Fresh fruit, cheese cubes, and half a sandwich. A hermetically sealed box of organic whole milk. My daughter’s lunch is provided by daycare, but I pack extra snacks, fresh fruit, and vegetables in lieu of the goldfish and vanilla wafers that the school doles out at snack times. It all sounds so healthy and balanced on paper, but it’s a losing battle because, again, most of it will end up in the trash. And yet, I will keep forging ahead for another year (or 12). I will continue to make the best choices I can for them with the resources I have, even if they don’t care, don’t like it, and won’t eat it. That’s parenthood, right? ■

“Some of it.” He shrugs and runs off to his room to starve to death among the superheroes and racecars that litter his bedroom floor. If pressed, he will tell me that he just didn’t have time to eat, and I will confront his teacher, who will tell me what all his teachers have told me since he was two…he has plenty of time; he just spends it talking. As we start the new school year, I am conscious of the same two things I always am: Getting healthy food into my children and sticking to our food budget. As food prices continue to increase due to inflation, that becomes a bit trickier. In the early days

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

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