New Jersey Grocer, Issue 1, 2017

New Jersey 20 17,FEBRUARY-MARCH

CREATIVITY DRIVES the new

shopping experience

N E W JE R S E Y FO O D CO U N C I L

CONTENTS | FEBRUARY-MARCH

FEATURES

COLUMNS President’s Message New Chair Takes Historical Role. . . . . . . . 6

24 Creativity Drives the New Shopping Experience A leading futurist has a word of warning for the grocery industry: start addressing the threat of online competition or you could end up as “Blockbusters in a Netflix world.”

Government Relations At Work in the Statehouse: Victories, Opportunities and Challenges. . . . . . . . . . 8 Inside the Beltway Unleashing a Populist Wave Against #UnfairSwipeFees.. . . . . . . . . . . . . . . . . . . . . 15 Washington Report A New Administration Creates New Opportunities. . . . . . . . . . . . . . . . . . . . 16 Viewpoint Going, Going...Gone. . . . . . . . . . . . . . . . . . . 20

30 Everyone Likes a Good Story Consumers are increasingly being romanced by the stories that products are telling about their origin, ingredients or inspiration. Mintel Global Food & Drink Analyst Patty Johnson explains why everyone loves a good story.

New Column:

MOMMY BLOGGER

43

Insights into one of your most important customers: Moms.

DEPARTMENTS NJFC News.. . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Outside the Box. . . . . . . . . . . . . . . . . . . . . . . 22

38

15 Minutes With…

Eric Saperston .. . . . . . . . . . . . . . . . . . . . . . . . 40

Becoming a Heart-Led Leader Noted author Tommy Spaulding shares stories and leadership lessons of heart-led leaders that prove that living and leading from the heart will change your organization, your career and your life.

20

!

NEW JERS EY GRO CER | 3

NJFC | BOARD OF DIRECTORS

officers

DIRECTORS

new jersey food council

Chair Richard J. Saker Saker ShopRites

Associate Vice Chair Joseph H. McCarthy Bimbo Bakeries USA

Secretary Joe Sofia Wegmans Foods Markets

Vice Chair Michael Murphy QuickChek Corporation

Treasurer Michael Rothwell Pennington Quality Market

President & CEO Linda M. Doherty New Jersey Food Council

Dan Croce Acme Markets

Peter Rojek Fairway Market

Howard Kent Krasdale Foods

Colleen Meares Stop & Shop Supermarkets

Debbie Pregiato Advantage Solutions

Phil Scaduto Food Circus

James J. McCaffrey III McCaffrey’s Markets

Jason Ravitz Ravitz Family Markets

Ken Weingartner C&S Wholesale Grocers

Andrew Kent Glass Gardens

Michael Biase Mission Foods

Frank Mastrangelo Supervalu, Eastern Region

Kelly Johnston Campbell Soup Company

Luis Tejada Goya Foods

John Wachter Murphy’s Markets

Rebecca Peifer Unilever

Eva Kohn CBA Industries

Joseph F. Pagano Inserra Supermarkets

Jody Avalione Nestle USA

William Sumas Village Supermarkets

Michael Sullivan Coca-Cola Refreshments USA

Judy Spires Kings Foods Markets

David Maniaci Nicholas Markets

Richard Wood Wawa

Rafael Cuellar Cuellar Family ShopRites

Lisa Angeles Kraft Heinz Company

Leonard J. Sitar ShopRite of Carteret

Christina Minardi Whole Foods Market

President & CEO Linda M. Doherty

New Jersey Grocer Editor is the official publication of the Gary La Spisa II New Jersey Food Council. glaspisa@njfoodcouncil.com

Asst. V.P. for Govt. Affairs Mary Ellen Peppard Director of Public Affairs Gary La Spisa, II Executive Assistant Office Manager Sandy Malecki Meeting Planner Barbara Yuson Financial Manager Christine Higgins

4 | NE W J E R S E Y G R OC E R

30 West Lafayette St. Trenton, NJ 08608 (609) 392-8899 (609) 396-6571 Fax www.njfoodcouncil.com For association members, subscription is included in membership dues. © 2017 New Jersey Food Council

For advertising information contact: Bill Kaprelian bkaprelian@cagrocers.com

2017 NJFC Sponsors New Jersey Food Council wishes to recognize the following companies for their generous support.

PLATINUM SPONSORS

BRONZE SPONSORS

Acme Markets

Acosta Sales & Marketing

Bimbo Bakeries

Advantage Solutions

Coca-Cola Refreshments USA

Chase

Pepsi Beverages Company

Connell Foley

Wakefern Food Corporation

Crossmark

Wegmans Food Markets

Goya Foods Kraft Heinz Company

GOLD SPONSORS

Lidestri Foods, Inc.

Allegiance Retail Services

Mazars USA

Cargill Salt, Inc./

Mission Foods

Cargill Turkey & Cooked Meats Inserra Supermarkets Saker ShopRites Stop & Shop Supermarkets Village Supermarkets Whole Foods Market

SILVER SPONSORS CBA Industries C&S Wholesale Grocers Kings Food Markets QuickChek Corporation Supervalu Wawa

Mondelez International RoNetco Supermarkets TD Bank Zallie Supermarkets

BRASS SPONSORS McCaffrey’s Markets Murphy’s Markets Nicholas Markets Pennington Quality Market Ravitz Family Markets ShopRite of Hunterdon County ShopRite of Rochelle Park Somerset Stores

PRESIDENT’S MESSAGE

new chair takes historical role

L I N DA DO H ER T Y PR E S IDE N T N EW JER S EY FOOD COUN CIL

The New year brings a transition of new executive leadership at the food council and provides an historical perspective back to the origin of NJFC. Richard Saker rises to the helm as our incoming Chairman of the Board after having served as Vice Chair.

What makes Richard’s leadership position so special is his father Joe Saker was a founder and served as the first Chairman of the Board of NJFC. This is the first time a second generation family member has served as our executive leader.

In 1969, NJFC was born in the living room of the Saker Family when Richard’s father Joe Saker and a group of supermarket pioneers recognized the food

retail industry did not have one common and unified voice in Trenton.

This group developed a well-crafted plan to bring large grocery stores and small, independent food retailers together to strengthen the industry under a unified state association.

This path and foresight gave birth to the Food Council with its mission to promote and protect the interests of food retailers before state government. The group named Joe Saker its first Chairman of the Board.

Almost 50 years later, Richard carries the tradition and hope his father created in their family living room as he takes the helm as the nineteenth NJFC Chairman of the Board.

N JFC C h a i r m a n R ic h a rd S ak e r with Lt. Gov e r n or K im G uadag n o a n d f o r m e r G ov e r n or Don ald De F ran c e sc o.

6 | NE W J E R S E Y G R OC E R

Richard Saker is the Chairman, President and CEO of Saker Holdings Corporation and Saker ShopRites, Inc., owner and operator of 30 ShopRite Supermarkets, 29 pharmacies, 2 liquor stores, and Dearborn Market and Garden Center.

Incoming Cha ir ma n Richa rd Saker w i t h o utgoing Cha ir Judy Spires.

Saker ShopRites is one of the highest average volume per store supermarket chains in the country, employing nearly 9,000 associates.

Also joining Richard as officers in 2017 are Vice Chair Mike Murphy, Senior Vice President of QuickChek Corporation and Secretary Joe Sofia, Senior Vice President of Wegmans Food Markets. Associate Vice Chair Joe McCarthy, Vice President Metro Atlantic of Bimbo Bakeries, and Treasurer Mike Rothwell, Vice President and General Manager of Pennington Quality Market, will continue in their roles for another term.

Judy Spires, CEO of Kings Food Markets, steps down after completing three successful terms as Chair. Under Judy’s watch, we have grown as an association in political clout, association effectiveness,

PRESIDENT’S MESSAGE

member activism and the establishment of new programs and events to position our future sustainability.

Judy is a thoughtful, open minded and enthusiastic leader who provides encouraging support and perseverance to all facets of our overall agenda. Her impactful role as our leader has fostered the undeniable success we realize today.

As the next generation guides NJFC, we are excited for the future, and anticipate steady and effective leadership as we move forward with unknown challenges to face our industry. We are certain the membership will rally behind Richard, the new executive team and provide the support, attention and action necessary to meet our long-term objectives.

Lt. Gov e r nor Kim Gua da gno sw ea rs in the 2017 sla te of officers.

With the new Trump Administration taking office in Washington DC, and the upcoming NJ gubernatorial election in 2017, we expect the unexpected. One

thing we can be sure of is our clear path to continue to implement our refreshed strategic plan for opportunity, business prosperity and hope for better days ahead.

Give your business more than canned solutions.

Whether it’s questions about payment card data compliance, cybersecurity, tax incentives, or transaction services, our industry expertise means you spend more time on what matters and less time educating us on your business.

Put our knowledge to work for you.

Certified Public Accountants | Business Consultants

W W W. M O S S A D A M S . C O M / R E TA I L

NEW JERS EY GRO CER | 7

GOVERNMENT RELATIONS

at work in the statehouse: victories, opportunities and challenges M A RY EL L EN PEPPA R D N JFC AS S IS TAN T V ICE PR E S IDENT OF GOV ER N MEN T R ELATION S

2016 was an intense year for the New jersey food council and 2017 is shaping up to be just the same.

2016 was an intense year for the New Jersey Food Council, and we expect 2017 to be extremely busy as well, with Gubernatorial and legislative elections looming in 2018. It is a crowded Gubernatorial field, and there will be many changes within the Legislature due to a number of retirements.

Our most significant victory this past year was keeping a minimum wage increase off the ballot. Legislative leadership had proposed a ballot question in response to Governor Christie’s veto of their $15 minimum wage legislation.

NJFC hired an economist to examine the economic impact on jobs, lost hours, grocery prices and senior citizens. We developed an aggressive schedule to meet with key legislators, policy makers, the Administration and the Lt. Governor to share highlights of this study. After approximately 50 meetings with key

policymakers, we were able to fend off the ballot question for 2017.

The Democratic Majority in the Legislature is unlikely to put a bill on the Governor’s desk, knowing that it will be vetoed.

However, we expect this issue to return if New Jersey elects a new Democratic Governor in 2018. In preparation for this battle, we continue to educate legislators on the impact of raising the wage to $15 an hour.

We are pleased that the Governor signed into law legislation NJFC has been advocating which would provide our members with greater clarity on New Jersey’s price-gouging regulations during a state of emergency.

This bill would automatically sunset the price gouging statute 30 days after the declaration of a State of Emergency unless

“Our most significant victory this past year was keeping a minimum wage increase off the ballot.”

8 | NE W J E R S E Y G R OC E R

the Governor extends the declaration in 10 day increments.

Currently the statute is in effect for 30 days after the declaration is rescinded, however Governor Christie routinely does not formally rescind his declarations, leaving members open to technical violations of the law and fines despite there being no active emergency.

We expect to continue our advocacy efforts on a number of labor initiatives that we were successful in stalling, including paid sick leave, restrictive scheduling, and wage theft. We continue to stress to legislators the need for flexibility and the unintended consequences of one size fits all mandates.

A new issue we are working on is legislation which would limit indemnity clauses in snowplow or de-icing service contracts.

NJFC opposes this bill, which interferes with contract negotiations and benefits one industry at the expense of many others, including the food retail and distribution industry. The costs associated with running a snow removal business, including insurance, are included in the price of the contract.

The bill language is unclear and may result in shifting liability to the property owner for property damage or bodily

GOVERNMENT RELATIONS

“We are pleased the governor signed into law legislation NJFC has been advocating which would provide our members with greater clarity on new jersey's price-gouging regulations during a state of emergency.” injury in circumstances where the snow plow operator should bear the liability. To date, NJFC helped organize a 16-member coalition to fight this misguided proposal.

Unfortunately, despite months of advocacy by NJFC and members, Governor Christie conditionally vetoed legislation which would have retroactively extended for two years the Urban Enterprise Zone (UEZ) designation of the five UEZ’s which expired at the end

of 2016: Camden, Trenton, Newark, Plainfield and Bridgeton.

The Governor’s conditional veto directs the Commissioner of Community Affairs, in consultation with other departments and agencies, to complete a six-month review of the UEZ program and make a recommendation to the Governor and Legislature whether there is an alternative location-based program to assist fiscally distressed municipalities.

On the federal level, we see a number of opportunities with the new Trump Administration. We will be working with our national partners on a number of critical issues, including Affordable Care Act reform, menu labeling reform, tax reform, preservation of the Durbin amendment, relief from onerous DOL directives, and SNAP choice issues.

S TAT E S E N ATE BEGI N S C O N SI DE RATION OF DATE L ABE LIN G MAN DATE B y G A RY L A S P I S A N J F C D I R EC TO R O F P U B L I C A F FA I R S

In late February, Senate Environment Committee Chairman Bob Smith introduced legislation to impose a statelevel date labeling law in New Jersey.

Ironically, the introduction came the same week that the Food Marketing Institute and Grocery Manufacturers Association introduced their initiative to voluntarily standardize date labeling nation-wide before July of 2018.

This voluntary action by the industry will eventually lead to only two standard labels which can be clearly understood by the consumer and we hope that will translate to consumers wasting less food.

Currently, there are at least ten different quality or safety related date labels which

are in use, leading to consumer confusion and increased food waste. The new legislation would eliminate the use of Sell By dating in New Jersey and require new specific verbiage.

If enacted all products in the state would only be permitted to bear “best if used by” and “expires on.” While the Food Council appreciates the intent of the legislation to simplify date labeling in the State, we are very concerned that such a bill could inadvertently harm our continued efforts to solve this problem comprehensively on the national level.

As multi-state operators, members are also concerned that reforming the date labeling process on a state-by-state basis would make it extremely difficult and costly to comply with each of the various state laws with different definitions and standards,

particularly because manufacturers often do not control what state each individual package is sent to once it is taken by a distributor.

This could lead to New Jersey labeled products ending up in other states, and non-New Jersey compliant labels ending up in our state through no fault of the manufacturers. This would unnecessarily open members up to thousands of dollars in fines.

These different standards also undermine labeling consistency, confuse consumers, and raise the costs of food.

NJFC continues to work to stop this state legislation and support the efforts of our national partners and our members to more comprehensively solve this problem on the national level.

NEW JERS EY GRO CER | 9

NJFC NEWS N J FC TA KE S BOA RD SEAT O N NE W B U SINE SS C OALITION OpportunityNJ (ONJ) is a non-partisan, grassroots coalition comprised of New Jersey interests representing employers, employees, business, trade groups, community organizations and other concerned citizens in the State.

With no direct ties to political parties or government, ONJ serves as an independent voice to provide data based education about New Jersey policy actions – and to support policies that encourage job growth, affordability and prosperity in New Jersey.

New Jersey has long held the distinction of being the “innovation state”. It’s been an industrial powerhouse, the home to gamechanging technologies and lifesaving pharmaceuticals – driving significant growth in jobs and the economy.

And, in the process, local citizens and communities have realized one of the highest standards of living in the nation.

Yet, somewhere along the way, the knowledge and understanding of what created a strong New Jersey has been lost.

Burdensome taxes and regulations have driven businesses, jobs and our own citizens – those who helped build this State – away. In fact, today: •

New Jersey ranks dead last in national rankings on the impacts of our four most significant taxes: property, income, sales and corporate business tax.

•

Outmigration of New Jersey residents has had a significant impact on the state’s economy. High taxes and numerous barriers for business operations are causing people to leave the state which has led to the loss of income, economic activity and job creation.

•

been resolved, the focus needs to shift to infrastructure improvements that promote economic growth and quality of life.

•

Confront the challenges facing our aging energy and water infrastructure.

That’s why Opportunity NJ has been formed – to rebuild and maintain an environment that encourages and supports job creation, business opportunity and an affordable New Jersey for all residents.

Now that the funding mechanism for the transportation trust fund has

FOO D C O U N C I L HO S T S SP EC I AL TR E AT FOR WALK TO WASH IN GTON During this year's Walk to Washington event, NJFC and the Restaurant & Hospitality Association co-hosted a special treat for the attendees and distributed New Jersey food products in Car 10.

including dozens of legislators and several candidates for governor all traveling on a chartered Amtrak train to a reception in Washington, D.C.

These two leading business associations in Trenton distributed food and drinks to the hungry “Walkers” as they made their way through the crowded cars on the way to Washington. The goodies created such a buzz that the Food Council and the Restaurant Association were included in the winners of the weeks by Politifax’s Nick Acocella.

Thank you to our members who donated the products which were distributed on the train, including: Bimbo Bakeries, Campbell Soup Company, Food Circus Supermarkets, Kings Food Markets, Mission Foods, Pennington Quality Market, QuickChek Corporation, and Wegmans Food Markets.

The 80th Chamber of Commerce Walk to Washington featured over 1,000 attendees 10 | NE W J E R S E Y G R OC E R

NJFC P resident Linda Doherty, Food Cou nci l C o mmi t t ee for Good Gover nment Cha ir P hil Sca duto, NJFC E nvi ro nment Committee Cha ir Courtney Fa ga n a n d NJFC Go ver nment Affa irs Committee Cha ir Suza nne Del Vecchi o .

NJFC NEWS

NJFC NEWS FM I H O N OR S JO E C O L A L I L LO AS A " C H AMPION OF NE W IDE AS" It is impossible to think about the food industry in New Jersey without considering the Colalillo family, part of the industry for more than 70 years.

It is also of no surprise that the Food Marketing Institute (FMI) has decided to honor Joe Colalillo, President of ShopRite of Hunterdon County, Inc. and Chairman and CEO of Wakefern Food Corp., with the “Wegman Award.”

He is a former member of the New Jersey Food Council’s Board of Directors and received its Lifetime Achievement Award in 2005.

"Joe Colalillo is an exceptional food industry executive with a unique and impactful leadership style. As a former NJFC Board member and industry influencer, we are so fortunate that his innovative and collaborative approach to the food business and generous commitment to New Jersey Food Council have a lasting impact on our purpose.

We remain grateful for his leadership. stewardship and friendship,” said NJFC President Linda Doherty.

“Joe is a champion of new ideas – he has consistently embraced new industry initiatives that empower businesses to better serve the consumer,” said FMI President and CEO Leslie G. Sarasin.

The award is given to an industry professional who has demonstrated strong entrepreneurial leadership in the design of retail strategies and imaginative merchandising. Colalillo is a leading proponent of the food safety training program, SafeMark™, ensuring all of his employees are trained and certified.

“Joe is a straight talking, honest broker of goods and services and he inspires our industry to maintain its relevance by his keen commitment to doing what is right for the customer,” Sarasin said.

The industry has recognized Colalillo for launching consumer-facing technologies, initiating seafood sustainability programs, cultivating associate engagement and implementing health and wellness solutions in ShopRite stores.

“It's an honor to be recognized by FMI, and I am accepting this award on behalf of

FMI P resident & CEO Leslie Sar as i n w i t h Jo e Cola lillo, ShopRite.

all our associates who work in our stores and help make ShopRite of Hunterdon County a successful company,” Colalillo told The Star-Ledger. “I'm proud to be part of the grocery industry and to work closely with other members and Wakefern in our cooperative to create the very best supermarkets we can for our customers.”

Colalillo has maintained his familyowned business, founded in the late 1940s by his father, Joseph A. Colalillo. The Colalillo family owns and operates five ShopRite stores.

“S TO R E TO U R T UESDAYS” RES U ME S WITH VISIT TO MCC AFFR E Y’S NJFC continued our successful Store Tour Tuesdays program with a successful tour of McCaffrey's Market in Princeton with Assemblyman Andrew Zwicker (D-16).

The tour was an opportunity for Assemblyman Zwicker to see first-hand the numerous ways that our industry is regulated by all levels of government.

The tour covered key food industry issues at all levels of government, including: menu labeling, weights & measures reform, reforming the regulations on striped bass sales in New Jersey, a statewide plan to reduce the use of disposable grocery bags, and numerous key labor policies.

NJFC staff were joined for the tour by Fred Brohm, Chief Operating Officer, and Paul Demos, Director of Store Operations, from McCaffrey's Markets.

Senator Theresa Ruiz will be the next state legislator to visit one of our stores when she visits the ShopRite of Newark next month. NJFC members wanting to host a

Members of the NJFC a nd M cC aff rey's Market tea m w ith Assemblyma n A ndrew Zw i cker during the store tour.

legislator tour should reach out to Gary La Spisa at glaspisa@njfoodcouncil.com.

NEW JERS EY GRO CER | 11

NJFC NEWS N I G H T O F D I S T I N C T I O N HO N ORS PRE S TIGIOU S LIS T OF H ON OREES The New Jersey Food Council will host the prestigious Night of Distinction reception Thursday, March 23, 6:00 p.m. at The Palace at Somerset Park, Somerset, NJ. The event, with its powerful slate of honorees, draws over 500 guests including prominent food industry executives.

Guests will enjoy delectable cuisine, live music, and a silent auction that supports the NJFC Educational Development Scholarship Program.

New Jersey Food Council is proud to announce its 2017 Night of Distinction honorees who will be presented with Industry Achievement Awards for their meaningful contributions to advance the mission of the Food Council, for achieving significant food business success, and for their history of civic service within the New Jersey food community.

This year’s honorees are John Derderian, President of Allegiance Retail Services; Frank Mastrangelo, Area Marketing Director of SuperValu; and Nico Sumas, Chief Marketing Officer of Village ShopRite Supermarkets Inc. “We are excited to honor these three men and their organizations as stellar members of NJFC that work to support our efforts and our association’s mission.” said Linda Doherty, NJFC President. And she added, “This special recognition truly makes this night the New Jersey food industry event of the year.”

John Derderian leads a supermarket cooperative of about 100 stores headquartered in Central New Jersey.

Allegiance provides merchandising, marketing, technology and various other services to its members including 12 | NE W J E R S E Y G R OC E R

Foodtown, D’Agostino’s, Freshtown, Uncle Giuseppe’s, Brooklyn Harvest, LaBella Markets, Market Fresh, and Big Deal.

Nicholas J. Sumas II (Nico) is Chief Marketing Officer of Village Super Market Inc. (a member of Wakefern Food Corporation) which operates 29 ShopRite supermarkets in New Jersey, Pennsylvania and Maryland.

Nico, a third-generation grocer, has worked in almost all facets of the family business since he was 14 years old. Today, he works alongside his extended family to fulfill their mission of helping families live better.

Frank Mastrangelo, Area Marketing Director of SuperValu is a 34 year industry veteran, who began his career as a manufacturer representative at Mrs. Paul’s moving onto retail and foodservice supply chain services with Rotelle, Richfood, Fleming, AWI and currently Supervalu. Frank has served on the NJFC Board of Directors for the past 12 years and has been an active member of the Council’s Finance Committee for eight years.

Join us to honor John, Frank and Nico on March 23. Tickets can be reserved online at www. njfoodcouncil.com/events or by calling NJFC at 609.392.8899.

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INSIDE THE BELTWAY

Unleashing a Populist Wave Against #UnfairSwipeFees J EN N I F ER H ATC H ER S E N IOR V ICE PR E S IDE N T GOV ER N MEN T AN D PUBLIC AFFAIRS FOOD MAR K E TIN G IN S T ITUTE

The Food Marketing Institute (FMI) recently launched a website and digital campaign to shine a light on the swipe fees practices of big banks and card companies.

On the FMI website, we ask consumers to join our grassroots efforts to keep credit and debit card fees in check by signing the petition found on the Citizens Against Unfair Swipe Fees (www.unfairswipefees.com).

We would love for you to lend a hand by engaging on social media. Like us or comment on Facebook. Retweet information on Twitter. Any help in raising consumer awareness and directing traffic to the website would be greatly appreciated.

We know when the newly elected Congress returns to Washington, one of their agenda items is the repeal of the Dodd-Frank Wall Street Reform and Consumer Protection Act. As you know, the only control or oversight of swipe fees currently in place is a hard-fought amendment included in the 2010 DoddFrank legislation that allowed the Federal Reserve to monitor and put caps on debit fees and required at least two ways to route a transaction – i.e. competition!

Obviously, this second one is a tough one to explain, however, consumers are quick to understand that it is better to have 12

highways to go down than one (for everyone except the person who collects the toll).

The existence of 12 regional networks to route a transaction instead of one means there are options if a particular option goes down – greater “up time.”

Also, if a retailer is more comfortable with a particular network’s security protections or lower price, transactions can be routed there first.

Our goal with this campaign is to educate consumers about the high fees merchants and ultimately, consumers, are charged by big banks and card companies every time a card is swiped or dipped – $79 billion per year and $2,500 per second. A ticker on the website calculates this for visitors.

Our hope is that by showing consumers how much big banks/card companies collect from every swipe and dip that they will be willing to engage with their Members of Congress to keep these checks on debit cards in place.

Americans pay the highest swipe fees in the world and this is one arena in which I am reasonably sure we do not wish to remain

number one. This year, let’s be aware and intentional about who receives our holiday gifts.

Post Christmas, the campaign changed from presents to holiday returns and evolved a gain as the Super Bowl approached.

Again, our goal is to be visible, not just with grocers and associates, but also with consumers, as we know the only way to win this fight on Capitol Hill is to have our customers’ support.

When the Senate and House reconvened in January, one item anticipated to receive an early floor vote was an attempt to eliminate the big bank oversight put in place by the Dodd-Frank Wall Street Reform and Consumer Protection Act passed in 2010.

At stake in the consideration of the Financial CHOICE Act – House Financial Services Committee Chairman Jeb Hensarling’s legislation intended to repeal and replace Dodd-Frank – would be the loss of debit swipe fee reform, established by the Durbin Amendment.

Our industry fought hard for this reform and if it gets removed, then once again big banks would be granted open season on setting debit card swipe fees as high as they want and under anti-competitive terms by eliminating competition.

Continued on page 18 ▶ NEW JERS EY GRO CER | 15

WASHINGTON REPORT

A New Administration Creates New Opportunities PET ER L A R K I N PR E S IDE N T AN D CEO N AT ION AL GR OCER S AS S OCIATIO N

While 2016 brought change on many fronts in Washington, D.C.– most notably in the White House, independent supermarket operators continue to have a long list of pressing matters to discuss.

From protecting debit swipe fee reforms to labeling policies to countless regulations, there is never a shortage of issues impacting the supermarket industry. The following issues were closely monitored in 2016 by the National Grocers Association and remain of critical importance to independent grocers in 2017.

Durbin Amendment/Debit Card Swipe Fee Reform: Congress enacted debit card swipe fee reform, also known as the Durbin Amendment, as part of the Dodd-Frank legislation in 2010, but since this bill was passed, U.S. merchants continue to fight for transparency and competition in the credit and debit card industry.

Prior to the 2016 elections, the House Financial Committee narrowly passed the Financial CHOICE Act, a Dodd-Frank reform package that included language to repeal the debit reforms contained in the Durbin Amendment. This bill was introduced by the Chairman of the House Financial Services Committee Congressman Jeb Hensarling (R-TX).

While the House did not bring the legislation to the floor for a vote, NGA is preparing for a renewed push in support 16 | NE W J E R S E Y G R OC E R

of a similar bill in 2017. NGA, along with other supermarket industry stakeholders, is encouraging the grocery industry to contact their Member of Congress to urge them to oppose any legislation that would alter the Durbin Amendment and reduce competition in the debit routing market.

Health Care Reform: The President-elect has placed repeal of the Affordable Care Act (ACA) on top of his to-do list, and with a Republican-controlled Congress that effort seems much more likely to succeed.

While repeal is on the agenda, at the time of this writing the details for an ACA replacement is unclear. Many in Washington have speculated that the incoming Trump Administration’s replacement bill could mirror House Speaker Paul Ryan’s “A Better Way” health plan. Included in Speaker Ryan’s plan are some proposals, such as individual tax credits and health savings accounts, that Trump had endorsed along the campaign trail.

SNAP and federal feeding programs: In 2016, the House Agriculture Committee

conducted more than a dozen hearings on the Supplemental Nutrition Assistance Program (SNAP), including hearings last May in which NGA Board members testified. Given the interest from Members of Congress on SNAP, we anticipate to see more pressure in 2017 to bring about “reform” of this program. NGA will remain focused on ensuring any proposals, including ones that limit what items SNAP recipients can purchase, do not add new costs, or administrative burdens on independent supermarkets.

In addition, the House and Senate Agriculture Committees are likely to begin the process of drafting a new farm bill next year. Farm bills are large bills that package together several different agriculture priorities, including crop insurance, livestock issues, and nutrition policies.

Continued on page 18 ▶

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WASHINGTON REPORT

◀ Continued from page 16

“there is never a shortage of issues impacting the supermarket industry.”

Traditionally, legislation encompassing nutrition programs (including SNAP) are included as a part of the farm bill in order to receive urban support for the farm programs that often only appeal to Members of Congress from rural districts.

These bills are large and expensive, and usually result in tough fights as both Chambers look to pass a product that pleases several different constituencies.

GMOs: After a year of intense debate and legislative jockeying, a biotechnology labeling law that created a national labeling standard for food products made with genetically engineered (GE) ingredients and genetically modified organisms (GMOs) was enacted in July 2016.

The action now shifts to the U.S. Department of Agriculture (USDA), where the agency will begin the rulemaking process that will decide how the law is implemented across the country.

NGA is already focusing on what opportunities and challenges the new administration and Congress may bring in 2017. Given these changes, we will have much work to do to educate lawmakers and regulators about the positive impacts the independent supermarket industry has on the economy and local communities.

To make your voice heard on these issues, please visit www.grocerstakeaction.org. ■

INSIDE THE BELTWAY

◀ Continued from page 15

“Our hope is that by showing consumers how much big banks/card companies collect. they will be willing to engage with their Members of Congress.”

Banks and card companies are applauding this transition as they have managed to convert that system into the best kind of profit center; one where the customer – for the most part – is not even aware they are paying. It costs American consumers and businesses somewhere between 23 cents and $4 every time a credit or debit card is used to make a payment. This is a high fee for a service that actually costs the banks very little, and they have been very successful at hiding what those fees are, and who exactly is assessing them.

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Under the 2010 reforms that the big banks hope to repeal early in 2017, the Federal Reserve is required to collect data on banks costs’ relevant to debit card swipe fees and can adjust their caps based on what they find.

We need your customers’ help and your help in making sure the debit reforms are not repealed, as they are the only measure we have in place to keep the greed of financial institutions in check.

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If you are willing to sign a letter to Congress, encourage others to sign our petition or post a short video clip of the impact of swipe fees on your business and your customers, let us know, jhatcher@fmi.org. We appreciate your help! ■

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VIEWPOINT

Going, Going...Gone

K EV I N CO U PE FOUN DE R , MOR N IN GN E WS BEAT.CO M

Amazon ended 2016 by reminding the retailing business of the competition level it intends to provide in 2017.

The alert came in the form of a new concept called Amazon Go, which is in beta testing right now in Seattle, Wash., scheduled to be open to the general public early in the New Year.

Here’s what we know about this new and unexpected format.

Amazon Go is a 1,800 square foot convenience store format that allows consumers to enter the store using a mobile application, choose the items they want, and then leave – without having to go through a checkout lane.

The concept in some ways is reminiscent of one that IBM illustrated in a television commercial more than a decade ago, which showed a guy in a big coat wandering through a supermarket shoving products into his pockets; rather than being a shoplifter, the commercial’s denouement showed that he’s actually using the store’s RFID system, which eliminates checkout lanes.

IBM said that the commercial was a vision of the future...but it was a future that never really came, in part because of the cost of RFID tags, but more, I think, because retailers really saw no need to eliminate a part of the shopping experience that nobody really likes but everybody accepts.

20 | NE W J E R S E Y G R OC E R

Until now. Until Amazon decided to challenge conventional wisdom and expectations.

As best we can tell, Amazon isn’t using RFID technology for its system. Rather, it says that it is using the same sort of technologies that power self-driving cars.

They call it “Just Walk Out” technology, and it combines what Amazon refers to as a combination of “computer vision, deep learning algorithms, and sensor fusion" to allow people to walk through the store, with everything they pick up added to their virtual cart. The products are charged to the person’s Amazon account on departure from the store.

The video hints at the likelihood that Amazon may be offering a broader selection of fresh foods than one might’ve expected, but we don’t exactly know the extent of it, nor how fresh categories will be serviced.

And we don’t know whether Amazon could make store patronage dependent on being a member of its Prime program; it hasn’t said anything about that, but it wouldn’t surprise me since Amazon has been disciplined and relentless about luring/pushing people to join Prime, which for $99 provides expedited shipping and a host of other features. (Prime members spend on average twice as much on Amazon each year as non-Prime members.)

What we don’t know about Amazon Go is what the company’s plans are for any sort of expansion or national rollout.

My friend Tom Furphy, who got Amazon into the CPG business and launched Amazon Fresh, and is CEO and Managing Director of Consumer Equity Partners (CEP), a Seattle-based venture capital and venture development firm, says that he likes the idea of an Amazon Go-Prime tie-up, saying it would be “consistent with the treatment of Prime customers throughout the rest of the Amazon ecosystem... I would have no problem giving Prime members access to exclusive deals or products.

And I would support offering better pricing for Prime members.”

We also don’t know how this concept will merge or dovetail with other bricksand-mortar plans that Amazon has been pursuing, including a grocery format that would focus on click-and-collect technology.

To me, perhaps the most important thing about Amazon Go is that it illustrates the degree to which Amazon is willing to challenge itself and conventional wisdom when it approaches a project.

By the way, if you’re interested in seeing the video that Amazon posted to YouTube introducing the concept, go here: www.bit.ly/AmazonGoVideo

VIEWPOINT

“Good is not good when better is expected.”

– Vin Scully Amazon doesn’t just offer a me-too solution with some minor tweaks to the customer experience. (Think about how the Microsoft Store is just a pale imitation of Apple Store, except with fewer customers and lower sales.)

No, Amazon thinks big...the store, as shown in the video, seems to be a significant rethinking of the shopping experience. It won’t be for everyone, it won’t be for every trip, and it won’t be for all locations.

But it has the potential for moving the needle...and for raising the bar on what will be considered a competitive entry by virtually every other player in the retail food business.

It also is important to remember that Amazon Go isn’t taking place in a competitive vacuum. It is being developed inside a company that already has a robust e-commerce business, and game-changing concepts such as Prime, Subscribe-and-Save and Dash Buttons.

And, Amazon Go is opening at a time when its Echo/Alexa voice recognition technology allows people to place orders just by talking to their devices. (If you are not intimately familiar with all these entries, it’s time to get on the stick.) It’s like everything is aimed at fulfilling the now-familiar Amazon mantra: “We don’t want to sell people stuff.

We just want to make it easier for them to buy things.”

There are, of course, potential downsides for Amazon. For one thing, it puts the company’s strategies and tactics on full view for competitors to observe and learn from, and it also takes away a little flexibility, since there is no way that the bricks-and-mortar world can be as nimble as the virtual world.

It’d be foolish to focus on the potential downsides for Amazon, though. I got a taste of this when I first wrote about Amazon Go on MorningNewsBeat, and got a bunch of emails from traditional retailers who seemed mostly focused on how shoplifting could be an enormous problem. My answer to this is that yes, it could be, but it seems to be a pretty good bet that Amazon has figured out how to deal with it. Besides, there is little that Amazon would like than for all its competitors to be focused on shoplifting while it tries to change the world.

the same benefits for a decade by using “Human Technology.” You can watch that video here: www.bit.ly/MonoprixVideo The strategies and tactics you use to compete in this environment are less important than the act of constantly, consistently, disruptively finding new ways to compete and be relevant to your shoppers. If you think you’re not going to be affected by what companies like Amazon are doing, think again.

And remember the words of the immortal Vin Scully: “Good is not good when better is expected.” ■

The thing that retailers competing with Amazon - and let’s face it, every retailer competes with Amazon - have to focus on is how they are going to approach a world in which good enough not longer is good enough, where consumer expectations are being reshaped...and not just by the retailer down the road or across the street.

Sometimes the response may be intertwined with technology, but sometimes not. I was actually heartened when I saw a video produced by Fresh retailer Monoprix that poked gentle fun at Amazon Go while pointing out that it has offered many of

“If you think you’re not going to be affected by what companies like Amazon are doing, think again.” iStock

NEW JERS EY GRO CER | 21

!

OUTSIDE THE BOX N EW RETAIL PERS PECTIV ES

Retail Waterloo

Alive & Kicking iStock

Remember the old neighborhood video stores that cropped up in every town and seemed to die out as quickly with the advent of streaming services? Well, they’re still around thanks to increased demand and some new strategies. There are still about 100 video store holdouts across the U.S. selling DVDs Blu-Ray and even VHS tapes – many of them in places were you find a large locavore population. Places like Video Free Brooklyn in New York, Vulcan Video in Austin, Texas and Movie Madness in Portland, Ore., have become one-stop shops for popular and obscure films you would need to get from multiple streaming services like Netflix or Hulu and movie props and accessories.

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Turns out you can teach an old dog new tricks. In this case, an English bulldog – new tricks. The former Eurostar terminal at London’s Waterloo Station is being refitted for 135,000 square feet of retail space on three floors. But the project isn’t just for the benefit of commuters. British Railways and the Department of Transportation want to make Waterloo station as much a retail destination as the High Street.

t Ja va o H Remember Boston Market – the darling of the fast casual dining industry? The chain has been pretty quiet of late, but that may be coming to an end. The company hired a new ad agency, The Richards Group, to get back some of the luster it lost to Chick-fil-A. Plans include new branding and creative strategy.

22 | NE W J E R S E Y G R OC E R

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Global supplies of coffee are tightening, but demand is at record levels.

Research indicates that Americans are becoming addicted to the beverage at an earlier age – even in China – as demand dwindles among older consumers.

OUTSIDE THE BOX

Millennial Mambo

Millennials just don’t buy groceries and Donald Trump never had a chance of becoming president either. Right? Well, the latter has been disproved and now from the UK comes evidence that Millennials might be the best supermarket customers yet. Nielsen Homescan in the UK found that households where 16 to 35-year-olds are the main shoppers, grocery spending has increased 7.9 percent–far stronger than other groups. The conclusion? Millennials are freeing up more of their hard earned dollars for groceries and shop more frequently.

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However, the study also shows that Millennials are increasing spending at discounters and bargain stores like Aldi, where sales among that group increased 46% over the past year.

Sometimes, customer service can go a bit too far.

Three Squirrels, a growing Chinese e-commerce brand that sells nuts and snacks, uses cartoon squirrel mascots on its logo and commercials.

But customer service employees also play the role of pet squirrels with squirrel-related nicknames and address shoppers as their “owners.” Apparently this oh-so-cutesy strategy works, especially with Chinese Millennials who see the company’s products as a healthy, youth-focused brand. iStock

Service with a Bark Is Fido in a hurry for a new bone or is kitty craving a new scratching post? Now no one has to wait thanks to PetSmart, which has started offering same-day delivery through Deliv, a Silicon Valley startup. The service is available in Los Angeles, Orange County, San Francisco, San Jose, Las Vegas, Atlanta, Miami, Seattle, and Chicago, with eight additional markets soon to come on stream.

A

Nuts to You!

Er a w e N

According to Adobe, online sales on Black Friday grew 21% over last year to $3.3 billion.

In fact, Target noted that target.com had its best day ever on Thanksgiving, with sales up double digits.

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NEW JERS EY GRO CER | 23

Creat 24 | NE W J E R S E Y G R OC E R

ivity

DRIVES THE NEW SHOPPING EXPERIENCE ELLIOT ZWIEBACH

Unless supermarkets begin rethinking the way they do business to meet the threat of online competition, they could end up as “Blockbusters in a Netflix world,” according to futurist Douglas Stephens.

The key may be transforming their stores to offer shoppers a value-added experience that goes beyond simply distributing groceries, he said in an interview with New Jersey Grocer and in a presentation at a recent grocery strategic conference. Stephens is the founder of Toronto-based Retail Prophet.

“Many consumers today view grocery stores simply as warehouses that hold products they need,” Stephens said. “But with online options growing, what’s to prevent the majority of consumers from passing up the supermarket completely by subscribing to AmazonFresh and getting groceries delivered?”

With a growing number of online operators offering ever broader shopping options, retailers need to figure out how to create experiences “that are so amazing that people will pay to come to your store,” he said.

Speaking at the conference, Stephen said retailers will have to re-focus their stores to make the trip an experience if they hope to motivate future consumers to make a physical trip to a supermarket rather than ordering online.

by algorithms – where sellers are making suggestions to consumers about what they may want to buy based on previous purchases – consumers can have a burst of exhilaration going into a store and interacting with sales associates.

“Shopping is both a social and physiological experience,” he explained. “Thinking about going shopping (in general) is similar to taking cocaine for many people – it gives them a dopamine rush.”

“That doesn’t mean retailers have a free pass,” he added. “While brick-and-mortar stores will continue to exist, everything about that space – and how you think about why people go there to shop – will have to change, and rapidly.

However, the prospect of shopping with online operators who add more products and give consumers more certainty about finding what they want offers less of a rush, Stephens told conference attendees.

“When people come to a store to shop, that dopamine effect goes through the roof, which works in your favor,” he said. “In a world where people’s lives are being ruled

“You must look beyond simply selling products in order to create such galvanizing experiences that a consumer won’t think of buying what you offer anywhere else.”

Continued on page 26 ▶

NEW JERS EY GRO CER | 25

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...the major obstacle to creating the right kind of experience is their obsession with four-wall productivity. ◀ Continued from page 25

In his speech, Stephens said retailers will have to shift their thinking beyond being a place to distribute products and focus instead on selling the experience along with the product.

“Retail has to become less static,” he said.

“The future will be less about dragging things home and more about the value of the experience.

“Smart companies will re-deploy employees to become ambassadors – awesome people that add value to the in-store experience as nutritionists, sommeliers or chefs, for example – people who interact one-on-one with customers. People trust other people.”

Even millennials, who depend so much on personal devices, “are hungry for physical experiences that do not involve the product itself as much as the brand,” he told conference attendees.

Whole Foods’ 365 stores, which are tailored to millennial tastes, “are about the experience,” he pointed out.

26 | NE W J E R S E Y G R OC E R

For many retailers, however, the major obstacle to creating the right kind of experience is their obsession with four-wall productivity,” which has been the primary operating principle for a century or more, Stephens said.

“It’s a hard pill to swallow, but in a world where we can get anything we want with a single click, no one needs what you sell. But what you sell is the only value differentiator left, so you must create a different experience around what you sell by getting innovative, cunning and crafty – not by starting with technology, though leveraging technology could add value to the experience, but by understanding the customer experience in a different, deeper way, then de-constructing that experience.”

That may be the only way to meet “the very material threat” posed by Amazon, Stephens said, “but too many retailers will recognize that too late because they are myopically obsessed with the inner workings of the business but unaware or unwilling to see what’s happening outside the walls.

“They remain doubting Thomases, and as a result, they could eventually be replaced by others more eager to figure out how to move product by adopting new ideas,” he added.

According to Stephens, too many retailers are still caught in the mindset that they are there to distribute products, “and any value-added experience is simply sprinkled in like garnish.

“They don’t energize consumers to make the trip to the market enticing. But to survive, they’ve got to figure out ways to deal with the threat of online sellers who rely on convenience.”

According to Stephens there have always been competitive pressures on the industry, but “Amazon doesn’t care if it makes money or not, and as it continues to grow, it will operate at a loss to put other players out of business.” Most operators still think more laterally, he said.

The answer is enhancing the in-store experience, Stephens said.

“As good as Amazon and the others are, they are still just digital catalogues. As connectivity becomes more important, the future of retail will be more experiential and immersive,” he said. “But the time for retailers to act is soon because there’s a diminishing window of time.”

Figuring out ways to make the shopping experience more appealing to prevent shoppers from opting out is not the way most operators think about their businesses today, Stephens said in the interview. But in an industry with profit margins often at or below 1 percent, the challenge of how to generate revenue over and above selling groceries is daunting, he noted.

The future may revolve around reassigning floor space, he said.

“Even if a retail company increases its selection by 10 percent, that will still be only a small facet of what Amazon is able to offer,” Stephens said. “And even if a retailer can improve service by 20 percent, that still pales versus Amazon’s ability to deliver when the consumer wants when he wants it.”

E-commerce is continuing to grow in all businesses, posting sales of $1.6 trillion in 2015, with expectations for long-term, highvolume growth, Stephens told conference attendees, “We’re probably just reaching the end of page 1 and turning to page 2.”

Supermarkets stand to lose as much as 30 percent of their business to online sellers by 2025, particularly on high replenishment items like diapers, pet food, baby food, detergent and light bulbs, for example, Stephens said.

“It will be a matter of ‘say it and get it.’ When someone wants an item, they will click on a technological device and have it delivered.

The question for retailers, then, is how will your store, your chain and your brand be heard?”

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“Developing a grocery store that will appeal to future consumers starts with the question, how much space does an operator need to create the kind of experience that’s so compelling and remarkable that people are motivated to return again and again to buy food there?

Continued on page 28 ▶

NEW JERS EY GRO CER | 27

◀ Continued from page 27

“That might mean devoting just 25 percent of space to essential food products and finding ways to devote 75 percent of space to creating amazing food and health experiences,” he said.

The traditional ways of thinking about merchandising that worked for decades may no longer be relevant, Stephens added, with supermarkets of the future likely to hold little product while offering new, exciting, customized experiences aimed at meeting specific consumer preferences, he explained.

“In a world where home delivery from online businesses is growing, it’s an archaic process for consumers to get into their cars, drive through traffic to a supermarket, handpick items, load them into a cart, unload them at the checkstand, load the bags into a cart and unload them into the car, then unload them again when they get home and put them away,” he said.

other ways to position groceries from a health-and-welfare standpoint or a lifestyle experience,” he said.

“For some, the grocery store of the future may be a place for entertainment that creates memorable experiences and builds loyalty and a greater relationship between the supermarket and the public.”

One company that’s taken the right steps to meeting the long-term needs of future consumers is Eataly, Stephens noted. “That’s a company that understands that retail as strictly a commodity business is threatened, so it drives its business with spectacular, exciting facilities that combine groceries, restaurants and entertainment.

“No one else in the grocery industry that I’m aware of has pressed ahead as much (as Eataly) on this concept that I believe will be a way to guarantee success going forward. No one else has taken such dramatic steps to acknowledge experience should come first and products should be a secondary consideration.”

It starts with designing the experience...break down the consumer’s journey to the store to its most granular components and design each aspect as an experience to be savored.

According to Stephens, the only reason future consumers will go through all that is if the retailer isn’t afraid to give them other experience-based options.

“What grocers need to consider is how to create incredible expectations for consumers, whether that means offering cooking classes with celebrity chefs, featuring holistic coaches to teach people how to eat better, offering a broader variety of in-store entertainment events or providing 28 | NE W J E R S E Y G R OC E R

According to Stephens, “It starts with designing the experience. Retailers must break down the consumer’s journey to the store to its most granular components and design each aspect as an experience to be savored.”

How long it takes for retailers to figure it all will depend on each individual business, he said.

“Every organization should already be working on a prototype within the next year or so,” he recommended. “But the majority of retailers will probably do nothing in the short term, which is just human nature. They will fail to understand that dramatic things are happening and that their business could be in peril, but still they will do nothing other than ignoring what’s coming because

that’s the easiest thing to do. As a result, most will be disrupted by outside forces and will end up in trouble.”

For more than 100 years, consumers relied solely on supermarkets as a source for groceries, Stephens said.

“Consumers had very few other options, and they depended on supermarkets to provide access to brands and products,” he added. “And if there was something the local grocer didn’t carry, then the consumer was out of luck.”

But with the advent of online shopping options, that approach is unlikely to remain appealing for much longer, Stephens said.

“Every supermarket retailer today must look at his business with fresh eyes and ask what value he is bringing to the table or adding from manufacturers.

“Selling groceries is a very product-centric business, and companies live and die by tenths of a percent in profits, which is a precarious position to play from because it doesn’t afford much wiggle room to be highly creative. It leaves everyone living on the razor’s edge.

“But someone has to step up and say they will create a store that’s more about the experience than the food.”

Online selling is a competitive reality that isn’t going to disappear, he pointed out.

“Right now it’s Amazon against the world.

Amazon’s market capitalization is higher than Walmart’s, and grocery sales are rising 20 percent a year, whiles sales at the average supermarket are up just 1 percent, 2 percent or 3 percent annually.

“With 60 percent of every incremental dollar spent online going to Amazon, Amazon is not only massive but dominant, and with consumers willing to buy anything online, its grocery sales will continue to grow rapidly.”

Changes in the way most supermarket operators think are likely to occur gradually, if they occur at all, Stephens said.

“I’m talking with some companies that are considering doing new things or working on innovation. Whether or not they can come up with a new grocery model with a strong entertainment value within the next couple of years is debatable, but within five years, most grocers will realize they can’t make money unless they create something unique and different from what they’re doing today.”

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Companies don’t need to launch experiencefocused stores on a chainwide basis in the short term, Stephens said, “but they should be experimenting at test locations, the same way Amazon is testing brick-and-mortar stores. Innovation matters.”

Stephens said the most important skill for any business, particularly grocery stores, is continuity, adding that all companies have creative people within their organizations that are assets and must be utilized.

“What supermarkets should be doing is testing innovative stores and understanding who their creative people are because they will need a ton of creativity going into the next decade,” he concluded. ■ Editor’s Note: Elliot Zwiebach was a reporter with Supermarket News for more than 47 years.

NEW JERS EY GRO CER | 29

30 | NE W J E R S E Y G R OC E R

EVERYONE LIKES A

Good Story

By Patty Johnson

Global Food & Drink Analyst Mintel

HOW STORYTELLING CONNECTS CONSUMERS WITH RETAILERS AND BRANDS

S

ince ancient times, storytelling traditions have provided the foundation for human communication and connection.

Stories about our foods and the people who produce them connect us emotionally to the brands, manufacturers and retailers we choose. Relationships with products are becoming more portable, seamless and honest.

Consumers are increasingly being romanced by the stories that products are telling about their origin, ingredients or inspiration.

Memorable stories enable consumers to fill in the knowledge gaps they may have about how products are produced, sourced and sold – detailing a product’s journey from the farm to the table.

Embracing and highlighting stories about diversity can also forge emotional connections with consumers.

For example, advertising and marketing messages featuring models and actors who accurately represent the consumer base will do a better job of reaching more individuals.

Brands and businesses can take note and benefit from continuing to develop diversity in communication efforts. As the notion of diversity becomes one that marketers and companies are embracing and using more often when showing visual representations of consumers, the very definition of diversity seems to widen.

For example, the Female Farmer Project is a photography series by Audra Mulkern that aims to give a more authentic face to the U.S. farming community. The project began as a “farm-to-table documentation” aimed at countering the “white men in overalls and straw hats” farmer cliché by showing who is actually behind people's produce (hint: it’s often women). This is bound to speak to consumers, especially because many people are sensitive to whether or not models and actors in ads look like them or look “authentic.”

Continued on page 32 ▶

NEW JERS EY GRO CER | 31

Attitudes Towards Food, by Demographics,U.S., February 2015 All

iGeneration Millennials Generation X Baby Boomers (1995 - 2007) (1977-1994) (1965-1976) (1946-1964) (18-20) (21-38) (39-50) (51-69)

Swing Generation/ World War II (1945 or before) (70+)

There are probably more harmful or excess ingredients in foods than manufacturers are telling us

71%

80%

70%

71%

71%

73%

I want to see more transparency in food product ingredients

69%

62%

68%

67%

70%

72%

I worry quite a bit about potentially harmful ingredients in the food I buy

53%

60%

60%

55%

46%

35%

Base: 2,000 internet users aged 18+

Source: Lightspeed GMI/Mintel

Source: Mintel Reports: Free-from Food Trends – U.S., May 2015

◀ Continued from page 31

Now More Than Ever, True Stories are Important Storytelling is more important now because the necessity for retailers and brands to be transparent has never been higher. Product recalls, questionable claims and shady business practices have made us more suspicious shoppers and worried about the foods we buy.

In fact, nearly three-quarters of U.S. consumers show a high level of skepticism towards food integrity, according to Mintel research. Younger U.S. adults aged 18-38 are the most worried about harmful ingredients, while demand for transparency in food product ingredients increases with age.

Food worries are often multifaceted; consumers often express concern over the impact on their own health as well as what’s good for the planet.

(The recession made Americans more conscientious shoppers. Now consumers are examining every purchase because we can; the rise in price and product tracking tools has made it easy for us to be more informed and savvy shoppers.)

Attitudes Toward Store Brand Products, U.S., November 2015 Agree I want to see more transparency about who makes them

81%

I want to see more transparency about where they are produced

79%

I would trust a store brand more if it listed the product’s origin

76%

I would buy more store brand products if they used locally-sourced ingredients

69%

National brand products share more information about their origins than store brands

56%

Base: 1,864 internet users aged 18+ who purchase any private label Source: Lightspeed GMI/Mintel Source: Mintel Reports: Private Label Food Trends – U.S., February 201

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According to Mintel research, 70 percent of U.S. shoppers say they like to know where their food and drink comes from. Further, about 75 percent of U.S. consumers with internet access have conducted online research for purchases in the last week.

In short, today’s consumers are equal parts skeptic and sleuth.

Consumers Want Transparency from Retailers Besides the obvious drivers of convenience, price and familiarity, grocers have many other “stories” to tell in marketing communications.

At the store level, one asset to prioritize and invest in is human capital. The role of the employee can be elevated beyond just telling customers which aisle items are in, and/ or ringing up items efficiently. Informed and knowledgeable employees can assist consumers who are seeking more detailed information regarding the origin of the foods they buy.

Highlighting fresh produce and the stories of the farmers that grow it is especially relevant for baby boomers and swing generation consumers who are most likely to choose a retailer based on its fresh produce selection, according to Mintel research.

Meanwhile, stories about unique and exclusive items including organic and natural food selections offer maximum appeal to millennials.

Demand for transparency is especially pronounced for private label products.

According to Mintel research, U.S. store brand buyers overwhelmingly agree that store brands should provide more transparency about who makes them, where they are produced, and their origins.

As retailers continue to expand their store brand offerings with many making organic and BFY (better-for-you) claims, consumers appear to be skeptical about whether they can trust these claims. This presents retailers with an opportunity to tell a stronger story about the origin of their products as a way to connect with buyers and quell any concerns about how they are made, especially since more than half of buyers agree that national brands do a better job of providing this information.

The Impact of Social Media Consumers are more powerful than ever.

They have the ability to thoroughly research a brand or a retailer and its practices (and increasingly do so in real time, thanks to smartphones), while social media gives consumers an interconnected platform to convey any feelings of distrust. Never has it been easier to rail about bad business practices, thanks to Twitter, Yelp, Angie’s List and the like.

And while a handful of brands may have earned a consistent level of trust, many will probably always be seen through a veneer of suspicion, with every move analyzed for signs of an ulterior motive. That means unbiased peer and third-party reviews are likely to continue influencing decisions. Can we expect to see every item on the shelf in our supermarkets labelled with a rating from reviewers like Which? or Consumer Reports?

Companies that can show their human side through storytelling and acknowledge their failings with grace will appeal to shoppers who can see through bombastic claims. Creating platforms that give customers a voice to shout about their experiences will help brands position themselves as transparent – an attractive trait in today’s climate.

In the UK, supermarket retailer Iceland has announced it will be moving on from the celebrity mother spokespeople it has previously used to instead harness the power of vloggers who are real mothers.

Iceland has partnered with Channel Mum, a network of vlogger parents. These parents will then upload videos of themselves to Channel Mum’s YouTube channel and website as they make meals using Iceland products.

Celebrities are no longer the sole option when it comes to hiring a famous face to front a campaign; in recent years we’ve seen bloggers and vloggers rise up to take their place thanks to the rise in popularity of social media.

This approach will present the retailer as interested in getting real – rather than manufactured – reactions to its food. This approach has the potential to backfire, but it may also attract skeptical consumers who are looking for brands to be more truthful.

Ethics Provide a Framework For Storytelling

C

onsumers are increasingly being romanced by the stories that brands and retailers are telling about product origin, ingredients and inspiration.

While the notion of “corporate transparency” has become something of a cliché in recent years, its ethos is as relevant as ever.

Consumers have become cynical toward the claims of manufacturers, retailers and advertisers and acknowledge a lack of information on product labels. Above all, retailers and brands must be truthful and stay true to their stated core values. Stories must align with these core values or they will be viewed with suspicion.

Company and product ethics matter to consumers. In fact, about 70 percent of consumers claim to give at least some consideration to a company’s ethics when making purchases, according to Mintel research.

Moreover, company ethical behavior has gained importance over the past few years; less than half of consumers said they considered corporate ethical behavior in their purchasing decisions when surveyed in 2012.

Somewhat surprisingly, men are significantly more likely than women to say they are often/always influenced by company ethics (29 percent vs. 16 percent). Millennials tend to place more emphasis on ethics than older generations, which supports commonly held beliefs about millennials: 78 percent of millennials at least sometimes consider ethics in their purchasing decisions, compared to 61 percent of baby boomers.

Continued on page 34 ▶

Factors Considered to Determine How Ethical a Company is, U.S., April 2015 “Which of the following factors, if any, do you consider when deciding how ethical a company is?”

Employee treatment Where products are made Environmentally friendly Animal treatment Advertising practices Food transparency Stance on controversial issues Outreach in local community Outreach in U.S. Charitable donations Outreach globally Employees volunteering None of the above Other Base: 2,000 internet users aged 18+

48% 34% 33% 31% 27% 27% 27%

22% 18% 17% 13% 9% 16% 2% Source: Lightspeed GMI/Mintel

Source: Mintel Reports: The Ethical Consumer – U.S., July 2015

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Among millennials, older millennials appear to be more influenced by ethics, likely because they are more likely to have children (parents tend to be more impacted by ethics) and because they have higher incomes.

Along those same lines, respondents from higher income households are more likely to be influenced by a company’s ethical track record.

C

onsumers are expecting a higher level of engagement with retailers and brands than ever before.

Those aged 18-34 who live in $75,000-plus households are among the most influenced by ethics (86 percent are sometimes influenced). Retailers and brands targeting high-income or young, affluent millennials should consider how their ethical track record will be perceived with their audience.

Mintel’s research suggests that the primary driver for purchasing from ethical companies is the “feel good factor” associated with the purchase. Consumers want brands to act ethically on their behalf and they reward these brands with loyalty.

How companies treat their employees is the factor most likely considered by consumers in their determination of how ethical a company is. This is likely because most people have been employed at some point and can empathize with fellow workers.

Employee treatment outranks factors such as being environmentally friendly, treatment of animals, and stances taken on controversial issues – which often receive wide media coverage.

When it comes to employee treatment, consumers likely consider fairness of wages, benefits, and even policies around time off and holiday hours. For example, some retailers have faced pressure from consumers, watchdog groups, and striking employees due to company policies.

In some instances, even when companies make improvements, some consumers feel it is too little, too late. Here the lesson to be learned is that companies need to be proactive in getting the story out about their efforts, rather than reactive.

Good for grocers.

Good for the environment.

An alternative to landfills and traditional compost programs, Grind2Energy™ Organics Recycling System efficiently converts food waste to renewable energy. Our non-sewer based technology enables you to dispose of all types of food waste — including kitchen fats, oils and grease — faster, cleaner and easier. Reduce odors, pests, emissions and labor costs, all while protecting the environment. So whatever doesn’t make it to the table doesn’t have to go to waste. Learn more at www.grind2energy.com To schedule an appointment, contact: Heather Dougherty Commercial Solutions Group | Food Waste Specialists M 216-200-9439 | Heather.Dougherty@emerson.com

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The Emerson logo is a trademark and a service mark of Emerson Electric Co. All rights reserved.

Ethical & Environmental Claims on Food & Drink Introductions, U.S., 2011-15 2011 2012 2013 2014 2015

35%

Environmentally Friendly Package

13.7

14.4

20.4

21.8

24.7

20%

Environmentally Friendly Product

2.4

2.3

5.9

6.7

7.9

15%

Charity

2.4

2.3

3.5

3.5

3.5

10%

Ethical – Human

1.7

1.4

2.5

2.7

4.0

5%

Ethical – Animal

0.6

0.5

0.9

1.3

2.0

0%

Carbon Neutral

0.2

0.1

0.3

0.2

0.2

Total Ethical & Environmental

17.6

18.1

26.8

29.0

33.0

30% 25%

2011

2012

2013

2014

2015

Source: Mintel GNPD

Tabular view of same data shown in chart above

Total Ethical & Environmental

Ethical – Human

Environmentally Friendly Package

Ethical – Animal

Environmentally Friendly Product

Carbon Neutral

Charity

Ethical Product Claims are on the Rise According to Mintel research, about a third of food and drink products introduced in 2015 carried ethical or environmental claims. This is a significant increase since 2011 when just 18 percent of products carried similar claims.

While the availability of food and drink products with ethical claims is rising in the U.S., retailers and brands have to be careful about how the stories they tell about them as skepticism regarding motivations remains rife. In fact, 52 percent of consumers say that marketing products as ‘ethical’ is just a way for companies to manipulate consumers, according to Mintel research.

When it comes to marketing organic products, both brands and retailers recognize that there is consumer confusion, potentially leading to apathy and skepticism. Indeed, only 42 percent of U.S. consumers trust that organic-labeled products are actually organic, while half think that labeling something organic is an excuse to charge more, according to Mintel research.

have to agree to sell their new organic or natural product exclusively to Target for six months, and the retailer is expanding the program (now in its second year) to include more than 200 products, including new exclusive ice cream flavors from Ben & Jerry’s (Peanut Butter World and Blondie Ambition) and an aloe water drink for children.

The program allows Target to elevate its reputation in terms of health and wellness, while also offering it notable and exclusive organic options.

truthful, authentic and compelling stories about products — including the places they come from and the people that make them — have an opportunity to connect consumers to an experience that is more than just buying groceries and leaving, but one of building trust, confidence and shopper loyalty. ■ Patty Johnson is a global food & drink analyst for Mintel and leverages her in-depth knowledge of consumer trends to bring keen, insightful and forward-thinking strategies and tactics to Mintel’s client base.

‘Real’ Stories Build Trust — Warts and All Realness is a quality that applies to both a product and the marketing that surrounds a product. In the case of the latter, it seems that a “warts and all” approach is starting to be more appealing than the airbrushed or otherwise edited alternative. Minor blemishes or shortcomings can have a positive impact as they can make brands seem more genuine.

Consequently, more retailers and their related brands are taking a proactive approach to organics and green products, in general. Walmart recently has updated its Sustainability Index, which includes five key sustainability initiatives over 700 Walmart categories.

All brands have an opportunity to explore and share the heritage of their own products, especially those with a compelling narrative.

One needn’t be off the beaten path to be genuine. Moreover, the movement towards a more “warts-and-all” approach to advertising provides another way for brands to be authentic without necessarily having to be exotic.

Target is expanding its “Made to Matter” program, which showcases new sustainable, organic, and natural products. Companies

Consumers are expecting a higher level of engagement with retailers and brands than ever before. Retailers and brands that provide NEW JERS EY GRO CER | 35

a

come e b

HEART-LED LEADER

Self-serving leaders build a resume that is impressive, but heart-led leaders build a life they are proud of.

By Tommy Spaulding

One stormy night many years ago, an elderly man and his wife entered the lobby of a small hotel in Philadelphia. Trying to get out of the rain, the couple approached the front desk hoping to get a room for the night. “We’d like a room, please,” the husband requested.

The hotel clerk, a friendly man with a winning smile, looked at the couple and explained that there were three conventions in town. “All of our rooms are taken,” the clerk said. “But I can’t send a nice couple like you out in the rain at 1:00 in the morning.

Would you perhaps be willing to sleep in my room? It’s not exactly a suite, but it will be good enough to make you folks comfortable

for the night.” When the couple declined, the clerk insisted. So the couple agreed to spend the night in the clerk’s room.

As he paid his bill the next morning, the elderly man said to the clerk, “You’re an exceptional man. Finding people who are both friendly and helpful is rare these days.

You are the kind of manager who should be the boss of the best hotel in the United States.

Maybe someday I’ll build one for you.”

Two years passed. The clerk was still managing the hotel in Philly when he received a letter from the old man.

It recalled that stormy night and enclosed

was a round-trip ticket to New York, asking the young man to pay him a visit. The old man met him in New York, and led him to the corner of Fifth Avenue and 34th Street.

He then pointed to a great new building there, a palace of reddish stone, with turrets and watchtowers thrusting up to the sky.

“That,” he said, “is the hotel I’d like you to manage.”

That old man’s name was William Waldorf Astor, and the magnificent structure was the original Waldorf-Astoria Hotel. The clerk who became the first manager was George C. Boldt.

Continued on page 38 ▶

◀ Continued from page 37

This young clerk never foresaw how his simple act of sacrificial service would lead him to become the general manager of the world’s most glamorous hotel.

(Source: Growingleaders.com).

I’ve heard this story a hundred times.

Each time it raises the hairs on the back of my neck. Each time it teaches me the difference between “service” and sacrificial service. The difference between a self-serving leader and, what I call, a heart-led leader.

And how when you go the extra mile with serving others, you never know how your life (and business) may change forever.

iStock

“But leadership is about more than hard work,” he said.

“Leadership is also about character.”

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A mentor of mine, Bill Graebel, CEO of Graebel Relocations, once told me, “Most of us go out of our way to help ourselves, but few go out of their way to help and serve others.” And, often, when we do genuinely serve others and lead from the heart, it is not seen by others. I learned this valuable lesson as a young teenager.

When I was growing up, I was a Boy Scout.

As with most things in my life, though, I wasn’t content to be just a regular Scout.

I wanted to excel. So, I pushed myself to earn the coveted rank of Eagle Scout, which is achieved by only about five percent of all Scouts. In fact, I achieved this honor when I was 15-years-old, which at the time made me the youngest Eagle Scout in the history of our troop. Then, when I attended a Boy Scout summer camp one year in high school, I made it my goal to be named the Outstanding Scout, which our Scoutmasters told us would be awarded at the end of the camp to the individual who had best demonstrated leadership and character.

I wanted so badly to win that award that I could taste it. For the next few weeks, I worked as hard as I could work. I kept my tent and camp site perfectly clean. I hustled everywhere and when the camp leaders were looking I hustled even more. I strived to be a leader around other Scouts. By the time camp was finished, I was certain that no one had outworked me or outhustled me or shown any more leadership than me. So, when all of the campers and troop leaders gathered on the last night in front of a roaring campfire and under a sky full of stars, I knew they were going to call my name as the winner of that summer’s Outstanding Scout award.

When the time came, the Scoutmaster made a speech about the importance of leadership and character. “And, in our judgment, the Scout who has best demonstrated those traits this summer is…” I took a deep breath and started to stand up. “…Jimmy Brown.”

Jimmy Brown? What? I was stunned. Who the heck is Jimmy Brown? He wasn’t a better Scout than me. He wasn’t a better leader than me. He hadn’t outworked me during camp. How could they not have noticed all my efforts, my skills, my leadership capabilities? Jimmy Brown? Are you kidding me? What more did I have to do? I went to bed that night utterly confused, frustrated and dejected.

The next morning, when camp was over and we were all waiting around for our parents to come pick us up, I happened to find myself standing next to the Scoutmaster.

So, I managed, a bit awkwardly, to steer the conversation towards the Outstanding Scout presentation. “Tell me about Jimmy Brown,” I said. “Why did he win the award?”

The Scoutmaster looked at me and put his hand on my shoulder. “Tommy boy,” he said, “you’re a great Scout and I know that you may have worked harder than any other young man here this summer.”

I nodded.

“But leadership is about more than hard work,” he said. “Leadership is also about character.”

He then told me a story about something that had happened a week earlier, unbeknownst to me or any of the other Scouts. “We put a large log on the path between your campsite and the cafeteria,” he told me. “And then we hid in the woods to see what would happen when you all encountered that obstacle on the path. We watched as you and a hundred other Scouts walked down that path and, one by one, stepped over that log on your way to grab a cheeseburger at the cafeteria. But Jimmy Brown missed lunch that day. Because when he noticed the log there, he stayed behind and worked all by himself to move that log and get it off the path.”

The Scoutmaster reminded me once more that leadership was about character. “And Tommy boy,” he said, looking me straight in the eyes, “character is what you do when no one else is looking.”

Character is what you do when no one else is looking.

What a great lesson. If it weren’t for Jimmy Brown and if it weren’t for me failing to win that Outstanding Scout Award that summer, it would have taken me a lot longer to grasp this important lesson. Self-serving leaders are concerned with winning the “Outstanding Scout Award”, but heart-led leaders are concerned with doing the right thing regardless of what anyone else thinks, regardless of whether anyone else is looking.

Self-serving leaders build a resume that is impressive, but heart-led leaders build a life they are proud of.

lead with love – we care deeply about serving others, about selflessness, about doing the right thing even when it’s difficult, about developing empathy and demonstrating generosity, about all those ideals that may seem “soft” but, in fact, allow us to live and lead more powerfully.

I’ve met thousands of leaders in my career, and I make it a point to learn as much as I can from every one of them. In all of my conversations, one thing has become abundantly clear: Leaders and organizations that lead with their hearts are more successful and have better results than those that don’t.

“Character is what you do when no one else is looking.” iStock

It all starts with this critical question: What is your leadership philosophy?

If you don’t have a leadership philosophy, that’s OK. Most leaders don’t have a specific philosophy, at least not one they can name.

I hope to change that. I hope you’ll choose to become a heart-led leader. I want this for you because it will change your life, your organization and the lives of everyone you touch. And if you do it right, it will also change the lives of everyone they touch.

If you want to have that kind of impact in the world, you have found your leadership philosophy.

Leading from the heart means leading with love. If the word love scares you, then use passion, commitment, compassion, caring leadership, purpose-drive, mission-driven or your choice of any similar word or phrase, because at the core these are all forms of love.

In this context, love is simply an unselfish and genuine concern for the good of others.

So, when we lead from the heart – when we

Love and results are not opposites. They are two sides of the same coin. It is not love or results. It is love-driven results.

If you love what you do, if you love the people you do it with, if you love your culture, if you love your mission, if you love your team, if you love your investors, if you love your clients, if you love your customers– you will gain better results.

Defining your leadership philosophy is one of the most important steps you can take as a leader. Your philosophy filters every thought and action you take as a leader.

Every decision you make and every conversation you have with your team.

And when you take the journey to heart-led leadership – and it’s definitely a journey – you will make a significant impact on the lives of those that choose to follow you. ■

Tommy Spaulding is the New York Times national bestselling author of “The Heart-Led Leader” and “It’s Not Just Who You Know.”

To contact or learn more about Tommy Spaulding, please visit: www.tommyspaulding. com.

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1 5 MINUTES WITH...

Eric Saperston C H I EF CREATIV E O FFICER LIV E IN WO N DER

BY LEN L E W IS

Eric Saperston isn’t your conventional consultant. He’s more at home in a Volkswagen van than a chauffeured limo, or at a tacqueria on the beach in Mexico than a Michelin-starred restaurant. But conventional isn’t what you always want in a world and retail industry that’s anything but conventional. And the lessons he’s learned from interviewing the famous, near-famous and just regular folk in his travels, offer valuable lessons for living life and doing business.

and innovative you have to be willing to do that. It enables you to be in motion. Too many people won’t jump in and learn on the way. They want to reduce risk by having all these reports and analyses before they do anything.

CG: You talk about resourcefulness, tenacity and courage. Are we seeing enough of it in business and elsewhere today or less so than in the past?

I’m not advocating foolish risks, but be an educated risk taker. Life is a journey, an adventure that’s to be lived and experienced.

Resources will come along the way. They’re not all there at the beginning of the journey.

Saperston: There are many people who exhibit these qualities and a lot who don’t. The important thing is to live an extraordinary life – everyday people producing extraordinary results.

Tenacity and resourcefulness is what people pack to go on an adventure. You can’t anticipate that everything will line up.

You’ve got to do with what you have and be persistent.

What prevents people from doing that?

Does that fear factor stifle innovative thought?

It’s the need to reduce or eliminate fear.

Venturing into the unknown is frightening.

People don’t like being judged, looking foolish, ostracized or have egg on their face.

In order to succeed immediately, they try to minimize risk. That fear just cripples and paralyzes people.

It depends on the culture, but generally that’s true. I was just in Tulum, Mexico, where a friend of mine has a taqueria right on the beach – a nice blend between business and the environment. You can’t do that here because we seem to have a fear-based culture where everything is contained. It’s made us a little soft as a culture.

There’s a great quote by Theodore Roosevelt that goes, “Do what you can with what you have where you are.” To do something bold

“THE IMPORTANT THING IS TO LIVE AN EXTRAORDINARY LIFE – EVERYDAY PEOPLE PRODUCING EXTRAORDINARY RESULTS.” Doesn’t everyone want to reduce risk?

Continued on page 42 ▶

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15 MINUTES WITH...

◀ Continued from page 41

I’ll give you an example. When I was a kid we climbed trees. I’ve seen statistics that 70 percent of kids haven’t climbed a tree because their parents are afraid they’ll fall.

The media also make us fear-based by running the same stories over and over. It makes people afraid to explore the world. As corporations and organizations, we’re often spending too much time focused on fear and less on what’s possible and what to create.

Those companies that rise to the top buck the system and create a culture of innovation.

“WE SHOULD BE GIVING PEOPLE THE COURAGE TO FINISH WHAT THEY STARTED BY DISCOVERING THE RIGHT WAY TO DO THINGS ALONG THE WAY. THAT’S MAXIMIZING HUMAN POTENTIAL.” A lot of people look at Silicon Valley as the epitome of innovative culture.

That’s true for some people there. But there are pioneers in every field breaking the rules in innovation and creativity – boldly going where no one has gone. My favorite analogy about staying safe and conservative is the trapeze artist. If you’re in midair, you can’t reach the bar you want to grab unless you let go of the one you’re holding.

What people have you met who have these qualities?

I’ve met a wide variety of amazing people over the past 20 years who have produced extraordinary results. And success is not just about people who made a lot of money.

These are people doing non-profit work, or people in politics, music art and literature.

These are people who radiate delight. They wake up excited and love what they’re doing.

That’s the common factor.

These are people who live extraordinary lives with a sense of wonder and curiosity. They’re not coming from a place of entitlement or apathy with the attitude that “this is the way we’ve always done things.” They see life as adventure – not live it as a victim.

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Are these the people who eliminate the fear factor?

Well, everyone’s afraid. No one is immune.

If I’ve discovered anything it’s that we are more alike than different. At the end of the day we all put our pants on the same way and trying to find our way in the world. People would be better served by looking at others and being intrigued, not fearful. We have to confront fear all the time. The question is whether we allow that to stop self-expression.

In what way?

We spend too much time telling people they can’t do things and it stops them in their tracks. People will say you’re not qualified to do something, or you won’t make money at it, or that its already been done. Basically, they tell you why you’ll fail.

Were a culture of starters, but that’s the easy part. The real challenge is to finish something. It’s that last three outs in a ballgame, the last mile. We should be giving people the courage to finish what they started by discovering the right way to do things along the way. That’s maximizing human potential.

I guess it all gets back to coping with the fear of failure?

Everyone has fear. The question is whether you allow it to stifle self-expression. You have to be willing to make mistakes and handle rejection. No one writes a hit song or movie out of the gate. ■

MOMMY BLOGGER

Saved By The Snack L A R A B A L DW I N BLOGGE R

Snacks are the WD-40 of parenting; when stores support this it makes me feel a little less frazzled and a little more superhero.

I remember my early days as a frazzled, exhausted mother of two (last week), running into a friend and her three children at the bulk grocery store. I had two kids on the brink of a meltdown, but somehow her whole crew was quietly content as she strolled the aisles. “How do you do this?!”

I asked. “You are a shopping superhero!”

She laughed. “Oh, honey, you need snacks.

You can bring kids anywhere if you have enough snacks.”

Nowadays I’m strategic about snacks and know all the tricks to find every in-store opportunity to get one. And I’m not alone – parents everywhere rely on these measures to make it through their grocery list in peace.

when the employee discreetly asks me first before offering one to my kid. Stickers, though unfortunately not edible, are a nice alternative for parents who choose to forgo the sugar but still need a little incentive to get to the checkout.

In-Store Cafes Ask a mom if it’s a plus that she can pick up a latte for herself and a bag of crackers for her children while shopping and you will be met with a look as if you asked if it’s a plus that the store carried milk and eggs.

Samples I know moms who take their kids to sampledense stores for lunch. While I don’t go that far, I cannot deny the occasional tactical trip to stores I know will offer a sample or five.

My preschooler loves the mystery of what will be offered, and I love that it’s a surefire way to get him to try something new.

Fruit Wagon Bingo. Whether it’s an actual basket of fruit for kids to choose from or simply a policy that each child gets one piece per visit, this new trend is the gold standard when it comes to snacks. Some like to use the promise of that pear at the end of shopping while others go with the eat-whileyou-shop route.

Register Treats Usually a lollipop presented by the cashier as I swipe to pay. While I am not against an occasional sweet treat, I do appreciate

Either way it’s a win-win-win: kids get a snack, parents like that it’s healthy, and it seems like a great way for the store to offload some of those ripe bananas.

The only challenge is convincing my kiddo that he can’t choose a whole watermelon or pineapple.

Sure, I can (and do) bring my own snacks to the store, but everyone knows food is better when it hasn’t been unearthed from the depths of your mom’s purse. These tricks have all but ended the age-old dilemma of whether or not it’s acceptable to let my child consume an item off the shelves before paying for it (By my estimation, 90 percent of parents admit to this practice. The other 10 percent are lying). ■

iStock NEW JERS EY GRO CER | 43