California Grocer, Issue 4, 2021 by California Grocers Association

A PERFECT STORM

PAGE 16

MEET THE NEW BOARD CHAIR OF CGA PAGE 20

2021, ISSUE 4

CALIFORNIA GROCERS ASSOCIATION

EMOTIONAL INTELLIGENCE PAGE 28

SUPPLY CHAIN SHORTAGE

connecting growers to retailers

ADVERTORIAL PET SPECIALTY

SUPPLIER PERSPECTIVES

It’s the most wonderful time of the year, Treat Season! By Joe Toscano, Vice President, Trade & Industry Development at Purina

As temperatures cool and the leaves change, we enter the time of the year when consumers are looking for more ways to create special moments with those they love. For pet owners, this typically leads to an increase of treat purchases with December holidays prompting the highest sales volume treat weeks of the year. But it’s not just winter holidays that drive treat sales—Halloween and Valentine’s Day are also timely sales drivers for the category. Studies have also shown that consumers are more willing to indulge and spend more on themselves and their pets during key seasons and around the holidays. Grocers can capitalize on the timely bumps with limited holiday items, seasonal flavors, themed packaging and displays. Purina has many seasonal treat items for pets including Beggin’® holiday variety packs, Friskies® Party Mix® seasonal flavors and the 12 Days of Treats and 24 Days of Treats Holiday Advent Calendars. Treats is a category that has always held great potential for retailers as a basket builder and profit driver. The bright spot for retailers is that treats are an incremental purchase for consumers, and our data indicates that the more treats consumers have, the more they’ll treat. For year-round coverage, ensure you have a variety of treats including crunchy, meaty, long lasting and functional so that consumers can select multiple treats for the various occasions. Purina has developed several innovative treats for each category including Prime® Bones...(which are safe, long-lasting natural chews dogs will love without the potential hazards of treating with animal bones, antlers or rawhides), and Fancy Feast® Savory Cravings, which provide the savory flavors your cat will love in a special breakapart form. There are multiple ways to capitalize on the growth of treats. Below are some strategies retailers can leverage to capture the valuable dog treat buyer.

• Cross-promotion. Retailers can start by bringing in new households with dry pet food cross-promotions focusing on their health benefits and ingredient story. • Disruption. Treats are more likely to be an unplanned purchase than dog and cat food, which means it is beneficial to disrupt consumers on their shopper journey. Try signage and secondary displays to disrupt the shopper in-store. For online shoppers, banner ads, popups on food pages and add to basket at checkout are beneficial tactics. • Timing. Now, more than ever, consumers want to create those special moments treats provide year-round. Pet retailers should ensure treats are part of their monthly merchandising programs in order to stimulate incremental sales and profits. • Multiples pricing. Because treat consumers are not as price sensitive,

stimulate additional purchases by using multiples pricing. Instead of suggesting a $3.49 retail price either in ad or everyday, change to 2/$7.00 and see the incremental purchases and profits soar. • Variety. For treat buyers, variety is key. Dog treat buyers, on average, feed treats eight times a week. Half of buyers reported having two or more varieties (crunchy, meaty, dental, long lasting or niche) on hand, and 60% of buyers reported having two to five packages on hand. Cat treat consumption has grown and is driven primarily by crunchy form and larger sizes. But variety remains important as half of cat treat consumers report looking for something new. Are you capitalizing on this prime time to sell more treats and drive profitable sales in your stores? Please contact your Purina sales rep for a customized annual plan to take advantage starting today. Purina trademarks are owned by Société des Produits Nestlé S.A.

We provide solutions to your toughest retail problems!

info@retailms.net

CGA | BOARD OF DIRECTORS

EXECUTIVE COMMITTEE

CHAIR APPOINTMENTS Independent Operators Committee Chair DIRECTORS

CALIFORNIA GROCERS ASSOCIATION

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

Chair Renee Amen Super A Foods, Inc.

First Vice Chair Dennis Darling Foods Etc.

Treasurer Hal Levitt The Save Mart Companies

Immediate Past Chair Hee-Sook Nelson Gelson’s Markets

Second Vice Chair Lynn Melillo Bristol Farms

Secretary Steve Dietz United Natural Foods, Inc.

Denny Belcastro Kimberly-Clark Corporation

Michel LeClerc North State Grocery Co.

Phil Miller Core-Mark International, Inc.

Tim Alborg Gopuff Joe Angulo Bodega Latina Inc. Jeanne-ette Boshoff Molson Coors Beverage Company Lori Brown Post Consumer Brands Elaina Budge Costco Wholesale (Bay Area) Pamela Burke Grocery Outlet, Inc. Jonson Chen 99 Ranch Willie Crocker Bimbo Bakeries USA Jake Fermanian Super King Markets Damon Franzia Classic Wines of California Jon Giannini Nutrition Fundamental Sergio Gonzalez Northgate Gonzalez Markets

Bryan Jankans Mondelēz International Inc. Mary Kasper 99 Cents Only Stores Saj Khan Nugget Markets Tyler Kidd Mar-Val Food Stores, Inc. Nancy Krystal Jelly Belly Candy Co. Hillen Lee Procter & Gamble Brandon Lombardi Sprouts Farmers Markets John Mastropaolo Chobani, Inc. Kelli McGannon The Kroger Company Doug Minor Numero Uno Market, Inc. Mike Moliner Food 4 Less (Stockton)/ Rancho San Miguel Markets David Moore E. & J. Gallo Winery

Joe Mueller Kellogg Company Ken Mueller Raley’s Andrew Nodes Instacart Bethany Pautsch Tyson Foods, Inc. Eric Pearlman C&S Wholesale Grocers Subriana Pierce Navigator Sales and Marketing Mike Ridenour The Kraft Heinz Company Jaclyn Rosenberg Nielsen Jeff Schmiege Unilever Karl Schroeder Albertsons, LLC Jeff Severns PepsiCo Beverages North America

President/CEO Ronald Fong Senior Vice President & Chief Operating Officer Doug Scholz Vice President Government Relations Kelly Ash Senior Director Events & Sponsorship Beth Wright Senior Director Communications Nate Rose

Director State Government Relations Leticia Garcia Director Local Government Relations Tim James Director CGA Educational Foundation Brianne Page Director Administration & Human Resources Jennifer Gold Communications Specialist Grace Becker

Programs Coordinator Miriam Ellis 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

Elliott Stone Mollie Stone’s Markets Greg Sheldon Anheuser-Busch InBev Scott Silverman KeHE Distributors, LLC Donna Simpson Certified Federal Credit Union Diane Snyder Whole Foods Market – Southern Pacific Region Josh Southerland Reyes Coca-Cola Bottling LLC Rick Stewart Susanville Supermarket IGA Joe Toscano Nestlé Purina PetCare Rich Tovatt Smart & Final Stores Richard Wardwell Superior Grocers Karl Wissmann C & K Market, Inc.

For association members, subscription is included in membership dues. Subscription rate for non-members is $100. © 2021 California Grocers Association Publisher Ronald Fong rfong@cagrocers.com Editor Nate Rose nrose@cagrocers.com For advertising information contact: Beth Wright bwright@cagrocers.com

CONTENTS | ISSUE 4

FEATURES COLUMNS

16 Labor, Supply, and a Pandemic Create a Perfect Storm As grocers grapple with major obstacles, tech could be a bright spot.

President’s Message The Past, Present, and Future of CGA. . . . . . . . . . . . . . . . . . . . . . . . . . 7 Chair’s Message What I’ve Learned.. . . . . . . . . . . . . . . . . . . . . . 8 Viewpoint The Lessons from 20 Years of MorningNewsBeat.com. . . . . . . . . . . . . . . . . 10 Capitol Insider What to Expect in 2022. . . . . . . . . . . . . . . . . 13

20 Renee Amen Takes the Reins as New Board Chair of CGA CGA’s incoming board chair brings a substantial background in grocery, continuing the Amen family legacy.

Inside the Beltway Year-End Reflection Brings Challenges, New Opportunities for 2022. . . . . . . . . . . . . 14 Mommy Blogger The Upside of Inflation: Teaching Kids the Importance of Personal Finance.. . . . . . . . . . . . . . . . . . . . . . 42

DEPARTMENTS Outside the Box New Retail Perspectives. . . . . . . . . . . . . . . . . 34

15 Minutes With Tracey Priest and Bruce Montgomery. . . . 36 CGA News. . . . . . . . . . . . . . . . . . . . . . . . . . . . 40 Index to Advertisers. . . . . . . . . . . . . . . . . . . 49

Emerging Better Together: CGA Strategic Conference 2021 CGA’s first in-person Conference in Palm Springs since 2019.

28 Keynote Perspective: How to Leverage Emotional Intelligence for Daily Success Symposium 2022 Keynote Rich Bracken’s top five tips to increase emotional intelligence every day.

CAL I FO RNIA GRO CER | 5

CA State regulations can be confusing... Is your business in compliance? There are new requirements for organic waste diversion and recycled content in your bags.

PreZero has solutions! End Products

Organics Efficient diversion of food waste from California retailers and manufacturers. We effectively upcycle organic material into animal feed and soil nutrient using black soldier fly technology. Support the circular economy by partnering with PreZero for food waste reduction!

Animal Feed

Soil Nutrient

End Products

Plastics PreZero processes reusable bags and poly mailers out of postWave Top

Tamper Evident

Soft Loop

Food Delivery Bags

Handle

consumer recycled film. PreZero bags exceed minimum PCR content requirements set forth by SB 270 and are custom printed with environmentally friendly water based inks.

(All Produced in CA, All Reusable

Die-Cut

T-Shirt Bag

Fold-Over

egulatory Compliant)

Mailers

Visit our website www.prezero.us

for more information!

(213) 459-8484

info@prezero.us

PRESIDENT’S MESSAGE

The Past, Present, and Future of CGA RO N F O N G PR ES IDEN T AN D CEO CALIFOR N IA GR OCER S AS SO CIATIO N

As the Association concludes its “Strategic Plan 2021,” it’s time to cast out in search of the next areas of growth for California’s grocery community. Former President Dwight D. Eisenhower once said, “Plans are useless, but planning is indispensable.” Eisenhower had a point. There’s no doubt that even best laid plans have been foiled by COVID-19. Planning requires us to envision a future that ultimately is unpredictable, and the future’s unpredictability is a lesson we’ve learned well during the pandemic. What’s more important, and I think this is what the former president was getting at, is setting long-term goals – which is also an outcome from the act of planning. Back in 2018, our long-term planning process led to the creation of three big-picture goals, and CGA leadership pledged to do the following by 2021:

Objective 1: Expand Our Reach & Influence Objective 2: Expand Our Community Objective 3: Expand Our Offerings Take “Objective 1: Expand Our Reach & Influence” as an example. The pandemic was the animating force for growing CGA’s connectivity to elected officials and the public. When food was flying off store shelves in March of 2020, the Association took to the airwaves to provide vital

industry information to the public and to dissuade Californians from hoarding food. I personally gave dozens of interviews across T.V., print, and radio. Today, we still reap the benefits from this all-out public-facing campaign as media members return to CGA in search of supply chain updates, inflation information, and numerous other topics. CGA’s relationship with elected officials developed in a similar way. The pandemic has kept the industry top-of-mind for policymakers. Whether it’s the state of the industry’s supply chain or ideas for how to keep stores safe during the pandemic, elected officials know they have a partner in CGA that can provide essential information and perspective. Our industry’s importance also led to me serving on Governor Gavin Newsom’s vaccine and economic recovery taskforces. This growing influence on the public and elected officials has a flywheel effect; it makes the Association more attractive to new members. CGA has expanded its community, as aimed for in “Objective 2.” The fantastic work of our grocery community has helped bring

new organizations into the fold and led to collaborations with groups such as the Fresh Produce & Floral Association. In turn, the industry’s influence grows as a robust membership community delivers a united industry voice. A stronger membership base means CGA can double-down on what membership offers, which was our aim with “Objective 3.” For example, prior to the pandemic, the Association built a series of store manager trainings which were very popular, and CGA partnered with Retail Tomorrow to introduce cutting-edge in-store concepts and new technologies at the 2019 CGA Strategic Conference. In the summer industry leaders gathered at the CGA Leadership Summit in Santa Barbara, Calif. The goal was to inspire the next set of strategic objectives that will go into our strategic plan for 2025. Again, the CGA staff is undertaking the planning process. And while the pandemic showed us how unpredictable the world can be and how unpredictability can upend our plans (to President Eisenhower’s credit), the organization’s ability to still reach our goals – the flexibility CGA demonstrated in doing so – shows how vital the planning process can be to forging an even stronger California grocery community. ■

CAL I FO RNIA GRO CER | 7

CHAIR’S MESSAGE

What I’ve Learned

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

Reflections on my year as CGA Board Chair Oprah Winfrey said, “Challenges are gifts that force us to search for a new center of gravity. Don’t fight them, just find a new way to stand.” The challenges of this year proved just how vital grocers are in supporting and nurturing our communities with essential service. Grocers sought solutions by pushing creative boundaries to engage with customers in new ways and adapt to evolving needs. I am so proud to be part of an industry that prioritizes unity alongside business acumen and always manages to find new ways to innovate and serve.

labor shortages, automation, and inflation all converged, challenging conveniences our customers are accustomed to and creating new demands. Despite it all, we remained flexible. We also tackled issues bigger than business. Together the CGA Board made space for meaningful, vital conversations around diversity, inclusion, equity, and belonging in the industry. This issue touched me personally when prejudice against the Asian American Pacific Islander community this year rose to the forefront of our ongoing national discussion about race.

In late summer, our industry was privileged to gather in person again for our annual “Emerging Better Together” Strategic Conference in Palm Springs to reconnect and share what we’d learned throughout this challenging year. It was a joy to feature as a speaker and to see our grocery community enjoy a sense of physical connection again (Go Team Green Lanyard). Looking toward the horizon CGA will continue to lead the industry into 2022 to maneuver important statewide issues.

With CGA at the helm navigating a complex political landscape, the industry was able to accomplish a lot. From pop-up vaccine clinics to wildfire support, there has been no shortage of issues to work through and grocers have exceeded expectations to uplift our state. We’ve proven that we can accomplish anything if we stick together. A time to reflect Because of my position as Board Chair, I’ve had a front row seat from which to view the Association’s work. CGA has guided the industry through several topline issues impacting our business over the past year. As you will read in this issue and know all too well as operators, supply chain strain,

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

iStock

CHAIR’S MESSAGE

“ We also tackled issues bigger than business. Together the CGA Board made space for meaningful, vital conversations around diversity inclusion, equity, and belonging in the industry.” Though we’d hoped it wouldn’t last this long, the COVID-19 pandemic persists, posing unique, one-in-a-lifetime hurdles to our industry, state, and frankly, our world.

There are Cal/OSHA requirements to consider and there may be evolving vaccine and masking guidance at the state and local level, especially as new variants arise. As a named plaintiff in a lawsuit against the California Department of Food and Agriculture to delay the effects of Prop. 12, CGA will fight on behalf of the industry to secure necessary guidance and a fair implementation timeline for new standards for selling pork, a staple protein that customers rely on to prepare everyday meals. In preparation for the 2022 primary elections slated for June, CGA’s Government Relations team will offer exclusive analysis and industry focused viewpoints on everything you need to know.

Sticking together American poet Gwendolyn Brooks wrote, “We are each other’s harvest; we are each other’s business; we are each other’s magnitude and bond.” Challenges aside, this year shone a bright spotlight on the way our industry shows up for one another. Our passion and dedication to service and our communities permeates through every corner of our business. Now is the time to reflect on our successes and look towards the future as CGA’s incoming Chair, Renee Amen, guides our great work into the new year. What is an ending but a new beginning? ■

C O N G R AT U L A T I O N S BRISTOL FARMS WOULD LIKE TO WELCOME THE INCOMING CGA CHAIRMAN

RENEE AMEN Super A Foods

CAL I FO RNIA GRO CER | 9

VIEWPOINT

The Lessons from 20 Years of MorningNewsBeat.com K EV I N CO U PE F OUN DE R , MOR N IN GN E WS BEAT.CO M

Never spin a story. Value values. Learn. I recently had the opportunity to celebrate the 20th anniversary of what I like to call my day job – MorningNewsBeat.com, which I launched in late November 2001. I’m normally not the most introspective of people, but this occasion – the longest job I’ve ever held by a factor of more than six, probably because I have an in with the boss – did make me think about the changes I’ve seen during MNB’s existence, and some of the thing I’ve learned. First of all, let me make one thing clear – I’m no guru, make no claim to be any sort of futurist, and when I’ve gotten things right, it often has been as much luck as perception. Most of all, I think I’m a reasonably good guesser, and a halfway decent writer, the combination of which has made MNB a pretty long-lasting blog, at least by blogging standards, such as they are. That’s one change, by the way. When I started MNB, I never called it a “blog” because the age of my readership was advanced enough that they wouldn’t think of reading a blog. An “online newsletter,” though? That they would read, and, luckily enough, did. But these days, reading blogs and listening to podcasts and watching online videos isn’t reserved for the young, and so I can call MNB what it is.

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

That’s a pretty good business lesson, whether you happen to be in your business or mine – don’t be hemmed in by other people’s definitions of what you are and what you do. Just do it, and believe that definitions don’t matter. Value and values, however, do. Can I tell you a quick story that illustrates another business lesson from the past two decades? (I’ll take that as a “yes.”) Early on, I was visiting a senior industry executive who, despite his advanced years (he probably was a decade younger than I am now) seemed to like MNB, even if he didn’t really understand the form. “Can I make one suggestion,” he said. “Sure,” I said. “I like the way it looks, but I think it would be even more impressive in color.” “Can I make a suggestion,” I said. “Sure,” he said. “Maybe you ought to have your secretary print it out for you on a color printer.” (Note to younger readers: In the early days of this century, not everyone had color printers, hard as that is to believe. Not long before that, not everybody had color

televisions. In fact, not everybody owned a television. If you don’t believe me, go online and check it out.) He was gobsmacked. It never occurred to him that there was actually a filter getting in between my sending the message and him receiving it. (It also never had occurred to me.) But that was a great lesson for business leaders – never assume that your message is being received in the same way that you’re sending it, whether to employees or customers. There always are filters and preconceptions and misconceptions to deal with, and the person telling the story/ crafting the narrative in the end has the responsibility for making sure it comes through clearly and accurately. This is, by the way, one of the reasons I’ve been radically pro-transparency since the first editions of MNB. I just believe that it is when companies try to “spin” a story that they get in trouble, and that it almost always makes sense to get in front of a story rather than be seen as just reacting to it defensively. It is why, as out-of-stocks have plagued the industry, I’ve argued consistently that retailers actually can turn the problem into an opportunity. Instead of trying to cover up empty shelves or leaving them bare when products don’t come in, take advantage of

VIEWPOINT

iStock

the moment and use something like a QR code to allow shoppers to give you their name, phone number, email address and the name of the product they want that is not available. Then, when the product comes in, let them know, and maybe even put some aside for them. When I mentioned this idea on MNB, I got flooded with email telling me that this cumbersome, impossible, impractical, and what the hell did I know about retailing anyhow. All of which may be valid, except that in finding reasons not to do something, people were ignoring the fact that by doing it, they would create stronger bonds with customers at a time when such connections are invaluable. A third business lesson, if I may… One of the things that really amazed me as I looked back on MNB’s beginnings was the fact that I launched it more than five years before Steve Jobs announced the creation of the iPhone, a device that, I think it is fair to say, revolutionized both computing and communication. I have trouble remembering a time before smart phones, and for most of our kids, smart phone DNA is pretty much intertwined with their own genetic makeup.

“ never assume that your message is being received in the same way that you’re sending it.” About a month before I wrote the first edition of MNB, Jobs had an equally impressive unveiling – the iPod. Again, I think it is fair to say that the iPod revolutionized the way people consume content. Sometime after that, I happened to be in Europe speaking at a retail technology conference, and I had with me a first generation iPod. I remember holding it up and describing how it offered a consumption-on-my-terms experience, and saying, “I’m not sure how, and I’m not sure when, but I’m pretty sure that this technology eventually is going to affect how we all do business.” Got that one right. Like I said above, I’m a reasonably good guesser. I had no great insights, but some decent instincts.

In the end, the lesson here is to be open to the possibility that everything we know to be true, to be real, to be of-the-moment, can in very short order be proven to be obsolete. Seemingly disconnected innovations and trends can actually train a spotlight on needed change within even an entrenched industry and successful companies. Sometimes it is simply a matter of definitions and imagination. And sometimes it is a matter of technology (even if it is as simple as a color printer). But always … always … it is a matter of being willing to continually, consistently, learn. Which is why, when I think about what I’ve learned over the past 20 years, what really gets me excited is what I’m going to learn during the next 20. ■

CAL I FO RNIA GRO CER | 11

Super A Foods Congratulates

Renee Amen

as CGA Board of Directors Chair

She will continue the proud tradition of the Amen Family as she follows in her father and brother’s footsteps

CAPITOL INSIDER

What to Expect in 2022

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

Why next year is shaping up to be one of the wildest for California politics in recent memory. Brown

I have said for a while, even numbered years add another level of chaos in Sacramento. Well, when that even number ends with a two, the level of chaos is off the charts! 2022 will be California’s second round with the Independent Redistricting Commission drawing the Assembly, Senate and Congressional district lines that will be used for the next 10 years.

Gov. Gavin Newsom will also be on the ballot in 2022. However, after defeating a recall by more than 20 points and entering the 2022-23 fiscal year with an estimated $25 billion surplus, his odds to being reelected without much of a challenge are very high.

oc k

We have already seen three members (Assembly Members Mullin and Salas and Senator Kamlager) announce a run for Congress, where there are no term limits. Assembly Member Levine will forego his

On top of this craziness, the Legislature is moving! That’s right. The annex building, which houses the Governor, Lieutenant Governor, most legislative offices, and a number of hearing rooms, is scheduled to be demolished in 2022 and rebuilt over the next 3-5 years. In the meantime, all legislative offices will be moved to a new building 2 blocks south of the Capitol.

iSt

As you may recall, voters stripped the California State Legislature of this authority via initiative in 2008. This round of redistricting happens to fall just two years before the class of 2012 is forced out of the Legislature due to term limits. The Class of 2012 was the first elected under the 12-year term limit rules and includes 35 members whose legislative career will come to an end, including the President Pro Tem of the Senate, the Speaker, and the Minority Leader of the Assembly. These term limits, along with the redrawing of lines is no doubt forcing many members to think about their next career move.

last two years with a challenge to existing Insurance Commissioner, Ricardo Lara. Assembly Members Bonta and Chau have accepted appointments to other offices resulting in resignation from the Assembly. Assembly Member Bloom is considering a run for LA County Supervisor. And, Assembly Member Jim Frazier also recently submitted his resignation, effective December 31, forgoing his last two years. No doubt, we will see more of these decisions made prior to the March 2022 filing deadline for the November election.

to the Attorney General’s office for title and summary. The topics include PAGA reform, sports wagering, water, commercial property taxes, single use plastics, electric vehicles, and union reform. A much smaller number will proceed forward with the costly effort of gathering signatures and ultimately campaigning before the voters. However, it’s likely we will see around 10 initiatives on the ballot in November 2022.

2022 will be an active year for initiatives. More than 40 initiatives have been submitted

Rumblings from legislative staff will lead you to believe that while everyone is happy about the annex being replaced, no one is happy with the new space. Most democrats will see their office space downsized. Conference rooms will be few and far between. And the clincher…staff will no longer be able to leave the Senate and Assembly Chambers and walk directly to their office. All these occurrences happening at the same time will make 2022 a year to remember. ■

CAL I FO RNIA GRO CER | 13

INSIDE THE BELTWAY

Year-End Reflection Brings Challenges, New Opportunities for 2022 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

The end of 2021 is rapidly approaching, which inevitably forces us to both look back at the past year and anticipate the types of events and themes that await us in 2022. 2021, in large part, was a continuation of many of the issues seen in 2020 related to the ongoing pandemic and the resulting supply chain challenges. While we expect to see some themes from 2021 carry into 2022, especially related to the pandemic and supply chain, there is an expectation that the policy agenda next year will start to return to more “life as normal” issues, or at least as normal as can be expected given the current environment. As background, FMI – the Food Industry Association brings together a wide range of members across the value chain – from retailers that sell to consumers, to producers that supply food and other products, as well as the wide variety of companies providing

critical services. The past two years have been one of the most challenging times for the food industry and for the country as a whole, but it has also put the industry in the spotlight and shown its resilience. Our workforce stepped up during the initial weeks of the pandemic to ensure that the shelves remained stocked and has tirelessly continued to do so every day since. Let’s honor our supermarket employees on the day set aside to reflect on their contributions, February 22, 2022! The challenges of 2021 were a little different than the early days of the pandemic in 2020, but each new challenge provided

an opportunity for our industry to help communities across the country. FMI put together a pharmacy community to engage with agencies and support their COVID-19 vaccination efforts while simultaneously elevating the critical role of supermarket pharmacies and advocating for our industry’s essential workers. As we strongly support these vaccination efforts and our ability to administer them to all ages, FMI joined other critical supply chain associations to challenge the administration’s vaccination and testing mandate out of concern that it would further enhance the ongoing labor challenges and severely disrupt an already constrained supply chain. We also continued our efforts to extend and enhance SNAP, in particular the P-EBT program, which provides critical benefits for children out of school program as well as disaster assistance.

iStock

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

Additionally, we worked to preserve critical tax policies like LIFO and stepped-up basis as lawmakers eyed these types of policies as potential pay-fors for legislation like the Build Back Better reconciliation package.

INSIDE THE BELTWAY

FMI worked to start a broad PBM Reform Coalition to reignite comprehensive PBM reform efforts and unite the efforts of the business community, patient advocates, and medical professionals who see PBM tactics as a threat to public health and patient care. These are just a sample of FMI’s involvement in critical policy issues in recent months. We are currently surveying members to identify priority issues where they want to see our advocacy efforts in 2022 and beyond as well as issues they see as potential disruptors to the industry and business as we know it. Many of the labor and supply chain challenges apparent today will continue into 2022, but we hope to see the disruptions ease over the next few months. We look to our members and the industry to keep us educated and informed on how we can help mitigate the ongoing challenges the food industry faces every day.

“even in a world with more and more big-box stores, consumers still find value in their local independent grocery store.” We anticipate that the policy agenda over the next year will continue to focus on supply chain capacity, the labor market, feeding assistance, pharmacy, transportation, sustainability, swipe fees, and organized retail crime as lawmakers continue the shift from pandemic response to economic and community recovery.

and the ongoing labor shortage, but FMI continues to work closely with lawmakers and the regulatory agencies to ensure that we can address these ongoing challenges and avoid any unnecessary regulatory burdens at this critical time. None of FMI’s efforts over the past year would have been possible without the incredible engagement and expertise from our member companies and state association partners. Thank you again for your engagement and feedback, and we look forward to working with you next year! ■

The impact of the pandemic will still be felt months and years from now, as shown through the many supply chain challenges

CAL I FO RNIA GRO CER | 15

LABOR, SUPPLY, AND A PANDEMIC CREATE A PERFECT STORM By Jessica Love Dumont

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

AS GROCERS GRAPPLE WITH MAJOR OBSTACLES, TECH COULD BE A BRIGHT SPOT. iStock

For the team at Mollie Stone’s, labor issues and out-of-stocks haven’t hit quite as hard in the last few months as they have other retailers. Although the challenges are still present, Mollie Stone’s has been able to manage them a bit better through Vori, a technology platform that helps independent grocers with inventory and order management. “There are just so many unknowns in the landscape today that we’re looking for efficiencies and ways to be mindful of the tasks that are going on inside of the store,” said Aaron Stone, vice president at Mollie Stone’s. Mollie Stone’s began working with Vori pre-pandemic, and having the partnership in place has been a significant benefit for the Bay Area grocery chain, which operates nine stores. For example, if one vendor that Mollie Stone’s works with is running low, Vori allows them to look at other partners as a secondary option for fulfillment, which has helped keep shelves stocked. “We’re transforming the inventory replenishment and management process,” said Brandon Hill, CEO of Vori. “With a simple application, a store director or manager can look at their shelves and instantly reorder from all of their primary vendors.”

Hill said Vori is 80 percent faster than other (more traditional) methods, saving staff time and helping them write better orders. But even with the added technology – or with similar proprietary technology that larger supermarket chains may have – labor woes and supply chain backlogs are still disrupting business as usual for Mollie Stone’s and other California food retailers. In fact, these issues have created a perfect storm: not enough products available, and not enough people to keep shelves stocked.

How did we get here – and how can grocers adapt? FMI (the Food Industry Association) has been studying supply chain, labor, and consumer demand since the beginning of the pandemic. According to one of its recent studies, demand for groceries jumped about 50 percent at the beginning of the pandemic – and as grocers saw at the time,

Continued on page 18 ▶ CAL I FO RNIA GRO CER | 17

◀ Continued from page 17

that demand strained the supply chain and kicked off a series of shortages that have continued to affect food retailers throughout 2021. According to Doug Baker, vice president of industry relations for FMI, that demand has not let up. “The way I describe it is you have this tug-of-war going on. We have increased demand – the demand has not abated yet,” Baker told CGA.

a ship. Rather, it’s what happens after it’s unloaded – when there aren’t enough people to transport goods and supplies. “There are a lot of nuances in the information being shared, but you can trace everything back to labor,” Baker said. “And then once you get past labor, it’s whether you have the equipment in order to be able to transport things through the supply chain.”

IN FACT, THESE ISSUES HAVE CREATED A PERFECT STORM: NOT ENOUGH PRODUCTS AVAILABLE, AND NOT ENOUGH PEOPLE TO KEEP SHELVES STOCKED.

At the same time, Foods Etc. has an advantage as a small, independent grocer with the ability to buy locally.

iStock

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

“Being a local community store we’ve had connections with a lot of local vendors, and we buy everything that’s available to us that we can locally,” Darling said – and notes that’s what he was doing prior to the pandemic as well.

FMI found in its research that about 46 percent of shoppers report noticing some items are not on their grocery store shelves, while 58 percent have reported concerns about food shortages for the 2021 holiday season.

The connection Foods Etc. has to the local community has also kept its stores well staffed even as others are struggle with labor, according to Darling. The Foods Etc. location in Clearlake employs 90 people, and the Susanville location employs 75.

All of these add up to challenges for retailers to stock food onto their shelves – which is driving them to get creative and try new brands or new suppliers. Baker said this is opening up opportunities for new products.

“I think there are a couple reasons for that,” he said. “We’re a good employer, so that’s a start. In our rural community, working at the grocery store is still a good job, so we haven’t had the labor issues that some other companies have had.”

“Retailers are looking for new sources of supply – brands they might never have carried in their stores before, for example,” he said. “It’s great for emerging brands or brands new to the U.S.”

Baker said that backlog has caused constraint around many different products, supplies, and components, and it changes from week to week. One day there could be a shortage of glue to seal boxes, Baker said. Another week it might be the nails needed to build pallets for product storage. Additionally, in many cases, shortages may not be the result of something floating on

According to owner Dennis Darling, Foods Etc. has used several different suppliers that it didn’t before the pandemic – especially when it comes to items like apple sauce, Cup O’ Noodles, and Lunchables. “We’re just trying to search for anybody that’s got it,” he told CGA. “It’s kind of crazy the items that have been in demand that you can’t get.”

Industry data demonstrates high consumer demand as well. According to IRI Worldwide’s CPG demand index, total CPG demand in California ranked 105 for the week ending Nov. 14, 2021 – indicating elevated demand since the pre-Covid time period. For perishables, California ranked 107. Notably, however, FMI reports there’s not actually a product shortage – just a backlog in how it’s getting to shelves. For example, some products are stuck floating in ports, while other goods are waiting on land to be transported. Images of congestion at the Port of Los Angeles, which most Americans have seen at some point in recent months, illustrate the problem.

That rings true for grocers large and small, including Foods Etc., which operates two independent grocery stores in Northern California: one in Clearlake and one in Susanville.

iStock

Darling said the average tenure for department heads is about 20 years, and many staff members are local high school or college students.

Industry-wide, grocers are struggling with staffing. In its annual survey of retailers, FMI found that 80 percent of respondents said their inability to attract and retain quality employees is negatively affecting their businesses.

WHAT'S DIFFERENT ABOUT VORI IS THAT IT'S MULTI-SIDED.

To offset these labor challenges, many are offering higher wages, bonuses, better benefits, flex time, skills training, and development – building on a trend that started during the pandemic when food retailers were recognizing their employees with things like hero pay and special bonuses. FMI reports food retailers invested nearly $10 billion in premium pay and bonuses for associations amid the pandemic. They also increased their team sizes by 10 percent.

Tapping into tech At Mollie Stone’s, Stone said staff turnover is an ongoing struggle – which is one more reason why tapping into technology through the Vori platform has been helpful. “When a new person comes on board, it’s not a steep learning curve,” Stone said. Mollie Stone’s is one of many grocers that sees the benefit of this investment. According to Baker with FMI, more retailers are now focusing on technology so they can better understand consumer preferences and forecast demand.

of the other grocers partnering with Vori include Oliver’s Market, Berkeley Bowl, and Woodlands Market. Hill explains that technology is not meant to replace or remove workers, however. “It’s more where you might be short labor or where you can benefit from automation to do mundane tasks and free you up for more important things like customer service. Vori can automate some of those value-eroding tasks,” he said. Hill grew up around the grocery industry. His parents have had careers in the business for more than 40 years and originally met while working at Price Chopper in upstate New York. So when Hill decided to start his own company, it was a natural fit to pursue an endeavor in the grocery space.

Stone said the ability to source things from the local level has opened up more options for Mollie Stone’s, especially because smaller grocers can be more nimble and work with multiple suppliers. With all the issues food retailers are facing today, tech platforms like this can be a bright spot that helps them improve their business. It’s also appealing to a younger generation of employees who are used to using technology in their daily lives – which is likely to be the case regardless of industry obstacles. “People who are working for us see the enhancement that Vori has unlocked for us, and are excited about it,” Stone said. “They are excited for the innovation, which hasn’t progressed to this level before, at least in our industry.”

“We’re starting right now with independent grocery, which is where our heart and soul is,” he said. Hill noted that most large retailers and corporate grocers have the resources to build out their own technology platforms in-house. Independent grocers, however, really need a solution like Vori, and his goal is to see the platform democratize food and provide better access. Vori offers grocers a simple application for their inventory replenishment and management process. It makes it possible for a store director or manager – or even a new employee – to look at their shelves and instantly reorder from their primary vendors. The platform also has a supplier portal that allows suppliers to take in an order and maintain their catalogue.

“They’re making some of the biggest technology investments in their businesses that we’ve seen in years as a result of the pandemic and the supply chain,” Baker said.

If a product is out of stock from one supplier – which is often the case nowadays – a retailer can go on Vori, search suppliers in their area, and use a keyword search to quickly identify product availability. That gives a store more options to access the products they need for their customers.

Based on Vori’s growth, that seems to be the case. Vori is proving to more than 100 food retailers and suppliers in California that technology is one tool they can use to adapt to an ever-changing landscape. Some

“What’s different about Vori is that it’s multi-sided,” Hill said. “It’s not just for retailers in a silo. Now, suppliers and retailers can talk directly, and that can prevent holes from forming on the shelves.”

iStock

While more grocers are embracing technology and looking for other ways to adapt to the current landscape, like trying new brands, the supply chain crisis and labor shortages will still take some time to abate. In the short term, Baker with FMI expects to see periodic shortages on certain products, as well as continued inflationary pressures. As for when there might be some relief around supply chain and related issues, that’s hard to predict. “I wouldn’t expect us to see a pre-pandemic store supply chain at all in 2022. We’re going to get better, but we’re not going to be out of it in 2022,” he said. *Mollie Stone’s is an investor in Vori. ■

CAL I FO RNIA GRO CER | 19

R e n e e A m e n Ta k e s t h e R e i n s a s New Board Chair of CGA Renee Amen has been a grocer since she was just 12 years old and started helping her father Lou Amen at his store, Super A Foods, in Hollywood, Calif. Lou would often bring Renee and her siblings to work with him, and Renee could be found bagging groceries or sorting through coupons while her brothers dealt with the stickier job of sorting the returned bottles. It was through those trips that Lou introduced Renee to the grocery industry, and his influence also later led Renee to become involved with the California Grocers Association.

Lou Amen

Now the new CGA board chair, Renee is helping to continue an Amen family legacy that started with her father and brother, who was also a CGA board chair. “Dad saw the value in CGA,” she says. “The annual Lobby Day... is very, very valuable. The other value in CGA is to meet and chat

with other employees and owners who share the same concerns. My father had friendships that lasted a lifetime.” After those early store visits with her dad, Renee continued to gravitate toward the grocery industry. Renee started working for Gelson’s in Newport Beach, Calif., in high school and stayed there through college while attending UCLA. Amen says she was lucky to be able to continue working for Gelson’s during her summer and holiday breaks. After college, she worked for Super A.

“ I’ve been a bagger, a cashier, a bookkeeper, back office in the late ‘80s, and a general merchandise buyer for many, many years. That’s where I learned a big piece of the business.” This background has helped Renee bring not only a special outlook to the grocery business but also an especially keen perspective of the political issues impacting the industry. She believes there needs to be more attention on the nuances and specifics in bills, and less on the polarizing or catchy headlines. Those perspectives, she says, will be meaningful in her role as CGA chair. Renee realized the true importance of CGA when Lou Amen passed away in May 2020. “It really showed how people in the industry are so connected for decades,” she says. “We are friends with people who started calling on our family 20, 30, even 40 years ago.” Continued on page 22 ▶

CAL I FO RNIA GRO CER | 21

◀ Continued from page 21

These days, Renee finds her own connections through her professional kinship with other members of the board, such as Hee-Sook Nelson and Phil Miller.

“ We’re all trying to do the best we can for our industry because we’re all really passionate about the grocery industry,” she says. Renee’s connection to CGA has been especially valuable during the pandemic as she connected with other CGA-affiliated stores to exchange details and ideas. Renee and other leaders have been emailing each other about health department protocols, state and county mandates, and rapidly changing regulations. “I’ve been able to meet all these amazing people and share what we are each doing in our stores,” she says. “We have been able to access individuals at the state calling the shots on COVID. We have had these learning experiences together for our organizations.” As the pandemic drags on, however, grocers like the Amen family are still dealing with another type of industry problem: shortages. For independent grocers like Super A Foods, the biggest challenges are supply chain issues. “But being a smaller grocer, we’re a lot more agile than a big chain. We can make choices without having to jump through a lot of hoops,” Renee says. “There are so many elements at play with shortages, so we just have to get creative.” Through the hard work of Renee’s sister, Jeanne Amen, Super A’s grocery buyer who is doing her best with a limited supply chain, the retailer began sourcing from mulitple vendors. Early on in the pandemic, the Amens even worked with a meat vendor who typically sold to cruise lines before COVID impacted that industry as well. “We had to constantly change and pivot with so many new vendors,” she says. “This was possible because we can pivot quickly.”

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

Super A Foods has also collaborated with its neighbors in nearby Hollywood. Movie shoots sometimes film at any of the eight Super A locations, including for the nowfamous serenade scene in the most recent adaptation of “A Star Is Born.” (Lady Gaga sings her first song to Bradley Cooper in the parking lot of a Super A where the store’s sign is clearly visible in the movie.) They were also featured in a Google commercial that ran during the last Super Bowl.

“ Customers often love it,” Renee says, referring to the filming. “It’s just fun!” Running a family-owned store isn’t always fun, but the Amen family manages to make it look easy, drawing the loyalty of customers and employees alike. In terms of customer loyalty, it helps that a lot of the stores “aren’t on big giant highways,” says Renee, but are instead “tucked into neighborhoods.” The Amen family has watched those neighborhoods grow and change since first opening in 1971, but the family’s commitment to customers and employees remains the same. According to Renee, many Super A Foods are in low- to middle-income areas that have shifted dramatically over the last few years. These neighborhoods have gentrified and changed, which has pushed up the housing prices.

“There are economic struggles in our neighborhoods, but we think of ourselves as a very fresh, local supermarket,” Renee says. “Our meat and produce are top notch while our prices stay very competitive.” Those prices keep customers coming back and shopping locally. According to Renee, “Loyalty is also very high among Super A employees.” Maybe that’s because most Super A employees feel like family, too. “Many employees have been with us for over 30 years, which is very unique to the world nowadays,” Renee says. In fact, a good number of employees started as young baggers at Super A Foods and later retired with the store. The family stores are also union stores with union wages and full benefits which likely contributes to attracting and retaining long-term employees. What also endears the family grocer to employees is its collaboration with the CGA Educational Foundation over the years; Super A Foods has given away more than a million dollars in scholarship money to employees and their children over the course of 20 years. “Doing things like that make your employees feel valued – like family,” Renee says. Jimmy Amen, Super A Foods CEO and Renee’s brother, has worked in the stores every day during the pandemic. And all of the stores’ supervisors are out on the floor on a daily basis “shoulder to shoulder like everyone else,” Renee says. “That builds comradery within the team.”

Within the CGA leadership team, Renee is dedicated to continuing the focus on diversity. Renee says – whether diversifying by race, gender or any other protected class – more diversity helps better serve CGA members.

“ That diversity gives us a good perspective we wouldn’t have if we didn’t look at the world that way.” It’s also the sort of perspective she wants to bring to her time as board chair at CGA. “We are trying to stay ahead to do the best for the employees, customers and families,’’ says Renee. “I want to continue the good work of making sure our board is diverse. CGA President and CEO Ron Fong has done a great job with this.”

Renee knows that staying ahead in the ever-changing, ever-challenging grocery industry can sometimes be tough but also knows that it’s never boring. “Every day we have to deal with something new,” Renee says. These days, the Amen family boasts a new generation of 21 grandchildren, 29 great grandchildren, and one great-great grandchild of Lou Amen. Renee and her siblings are carrying on the torch of family grocery every day while supplementing their success by giving back to the industry they grew up in via their involvement with CGA. And in her role as board chair, Renee remains committed to advancing the industry she has spent her life working in. ■

Renee Amen, Jaclyn Petrovich and Amanda Steinbeck

CAL I FO RNIA GRO CER | 23

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

It was a long two years that spanned the gap between 2019’s CGA Strategic Conference in Palm Springs and 2021’s in-person Strategic Conference. In between those two events, the Association traded the desert for the desktop, successfully hosting its first-ever virtual CGA Strategic Conference. Still, by the time late September arrived, the grocery community’s excitement at gathering again in person was palpable. Daily health checks and proof of vaccination or negative Covid test created the sense of protective bubble for attendees. The Association also recognized the Strategic Conference would be one of the first large business gatherings to return to in-person attendance, meaning some would prefer an additional level of support for interacting socially. Green, yellow, and red badge lanyards were offered to every conference registrant to allow them to signal their openness to handshakes, hugs, and other greetings. Green proved to be the overwhelming favorite amongst attendees. With safety concerns addressed, conference attendees could focus on getting down to business. The CGA team scheduled hundreds of meetings between suppliers, wholesalers, and retailers, and survey feedback demonstrates just how impactful these Live in-person meetings were after 18 months of restricted business travel and connections reliant on virtual technology. Buffeting the slate of pre-scheduled business meetings were best-in-class presentations from the conference’s keynote speakers. The CGA Strategic Conference kicked off with Bruce Kirkby, who regaled attendees during The Opening Experience with tales of exploration and adventure. Kirkby’s life has been shaped by his experiences climbing mountains, guiding river tours, and backpacking through wildlands. In the course of his journeys, he learned how purpose is what transforms the grind into the grit necessary to work through challenging times, which was the subject of his keynote. Monday’s general session began with a presentation from CGA President and CEO Ron Fong, Board Chair Hee-Sook Nelson, Immediate Past Chair Phil Miller, and The Illuminators Headlite Juan Trillas. Their keynote provided an overview of California’s grocery community – the political issues the industry has faced, the status of the grocery supply chain, and how social change impacts grocery stores.

“WE FELT THAT WE HAD MORE POSITIVE VENDOR MEETINGS THAN EVER BEFORE! THE SPEAKERS WERE EXCELLENT AND THE FACILITY HAS BEEN GREAT THE LAST TWO YEARS.” –RETAILER ATTENDEE

Continued on page 26 ▶

CAL I FO RNIA GRO CER | 25

◀ Continued from page 25

Following Monday morning’s session, Bonin Bough took to the stage. As humans, we easily become set in our ways. As grocers, often with decades of experience selling goods, the same is true. Which is why Bough, who also has years of experience marketing brands such as Oreo, focused his talk on the idea of disrupting oneself. During his keynote, the marketing and advertising executive turned firsthand experience into teachable moments. He even shared how his disruptive marketing philosophy led to, arguably, the most famous brand moment in social media history: The Oreo “Dunking in the Dark” Facebook post during the NFL’s championship mid-game power outage.

“THANK YOU FOR ALL YOU AND YOUR TEAMS DID TO MAKE THIS YEARS CGA STRATEGIC CONFERENCE EVENT HAPPEN. IT WAS GREAT TO SEE EVERYONE AGAIN IN PERSON. WE KNOW THERE WAS A LOT OF BEHIND THE SCENES WORK TO MAKE IT ALL HAPPEN. KNOW WE ARE APPRECIATIVE OF THE EFFORTS YOU ALL DID TO BRING US TOGETHER AGAIN.” –CONFERENCE SPONSOR Tuesday’s speaker content had a social science bent. Dr. Chris Thornberg, from UC Riverside’s School of Business Center for Economic Forecasting and Development, started the morning off with his take on the Covid economy. In “The Covid Recovery: Will the Real Economy Please Stand Up,” Thornberg shared myriad statistics to illustrate the difference between the country’s economic realities and how the media and elected officials describe the economy. During the Luncheon Keynote, Dr. Jay Van Bavel, who is an Associate Professor at the NYU Stern School of Business, utilized the latest psychological research about identity to illuminate his ideas for improved collaboration across teams. Van Bavel’s timely techniques showed how encouraging buy-in towards common goals and shared purpose can deliver outsized results for businesses. Hundreds of hours went into planning the 2021 CGA Strategic Conference. With more than 500 attendees excitedly gathering again in Palm Springs to collaborate, learn, and build plans for the future, it’s clear the grocery industry is more than just a business sector – it’s a community. A community focused on how it can emerge better together to face both new and familiar challenges.

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

2021 CGA STRATEGIC CONFERENCE SPONSORS CGA wishes to recognize and thank the many sponsors that helped to make this year’s conference a tremendous success.

PREMIUM SUITE

WHITEBOARD SESSIONS

DIRECTOR LEVEL

Anheuser-Busch InBev

RMS, Inc.

Baloian Farms

Bimbo Bakeries USA C&S Wholesale Grocers CA GROWN

OPENING GENERAL SESSION Instacart

Cam Services Certified Federal Credit Union Chemours

Chobani

AFTER-HOURS SOCIAL

Crown Poly, Inc

Jelly Belly Candy Co.

Molson Coors Beverage Company

DISTANT LANDS COFFEE

Kellogg Company Kimberly Clark Corporation Molson Coors Beverage Company Mondelez International Nestle Purina Petcare

WI-FI C&S Wholesale Grocers

CHARGING STATIONS GetUpside

PepsiCo Procter & Gamble Reyes Coca-Cola Bottling/ Coca-Cola North America RMS, Inc. The Hershey Company The Jel Sert Company The Kraft Heinz Company Tyson Foods, Inc. UNFI

ECOS e-Mission Control F. Gavina & Sons, Inc. Garda Construction, Inc. Hussmann Corporation/Aperion Lone Peak Labeling

ENTERPRISE RISK PROTECTION SUMMIT

PepsiCo

Front Line Safety

PreZero US Packaging, LLC.

RMS, Inc.

QM Power

PRESIDENT LEVEL Alkaline88 American Greetings/Papyrus Amplify Snack Brands Arcadia Publishing Constellation Brands

Reyes Coca-Cola Bottling Sioux Honey Association SnackFutures, a division of Mondelez Torani Italian Syrups TRUNO Retail Technology Solutions Unified Protective Services, Inc.

EXECUTIVE LEVEL

Ferrero USA

Classic Wines of California

EMERGING BRANDS

Flowers Foods

Botticelli Foods LLC

Chosen Foods

Frito-Lay

Organic Foods International

Danone North America

Harris Ranch Idahoan Foods

Rosewalk Global/Latvian American Chamber of Commerce

Inmar

Viva Tribe, LLC

REGISTRATION Post Consumer Brands

Itasca Retail

OPENING RECEPTION

KeHE Distributors

CA GROWN

Kind Brands

E. & J. Gallo Winery

Loacker USA NuCal Foods Phononic Wonderful Sales

CAL I FO RNIA GRO CER | 27

HOW TO LEVERAGE

emotioNAl

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

E e e N I T LLIG NC FOR DAILY SUCCESS BY RICH BRACKEN

What if I told you that listening to Prince (or your favorite artist) in the morning could help you perform better at work? What if you could increase your happiness by simply breathing more intentionally? What if I told you that your calendar could be an incredible weapon against anxiety and depression? They truly are all interlinked as elements that affect your emotional intelligence. Now, the societal fact is that most people in leadership positions will claim to have high emotional intelligence in their behavior and to “have it all together” whenever you ask them.

Science would beg to differ. • Forbes reported that 60 percent of leaders felt “used up” at the end of the day, a key factor in burnout and low emotional intelligence. • Harvard Business Review reports that nearly 90 percent of what sets top performers apart is due to high emotional intelligence. • They also report that while nearly 85 percent of leaders say they have high emotional intelligence, only around 17 percent actual exhibit behavior and traits of having it.

iStock

Continued on page 30 ▶

CAL I FO RNIA GRO CER | 29

◀ Continued from page 29

SO, WHAT IS EMOTIONAL INTELLIGENCE? I describe emotional intelligence as a dance with yourself and with others on a minuteby-minute basis. It’s truly understanding your emotions (self-awareness) and what you do with them reactively (self-management) which is a dance unto itself. We are all trying to navigate how we feel and what to do with those feelings as we are bombarded by e-mails, calls, Zoom meetings, social media, and more on a continual basis.

Then add in active listening and observation of others (social awareness) and how you manage their emotions with yours (relationship management), that dance sometimes seems more like a mosh pit than ballet. The key to all of this is how you manage yourself as you will never be able to control the behavior and emotions of others. However, when you are more in tune with your own emotions and engage in empathetic

leadership and active listening, you won’t have to change anyone’s behavior as they’ll start to change their own. A couple of points of good news: you can increase your emotional intelligence on a daily basis and most of the ways that you can are easy and actually quite fun. These are the top 5 ways that you can increase your emotional intelligence every single day:

1: PROTECT YOUR CALENDAR We often complain that there’s not enough time in the day but fail to acknowledge responsibility of saying “yes” too much. If you have priorities that you’re putting off, block time to address them to keep your needs met and your stress down. Additionally, when you go from meeting to meeting to meeting with no breaks in between, the priority of needs and action items fall and you leave yourself little to no time to react and respond. Schedule time in your day, every day, just to acknowledge a project or an issue to move it forward. iStock

2: REFLECTION THROUGH JOURNALING The key is self-reflection. By being more aware of your day, your actions, your reactions and bringing them all into a focus of what was good and not so good, you can understand where your triggers get the best of you. Keep a journal of things, people, meetings, or any other stimulus, that sends your mood in a different direction. Put that emotional response into words then practice a new response to take back your emotional energy.

3: MUSIC IS THE ANSWER Music has a profound effect on our mental status, so be your own emotional intelligence DJ. Build a playlist of songs that relax you, motivate you, or just make you happy and want to dance. Whenever you start to feel like you’re losing control of your emotions, flip on your personal playlist. Better yet, I highly recommend making a playlist for all moods that you encounter that will help you turn the corner on a bad direction.

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

“ When awareness is brought to an emotion, power is brought to your life.” – TARA MEYER ROBSON

4: MOVE YOUR BODY In as little as 15-20 minutes a day, exercise in any form is an endorphin charger that will help you balance your energy and emotions. Whether it’s to release stress or just disconnect for a while, this dedicated time will help you get your thoughts balanced and your physical well-being up. Especially as we’re sitting more than normal, it’s better that your body craves movement more than another dose of sugar to make it through.

Editor’s Note: Rich Bracken is a global keynote speaker, media personality, podcast host and inspirator. He routinely works with companies, associations, and individuals across the country looking to establish sustainable change and improvement in their approach to achieving their goals. Rich is a frequent speaker and writer on topics such as emotional intelligence, leadership, goal setting and achievement, change management, and communication. As a speaker, author, and professor of leadership, he has used his energetic, insightful and often comedic approach to influence leaders and global companies through his virtual and in-person keynotes as well as features with Fox News, CBS News, Thrive Global, Vice, Reader’s Digest, Western Independent Bankers, and the Legal Marketing Association.

5: SET STURDY BOUNDARIES One of the most valuable lessons we can learn is how to set proper boundaries for ourselves and for how others treat us. By simply and calmly expressing yourself and limiting any damaging conversations, you’re protecting yourself from unwarranted abuse and the weight of guilt and doubt that you carry afterwards. This also ties back to scheduling. Don’t be afraid of taking breaks, investing in your self-care or self-education. Simply set your out of office letting people know that you’ll be back in 20-30 minutes which will free you from the mental jail of having to check your phone every 2 minutes. ■

He also is the host of the uplifting EnRich Your Soul podcast and Inspirational Interruptions video series where he shares insight on motivation through his own experience as well as interviews with celebrities and thought leaders. You can learn more about Rich and connect with him at richbracken.com.

CAL I FO RNIA GRO CER | 31

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 #

Congratulations

Thank You

Renee Amen Super A Foods Incoming CGA Chair

Hee-Sook Nelson Gelson’s Markets Outgoing CGA Chair

FROM YOUR FRIENDS AT

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

Metaverse by Facebook CEO Mark Zuckerberg announced Facebook’s company rebrand to Meta at its annual Connect 2021 conference in late October. The newly branded “metaverse,” which the company says is the next evolution in a long line of social technologies, will bring together Facebook’s apps and technologies under one brand to connect people, find communities, and grow business. Meta plans to combine online social experiences with projects in the physical world and beyond.

iStock

Runway Ready Appliances

Tonal

DIGITAL RESISTANCE When gyms were closed for what felt like forever during the pandemic, many of us were catapulted into the world of at-home workouts. YouTube exercise videos replaced in-person classes and fitness companies pivoted to living-room friendly equipment. Among the new technology is Tonal at home gym, a wall-mounted screen system that combines about 150 different pieces of gym equipment into one. Tonal uses cables and digital resistance to simulate weights instead of conventional weights and dumbbells. Users can personalize workouts through artificial intelligence technology and a monthly membership. Think Lululemon’s “mirror” combined with Peloton.

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

In their latest collaboration, high-end appliance company SMEG and luxury designer Dolce & Gabbana wrap the silhouettes of retro kitchen appliances in bold, Italo-style prints for the Italian-made “Sicily is My Love,” collection. The collection intends to tell the story of Sicilian cuisine, and the cuisine of Italy itself, according to SMEG’s website. Products include a toaster, mixer, cappuccino machine, kettle, juicer and more, running from $650-$850.

Protein Pizza Vegetarians and vegans and flexitarians, oh my! Now that dietary restrictions are commonplace, gluten free and plant-based eaters will rejoice at Banza’s latest take on comfort food, the first-ever commercial chickpea-based crust available in the U.S. The pizza boasts 1.5x the protein, 2x the fiber and fewer net carbs and sodium than alternative crusts. It’s made of whole, plant-based ingredients including chickpeas, olive oil, yeast, and oregano. iStock

OUTSIDE THE BOX

CUBED MEALS MealCube, by emerging innovator Meepo, seeks to offer a nutrient-dense, efficient solution to world hunger and travel. MealCubes infuse high amounts of nutrition and calories into a pack of fruit flavored cubes. Each MealCube pack contains a “meal” of iStock four cubes containing 420 calories, 25 grams of protein, 28 grams of healthy fat, 23 grams of complex carbohydrates and 35 essential vitamins & minerals, retailing for $5-$7 per “meal.” The meal-replacer aims to serve the needs of travelers, athletes, healthcare institutions, educational settings, and government/military institutions.

Gender-neutral Beauty

International popstar and actor Harry Styles, known to break traditional barriers with genderfluid fashion, launched his own gender-neutral beauty brand, Pleasing. At present, the line is comprised of six products including nail polishes, a dual lip balm and eye serum, and a facial serum, but more collections are to come. Celebrity-led beauty launches have flooded the market over the past few years with releases from A-listers including Rihanna, Selena Gomez, Pharrell Williams, Ariana Grande, and Billie Eilish to name a few.

iStock

Ford’s Vintage Inspired EV As the saying goes, everything old is new again. Ford’s new Electric F-100 Eluminator Concept resembles a retro pickup truck, but with a modern twist. The EV, which was modeled after a heritage 1978 F-100 pickup, features all-wheel drive via two powerful electric motors. It is now available to purchase online or at a local dealer through Ford Performance Parts.

iStock iStock

Specialty Java at Home

Cometeer Coffee, the “earth’s first hyper-fresh coffee,” partnered with independent roasters iStock across the country to extract signature coffee blends into compact capsules for at-home use. This way, coffee lovers can enjoy fresh brews from favorite specialty cafés in their own kitchens. The capsules contain 26 grams of coffee that are flash frozen at peak flavor to later be melted at home with water or milk, iced or hot. Cometeer prioritizes sustainability and uses 100% recyclable aluminum capsules as packaging.

NYC’s Momofuku Instant Noodles Cult-favorite New York City-based restaurant company Momofuku by Chef David Chang has released its own line of instant noodles in collaboration with Asha. After a year-long development process, Momofuku created three flavors inspired by menu favorites at its very first restaurant location in the East Village: Soy & Scallion, Spicy Soy, and Tingly Chili Wavy. Notably, the noodles are preserved through an air-dry process instead of the fried preservation process used for most instant noodles.

CAL I FO RNIA GRO CER | 35

1 5 MINUTES WITH…

Trac ey Pr i e s t a nd Bruc e M ont gom e ry

After sharing their expertise on emerging brands at CGA Strategic Conference, Tracey and Bruce are back to talk innovation and what they expect in 2022.

How has the pandemic impacted emerging brands? Tracey & Bruce: The big change for emerging brands is not being able to meet in person with buyers. Everything has gone virtual. Things like ECRM conferences have become much more important, and we are more reliant on submitting through Range Me. Of course, you know, there weren’t any tradeshows until September, when there was Expo East and the CGA Strategic Conference in Palm Springs. So, it’s been very challenging to reach buyers who are working from home. Even things

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

like sending samples. You used to be able to send them to a corporate office, but you can’t do that anymore since they’re not in the office. Even the simplest things have become a challenge for smaller emerging brands. Another example of pandemic induced turmoil is that line reviews, new item meetings, annual planning schedules have all disrupted. The traditional calendar of meetings no longer exists – and may never come back as we used to know it. This lack of a set schedule is yet another challenge emerging brands must navigate.

Has retailers’ appetite for emerging brands changed during the pandemic? Tracey & Bruce: It has. A lot of buyers tell me they’re trying to keep their core SKU’s in stock. So, supply chain has been an issue, and a lot of buyers are struggling to meet with new brands or have category reviews due to these supply chain issues. It has gotten a little bit better during the past month or two, but it’s still a major challenge. The interest in emerging brands is still there for sure. However, buyers are rightfully concerned about smaller brands’

15 MINUTES WITH… ability to execute if the larger, established brands are struggling. How is the supply chain impacting emerging brands? Tracey & Bruce: Even getting caps and lids for products is a problem – they’re stuck on boats. If you’re a small emerging brand and reliant on anything coming from overseas, you’re experiencing quite a challenge. Although, shipping within the US, where you’re reliant on a truck firm to come pick up the product to deliver to a retailer, even that is quite a challenge. Supply chain is hitting retailers and brands, and we anticipate that will continue into 2022 until solutions are developed and implemented. Emerging brands face the additional mental hurdle in the minds of buyers: “if my big brands are struggling with supply chain issues, how can small brands not be under even greater pressure?” How has the private equity picture changed? Tracey & Bruce: Private equity continues to look for innovative brands and companies. Big companies are not innovating – they buy innovative brands instead. If a brand is gaining traction in the market, has solid IP, and a meaningful point of difference that can be communicated to consumers – private equity will find you. Depending on the PE firm, they can bring cash, contacts, and subject matter expertise to accelerate an emerging brands growth. What are some of the trends for emerging brands in terms of what buyers are looking for? Tracey & Bruce: Plant-based is big. Health and wellness is big. Natural, friend of the earth are also on trend. Buyers are really looking for innovation. They’re not looking for the eleventh brand of gluten-free chocolate chip cookies. You’ve really got to be able to articulate to a buyer how you’re different and how you compare to other brands in the category where you are competing. If you have something innovative and new, you have

a good shot. It’s not about sell-in it’s about sell-through, as we talk about all the time. The retailers want to know how a brand will be supported within the store. Emerging brands need to understand they need the capital to support sales once on the store shelf. And in the vast majority of cases, they will want an emerging brand to at least meet their category margin if not be accretive. How are you thinking about positioning brands through marketing and advertising? Tracey & Bruce: A lot of it is social media. It’s Facebook and Instagram followers. It’s influencers. We’ve worked with brands that have built followings just from TikTok videos going viral. Demos are coming back, but they are expensive. They are effective, but expensive for emerging brands. Retailers are reintroducing demos, and in some regards, that makes sense for emerging brands. It really depends on the brand and what they can afford to do. But social media is the way to drive brand awareness. We then ask to work with the retailer to collaborate to build awareness of the brand at the store level. Above all, the brand has to have a cohesive, integrated marketing plan: drive awareness, trial, and repeat against the consumer. This needs to be coupled with a solid plan at each retailer if you are going the brick and mortar route. It is vital that the brand “gets turning” at retail quickly. The report card at retail is generally 6-9 months – meaning if you are not hitting velocity hurdles by then – you will be getting some uncomfortable communication from the retailer. They need their shelves to be productive. There has been a lot of talk about how privacy changes around data have added a new degree of difficulty to paid social advertising. Is that having an impact on your brand-building strategies? Tracey: Absolutely, you need to build organically. You need to be real; you need to be authentic. It’s not just about the paid strategy. A lot of it is trying to build organic communities around the brand and its story.

What do expect for 2022? Tracey & Bruce: For the most part, we expect retailers to return to their offices on a hybrid schedule. At the same time, I think buyers have learned they can have meetings on Zoom, Teams, or an online portal, and that might be a better use of my time. We believe that a hybrid meeting model will emerge: some in-person meetings, virtual meetings, and live or virtual trade shows. We do believe tradeshows will come back as the pandemic settles or we all learn how to safely work in the ‘new normal’. UNFI and KeHE have already scheduled their shows. ExpoWest in Anaheim is on, and others. Category reviews should get back on schedule, and we have already been a part of a few reviews and we believe this will continue. As far as ECRM, there will be some in-person shows and virtual as well – this hybrid model is here for a while. What advice do you have for retail buyers in search of innovative brands? Tracey & Bruce: Range me is a great tool to look at. Be open to innovation and understand those small emerging brands are trying to make an impact. Whether its wellness or sustainability, the retailers who will win next year will be those open to collaborating with emerging brands and looking to be innovative. Retailers also need to truly understand that these emerging brands can’t be held to the exact same playbook as a buyer’s Fortune 200 suppliers. There will be some hiccups, they are not as well funded, and a buyer may need to be patient and explain things that the more sophisticated vendors have known for years. So if you are a retailer and want to be known as a place where emerging brands get a shot – you will have to be somewhat flexible. We’re still going to have supply chain issues. Nobody wins with empty shelves so if you can replace those with new innovative items that is a strategy to win. ■

CAL I FO RNIA GRO CER | 37

California Grocer, Issue 4, 2021

Articles inside

Tracey Priest and Bruce Montgomery

The Lessons from 20 Years of MorningNewsBeat.com

Future of CGA

CGA News

New Retail Perspectives