California Grocer, 2012, Issue 5 by Digital Gear

C A L I F O R N I A G R O C E R S A S S O C I AT I O N

CALIFORNIA GROCERS ASSOCIATION

For the latest industry news visit www.cagrocers.com

2012, ISSUE 5

In This Issue BUILDING AN INNOVATIVE ORGANIZATION HELPING CUSTOMERS EAT HEALTHY SUSTAINABILITY: THE NEXT GENERATION

PRSRT STD US Postage Paid Permit No. 1401 Sacramento, CA

ISSUE 5

MILLENNIALS: WHO ARE THEY? SHOPPING IN A NEW ECONOMIC AGE

Perpetual Renaissance

BeefRetail.org

Free Retail Beef Resources The California Beef Council has a variety of FREE retail beef resources to help merchandise your beef case.

California Beef Council

Spanish-Language Beef Resources

4640 Northgate Blvd., Suite 115 Sacramento, CA 95834 916.925.BEEF (2333) Phone 916.925.8155 Fax Foodservice@CalBeef.org www.CalBeef.org

Beef Retail Newsletter Scan the QR code with your smartphone for beef retail information and to download a retail resources order form.

www.CalBeef.org • www.BeefItsWhatsForDinner.com www.BeefRetail.org www.ExploreBeef.org Renaissance means change for the• better. The modern retail grocery industry changes constantly and successful stores change with it. Independent grocery retailers use knowledge of their customers to adapt to their buying habits and Unified Grocers enables them to act quickly to change with the times. w

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Unified Grocers is a proud part of California’s Retail Renaissance.

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Beef & Veal Photography

Beef Value Cuts Information

Brochure Holders

Beef Training Programs

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Consumer Beef Brochures

2012

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Beef Cuts Posters

The California Beef Council’s newsletter provides retailers with new beef research information, beef story messaging, seasonal beef information and much more. To sign-up for the newsletter or to order FREE retail beef resources, contact:

Ph: 800-724-7762 | unifiedgrocers.com

California Beef Council 4640 Northgate Blvd., Suite 115 Sacramento, CA 95834 916.925.BEEF (2333) Phone 916.925.8155 Fax Foodservice@CalBeef.org www.CalBeef.org

www.CalBeef.org • www.BeefItsWhatsForDinner.com www.BeefRetail.org • www.ExploreBeef.org

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Customers will find CSCRC easily accessible | We are open daily from 7:00 a.m. to 6:00 p.m. For more information and to join the program today, call (818) 563-3070. To report a cart location, call toll free (800) 252-4613 24 hours a day, 7 days a week. 1020 North Lake St., Burbank, CA 91502

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CGA

| Board of Directors

E X E CU T I V E CO M M I T T E E

Chairman of the Board Jonathan Mayes Safeway Inc. First Vice Chair Kevin Davis Bristol Farms

CH A I RM A N A PPO I N T M E N T S D I RE CT O RS

SUPPLIER E X E CU T I V E COUNCIL

Dora Wong Coca-Cola Refreshments

Raul Aguilar Anheuser-Busch InBev

Diana Godfrey Smart & Final Stores

Phil Miller C&S Wholesale Grocers

Dirk Stump Stump’s Markets

Paul Cooke Nestle Purina PetCare

Rickey Hamacher Bimbo Bakeries USA

John Parke E & J Gallo Winery

Sam Tibbitts Holiday/Sav-Mor Foods

Richard Draeger Draeger’s Supermarkets, Inc.

Frank Jimenez The Hershey Company

Vinit Patel Unilever

John Eagan Costco Wholesale

Bill Jordan Whole Foods Market

Chuck Eckman, II Kraft Foods Inc.

John Kok Procter & Gamble

John Pellington Focus Brands West/ Niche Foods

Paul Turcotte Pepsi Beverages Company – WBU

Joe Falvey Unified Grocers, Inc.

Dave Madden MillerCoors

Phil Gentile K.V. Mart Co.

Dan Meyer Stater Bros. Markets

Jon Giannini Nutricion Fundamental, Inc. Warehouse

Omar Milbis Rio Ranch Markets

Rick Van Nieuwburg Altria Corp. Services

Robert Phillips, Dora Wong Coca-Cola Refreshments

Mickie Sharp-Villanueva Hansen Beverage Company

Vince Delgado Procter & Gamble

Raul Aguilar Anheuser-Busch InBev

Vic Chiono Coca-Cola North America – Minute Maid Business Unit

Elizabeth Alvarez-Sell, Brennan Bateman, Thomas Joyce The Hershey Company

Melanie Zitting, Sue Sharp Pure Water Technologies

Tom Driscoll Bunzl Distribution, Inc. Gilbert de Cardenas, Bob Cashen Cacique USA

C A LI F O RN IA G RO CE R

Immediate Past Chair Jim Amen Super A Foods, Inc.

Michael Read WinCo Foods, Inc.

Rickey Hamacher Bimbo Bakeries USA

Treasurer Mary Kasper Fresh & Easy Neighborhood Market Inc.

Secretary Kevin Konkel Raley’s

Dave Jones Kellogg Company

Mike Myers Berkeley Farms, Inc.

Second Vice Chair John Quinn Food 4 Less (Stockton) – Times Supermarkets

Victoria Horton California Beer & Beverage Distributors Cindy Plummer California Table Grape Commission Mark Cassanego Carr, McClellan, Ingersoll, Thompson & Horn Damon Franzia Classic Wines of California

Stephenie Shah Diageo David Cucuk ER Jones Management, Inc. Veronica Rendon Fresh Dairy Direct of So. Cal. Scott Johnson, Shannon Nadasdy Financial Supermarkets, Inc. Brian Rosen, Ann Wilson Gleason Inc. John Hewitt Grocery Manufacturers Association Derek Brewart, Cris Nunez Hamilton Brewart Insurance Agency

Brian Schmidt Acosta Sales & Marketing Jim Schulz International Paper Harish Solanki Big Saver Foods, Inc.

Donna Tyndall Gelson’s Markets Jim Wallace Albertsons/Sav-On Pharmacy Tammy Wilson Jax Markets

Mike Stamper Nestle DSD

Tim Cohen Hidden Villa Ranch Kristina Crystal-McVay The J.M. Smucker Co. Dave Jones Kellogg Company

Renee Wasserman Rogers Joseph O’Donnell Darrell Costello Roplast Industries Inc. Perry Sanders Sara Lee Fresh Bakery, California

Jamie Gray LOC Software

Greg Romero Stericycle ExpertSOLUTIONS

Dave Madden MillerCoors

Tom H. Daniel Sterilox Food Safety

Steven Schultz Moss Adams LLP

Phyllis Adkins TruGrocer Federal Credit Union

Paul Cooke, Karen Doggendorf Nestle Purina PetCare Jim Van Gorkom NuCal Foods

Vinit Patel Unilever

CONTENTS

F E AT UR E S

COL UM N S

Building an Innovative Organization

According to Terry Jones, innovation is not creativity. Creativity is thinking new things. Innovation is doing them. He should know. As founder of Travelocity.com and now chairman of kayak.com, Jones knows a lot about innovation and will share his insights at this year’s CGA Strategic Conference.

Healthy Foods Good for Retail

Celebrity chef Ellie Krieger and Janet Myers, senior director, retail culinary experience for Kraft Foods share their insight on how retailers can help consumers desire simple and healthy eating and in turn make healthy foods profitable.

Millennials: Who They Are & How They Shop

Millennials are going to redefine retailing. They are not fans of tradeoffs and are accustomed to having their cake and eating it too. So says the founder of 9dotz.com, a San Francisco-based firm specializing in generational advertising and marketing.

President’s Message Proposition 37 – The Right To Sue!.................. 7 From the Chair CGA Membership – Capture the Enthusiasm...... 9 Foundation News – Shiloh London Investing Today in Tomorrow’s Work Force.. ........... 11 Viewpoint – Kevin Coupe Go West, Middle Aged Man . . ..................... 12 Capitol Insider The Business of Lobbying............................. 27 Perspective – Chris Micheli 2012 California Workers’ Compensation Reform Package Enacted............................. 31

D E PARTM E N TS

Sunset Fresh Market News....................... 14 CGA News............................................ 18 Government Relations................................ 20

Connecting With Shoppers In a New Economic Age

Q&A: Herb J. Wesson Jr. ........................... 34

It’s not so much about how the economy is affecting consumer spending as it is how it affects the ways consumers get ready to spend, according to Larry Levin, executive general manager, consumer insights for SymphonyIRI.

Sustainability: The Next Generation

| Issue 5

Washington Report................................... 36 Know the Law......................................... 84 Wealth Management................................. 86 Advertiser Index...................................... 88

Are sustainability and environmental issues taking a back seat as consumers focus on jobs and the economy? No says the founder of a consultancy firm focused on environmental planning, policy and development.

C AL IFO R NI A G R O CE R S A S S O CI AT I O N

President/CEO Ronald Fong

Director, Events & Sponsorship Beth Wright

Vice President, Government Relations Keri Askew Bailey

Director, CGA Educational Foundation Brianne Page

Vice President, Business Development & Marketing Doug Scholz

Director, Local Government Relations Sarah Paulson Sheehy

Publisher Ronald Fong E-mail: rfong@cagrocers.com Editor Dave Heylen E-mail: dheylen@cagrocers.com For advertising information contact: Tony Ortega E-mail: tortega@cagrocers.com

California Grocer is the official publication of the California Grocers Association.

1215 K Street, Suite 700 Sacramento, CA 95814 (916) 448-3545 (916) 448-2793 Fax www.cagrocers.com

C AL I F O RN IA GR O CE R

Vice President, Communications Dave Heylen

Executive Director, CGA Educational Foundation Shiloh London

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President’s Message |

RONALD FONG President/CEO

Proposition 37 – The Right To Sue! With the Legislature packed up and home for the election season, CGA has largely turned its attention to Proposition 37 – an initiative that will appear on the November General election ballot here in California. Most of our readers are well aware of the challenges this deceptive “right to know” initiative will present for the entire food industry and ultimately consumers. In reality, Prop 37 should be called the right to sue! Proposition 37 is not a simple labeling measure as proponents claim. It contains provisions that will result in shakedown lawsuits, it exempts huge categories of foods and will increase bureaucracy, red tape and taxpayer costs, all without providing any health and safety benefits. The initiative requires documentation that proves that unlabeled products are free of genetically engineered ingredients. Grocers, suppliers and farmers will have to track and keep records for tens of thousands of food products. Certainly a logistical nightmare! The proposition specifically states that lawyers don’t need any proof of

damages in order to file a lawsuit. It will subject our industry to enormous litigation costs, regardless of the outcome. I recently testified at a joint Legislative informational hearing on the proposal. Legislative Committees are required to conduct a public hearing to vet the pros and cons of any ballot initiative under their jurisdiction. On September 13, it was the Senate and Assembly Agriculture Committees’ turn to vet Prop. 37. And although the hearing was not intended to sway opinion or reach voters with any message, it was important that our side of the story be told. With the non-partisan Legislative Analyst’s Office noting that 88 percent of corn and 94 percent of soybeans would be considered genetically engineered while 40-70 percent of the processed foods on grocery shelves contain one or more GE ingredient(s) it is hard to imagine any issue of greater importance facing our industry in November. The retail food industry has a long history of putting consumers first. We are leaders in food safety, sustainable practices, and ensuring that families are able to fill their cupboards and coolers with the food they want and need. Although we generally support being responsive to consumer requests for information about their food, at times the method to reach objectives is simply unacceptable. Prop. 37 is one of those times.

C AL I F O RN IA GR O CE R

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Early Detection Saves Lives P&G will donate 2¢ for every 9/30 brandSAVER coupon and 1¢ for every 10/14 brandSAVER coupon redeemed to National Breast Cancer Foundation to help with early detection.

From The Chair |

J onathan M ay es

Senior Vice President, Government Relations, Public Affairs Corporate Social Responsibility & Community Relations

CGA Membership – Capture the Enthusiasm Ralph Waldo Emerson once wrote, “Nothing great was ever achieved without enthusiasm.” One of many blessings this year, as CGA chair, is the opportunity to become acquainted with many of you, and to observe first hand the contagious enthusiasm for your work and our trade association.

CGA members have access to the CGA Educational Foundation’s College Scholarship and Career Development Tuition Reimbursement programs that provide employees and their families with tuition assistance and help with other education expenses.

I’ve also deepened my understanding about CGA and the many benefits of membership, and I’d like to share some highlights.

CGA provides an important forum for members to participate on a broad spectrum of industry committees, such as Government Relations, Human Resources, Legal Advisory, WIC/EBT, Loss Prevention, and others.

First, CGA’s mission is to “serve, represent and educate its members on both state and local levels.” By passionately pursuing this mission, CGA enables members to focus on what we do best – running our operations. CGA membership is highly diverse, with hundreds of independently-owned neighborhood and convenience stores to large supermarket chains, national suppliers and wholesalers. CGA has an active and effective government relations team. This year, the California state legislature proposed more than 4,000 bills with many impacting our industry in some way. Issues range from employment and environmental laws, food processing, transportation, workers compensation, paper and plastic bags, and many others. CGA also has a strong local government relations program, which tackles issues that often lead to statewide legislation.

Finally, CGA’s Strategic Conference is full of insightful education sessions with a focus on trends, issues and solutions that impact our industry. It also provides an enjoyable setting for networking opportunities and business meetings. If you’re already a CGA member, thank you! If you know of others who would benefit from membership, please let CGA know. n

C AL I F O RN IA GR O CE R

The Association provides timely information to keep members well-informed about important aspects of the California grocery industry. That occurs through this award-winning bi-monthly magazine, CGA’s weekly e-newsletter, product recall alerts, blogs, and other ways.

(l to r) Donna Tyndall, Gelson’s Markets; CGA Chair Jonathan Mayes, Safeway Inc., and Kevin Davis, Bristol Farms during a legislative visit at this year’s Grocers Day at the Capitol.

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Ca l i f o r n ia G r o c e r s A ssoci at i on E ducat i onal Foundat i on

2012 Hall of Achievement Dinner & Reception Thursday, October 18, 2012 San Ramon Marriott, San Ramon, CA

Bruce Everette

Dave Jones

Executive VP, Retail Operations Safeway Inc.

VP, Industry Initiatives The Kellogg Company

Proceeds from this event benefit the college scholarship and career development tuition reimbursement programs. For more information, including online registration, visit www.cgaef.org, or call Brianne Page at (916) 448-3545.

For the first time, there is now more student debt than credit card debt in America — to the tune of $1 trillion in student loans. A staggering figure. Despite increases in total dollars raised at fouryear institutions across the U.S. in 2011, the future doesn’t look good for those wanting to continue their education. As tuition costs rise and donor pools shrink, students are going to get squeezed out of scholarship opportunities and take on more debt as a result, or simply opt not to attend college.

investment for a company-supported tuition assistance program. The report, “Employer Value from Investing in Workforce Education,” details how tuition assistance can not only attract new employees, but also enhance performance ratings, job mobility and employee retention rates.

Back in 1991, facing a period of economic turmoil, the CGA Educational Foundation’s founding trustees knew that an investment in education would be the catalyst for retaining the skilled individuals that would make the grocery industry even stronger in the future. Little did they know some 20 years later our country would be weathering a similar economic storm.

Interestingly, the study also suggests that contrary to the widely held “learn-and-leave” notion among executives, employees that were offered tuition reimbursement experienced aboveaverage tenure, retention, and job movements during the study period.

With more college students looking for financial support, it comes as no surprise this year that the Foundation awarded a record $341,250 in college scholarships to 258 deserving students – a $60,000 increase over a year ago. In two decades, almost $3 million has been awarded. The Foundation has also witnessed a record 73 percent increase in the Foundation’s tuition reimbursement program this year and fall semester has yet to come to a close. The Foundation is anticipating reimbursements to be well over $100,000 for 2012.

Many CGA members, both retailers and vendors alike, have taken advantage of the Foundation’s scholarship and tuition reimbursement programs. If your company isn’t utilizing the Foundation’s educational programs, I encourage your human resources department to visit the Foundation’s new website, www.cgaef.org, today, or call (916) 448-3545. n Shiloh London, Executive Director, CGA Educational Foundation

C AL I F O RN IA GR O CE R

Bellevue University’s Human Capital Lab recently released a report validating the return on

Future generations of young people can’t hope to thrive when they begin their careers with massive student loan debt. As the necessity of bachelors and advanced degrees for many jobs continues to grow, our ability to build scholarship and tuition reimbursement programs for college students becomes even more important.

cga ed u cational fo u ndation

Investing Today in Tomorrow’s Work Force

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Viewpoint |

KEVIN COUPE

Go West, Middle-Aged Man At my age, 57, life-changing experiences don’t come around all that often. When they do, they often involve a blonde, a motorcycle, a tattoo, body piercings, alcohol, sex, drugs and divorce. Or, the prostate. I got lucky. This past July, I had a life-changing experience and none of the above was involved. And, I even got some business lessons out of it. Let me explain...

C A LI F O RN IA G RO CE R

I was hired by Professor Tom Gillpatrick of Portland State University to team-teach a class with him on CPG/retail marketing. This was something I’ve always wanted to do; I have no desire to become a fulltime teacher, and it probably is a little late in life to go back and get both the masters and doctorate that I’d need to become a tenure-track college teacher, but I’ve enjoyed the times I’ve gotten to guest lecture and thought this would be an interesting experience.

Now, this wasn’t an easy thing to do from a logistical point of view. I live in Connecticut, except for three years attending Loyola Marymount University, I’ve always lived within 30 miles or so of New York City. (Not that I wanted to, but as John Lennon said, “Life is what happens when you are making other plans.”) But this required moving 2,500 miles for an entire month, to a city I’d only visited for a day or two at a time, to do a job for which I had marginal experience. Well, let me tell you... it was one of the best decisions I’ve ever made. Even though I travel a lot (my wife likes to say that while we’ve been married for 29+ years, I’ve really only been around for about 20 of them), the reality is that when one has been in the same place for too long, you cannot help but get caught in a rut.

Doing something completely different, in an entirely different place, is good for the soul, good for the spirit and good for the intellect. Whether it means having to find a place to get coffee in an unfamiliar neighborhood, locating a local dry cleaner, or figuring out where to go shopping for food, even the little challenges make you look at the world differently. In terms of food shopping, I tried a lot of different options — a local Safeway, a New Seasons Market (which is sort of a street-savvier Whole Foods), Zupan’s (an upscale fresh foods-driven independent), as well as some local shops, and price-driven formats like WinCo Foods and Grocery Outlet. Seeing these stores through a shopper’s eyes, as opposed to a writer’s eyes, made me see them and evaluate them differently. (I found things I liked at each of them, and if I lived there permanently, I’d probably find a way to spread my buying dollar around.) As for the teaching... well, I have to tell you that it was a blast, mostly because the students were so extraordinarily thoughtful.

As for the teaching... well, I have to tell you that it was a blast, mostly because the students were so extraordinarily thoughtful. The first thing I asked each of the students to do was to write a short essay on the subject of their most memorable meal. I have a bias that too many people in the food business think only in terms of category management, sales lift and profit margins, and don’t think enough about food. So I wanted the students, to use a familiar phrase, to think different. I was blown away by the essays. They ranged from meals eaten in a four-star restaurant in Beirut to quieter, more intimate dinners shared

Viewpoint |

at home with family and friends. In each case, the passion was clear. One of my favorites was written by a man who said that his most memorable meal consisted in part of rice and A-1 steak sauce consumed on Christmas Day; he was serving in Afghanistan, had just returned from patrol, and, he said, it was memorable because he was with his brothers, all of whom he would have died for, and each of whom would have died for him. Puts things in perspective, doesn’t it? I think that one of the reasons that they did so well on these essays is that they were being challenged to use a different side of their brains. And they seemed absolutely primed to do so — there was not a slacker in the bunch, and when you spend time with people who are hungry for knowledge and ready to soak up anything you offer them, it is infectious. In fact, if you ever get the chance to spend anytime in a college classroom sharing your knowledge and experiences, I urge you to do it. It has never been less than wonderful for me, and July at Portland State was like wonderful on steroids.

One final business lesson from my trip, if I may...

The third time was the charm, and when he handed me the latte, I couldn’t help myself. So I asked him: “I’m just curious. What was wrong with the first two?” The fellow who helped him, who I later learned was named Bo, came over and said that, in fact, a large nonfat latte was one of the hardest drinks to make – skim milk doesn’t hold together the way whole milk or even one percent or two percent milk does, and so if they get to the end and they’re ready to put a design into the foam and it isn’t holding together right, they dump it and start over. Now, I was fascinated by this. I’ve been drinking large nonfat lattes for more than a decade now, and nobody ever told me before that it was a hard drink to make. And then I asked him: If I’d been getting this to go, and you were putting a top on the cup, would you have gone to all this trouble to make sure the squiggle was right? Bo grinned. “It’s not worth doing if we can’t do it right,” he said. Boy, was that exactly the right answer. It is just that kind of dedication to excellence that every retailer should be seeking in its employees. Because the thing is, sometimes we can see the stuff that matters, and sometimes we can’t. But it all matters. Even the little stuff. n

One of the many pleasures that I discovered in Portland was a place called Stumptown Coffee Roasters, a local treasure where the coffee is terrific, the ambience is authentic downtown Portland, and the people-watching can be rewarding.

One morning I ordered a large nonfat latte, grabbed a seat at the counter, pulled out my iPad and started going through email. I kept one eye on the barista and noticed when he seemed to start making what was going to be my latte. A couple of emails later, I realized that I hadn’t gotten my drink so I took another look... and he seemed to be starting the process all over again. I didn’t think too much of it, and went back to my emails.... but noticed this time when he got almost done, took a look, dumped it out and started over yet again, this time calling over someone to help him.

C AL I F O RN IA GR O CE R

One friend of mine, a senior retailing executive, got a dose of that when he came into the class to chat one evening. Afterwards, one of the students hung around... and promptly asked if he could go with the guy on store visits the next day. The executive didn’t blink – he jumped at the request and I’m told that they both learned something that morning.

KEVIN COUPE

Inspire, Educate, Innovate S ee how smart recipes help grab today ’s b us y cons umers .

When it comes to recipes, the food editors at Sunset like to shake it up a bit.

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FRESH MARKE T NE W S 14

“We’re constantly twisting the familiar, like jazzing up Thanksgiving mashed potatoes with a spicy butter,” says test kitchen manager and recipe developer Stephanie Spencer. This new-twist approach helps readers learn and think about ingredients in unexpected and innovative ways, whether they’re using familiar staples, like mashed potatoes, or more unusual foods, like lemongrass. That’s why, earlier this year, she was in the Sunset kitchen pondering hazelnuts.

Recipe Finder Myrecipes.com Recipes from Sunset and other Time Inc. publications Walnuts.org Recipes from California Walnut Board Spencer thought these flavorful nuggets would be a great ingredient to showcase in unexpected ways. “I wanted readers to think of hazelnuts beyond putting them in a bowl with a nutcracker or tossing them in a salad,” she said. With Oregon hazelnuts coming into markets in November, she aimed to come up with “comforting desserts” for the October issue, a good start to the holiday season. So, Spencer got cooking – grinding hazelnuts to make a chocolate-hazelnut spread and a rich crust for a tart, and crumbling the nuts into a gooey-delicious maple cookie. Sunset isn’t the only one that likes to twist it up a bit with familiar ingredients like nuts. “We are always brainstorming quick, easy ways to add walnuts to meals that are not necessarily

top of mind,” says Jennifer Olmstead, domestic marketing director for the California Walnut Board & California Walnut Commission, which represents 99 percent of U.S.-produced walnuts. According to Olmstead, the organization turns to chefs and food experts for “delicious seasonal recipes with walnuts.” It also aims to spread the word in innovative ways. Consumers can now go online to access the new Chef Menus at Home program. “Well-known chefs develop dishes with walnuts that are great for entertaining but easy enough for the home cook to prepare,” says Olmstead, noting that each menu features a short video to demonstrate a new cooking technique. Inspire, educate, innovate. Not a bad mantra for reaching today’s ultra-busy consumers. n — Harriot Manley

Uncommon Diversity

Market of Choice

Super A Foods

Gelsonâ&#x20AC;&#x2122;s Markets

Evergreen Market

Unified Grocersâ&#x20AC;&#x2122; member retailers are as diverse as the communities they serve. There are regional chains, single store operators, upscale urban stores and multi-ethnic grocers supporting rapidly changing communities. All of them have unparalleled familiarity with the customers they serve and the versatility to serve them well. They are all very different, but they have one thing in common.

t ing 90 ye ra

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2012

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They are Unified.

of Grow rs

Ph: 800-724-7762 | unifiedgrocers.com

â&#x20AC;˘ Cel

YEAR OF THE

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visit www.pge.com/tou to try these tools for yourself and discover other ways to save. or call us at 1.800.468.4743.

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CG A NE WS

New Members CGA wo u ld like to recognize its new members of 2012!

People Water 922 S State Rd Pleasant Grove, UT 84062-3742 Phone: (855) 377-4377 Contact: Caden Rutter caden@peoplewater.com www.peoplewater.com

Early On, Inc 1192 Vanderbilt Cir Manteca, CA 95337-6121 Phone: (877) 528-2229 Fax: (209) 825-5414 Contact: Dave Douglas dave@earlyon.com www.earlyon.com

McNairn Packaging, Inc. 6 Elise St Westfield, MA 01085-1414 Phone: (413) 568-1989 Fax: (413) 562-1903 Contact: Karl Unger kunger@mcnairnpackaging.com www.mcnairnpackaging.com

Shelter Cove General Store, Inc. 7272 Shelter Cove Rd Whitethorn, CA 95589-8959 Phone: (707) 986-7233 Fax: (707) 986-7739 fax Contact: Thomas Machi scgeneralstore@gmail.com www.sheltercovegeneralstore.com

Flowers Baking of California 10625 Poplar Ave Fontana, CA 92337-7335 Phone: (909) 350-3328 Contact: Thomas Wilson tom.wilson@flocorp.com www.flowersfoods.com

Colonial Life 41960 Avenida De Anita Temecula, CA 92592 Phone: (760) 285-1144 Fax: (951) 308-2421 Contact: Steven Russell steven.russell@coloniallife.com

Gizmo Beverages 900 S Main St - Penthouse Los Angeles, CA 90015 Phone: (281) 300-1009 Contact: Brad Foster brad.foster@gizmobeverages.com www.teaofakind.com

Recent members that became a part of CGA: Corrigo Incorporated Durham Brands Tropicale Foods, Inc. Beef Information Center

Kayem Foods

Prudential Overall Supply

Enformed

LOC Software (SEC)

Pure Swiss Inc.

LYFE Kitchen Retail LLC

Pure Water Technologies (SEC)

Martin Container, Inc.

rePLANET, LLC

MOM Brands Moss Adams LLP (SEC)

Sheppard, Mullin, Richter & Hampton SmartSweep Stericycle ExpertSOLUTIONS

ER Jones Management Inc. Fresco Foods

California Table Grape Commission (SEC)

FrutStix

CAM Services

Hamilton Brewart Insurance Agency

Nor Cal Beverage Co., Inc/ Go Girl Energy Drink

Cardenas Markets, Inc.

Itasca Retail

Nugget Markets

Sunflower Farmers Market

Central Valley Ag Export

Jensen’s Finest Foods

OfficeMax Inc.

Tampico Spice Company

C A LI F O RN IA G RO CE R

Amoretti Company

Don Pedro’s Kitchen (SEC)

Day-Lee Foods, Inc.

Jerry’s Bags & Labels

The Clorox Company

Del Real Foods

Karl Strauss Brewing

Prime Plastic Products, Inc.

Gongco Foods/Food 4 Less

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go v ernment relations

B everage C ontainer R ec y cling P rogram to Take Center S tage

Less than a year after a government reorganization transferred responsibility of the Beverage Container Recycling Program (the Program) to the newly created Department of Resources, Recycling & Recovery, the new agency plans a top-to-bottom review of the Program. And at this point, everything is on the table for potential reform of the law, which is more than two decades old. In many ways, the Program has become a victim of its own success. Designed to remain solvent only until container recycling rates reach roughly 65 percent, Californians are now recycling well more than 80 percent of covered containers. The high recycling rates coupled with significant borrowing from the Beverage Container Recycling Fund (the Fund) in recent years has left the Program on the brink of collapse. All Program participants are facing significant challenges, including manufacturers, recyclers and retailers. Historically, reforms have been cobbled together in the final weeks of the Legislative session – a process that often forced stakeholders to accept unwanted “reforms” to stave off even more dire consequences. The current plan calls for no fewer than a dozen public hearings over three months to examine every aspect of the Program. It is the first such comprehensive review since the Program’s creation. State F inally Iss u es “ Green Chemistry ” Reg ulations

C A LI F O RN IA G RO CE R

After nearly three years of informal work, the Department of Toxic Substances Control (DTSC) has released its first formal proposal for regulations implementing California’s ambitious “Green Chemistry” law.

In 2008, Assembly Bill 1879 (Chapter 559, Feuer) and Senate Bill 509 (Chapter 560, Simitian) were signed into law by then-Gov. Arnold Schwarzenegger to create an online database providing data on chemical, toxicity and hazard traits to the market place and public and to create a systematic, science–based process to evaluate chemicals of concern and identify safer alternatives to ensure product safety. The effort was intended to be a more palatable alternative to

the politicized process of Legislative regulation of individual chemicals. Unfortunately, the 78-page initial draft leaves much to be desired and some question whether this approach is actually going to prove workable for manufacturers and retailers. Initially, the DTSC would weigh literally thousands of chemicals to determine which to prioritize and then begin work to pare down the thousands of products containing one or more of those identified chemicals to create a list of products that must be evaluated. Proposed regulatory actions, based on what could be year-long analyses of products, include outright bans, sales and marketing restrictions, or mandated consumer education. Comments on the proposal are due in November, and it is expected final regulations will be promulgated by early 2013. W I C R eform B ills S u rvive L egislative S cru tin y

Two separate bills seeking to make reforms to governance of the California Women, Infants & Children (WIC) supplemental nutrition program have reached the Governor’s desk. Each deals with specific issues that have come to light since California instituted an indefinite moratorium on vendor applications in April of 2011. The ongoing moratorium, and the U.S. Department of Agriculture’s unwillingness to budge on the issue, has created significant competitive issues for California grocers and in many cases reduced access for WIC clients. AB 2280 (Lara) This measure seeks to clarify existing law with regard notice for vendors accused of a violation. Specifically, AB 2280 reiterates an obligation to provide a vendor with at least 30-days’ notice of an alleged violation prior to re-inspection. While current Federal regulations require states to inform vendors of alleged program violations prior to re-inspecting, in many cases California has not been doing so. The practical effect is vendors become subject to program suspension without ever having an opportunity to provide additional staff training or identify where problems exist within their own operations. While CGA and its member companies Continued on p.21

Congratulations Kevin Davis of Bristol Farms, as the incoming Chairman of The California Grocers Association. A big thank you to Jonathan Mayes for all his hard work and dedication over the past year.

Government |

relations

Continued from “Government Relations”

fully support efforts to identify and eliminate fraud that may exist in the WIC program, it makes little sense to engage in a game of “gotcha” with responsible vendors particularly in light of the ongoing application moratorium. AB 2280 has the support of the vendor community including CGA, the California Chamber of Commerce and the California Retailers Association. AB 2322 (Gatto) This measure seeks to require more information from California WIC when instituting or extending any future moratoria and to establish a process to quickly adopt changes necessary to obtain USDA authorization to lift the current moratorium. Specifically, AB 2322 requires the Department to outline the reasons it is calling a moratorium along with a specific action plan to address the root causes. In addition, the bill requires at least 30-days’ notice prior to instituting or extending a moratorium. Finally, the bill authorizes an expedited regulatory process when the Department adopts regulations regarding the authorized food list, reimbursement rates, peer groups, and vendor qualification. It is expected that California will receive a set of requirements and recommendations from the USDA in the last quarter of 2012 that must be implemented prior to the current moratorium being lifted. AB 2322 sets up an expedited process to make necessary changes, while preserving public notice and comment requirements of the Administrative Procedures Act. The process is currently used widely in other social service programs that involve joint Federal-State administration and authority.

C A LI F O RN IA G RO CE R

AB 2322 has the support of the vendor community, including CGA, the California Chamber of Commerce, the California Retailers Association, and the California Farm Bureau Federation, along with the Western Center on Law and Poverty and the California WIC Association.

C GA E ngages E fforts to R eform AD A

One of the other major reform bills passed at the end of the Legislative Session was Senate Bill 1186. CGA was an active member of the working group to develop changes to the manner in which California lawsuits are handled involving the Americans with Disabilities Act (ADA).

The measure is intended to curb abusive lawsuits, while promoting increased compliance with disabled accessibility building codes throughout California. After months of negotiations, those changes were added to SB 1186 (Steinberg and Dutton). The major provisions of this important reform legislation are:

1. Reduced statutory damages and litigation protections for defendants who correct violations

2. New provisions to prevent “stacking” of multiple claims for the same violation to simply increase statutory damages

3. Ban on demands for money and new rules for demand letters

4. N ew pleading with specificity requirement for demand letters and complaints

5. S tate Bar review of demand letters; violations of the demand letter and demand for money provisions would be grounds for attorney discipline

6. Mandatory evaluation conference at the option of either defendant or plaintiff

7. Mandatory notice to property tenant of CASp status of the property

8. California Commission on Disability Access to receive copies of complaints and demand letters, and tabulate data on the top ten types of alleged violations

9. CCDA to promote and facilitate accessibility compliance

10. Required information regarding disability access compliance to businesses upon renewal of business license

11. New add-on fee of $1 to business licenses to strengthen CASp program and develop educational and training resources at the State and local levels to promote compliance California has 40 percent of the nation’s ADA lawsuits, but only 12 percent of the country’s disabled population. Unfortunately, a small number of enterprising attorneys have utilized the laws to garner financial settlements that do not often result in increased ADA compliance. n

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California Grocers Association has a new Facebook page we hope you “Like”! When you “Like” CGA’s Facebook page you’ll stay on top of the latest news and events in California’s robust grocery industry. News, trends, updates, and more are in-store when you join CGA’s Facebook community. For more information, or questions, contact Dave Heylen, CGA, at (916) 448-3545.

Capitol |

INSIDER

The Business of Lobbying Similar to the final minutes of a championship game, the final weeks of a legislative session is a short, intense time period with long term ramifications. The business of lobbying the California State Legislature is always challenging and interesting because of its complexity and the multitude of issues that come into play on a daily basis. However, during the last two weeks of the Legislative Session everything is intensified by an order of magnitude.

continue to meet with legislators in order to ascertain the necessary support to move these late amendments through the process.

While every day is different, I thought a snapshot in the life of a lobbyist during the last two weeks of session might provide some insight into the business of influencing the governmental process. Here is a synopsis of the last two weeks of session:

Monday, August 20 This is the first day of the last two weeks. Only Floor Sessions are scheduled. Committee hearings can only occur with a rule waiver and during the last two weeks rule waivers become common place. Members will be flying in from their district so Session is not scheduled to begin until early afternoon. Once gaveled in, they will only “work” for a couple hours passing legislation with support on both sides of the aisle. The calendar includes meetings on legislation dealing with plastic bags and recycling. Neither bill is in print with the language we will be discussing but at this time of the year such things don’t matter.

Tuesday, August 21

The list of bills amended now exceeds 40 pages. We spend a good portion of the day reviewing these amendments searching for language that might impact the grocery industry. Session convenes at 10:00 am and lasts until 5:00 pm.

Thursday, August 23 The Legislature has worked four days in a row and passed a respectable number of noncontroversial bills. The Senate works until mid-afternoon and call it a week knowing that the final week of session will be hectic and that a number of major issue items have yet to be resolved. The Senate Environmental Quality Committee is scheduled to hear AB 2670 upon adjournment of the session but the hearing is cancelled leaving many to believe the bill is dead for the year.

Friday, August 24 This is the last day to amend bills in either house without a rule waiver. The Assembly meets in

C AL I F O RN IA GR O CE R

Session convenes at 10 am. Both houses are expected to be in until late afternoon followed by a late night of fundraisers. The workload is light because many of the bills passed by the Appropriations Committees the prior week have yet to be amended. As those bills begin to see the light of day, AB 2670 (Chesbro) has been amended to include a new requirement on grocery stores to separate all food waste and contract with carriers to compost this waste rather than diverting it to landfills. We quickly help coordinate a coalition to oppose this bill. The other bill, the one dealing with handling fees, AB 1933, is now in print. We

Wednesday, August 22

Continued on p.28

Capitol |

INSIDER

Continued from “The Business of Lobbying”

Session because its rules require amendments to be presented on the Floor during Session. The Senate Appropriations Committee meets and hears a number of bills including AB 1933. The committee amends the bill reducing the amount of time the revised formula for handling fees can be used due to opposition from other bottle bill stakeholders. SB 863, the workers’ compensation legislation, is now in print and gathering a lot of attention. Business and labor are actively supporting the measure, while the applicant attorneys are aggressively opposing it. AB 1634 is amended with the same language we opposed in AB 2670. We now focus our attention on this bill. Numerous meetings take place to discuss a strategy for moving plastic bag legislation.

Monday, August 27

C A LI F O RN IA G RO CE R

This is the first day of the last week. All bills must be passed by the Legislature by Friday at midnight or they are dead. The only exception made is for bills that include an urgency clause which requires a two-thirds super-majority to pass. Session convenes in early afternoon. AB 1634 is referred to the Senate Rules Committee which is a signal to us it is dead for the year, but we don’t dare let our guard down. AB 1933 is eligible for a vote on the Senate Floor but no action is taken. Meetings to discuss plastic bag legislation continue with progress being made but no language is available to amend into a bill. The workers’ compensation legislation is amended.

Tuesday, August 28 Both houses have scheduled numerous committee hearings throughout the day to hear bills recently amended. Both houses convene at 10:00 am. The rumor around the

Capitol hallways is that the Senate Democrats are not happy with the workers’ compensation legislation and have threatened to kill it if further amendments are not made. The pension reform package is released. AB 1933 is eligible for a vote but is not brought up.

Wednesday, August 29 Time is running out and Legislators are feeling pressure to put deals together. We continue to work for the votes on a plastic bag bill but are running into roadblocks in the Senate. Language is finalized and ready to go when and if we can show leadership we have a majority of the Senate in support. AB 1933 remains eligible for a vote but is not taken up. This is the first late night session with both houses working until 9:00 pm.

Thursday, August 30 Both houses work throughout the day on a variety of bills. It seems as if the only bills left are the controversial measures because the debate on the respective house floors has become much more intense. One bill may take up to two hours. Our meetings with environmental advocates and legislative staff are beginning to pay-off on the plastic bags issue. We receive additional support commitments but have yet to obtain the majority needed. Many legislators are beginning to feel overwhelmed with the number of last minute large deals and are simply not able to focus on other matters. SB 863 is amended again, this time with language seeking to obtain the support of the Senate Democrats. Advocates, legislative staff and the Governor’s team work throughout the night to fine tune the proposal.

Friday, August 31 The last day of the Session. Many of us are invited

Capitol |

into the Governor’s office at 9:00 am to hear about the deal made with the Senate Pro Tem on workers’ compensation and are asked to help get the bill through both houses prior to the midnight deadline. Each house has

Time is running out and Legislators are feeling pressure to put deals together. about 100 bills remaining, including workers’ compensation, pension reform, driver’s licenses for undocumented immigrants and others much less controversial. Both houses work throughout the day stopping only when one house is forced to wait for the other to conduct business and send matters over. AB 1933 is finally brought up for a vote in the Senate. It 3:13:28 passes CGA_Ad_TADIN_NECB.pdf 1 9/10/2012 PM with bipartisan support and is sent back to the Assembly for concurrence. The workers’ compensation and

INSIDER

pension reform packages pass both houses by large majorities. Both houses work right up to the midnight deadline with some bills ultimately failing because time ran out on another legislative session. In the end, the halls clear at about 2:00 am after everyone has said their goodbyes. Most in our business will now turn their attention to the November election, which will result in a large number of new faces in the State Capitol. We will then start the process all over again when the new class is sworn in on December 3. n This article was authored by Louie Brown, a partner in the Sacramento office of Kahn, Soares and Conway, LLP.

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Perspective |

C hris M icheli

2012 California Workers’ Compensation Reform Package Enacted As California grocers are well aware, workers’ compensation costs have been on the rise the past few years. These increased costs are being paid by employers, while injured workers are not seeing benefit increases. Most agree that delays and frictional costs in the workers’ compensation system are to blame. Both employers and workers want to ensure that injured workers receive timely medical care and appropriate benefits to ensure prompt return to work. As a result, organized labor and employer representatives spent many months in 2012 negotiating numerous changes to California’s workers’ compensation laws, that were eventually dropped into SB 863 (de Leon), which is expected to be signed by the Governor. This reform package began after completion of almost three years of research by the Commission on Health and Safety and Workers’ Compensation. Moreover, the Department of Industrial Relations held a series of statewide hearings to receive recommendations from interested parties to improve the comp system. Those negotiations took place with involvement of key members of the Brown administration, as well as major businesses including Disney, Safeway and Grimmway Farms. Workers were represented by the California Labor Federation. The last reforms to California’s workers’ compensation system were enacted in 2004 under the Schwarzenegger administration. Although comp costs were substantially reduced after they peaked in 2003, insurance costs have steadily risen over the past half a dozen years.

Benefit increases have to be offset by more than equivalent savings in the system. The resulting changes contained in SB 863 center on four major areas:

Improved Medical Treatment

Increased Permanent Disability Benefits

Decreased Friction and Inefficiencies in the System Stabilized Insurance Market

Some of the major reforms include: independent medical review, modeled after the health insurance process, to help minimize delays in medical treatment with quick turnarounds and evidence-based treatment guidelines. Medical access assistants are created to assist injured workers. An estimated benefit increase of over $700 million will be provided during a phasein of two years. Several adjustment factors for future earning capacity are eliminated. The bill also contains significant changes to the lien process, including imposition of a filing fee and independent bill review process for adjudication of billing disputes. New fee schedules are also established for certain services and equipment. There is some disappointment that the Workers’ Compensation Insurance Rating Bureau would only recommend a 1 percent decrease in the planned 12.6 percent advisory pure premium rate increase that will take effect Jan. 1, 2013. Nonetheless, all major employer groups, including CGA, were in support of the package because it

Empirical data showed that injured workers require increased permanent disability benefits;

Delays and system costs hurt everyone;

C AL I F O RN IA GR O CE R

Shortly after the statewide listening tour was completed by the DIR staff, labor and employer groups negotiated over three major principles:

Continued on p.32

Perspective |

C hris M icheli

Continued from “2012 California Workers’ Compensation Reform Package Enacted”

reflected a negotiated compromise to provide a substantial increase in PD benefits, as well as eliminate waste and inefficiencies that result in unnecessary employer costs.

The following is a summary of the major provisions of SB 863: n

Eliminates the Workers’ Compensation Appeals Board’s authority to adjudicate medical treatment disputes that are directed to the Independent Medical Review system. Establishes the IMR process, patterned after a similar process used for resolving health insurance disputes in order to resolve medical treatment issues. This process is binding on all parties absent certain circumstances.

Allows employees to appeal utilization review decisions under specified circumstances. n

C A LI F O RN IA G RO CE R

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Establishes an Independent Bill Review process to take medical billing disagreements out of the jurisdiction of the WCAB adjudication system. Repeals the requirement that a second opinion be obtained in cases of spinal surgery. Establishes a prohibition for any interested party in the WC system to have a financial interest in another entity to which it is referring a party for services or for which it is paying or receiving compensation. Increases PD benefits by approximately $740 million per year, to be phased-in over a two-year period and adjust the formula for calculating the benefit amount. Eliminates certain “add-ons” to primary injuries that do not include these injuries when calculating the level of permanent disability, and eliminates the diminished future earnings capacity from the PD determination. Establishes a return-to-work program administered by the Department of Industrial Relations that will be funded by an annual appropriation of $120 million for the purpose of making supplemental payments to workers whose PD benefits are disproportionately low in comparison to their earnings loss. Makes numerous changes to the Medical Provider Networks, including required periodic audits by the Administrative Director, and establishing an expedited process to resolve any disputes about whether the injured workers are required to be treated within the MPN. Makes several modifications to the Supplemental Job Displacement Benefit rules. Makes a number of changes to the filing of liens, including a prohibition against filing of liens where awards were subject to the IMR and IBR dispute resolution processes; establishing a $150 filing fee; adopting time limits within which liens must be filed. Adopts a fee schedule for ambulatory surgery centers. n

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9/12/12 3:03 PM

Q&A

Q&A: Herb J. Wesson, Jr. Los Angeles City Council President Councilmember Herb J. Wesson, Jr. was elected to represent the 10th Council District of the City of Los Angeles in a Special Election in November 2005. He was elected to the State Assembly in 1998 and served as the 65th State Assembly Speaker. He termed out of the Legislature in 2004.

You have been Council President for eight months. What are some of your priorities during your tenure? Our city, like most cities, has been dealing with the impact of the recession that has hammered our local economy and reduced our revenues. We have responded by eliminating some nonessential functions and departments. We’ve also eliminated nearly 5,000 full-time funded positions, resulting in the smallest civilian workforce since the Tom Bradley Administration. Maintaining important services during this period will continue to be our challenge. Ultimately, all of us will need to weigh-in on what services are important.

What are some ways that grocers in particular, and the business community as a whole, can effectively engage in the L.A. city legislative process?

Councilmember Herb J. Wesson, Jr.

Communication and dialog are very important. Coalition building can also be helpful in getting a message out. Being open to compromise and having a willingness to work for the better half of the loaf can also advance an agenda. However, it all starts with effective communication.

C A LI F O RN IA G RO CE R

What do you see as the most challenging and rewarding aspects of serving in the City of Los Angeles?

I find that being able to get things done without the kind of partisan warfare that impacts Washington and Sacramento is a big plus. Most of the issues we deal with are not ideological, so it’s easier to reach agreements. I also relish the challenge of serving during difficult times.

You have had such a renowned career as former Speaker in the Assembly, and now Council President of the largest city in California. What accomplishments are you most proud of, both locally and statewide? Locally, it’s been a rewarding experience to have chaired the Exposition Light Rail Construction Authority during most of Phase 1 of the project. Phase 1, from downtown to Culver City, is now up and running. Phase 2 will take the line to Santa Monica. I’m convinced that the Expo Line is going to make a big difference in improving the quality of our local transportation system. I was the Speaker of the State Assembly when Governor Gray Davis was recalled. Unlike most people in the Capitol, I had a relationship with the newly-elected Governor Schwarzenegger prior to his election. So, I was cast in the role of facilitator and negotiator, working to provide leadership in forging compromises that could bridge a very bitter partisan divide. That experience has been an advantage in my role as Council President. Bringing people together is an important part of my job.

What is one of your favorite things to do in the City of Los Angeles? Without a doubt, my favorite thing is spending time spoiling my three grandchildren. Being a parent was okay, but being a grandparent has been fantastic! n

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washington report

The Politics of Proposition 37 September marks the unofficial end of summer and the home stretch in political campaigns.

We know the importance of this presidential election and the many congressional and local elections in California, but we may not have focused as much on a California proposition that will also have a tremendous impact on your businesses and customers. This ballot initiative, Proposition 37, would require and enforce yet another labeling law, but this one has no nutritional or country of origin basis. This labeling requirement is in effect labeling

the science behind the seed without food safety justifications, or as Stanford University found in a study released this week, without nutritional impact.

C A LI F O RN IA G RO CE R

As part of your political discussions with friends, associates and opinion leaders, make sure to urge folks to avoid getting caught up in the confusing rhetoric, and urge others to simply “Vote No on Proposition 37.” Those of you in California are all too familiar with the impact some of your state’s past political ideas have on surrounding states, but the politics of Proposition 37 are even more concerning.

Jennifer Hatcher Senior Vice President, Government and Public Affairs, Food Marketing Institute

Propositon 37 is unnecessary because we rely heavily on a nationwide labeling system that is overseen by FDA and USDA depending on the product. The nationwide system is consistent, known to consumers and is based on sciencebased on sound scientific research. Passage of Prop. 37 in California would unravel that system and add an additional layer of costs that consumers simply cannot afford in this economy. While our opponents in this debate are using emotional appeals with marketing efforts featuring icons such as cute little girls, we have the facts, science and lower costs on our side; we just need to effectively tell our story and inform consumers and voters. Thankfully, we have a growing group of resources to communicate with associates, executives and customers that the presidential election is not the only influential item on the November ballot or the October mail-in ballot. If there is a communication piece that you need to help you effectively communicate the arguments against Proposition 37, please contact FMI and let us know. FMI will provide Proposition 37 materials and additional GMO/GE related information on our website (fmi.org). Additionally, a group of grocers, farmers, food producers and other food industry businesses formed the “No on 37” coalition to oppose Proposition 37 (www.NoProp37.com/). n

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C A LI F O RN IA G RO CE R

By Len Lewis

Innovation is not creativity. Creativity is thinking up

“

new things. Innovation is doing them,” said Terry Jones, founder and former CEO of Travelocity.com and now chairman of kayak.com.

Jones, who is slated to speak at the CGA Strategic Conference on building an innovative organization, told California Grocer, “It’s great to have a process in your company to generate ideas. But innovation is about putting ideas to work by building the right team and culture and implementing a strategy that turns ideas into new services and products.”

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Continued on p.40

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b uilding an innovative organi z ation

| Terry Jones

Continued from “Innovation”

At times, innovation can be driven by technology or by new products and services that are put in place to satisfy an unmet consumer need. Sometimes, consumers themselves generate it. “They can give you a lot of good ideas,” Jones says, “but will they take you to the next level? Innovation is about looking beyond what is immediately apparent.” He conceded that there is a tendency on the part of some companies to focus more on technology than on customers. “For instance, social media is the shiny new thing and is sometimes responsible for that,” he noted. “Of course, we should do social media. But why and how it will help you is the question to ask. Sometimes new technology is simply too new for a particular customer set. Or it may not apply to your business.”

C A LI F O RN IA G RO CE R

“The best ideas may come from the bottom up. However, culture is created at the top. It has to be driven by leaders that can say it’s all right to experiment and fail.”

the farm on everything. But failure is okay if it turns into a good learning experience and helps you move forward.” The problem, according to Jones, is that people think that if they fail they’ll be fired. If that’s the case, no one will ever try anything. Companies need to develop a culture that can kill the project but not the person. Innovation comes from trying, learning and trying again. Over the past several years, there’s no doubt that e-commerce has been one of the most important innovations to hit retailing. “It’s changed customer facing businesses dramatically,” Jones said. “Even if you’re not selling things online, people are doing their research and discovering so much more about products. “This changes what they buy in the store and whether they will go to another store if you don’t have what they want,” he adds. The online world has changed many companies from just competing on the brand level to competing on the SKU level.

It’s always harder for a large organization to embrace innovation with the alacrity of a small startup, Jones says.

“Everyone has bread, meat and produce,” Jones says. “But what if I’m looking for something else? That’s why a tremendous amount of people go to search engines to decide whether they will go to the store or Amazon which, along with other sites, has irrevocably changed consumer behavior.“

“But in the grocery business you are assaulted by innovation all the time because thousands of new products are introduced every year,” he adds. Yet innovation won’t happen if your leaders don’t embrace a need for it,” he said.

Customers are increasingly multi-channel animals, according to Jones. Simply look at the number of people with smartphones out in the store – either receiving directions from home, pulling up coupons or looking for a better deal.

“The best ideas may come from the bottom up. However, culture is created at the top. It has to be driven by leaders that can say it’s all right to experiment and fail.”

“The combination of mobile technology with online information is empowering consumers in a new way,” he says. “I’ve asked the manager in my grocery store about it and he estimates that at least 30 to 40 percent of people are using smartphones as they walk through the store.”

In essence, retailers are experimenting all the time – whether it’s with new products, placement of shelves or new pricing. “It’s a Darwinian experiment and you have to do the same thing with customer facing systems, store design and how you train your people to communicate with customers,” Jones says. “You’re going to have a lot of failures and I wouldn’t bet

While travel sites like Kayak and Travelocity are not dealing in the delivery of physical goods, they share a common bond with retailers in that both are facing increased availability of product information. It’s changing consumers’ online behavior.

b uilding an innovative organi z ation

| Terry Jones

Top Industry Speaker Terry Jones, Founder & Former CEO of Travelocity.com, Chairman of Kayak.com

201 2 c ga st r ateg ic c onferen ce

Terry Jones founded Travelocity.com and served as President and CEO from its founding until May 2002. Previously, he served as Chief Information Officer at Sabre Inc. Jones is managing principal of Essential Ideas, a consultancy he co-founded to help companies transition to the digital economy. He is Chairman of the Board of Kayak.com.

Kayak.com executive Terry Jones will keynote the General Session of the 2012 CGA Strategic Conference on October 1 in Palm Springs. “Building relationships with consumers may be old hat to grocers who have built relationships by providing great service and the right mix of products,” Jones said. “But it is essential to reach out to customers in email and through social media or by enabling them to find out more about products through QR codes on the product. This too is part of relationship building today.” According to the Kayak executive, customers don’t really care about channels. They care about solutions. As such, they look at the information they get in the store, on the web and through mobile device as one and the same. “Unfortunately, some companies are organized around channels,” he finds. “They operate in silos or divisions. But you really have to look at your customer and say, ‘I don’t care which door they come in, their experience has to be the same.’ You just want them to bring their wallets.” Nonetheless, social media has been very important in engaging customers, building trust and ultimately a relationship with them.

However, Jones urges retailers not to spend too much time obsessing about social media.

And, if no one is saying anything you may decide you want to get a conversation going. But know what questions customers are asking, then decide what to do about it. Retailers also have to decide which of their customers will be the focus of their digital efforts. “At Travelocity, we had 40 million names in our customer database,” he says. “We bought demographic data on those people and if we were soliciting for tours, we would send very different emails to a group like single professional working women than to retired couples. “They would buy different tours. But it also gave us a chance to present the same tour differently. Many stores do that with loyalty card data,” he added. But in the end, it’s still about building a company culture that is okay with experimentation and failure. “People may not come forward, but there are great ideas trapped within your company,” he concludes. “It’s the lowest paid people who are interfacing with customers every day and know what they’re saying about your store. Make sure that information flow is not stopped by middle management afraid of change.” n

“Of course, if you’re the convenience store across the street from the college, you need to have a very

different attitude toward social media than the store out by the state park,” Jones says. “But retailers, especially smaller retailers, don’t have time and I’m not sure about the rewards. Start by listening to what people are saying about you. You certainly want to know how you are being reviewed whether it’s on Yelp, Yahoo or Google.“

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“When people tell me they have 7,000 Facebook friends for their business, the question I have is what they do with them?” Jones asks. “The answer is to treat them like friends. Tell them about new things and make them offers. If you do, they are going to tell their friends who will then become friends of your brand.”

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C A LI F O RN IA G RO CE R

By Len Lewis

Healthy Foods Good for Retail “People can pick up a megabag of chips anywhere these days. But if they know they can come to your store and get solutions that are really healthful, it’s going to get their loyalty and make healthy foods profitable for retailers,” said author and celebrity chef Ellie Krieger. Continued on p.46

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health y eating

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Continued from “Healthy Foods Good for Retail”

Krieger, a registered dietician and a regular guest on national television, has also been at the forefront of First Lady Michelle Obama’s “Let’s Move” campaign to combat childhood obesity and is a lifelong advocate of healthy, simple eating for everyone. But Krieger, who spoke with California Grocer on the eve of her presentation at the CGA Strategic Conference, also knows how difficult it is to change people’s behavior. “People buy things first because they taste good – things they will enjoy from a sensory perspective,” she says. “So whether we’re creating a recipe or selling a product that has a healthier profile, we have to bring taste in first. “And if people know they can make something for their kids that tastes good, is healthy and easy to make, it becomes self-perpetuating,” she says. “And by displacement, they won’t go for the chips and cookies.” Janet Myers, senior director, retail culinary experience for Kraft Foods, Inc., who is moderating a share group entitled “Helping with Consumers’ Desire for Simple and Healthy Eating, agrees that taste is the essential. “The key is how to move people along a continuum of small steps toward eating better,” she says. “Taste and ingredients are the gatekeepers of these small changes, whatever products or recipes are presented have to taste great.”

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However, Krieger noted that if you really want healthy foods to fit into consumer lifestyles, it’s best not to beat people over the head with it.

“My first cookbook was called “The Food you Crave: Luscious Recipes for a Healthy Life,” she says. “There’s a very specific reason why my recipes don’t have the word ‘healthy’ blaring in the title. Research shows a definite bias toward it. If you tell people ahead of time that something is healthy, they like it less than if you didn’t say anything about it. But, Krieger says, everyone wants to be healthy. “Ask anyone on the street and they’ll say yes,” she notes. “Then ask them if they want delicious food and they will also say yes. I’ve tried to find where these two circles converge. That means being careful in how

we market healthy foods and by bringing taste into the mix first.” This again is part of Myers’ belief that taking small steps in trying to change consumer behavior is best. “Of course, many consumers aspire to eat better,” Myers says. “But the key is being practical and giving them real life tips on how to do it. The most successful way is to give people easy ideas and make small changes to their current behavior.” Myers doesn’t believe consumers are looking to dramatically overhaul their eating habits. “It sometimes depends on what’s right for each person,” she says. “If you’re trying to get a family to eat more vegetables, why not stir some broccoli in with the macaroni and cheese or, if they’re having a dip, add a new vegetable they haven’t tried before.” Asked what she hears most from her readers and viewers, Krieger replied: “I think people are very confused. They want their lives simplified. They want simple solutions to the complexity of the information when choosing products in stores. “Basically, people are overwhelmed in their lives and by the prospect of putting together a meal,” she says. “Anything we can do to help reduce their sense of confusion will serve them and will bring them back to us for more.” Helping people cut through the clutter and confusion should also be an ongoing process. “If you’re talking about presenting options for dinner, you need to have simple solutions at arms reach and at eye level,” Krieger says. “And offer simple recipes and have tastings in the store whenever you can.” This also means focusing more on solutions than products. “People can buy food anywhere these days – even Target and Walgreens,” she says. “We have to focus on solutions that help them and make buying food more of a pleasant experience. The question is how to make it more pleasant for shoppers.” Research also indicates that these yellow, green and red light health code systems seems to help people make good, healthy decisions, according to Krieger. “It’s a good starting point and very helpful in getting people to reach for the right things,” she says. “But I Continued on p.48

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health y eating

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Continued from “Healthy Foods Good for Retail”

still encourage everyone to turn that box over and look at the ingredient list. Just because something gets a green light doesn’t necessarily mean it’s good for you.” Nor surprisingly, Krieger is also a big proponent of having dieticians in stores. “It’s another way to help people sift through all the products and teach them how to shop for healthier foods,” she says. “The payback seems to be tremendous. Stores that have dieticians feel it’s invaluable. “Let’s say the dietician gives a tour to 20 people and those 20 now know how to shop and what to look for in that particular store. Those 20 people are going to come back to that store over and over again. You’re getting their loyalty,” she said. This also promotes the sense that the grocer is part of the community at large not just another retailer.

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“People want that human connection with food and there’s an experiential aspect to it,” Krieger says. “In my neighborhood, my Whole Foods supports a lot of the initiatives in my child’s school, including produce. That means a lot to me as a member of the community. So there’s a broader role the supermarket can play.”

Healthy eating is not a fad, she says. The connection between what we eat and the fullness with which they live their lives will always be there. “People really understand the link between how well we feel and what we eat,” Krieger says. “Then if you can hit the sweet spot – delicious taste – there’s no downside. The problem is when you do something without regard for taste.”

Asked for her opinion on prepared foods versus home cooking, Krieger said: “I think people realize it (prepared food) is a missing link. Clearly, people are very busy and we’ve gotten too far away from cooking. But there are a lot of great options out there. It’s not an either/or situation. We can buy a rotisserie chicken and make a couple of meals from it.” However, people still need to know how to cook. “People are sadly lacking in basic skills,” she said. “There is a new awareness and in some ways, television shows are helping. It’s inspiring people to get back in the kitchen.” Her fear is that too many shows are “too hyper.” “They are contests where chefs have to make a veal bone reduction,” she notes. “You don’t have to do that to cook a good meal for your family.” The lack of cooking skills among some consumers is another reason for retailers to consider in-store dieticians or cooking classes, according to Krieger. “This gives you the chance to teach basic cooking techniques,” she says. “It also gives people ideas like using grilled vegetables to put on a homemade pizza or maybe some precut vegetables for a quick stirfry. It doesn’t have to be all or nothing. There are so many kinds of fresh solutions and easy shortcuts. People shouldn’t be ashamed to use prepared foods.” As to the lack of cooking skills being more prevalent among younger people, she mused: “I think we should bring back home economics to schools. That’s where many people learned basic skills. It had already been phased out by the time I was in school. But with the national childhood obesity crisis it needs to come back.” Continued on p.50

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health y eating

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Continued from “Healthy Foods Good for Retail”

much they have learned about cooking. Each comes to the grocery store with a different approach to cooking and a different understanding of meal solutions.

Krieger says there’s considerable research indicating that if children are involved in preparing and choosing foods then they are more likely to try and enjoy them. “Besides having your own garden, it’s the single best way to get kids to eat vegetables,” she says. Meanwhile, the best way for retailers and manufacturers to get involved may be partnering with schools and some government agencies. “I think the possibilities are rich in that area,” she says. “It can lead to a more holistic change in your community. I started the wellness committee at my child’s public school in New York. We were on a mission to receive the Healthier Schools Challenge award. We were the first and only New York City school to get it and our local stores helped make that happen.” One reason is the trend toward more fresh products at retail. “The perimeter of the market has grown tremendously, but it can be built up further,” she says. “People are seeking out fresh and seasonal produce more than ever. They want that human connection with food. The more we can highlight that with sampling and recipes, the more it will appeal to them and get them to come back to your store.” As to developing new programs, Krieger firmly believes in grassroots efforts – as close as possible to the community.

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“The grocer is a social service in a community, not just a retailer,” she notes. “Look at areas called food deserts. There are over 23 million people living more than a mile from a grocery store. Having a grocery store in the community can change people’s lives tremendously. The first step in healthy eating is accessibility and this gives it to them.”

At Kraft, a considerable amount of research has been done on understanding consumer behavior and attitude toward cooking, said Myers. A recent cooking behavior study by the company underscored several key points that were also mentioned by Krieger. n

The definition of cooking, including cooking from

scratch, has changed. It means different things to different people across consumer groups.

The need to address changing family dynamics and

the recognition that one size does not fit all.

Generational approaches vary depending on how

People’s lives influence how they make decisions

in the store. They may be interested in food but their lives are so busy it causes them to behave in a completely different way.

All these points lead to the need to simplify both the shopping and cooking process. “Both manufacturers and retailers are certainly taking steps to simplify,” says Myers. Manufacturers and retailers have to come together in a collaborative way to connect the dots at the grocery level in a way that’s meaningful and accelerates consumer understanding of how to make things better for her and her family.” Fortunately, collaborative efforts are developing. “It’s not going to be the same between all manufacturers and retailers,” Myers says. “The opportunity is for us to decide what’s important and put the different marketing elements together in a way that excites and motivates consumers to buy a product or meal solution and come back for more.” She emphasized that meal solution programs have to remain consistent at retail. “There is a certain level of expectation on the part of the shopper. They want to know if they like something it will be there consistently and everything won’t be different next week. It’s about reliability.” However, does this mean changes in store merchandising? “That’s a creative process and there are lots of answers to that,” according to Myers. “This is an opportunity for collaboration between manufacturers and retailers on what the grocery environment will look like. It’s incumbent on us to get together and brainstorm new ideas because consumers want an easier and better experience.” Myers noted that this could mean development of meal solutions centers or better use of endcaps. “The key is what they are going to look like, what they will communicate to customers and whether they are simple and relevant,” she said, adding that whatever’s done has to be a permanent fixture of the store experience. “There’s going to be a period of experimentation. But it’s a journey we need to embark on.” n

Millennials: Who Are They & How They Shop Millennials are going to redefine retailing. They are not fans of tradeoffs and are accustomed to having their cake and eating it too. So says Han Delin, founder of 9dotz.com, a San Francisco-based firm specializing in generational advertising and marketing, and a workshop presenter at the 2012 CGA Strategic Conference. According to Delin, millennials have been referred to by a number of names, including Generation Y and Echo-Boomers. But basically, this is a group that was born between 1980 and 2000. Industry sources, including Delin, are quick to emphasize that millennials are more unique than previous generations and may have an even greater impact on the supermarket and CPG industries than their predecessors.

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Continued on p.54

By Len Lewis

C AL I F O RN IA GR O CE R

M illennials

| Han Delin

Continued from “Millennials: Who Are They & How They Shop”

This is a group for whom price is important but fun is essential in assessing retailers. As such, supermarkets should establish relationships and build loyalty with this group as early as possible, establish a real value proposition with them, closely monitor trends anticipate quick changes in demand and the overwhelming need for digital communications.

This alone distinguishes millennials from other demographic groups. And as a result of this connectivity with others, they tend to seek out similarities more than differences between themselves and other people. “For example, when previous generations came across someone from another country, the first thing they usually noticed was what made them different,” he says. “Millennials look for similarities. Culture has become so global that commonalities are not hard to find,” he said. These similarities can be as simple as seeing someone else wearing a pair of Nikes. One of the major defining characteristics of millennials is that they represent the first truly digital generation, most of whom have never known life without a computer. “It does depend on whether you’re talking about younger or older millennials,” Delin says. “The younger ones can’t imagine life without a cell phone in their pocket and access to Internet on that device. It has shaped the way they think and the way they interact. This is a mobile and social media generation and the Internet is like oxygen to them.” As to their dislike of tradeoffs, Delin noted: “As a group, they are quite uncompromising. Some people describe them as ‘entitled.’ I say it comes from a series of life experiences which have made them expect things to generally go their way.”

The whole concept of generational theory is very interesting, Delin says. It assumes that people born in a certain time and place have shared experiences that would give them similar attitudes and behaviors.

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“But with millennials, time and place become less significant,” Delin observes. “They are not isolated. Because of the access they have to social media and the Internet, they can have any information they want anywhere at any time.”

This is also a generation that connects with each other on a global level. “They have transcended traditional boundaries more than other groups,” he says. “As such, they don’t necessarily feel the generation gap the way that previous ones did. Therefore, they don’t have the same distain for anyone who’s an adult.”

According to Delin, millennials grew up during a period that has been labeled a “holiday from history.” Aside from a brief interlude due to 9/11, life was good. “Technology was in their favor,” he says. “So getting their way is a significant defining characteristic. Some people have branded this as pure optimism.” However, this is also a generation of realists, according to Delin. Hit by the global economic crisis in 2008, millennials have been forced into a type of pragmatism and have practiced conspicuous reduction. “Additionally, they think it’s cool to be practical and not to spend a lot of money,” he says. “They are dealing with conflicting tendencies. On one hand, there are things they want. But they also understand they have to make some serious choices.” Continued on p.58

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Overtaking Baby Boomers Millennials may not be taking over the world, but they will have a profound effect on it over the next decade as this generation matures and baby boomers continue to age. This will have a profound impact on the retail environment which is likely to become even more chaotic requiring manufacturers and retailers to become even more nimble and to focus even more intensely on the rapid growth of new concepts and products, according to a new report entitled “Trouble in Aisle 5” by Scott Mushkin, equity analyst with Jeffries Alix Partners. Millennials, which recently surpassed baby boomers as a percent of the U.S. population, will surpass 90 million by 2020, much of it driven by immigration, according to Mushkin. Among the highlights of the report: n

Millennials are likely to be more educated than baby boomers and this correlates with higher earnings. They are much less brand loyal and willing to engage in different distribution models to meet their needs. This generation appears to want what they want, when/where they want it…consumption will be on their terms. Millennials appear much more focused on lowest price rather than brand loyalty, but at the same time are much more willing to pay for specific attributes. Brands do matter more for top earning millennials… these just might not be their parents’ brands. Traditional supermarkets are losing the high-income millennial as they shop specialty stores for fresh products and mass merchants for everyday essentials.

Continued from “Millennials: Who Are They & How They Shop”

“Nike enables people to fit in but express their individuality at the same time,” he notes. “We can all wear Nike shoes but no two of us have to wear the same ones. Target is another interesting example of conspicuous reduction. Big name designers that are putting their goods on Target’s shelves.

Delin says millennials are not willing to pay crazy prices for something just because it’s from Neiman Marcus. In fact, he says, this generation thinks it’s cool to get something at Target that has the Neiman Marcus name on it. But how will Millennials view the grocery store? “Grocery is in an interesting place because there are companies with very distinct brand identities,” says Delin. He points to stores like Sam’s Club, Costco and Whole Foods. They have defined roles in consumers’ minds. “But if consumers shop intelligently, there are times that prices at supermarkets are virtually identical to those at club stores,” Delin says. “However, supermarkets have to make a choice,” he says. “They can be a house of brands where people can have their cake and eat it too – a perfect blend of quality and value that would make them a destination for millennials.” The other option for supermarkets is to take the middle ground. “The old adage says you don’t want to get stuck in the middle,” Delin says. “But there’s an opportunity with this generation to turn that around and make the middle a highly successful place. This requires very deliberate marketing, according to Delin, in order to communicate the benefits of price and selection. “Millennials have to know that places like 7-Eleven may be closer but they’ll pay higher prices and won’t have the selection,” he says. “They have to be aware that Whole Foods might have more organic and natural products, but they would have to travel further to get them. So there are tradeoffs that this group of consumers can make to get better value and convenience.” Overall, Delin believes millennials will look for onestop shopping and retailers who give them whatever they want in terms of value and selection.

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A number of brands are meeting their expectations on several levels, including Nike, observes Delin.

“Some items under the Neiman Marcus brand will now be available at Target,” Delin points out. “This challenges the whole notion of luxury and price points and plays to the ‘no compromise’ attitude among millennials.”

Continued on p.60

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M illennials

| Han Delin

Continued from “Millennials: Who Are They & How They Shop”

“They want brands that actually stand for something,” he said, citing a chain like HEB in Texas. “They have a family owned halo and local credentials that make them appealing. It gives them the values this generation admires.”

Whether millennials will focus on stores that promote issues like sustainability is still open to debate, according to Delin. Asked whether millennials are less or more likely to be multi-channel shoppers, he says, “I think that they are likely to look for something that fits their lifestyle rather than change for change sake. The problem is that grocery has been defining itself in relation to other channels. Grocers need to put a stake in the ground, and tell people who they are, what they believe in and demonstrate it in their stores.” Whether millennials will focus on stores that promote issues like sustainability is still open to debate, according to Delin. It all depends on the message. “This is not cause marketing the way it’s been done in the past,” he points out. “It can’t be an add-on. It has to be something organic to the brand. Look at Tom’s shoes. Its social contract is in its DNA. If you buy one pair, they give one pair to a child who has no shoes.”

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He also mentions a San Francisco Bay Area company called Revolution Foods. They are in schools serving lunches to kids who get free and reduced cost meals and now they’re moving into retail.

“People don’t just purchase that brand, they participate with it,” he said. “You have to develop a personal relationship with the community – a personal social contract. Increasingly, the whole way we shop and interact with brands is social and once again we are looking for that human element in our shopping.” As to online shopping for millennials, “It basically sets the bar for everything else and it’s the reason people want that human element. Purely transactional relationships have moved online.

“It’s for people who just want stuff and don’t need any communication or high touch interaction,” he says. “Amazon and iTunes defined what a transaction looks like to this generation. But a good social contract means interaction versus a transaction. That means having something besides price.” Turning again to his basic premise, Delin reiterated that millennials will have the power to redefine the retail landscape. “They want it to be more participatory, more engaging than traditional retail experience,” he said. This could have a dramatic impact on the way stores are set up. The manufacturer to retailer to consumer view of the supply chain has to be broken down. “It used to be a matter of how to reach consumers,” he says. “Now it’s about why they should reach for you because the balance of power has shifted. It’s more about pull and less about push.” In-store changes may also be in the offing. “Now things are organized around manufacturers and categories,” Delin says. “Going to the store for tonight’s dinner can lead to an intricate shopping pattern.” “But the consumer is going to go into the store with a certain mindset. They want to know what to serve the kids for dinner or what’s healthy for lunch. They are going to the store to shop through that ‘need’ state – not to shop by manufacturer. The in-store experience will revolve more around consumer need and less around brand blocking,” he said. Delin believes this could be very exciting if retailers experiment with meal kits that are not organized by brand or category, but by how people prepare foods. “I would encourage chains to get ahead of that and start experimenting with merchandising, including endcaps,” Delin concludes “Everything happens in an evolutionary way and there’s no reason this has to be any different. Take it slow. When things work, expand them. If they don’t—try something else.” n

Bimbo Bakeries USA thanks Jonathan Mayes, outgoing CGA Chairman of the Board, and welcomes Kevin Davis, the incoming Chairman of the Board.

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Connecting With Shoppers In a New Economic Age It’s not so much about how the economy is affecting consumer spending as it is how it affects the ways consumers get ready to spend. So says Larry Levin, executive general manager, consumer insights for SymphonyIRI, and a presenter at this year’s CGA Strategic Conference. According to Levin, a certain segment of consumers are more involved in preparing to shop than ever before. “We found that about 14 percent of the general population falls into what we call ‘savvy shoppers’,” he says. “Ironically, they are among the wealthiest with the highest median income of any segment we’ve created – about $72,000. But they spend about 45 minutes to one hour per week getting ready to shop and are heavily focused on finding the best deals possible.” Levin says these consumers are looking at Sunday supplements and circulars, are going online to download any type of manufacturer or retailer coupon and are “liking” things on Facebook to get the most deals available. C AL I F O RN IA GR O CE R

Continued on p.68

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| Larry Levin

Continued from “Connecting With Shoppers In a New Economic Age”

Asked what savvy consumer do “like” these days, Levin said that in general they like national brands more than store brands. “They come to the store with pretty detailed lists and they are more likely than any other segment to put brands on that list,” he says. “But manufacturers still need to win their hearts and minds, or they might find themselves losing a big opportunity.” Levin conceded this is an extension of shopping behavior the industry has seen in the past. “But all consumers are simply getting smarter then they were before and that segment is growing in size,“ he adds, noting that this trend is more about a mindset than demographics. “They are smart because they get more value for their dollar on a defined budget,” Levin said. “They have the attitude that just because they make a lot of money doesn’t mean they don’t shop smarter.”

Additionally, this group is very community-oriented and are more likely to shop at local grocery stores and are less likely to spend money for groceries at places like Target and Walmart or other channels of trade. But, according to Levin, they are still very much price shoppers and once they’re in a store will pick up the latest circular to make sure they are up to date on deals. These same customers are also heavily digital. “I can envision them walking down the aisles and scanning products to see if it’s cheaper of within a mile of where they are shopping,” he notes. “That’s how focused they are on getting the best deal.” Although this segment of savvy shoppers prepares a list before shopping and tends to stick with it, it doesn’t mean they’re not open to discretionary purchases. “When they walk in your store you have one final opportunity to change their behavior,” he says. “So if you’ve got a national brand that will offer a better price or value, the consumer may cross over the line at the last second for the best deal on that national brand.”

California Shoppers: A Tale of Two Peoples Who are California shoppers these days? How do they think and what do they buy?

C A LI F O RN IA G RO CE R

These are always difficult questions to answer, but even more so due to the impact of the recession and consumer attitudes on the pace of the economic recovery.

“We’ve been in pretty bad shape here since our unemployment rate tends to be a couple of points higher than the national average,” says Larry Levin, executive general manager, consumer insights, SymphonyIRI. “We are faced with higher than average gas prices, plummeting housing values and high unemployment. As a result people are more cautious.”

However, the good news for retailers and manufacturers comes from the research firm’s attitudinal data, which shows that Californians are still pioneers when it comes to new products and are more likely than others to “give something a shot.” “There is still the perception of thought leadership coming out of California,” says Levin. “That’s why so many manufacturers and retailers introduce things here then move to the rest of the country.” Research shows that 22 percent of Californians are more likely to be early adopters of new products compared with 15 percent of the general U.S. population.

“Californians seem to place less credence on prior use and, by nature, are willing to be the first to try new products,” he says. “Basically, they are saying that you don’t have to prove something to win in California. We’re willing to jump off the diving board more quickly, whereas the rest of the country is likely to take a wait-and-see attitude toward new products.” On the other hand, this may also indicate less loyalty for longtime brands. “About two-thirds of Californians in our research say previous use of trusted brands is important to them,” he notes. “This compares with about threequarters of the U.S. population.”

N e w E conomic A ge

However, in assessing attitudes and shopper behavior, supermarkets must look at all segments including a group called “the downtrodden.” This group makes up 18 percent of the population and, as the name implies, are having difficulty with the current economy, according to Levin.

ability to spend the way they used to – including food shopping.”

“They consciously avoid certain aisles in the store because they are afraid they’re going to buy things they don’t need,” Levin says.

The downtrodden are heavily motivated to buy every day low price whether it’s national brands or private label.

The SymphonyIRI executive claims it’s important that every retailer understands demographics and the mindset of the people walking into the store in order to do a better job of positioning products. The downtrodden are heavily motivated to buy every day low price whether it’s national brands or private label. “This is not an extreme low-income group,” says Levin, emphasizing that 15 percent of the “downtrodden” have incomes over $100,000. ‘They are cautious and worried,” he says. “In the past, they may have had two people working, or one person with a bigger salary that lost their job. These are people who have lost equity and have seen their total net worth decline significantly. They may have kids going to college, the value of their house is down and jobs are being lost. Everything affects peoples’

Looking at the economic segmentation of shoppers, Levin noted that due to the economic situation – specifically unemployment numbers – about 20 percent of California consumers would be classified as downtrodden, versus 18 percent of all U.S. households.

“So we have a tale of two peoples,” he says. “There are those who are really drowning in today’s economy, who saw housing prices plummet and

Another important group are the “startups” or millennials, those in the 18 to 34 age group.

“They are completely digital, love whatever app they can find and are more likely than the general population to buy online,” Levin claims. “They also spend a disproportionate amount of dollars in drug stores, about 7.5% compared with 5% for the total U.S. population. “For them, the drug store is the new convenience store,” he says. “They go to the store to pick up a prescription and while there pick up a can of coffee, box of cereal or a frozen entree to pop in the microwave. It makes one-stop shopping easier for them. Plus, the drug store formats are nicer, easier to shop and safer environments than convenience stores.”

can’t find jobs. On the other end of the spectrum, a sizeable percentage of Californians are still doing well even though the economy has been something of a pitfall for friends and neighbors.” He notes that even more affluent people are being “savvy” shoppers and are spending more time trying to stretch their dollars as far as they can. In a breakdown of shopping frequency, IRI found that the so-called “downtrodden” in California made 173 trips annually vs. 172 trips for the U.S. at large. The “startups,” who tend to be under the age of 34 and include the “millennials,” made 167 grocery trips annually vs. 171 for the entire country.

Continued on p.70

The “carefree” shoppers in California make 193 grocery trips annually, compared with 168 annually for the entire country. “We found that 61 percent of their trips were quick trips,” Levin said. “So the message is that you better be top-of-mind as a retailer to capture that quick trip because their spontaneity and the fact that they are less price sensitive and less inclined to buy private label,” he said.

“They will gravitate to whatever store they pass by when they need something. And if you dissect those trips you might find many of them are to stores like CVS. They don’t care if they have to pay a $1 more for a container of milk.”

C AL I F O RN IA GR O CE R

However, California has fewer consumers classified as cautious and worried than the rest of the country – 22 percent vs. 25 percent. On the other hand, 13 percent of Californians are classified as “carefree” compared with only 11 percent of the total U.S.

| Larry Levin

Top Industry Speaker 201 2 c ga st r ate g ic c onferen ce

Larry Levin, Executive general manager, consumer insights for SymphonyIRI Larry Levin is executive vice president of Consumer Insights for SymphonyIRI Group. Levin has spent his entire career in market research, leading engagements for many of the world’s largest manufacturers and retailers, including Pepsi, Lexus, Starbucks, Microsoft, and Disney. From the latest consumer trends to new product introductions, Levin has extensive experience in analyzing a broad range of topics and is frequently quoted in such publications as the Chicago Tribune, Forbes and Marketing Daily.

Continued from “Connecting With Shoppers In a New Economic Age”

But millennials, being part of the Apple store generation, want their shopping experiences to be fun. “They like to play and tinker and we see from some reports that they are faster to adopt home treatments in categories like beauty care, whether it’s fun, easy-to-use nail polish or upscale salon products,” he says. “They have more of a do-ityourself mentality. A lot of them have been forced to move back home and are trying to stretch their dollars. They have to be more prudent about what they spend money on.”

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However, Levin pointed out that technology is not just for millennials. “Smartphone penetration is significant in people over the age of 45,” Levin notes. “So, I expect more stores to have wifi so they can send offers to people’s smart phones directly instead of depending on circulars.” It’s taking advantage of technology that people like to use and have accepted it as a customary practice. “It can help target them towards an aisle they may not have thought about walking into,” Levin says. “It’s no longer about mass. More individualized target marketing, in conjunction with a store’s frequent shopper database, is the wave of the future.” Many supermarkets are already taking advantage of this, but adoption can be slow. “There have been a lot of stories in the media about how a company like Dunhumby has helped Kroger send a price to one shopper who, historically, has bought a certain size product, while offering a different price to others,” he says.

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“In the old days people didn’t want that kind of ‘junk mail’,” Levin offers. “But a lot of them have come to really accept that kind of personal commitment. It’s not seen as intrusive junk mail. In fact, they are inviting the retailers to reach out to them.” Looking ahead, pricing will still be the key to success even the economy improves. “Buying smart is the new normal,” he says. “We continue to see 20 percent of the population spending on private label. That hasn’t changed and they have earned trusted brand status among many people. “That’s the reason for the success of Trader Joe’s, Target and Costco brands.,” said Levin. “Consumers in all economic spheres have shown how they have endorsed private label. I think there’s a continuing opportunity for retailers.” n

The Stater Bros. “Family” Salutes CGA 2011-2012 Outgoing Chairman

Jonathan Mayes Safeway Inc. And Welcomes CGA 2012-2013 Incoming Chairman

Kevin Davis Bristol Farms

Sustainability: The Next Generation Are sustainability and environmental issues taking a back seat as consumers focus on jobs and the economy? Absolutely not, says Arlin Wasserman, founder and partner in Changing Tastes, a consultancy focusing on environmental planning, policy and development. “Everything depends on which consumers you’re trying to reach. You have to set aside your own generational perspective,” he told California Grocer, in an interview on the eve of the CGA Strategic Conference where he will moderate a share group on Sustainability: The Next Generation. “For baby boomers who buy organic and natural products, it’s a luxury – something for which they may be willing to pay a 15 percent premium,” he says. “But those consumers are also cutting back on their purchases.” For Generation X or millennials, some of whom who are now double-income parents of young children, sustainable purchasing is part of their decision on which store or company gets their loyalty, Wasserman says. “They are not just going to pay a premium. They want products that reflect their values, are good for the planet and good for their health. It’s a single brand value proposition,” he says, noting that this is why companies like Chipotle, Starbucks, Panera Bread and Whole Foods are doing extremely well.

C A LI F O RN IA G RO CE R

Continued on p.74

By Len Lewis

C AL I F O RN IA GR O CE R

S ustaina b ilit y

| Arlin Wasserman

Continued from “Sustainability: The Next Generation”

“Younger consumers are willing to be brand loyal,” he says. “But they want to have coffee from a company that treats its workers and the forest fairly. This makes them want to do business with you. But they will decide whether to buy a $4.50 Caramel Macchiato, or a $1.89 brew and they may not go up the price scale.” The definition of sustainability also comes into play. “Baby boomers and younger generations look at it differently,” he claims. “Baby boomers look for products they know from a company or retailer they’ve had a relationship with for a long time.

They want to make a purchase that reflects their values.

“They believe that a price premium means something good is happening – either restoring a community somewhere in the world or supporting a local farmer. And they look for third party trusted logos like the Good Housekeeping Seal of Approval or AAA hotel ratings – which started out years ago as something special.”

The same is true of the 900 or so eco labels (on ethical food production) now floating around the marketplace for use by CPG companies. “In the consumer’s mind many of them are interchangeable,” said Wasserman. For the younger generation, the concepts of sustainability and healthy food go hand-in-hand.

C A LI F O RN IA G RO CE R

“It’s a single concept,” Wasserman says. “They want to make a purchase that reflects their values. Their values include foods that are good for them and their families – especially mothers with babies.

“They expect you to be doing things right all the time. If a company says it’s trying to be a good corporate citizen, but people find out they have an issue in their supply chain, millions of dollars are put at risk and is reflected in a company’s stock price. This then turns into higher costs, like the higher costs of borrowing,” said Wasserman, noting that this is something every company wants to avoid. There are a couple of strategies that retailers can consider.

“One thing is to design the shopping experience so it builds trust with consumers,” Wasserman recommends. “They are willing to pay a lot for you to simplify or edit things down to just a handful of great choices.” The overwhelming confusion about what to buy, coupled with performance anxiety of what to cook at home, are the reasons that “restaurant-style” food is the fastest growing category in grocery and why restaurants have taken an increasingly larger share of the consumer dollar, he says. “Consumers want you to make choices for them,” Wasserman believes. “So you can charge more and get their loyalty by not leaving it up to them to find sustainability in your aisles. Make sure the choices in your aisles are great ones for them.” Asked if this means cutting back on assortment, Wasserman replied, “I think a winning strategy in reaching younger consumers says fewer choices are better. That doesn’t play to older consumers. So you have to pick where you want to go.” Developing and partnering with educated consumers is the key. “Things like Tesco’s Traffic Light food labeling system is a great example of how to make people feel comfortable with food choices,” he explains. “We know people don’t evaluate every item they purchase every time they go in a store. If another retailer is providing a better partnership, the cost of regaining that customer will be a lot more. The mood among consumers is going from questioning what they should buy once they’re in the store, to whether the grocer is helping them make better choices.” Quite often, these choices are heavily influenced by outside groups like social networks. “People are looking for help in making a decision based on their values around health, the environment and the social impact of their choice,” he says. “If they are not getting it in retail, they will look elsewhere. They are no longer looking at CPG companies and their public relations agencies for that information.” In addition, Wasserman says, there aren’t any dominant sites. These apps are usually developed independently by non-profits, entrepreneurs or “crowdsources” that have a point of view.

S ustaina b ilit y

“This is a Silicon Valley venture capital play,” Wasserman notes. “I’ve heard that there are now more than 3,000 healthy supermarket item finder apps financed by the venture capital community. They may invest in 30 or 40 of them knowing that they only need one with enough users to attract a buyout from Google or Microsoft.” The question is whether these sites are offering consumers good advice or just a lot of noise. “They are getting highly uneven advice. That’s a risk and opportunity for retailers,” according to Wasserman. “Your customers are basically spinning the radio dial when it comes to these sites. They might hear Mozart or the Rolling Stones. “There is a wild west feeling out there and often a total lack of accountability. And you can’t tell the difference between all that advice. But they are getting between you and your customers about what to put on your shelves – unless you do a better job of engaging and guiding them.”

| and consumers

He conceded that this can be difficult for retailers. “They all have a clear point of view,” Wasserman says. “That’s hard for retailers because they never want to say that one thing on their shelf is better than something else. You need to have a point of view about why people should come to your store. That point of view lies in creating value.” But retailers should also be aware that everything – including sustainability – comes back to the food. “It’s about the product, not the packaging or energy efficiency in your store, recycling or waste reduction efforts. It’s about what they are about to eat and feed to their family,” Wasserman says. n Len Lewis is editorial director of Lewis Communications, Inc., a New York-based editorial planning, research and consulting firm. He is a contributor to several retail publications and trade groups in the U.S. and Europe and has been a speaker and moderator at numerous industry events. He can be reached at lenlewis@ optonline.net or via his website www.lenlewiscommunications.com

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Welcome

C hang ing of the

G uard The California Grocers Association membership and staff would like to congratulate Kevin Davis, Bristol Farms, on being nominated as the 2012-2013 CGA Chairman of the Board. Kevin succeeds Jonathan Mayes, Safeway Inc., whose term ends in December. On behalf of the entire Association we say â&#x20AC;&#x153;thank youâ&#x20AC;? Jonathan on a job well done. Your guidance and leadership this past year was greatly appreciated. The Association looks forward to working with Kevin Davis this coming year.

Kevin Davis

C AL I F O RN IA GR O CE R

Jonathan Mayes

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WELCOME incoming CGA Chairman Kevin Davis and Thank You outgoing CGA Chairman Jonathan Mayes.

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Thanks TO JONATHAN MAYES, AND A BIG Welcome TO KEVIN DAVIS.

A HUGE

PLEASE JOIN US IN CONGRATULATING OUTGOING CGA CHAIRMAN OF THE BOARD

C A LI F O RN IA G RO CE R

JONATHAN MAYES ON A JOB WELL DONE AND WELCOMING INCOMING CHAIR, KEVIN DAVIS.

NORTH STATE GROCERY, INC.

Thank you outgoing CGA Chairman, Jonathan Mayes of Safeway Inc!

Congratulations new CGA Chairman, Kevin Davis of Bristol Farms!

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RAISE OUR GLASSes to Outgoing Chairman

Jonathan Mayes AND INCOMING

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Kevin Davis

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Beverages Spotlight

SIP is Setting The Gold Standard California growers and vintners have captured the world’s attention with wines that raised the bar on excellence and innovation. Now, they are setting the environmental gold standard with SIP—Sustainability in Practice—a third-party certification program that puts eco-conscious California producers in the spotlight. Nearly two decades in the making and launched in 2008, the SIP seal of excellence appears on millions of bottles produced by nearly 160 vineyards across the state, reflecting the industry’s deep commitment to protecting employees, communities and the environment. The program was created by a network of farmers that are devoted to sustainable agriculture, with input from government agencies and environmental groups and experts. SIP’s independent auditors have now inspected vineyards representing nearly 30,000 acres of wine grapes from Santa Barbara to the Napa Valley.

“What sets us apart is that the SIP sustainability model addresses both human and natural resources,” said Kris Beal, executive director of the award winning Central Coast Vineyard Team, the nonprofit group that developed the program. “This represents a real commitment to environmental stewardship and equitable treatment of people who work in the industry.” In order to display the seal on products, growers must meet strict eligibility requirements related to soil, water and energy conservation as well as pest management and human resources. Today’s consumers demand more than ever before. Quality is a given but they also want to be sure that growers and vintners whose product they choose are preserving and protecting the natural environment now and for the future. Visit www.sipcertified.org for more details about this important program. n

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C AL I F O RN IA GR O CE R

Visit our website for a tasting map of certifed sustainably farmed vineyards and wines.

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know the law

Background Checks and Social Media Using the internet as a backgro u nd checking tool , and attempting to restrict what employ ees may say on social media sites may trigger retaliation and other claims against emplo yers .

Many users of social media websites such as Facebook and Twitter have come to learn that incautious use of these websites can cause personal embarrassment and even repercussions at work. However, social media can create pitfalls for the incautious employer as well. Some employers perform “background checks” on prospective employees by reviewing their social media pages. In response, many social media users place most of the content on their social media pages in private areas that may only be accessed by themselves or those to whom they have granted access (such as Facebook “friends”). In order to get around these protections some employers have required applicants to disclose their passwords or “friend” a human resources official so the employer can search these private areas.

C A LI F O RN IA G RO CE R

Scott Inciardi is an associate resident in Foley & Lardner LLP’s San Francisco office, practicing labor and employment law.

Although it is unclear how widespread these practices are, they have created something of an uproar and legislatures at both the state and federal level are stepping in to curb them. In May, Maryland became the first state to ban the practice and others, including California, are expected to pass similar legislation. There are also efforts underway in the U.S. Congress to ban employers from demanding social media passwords nationally. While it seems that it may soon be forbidden for employers to demand access to private social media accounts, there are also reasons why even searching publicly available information on the internet may be risky. An employer who consults a social media page or the results of an internet search may inadvertently discover information about protected characteristics such as the applicant’s race, national origin, age, religion, or marital status. This could open an employer to a charge that it based a hiring decision on protected characteristics that it discovered during its online search.

Labor Law Implications As an increasing number of people flock to social media sites, many employers have developed policies governing their employee’s conduct on such sites. Some of these employers have sought to restrict employee statements on social media sites that are critical of the employer and have disciplined employees who make such statements. There are risks, however, with attempting to regulate employee conduct on social media sites. To take one example, state and federal laws protect employees from retaliation for opposing discriminatory conduct by their employers – opposition which may very well occur online. Additionally, under California law, employers may not prevent employees from discussing their wages and may not discipline employees for lawful conduct away from work. One agency that has been particularly active of late in this area is the National Labor Relations Board, the federal agency that enforces the National Labor Relations Act. In 2010, the NLRB brought a complaint against an employer for disciplining an employee who posted complaints about her supervisor on a social media site, reasoning that the conduct was “protected concerted activity” protected by the NLRA. More recently, the NLRB issued a report on retaliation against employees for activities on social media. In the report, it concluded that policies prohibiting employees from posting “disparaging” or “defamatory” comments about the employer, prohibiting “inappropriate conversation” by employees or requiring that employees bring “work-related” concerns to the employer before posting them on social media violate the NLRA. The lesson here is employers must exercise caution when using the internet to learn about employees and applicants or when regulating what employees may do online. n

From your friends at

Wishing you a successful year Kevin Davis Incoming CGA Chairman

C AL I F O RN IA GR O CE R

For your dedication & guidance this past year Jonathan Mayes Outgoing CGA Chairman

Wealth Management |

J O H N K E L LY

Hope Is Not An Investment Strategy There has not been a more important time to be a member of the California Grocers Association. Whether your concern is for “plastic or paper,” shopping cart retrieval, pending legislation, profit margins or benefits, the ongoing work done by your Association is invaluable. We have made some important progress over the last legislative year. Going forward, there still remains issues to be addressed. The prevailing concerns over the balance of the year center upon:

1. The Governor’s Budget and concessions made on taxation and pension reform. The public sector is concerned about the future and rightly so. This has obvious impacts on the private sector. How shall we both align our efforts going forward to put our economy back on track? “Fair play….foul play…what have we here?” —Shakespeare

2. What impact will national and foreign economies have on local and international trade? “Strong dividend projections show strong management insights. This applies to domestic multinational and foreign companies.” —Jim Lovelace: American Funds

3. What will be the decision on tax extension and what will the rates be for every aspect of income and capitalization?

“I love to travel to Washington, D.C. and visit my money.” —Bob Hope

4. Who will come out ahead in local and national elections?

C A LI F O RN IA G RO CE R

“It makes your hair stand on end!” —Shakespeare

All these issues matter and your efforts to clarify and lobby for your positions are important. CGA plays a vital role in that effort. On a personal level, I have enjoyed Jeff Foxworthy’s perspective on retirement planning. In short,

he offers, “you might have a problem with your retirement plan if:”

1. Your retirement plan sponsor is on TV and it’s not for a commercial or interview.

2. You haven’t reviewed your retirement plan with your provider over the last year.

3. Your plan has no financial advisor: your financial advisor is missing in action.

4. Your plan participants aren’t getting any education or investment updates.

5. You haven’t reviewed your plans terms or fees; failing to follow through on the ‘small stuff’. As a plan sponsor or participant you will be impacted by new legislation which requires transparency and fiduciary responsibility. Many plans have already addressed this issue. This should have a positive effect on your plan participation and on your net returns. As with any transaction it is vital to have the necessary information for making a decision. “The only thing money gives you is the freedom to not worry about money!” —Johnny Carson Again, the biggest waste of time is “hoping” things will be different. You are better served by looking to the facts, planning and adjusting for the goals you have set. Hope is not an investment strategy. Do your homework now so your future can be positive. Work closely with your friends at CGA. They have a history of getting things done the right way. n John B. Kelly, MPA, CFP is ‘The Investor’s Caddie’ and a registered investment advisor engaged with families, businesses and associations to manage their reserves using Values Based Financial Planning: Creating Inspiring Financial Strategies. Receive his complimentary publication by contacting him at investorscaddie@gmail.com or 916-296-9019.

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that Works!

C AL I F O RN IA GR O CE R

California’s Beer Distributors Delivering Choice and Value to California’s Grocers in a Regulated System

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ADVE RTIS E R INDE X C A LI F O RN IA G RO CE R

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Page

Company

Phone

Fax

Website

AlEn USA

209-740-7071

360-844-5260

matt.liddy@alenusa.com

www.alenamericas.com

Anheuser-Busch InBev

909-597-0460

raul.aguilar@anheuser-busch.com

www.anheuser-busch.com

Bimbo Bakeries USA

714-459-4772

714-441-3435

rhamacher@mailbbu.com

www.bimbobakeriesusa.com

Bristol Farms

310-233-4700

310-233-4701

C & H Sugar Company/Domino Foods, Inc.

510-787-4416

510-787-4205

kent.kunsman@chsugar.com

www.chsugar.com

C&S Wholesale Grocers, Inc.

916-373-4396

916-373-4296

pmiller@cswg.com

www.cswg.com

IFC,1

California Beef Council

916-925-2333

916-925-8155

retail@calbeef.org

www.calbeef.org

California Beer & Beverage Distributors

916-441-5402

916-441-0713

www.cbbd.com

California Lottery

800-LOTTERY

916-323-2727

www.calottery.com

California Shopping Cart Retrieval Corp.

818-563-3070/ 800-252-4613

818-563-3041

www.cscrc.net

Canada Beef

866-538-2333

403-275-9288

mcarpenter@canadabeef.ca

Cash Register Services, Inc.

800-657-7108

806-792-0710

Steven@solutionsgrocerstrust.com

www.solutionsgrocerstrust.com

21,BC

Coca-Cola Refreshments

213-746-5555

213-744-8765

bophillips@coca-cola.com

www.cokecce.com

Day-Lee Foods, Inc.

562-802-6800

562-926-8630

info@day-lee.com

www.crazycuizine.com

Ferrero USA

503-524-9327

732-584-4836

howard.tobin@ferrero.com

www.ferrerousa.com

F. Gavina & Sons

323-582-0671

323-581-1127

sales@gavina.com

www.gavina.com

Flowers Baking Company of California LLC

562-445-2467

909-606-4687

Bruce.wyatt@flocorp.com

Food 4 Less (Stockton)/Rancho San Miguel Markets 209-957-4917

209-956-8550

Fresh & Easy Neighborhood Market Inc.

310-341-1200

310-341-1501

Fresh Dairy Direct – Southern California

626-964-6401

626-913-9062

82,87

Gelson’s Markets

818-906-5709

818-990-7877

Hillshire Brands Company

480-949-6701

480-948-0755

Holiday/Sav-Mor Foods

530-347-4621

Illuminators

209-254-2200

209-254-2255

Kellogg Company

269-961-2000

269-961-6286

Kraft Foods Global, Inc.

847-646-2000

847-646-2800

chuck.eckman@kraft.com

MillerCoors

916-786-2666

916-786-9396

chris.mathews@millercoors.com

www.millercoors.com

National Association For The Specialty Food Trade

212-482-6440

212-482-6459

info@nasft.org

www.fancyfoodshows.com

Nestle Purina PetCare

800-421-1721 x9/ 314-982-2860

paul.cooke@purina.nestle.com

www.purina.com

NexCycle

800-969-2020

408-501-8874

NuCal Foods

209-254-2200

209-254-2255

Pacific Gas & Electric Company, Time-Varying Pricing

800-468-4743

415-973-4755

timevaryingpricing@pge.com

www.pge.com/TOU

PECO Pallet, Inc.

914-376-5444

914-376-7376

sales@pecopallet.com

www.pecopallet.com

Pepsi Beverages Company - WBU

925-416-2573

925-416-2600

paul.turcotte@pepsico.com

Procter & Gamble

925-867-4900

513-277-7964

Prudential Overall Supply

949-250-4855

949-261-1947

Raley’s

916-373-3333

916-444-3733

rePLANET, LLC

951-817-3258

951-520-1701

Rio Ranch Markets

951-685-2111

951-685-6835

www.rioranchmarket.com

Safeway Inc.

925-467-3000

925-467-3323

www.safeway.com

Save Mart Supermarkets

209-577-1600

925-467-3323

Save-A-Lot Food Stores

314-592-9127

314-592-9513

Sioux Honey Association

510-888-1511

510-727-9992

SIP Certified Sustainable Wines

805-466-2288

805-466-6692

Stater Bros. Markets

909-783-5000

Sugar Bowl Bakery

888-688-1380

510-782-2119

sales@sugarbowlbakery.com

Sun Products Corporation

949-733-0263

949-266-8857

kent.mclain@sunproductscorp.com

Super A Foods, Inc.

323-869-0600

323-869-0611

Supervalu Wholesale

952-932-4373

952-932-4528

Tadin Herb & Tea Co.

800-838-2346

323-582-8687

support@tadin.com

Tony’s Fine Foods

916-374-4000

916-372-0727

kberger@tonysfinefoods.com

www.tonysfinefoods.com

Tyson Fresh Meats, Inc. – Dan Peed

605-235-3215

479-757-6720

dan.peed@tyson.com

Open-Prairie.TysonFoods.com

15,IBC

Unified Grocers, Inc.

323-264-5200

323-262-0658

customercare@unifiedgrocers.com

www.unifiedgrocers.com

Unilever

630-955-5425

630-955-5479

vinit.patel@unilever.com

www.unilever.com

Vertis Communications

410-528-9800

410-528-9287

info@vertisinc.com

www.vertisinc.com

www.bristolfarms.com

www.canadabeef.ca

www.flowersfoods.com www.food-4-less.com www.freshandeasy.com

veronica_rendon@deanfoods.com

www.deanfoods.com www.gelsons.com

robert.bukovec@hillshirebrands.com

www.hillshirebrands.com www.shophqf.com

jvangorkom@nucalfoods.com

www.illuminators.org www.kelloggs.com

jferrari@nexcollect.com

www.kraftfoods.com

www.nexcyclecalifornia.com www.nucalfoods.com

www.pepsi.com www.pg.com

pos@pos-clean.com

www.pos-clean.com www.raleys.com

joe.perez@replanet.com

www.replanetusa.com

www.savemart.com mike.stout@save-a-lot.com

www.save-a-lot.com www.siouxhoney.com

info@vineyardteam.org

www.sipthegoodlife.org www.staterbros.com www.sugarbowlbakery.com www.sunproductscorp.com www.superafoods.com www.supervalu.com www.tadin.com

Perpetual Renaissance

BeefRetail.org

Free Retail Beef Resources The California Beef Council has a variety of FREE retail beef resources to help merchandise your beef case.

California Beef Council

Spanish-Language Beef Resources

4640 Northgate Blvd., Suite 115 Sacramento, CA 95834 916.925.BEEF (2333) Phone 916.925.8155 Fax Foodservice@CalBeef.org www.CalBeef.org

Beef Retail Newsletter Scan the QR code with your smartphone for beef retail information and to download a retail resources order form.

g Indepen

1922

Unified Grocers is a proud part of California’s Retail Renaissance.

s of Gro

t ing 90 ye a r

Beef & Veal Photography

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Brochure Holders

Beef Training Programs

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Ph: 800-724-7762 | unifiedgrocers.com

C A L I F O R N I A G R O C E R S A S S O C I AT I O N

CALIFORNIA GROCERS ASSOCIATION

For the latest industry news visit www.cagrocers.com

2012, ISSUE 5

In This Issue BUILDING AN INNOVATIVE ORGANIZATION HELPING CUSTOMERS EAT HEALTHY SUSTAINABILITY: THE NEXT GENERATION

PRSRT STD US Postage Paid Permit No. 1401 Sacramento, CA

ISSUE 5

MILLENNIALS: WHO ARE THEY? SHOPPING IN A NEW ECONOMIC AGE