2013, ISSUE 2
CALIFORNIA GROCERS ASSOCIATION
CGA Advocacy:
MAKING STRIDES
IN THIS ISSUE Unified’s Guiding Force Retires Changing of the Guard
For the latest industry news visit www.cagrocers.com
The Clock is Ticking Meet Ed Hepler: Illuminator Headlite
September 29 – October 1, 2013 | Palm Springs Convention Center | Palm Springs, California California’s competitive grocery marketplace is experiencing evolutionary changes that are transforming the way the retailing game is played. Robust demographic movements, rapid technology innovations and fragmented shopping options are rewriting the rules of the game. Baby Boomers continue to influence strategies, however the new consumers, Millennials, are dictating different moves for players that want to win. Constantly conversational, loyally agile and lifestyle conscious, this new breed of grocery shoppers requires game changing approaches that are personal, purposeful, transparent and uniquely relevant. Plot your next move. Join grocery retailers from throughout California and discover how to capture this new consumer through breakout strategies and collaborative partnerships that will drive sales growth, add significant value to your business and ultimately reshape the competitive landscape of the grocery industry.
Conference Schedule Overview S U N D AY, S E P T E M B E R 2 9 F Illuminators Golf Tournament F Pre-conference General Session F Opening Reception sponsored by Kraft Foods and E&J Gallo Winery F After-hours Social Event
M O N D AY, S E P T E M B E R 3 0 F Collaborative Share Group Discussions F Opening Remarks and General Session F Pre-scheduled Business Meetings F Reception & Illuminators Special Event
T U E S D AY, O C T O B E R 1 F Multiple Educational Sessions & Retailer Spotlight F Pre-scheduled Business Meetings F Luncheon Keynote Address F Meet with California’s Top Retailers
W W W. C G A S T R AT E G I C C O N F E R E N C E . C O M
Meet with California’s Top Retailers Don’t miss this unique opportunity to meet with California’s top grocery industry decision-makers. All conference sponsors receive customized, pre-scheduled meeting schedules as part of their investment. Whether you represent a new, niche product or an established national supplier, the CGA Strategic Conference provides a highly productive forum to meet one-on-one with buyers from California’s top retail companies.
Last year’s sponsorship opportunities sold out early so call today to secure your spot now for this year’s conference. The 2013 CGA Strategic Conference offers a variety of sponsorship packages and new, customized opportunities to promote your company’s products or services. Sponsor benefits range from dedicated use of Business Conference Suites to 10’ x 10’ floor display spaces, or exclusively-presented social events. Whatever your desired outcomes, the 2013 CGA Strategic Conference offers a variety of opportunities to meet your goals and budget.
“ This conference provides an extremely efficient method for networking with colleagues and service providers. Given the intense level of grocery competition, I wouldn’t miss it.” Richard Draeger, Draeger’s Supermarkets For complete sponsorship information including a list of participating retailers and the sponsorship prospectus, contact:
Beth Wright Director, Events & Sponsorship California Grocers Association
(916) 448-3545 | (800) 794-3545 bwright@cagrocers.com
Many thanks to
The Illuminators for their continued, generous support of the CGA Strategic Conference by providing the outstanding conference meal functions and entertaining social events.
ENJOY RESPONSIBLY
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CONTENTS
F E AT U R ES
COLU M NS
CGA Advocacy: Making Strides
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Advocacy continues to be the Association’s No. 1 priority and great strides continue to be made by CGA’s government relations team. Yet, there is plenty of work to accomplish. With new challenges this legislative session, member involvement is more important then ever.
Unified’s Guiding Force Retires
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It‘s an old saw that you’ve heard in different ways 100 times. But if you look up the word “COMMITMENT” in the dictionary you’d find Al Plamann’s picture next to it.
Changing of the Guard
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There’s an old saying that the more things change, the more they remain the same. That seems to be an apt description for Unified Grocers, Inc., and also its legacy as Bob Ling takes over as President and Chief Executive Officer this May.
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President’s Message It’s All About Relationships................................... 5 From The Chair I Know It’s Important, But..................................... 7 Viewpoint — Kevin Coupe What Retailers Can Learn From Netflix............... 10 Foundation News — Shiloh London Recent College Grads Lack Real-World Fundamentals................................................... 12 Capitol Insider — Louie Brown The Legislature Looking Ahead.......................... 30 Perspective — Chris Micheli Light at the End of the UI Fund Tunnel?............. 34
DEPA RT M EN TS
The Clock is Ticking
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| Issue 2
As the nation counts down to implementation of a massive healthcare reform package, businesses from agriculture to retailing are more concerned than ever about the cost of the new regulations, the impact on hiring and staffing and its potential to derail an already fragile economy.
CGA News........................................................ 14
Meet Ed Hepler: Illuminator Headlite
Washington Report ..................................... 38, 40
Ed Hepler is a 32-year veteran of the grocery industry who now adds The Illuminators Headlite feather to his cap. Find out why every grocery supplier should join this important and worthwhile organization.
Member Profile: WinCo Foods............................ 20 Know the Law................................................... 26 Government Relations...................................... 28 Sunset Fresh Market News ............................... 82 Wealth Management .........................................85 Advertiser Index ............................................... 88
CALIFORNIA GROCERS ASSOCIATION President/CEO Ronald Fong
Vice President, Communications Dave Heylen
Director, CGA Educational Foundation Brianne Page Director, Local Government Relations Sarah Paulson Sheehy California Grocer is the official publication of the California Grocers Association.
For association members, subscription is included in membership dues. Subscription rate for non-members is $100 and does not include CGA Buyers’ Guide. © 2013 California Grocers Association
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
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Vice President, Business Development & Marketing Doug Scholz
Director, Events & Sponsorship Beth Wright
1215 K Street, Suite 700 Sacramento, CA 95814 (916) 448-3545 (916) 448-2793 Fax www.cagrocers.com
C A L I FO RN I A G RO C E R
Senior Vice President, Government Relations and Public Policy Keri Askew Bailey
Executive Director, CGA Educational Foundation Shiloh London
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CGA
| Board of Directors
EXECUTIVE COMMITTEE
Chairman of the Board Kevin Davis Bristol Farms First Vice Chair Mary Kasper Fresh & Easy Neighborhood Market Inc.
CHAIRMAN APPOINTMENTS DIRECTORS
Dora Wong Coca-Cola Refreshments
Raul Aguilar Anheuser-Busch InBev
Chuck Eckman Kraft Foods Group, Inc.
Omar Milbis Rio Ranch Markets
Jon Alden Jelly Belly Candy Co.
Phil Gentile, Jr. K.V. Mart Co.
Phil Miller C&S Wholesale Grocers
Renee Amen Super A Foods, Inc.
Jon Giannini Nutricion Fundamental, Inc. Warehouse
Eric Nadworny Save Mart Supermarkets
Frank Jimenez The Hershey Company Bill Jordan Whole Foods Market
Paul Cooke Nestle Purina PetCare
Eric Lindberg, Jr. Grocery Outlet, Inc.
Kendra Doyel Ralphs Grocery Company
Dave Madden MillerCoors
John Eagan Costco Wholesale
Dan Meyer Stater Bros. Markets
Veronica Rendon, Dave Thatcher Alta Dena Certified Dairy
Damon Franzia Classic Wines of California
Rick Van Nieuwburg Altria Corp. Services
Dan Atkins Berkeley Farms, Inc. Rickey Hamacher Bimbo Bakeries USA Gilbert de Cardenas, Bob Cashen Cacique USA
C A L I F OR N IA G R OC ER
Diana Godfrey Smart & Final Stores
Dennis Belcastro Hillshire Brands Company
Raul Aguilar Anheuser-Busch InBev
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Immediate Past Chair Jonathan Mayes Safeway Inc.
Michael Read WinCo Foods, Inc.
Joe Angulo El Super (Bodega Latina Corp.)
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Treasurer Kevin Konkel Raley’s
Secretary Joe Falvey Unified Grocers, Inc.
Dave Jones Kellogg Company
Teresa Anaya Northgate Gonzalez Markets
SUPPLIER EXECUTIVE COUNCIL
Second Vice Chair John Quinn Food 4 Less (Stockton) – Times Supermarkets
Nancy Limon, Dora Wong Coca-Cola Refreshments Vic Chiono Coca-Cola Refreshments Minute Maid Business Unit Stephenie Shah Diageo Andres Jaramillo Don Pedro’s Kitchen Thomas Wilson Flowers Baking of California
Victoria Horton California Beer & Beverage Distributors
Scott Johnson, Shannon Nadasdy Financial Supermarkets, Inc.
Cindy Plummer California Table Grape Commission
Brian Rosen, Ann Wilson Gleason Inc.
Mark Cassanego Carr, McClellan, Ingersoll, Thompson & Horn Pat Huston, Robert Hilliard Cash Register Services
Fernando Gallego Golden Gate Paper Company John Hewitt Grocery Manufacturers Association. Mickie Sharp-Villanueva Hansen Beverage Company
Hee-Sook Nelson Gelson’s Markets John Parke E & J Gallo Winery Vinit Patel Unilever Bob Richardson The Clorox Company Brian Schmidt Acosta Sales & Marketing Harish Solanki Big Saver Foods, Inc.
Naresh Solanki Bestway/Gardena Supermarkets Mike Stamper Nestle DSD Dirk Stump Stump’s Markets John Swindell Food 4 Less/Foods Co. (A Kroger Company) Paul Turcotte Pepsi Beverages Company – WBU Jim Wallace Albertsons/Sav-On Pharmacy Tammy Wilson Jax Markets
Elizabeth Alvarez-Sell, Greg Bailey The Hershey Company
Paul Turcotte Pepsi Beverages Company – WBU
Dennis Belcastro Hillshire Brands Company
Vince Delgado Procter & Gamble
Tim Cohen Hidden Villa Ranch
Melanie Zitting, Sue Sharp Pure Water Technologies
Kristina Crystal-McVay The J.M. Smucker Co.
Renee Wasserman Rogers Joseph O’Donnell
Dave Jones Kellogg Company
Darrell Costello Roplast Industries Inc.
Richard Bell LOC Software
Greg Romero Stericycle ExpertSOLUTIONS
Dave Madden MillerCoors Steven Schultz Moss Adams LLP Paul Cooke, Karen Doggendorf Nestle Purina PetCare Jim Van Gorkom NuCal Foods Laurie Stone PBI Market Equipment, Inc.
Tom H. Daniel Sterilox Food Safety Mike Hinson TC Transcontinental Northern California Phyllis Adkins TruGrocer Federal Credit Union Vinit Patel Unilever
PRESIDENT’S MESSAGE
It’s All About Relationships What’s great about relationship building is that it can occur at anytime and in anyplace. That time and place is now. In May, two key California grocery industry icons, Al Plamann, Unified Grocers, Inc., and Steve Burd, Safeway Inc., retire after decades of service to their respective companies and leave legacies of leadership during some of our industry’s most tumultuous times.
This relationship building has national implications, too. Over a dozen state legislators who our lobbying team and I have built relationships with over the years are now in Congress. These relationships now continue under a new capitol dome.
Both executives leave their companies in very capable hands. Fortunately, over the years CGA has nurtured strong relationships with many associates at both companies which helps ensure a smooth transition and continued Association support.
I share this because this month’s issue examines the Association’s state and local advocacy efforts. To many the information is foreign and distant to the day-to-day operations of selling groceries, and yet what happens in the State Capitol and in city halls statewide has a dramatic financial impact on your company.
Why do I mention this? The California Legislature is in full swing and CGA staff is sifting through hundreds of introduced bills, closely analyzing each one to determine its potential impact on your business. It is a laborious undertaking but critical to the success of our government relations program. Yet, effective advocacy requires much more than scrutinizing bill language and testifying in committee. Similar to our industry, it’s also about relationships. In fact, a meaningful government relations program cannot succeed with out it. When I started lobbying in 1996, one of the first legislators I met and developed a professional relationship with was a freshman, Senator John Burton. Years later Senator Burton became the most powerful and influential leader in the State Legislature and is now chairman of the California Democratic Party.
President/CEO
Our hope is that by understanding how the system works, our members will be more willing to develop these same types of relationships and engage dialogue with their elected officials. Developing relationships at the local level can benefit CGA years down the road. Quite often, state legislators cut their teeth at the local level. The relationship you develop now may one day open an important door in the State Capitol. One of the best ways CGA members can begin building these critical relationships is to attend this year’s Grocers Day at the Capitol on April 30 in Sacramento. This is CGA’s one-day lobby event that allows our members to learn about key legislation facing our industry and then to meet with legislative leaders and staff in the Capitol to discuss the impact of these bills on our industry, and inevitably their constituents. Go online at www.cagrocers.com and sign up today. Help CGA build relationships and strengthen our advocacy efforts. I look forward to seeing you in Sacramento! n
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Similarly, when I first met California Senate pro Tem Darrell Steinberg, he was a city council member. Over the years we have maintained our friendship, meeting more so to listen than to lobby. In both cases, these relationships have helped CGA’s overall lobbying efforts.
RO NALD FONG
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Grocers Day at the Capitol B U I L D I N G R E L AT I O N S H I P S . S T R E N G T H E N I N G F R I E N D S H I P S . For over a decade, CGA Grocers Day at the Capitol has built bridges between the state’s grocers and policy makers. With significant policy issues as well as specific legislation taking center stage and new faces entering the state house, participating in this banner event is more important than ever.
TUESDAY, APRIL 30, 2013 SACRAMENTO, CA For additional information, contact Dane Hutchings, CGA, at (916) 448-3545. Sponsorship opportunities available. Please visit our website at www.cagrocers.com, or contact Beth Wright (916) 448-3545.
FROM THE CHAIR
I Know It’s Important, But...
When people in our industry learn that I am the Chairman of the California Grocers Association, the first comment I get is; “Wow, how can you do that with everything else you have going on?” This question is usually followed with a comment like, “I know it’s important and I wish I had the time to be more involved, but I’m just too busy with business, etc.” Invariably, sometime down the road, these same individuals find themselves faced with a government affairs situation, a lawsuit, a licensing roadblock, a recycling issue, a food safety situation, or a local ordinance, zoning problem, or political campaign that will impact their business in an unexpected way.
Typically as a last resort, they call CGA, or one of our board members, for advice, a referral to the appropriate staffer, or simply because after spending tons of money on attorneys and exhausting all other resources, they have run out of options. Typically as a last resort, they call CGA, or one of our board members, for advice, a referral to the appropriate staffer, or simply because after spending tons of money on attorneys and exhausting all other resources, they have run out of options.
It occurred to me that there are many people at all levels throughout California’s food industry who just don’t understand the underpinnings of CGA and how this great service and advocacy organization works year-round to solve industryrelated problems, not only in Sacramento,
KEVIN DAVIS CGA Chairman of the Board President and CEO Bristol Farms
but locally, and even on the national level when appropriate. Many are unaware of the countless hours CGA staffers spend behind the scenes to resolve potentially harmful issues long before they have the chance to see the light of day. Nor are they aware of the many after hours events staff attend cultivating important relationships. The Association is not a private club, or fraternity of grocers. It is a very open and far-reaching advocacy organization whose primary objective is representing our industry. Whether it’s responding to media inquiries regarding an industry-related issue, or representing us as a united association of companies with a common position in favor of, or against a certain political position or new law, the CGA is our voice. What’s even more important is that due to the in-house expertise and excellent reputation Continued on p. 8
C A L I FO RN I A G RO C E R
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CGA Chair Kevin Davis (right) discusses grocery issues with Assemblymember Marc Levine.
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FROM THE CHAIR
Continued from p. 7
Meetings, than trying to decipher them myself.
CGA’s staff has earned, our voice, through CGA, is willingly heard by policy makers and regulators for its balanced, honest and well-thought out perspective on the issues that face our companies, our customers, and all Californians.
CGA’s membership dues, the minimal time commitment, and strategic contacts I have developed over the past three years through my CGA Board participation have paid our company back many times over. I view these as being essential to doing business in California.
CGA membership is not an expensive proposition. Participation in the form of time commitment can be as little or as much as you or your company can or want to commit. Membership fees are simply a necessary form of fundraising to provide high quality expertise and representation by CGA’s government relations team where it matters most, in Sacramento, and at the local level.
Membership dues are essential to funding CGA’s advocacy agenda. These dues, along with the Association’s other revenue streams, allow staff to engage in the critical issues that must be addressed so that we can effectively operate our businesses.
Board membership requires a little more participation, but I find it no more time consuming than trying to keep up with the hundreds of new laws affecting our business each year. I would rather spend time having experts explain the ramifications and options to me in CGA’s bi-weekly legislative calls, or quarterly Board
If you are not yet a CGA member, I encourage you to become one. If you are a member and have yet to renew your membership, do so today. Participate in any way possible to help strengthen our advocacy efforts, for our employees and customers as we work with lawmakers toward building our businesses and in turn strengthening our economy and leading us to a better, stronger, and healthier California. n
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Products available at your local retailer
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