California Grocer, Issue 3, 2022

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BRISTOL FARMS TURNS 40 PAGE 18 LEADING BY EXAMPLE PAGE 24 THE GREAT ACCELERATION PAGE 28 CALIFORNIA GROCERS ASSOCIATION2022, ISSUE 3

Great Food isn’t possible without a healthy planet. We’re committed to reducing our carbon footprint and nurturing the environment.

We’re committed to creating and sourcing sustainable products and reducing unnecessary packaging and food waste.

We are bringing together the ingredients for a better world our planet our people our products our communities to make changea Reality.
1-800-446-0190 or visit www.cswg.com 40 YEARS OF SERVICE to the communities of Southern California on an impressive

EXECUTIVE COMMITTEE

Chair

Renee Amen Super A Foods, Inc.

Immediate Past Chair

Hee-Sook Alden Gelson’s Markets

CHAIR APPOINTMENTS

Independent Operators

Denny Belcastro

Kimberly-Clark Corporation

Committee Chair Elliott Stone

Mollie Stone’s Markets

DIRECTORS

Joe Angulo

Bodega Latina Inc.

Elaina Budge Costco Wholesale (Bay Area)

Pamela Burke Grocery Outlet, Inc.

Jonson Chen 99 Ranch

Willie Crocker Bimbo Bakeries USA

Jake Fermanian Super King Markets

Damon Franzia Classic Wines of California

Jon Giannini Nutrition Fundamental Sergio Gonzalez Northgate Gonzalez Markets

Bryan Jankans Mondelēz International Inc.

Mary Kasper 99 Cents Only Stores

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

First Vice Chair

Dennis Darling Foods Etc.

Second Vice Chair

Lynn Melillo Bristol Farms

Michel LeClerc

North State Grocery Co.

Treasurer Secretary Steve Dietz

United Natural Foods, Inc.

Hillen Lee

Procter & Gamble

Saj Khan

Nugget Markets

Tyler Kidd Mar-Val Food Stores, Inc.

Nancy Krystal Jelly Belly Candy Co.

Brandon Lombardi Sprouts Farmers Markets

John Mastropaolo Chobani, Inc.

Kelli McGannon

The Kroger Company

Doug Minor Numero Uno Market, Inc Mike Moliner

Food 4 Less (Stockton)/ Rancho San Miguel Markets David Moore

E. & J. Gallo Winery Joe Mueller Kellogg Company

Andrew Nodes Instacart

Bethany Pautsch Tyson Foods, Inc.

Eric Pearlman

C&S Wholesale Grocers Subriana Pierce Navigator Sales and Marketing

Jaclyn Rosenberg NielsenIQ Jeanne-ette Ryan Molson Coors Beverage Company

Jeff Schmiege Unilever Karl Schroeder Albertsons, LLC Jeff Severns PepsiCo Beverages North America

Greg Sheldon

Anheuser-Busch InBev

Scott Silverman

KeHE Distributors, LLC

Donna Simpson Certified Federal Credit Union

Diane Snyder Whole Foods Market –Southern Pacific Region

Josh Southerland Reyes Coca-Cola Bottling LLC

Rick Stewart Susanville Supermarket IGA Joe Toscano Nestlé Purina PetCare Richard Wardwell Superior Grocers

Karl Wissmann

C & K Market, Inc.

Director

Local Government Relations Tim James Director CGA Educational Foundation Brianne Page Director Administration & Human Resources

Jennifer Gold Senior Manager Marketing & Membership

Sunny Porter Communications Specialist

Grace Becker

Business Development Manager Bailey Dayen Administration & Programs Coordinator Miriam Ellis Controller Ion Bazgan 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

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

Assistant Editor Grace Becker gbecker@cagrocers.com

For advertising information contact: Bailey Dayen bdayen@cagrocers.com

CGA | BOARD OF DIRECTORS
| CALIFORNIA GROCER2

President’s

FEATURES CONTENTS | ISSUE 3
Message The Retail Roadmap is a Living Document 5 Chair’s Message Making Lasting Connections at Conference .......................... 6 Driving Outside Your Lane 8 Inside the Beltway Grocery Shoppers Remain Resilient in the Face of Rising Food Prices 10 Washington Report Independents: Resilient, Creative, 12 Significant Changes to the Bottle Bill After More Than 30 Years 15 Lessons I’ve Learned on Leadership and Life Donna Tyndall Reflects 17 The Heart of Inflation 44 DEPARTMENTS CGA New Members 37 New Retail Perspectives ................ 40 COLUMNS 28 Leading by Example Jennifer Pelayo (Smart & Final Stores) receives the 2022-23 CGA Educational Foundation Legends of the Industry Scholarship. 24 18 CALIFORNIA GROCER | 3

MESSAGE

The Retail Roadmap is a Living Document

Exiting the pandemic, the grocery industry is seeking bold answers to new challenges

When Google calls, you answer. Or at least that was my feeling when the ever-so persuasive Emily Ma, Founder of Food for Good at Google, reached out to me.

Whether she’s dumpster-diving at 5 a.m. or using Google’s artificial intelligence capabilities to predict mold development on strawberries, Emily brings contagious passion and a surplus of smarts to her work. Her mission is to organize the world’s food information, making it accessible and useful in service of a future food system that is sustainable, nourishing, and equitable for all.

With these goals in mind, the CGA Board of Directors joined the Food for Good founder for a lunch and learn at Google’s new Bay View Campus. It was a day full of inspiration, and I’m excited to see what comes from our burgeoning collaboration with Google as our grocery community works to combat food waste, especially.

We all know sustainability is a vital component of doing business today. Both customers and voters clamor for it. Combatting inflation and supply chain issues by striving to do more with less, or with greater efficiency, can ultimately be something that fulfills business-driven and ethical goals.

Speaking of the supply chain, the board and a few special guests also enjoyed a tour of numerous businesses as part of our Retail Tomorrow, California event, the day before the meeting at Google. Inside this magazine you’ll find Kevin Coupe’s take on how Retail Tomorrow pushed attendees to think outside the box. That’s a great lesson, but I remain struck by the on-the-ground experience, the intermingling of the supply chain and labor, and how those two things shape so much of what takes place in making and moving goods to grocery store shelves.

Pictures of backlogged ports and container ships waiting at sea have been some of the defining images of the pandemic. At the Port of Oakland, we awed over the size and scale of these shipping operations, but also at the fact there is little automation at American ports – zero at the Port of Oakland in particular. Juxtapose these images with our group’s experience at Plenty, which is an indoor, vertical farming operation. When touring Plenty, one is struck by the precision and reliability offered by dynamic software and robotics. At Plenty, almost no human touch is required, and the start-up is able to sustainably produce high yields of leafy greens.

Economists and on-the-ground intuition alike tell us that the last three years have had long and lasting consequences for the supply chain, the workforce, and therefore, the grocery industry. Yesterday’s solutions no longer apply, which is why I’m thrilled to see CGA taking a lead in starting conversations at Retail Tomorrow that feed into the CGA Strategic Conference

“Retail Roadmap” theme. My hope for CGA Strategic Conference attendees is that these discussions continue into the pre-scheduled business meetings and educational sessions.

Enjoy your time in Palm Springs!

PRESIDENT’S
CALIFORNIA GROCER | 5

CHAIR’S MESSAGE

Making Lasting Connections at Conference

The CGA Strategic Conference is the most important stop for business connections and industry camaraderie

The time has come once again to come together in Palm Springs for the industry’s most valuable event of the year. I always look forward to the CGA Strategic Conference, not only because of the terrific business and educational opportunities, but also the in-person connection. I’ve shared it before, but running a family business makes it even more special to gather with family, colleagues, and friends at the annual convention.

One of the highlights of my time at Conference each year is experiencing the event with my mom, Dorie, and taking our retail business meetings together on behalf of Super A. Even after all these years, you’ll still see my mom walking the convention floor, carrying out her lifelong commitment to our family’s business. I know my dad would be proud to see us representing Super A together as a family at this great event.

This year I’m honored to take the Conference stage for the first time as Chair on Monday morning to make opening remarks with CEO Ron Fong and The Illuminators Headlite Joe Perez. It’s a special opportunity to address our industry directly and reflect on what we’ve faced this year and what lies ahead, and I don’t take it for granted.

Our conference theme this year, focused on the new “Retail Roadmap,” hits especially close to home after taking on more responsibility to help run my family’s business during a time of great change and adjustment in our industry. From new supply chain challenges, to changing customers, to new standards for employee care, we’ve all learned a lot this year that we can apply to future business plans.

can lean on each other as an industry. That’s partly what makes connecting at the CGA Strategic Conference so impactful.

With expert speakers and informative educational programs like the Enterprise Risk Protection Executive Summit and the Independent Operators Forum, businesses can come together to tackle challenges we all face, share solutions, and collaborate. (Not every industry can turn a room of competitors into great friends and confidants!) Plus, the carefully coordinated business meetings between retailers and suppliers make the event one of the most efficient destinations for in-person business connections.

I like to think of the new roadmap as a balance of old and new, mixing tried and true business practices with new strategies that will help us meet the evolving needs of our customers and employees. As we look forward to our updated roadmap, I still think of my dad’s business philosophy to anchor me: make your customer feel taken care of, offer a clean environment, and make sure the price is right.

We’ve learned during this year of change that it’s more important than ever that we

This event is really where relationships are made. Every year, I meet up with some of my dearest industry friends and we make memories for years to come. Whether we’re competing in the Illuminators Bartending Competition or meeting by the pool for the After Hours Social, I know I’ll leave the conference with stronger connections than I had before –both personally and professionally.

I can’t wait to see faces both old and new this September in Palm Springs for another wonderful Conference.

| CALIFORNIA GROCER6

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, provid ing superior care for our hens and giving back to the communities that support us.

Driving Outside Your Lane

The value of exposing yourself to ideas outside your comfort zone

I’ve always felt that there is much to be learned from sources beyond the traditional, an approach that works whether you are in the food business (like you are) or the words business (like I am).

I’ll give you an example. In the waning days of the last century, one of my jobs was as a columnist for Progressive Grocer magazine (which I did in addition to running editorial for the “Supermarket Insights” and “Retail Insights” video programs, which were owned by the same company). I wrote a back-ofthe-book column each month, which had a core theme – lessons that could be applied by food retailers, curated from businesses that had nothing to do with food and often nothing to do with retailing. It was a radical notion at the time, but somehow, I got PG’s editor to sign off on the idea.

At the same time, I was waging an unsuccessful battle to get the company –which not only had print and video intellectual property, but, at the time, a thriving data collection business –to embrace the internet as an opportunity to remake the company for the 21st century. We had all the pieces, but just needed to rethink how we assembled and marketed

them … we had the ability to be way in front of all the competition. As I say, it was an unsuccessful battle, and I ended up getting laid off as the company that then owned the property thought the best way to endure tough times was to get back to fundamentals (I hate that phrase!) and not make risky bets on things like the internet.

It wasn’t that I was really smart or unusually prescient. It’s just that while everybody else was reading food trade magazines (and probably accounting manuals), I was reading magazines like Fast Company and Wired, which were showing me a world that I didn’t know existed. These magazines, and others like them, encouraged me to drive outside my traditional lane, and it was just a few years later that I launched MorningNewsBeat. com, which as you read this is just a few months shy of celebrating its 21st birthday.

Changing lanes has its advantages.

I tell you all this because last month I had the opportunity to spend time with the CGA Board of Directors during a Retail Tomorrow Immersion event in northern California, a day designed to take people outside their traditional lanes and think about the business and critical issues differently, without traditional restraints.

It was fascinating.

Two of the stops during the day showed us what is possible from very different perspectives. At Plenty, a vertical farm business just south of San Francisco, we saw a revolutionary approach to agriculture that has the potential to reshape how produce is grown and provided to stores and consumers, in a way that could have a dramatically reduced impact on the environment – no small matter in a part of the country plagued by draught. And, we stopped by PayPal Park, home of the San Jose Earthquakes, where Dave Kaval –current president of the Oakland Athletics and former president of the Earthquakes –spoke about the importance of empowering

VIEWPOINT
| CALIFORNIA GROCER8

employees at every end of the organization. Parking attendants and beer vendors, he explained, were every bit as critical – and maybe more so – to the customer experience as people with better salaries and fancier titles; it is important to make them feel engaged with the team and the business so that they take the delivery of a superior experience absolutely personal. (Do your checkout personnel feel that way? If not, why not … and what can you do about it?)

This tied into a conversation about the Workforce of the Future that I had onstage with Kyle Mayer, chair of the Management & Organization Department at the University of Southern California (USC), in which we spoke about the need for retailers to be far more flexible in how they deal with employees, rejecting a one-size-fits all approach that these workers likely find to be unsatisfying and even irrelevant. One employee might need more flexible hours, while another might be looking for college loan repayment assistance … there will be employees who need frequent feedback sessions and small wage bumps, while there will be others who do not require or enjoy that level of engagement. To treat everyone

the same, Mayer said, is to demonstrate that one is out of touch with employees, and it is difficult to get maximum buy-in and effort from workers who do not feel understood. (You may not like that reality, but so it goes.)

By the way … you can listen to a recording of my conversation with Kyle Mayer as an audio podcast on MorningNewBeat, which you can find at this link: https:// morningnewsbeat.com/2022/08/11/aspecial-mnb-retail-tomorrow-podcastthe-workforce-of-the-future/

Our group also traveled to the Port of Oakland to learn about the supply chain issues facing that business, and then listened to a panel discussion that was more specific to industry issues, but still offered outside perspectives.

Suzy Monford – who you probably know from her time in the region as a food retail executive – now is Chief Strategy & Marketplace Officer at a company called Focal Systems, and she talked about how we have “a very clunky food economy” that requires better, faster and more actionable information. (No surprise, that’s what Focal Systems offers.)

Mike Neal, founder/CEO of Decision Next, built on that by talking about how retailers need tomorrow-centric information that allows them to make better decisions when it comes to buying fresh commodities. And Mark Scharbo, formerly of US Foods and now with Macmillan Doolittle, stressed the importance of developing more flexible, nimble systems and platforms that will be better able to adjust when there is another pandemic, or some other event that stresstests the industry.

Every moment of the Retail Tomorrow immersion was framed as a challenge – how can businesses do better and be better by being willing to drive outside traditional lanes … not just on a Wednesday in early August, but in the everyday conduct of commerce. Which is my challenge to you. “Think different,” was the way Apple used to put it … but it is an admonition – indeed, an exhortation – to which we all need to pay attention. And embrace.

Because while we all have to think about retail as it exists today, it is to some degree malpractice not to also focus on the shape, probabilities and yes, even the possibilities, of retail tomorrow. ■

VIEWPOINT iStock CALIFORNIA GROCER | 9

Grocery Shoppers Remain Resilient in the Face of Rising Food Prices

Over the past two and a half years, grocery shoppers have maintained their resilience in the face of incredible stress navigating a public health emergency

Despite concerns about their own health, pandemic-related out of stocks on grocery store shelves, the war in Ukraine’s long-term impact on the food supply and historic levels of inflation, shoppers have demonstrated they remain flexible in securing the foods they need to keep their families healthy and nourished.

Underscoring this shopper resiliency, last month FMI – The Food Industry Association released the fifth installment of our six-part series of U.S. Grocery Shopper Trends 2022 reports. This latest report focuses on grocery shopper behaviors within the context of “Back to School” season and how their plans and habits evolve as families return to routine.

Our research finds that even though 90% of shoppers are concerned about some aspect of food accessibility, with 61% concerned about rising prices specifically, shoppers feel they have at least some degree of control over their finances, particularly when it comes to their grocery budgets (86%).

Shoppers report weekly grocery spend totals of $136, which is $12 lower than February 2022. This is partially a seasonal effect, with consumers eating out more during summer

months, but it also indicates belt-tightening behaviors. Shoppers seem to believe they are succeeding at bringing their grocery spending under control, hitting a lower ongoing weekly total, as they adjust their overall household budgets.

Shoppers are finding ways to cope with rising food prices by looking for deals (49%), buying more store brands (41%), buying fewer items (37%), buying in bulk (23%) and making increased use of store loyalty programs (22%). Consumers are also seeing different benefits from shopping in-store or online. Customers indicate that while shopping in a physical store, they can make adjustments at the shelf (61%) and save on shipping/delivery (57%). When grocery shopping online, shoppers report they can better monitor basket size (64%) and save on gas (62%).

Beyond Americans’ grocery spending habits, we also looked at their attitudes about COVID-19. The good news is that COVID-19 concerns continue to drop, albeit slowly. The number of shoppers expressing concern with COVID-19 has declined since August 2021, but there has been no change since February 2022 when we last surveyed

consumers. There is also less worry about the safety of food shopping in person: two-thirds now feel comfortable being in stores. Additionally, respondents are increasingly comfortable eating indoors in restaurants, up 13 percentage points since February.

Although COVID-19 concerns have declined, visible reassurance (e.g., cart sanitation stations, signage) of cleaning and health safety measures may become baseline requirements for food retailers going forward.

INSIDE THE BELTWAY
CHIEF PUBLIC POLICY OFFICER & SENIOR VICE PRESIDENT, FOOD MARKETING INSTITUTE
One-third of adults say their food shopping has permanently changed in some way as a result of COVID-19, and almost as many say the pandemic has changed their approach to health.
| CALIFORNIA GROCER10

Even more than COVID-19, rising prices concern parents shopping for back-toschool needs. Despite an overall concern with COVID-19 higher than that of other Americans, parents generally feel it is safe to send kids to school in person. One-sixth of those in households with kids still feel it’s very risky. Households with kids also report high concern with the cost of both school supplies and clothing.

FMI is working hard to keep our elected officials aware of the latest Consumer Price Index (CPI) numbers, how these inflationary

trends are impacting food prices and what it means for consumers. See our latest briefing featuring FMI’s Andrew Harig and California Polytechnic State University’s Dr. Ricky Volpe at https://educate.fmi.org/ products/fmi-briefing-peering-into-foodinflations-black-box.

All told, the story of the typical grocery shopper is one of tremendous flexibility and resilience in the face of higher food prices and persistent effects of COVID-19. Retailers that can offer solutions that help shoppers maintain their feeling of control

and manage their spending while still being able to secure the items they need for their families will be positioned for success amid this inflationary environment. ■

To download the U.S. Grocer Shopper Trends 2022 – Back to School report, access prior reports in the Trends series, and sign up to receive updates on future reports, visit www.FMI.org/GroceryTrends.

INSIDE THE BELTWAY CALIFORNIA GROCER | 11

WASHINGTON REPORT

Independents: Resilient, Creative, and Nimble

The sudden shift in retail spending behavior during the second quarter of 2020 drove record supermarket sales, as grocers moved mountains to keep shelves stocked while contending with operational challenges, from supply chain to sanitation. But staying sanitary is a relatively simple task compared to the supply chain rollercoaster that retailers have been forced to ride, joined by a labor shortage and runaway inflation to deliver a triple threat to doing business.

Even so, independent grocers have demonstrated once again that they have what it takes to weather the storm and deliver for their communities, according to the 2022 edition of the Independent Grocers Financial Survey, a joint study between the National Grocers Association (NGA) and FMS Solutions.

The survey documents a complex marketplace in which the only constant was change. Amid supply chain and labor challenges, independents carefully managed inventory while compressing margins in key departments to drive sales during fiscal year 2021.

Navigating these volatile times is a tremendous accomplishment that will help independents through tough marketplace conditions that are lingering throughout 2022, even as the usual pundits find themselves increasingly hard-pressed to speculate on the end game amid a perfect storm of factors that are pressuring retailers and consumers alike.

As detailed in the NGA/FMS survey, grocery retailing remained in flux on both the supply and demand sides during fiscal year 2021. Consumer spending and trips shifted between online and in-person as COVID-19 cases ebbed and flowed. Inflation and outof-stocks prompted shoppers to trade down within categories, seek alternative products and pack sizes, and even look to other retailers.

“Supply chain challenges kept independent retailers on their toes with historically low order fill rates averaging 74.6%,” noted Robert Graybill, president and CEO of FMS Solutions.

Even as inflation drove product prices higher and higher, nearly 60% of

independent grocers responding to the survey said they were unable to match their 2020 sales records; dollar sales outpaced pre-pandemic levels though same-store sales dipped nearly 2%.

While focusing on inventory management, independent grocers helped consumers find value for their stretched grocery dollars. Much as they were resourceful in securing scarce high-demand goods during the darkest days of the pandemic, independent grocers continue to scour the marketplace to procure products that give shoppers the most bang for their buck. Leveraging social media has helped grocers stay engaged with their communities to alert consumers about the latest deals.

Lower sales and compressed margins, combined with expenses driven higher by inflation, delivered a decrease in net profit compared to the prior year. Of course, this was to be expected after profits that rose fivefold due to 2020’s surge in grocery sales.

As Graybill noted, “At 3.62%, the net profit before taxes for independent operators in 2021 was the second-best result on record.”

The COVID-19 pandemic has been one of the most challenging business environments that independent community grocers have ever had to face, and it’s not over yet.
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The retailers leading the pack on profits were largely those that focused on fresh, particularly produce and deli, with higher margins, above-average transactions, and bigger baskets.

While 2022 is unlikely to bring the same results as the past two years, independent community grocers – resilient, creative, and nimble – have a roadmap for success and are prepared for the challenge.

The complete survey is available at https:// www.nationalgrocers.org/resource-center/ and www.fmssolutions.com. ■

Visit us at online: www.nationalgrocers.org

WASHINGTON REPORT
The
Southern California Acosta team
and
our client partners would like to congratulate Bristol Farms on their 40th Anniversary! Congratulations on 40 Years! CALIFORNIA GROCER | 13

January 7 – 14, 2023

Fairmont Kea Lani | Wailea, HI (Maui)

A

OFFERING A TIMELY OPPORTUNITY TO PAUSE, REFLECT AND FIND INSPIRATION FOR THE YEAR AHEAD.

Imagine a place where you can reinvest in yourself, revitalize your creative spirit, and shift your focus to the long-term health of your business.

The 2023 Independent Operators Symposium offers a stress-free place to step back from the day-to-day and refocus on your personal and professional priorities. Surrounded by your peers and business partners, this annual retreat provides a uncommon experience where attendees can safely share the obstacles to their growth and learn new perspectives on the path forward.

We invite you to gather for a week of inspiring speakers, practical share group discussions and just the right setting to give yourself a much-needed break.

I look forward to gathering with colleagues and friends in tropical paradise each year. We come together to learn, share and grow in this industry that we all love. It is the perfect setting for learning from both masterful speakers, as well as other store operators, whom I consider my mentors and my friends.

Featured Speakers

Getting (The Right) Things

Done: A Guide to Achieving More Without Burning Out

Hamza Khan

Future of Work Expert

Author of Leadership, Reinvented

How to Create a Culture of Listening

Heather R. Younger Founder & CEO Employee Fanatix

Meaningful Retreat Retailers: $6,475 | Others: $8,475 All registrations are double occupancy and include accommodations for seven nights, education sessions, four morning breakfasts and two evening receptions.
REGISTER TODAY! Visit cagrocers.com/symposium/ Registration cut-off date is December 7, 2022.

CAPITOL INSIDER

Saving the Best for Last

Significant Changes to the Bottle Bill After 30 Years

For as long as I have worked with the grocery industry, anything having to do with the “Bottle Bill” in the Legislature hasn’t happened until the eleventh hour. And, more times than not, the clock was run out – often purposefully by one stakeholder or another – leaving grocers without policy relief.

Well, 2022 looks to be different, on at least one front. This year, we’ve achieved significant change, even though it didn’t come together until the final deadline, to amend proposed legislation.

SB 1013 (D-Atkins) seeks to make the most sweeping changes to the Bottle Bill since its inception 34 years ago. First, the bill brings wine and distilled spirits into the program.

A feat that has been attempted many times but with no success. Second, it clarifies the small store exemption passed into law last year, which exempts fuel sales from the $1.5 million in revenue. Third, it expands the convenience zones from a half-mile to one mile in urban areas and up to five miles in rural areas, which should reduce the total number of unserved zones by a considerable amount. Finally, and most importantly for our industry, it does away with the $100 per day in-lieu fee placed on dealers and allows for the formation of a dealer cooperative to develop plans for unserved zones.

Beginning January 1, 2023, CalRecycle will start a regulatory process to develop the rules around the formation and operation of the dealer cooperative. There could be multiple cooperatives serving regional needs or one statewide cooperative to address redemption opportunities throughout California. The cooperative(s) would need to be up and running by January 1, 2025, because at that time, Option B, the $100 per day in lieu-fee, will no longer be an option. At that point, a dealer in an unserved zone would sign an affidavit agreeing to either redeem containers in store or join a dealer cooperative.

The dealer cooperative would submit plans to CalRecycle showing how recycling opportunities can be provided to customers

within the zones. A plan could cover multiple unserved zones. Implementation of an approved plan would satisfy the dealer’s obligations under the Bottle Bill. Recycling opportunities include pilot program, like mobile recycling, bag drop, reverse vending machines or convenience zone recyclers. The dealer cooperative can operate the redemption centers and qualify for handling fees, or it could partner with recyclers to locate in the unserved zones.

In addition to the policy changes, the Legislature is providing significant funds to help with this transition. $70 million in grants will be available to start mobile recycling sites, purchase reverse vending machines, and other recycling options.

When implemented, dealers will no longer be faced with the no-win decision of in-store take-back or paying $100 per day to the State, for which we never know how it’s spent. This proposal will give dealers the opportunity to dictate their own futures to provide convenient recycling opportunities for consumers at a lower cost.

This will no doubt be a lot of work. It’s a major change, but it’s one we tackle head on in order to provide needed relief to our members who have had no options for the past 30 years.

iStock CALIFORNIA GROCER | 15

Keurig Dr Pepper congratulates Bristol Farms on their 40th Anniversary

| CALIFORNIA GROCER16

Lessons

I’VE LEARNED ON LEADERSHIP

DONNA TYNDALL and Life

Retired from Gelson’s markets with 48 years under her belt, former Senior Vice President of Operations shares lessons from a fruitful career.

OUR BUSINESS IS ABOUT PEOPLE … OUR EMPLOYEES AND OUR CUSTOMERS.

If you take care of your people, the rest will fall in place and the work will be easier. Bernie Gelson taught us that if we take care of our employees, they will take care of our customers. And if we take care of our customers, we will earn their loyalty.

WORKING HARD AND MAKING SACRIFICES ALONG THE WAY ARE PART OF ANY JOB, ESPECIALLY AS YOU PROGRESS UP THE MANAGEMENT RANKS.

It doesn’t mean you still can’t have balance in your life, but don’t expect to have things handed to you without working for it. But work should always be fun!

TAKE PRIDE IN YOUR WORK. Pay attention to the details. Try to do a little more than what is expected. Help your coworkers succeed, and you will be successful.

LEADERSHIP IS ABOUT SERVING OTHERS — THAT SHOULD ALWAYS BE THE MINDSET. The biggest satisfaction and the most rewarding aspect of being in leadership is being able to help others grow and develop. Everyone is different and has different skills, and it is the leader’s job to help them find the job that is best for them.

AS A LEADER, WE HAVE A RESPONSIBILITY TO MODEL GOOD BEHAVIOR AND REPRESENT OUR COMPANY IN A POSITIVE WAY. You may not realize the impact you make on others’ lives, but you will make an impact! Early in my career I read this quote by Dag Hammarskold – who served as the Secretary General to the United Nations in the 1950s. “Your position never gives you the right to command – it only imposes on you the duty of so living your life that others can receive your orders without being humiliated.” I tried to incorporate that into my management style throughout my career – at every level.

I BELIEVE YOU SHOULD TREAT PEOPLE THE WAY YOU WANT TO BE TREATED.

The great poet and author, Maya Angelou, summed it up when she said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.”

DON’T JUMP TO A CONCLUSION OR PASS JUDGMENT, ESPECIALLY WHEN IT DEALS WITH PEOPLE, WITHOUT GATHERING ALL THE FACTS AND ASKING THE RIGHT QUESTIONS

FIRST. Get all the details so you can make an informed decision. Ask the next question … sometimes things aren’t the way they look at first glance.

THINK ABOUT HOW YOUR DECISIONS AFFECT OTHERS. You will have to make decisions or changes that may not be popular, but you can often mitigate any negativity by being aware of the potential consequences and addressing them up front. Transparency is important – explain why and how decisions are made to help your people learn and understand your thought process.

LEARNING SHOULD BE A LIFELONG AMBITION. Being in a leadership position is a privilege – you have the opportunity to help and guide others, to shape their lives in a positive way. And with that privilege comes a responsibility to continue to learn and grow in your role so you can guide your team.

GIVE PEOPLE YOUR TIME. Listen, be present, and be interested in what they have to say. You may be surprised at how much a few minutes of your time means to your employees.

HAVE A POSITIVE ATTITUDE! Negativity only serves to sap your energy.

GIVE BACK TO WHATEVER CAUSES ARE IMPORTANT TO YOU, WITH YOUR TIME AND ENERGY. The food industry works with so many great charitable causes, and as a leader, it is incumbent upon us to support those causes. We also have two associations in California, CGA and the WAFC, that are important to the future of our industry. We are lucky to be part of a great industry and it is important to support it.

ENJOY THE JOURNEY! Appreciate what you have – both at work and outside of work. The years will go by quickly, and when you look back on your career, I hope you have many wonderful memories of the journey and the friends you’ve made along the way.

CALIFORNIA GROCER | 17
| CALIFORNIA GROCER18

TURNS 40

Innovation isn’t just a goal for the team at Bristol Farms, the 40-year-old grocery banner that now operates 14 stores in Southern California. It’s part of the company’s DNA and its mission, and it has been since 1982.

A LOOK BACK

When founders Irv Gronsky and Mike Burbank set out to build Bristol Farms, they aspired to combine the friendliness and quality of a neighborhood butcher, baker, and specialty grocer all under one roof.

Since its beginnings, Bristol Farms has looked beyond traditional grocery aisles to deliver an elevated experience for its shoppers. Always with an eye toward being “fashion forward” in food, as CEO Adam Caldecott says, Bristol Farms is focused on bringing a fresh culinary experience to the grocery world.

For example, Bristol Farms was one of the first grocery stores to offer fresh, handmade sushi to shoppers in 1986 – and it remains a customer favorite to this day because of its high-quality ingredients. Being a culinary destination remains integral to Bristol Farms’ past and future as it celebrates its 40th anniversary this year.

“That point of culinary innovation is something that’s true to the company and has always been one of the key principles that we try to live up to,” says Caldecott, who began with Bristol Farms as a meat clerk in South Pasadena and worked his way up to the role of CEO. “That’s what’s really made up the strength of the company in the last 40 years and to grow and expand into what we are today.”

Continued on page 20 ▶
CALIFORNIA GROCER | 19

INNOVATION IN IRVINE

To that end, Bristol Farms’ newest store in Irvine, California, is a foodie haven. The store concept is built around a food hall with several different full-service food options, from a sit-down pizzeria to a quick-service restaurant serving plant-based plates. According to Dan Evon, Bristol Farms’ Vice President of Culinary, this showcases Bristol Farms’ evolution with new destination opportunities in food.

Caldecott says part of what makes the Irvine store so exciting is that each of the food venues is created with its own brand, even though they’re being run in-house. For example, PikaPika is the spot for sushi and poké, while customers craving a fried chicken sandwich can order one up from Horton’s Hot Chicken.

What makes the fast casual lineup even more relevant is its connection to customers digitally. Each of the food brands is available via online apps like

want and when they want,” Caldecott says. “Through these different brands we can set up digital experiences, capture a segment of customers and then have them meet Bristol Farms through that brand.”

The Bristol Farms leadership team sees the Irvine store as a laboratory of sorts, where new products like a plantbased Green Dragon roll or Watermelon Poké can be tested, and new venues can be given the time and energy to be

“Our goal is to create food that people want to talk about,” Evon says. “Great flavor, exceptional ingredients, and quality presentation. We want to be the place where you crave the food you are coming back for.”

“Our goal is to create food that people want to talk about,” Evon says. “Great flavor, exceptional ingredients, and quality presentation. We want to be the place where you crave the food you are coming back for. But it doesn’t just end with the food quality. We believe our hospitality and service will make us stand out from the rest.”

DoorDash, so Bristol Farms’ brands are top of mind for diners looking to order in just as much as they are for grocery shoppers who want to come into the store for the complete Bristol Farms journey.

“In this new digital space, you’re always looking for new ways to meet the customer where they want, how they

successful. From there, the team can determine if the concept resonates with customers or if it needs to be transitioned into another venue. Then, Caldecott said Bristol Farms will take that knowledge and upgrade new and existing stores.

◀ Continued from page 19
| CALIFORNIA GROCER20

“Part of our growth plan is to take the successes from Irvine and port them to future new stores, but also to retrofit foodservice departments in our current stores with the successful ones we have in Irvine,” Caldecott says.

FULL-SERVICE DEPARTMENTS

The food-centric, experience-driven model of Bristol Farms didn’t happen by accident. Since the beginning, Caldecott says the leadership team of Bristol Farms has prioritized quality, innovation, service, and product knowledge. In addition to foodservice, the stores have been thoughtfully laid out with full-service meat and seafood departments featuring artisan butchers, cheese departments with hundreds of choices and regular tastings, and a theatrical shopping experience that keeps customers engaged throughout their trip.

The delight for the customer is in the details. For example, Craig Tsuchiyama, Senior Director Meat, Seafood and Sushi at Bristol Farms notes that the banner only sells the top 5% of USDA Prime & Choice beef. Among its offerings, the meat department dry ages beef for 21 days in-store and grinds beef patties daily. Butchers make sausage in-house and undergo careful training to ensure quality in their cuts.

“Both our meat and seafood departments showcase skill, service, and quality,” says Tsuchiyama. “We are serious about our standards and staying true to the roots of each department. We have long-standing relationships with our suppliers, and our team members are well-trained and engaged.”

As customers have come to expect quality and innovation from the company, so too has Bristol Farms continued to invest in proper training for its

employees and planning for each new store. Caldecott notes that the desire to train people and impart the necessary knowledge in turn makes Bristol Farms a place people want to be.

FOREVER IN THE FOOD BUSINESS

Innovation will kweep Bristol Farms progressing in the future, too, Tsuchiyama said – whether it’s a new product development or something simpler like developing a sushi item for the Poké bar.

“We also update classic recipes by changing the aesthetics or ingredients in the item,” he says.

While Bristol Farms operates as a grocery banner, Caldecott notes that Bristol Farms strives to be both a place to go for a full grocery shop and a destination for breakfast, lunch, and dinner.

Evon says that above all, the company is in the food business. “Our guests are coming to us looking for guidance and support when it comes to how they eat, what they eat, and what ingredients they use when cooking at home,” he says.

And while Bristol Farms’ goal is to provide guests with craveable, exciting products, the company also understands that it’s operating in a fast-paced world.

“Convenience can be a key driver in where people choose to go – we provide a multitude of choices in one location,” Evon says.

From day one, Bristol Farms has kept quality, innovation, and service at its core, and that’s what has attracted shoppers and motivated them to return each year and with each new store. It’s also what driven the company for 40 years and will long into the future.

“Our health as a business is driven specifically by what we’ve aligned behind in quality, innovation, and service. That’s who we are, and that’s what we dream about every day,” Caldecott says. ■

“It’s what keeps our customers coming back year after year and keeps driving our growth,” he says.
“Our health as a business is driven specifically by what we’ve aligned behind in quality, innovation, and service. That’s who we are, and that’s what we dream about every day,” Caldecott says.
CALIFORNIA GROCER | 21

The Shelby Report Region Wise. Nationwide.

Providing the intelligence you need to compete by covering news and features on all aspects of the retail food industry across the nation through 5 regional monthly editions.

For the best value add a digital subscription and stay informed anywhere, anytime.

“Six hundred fifty stores percent our U.S. stores earned manager for the IGA Coca-Cola Institute. fast fresh food delivery service. It will measure to 400 new jobs. Officials said will become ant our strategy to achieve the doubling end 2023. We’re eager provide rewarding tation, inventory and quality management, and Luke Jensen, CEO Ocado Solutions, shared Shelby Report West
Annual awards program honors difference makers According to Merriam-Webster, diversity the inclusion In our June editions, The Shelby Report will recognizing individu The Shelby Report of the Southeast JUNE 2022Your source for grocery news and insights since 1967 Associated Grocers’ gathering touts new items, ideas, innovation Donations from event benefit area food bank More please see page. 14 Inside Shelby Repor Turnout strong as TGCSA is ‘Building for the Future’ Nichols recognized as Retailer of Year Among other topics, Lee highlighted the state’s attempts keep reasons for that. But what we’re trying the local level work JUNE 2022Your source for grocery news and insights since 1967 The Shelby Report of the West This issue The Shelby Report of the West chock full the latest happenings from around the region. Another first for Tyndall –addressing FISMC Legends Female pioneer found career at Gelson’s Educating candidates ahead of election crucial for WFIA Group helped defeat ‘a lot of bad ideas’ By Eric Pereira Inside BACK TO BUSINESS Region Wise. Nationwide. The Shelby Report of the West Midwest APRIL 2022Your source for grocery news and insights since 1967 Cub Foods Pharmacy receives Larkin Community Service Award Cub Foods’ delegation accepted the award, led by Director Pharmacy Aaron Sapp community, the elderly and first responders,” he said. Many independents from Midwest earn Five Star status According IGA, these retailers and their teams “Six hundred fifty stores percent our U.S. stores earned Fulfillment center coming to Cleveland Kroger also plans facilities for delivery in Texas, Alabama Cincinnati, Ohio-based The Kroger Co. has fast fresh food delivery service. will measure center,” said Gabriel Arreaga, Kroger’s SVP and ern Ohio and Pennsylvania and create new jobs “As this site develops and goes live, will The Shelby Report of the West APRIL 2022Your source for grocery news and insights since 1967 The Griffin Report of the Northeast a Shelby Publication Antitrust policymakers urged to level playing field for independent grocers Two owners from Northeast testify before FTC, DOJ resulted in unchecked buyer power “Independent grocers don’t shy away from challenge. But want to address challenge that’s gotten ADUSA converts first center of 2022 into self-managed network Pennsylvania addition boosts total to 21 facilities self-distribution network support Ahold we now have the first facility in the network that IGA honors many stores in region with Five Star status of-stocks, but also strong profits," said. “And many through the Digital Ad, and getting their e-commerce and put the stores good positions for the challenges stores were going through. The survey was streamlined address what cusing what customer service looks like during the pandemic. and feedback to the stores who need it," said Paulo Goelzer, president of Five Star honorees were determined from the average of two assess Please see page 30 MAY 2022Your source for grocery news and insights since 1967 The Shelby Report of the Southwest FMI shakes up shopper trends report report examining how inflation pers’ journeys and behaviors. Expanding on Concerns for COVID-19, inflation and out-of-stocks reported being extremely very concerned with Consumers report their weekly grocery Annual Celebrating 36 influential women in the Southwest Walnut Avenue property, about 40,000 square feet larger. The former to kitchen textiles, rugs, throw blankets and Newest store includes some firsts for company Among features are Home by H-E-B two-story eatery BUNDLE ALL 5 REGIONAL EDITIONS AND SAVE 20% Scan QR code or subscribe online at theshelbyreport.com/subscribe or by calling 888-498-0771 CGA.indd 1 7/28/22 11:15 AM Elevate Clean 1 Creating solutions that drive sustained behavior change and the formation of new habits Illuminate product benefits and build stronger emotional connections with shoppers when and where they are most receptive Removing friction and creating a seamless shopping experience whether in aisle or in the digital commerce environment Kimberly-Clark’s Family Care brand strategies remain focused on Building Resilience at Retail Redefine Routines Delight the Shopper | CALIFORNIA GROCER22

Leading by Example

For Jennifer Pelayo, Receiving the Legends of the Industry Scholarship is an Honor that Goes Far Beyond Herself

To her surprise, however, Jennifer found a niche in the grocery industry that allowed her passion to thrive. Now, with over 15 years in the grocery industry under her belt, Jennifer is the $10,000 Legends of the Industry Scholarship recipient for the 2022-23 academic year, funded by the California Grocers Association Education Foundation. She is the fifth recipient of this scholarship that was established to honor past industry legends and to recognize up-and-coming grocery leaders who are pursuing a higher education.

No matter what she decided to do with her career, Jennifer always knew that she wanted to work with people. “To be able to meet people and help people, whether they’re children or young adults, that was a passion of mine,” she said.

What fuel’s Jennifer’s desire to help others? Her faith. “In every situation we enter, we have an opportunity to make an impact,” she said.

Jennifer started working at Smart & Final Stores as a cashier right out of high school after her cheer team coach, who worked at the company encouraged her to apply. After nearly one year working in the store, she transferred to the Smart & Final corporate office for a job in human resources (HR). Jennifer didn’t necessarily associate her passion for human connection with her job in the grocery business until one day an unsuspecting opportunity changed her perspective.

During her first week working in the Smart & Final corporate office, the HR manager asked Jennifer to help organize personnel

Jennifer Pelayo did not set out for a career in grocery. She was on another path altogether, pursuing psychology with a mission to help and connect with people along the way.
| CALIFORNIA GROCER24

files. Typical of any HR office, she sorted through complaints, disciplinary notices, and termination letters, leading Jennifer to ask what the HR manager liked most about his job. He responded, “What I love most is the opportunity to help people become better at what they do here at work, but more importantly, better people for themselves and their families.”

This conversation not only has stuck with her to this day but also planted the seed for Jennifer to pursue a long career in Human Resources.

Growing up, Jennifer dreamt of attending the University of Southern California (USC), but it was not financially possible at the time. None of Jennifer’s family members in the generation before her had the opportunity to go to college. Regardless, Jennifer had always viewed education as a priority, so she enrolled in junior college.

“Even if I didn’t know what I wanted to do, my opportunity was here and I needed to take it,” she said.

With the help of her mentor and current supervisor, Ginny Diaz, once Jennifer decided to switch gears to HR, Ginny taught her what she would have to do to change her education and career path to HR.

Jennifer switched her major from psychology to business, and after receiving her associate’s degree transferred to California State University Los Angeles to study business with an emphasis in HR management. Later, she received her Professional in HR (PHR) certification.

Meanwhile, she held various HR positions at Smart & Final, supporting both stores and supply chain as a Regional HR Representative and Regional HR Manager, advancing to her current position of Director of HR.

Around the time when Jennifer’s son turned three and she started looking into master’s programs, Ginny informed her that she’d been selected to complete the four-day Executive Education Program at USC, which seemed like a sign.

It was an amazing honor and privilege when she officially became a USC Trojan in March 2022 and was accepted into the master’s program.

“It felt surreal,” she said.

Now a full-time HR Director at Smart & Final and full-time master’s student in University of Southern California’s Business Management program, Jennifer has been with Smart & Final for almost 18 years.

Jennifer credits Smart & Final’s culture and growth opportunities as the reason she’s stayed so long, “Smart & Final has been so committed to my growth and has provided an environment I want to live in … They’ve shown me they care about me.”

She speaks highly of the company’s core values, which include teamwork, respect, accountability, integrity, and growth. “Those core values have been the pillars of who I’ve become,” she said.

For Jennifer, the honor of receiving the $10,000 Legends of the Industry scholarship goes far beyond herself. Now, Jennifer is committed to the further growth and development of her team.

When she learned that she is this year’s recipient, Jennifer said, “It’s an honor, but I’m a big believer of creating an example, so this is a way that I can be an example to my team and [show them] to not let any boundaries get in the way of what you want to achieve.”

Jennifer wants her team to consistently continue to grow and know that it’s ok to not always have the solution, but if you try your best and learn from mistakes, ultimately you’ll be better off.

“It’s always a goal of mine to be a leader who my team feels safe with,” she said.

A career woman with a husband and with young children, Jenifer acknowledges that sacrifices have to be made to juggle, work, school, and family.

“It’s important to know when to start, when to stop, and what to adjust,” she said.

Jennifer is mindful that she may be setting an example to other women who she may not even realize are watching, and she does not take it lightly.

“It’s never too late to go back and it’s never too late to start,” she said.

She believes that continuing her educational journey will keep her sharp, “You have to stay knowledgeable, you have to stay educated.”

While ultimately working towards the role of Vice President of HR, her aspirations go beyond that, “My personal goal is to be an HR leader.”

The most rewarding part of the job, she says, happens when she’s in the “dark side of HR,” helping someone who’s struggling and wants to give up, who later goes on to receive an award or promotion. “You’re able to see the glimpse of light that you knew was there, but they couldn’t see it,” she said.

Outside of work, Jennifer is deeply involved in her local church and spends her free time meeting with a women’s group weekly, volunteering, leading bible study groups, and coaching for a bible college program. She has also been involved in the Network of Executive Women (now called NextUP).

Ultimately, she hopes that receiving this honor will demonstrate the importance of education to her two young sons, Gregory and Gabriel. “It’s not just about the money, but what the scholarship represents,” she said. ■

CALIFORNIA GROCER | 25
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TheGreatAcceleration

Mid-January 2020, I was in Shanghai on a business trip exploring the latest consumer consumption trends and how corporations were leveraging emerging technologies processes to meet them. Little did I know as I boarded a plane back home to North America that I was just a few days ahead of one of the greatest technology adoption accelerations: the global pandemic.

I spent the following weeks and months in constant contact with my Asian, then European, and finally North American networks as the pandemic rapidly expanded worldwide. Within this time, I learned and shared how businesses were adapting (read: surviving) to lockdowns and other extraordinary measures that radically changed the paths to purchase, plus their fulfillment.

| CALIFORNIA GROCER28

and the Race to (Grocers’) Resilienceand the Race t o (Grocers’) Resilience

Obviously, grocers were often at the center of many of these discussions.

In the fall/winter of 2020/21 I decided to write a book on this topic, focusing on how The Great Acceleration (a name I coined in April 2020 to refer to these rapidly shifting business dynamics) was most importantly going to build sustainable organizational resilience. A particular focus being how increases in technology adoption could help build that resilience while leveraging physical infrastructure. In other words, how improved digital processes augment physical commerce capabilities and vice versa.

During the past two years, a lens through much of the acceleration was the increase of e-commerce adoption. A trend that a recent

McKinsey survey titled “The next horizon for grocery e-commerce” forecasts will double in the coming five years. Although this is indeed an important trend, there is a broader narrative that is even more deserving of grocers’ attention: how the blurring (i.e. interoperability) of digital and physical commerce is key to building organizational resilience. Hence, it’s very vital to survival.

Zero Percent

The most important data point in the same must-read McKinsey report is a far more concerning one: zero percent. This is the percentage of grocery retailers who feel “very well prepared for the transition to more digital commerce.” Sixty-four percent feel somewhat prepared, and two thirds

expect to lose market share consequently. Thus, the race to resilience is on. A resilience that goes far beyond the ability to offer online grocery shopping.

I suspect nothing I’ve written here so far is totally shocking to you. Plus, you probably have far greater talent attraction/retention, inflation, and supply chain issues to solve. What if I told you that is precisely why digital adoption, that augment physical capabilities, are key to solving those challenges? The critical role technology investments and capabilities play in attracting talent, more effective engagement of all stakeholders (including suppliers), and better forecasting/ fulfilling consumer needs will be at the core of your business success.

Continued on page 30 ▶
iStock CALIFORNIA GROCER | 29

Build Alignment

First, these investments must align with your differentiation and market relevance. I.e. why your target market decides to shop with you. In my book, I present a framework titled the Retail Relevance Index (RRI) that I based on research from Professor Kahn at Wharton to support a differentiation strategy based on my adjusted take of the four attributes of price, convenience, cultural values, and customer delight.

It’s typically used in a two-step process: First build the critical internal strategic alignment that is often lacking or being pushed in several varying directions which dilute the desired impact. Once internal alignment is built, we survey the external market to validate how these vectors significantly differentiate beyond how we might internally perceive your performance engaging your customer.

Now that you have a better idea of which attributes you wish to build and validate, you can begin to evaluate the technology solutions at your disposal to determine which will most effectively serve your purpose.

Beyond e-Commerce: e-Influence

Some of you might remember that famous scene in the 1992 movie Glengarry Glen Ross where a very assertive (read: arrogant) character named Blake, played by Alec Baldwin, is brought in to “coach” an underperforming team of insurance salesmen. Though fewer and fewer of my university students today recognize this extraordinary scene, it remains very relevant

in building relevance and resilience. Those who do remember the scene probably remember the “ABC” acronym, meaning “Always Be Closing.” To me, an even more important acronym followed that one in this historic scene: AIDA. This has long been taught in marketing classes as the stages or funnel necessary to convert consumers into customers. Although the “Attention, Interest, Decision, and Action” funnel today is often converted into a more circular model where we show the importance of building loyalty, it remains relevant in how we build the differentiation we discussed above and guide our resource allocation.

How does your investment build either of those four factors and align with your differentiation strategy? Does it extend beyond the basic (now table stakes) transactional e-commerce capabilities to better build awareness, interest, and desire that will deliver conversion?

Put another way, how can technology solutions contribute to building e-influence? This is harder than it might seem as we often think that it’s simply building a social media campaign and/or an effective e-flyer.

measures up against the perennial retail equation. This is similar to the AIDA model, but this time in much more familiar terms: Does the technological solution I am considering drive more store traffic, increase conversion, basket size and/or margin? This applies both to in-store and online. Ideally both as we know how the two are now converging. More on that in the conclusion.

In writing my book, I interviewed several business leaders in early 2021 to get their perspectives on the ramifications of The Great Acceleration. Among them, I interviewed Stacey Shulman, who, at the time, was Chief Innovation Officer of the retail and hospitality sectors at Intel Corp.

Based in California, she spoke about the impacts of the acceleration on the grocery sector, that was strongly benefiting from the imposed consumption shifts (mainly the temporary closures of other food services such as dine-in restaurants). She expressed how this combination of sudden increases in revenues and delay of technological investments should create a sense of urgency for grocers to address the needed adaptations. In other words, through the government-imposed lock downs, grocers were offered a glimpse of a virtual consumption future, only it came a decade earlier than expected.

The challenge was how to best prepare for it in a dynamic industry environment, with a proliferation of new entrants, channels, and processes to meet consumer demand.

Back to Basics: The Retail Equation

Another valid stress test that can help bring more clarity to your building resilience in your investment is validating how it

We also discussed how many grocers’ digital transformation roadmaps were postponed to focus on more pressing matters. Waiting for new solutions to emerge, tracking competitors’ investments, third party negotiations, seeking inspiration from global leaders, and attracting the right talent all seemed to justify these delays. Then the pandemic exposed many vulnerabilities from this lack of investments. Customers dealt with inadequate, unstable, or poor digital platforms. Not to mention the entire

◀ Continued from page 29
However, as with all things, resources are limited and must be strategically allocated.
With the proliferation of data points, consumers will be looking for a far more relevant and personalized approach rather than the generic conversion of what (once) worked in more static-analogue times.
| CALIFORNIA GROCER30

logistical fulfillment piece that is impossible to prepare for in such a sudden influx. This is a situation that we know today’s consumers are no longer willing to tolerate.

Conclusion: The Rise of i-commerce

I’m presently writing my next book exploring the many ways, thrust by The Great Acceleration’s digital proliferation, we have what I refer to as a rapidly thickening “digital layer” that will further impact and augment the path to purchase. This highly personalized and contextual layer that will be as thin as simple pricing, availability, and characteristics all the way to fully immersive virtual experiences. All driven by much more data collection, processing, and bandwidth capabilities that businesses will be looking

to better leverage. A recent signal of this trend is Amazon’s decision to move these capabilities away from its grocery business to its more technologically focused web services (AWS) group.

The status quo is a guarantee to rapid irrelevance and the very opposite to building resilience. Now, it’s up to you to decide how to make the most of this imposed momentum. ■

Carl Boutet is Founder of StudioRx, a boutique retail/go-to-market advisory firm at the insertion of experiential design, technology and data science. He is also author of The Great Acceleration, The Race to Retail Resilience (available on www.studiorx.world ). Carl teaches the ‘new technologies and emerging business models’ class at McGill University Masters in Retail in Montreal as well as digital marketing at the Asian Institute of Technology MBA in Bangkok. He remains a perennial name on many lists of most influential retail thinkers and can be found on several global media outlets adding his retail strategy related commentary.

We all know that now more than ever, the quote, “The only constant is change” rings true.
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NEW MEMBERS

CGA welcomes the following members:

Chiono Consulting

12 Weber Ln

Coto De Caza, CA 92679

Contact: Vic Chiono, President E-mail: vichiono@outlook.com Phone: (949) 322-5283

Del Monte Foods Inc.

205 N Wiget Ln Walnute Creek, CA 94598-2403

Contact: Bryan Shelton, Sr. Dir., Sales E-mail: bryan.shelton@delmonte.com Phone: (925) 949-2772 Website: delmonte.com

Fresh Victor

1510 Fashion Island Blvd Ste 300 San Mateo, CA 94404

Contact: Todd St. Sure, Dir., Sales

E-mail: todd@freshvictor.com

Phone: (415) 264-4263 Website: freshvictor.com

Good Stuff Distributor

131 W Harris Ave

South San Francisco, CA 94080-6010

Contact: Ahmed Chehade, Chief Operations Officer

E-mail: ahmed@goodstuffdist.com Phone: (415) 647-6617 Website: goodstuffdist.com

Homesome

1488 Darlene Ave

San Jose, CA 95125-4726

Contact: Rahul Chabukswar, Chief Executive Officer E-mail: rahul@homesome.com Phone: (213) 590-3258 Website: homesome.com

Local Express

700 N Brand Blvd Ste 910 Glendale, CA 91203

Contact: Dennis Acebo, VP, Customer Success E-mail: dennisa@localexpress.io Phone: (818) 405-9777 Website: localexpress.io

Plaztigo

6534 Mcabee Rd

San Jose, CA 95120

Contact: Yashve Kalati, Marketing & Sales Manager

E-mail: plaztigo@gmail.com Phone: (408) 887-0238 Website: plaztigo.com

Procore Products International, Inc. 4644 Coldwater Canyon Ave Ste 303 Studio City, CA 91604-1091

Contact: Michael Kopulsky, President E-mail: productpartner888@gmail.com Phone: (714) 653-5013 Website: procoreint.com

Rosie

171 E State St Ste 216

Ithaca, NY 14850-5561

Contact: Lori Brown, Sr. VP, Industry & Customer Development

E-mail: lori.brown@rosieapp.com Phone: (952) 200-1705 Website: rosieapp.com

Shopper AI

418 La Calle Corte

Pacific Grove, CA 93950

Contact: Gadi Maier, Chairman E-mail: gadim2020@gmail.com

Phone: (415) 612-7003 Website: shopperAI.ai

Store Intelligence Inc. 6700 Koll Center Parkway Ste 109 Pleasanton, CA 94566

Contact: Daniel Tye, Dir., Account Services

E-mail: dtye@store-intelligence.com Phone: (925) 470-7213 Website: store-intelligence.com

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CALIFORNIA GROCER | 37

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Walmart Gets Cute

As Americans returned en masse to summer vacation travel, Walmart paired with the startup company Getaway to open tiny, “cute” stores in Big Bear Lake, Calif. and the Catskill Mountains in New York. For the uninitiated, Getaway offers tiny vacation homes in situated in nature. Walmart calls these new store models, “The General Store,” and these diminutive retail establishments feature vacation goods, things you may have forgotten to pack, and local goods. While the notion of a general store conjures up old-timey, wild west imagery, similar neighborhood-based retailing concepts have proved popular over the last decade.

In the Palm of Your Hand

Like a Jedi mind-tricking POS, Amazon’s latest frictionless payment concept allows customers to check out with the palm of their hands. That’s right, in 65 California stores Whole Foods shoppers can register their palms in participating locations. After the palm print is set up, store customers simply pay via a palm scan.

Hear Us Yodeling?

Whether its Korean facemasks, footmasks, or Frownies, it appears nobody can get enough of self-care. So let’s head to the home of fondue where if Mud baths aren’t your thing, but cheese is, you’re in luck. In Switzerland, cheese artisans have taken to offering tourists baths in giant vats of leftover whey. It’s a tradition that goes back centuries to a time when Europeans, who were justifiably over leech treatments, began bathing in whey – believing the soak had restorative effects on their skin. Every kilogram of cheese produced leaves behind nine litres of whey, so there’s plenty to go around.

OUTSIDE THE BOX NEW RETAIL PERSPECTIVES !
Can You
iStock iStock | CALIFORNIA GROCER40

Your Snack Psychoanalysis

Is your favorite snack a bowl of Greek yogurt with honey? Then you’re a naturally amiable person who makes friends easily. Prefer ants on a log, even as an adult? Then, you may be an actual child. The New Yorker recently published an article listing a number of popular snack foods, and their creative personality interpretations that align with your snacking habits. Care to share yours?

Expiration Dates No Longer Apply

A movement to eliminate “best by dates” is gaining momentum across European supermarket chains. Recently, Marks & Spencer went public with its intention to remove “best before” labeling from its products as it works to combat food waste. It will now be left to customers to decide whether a particular piece of produce IS okay to eat.

What’s Up with Ethnic Aisles?

The founders of Omsom, a hot new Asian spice and mealprep purveyor, have something to say to grocers about their ethnic aisles … what gives? In a viral social media video Kim Pham shares the history of the ethnic food aisle, which got its start after World War I when soldiers returning home from Europe were clamoring for flavors they’d experienced abroad. With one in three American families comprised of immigrants or their children, Omsom believes the ethnic food aisle designation is no longer representative of the United States.

Meals in Five Items or Less with a Side

of Voyeurism

There’s something strange about the way so many of us unwind by watching others in some of the most mundane of settings. From cooking dinner to renovating a home, some of America’s favorite past times occur on Food Network or HGTV. A similar interest has developed on TikTok as some of the most popular influencers on the platform have built massive followings from content as simple as sharing a haul from a grocery store or farmer’s market. Another related popular content style focuses on offering culinary inspiration, using the formula of five or less items from a particular grocery store.

OUTSIDE THE BOX
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CALIFORNIA GROCER | 41

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www.prezero.us 1 (800) 767 5278 info@prezero.us CA State regualations can be a challenge for grocers Wave Top PreZero sources post consumer plastic film to make regulation compliant poly bags. ELEVATE YOUR BRAND with CUSTOM, REUSABLE BAGS! Give your customers a choice they can feel good about. PreZero has solutions O u r b a g s e x c e e d m i n i m u m P C R c o n t e n t r e q u i r e m e n t s s e t f o r t h b y S B 2 7 0 a n d a r e c u s t o m p r i n t e d w i t h e n v i r o n m e n t a l l y f r i e n d l y w a t e r - b a s e d i n k C e r t i f i e d f o r u p t o 1 2 5 u s e s . Reach out for more information! Collection programs to recover bags! Soft Loop Handle

The Heart of Inflation

For parents, milk prices determine brand loyalty.

Each morning when I browse my local Facebook Mom’s Group page for updates on community events, PTA committee assignments and recommendations for local contractors, I check the milk thread.

Parents from all over my community post what they’re paying for milk and where. Cow, soy, almond or oat; milk, more than any other item we buy for our families, dictates where most of us shop. The milk thread is only a few months old, but it most certainly marks a change in the culture of my community.

While some families have felt the sting of inflation less than others, the increase in food and gasoline prices has changed our routines. Brand loyalty is a luxury reserved for the beginning of the month, but when ends don’t meet by the end, the milk thread is the first stop in figuring out how to fill the fridge until the next payday.

My family is thankfully not food insecure, but that doesn’t mean there haven’t been months this year when we dipped into savings when our cost of living didn’t fit as comfortably into our budget as it once did. I don’t think I’m alone. I think my family represents just about every other middleclass family in this country.

The truth is budgeting can only do so much. My income hasn’t changed, and so my budget hasn’t changed. I still have the same $600 a month/$125 a week to feed my family of four that I had two years ago. And while I can make sure everyone’s bellies are filled each morning. I can pack everyone’s lunchbox daily and make sure no one goes to bed hungry each night; it’s not the same. That $600 doesn’t buy the same amount of food, the same quality of food that it once did.

Our current culture is quick to point fingers, to find a bad guy to blame for inflation. But in the end the blame matters less than the cost.

The actual price of inflation is families.

Families of different means, beliefs, and cultures; all doing their best to care for the people and communities they love. For my community, it comes in the form of a Facebook thread that monitors the cost of various kinds of milk. A simple gesture, but a communal one that hits the heart of our need to provide for our children.

And if there’s one thing to be learned from all this, the moms will come if the milk is cheap.

MOMMY BLOGGER iStock | CALIFORNIA GROCER44

Service Dogs Provide Life-Changing Benefits to Veterans

Purina Dog Chow has proudly supported the military since its founding almost 100 years ago, and the strong commitment to service members continues today. In fact, Dog Chow is celebrating five years of its Service Dog Salute campaign, which highlights the life-changing benefits that service dogs provide to veterans experiencing post-traumatic stress disorder (PTSD).

Approximately 3.5 million military veterans suffer from PTSD, and while service dogs are demonstrated to reduce the severity of PTSD symptoms and suicidal behaviors, only one in 100 of those in need who seek a service dog receive one each year. Dog Chow is on a mission to help. This year marks $1 million in donations from Dog Chow to service dog organizations since the start of the Service Dog Salute program in 2018. These donations help support the care and training of more service dogs for veterans with PTSD. PTSD service dogs are NOT the same as emotional 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.

As part of this year’s Service Dog Salute program, Dog Chow has launched its first-ever Visible Impact Award in partnership with the Association of Service Dog

Providers for Military Veterans. The award celebrates the remarkable impact PTSD service dogs have on veterans’ daily lives and recognizes these outstanding service dogs and the organizations that trained them.

Starting September 1, 2022, dog lovers can join in selecting the first-ever Dog Chow Visible Impact Award winner by voting on the selected finalists at DogChow. com/service. For every vote, Dog Chow will donate $5 to the Association of Service Dog Providers for Military Veterans (up to $75,000 total) to help train more PTSD service dogs at no cost to veterans. Additionally, the winning dog’s veteran will receive a $10,000 cash prize and $25,000 for the organization that trained the service dog.

The Dog Chow Visible Impact Award complements ongoing

research that shows most veterans with trained service dogs exhibit lower symptoms of PTSD, reduced depression and increased social participation compared to those who utilize more traditional clinical care for PTSD alone. Dog Chow and Purina associates are working to bring more awareness and support to veteran service dogs. Soon, you’ll see our mission highlighted on every bag of Dog Chow that arrives in retail stores. Retailers can make an impact by carrying special Service Dog Salute in-store signage designed to drive attention and awareness for the program. Contact your Purina sales rep to learn more.

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