California Grocer Issue 6, 2013

2013, ISSUE 6

CALIFORNIA GROCERS ASSOCIATION

IN THIS ISSUE 2013 CGA Strategic Conference California Hispanics: The Future Is Now Fighting Food Deserts Mary Kasper: New CGA Chair

For the latest industry news visit www.cagrocers.com

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CONTENTS

F E AT U R ES

COLU M NS

The Rise of the Highly Empowered Super Super Consumer Consumer of the

HIGHLY EMPOWERED

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Successful adoption of emerging technology depends on adapting it to the needs of a new generation of “super consumers” ­— not the other way around.

Incoming CGA Chair: Mary Kasper

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For Incoming CGA Chair Mary Kasper, the grocery industry remains a fascinating and complex combination of technology, emotion and communication — ­ both on the part of retailers and their customers.

California Hispanics: The Future Is Now

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We have all witnessed the demographic shift across the nation, 17 percent of the nation’s population is Hispanic, and by 2060, that will grow to 30 percent. In California, however, that future is here and now.

Fighting Food Deserts

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Supermarkets are on the front lines in the movement to eliminate so-called food deserts. Now grocers have new allies in the fight — in the form of philanthropy and finance.

President’s Message Business Dodges A Bullet … For Now....................5 From The Chair Thank you.............................................................9 Viewpoint — Kevin Coupe Leadership Untethered........................................14 Government Relations....................................... 16 Capitol Insider — Louie Brown A Look Ahead to 2014........................................18 Perspective Minimum Wage, UI Payments Increasing for California Grocers......................... 22

DEPA RT M EN TS Know the Law.................................................... 25 Washington Report ........................................... 30 Q & A — Kevin Johnson.................................... 34 CGA News......................................................... 38 Wealth Management......................................... 78 Advertiser Index ................................................ 80

CALIFORNIA GROCERS ASSOCIATION President/CEO Ronald Fong

Vice President, Communications Dave Heylen

Director, CGA Educational Foundation Brianne Page 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: aortega@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 F OR N I A G R OC 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.

Second Vice Chair Joe Falvey Unified Grocers, Inc. Treasurer Kevin Konkel Raley’s

Dave Jones Kellogg Company

Dora Wong Coca-Cola Refreshments

DIRECTORS

Raul Aguilar Anheuser-Busch InBev Jon Alden Jelly Belly Candy Co. Renee Amen Super A Foods, Inc. Teresa Anaya Northgate Gonzalez Markets Joe Angulo El Super (Bodega Latina Corp.)

Dennis Belcastro Hillshire Brands Company Paul Cooke Nestlé Purina PetCare Brent Cotten The Hershey Company

Robert Digrigoli Procter & Gamble Kendra Doyel Ralphs Grocery Company John Eagan Costco Wholesale Jon Giannini Nutricion Fundamental, Inc. Diana Godfrey Smart & Final Stores Bill Jordan Whole Foods Market Michel LeClerc North State Grocery, Inc. Eric Lindberg, Jr. Grocery Outlet, Inc. Dave Madden MillerCoors

Casey McQuaid E & J Gallo Winery Dan Meyer Stater Bros. Markets Omar Milbis Rio Ranch Markets Phil Miller C&S Wholesale Grocers Eric Nadworny Save Mart Supermarkets Hee-Sook Nelson Gelson’s Markets Bob Richardson The Clorox Company Brian Schmidt Acosta Sales & Marketing Harish Solanki Big Saver Foods, Inc.

Naresh Solanki Bestway/Gardena Supermarkets Mike Stamper Nestlé Sales Division Dirk Stump Stump’s Markets Tiernan Summins Kraft Foods Group, Inc. John Swindell Food 4 Less/Foods Co. (A Kroger Company) Paul Turcotte PepsiCo Jim Wallace Albertsons/Sav-On Pharmacy

SUPPLIER EXECUTIVE COUNCIL

Veronica Rendon, Dave Thatcher Alta Dena Certified Dairy, LLC Rick Van Nieuwburg Altria Corp. Services Raul Aguilar Anheuser-Busch InBev Rick DuCharme, Perry Sanders BBUSA, Rainbo Baking Co., Nature's Harvest Dan Atkins Berkeley Farms, Inc. Gilbert de Cardenas, Bob Cashen Cacique USA Victoria Horton California Beer & Beverage Distributors Cindy Plummer California Table Grape Commission Keith Olscamp Campbell Soup Company Mark Cassanego Carr, McClellan, Ingersoll, Thompson & Horn Pat Huston, Robert Hilliard Cash Register Services

Damon Franzia Classic Wines of California Bob Richardson The Clorox Company Nancy Limon, Dora Wong Coca-Cola Refreshments Vic Chiono Coca-Cola Refreshments Minute Maid Business Unit Ron Bloes Coffee Bean & Tea Leaf Stephenie Shah Diageo Andres Jaramillo Don Pedro’s Kitchen Scott Johnson, Shannon Nadasdy Financial Supermarkets, Inc. Bruce Wyatt, Thomas Wilson Flowers Baking of California Brian Rosen Gleason Inc. Fernando Gallego Golden Gate Paper Company John Hewitt Grocery Manufacturers Association

David Van Winkle Hansen Beverage Company Elizabeth Alvarez-Sell, Greg Bailey The Hershey Company Tim Cohen, Bob Kelly Hidden Villa Ranch Dennis Belcastro Hillshire Brands Company Kristina Crystal-McVay The J.M. Smucker Co. Dave Jones Kellogg Company Richard Bell LOC Software Dave Madden MillerCoors Kevin Arceneaux, Rick Brindle Mondelez International Steven Schultz Moss Adams LLP Paul Cooke, Karen Doggendorf Nestlé Purina PetCare Jim Van Gorkom NuCal Foods

Lauren Ziminsky Patriot Risk and Insurance Services Inc. Laurie Stone PBI Market Equipment, Inc. Paul Turcotte Pepsi Beverages Company — WBU Robert Digrigoli Procter & Gamble Melanie Zitting, Sue Sharp Pure Water Technologies Renee Wasserman Rogers Joseph O’Donnell Darrell Costello Roplast Industries, Inc. Tom H. Daniel Sterilox Food Safety Karen Grierson TC Transcontinental Northern California Phyllis Adkins TruGrocer Federal Credit Union Chris Polak Unilever Jennifer Ward WorldPay US, Inc.

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C A L I F OR N I A G R OC E R

CHAIRMAN APPOINTMENTS

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Secretary Michael Read WinCo Foods, Inc. Immediate Past Chair Jonathan Mayes Safeway Inc.

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PRESIDENT’S MESSAGE

Business Dodges A Bullet…For Now Things could have been much worse for CGA’s member companies and the business community as a whole this year.

RO NALD FONG President/CEO

Fears about Democrats’ hegemony in Sacramento were largely not realized, despite some notable and significant new laws that will undoubtedly do damage to California’s flagging economic recovery. Those losses were, however, offset by some significant victories that staved off truly devastating policy changes. But hang

Two special elections in late 2013 call into question the ability of Democrats to stave off election losses while pushing an agenda of tax increases. In the Central Valley, Republicans pulled off an unexpected win to fill a vacant State Senate seat demonstrating that the wounded party can still win tough races with the

onto your hats because circumstances colliding in 2014 and beyond could make for a bumpy ride next year!

right candidate.

Two special elections in late 2013 call into question the ability of Democrats to stave off election losses while pushing an agenda of tax increases.

While Democrats technically held a two-thirds majority in both legislative houses in 2013, their true numbers dipped below that threshold for much of the year. Entering 2014, however, both houses should be full and the majority party should have an opportunity to function for the entire Legislative year with an actual two-thirds voting majority.

And the pressure will be on to quickly address revenue issues before the November 2014 elections when many feel Republicans will have a real opportunity to chip away on the Senate side and reduce Democrats to a simple, though still sizeable, majority. But the path may not be entirely clear.

More recently, a special election to fill a vacancy on the Assembly side nearly resulted in an upset

by Republicans — ­ in a district where Democrats outnumber Republicans by a wide margin and the Democrat candidate outspent his Republican opponent significantly. A major issue in that race?

Protecting Prop 13’s property tax limitations.

Why might Democrats be compelled to try even against growing electoral headwinds? Beginning in 2016, the temporary tax increases authorized under 2012’s Proposition 30 begin to expire.

While drafters were smart enough to phase out the revenues rather than cut them all off at once, the losses will create a hole in the budget.

In addition, California moved quickly under the Affordable Care Act to expand its public health program, MediCal. While initially the new costs will be largely reimbursed by the Federal government, that reimbursement declines precipitously in a few years creating significant pressure to generate new revenues that can be used to fund the expansion. n

C A L I F OR N I A G R OC E R

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Congratulations!

Thank You!

To our own Sr Vice President Sales and Account Management

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Bristol Farms

Kevin Davis for your dedicated service to the CGA as

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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, participating in this banner event is more important than ever.

WEDNESDAY, MARCH 26, 2014 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.

Congratulations

BOS S !

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CHAIRMAN OF THE BOARD Thank you for making a difference!

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FROM THE CHAIR

Thank You

So much goes on with CGA every year that it’s hard to look back and see all of the industry changes, association activities and government relations efforts as more than one long blur!

What a fast-paced year this was! I can hardly believe that it’s over and my tenure as CGA Chair is at an end.

To all those who supported CGA this past year, thank you! Our industry and its people are simply amazing and accomplish so much together that it’s sometimes hard to think that many of us are competitors.

We began the year with a strategic plan centered on serving our membership, and focused on CGA’s government relations objectives.

As usual we faced a daunting slate of new bills and propositions that ranged from carryout bag bills to GMO labeling, and from taxes on sugar-sweetened beverages to new minimum wage laws.

The Association’s effective and well-connected government relations team of Tim James and Dane Hutchings, under the direction of Keri Askew-Bailey, helped advocate on behalf of our industry at both the state and local level to the largest number of newly-elected government officials that we’ve ever seen.

They were tasked with explaining our position, and pushing for logical compromise that would help the industry continue to grow and prosper, while serving the needs of Californians statewide.

To the honorees, attendees, and CGA staff, under Shiloh London and Brianne Page’s experienced leadership, I thank you, first for setting the bar so high, and secondly for clearing it with such ease!

The donations raised from this successful event will fund scholarships to our members and their families, and help us continue to grow as an industry and a community.

The California Grocers Association is nothing without its membership.

Whether an independent or chain, wholesaler or supplier, CGA’s success is in the combined voice of its strong, diverse and active membership.

This year our Business Development and Marketing team, led by Doug Scholz, added 11 new board members to the CGA Board.

They solicited and drew new members to the Continued on p. 10

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Grocers Day at the Capitol was better attended and provided more face time with new legislators than ever before. We were able to put our issues front and center early in the tenure of these newly-elected officials. Thank you to the entire Government Relations team for a very productive year and for a job well done!

CGA Chairman of the Board President/CEO Bristol Farms

C A L I F OR N I A G R OC E R

The Association’s special envoy to Washington D.C. to seek relief from California’s WIC license moratorium was very successful and helped not only our member retailers, but our customers as well.

This year the CGA Educational Foundation celebrated the accomplishments of two of our industry’s most beloved leaders, Jim Lee of Stater Bros. Markets, and Vic Chiono of CocaCola Refreshments. It was one of the most successful Hall of Achievement Dinners ever.

KEVIN DAVIS

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FROM THE CHAIR

Continued from p. 9

Association and grew our overall membership during a period of continued consolidation in the food industry.

Obviously, I am proud of all that has been accomplished

by CGA and its staff this past year.

Together, Doug, Beth Wright and Sunny Chang, along with the Communication team led by Dave Heylen and supported by Tony Ortega, planned, coordinated, promoted, and executed one of the best CGA Strategic Conferences ever, setting new revenue and attendance standards for the event.

Thank you for the leadership of President & CEO Ron Fong, and the teamwork of its Officers and Directors, under which CGA has strengthened its staff, broadened its membership, increased its revenues, and most importantly strengthened its voice in the representation of our industry in Sacramento and throughout our state over the past year.

A special thank you to Doug and Dave for working so hard to make all of us on stage at the conference look as if we knew what we were doing!

To all of you who have made my year as CGA Chair so rewarding, and who have helped shape the future of our industry in California, thank you!

Thank you also to this year’s Illuminators Headlite Ed Hepler of The Hain Celestial Group. Ed and all of the Illuminator’s were once again outstanding in their yearlong support of CGA, but especially during the Strategic Conference when their “Lite of Good Fellowship” shined well into the late nights and early mornings.

Sincerely, Kevin Davis n

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We would like to thank Kevin for his leadership and look forward to working with Mary!

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VIEWPOINT

Leadership Untethered KEVIN C OU P E

I began the year with a column talking about the movies, and I’d like to end the year the same way, and not just because I co-wrote a book about business lessons to be learned from movies.

I’ve seen three movies in recent days that I think are replete with management lessons, and I’d like you to see them, too. All work best on the big screen, by the way; these are big movies with big themes, and they deserve a big canvas. (If you want to watch them on your 56-inch flat screen at home, that’s fine, too. I don’t recommend watching them on your iPad, though.)

The movies are these: “Gravity”, “Captain Phillips”, and “All Is Lost”. What they share are protagonists who find themselves dealing with unexpected, even catastrophic, situations for which there could be little actual preparation.

Even though one of the movies deals with outer space, and two with situations that take place on the open seas, they really are about ordinary individuals dealing with extraordinary circumstances. In many ways, I think this is what leaders and managers in business do every day.

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“Gravity” is the film that takes place in outer space, and Sandra Bullock and George Clooney play astronauts repairing of the Hubble Space Telescope. Unexpectedly, because the Russians have blown up what is presumed to be a spy satellite, debris from the wreckage goes into orbit around the earth and destroys not just the telescope, but also their means of getting home.

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In “Captain Phillips”, based on a true story, Tom Hanks plays the skipper of a cargo ship that is hijacked by Somali pirates. Once his ship has been taken over, it is his job to keep the pirates from killing his crew and, as best he can, keep them at bay until Navy Seals arrive. In doing so, he and three of the pirates end up in a lifeboat, and the danger is that Phillips’ captors have nothing to lose; they come from poverty, they are at the mercy of local warlords, and it is hard to negotiate with people who have no options.

And finally, in “All Is Lost”, Robert Redford plays the role of his life as a man who is sailing

by himself around the world. While in the Indian Ocean late at night, his boat is rammed by a cargo container, putting an enormous gash in the hull and rendering virtually all his electronics useless.

Go see these three movies, and think about yourself and your own business.

You may not be fighting the same kinds of disruptions, but you have them nonetheless.

From there, he must repair the ship and cope with an enormous storm that puts to the test every survival instinct he can muster. It is quite literally a one-man show, with Redford ­— now in his late 70s, showing wear and tear as well as wisdom that tempers the cockiness he showed in his youth as the “Sundance Kid” ­— fights the elements, frustration and growing exhaustion as he tries to survive.

In all three films, the protagonists are both literally and figuratively untethered from their conventional realities. There are no rules, other than the laws of nature. They have to hypothesize and improvise … because in the end, the ability to be resourceful is a matter of character, not training.

In many ways, I think that’s what business leaders do every day. At least, that’s what the smart ones do because they know that following traditional paths and obeying traditional rules these days will only get you conventional results.

And in 2013, conventional just doesn’t cut it.

I’ve been reading the new book, “The Everything Store: Jeff Bezos and the Age of Amazon,” by Brad Stone, and it occurs to me that in many ways, when he created Amazon,

VIEWPOINT

the goal was to untether the business from traditional

Bezos, when he talks about Amazon’s disruptive

strictures. Bezos has a “today is day one” approach

influence on various industries, likes to point out that

that requires everyone within the company to avoid

Amazon didn’t happen to the book business … it was

conventional thinking like the plague … indeed, they

the future that happened to the book business.

have to hypothesize and improvise. Daily.

For Bullock and Clooney in “Gravity”, the disruptive

Bezos says in the book that Amazon was designed

influence was space debris. For Hanks in “Captain

to be customer-centric, because most retailers are

Phillips”, it was Somali pirates. And for Redford in “All

process-centric. He says Amazon was designed to

Is Lost”, it was the force of nature itself.

be long-term oriented, because most retailers need

Go see these three movies, and think about yourself,

to see short-term results, or they’ll move on to some other initiative. And, he says Amazon is designed to be inventive, because most retailers want to be “close followers,” because in the end, it is safer.

and your own business. You may not be fighting the same kinds of disruptions, but you have them nonetheless. You have to make your own future, and not let it happen to you.

I suspect that if he sees these three movies, Bezos will feel like he has a lot in common with Bullock, Clooney, Hanks, and Redford. Sure, they deal with extraordinary situations, but the modern business climate sometimes

Happy Holidays. And I’ll see you in 2014. n Editor’s Note: Kevin Coupe is co-author of “The Big Picture: Essential Business Lessons from the Movies”, and is working on a sequel.

seems to be one extraordinary situation after another.

thank you

Kevin Davis for your dedicated service to the Association.

C A L I F OR N I A G R OC E R

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G O V E R N M E N T R E L AT I O N S

Democratic Supermajority — Year One KERI ASKEW BAILEY

After months of speculation and special elections the story can finally be written on the first year of lawmaking with Democrats firmly in control of all levels of State government.

Thanks to a series of special elections that created a series of vacancies, numbers dipped from time-to-time below the two-thirds margin required to pass revenue generators (taxes) but never enough to provide a real challenge to Democrats’ ability to exercise their policy will.

All in all, the year was not as bad as it could have been, with several problematic bills amended, defeated or held. However, California’s businesses will see changes that increase the cost of doing business in California, sometimes significantly.

While an article elsewhere in this edition outlines the significant challenges employers confront in absorbing a significant increase in the State’s minimum wage, a suite of other labor-backed bills will increase costs and the potential for litigation against employers.

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For example, California’s paid family leave law was expanded to include time off to care for an ill grandparent, grandchild, sibling, or parent-inlaw. In addition, existing provisions that establish penalties for failure to provide mandated meal or rest periods will expand to include meal, rest or recovery periods called for under heat illness prevention requirements.

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These new potential avenues for litigation are coupled with changes that tip the balance in favor of employees in the penalty arena. Under legislation approved this year employers can be required to pay liquidated damages, in addition to penalties and restitution, in additional circumstances. And recovery of reasonable attorney fees will be allowable for employers when they prevail in employment actions only if they can prove that the action was brought in bad faith.

The new challenges are balanced to some extent by victories for the retail food industry. Minor

reforms to Proposition 65 will allow a very limited opportunity to cure alleged violations relating to many food items prepared for immediate consumption.

All in all, the year was not as bad as it could have been, with several problematic bills amended, defeated or held.

In addition, grocery retailers saw approval of legislation that will help to ease the significant challenges posed by recent legislation that created a strict liability standard around humane treatment of egg laying hens. The newly approved standard holds retailers liable only if they knew or should have known treatment standards were sub-par.

A lack of progress on several major labor priorities represented victories for the business community, but as this edition’s “President’s Message” notes, significant challenges lay ahead for 2014. It is certain that legislation pushing taxes on specific food products will return, and likely they will be accompanied by legislation seeking to shift escalating public health costs onto the employer community. In the regulatory, battles over Proposition 65 reform will likely begin anew and work remains to help end California’s ongoing moratorium on WIC vendor authorizations.

For more information on new laws your company needs to know about, visit the CGA website at www.cagrocers.com n

CGA EDUCATIONAL FOUNDATION

HALL of ACHIEVEMENT DINNER

AND

LIVE AUCTION

THURSDAY, MARCH 13, 2014

JIM AMEN SUPER A FOODS, INC.

KEVIN ARCENEAUX MONDELÉZ INTERNATIONAL

The Foundation’s Hall of Achievement was created in 1993 to recognize California grocery retailers and suppliers who have contributed substantially to the advancement of the grocery industry.

Proceeds from this event benefit the CGAEF’s College Scholarship and Career Development Tuition Reimbursement Programs.

For more information visit www.cgaef.org.

CGA Educational Foundation 1215 K Street, Suite 700 Sacramento, CA 95814 (916) 448-3545 / foundation@cagrocers.com

CAPITOL INSIDER

A Look Ahead to 2014 2013 seems to have been the year of the special election.

By the end of this year there will have been eight special elections and with the recent announcement of Sen. Bill Emmerson’s resignation from the Senate, the trend will extend into the first quarter of 2014. At the same time, we will begin shifting our focus to the regular course of elections.

In 2014, all 80 assembly seats will face an election, and 20 of the 40 Senate seats. There will also be a statewide gubernatorial election and a host of ballot measures, many of which have yet to be determined. Rumor has it the Governor wants a clean ballot. However, California’s initiative process is one he cannot control so it remains to be seen if he will get his wish.

To date, three initiatives are already qualified for the November 2014 ballot.

One is the water bond originally passed by the Legislature in 2009, and was to be voted on in 2010. The initiative was postponed until 2012, then until 2014. It is unclear at this time the future of the bond. Many believe a revised, smaller bond has a chance to pass but only with the Governor’s support.

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Without it, the Legislature could simply kick the can again and move the bond to a later ballot.

Opinions vary on what vote threshold is needed to make such a move.

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However, with a super-majority in both houses, the majority of Democrats would seem to have the votes needed in either case if they can agree on what direction to take. Since we are talking water, an agreement is much easier said than done!

The other two measures address the California budget process and health insurance.

The budget ballot initiative would require increased reporting of state revenues and new mandates on the state’s rainy day fund.

The health insurance proposal would require insurance rates to be approved by the Insurance

Commissioner — a proposal supported by the Commissioner and likely to bring opposition from health insurance companies.

In addition to the three already qualified, there are a number of initiatives in the process of having signatures verified. Two are seeking to overturn recent actions by the Legislature and Governor. One would undo an off reservation Indian Compact and the other is a referendum on a bill regarding transgender students. The power of the referendum shows that in politics your issue is never truly done.

The year 2014 will be exciting and expensive with the November election quietly weighing on everyone’s minds (and checkbooks).

There are another 12 in circulation which means they are gathering signatures. The issues vary from raising the cap on medical malpractice claims to legalizing marijuana to electricity regulation. These hot topics are sure to bring a variety of supporters and opponents, not to mention result in a lot of money being spent on campaign consultants, mail, media, etc. if they ultimately qualify for the ballot.

In addition to those in the process of qualifying for the ballot, there are another 20 initiatives submitted to the Attorney General’s office for title and summary, the first official step in the initiative process. Since the submission process is not expensive, it allows a number of issues to get started. However, it is unclear how many of these should be taken seriously since the real effort (and cost) starts with signature gathering, step two.

As of now, there are nearly 40 initiatives that could make their way to the November 2014 ballot. There is also still plenty of time for more initiatives to be filed and qualify. If they all, or

CAPITOL INSIDER

even a majority of them, made it onto the ballot, it would no doubt be extremely cluttered and not in line with the Governor’s desire for a clean ballot.

On the other side of the ledger, most of the Legislature is focused on re-election. Leadership will be focusing

on those seats they want to protect and possibly pick up. In the end, even with 100 legislative races to be determined on election night, the focus will come down to a small hand full of competitive seats. Even though the number is relatively small, the results could have a big impact possibly undoing the supermajority in one or both houses.

Amidst all of the worries about the November ballot, for candidates and for initiatives, there will be an entire year of policy. Legislators will try to accomplish big election year goals without hurting themselves, while simultaneously targeting their opponents. The year 2014 will be exciting and expensive with the November election quietly weighing on everyone’s minds (and checkbooks). n This article was authored by Louie Brown, a partner in the Sacramento office of Kahn, Soares and Conway, LLP.

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NORTH STATE GROCERY, INC.

Thank you outgoing CGA Chairman, Kevin Davis!

Congratulations new CGA Chairman, Mary Kasper!

BIMBO BAKERIES USA

THANKS KEVIN DAVIS, OUTGOING CGA CHAIRMAN OF THE BOARD,

& WELCOMES MARY KASPER, THE INCOMING CHAIR OF THE BOARD. BimboBakeriesUSA.com

©2013 Bimbo Bakeries USA, Inc. All rights reserved.

PERSPECTIVE

Minimum Wage, UI Payments Increasing for California Grocers CHRI S M IC HE LI Legislative Advocate Aprea & Micheli, Inc.

On Sept. 25, 2013, Gov. Jerry Brown signed AB 10 into law, not once, but twice, in two signing ceremonies in the state.

The bill by Assemblyman Luis Alejo (D-Watsonville) amends Section 1182.12 of the Labor Code to raise California’s minimum wage.

The last increase in the state’s minimum wage for all industries was January 2008, when the

However, when the bill passed the Legislature on the final day of the 2013 session, after being in print for just a handful of hours, AB 10 contained a 25 percent increase in the minimum wage to $10 per hour, phased-in over

amount was increased over two years to its current $8 per hour.

18 months, but without the annual indexing provision. Removal of the indexing provision was the author’s commitment to get the bill out of the Assembly. In the closing hours of the 2013 session, Legislative Democrats and Governor Brown agreed to the $10 increase via a two-step process of two $1 raises.

Assuming no other state raises its minimum wage, AB 10 will give California the highest minimum wage rate in the country. This new law increases the minimum wage to not less than $9 per hour on July 1, 2014, and $10 per hour on Jan. 1, 2016. The federal minimum wage remains at $7.25 per hour.

When AB 10 traveled through the legislative process, several variations were considered.

When the bill left the Assembly in May, it phased-in over three years an increase in the minimum wage to $9.25 per hour, and contained a requirement that the minimum wage be indexed annually for inflation after 2016. In the Senate, business interests were successful in forcing removal of the indexing provision, but the author increased the amount to $10 over five years.

Co-authored by Assembly Speaker John Perez (D-Los Angeles) and Senate President pro tempore Darrell Steinberg (D-Sacramento), AB 10 was the only one out of 38 “Job Killer” measures that made it to the Governor’s desk this year.

Previous minimum wage legislation in 2011 and 2012 did not make it through the process.

According to the fiscal estimates provided to the Legislature during consideration of AB 10, the Department of Industrial Relations will likely incur costs of $400,000 to issue new Minimum Wage Orders to the 815,000 employers in this state.

Also, the state would see increased salary costs of about $16.3 million in the 2017-18 fiscal year. The toll on private enterprise was not tallied.

Assemblyman Alejo and numerous labor groups argued that the minimum wage has not kept pace with the cost of living and as a result individuals being paid the minimum wage have actually seen a decrease in their purchasing power. For example, according to the California Budget Project, between 1968 and 2008, the purchasing power of California’s minimum wage fell 24.8 percent. The bill was a top priority of major labor organizations.

CGA joined with other business trade associations to actively oppose AB 10 because

PERSPECTIVE

a 25 percent increase in the minimum wage over less than three years will significantly drive up costs for all businesses. CGA argued that this increase will drive up numerous other employer costs, such as salaries for exempt employees, workers’ compensation costs, unemployment insurance costs, and ultimately consumer prices.

Employers should be aware that the minimum wage hikes result in an increase in the overtime exemptions under California law for executive, administrative or professional individuals.

Moreover, CGA and others cited an NFIB study released last summer finding that between 46,000 and 68,000 jobs could be lost in California by 2023 under the provisions of AB 10 with a corresponding multi-billion reduction in real economic output.

Employers should be aware that the minimum wage hikes result in an increase in the overtime exemptions under California law for executive, administrative or professional individuals. These employees must receive a monthly salary of no less than two times the minimum wage for full-time employment based upon a 40-hour workweek. The current minimum salary is $33,280, which will increase to $37,440 on July 1, 2014, and to $41,600 on July 1, 2016.

To make matters worse, the impact of the minimum wage increase on the Unemployment Insurance (UI) Fund will be significant. The minimum wage hike will cost employers a projected additional $500 million between 2015 and 2018 in UI funds. This data is from the EDD, and was released only after the enactment of AB 10. n

Harvest Meat Company would like to express special thanks to Kevin Davis for his hard work and dedication as CGA Chairman in 2013. Kevin has really done a great deal for the grocery industry.

He sets the standard high, giving all of us a great example to follow.

C A L I F OR N I A G R OC E R

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SEVERAL ENVIRONMENTAL LAWS AND REGULATIONS ENACTED IN 2013 MAY BENEFIT RETAILERS IN SOME RESPECTS, BUT OTHERS ARE LIKELY TO PLACE ADDITIONAL REGULATORY BURDENS ON ALREADY OVER-REGULATED RETAILERS AND SUPPLIERS. Safer Consumer Product Regulations The Department of Toxic Substance Control’s Safer Consumer Product Regulations became law on Oct. 1, 2013, and will be phased in over the next several years. The regulations contain detailed procedures to implement California’s Green Chemistry Initiative.

The regulations require product manufacturers to try to replace existing chemical ingredients with alternatives that are deemed safer for consumers and the environment. The regulations will require many companies to make major investments in compliance and changes to product design planning and supply chain management.

The regulations require DTSC to identify candidate chemicals of concern, and to develop a list of “Priority Products” containing those candidate chemicals.

Manufacturers of Priority Products will have to notify DTSC and analyze possible chemical alternatives for those products.

Those manufacturers may be required to reformulate their Priority Products, or face a possible California sales ban. Although the regulations impose the principal duty of compliance on the manufacturers, importers are secondarily liable.

The regulations require product manufacturers to try to replace existing chemical ingredients with alternatives that are deemed safer for consumers and the environment.

Changes to Proposition 65 On Oct. 5, 2013, Gov. Jerry Brown signed into law AB 227, which is aimed at reducing “bountyhunter” litigation against businesses who prepare and sell food or beverages for immediate consumption on or off their premises if the Prop. 65 listed chemical found in the food or beverage was not intentionally added, and was formed by the cooking or preparation of the food or beverage.

Assembly Bill 227 amends the citizen enforcement provision for these types of businesses that fail to provide warnings to consumers. The law now gives these businesses 14 days after notice to comply with the warning requirements before an enforcement action can be filed. It also sets the fine at a one-time payment of $500 (indexed for inflation) and further limits the number of violations that can be imposed from the same exposure in the same facility.

Although the changes to Prop. 65 fell far short of the broader reforms Gov. Brown proposed in the Spring Continued on p. 26

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DTSC has released an informational list of candidate chemicals of concern that are potentially subject to regulation. DTSC expects to propose the initial Priority Products list by April 1, 2014.

Of particular note to retailers, the regulations require the disclosure of market presence information, statewide sales volume data, and statewide sales by unit data without providing protection for that information as confidential. The regulations failed to provide trade secret protection to the regulated parties because the provisions that would have provided such protection were disapproved by the California Office of Administrative Law. DTSC has proposed revised regulations, but these provisions have not yet been approved. We will monitor the progress of these trade secret provisions, as they may be of particular importance to retailers.

C A L I F OR N I A G R OC E R

Moreover, if a manufacturer fails to make the required changes to its Priority Product, retailers may be required to stop ordering the Priority Product within 90 days of the product being listed by DTSC.

Manufacturers should now be gathering chemical information regarding their products, and comparing that information to the initial list of candidate chemicals. Once DTSC releases its list of Priority Products, retailers should take note of how many of those Priority Products are sold in their stores.

K N O W T HE L AW

Environmental Regulation Update

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K N O W T H E L AW

Continued from p. 25

of 2013, these changes represent the first significant limit on Prop. 65 plaintiffs and their counsel in many years.

Urban Development (“Brownfields”) For years, redevelopment agencies have used the Polanco Redevelopment Act to clean up contamination from properties in urban blighted areas. The Act allowed redevelopment agencies to require the parties responsible for the contamination to prepare and implement a clean-up plan or face significant damages for not agreeing to do so.

Urban redevelopment included grocery stores, and allowed stores to be built on previously cleaned up property without taking on any of the liabilities typically imposed on an owner or lessee of the former contaminated property.

Almost two years ago, Gov. Brown eliminated redevelopment agencies. As these agencies were dismantled, redevelopment of blighted properties was drastically reduced, and the Polanco Redevelopment Act was essentially shelved.

This year, the Legislature enacted and the Governor signed AB 440, which extends the authority of the Polanco Redevelopment Act to Cities and Counties, in addition to redevelopment agencies. The improving economy has increased development projects in many urban areas of California.

This year, the Legislature enacted and the Governor signed AB 440, which extends the authority of the Polanco Redevelopment Act to Cities and Counties, in addition to redevelopment agencies.

Grocers and other retailers interested in urban infill sites for new or expanding store locations should talk with their local building or planning departments about the use of the revised Polanco Redevelopment Act as a tool to ensure that any building site that may contain contamination is fully cleaned up by the responsible parties prior to building on that site.

New Developments in Stormwater Regulation In July of this year, a group of environmental organizations, including American Rivers, Conservation Law Foundation, and the Natural Resources Defense Council, petitioned the U.S. Environmental Protection Agency (USEPA) to impose stormwater permitting requirements under the NPDES program on facilities that are not currently covered by the Clean Water Act (CWA).

These sites would include malls, shopping centers, office buildings, commercial warehouses, schools, hospitals, and a variety of other businesses, along with associated yards and parking areas. USEPA has 90 days to act on the petitions; however, to date, USEPA has yet to respond.

The RDA serves as a “catch-all” provision, authorizing USEPA to designate other stormwater

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The petitions request that USEPA use an infrequently invoked provision, called the Residual Designation Authority (RDA), to impose stormwater permit requirements on currently unregulated, non-de minimis commercial, industrial, and institutional sites within impaired watersheds in several EPA Regions, including Region 9 that covers California.

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Continued on p. 28

Congratulations and Thanks to Kevin Davis

of Bristol Farms for your successful leadership which guided CGA to one of its best years ever!

From your friends at

Š Copyright 2013 Smart & Final Stores LLC

K N O W T H E L AW

Continued from p. 26

sources for regulation if those sources contribute to a violation of a water quality standard or are found to be significant contributors of pollutants to waters of the United States.

Utilizing this authority, it is feared that USEPA will broaden the scope of existing stormwater regulation by single facility, by category of discharge, or even by statewide or watershed-wide designations. If invoked, USEPA’s RDA in this context could have wide-reaching consequences for a variety of sectors currently not included within the types of activities to which stormwater requirements apply.

Businesses such as retail and distribution facilities related to the grocery industry should be concerned about this potential change, which would increase compliance costs and subject the industry to additional scrutiny and litigation. n Steven Goldberg and Nicole Granquist are attorneys in the Environmental Law Practice at Downey Brand, LLP, in Sacramento, California. They focus their practices in the area of environmental compliance and litigation specifically representing owners and operators of businesses. Steve and Nicole appreciate the assistance of Katharine Wagner, Leila Bruderer and Ashley Porter in the preparation of this article.

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Super A Foods congratulates Mary Kasper as incoming CGA Chair of the Board.

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Thank you for a great year to outgoing Chair Kevin Davis.

The Stater Bros. “Family” Salutes CGA 2012-2013 Outgoing Chairman

Kevin Davis Bristol Farms And Welcomes CGA 2013-2014 Incoming Chairman

Mary Kasper Fresh and Easy Neighborhood Markets

WASHIN GT O N R EP O RT

Lessons From the Government Shutdown ON SEPTEMBER 28, I WAS ASKED IN A PUBLIC FORUM WHAT I THOUGHT THE ODDS WERE OF A GOVERNMENT SHUTDOWN. I SAID, “NEXT TO ZERO” — WORDS I REPLAYED IN MY HEAD DURING THE 16-DAY GOVERNMENT SHUTDOWN THAT BEGAN ON OCTOBER 1.

There are plenty of lessons we can take away from every experience, good or bad, and this one is no exception. We have to look at what we can learn from this shutdown and the politics that surround this time through the eyes of voters, employers and community leaders — all roles you serve in your communities.

First, experience matters.

This is just as true in politics and government as it is in business. You learn from past successes and mistakes, and without the benefit of having these lessons to build on, you likely will not make the same sensible decisions as someone with experience.

This is a benefit of having a little gray hair. We need to make sure those we elect, or those we employ have the experience to do the job. This Congress is perhaps the least experienced we have ever employed.

If a candidate for Congress has not been a county commissioner, or a mayor, or a state representative, they probably have not spent the necessary time in the trenches learning the ropes to be a successful leader in Congress.

Second, decisions made in Washington may have far reaching implications and need to be treated as such.

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

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There are hundreds of examples of how the tentacles of Washington and its resulting decisions impact your business, your customers and your community, but let’s just look at the scope of impact the government shutdown had on the economy.

First, it caused uncertainty among customers, particularly customers relying on WIC and SNAP benefits whose shopping patterns can greatly impact your inventory.

Second, those companies in areas adjacent to national parks, or in areas with a large presence of federal government employees, or government contractors saw significant changes in shopping patterns and sales.

Third, those companies waiting on licenses to accept SNAP or WIC, or for labels for products or clarification

from FDA or USDA saw those actions put on hold and then backlogged.

Most importantly, the shutdown contributed to consumers’ heightened concerns toward the economy, which could have a longer term impact reducing consumer spending in advance of the holidays and impacting GDP. There are serious policy issues that need to be dealt with and should have been dealt with, but a government shutdown is not the best or most effective way to impact long-term change.

We need to make sure those we elect, or those we employ have the experience to do the job.

Finally, leaders have to lead.

We have all heard and repeated the trite expression, “If your friends jumped off a cliff, would you jump too?” Perhaps that was the most concerning part of this debate and some of the others in recent months.

WA S H I N G T O N R E P O R T

Looking to a There was not a chorus or even a quartet of folks on our 24-hour media outlets objecting and saying that this was not the way to govern. Just because you are not the majority leader, or minority leader of your party, or the CEO or CMO of your company does not mean that you do not possess an opinion and a responsibility to represent the folks who sent you to Washington, or in business terms — your customers.

We cannot afford to have our representatives of either party simply following the leader and not questioning the policies or tactics to try to make them better. Again, this is not something a responsible company would allow to happen in business and an effective representative government cannot allow it to happen either.

Let’s hope that our next test of governmental effectiveness is a non-event as we move to identify and elect experienced leaders, willing to lead, and willing to contemplate the impact of their decisions on business and consumers. n

bright

future!

Thank you outgoing chairman Kevin Davis and welcome to our chairman Mary Kasper

™

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ALL RISE. Distinction is always confined to the few. Jones Day congratulates Mary Kasper, General Counsel, Fresh & Easy Neighborhood Market Inc., on her new position as Chair of the Board of Directors of the California Grocers Association.

2400 lawyers throughout the world. www.jonesday.com

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Q&A

Q&A: Sacramento Mayor Kevin Johnson KEVIN JOHNSON WAS ELECTED AS THE 55TH MAYOR OF THE CITY OF SACRAMENTO IN NOVEMBER 2008 AND RE-ELECTED TO A SECOND TERM IN JUNE 2012. HE IS THE FIRST NATIVE SACRAMENTAN, AND THE FIRST AFRICAN AMERICAN TO BE ELECTED TO THE OFFICE. career as a professional Q. After athlete,a successful entrepreneur, and nonprofit executive, you chose public service as an elected official.

What inspired you to make this change?

to run for Mayor I was still A. When the CEOI decided of St. Hope Public Schools. It was a very exciting time for the organization. We were beginning to see students in our charter schools achieve at levels rarely seen in innercity communities. Also, our efforts to stimulate economic and cultural development in the Oak Park neighborhood were starting to take shape.

But I remember standing on Broadway, looking towards downtown, and seeing a city that hadn’t yet lived up to its potential. Year after year we had missed critical opportunities to move Sacramento forward. Residents wanted change.

Mayor Kevin Johnson

They wanted something different, something better, something bigger, and something bolder. So I did what my grandfather taught me to do long ago; I got off the sidelines and into the game.

I rolled up my sleeves and ran for Mayor, and with good fortune and with lots of hard work and support, we won the 2008 election.

Q.

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Sacramento has been declared the Farm-toFork Capital of America based on proximity and volume of local food production. Why do you feel Farm-to-Fork is important for both consumers and grocers?

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the Farm-to-Fork Capital of A. Sacramento America. Ouris region is within one of only five Mediterranean climates on the planet meaning our growing season is year-round, with fertile soils and a crop diversity that is unparalleled. e have the University of California, Davis, W in our region which ranks first in the world in agricultural study and 12th in environmental

sciences. We are home to more than 7,000 farms that grow products exported around the world and consumed locally. Those products total $1.66 billion in value. This is important to the consumer as locally grown food contributes to a healthier diet, reducing obesity and other diseases such as diabetes.

I rolled up my sleeves and ran for Mayor and with good fortune and with lots of hard work and support, we won the 2008 election.

Grocers have access to a bounty of food, which with an appropriate food system in place, will reduce the need for costly transportation, yield higher prices, and contribute to customer health and satisfaction.

Q. Local governments in California are under constant financial pressure from a shifting economy, need for increased services and managing state and federal mandates. What is your vision for growing the Sacramento economy to maintain financial stability?

day 1 in office, I recognized the need to A. From diversify the Sacramento economy, protecting us from downturns that affect industries such as construction, real estate and government jobs. I also firmly believe that education is the key to success for any community and have worked to strengthen our educational system and specific programs including a third grade reading initiative. y Greenwise initiative created a vision to M transform Sacramento into the greenest region in the country and a hub for clean technology and we have been making great strides in Continued on p. 36

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Q&A

Continued from p. 34

creating new jobs by financing private and public building retrofits, increasing investment in local clean energy technology and advanced manufacturing, increasing the electric vehicle adoption rates, and significantly stepping up efforts to support our local food and agricultural interests.

By diversifying our job opportunities, we also focus on providing jobs for disadvantaged communities. But it all comes down to education, so from elementary schools to vocational training to our universities, we want everyone to be ready to work in our new, diverse economy. many large cities in America, Sacramento Q. Like is challenged with maintaining vibrant neighborhoods for residents and retailers.

How is Sacramento working to invigorate its neighborhoods, especially downtown?

A: We are in the midst of a historic time for our city, our region, and our downtown. Our city has teamed up with the Sacramento Kings in a public-private partnership to build a state of the art entertainment and sports center in downtown Sacramento.

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he $1 billion project is the largest T redevelopment project in the city’s history. It will revitalize our downtown, creating 4,000 jobs and $7 billion in economic impact over the next 30 years. Sacramento will see 2 million new visitors to downtown each year. Set to open in 2016, the new arena will have an incredibly positive change on our downtown and our city.

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Sacramento is also well known for its vibrant neighborhoods. In order to ensure the vitality and growth of our neighborhoods, this year the city revamped its half-a-century old zoning code.

These changes are intended to preserve neighborhoods, create opportunities for an increase in infill development, promote adaptive reuse of historic buildings, grow neighborhoods in a way that provide a variety of

services, and streamline the permitting process to make it easier to do business in the city.

Q. Before becoming an elected official and as Mayor you have focused on at-risk youth and public education. What is the value of this focus for Sacramento and the broader business community?

A: I’ve always said you can’t have a great city without great schools. Even before I became Mayor, I was committed to serving our young people through my non-profit development organization St. HOPE, which is focused on revitalizing the Oak Park neighborhood through the arts, economic development, civic engagement, and public education.

Our city has teamed up with the Sacramento Kings in a public-private partnership to build a state of the art entertainment and sports center in downtown Sacramento.

St. HOPE Public Schools is now a full PreK12 public charter school system serving over 1,600 children that has some of the highest performing schools in the district and state.

This has become a catalyst for improvement in the schools surrounding St. HOPE as well as for the broader community.

Having a skilled local workforce and excellent public schools attracts businesses and human capital to a region. When you have a great education system, the whole community benefits. n

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C GA N EWS

SEC Tours Northgate Gonzalez Store The CGA Supplier Executive Council concluded its 2013 Store Tour Series at Northgate Gonzalez Markets in early November. The tour of Northgate’s Norwalk store was led by company President Oscar Gonzalez and staff. Attendees learned first-hand about the company’s operation and business philosophy. Earlier in the year, SEC members toured Costco Wholesale, Super King Markets and Nugget Market. The store tour series will resume in early 2014. n

(l to r) Oscar Gonzalez, Northgate Gonzalez Markets; Bruce Wyatt, Flowers Baking of California; Rueben Bouvet, Kellogg Company.

CGA Conducts L.A. Local Government Day On October 16, The California Grocers Association and member companies including Vons, Ralphs Grocery Co., Gelson’s Markets, Smart & Final, Northgate Gonzalez Markets, and Unified Grocers met with Los Angeles City Council members to discuss key industry issues as part of CGA’s City of Los Angeles Local Government Day.

most active legislatively speaking jurisdiction. With no formal issues to lobby, the group focused on developing and deepening relationships that will help the grocery industry and CGA become a resource for elected officials when discussing policy proposals that impact retail grocers and suppliers. n

The meetings were designed to help the grocery industry raise its profile in the state’s largest, and

Davis Educates Elected Officials Nearly 25 local elected officials heard first hand the history, challenges and opportunities of being a grocer in California by CGA Chair Kevin Davis, CEO, Bristol Farms.

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Davis provided his insight into what grocers look for when locating, or expanding a supermarket and how the highly competitive grocery industry views the California marketplace.

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His audience comprised mainly of city council members from municipalities around the state.

The event, “Breakfast with a Grocer,” was held at CGA’s headquarters in Sacramento, Calif., and in conjunction with the League of California Cities’ annual convention.

Davis said one of the greatest impediments to grocers opening new stores is the state’s cumbersome and

costly approval process. The Bristol Farms executive told attendees that it can sometimes take years to get projects approved and at significant costs.

He encouraged elected officials to streamline the approval process. n

CGA_Ad_2013.ai

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would like to extend a heartfelt

Thank You

to

Kevin Davis

for his role as Chairman of the Board for

California Grocers Association

Welcome

&

Mary Kasper We are proud to have such an esteemed member of the grocery industry be our new CGA leader.

A Game Changing Conference Game changers — those defining moments that not just alter the playing field, but literally reshape how business is executed — was the theme of the 114th annual convention of the California Grocers Association.

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Grocery retailers, wholesalers and suppliers from throughout California gathered in Palm Springs in late September for the 2013 CGA Strategic Conference.

This is the second year the conference was hosted at the Renaissance Palm Springs Hotel and Palm Springs Convention Center.

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evolving demographics, emerging technology and the economy.

“Our goal with this year’s theme was to present an educational program that would encourage attendees to think two moves ahead in their business decisions,” said Doug Scholz, Vice President, Business Development & Marketing. “We looked for presenters that had their fingers on the pulse of what’s next on the horizon.”

The Conference blended two and a half days of timely, informative educational programming, collaborative focused meetings and value-added networking opportunities that explored the key drivers that are reinventing the grocery industry and redefining the rules of business.

Presenters focused on three main game changers impacting the Golden State —

This year’s conference was planned to help attendees stay two steps ahead of their competition.

R E TA I L AT T E N D E E S

99 Cents Only Stores Albertsons, LLC Big Saver Foods, Inc. Bestway/Gardena Supermarkets Bristol Farms Cardenas Markets Costco Wholesale El Super (Bodega Latina Corp.)

Food 4 Less/Foods Co. Food 4 Less/Gongco

More than 850 face-to-face meetings were scheduled over a two-day period.

Informative Programming

Food 4 Less Stockton/Rancho San Miguel Gelson’s Markets

Perhaps the most dynamic demographic change impacting retail today is the rise of the next generation of shoppers — Millennials. General Session speaker Jason Dorsey, author and Millennial generation expert, captivated attendees with his analysis of this key game changer .

Holiday/Sav-Mor Foods

His data, first-hand stories and step-by-step action items provided valuable insight on how to drive communication and customer engagement and exposed generational truths about Millennials that is most often misunderstood.

Northgate Gonzalez

Continued on p. 44

Jensen’s Finest Foods Mar-Val Food Stores

Nutricion Fundamental, Inc. Numero Uno Market Raley’s Ralphs Grocery Company Rio Ranch Market Safeway Inc. Save Mart Supermarkets Smart & Final Stores Stater Bros. Markets Super A Foods Super King Markets Superior Grocers

Vallarta Supermarkets Whole Foods Markets

The Retailer Spotlight featured Steve Junqueiro, Save Mart Supermarkets.

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David Selinger discussed emerging technology trends.

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Times Supermarkets (HI)

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2 0 1 3 P A R T I C I P AT I N G SPONSORS

Continued from p. 43

Premium Suite Holders

Anheuser-Busch InBev Bimbo Bakeries USA C&S Wholesale Grocers Coca-Cola Refreshments Coca-Cola Refreshments ­— Minute Maid Hillshire Brands The Jel Sert Company Jelly Belly Candy Co.

Speakers addressed a full house at Monday’s General Session.

Kellogg Company Kraft Foods Group, Inc. MillerCoors Mondelez International Nestle Purina PetCare Nestle Waters North America

The impact of another game changer, California’s rapidly evolving demographic landscape, and in particular Hispanic shoppers, was explored by Juan Carlos Davila and Maria Monistere of Hispanic Market Center of Excellence at Nielsen.

Davila and Monistere provided research-based insights on how Hispanic shoppers are changing the retail landscape. (Their presentation is featured in this issue of California Grocer.)

To provide insight and understanding to the game changing power and influence of emerging technology, conference planners turned to two experts with considerable experience while working for Amazon, Google and Facebook.

PepsiCo Procter & Gamble Snyder’s-Lance, Inc. The Hershey Company Unified Grocers Unilever Opening Reception Sponsors

Kraft Foods Group E&J Gallo Winery After Hours Social Sponsor

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Heineken USA

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Keynote Luncheon

CGA President Ron Fong elaborates on key industry game changers.

California Table Grape Commission

Jason Dorsey wowed General Session attendees with his unique look at Millennials.

Executive Level Sponsors

California Shopping Cart Retrieval Corp.

Cans Get You Cooking Campaign Classic Wines of California The Clorox Company General Mills White Wave Foods

GGA Chair Kevin Davis (right), and CGA President Ron Fong shared the stage to discuss key California game changers.

Business Conference Suites featured 40-minute meetings with retailers.

Top trend spotter Marian Salzman opened the Conference.

David Selinger, CEO & Co-Founder of RichRelevance, and former Amazon Data Mining expert, explained how modern day shoppers, particularly digital natives such as Millennials, are utilizing technology in ways that are totally disrupting traditional shopping patterns.

Continued on p. 46

President Level Sponsors

California Lottery Del Monte Foods Fabri-Kal Farmer John Foods Ferrero USA Financial Supermarkets, Inc. Grocery Headquarters Hidden Villa Ranch The Nielsen Company NuCal Foods, Inc. Revionics, Inc. Supermarket News Networking Lounge

Coca-Cola Refreshments The Hershey Company Pre-Conference General Session

Fresh & Easy Neighborhood Market Registration Sponsor

MOM Brands

Alta Dena Certified Dairy

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Morning Workout

Craig Rosenblum, Willard Bishop Consulting, moderated a Share Group Discussion on e-commerce’s impact on retail.

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Share Group Sessions Sponsor

CGA Educational Foundation Director Level Sponsors

AlEn USA Alta Dena Certified Dairy, LLC Balance Innovations Beanitos Best Express Foods, Inc. Bunzl Distribution C&H Sugar ­— Domino Foods, Inc. ­— ASR Group Casa Martinez Salsas Cash Register Services, Inc. Clear Demand, Inc. Coffee Bean & Tea Leaf Corrigo Incorporated Crown Poly, Inc. Crunchies Food Company Day-Lee Foods, Inc. Early On F. Gavina & Sons, Inc. Freight Handlers Inc. Frito Lay

Continued from p. 45

Selinger also sat down with Gokul Rajaram, Head of Product Engineering for Square Inc., to discuss their innovations specific to grocery and how they can be utilized to enhance the shopping experience.

The Sunday Opening Reception provided great networking opportunities in a relaxed sports bar setting.

Marian Salzman, considered one of the top five trend spotters in the world, set the tone for this year’s event during Sunday afternoon’s Pre-Conference General Session by examining the trends shaping today’s major changes for news, brands, retailers, and cultures.

The Networking Lounge provided attendees a place (To learn more about to relax. her presentation, visit www.cagrocers.com/magazines and click on California Grocer, 2013, Issue 5).

This year’s Retailer Spotlight featured Modesto-based Save Mart Supermarkets.

Attendees at this supplier-only meeting heard Save Mart President and COO Steve Junqueiro unveil the company’s new business model for its three banner stores — Save Mart, Lucky and FoodMaxx.

Gizmo Beverages Golden Gate Paper Company, Inc. Grace Foods (USA) Inc. Hansen’s Natural

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Happy Family Brands (Nurture Inc dba Happy Baby)

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Increasing consumer loyalty was the topic of this Share Group Discussion moderated by Amber Williams, Glass Agency (foreground).

The Hartz Mountain Co. Hispanic Specialty Brands LLC (Casa Mexicana) Idahoan Foods International Paper Itasca Retail

Mike Stigers (left), SUPERVALU Wholesale with Eric Pearlman C&S Wholesale Grocers.

(l to r) Mike Stigers, SUPERVALU Wholesale; Dave Jones, Bob Brown Kellogg Inc.

The Jel Sert Company Joy Cone Co. Karl Strauss Brewing Company Kayem Foods KeHE Distributors Living Essentials LOC Software Lone Peak Labeling Systems

(l to r) George and Debbie Frahm, Stater Bros. Markets, with Ron Fong, CGA.

(l to r) Joe Falvey, Unified Grocers, Inc., with Varetta and Jonathan Mayes, Safeway Inc.

Other educational programming included Share Group Discussions. Designed to encourage collaborative discussion in a unique and engaging environment, the share groups focused on e-commerce’s impact on retail, five ways of growing consumer loyalty and legislating healthy eating choices, and were moderated by an industry expert who lent their expertise to the conversation.

Face-to-Face Pre-Scheduled Meetings

C & H Sugar Co. meets with Cardenas Markets during a Retailer Review Session.

“The pre-scheduled meetings are the meat of the conference,” said CGA President Ron Fong. “Our conference is unique in that both retailer and

NRG EV Services, LLC dba eVgo PBI Market Equipment, Inc. Pick Up Propane Prudential Overall Supply rePLANET, LLC Roplast Industries Inc. Sabert Corporation Sioux Honey Association Sugar Bowl Bakery Sun Products Tony’s Chachere’s Creole Foods TruGrocer Federal Credit Union WorldPay US, Inc.

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Continued on p. 48

NexCycle

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Retailer Review Sessions featured 20-minute meetings between retailers and suppliers.

Anchoring the conference were the more than 850 pre-scheduled meetings between grocery retailers and suppliers. Meetings were arranged in 20and 40-minute blocks and ran continually throughout the day following the educational programming.

Monster Energy Company

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Continued from p. 47

The Illuminators Special Event made a huge splash with attendees!

Thank you Illuminators for the great breakfasts and lunch!

Kevin Jones and MaryAnn Elrod, Costco Wholesale.

Illuminator Headlite Ed Hepler, The Hain-Celestial Group.

Jim Wallace (right) Albertsons, shares information with exhibitor.

As it has for more than 80 years, The Illuminators played a major role in ensuring the success of this year’s conference.

(l to r) Bob Richardson, The Clorox Co., and Mike Read, WinCo Foods.

Mark Johnson, Unified Grocers, Inc. and Alex Cabrera, Northgate Gonzalez Markets

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supplier know prior to the event who they will be meeting with. It makes for a very efficient business conference.”

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Rounding out the conference experience were afterhour social events allowing attendees additional networking opportunities in a more relaxed, informal setting.

“Every facet of the conference was designed with networking in mind,” Fong said. “Our goal was to produce a conference that brought the California grocery industry together and provide real value for those attending. Our post-survey results indicate we did just that.”

“Once again, The Illuminators knocked it out of the park with their continued support of our conference,” Fong said. Along with hosting a golf tournament to benefit The Illuminators Scholarship Foundation, the supplier group provided meals and social events to enhance the conference experience.

Mark your calendar for the 2014 CGA Strategic Conference, Sept. 21-23, at the Renaissance Palm Springs Hotel. Sponsorship and exhibit information will be available in early 2014. Plan now to attend! n

Mark your Calendar

2014 CGA STRATEGIC CONFERENCE September 21 ­— September 23, 2014

Pillsbury extends a warm welcome to incoming CGA Chair Mary Kasper.

We look forward to working with you!

Our thanks to Chairman Kevin Davis for his leadership and vision over the past year.

Pillsbury Winthrop Shaw Pittman LLP 2600 Capitol Avenue | Sacramento, CA 95816-5930 | +1.916.329.4700 Abu Dhabi · Houston · London · Los Angeles · Nashville Operations · New York · Northern Virginia · Sacramento San Diego · San Diego North County · San Francisco · Shanghai · Silicon Valley · Tokyo · Washington, DC

EMERGING TECHNOLOGIES

LEN L EW IS

EMERGING TECHNOLOGIES

of the

HIGHLY EMPOWERED

Super Consumer uccessful adoption of emerging technology depends on adapting it to the needs of a new generation of “super consumers” — not the other way around.

This was the message brought to the CGA Strategic Conference in Palm Springs by David Selinger, CEO and Co-founder of RichRelevance, a San Francisco-based provider of data analytics solutions, and Gokul Rajaram, Head of Project Engineering for Square Inc., a San Francisco developer of mobile wallet applications.

Continued on p. 52

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“It’s enabled retailers to put on blinders when it comes to e-commerce, but the emergence of Amazon Fresh over the next 18 months will be a rude awakening,” he said, emphasizing that the online/delivery service could go national very quickly.

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“It will take a big shift in mindset to understand how digital will transform everything we do on a day-to-day basis in grocery,” Selinger said, noting that many retailers are still haunted by the failure of e-commerce retailer Webvan so many years ago.

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Continued from p. 51

“They have a massive supply chain and loyalty program that is unparalleled in terms of engaging consumers,” Selinger added. “Moreover, consumers are shelling out $80 per year to participate in Amazon Prime. They figured out a way to have consumers pay for their loyalty program.”

Attempting to copy this strategy is problematic.

“Amazon has some of the best pick-and-pack distribution centers ever built for managing inventory,” he said. “Their efficiency is about 50 percent higher than anything that’s been seen before in the industry.”

Four Amazon Fresh Direct distribution centers will be in California.

“Brick and mortar retailers should develop programs tailored to their own values,” Selinger said.

“Copying Amazon is a good starting place for tactics, but a bad idea in terms of consumer strategy,” he said.

“When designing a customer journey, always start with who your customers are.”

Amazon’s potential, like many things in the grocery business, is the result of a change in the way consumers shop. Overall, technology provides a platform for retailers to engage customers in all demographic groups. The question, Selinger asks, is how do you engage them?

“You have to look at what people are doing with technology,” he said. “One of the key lessons I learned at Amazon is not to make consumers think too much about change.

“You must integrate technology into a work flow that consumers are already comfortable with and make those steps easier, faster and cheaper in order to get mass adoption,” he added.

But, he said, introducing something radically new and trying to get them to change their behavior to accommodate a particular business process will result in very low adoption rates.

One example of successful integration of technology is the mobile app introduced by the national drug chain Walgreens.

“Their main interaction with consumers is refilling prescriptions,” he said. “This (app) made it quicker and adoption rates skyrocketed across all demographics.

Speakers at this year’s CGA Strategic Conference touched on a number of issues that are likely to have both a top and bottom line effect on retailers in the near future. These include: n Shifting n The

consumer demand

rise of the highly empowered “Super Consumer”

n Updating

E-commerce platforms and loyalty programs

strong customer experiences before, during and after the shopping trip

n Development

of omni-channel strategies

n Using

technology to complement customer service

n Focus

on customer analytics

n Adapting

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n Providing

behavior

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n Focusing

fast and easy technology to consumer on opportunities in social media

Selinger said he’s a big believer in making something fast and easy.

“When it comes to regional grocers,” he said, “service and location are key differentiators of their business model. Technology can be an amazing enabler — the confluence of big data and mobile. If you can leverage that to bring more relevant messages to consumers, technology becomes even more important.”

But it’s also important that retailers look at loyalty and promotional programs that go beyond digital price promotions and couponing.

“Those are so yesterday,” he said. “It has been an important part of the business but won’t define loyalty programs in the future. You must look at your Continued on p. 54

EMERGING TECHNOLOGIES

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Continued from p. 52

enabling them to see what other people are buying, while simultaneously linking to Target’s Red card for redemptions,” he said. “It’s a 360-degree view of what my friends are doing and what offers they have in their carts. It’s a very compelling experience and a portal for me to interact with Target.”

Another important issue is who controls a company’s technology.

“There’s a change occurring,” according to Selinger.

“Because power is shifting to the consumer, budgets for technology are increasingly based on the needs of marketing.”

He calls it the ascension of the “superconsumer.”

“She’s in charge and always connected,” he explained.

“She is more powerful then we’ve ever experienced, and when she walks into a store she’s more educated about products then the associates.”

This means that something like Free Standing Inserts, which the industry relied on for many years, is being replaced by new media content.

ability to leverage all data in order to meet the needs of your customers.

“Maybe 10 to 20 percent of it will be for digital couponing or promotions. But the biggest part of it will be solving customer problems,” said Selinger.

“It’s not about saving five cents on chicken strips this week. People want to know, for example, how to feed their kids in a limited amount of time, on a budget and still give them something healthy.”

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“Loyalty programs need to expand boundaries. They should not just be delivery mechanisms for coupons.

The definition of value is far more comprehensive.

A price-only program is a one-dimensional way of looking at loyalty,” he added.

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“For years, Tesco’s Clubcard was the model for retail loyalty programs. But Tesco is really an amazing model of what loyalty (programs) should have looked like ten years ago. Unfortunately, it’s stayed exactly the same.”

Selinger believes Target’s six-month old Cartwheel program is now a model for the industry.

“It links people to their friends on Facebook,

“We have to understand where the consumer is spending time,” he said. “It’s on Facebook, Pinterest and Epicurious, and on mobile devices. The industry has to figure out a way to do something relevant there,” he said.

“There’s a change occurring,” according to Selinger. “Because power is shifting to the consumer, budgets for technolog y are increasingly based on the needs of marketing.”

“As her power increases, our enterprise centers must shift away from cost management — which is what technology and IT are usually about — towards consumer knowledge and services,” he said. “That’s what marketing represents. Therefore, we have to move budget power centers toward marketing and choose technology more for its capabilities rather than what it costs.”

But is too much decision-making in the hands of IT departments?

“It should be a partnership,” he suggested.

“Companies like Target, Neiman Marcus and

EMERGING TECHNOLOGIES

CONT INUED

Nordstrom do a great job of hiring marketing people who are also technology savvy.”

Moreover, CEOs have yet to realize that it’s not always necessary to allocate big chunks of money for new tech investment.

“Consumers want to understand what a store offers so they can do their research before they shop,” he said. “And a small percentage want to place pre-orders and pick them up at the store. As such, retailers have to publish their product catalog on their websites.

“Less than one percent of groceries are now ordered online,” he said. “But it’s projected to grow to 10 percent over the next decade.”

“Additionally, make sure items and prices on the website are consistent with what’s in the store,” he said. “The goal is to make sure there is no distinction between the online and in-store parts of the shopping experience.”

“The right way is to learn how to deploy capital incrementally,” said Selinger. “This means that the first investments in technology should be relatively small with a short ROI. CEOs must demand that marketing and tech teams invest intelligently.”

Square’s Gokul Rajaram firmly believes this means that retailers must use technology to adapt to consumer behavior before, during and after the shopping trip.

This kind of omni-channel strategy also includes people and eliminating communication problems between the online and in-store teams, he added.

“Less than one percent of groceries are now ordered online,” he said. “But it’s projected to grow to 10 percent over the next decade.

“Retailers will be setting up separate sections in stores for online orders, rather than using outside fulfillment centers,” Rajaram said.

“You don’t want to start out by changing an entire operation — just change enough to go after the business,” he added.

But even with in-store pickup, there is some interaction with service professionals in the store.

“Make sure it’s not a completely impersonal experience,” Rajaram said. “For instance, if customers forgot to order a couple of items online, make it easy for them to add a couple of items when they get to the store.”

“The best retailers will use technology to enhance the shopping experience and remove the painful parts like waiting in the checkout line,” he said, noting that mobile checkouts in different areas of the store could dramatically change the entire checkout process. n

C A L I F OR N I A G R OC E R

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 United States 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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Congratulations, Mary, on being named Chair of the Board!

Everyone here is incredibly proud of your achievement, and all that you do on behalf of the industry.

With love, Your Fresh & Easy Family

Š2013 Fresh & Easy Neighborhood Market Inc.

MARY KA SPER

LEN L EW IS

Mary Kasper 2014 CGA Chair

For Mary Kasper, the grocery industry remains a fascinating and complex combination of technology, emotion and communication — both on the part of retailers and their customers.

However, Kasper, Senior Vice President, General Counsel and Secretary of the new Fresh & Easy, and incoming CGA Chair for 2014, firmly believes that the California Grocers Association will continue to play a pivotal role in melding these elements and taking the industry to new heights.

“I want to build on the priorities of our outgoing Chair Kevin Davis who did such a wonderful job of guiding our association through some very challenging issues,” Kasper says.

“The industry in California is very exciting and constantly changing,” she said recently. “There’s no reason to believe that won’t continue.”

Kasper points to an improving economy as one key indicator.

“This will foster an even more competitive environment fueled by the development of alternative formats by independents and chains, like Fresh & Easy, that offer a differentiated shopping experience,” she explains.

MARY KA SPER

“We have to look at all the businesses that sell food, what the definition of a grocery store is and where our customers are buying products these days.

It’s possible we should be looking at formats and business models outside of grocery retailing. It’s all about serving customers and providing products they want in a convenient format. Ultimately, that will drive the success of our business.”

But whatever the business strategy, technology will be a core issue.

“I think the biggest change has been in the digital space — ­ specifically social media,” she says. “It’s given us new ways to communicate with our customers, employees and suppliers.”

The question is no longer whether retailers should be involved in social media, but how best to utilize it, she noted.

“Social media alone is providing us with instantaneous communication with customers wherever they are.”

“People will always have a very strong emotional connection to stores in their neighborhoods,” she says. “Grocers are the ones who provide food for their families and are there for every special occasion in their lives. [Shopping] remains a very personal experience even in this modern, tech savvy world.”

As to the California marketplace in general, Kasper sees continuing improvement in the economy.

“We are a state of incredible ethnic and cultural diversity, and all the new players here have the opportunity to be successful,” she says.

Despite the competitive nature of the industry, Kasper says there are issues around doing business in California that unite all CGA members.

“As everyone knows, it’s a very challenging regulatory environment — ­ locally and on the state level, and CGA plays a critical role in shaping the future,” she adds.

Which issues are on the retail radar this year?

“We continue to be challenged by issues like plastic and paper bags ­— specifically the absence of a statewide bill,” Kasper says. “The result has Continued on p. 59

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And, she says, the grocery industry is only beginning to tap into its potential.

But there are certain things that technology will not change, according to Kasper.

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“Technology evolves so quickly that everyone is working hard to understand how it can be used in their own particular businesses,” Kasper says. “Social media alone is providing us with instantaneous communication with customers wherever they are. It’s a way we can promote products externally and within our stores.”

“We’re seeing a lot of opportunities to provide product information to customers in a more helpful way,” she says. “This is going to enable them to have an easier and more convenient shopping trip.

It’s another way to have real time, meaningful conversations with customers about their experiences and what they’d like to see.”

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MARY KA SPER

CONT INUED

Continued from p. 57

been a patchwork of local ordinances. This makes it difficult for member companies when they are forced to change operations depending on where they are located.”

Kasper also cited the GMO issue, which many in the industry believe will come to a head this year one way or another.

“We saw some action last year at the state and federal levels,” Kasper says. “Local governments are beginning to examine this issue as well.”

CGA’s new chair says the Association is watching the issue closely and while the industry hopes for a federal resolution, she fears legislation that will create a patchwork of local solutions.

Dealing effectively with issues like this is why CGA has become known in Sacramento and elsewhere as a premier trade association,” Kasper says.

“We want our industry to be at the top of everyone’s list,” she says. “But again, we’re only as strong as the participation of our member companies.”

“We’re lucky to have such an experienced management team that provides vision and insights on government and educational issues as well as business strategies,” she says.

However, Kasper emphasized that an association is only as strong as its members.

As such, one of her priorities for 2014 will be encouraging members to get more involved at the grassroots level. One route is the continued development of the highly successful store tours program.

“These visits help our legislators to better understand the business and how it’s really impacted by the bills that come from Sacramento,” she says. “These tours can’t be done too often in my opinion. Conversely, we’ve worked very hard on CGA’s Grocers Day at the Capitol and I would encourage members to bring their teams out to meet with state legislators.”

Kasper says face-to-face meetings are “the best way to explain the business and articulate the challenges taking place and how important our retailers are in the daily lives of their communities.”

Regarding Kasper’s nomination, CGA President and CEO Ron Fong said he looks forward to working with her in the coming year.

“Mary is a fantastic asset to the Association,” Fong said. “She has excellent leadership qualities and a strong understanding of the industry, particularly in the area of government relations.”

“I think we can develop more ways to encourage people outside our industry to consider the food industry as a vibrant career move,” she says. “We have a wide range of members with successful business models. I know from my experience as

C A L I F OR N I A G R OC E R

According to the Fresh & Easy executive, CGA is the “premier voice in our industry, but we’re only effective when our members join with association staff in areas like government relations, strategic conferences and our educational plank.

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Continued on p. 60

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Continued from p. 59

Basically, Kasper says, there’s something for everyone.

Kasper says she’s optimistic that many member companies will continue that tradition and find some great people for their organizations perhaps by instituting more mentoring and internship programs.

“But it’s up to each of us to reach out to individuals who may be coming out of school to seriously consider a career in this industry,” she adds.

Finally, Kasper is eager to see retail and supplier companies recognized even more for their generosity in the communities they serve.

Lauding the superb work of the CGA Educational Foundation, Kasper believes there are additional opportunities for outreach to colleges and high schools to talk about what the industry has to offer.

CGA does a fantastic job in promoting the outstanding work of our members and the role they play in supporting their communities. They can sometimes be too modest and it’s time to shout out about how much work they really do.” n

a lawyer that this industry offers interesting and challenging work.”

“We want our industry to be at the top of everyone’s list,” she says. “But again, we’re only as strong as the participation of our member companies.

“One of the universal truths is that we are a peoplerelated industry,” she adds. “Individuals in this business are very welcoming to newcomers and eager to help them grow.”

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 United States 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.

MY HEARTIEST PERSONAL CONGRATULATIONS TO MARY KASPER’S LATEST AND GREATEST ACHIEVEMENT! RONALD P. SLATES, PROFESSIONAL CORPORATION Commercial Collection, Creditors’ Rights, Business and Real Estate Lawyers Aggressive and effective Commercial Collections and Enforcement of Judgments

Ronald P. Slates Attorney at Law

We congr atulate Mary K asper, as she becomes the Chair of the Board of the California Grocers Association.

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C A L I F OR N I A G R OC E R

(213) 624-1515 • Fax (213 624-7536 523 W. 6th Street, Suite 502 • Los Angeles, CA 90014-1225

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Attorneys at Law

E-mail: rslates2@rslateslaw.com www.rslateslaw.com www.ronslateslaw.com

A Nevada-based fir m

400 S. Rampart Blvd, Suite 400, Las Vegas, NV 89145 702.362.7800 | klnevada.com

The attorneys of

Sheppard, Mullin, Richter & Hampton LLP congratulate

Beijing Brussels Century City Chicago Del Mar London Los Angeles New York Orange County Palo Alto San Diego San Francisco Seoul Shanghai Washington, D.C.

www.sheppardmullin.com

Mary Kasper of Fresh & Easy

on becoming the next Chair of the California Grocer’s Association

C A L I F O R N I A H I S PA N I C S

M ARI A M ONISTE R E

California Hispanics:

The Future Is

NOW… We have all witnessed the demographic shift across the nation, 17 percent of the nation’s population is Hispanic, and by 2060, that will grow to 30 percent. In California however, that future is here and now as 40 percent of all Californians are Hispanic.

This is a significant development since Latino children already constitute a majority of the state’s school children and a majority of all children (52%).

The California white population, like the U.S., is graying and as the white baby boomers move into retirement, Latinos will play a more prominent role in the labor force. Today, 40 percent of the state’s workforce is Hispanic and this number can only continue to grow in the future.

Though this demographic revolution is paramount, the story is incomplete if we solely focus on the number of people and the growth. Successfully reaching Hispanics is more than acknowledging that growth equals opportunity, it’s about capturing and recognizing the uniqueness of the Latino consumer.

They are young, more and more U.S. born, ambicultural, avid technology users and represent a significant portion of the state’s millennial population.

Continued on p. 64

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Continued from p. 62

American-made and Ambicultural Two-thirds of California Latinos were born in the U.S., and compared to 10 years ago, are more bilingual today. A decade ago, 43 percent of California Hispanics ages 2-plus spoke either only English or mostly English, and a mere 21 percent were speaking both English and Spanish equally.

Today, that landscape has changed. Thirty five percent of California Hispanics are choosing to speak both English and Spanish, a 70 percent jump from a decade ago, this represents a shift to the middle, a desire to be ambicultural — an ability and willingness to function competently between two cultures.

They are choosing to be both American and Latino, navigating seamlessly in between mainstream and their Latino culture.

This is also true of key Hispanic sub-segments like the Latina and the Hispanic Millennial, ages 1834. The Latina, which currently represents 17% of all females, will account for 30 percent of all U.S. females by 2060. According to an identity project by Ethnifacts in 2013, Latinas strive to be 200 percent, 100 percent American and 100 percent Latina. They are also a very young group, 74 percent of them are under the age of 45. They represent 50 percent

of Hispanics in California and 50 percent of the Hispanic millennial population in the state.

Hispanic Millennials’ shift to the middle is most noticeable in their increase of Spanish speaking in the last 10 years. Eighty-two percent more are speaking both Spanish and English (40%). This is certainly contrary to what most expected of the Hispanic youth.

The expectations were that they would fully adopt the American culture, slowly moving away from their heritage, but that has not been the case.

As the grocery industry considers how to reach and engage them, recognizing these nuances is essential to being successful.

This cultural duality is also reflected by their television viewing preferences, as Hispanics are watching both English and Spanish TV and California is not the exception. Fifty-one percent of viewing is spent on Spanish TV while 49 percent is going to English TV (Spanish broadcast driving viewing to Spanish TV, while English Cable driving viewers to English TV).

Though they are watching less total television, Hispanic Millennials’s viewing patterns are quite similar. Their preferences include English Cable programming (36%), but 46 percent of their time spent watching TV is spent on Spanish TV, most of it tuned to Spanish broadcast. And when they are tuning into Spanish broadcast, two-thirds of this is spent watching Novelas.

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As the grocery industry considers how to reach and engage them, recognizing these nuances is essential to being successful. Spanish television delivers a large Hispanic, bilingual and young audience, but Latinos are also embracing their American culture with similar importance.

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In what language and platform do you try to reach them and how do you incorporate culture? Do not assume that because they are U.S. born they will assimilate and leave their Latino culture behind.

On the contrary, recognize that they are taking the best of both cultures and creating their own ambicultural world.

Continued on p. 66

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Continued from p. 64

shopping at significant rates. Across the U.S., they are more likely to use these than non- Hispanics.

In California, a greater percent of Latinos in San Francisco, Sacramento, San Diego and Fresno are using their banking apps compared to their nonHispanic counterparts in these markets.

We cannot discuss technology adoption without highlighting the high usage by Hispanic Millennials.

While Hispanics in general are highly active with smartphones and mobile media usage, Millennials lead all categories with impressive numbers.

Across the U.S., 84 percent own a smartphone and 74 percent are active on social media, via their smartphone. Smartphones have truly become indispensable for this young group. As with total Hispanics, their heavy use of social media reflects their desire to stay connected and to share their opinions about the things they care for in life.

Enthusiastic Technology Adopters Latinos love their technology, and their smartphone is atop their list. Seventy two percent of Hispanics ages 13-plus own a smartphone, 9 percent higher than nonHispanics (66%). California Latinos are no different in this respect. Hispanics in markets like Fresno (74%) and Sacramento (72%) own smartphones at similar or higher rates, while LA (69%), San Diego (69%) and San Francisco (70%) are very close to the national penetration.

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Hispanic Millennials, almost 1 in 2

Social by nature, they are using their mobile devices as extensions of their desire to communicate and connect. They are heavy texters and their smartphones have become their primary link to social media, which they use to communicate as they share music, videos, and other experiences with friends and family in the U.S. and abroad.

Hispanics are young and younger in California.

Across the U.S., 21 percent of all Millennials are Hispanic, but in California, they make up 48 percent of total Millennials. One in two Millennials, ages 1834 is Latino. This is a fact that cannot be ignored, and neither can their impact on the state. Of all Hispanic employment (38%), they represent 41 percent and almost 60 percent of them are fully employed in the state. Non-Hispanic millennials only make up 27 percent of total non-Hispanic labor force.

But, it’s not just their engagement with social networks, or avid use of apps that is impressive.

Hispanics, including California Hispanics, are using commerce apps such as mobile banking and mobile

What is happening? The white baby boomer population is now aging into retirement and will likely retire in the next decades and as this happens, the larger percent of working age populations will be

Like U.S. Hispanics, California Latinos are heavily engaged with their mobile media suite.

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As grocers, suppliers and wholesalers design their media plan to engage these young consumers, they must consider that these platforms offer a grand opportunity to connect with both total Hispanics and Millennials. Leveraging these platforms gives the grocery industry an opportunity to start the conversation with them, but messaging is still key, and recognizing that their cultural duality is a behavior they choose is fundamental. Remember, they like to share their experiences and opinions and do it frequently, which makes them more valuable as one influences the many, and at times, one tweet is all it takes.

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Hispanic. These younger consumers will maintain the potential for growth of the labor force and economy in California.

So as these young Hispanic millennial consumers become the future driver of the California economy, their importance to the bottom line is tremendous.

Because they are young, they have a higher lifetime value and therefore reaching them should be seen as a long term investment.

They are just now entering their peek spending years and as they do, are forming their own brand loyalties.

To connect to these young Hispanics though, retailers must capture and recognize what makes them a unique consumer.

The Valuable Hispanic Consumer Across the nation, marketers and brands are looking for ways to tap into this expanded Hispanic market; in California, where this new American reality has fully arrived, it is only natural to have already begun this realization. Considering how Hispanics have evolved, this is very profitable.

Hispanics are young, and continue to scale upwards in income, making them an even more valuable consumer. Their middle class group has experienced growth across the U.S. and in the state. And for those Hispanic homes making more than $75,000 annually, the U.S. census reported a significant 31 percent rise.

The Latina has evolved as well, as we see a shift from care-taker to bread winner, but they are still the primary shopper at 86 percent. Their shopping carts include preferred perishable foods, foods that need to be prepared, and personal care and beauty products.

In the state, one-third of all grocery dollars come from Hispanic consumers.

Mass merchandiser channels also saw an increase of 8 percent in spending from Hispanic homes in the state. Their basket looked a little different as it included food categories like breakfast food, fresh produce, and cheese, among others‌

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Their shopping carts consist of cereals, prepared foods, juiced drinks and water — these are the categories that contribute the highest dollar percent across these retailers, but other categories such as snacks and deodorants have grown in the last year.

Drug channels and mass merchandiser outlets have seen increased spending in the last year; the drug channels experienced a 27 percent growth in spending from Hispanics. This growth was fueled by an increase in frequency and larger rings per basket, these baskets include health and beauty care products and other non-food products.

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In the state, one-third of all grocery dollars come from Hispanic consumers.

And though the grocery channel continues to be the most important channel for Hispanics, there is opportunity across other outlets.

Continued on p. 68

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Continued from p. 67

Final Thoughts Growth equals opportunity and this could not be truer with the Hispanic market in California.

As a powerful block of consumers, it’s important for brands to recognize the diversity that exists within this community. Taping into the Hispanic market requires brands to identify which Hispanic subsegment is the most profitable and valuable for them and for this, segmentation is needed.

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Congratulations

C A L I F OR N I A G R OC E R

To successfully reach the Hispanic consumer, it is important to capture and recognize their nuances and understand their differences, but whether it’s the Latina consumer, Hispanic millennial or an older Hispanic, their cultural duality and avid use of technology are two underlying characteristics that define and influence them.

This is important as you try to connect with them.

How does their desire to stay connected to their culture affect their choice of brands? As you try to engage them, are you creating relevant cultural messages that let them know that you recognize their cultural duality? And are you leveraging their digital savvy and their social nature? Are you recognizing the impact the Latina has as the primary shopper, while at the same time recognizing that her role has evolved?

Latinos are also social shoppers, relying heavily on smartphones and social media. Successfully reaching this group is about building an engagement plan which leverages peer to peer influence before, during, and after the shopping experience, while keeping a close eye on their shopping cart. n

Congratulations to incoming CGA Chair Mary Kasper.

And to outgoing CGA Chair Kevin Davis of Bristol Farms, thank you for your service.

|

HMS | 3001 Douglas Blvd., Suite 330| Roseville, CA 95661| 916.787.2020 | www.HMSinc.net

C A L I F OR N I A G R OC E R

Creating Value for Companies in the Midst of Change

69

FOOD DESERTS

DAN I EL TE LLALIAN

FOOD DESERTS

Fund Brings Fresh Capital to Grocers

FIGHTING

FOOD DESERTS California FreshWorks is the nation’s largest food fund, financing expanded grocery offerings to the underserved.

Supermarkets are on the front lines in the movement to eliminate so-called food deserts. Now grocers have new allies in the fight — in the form of philanthropy and finance.

Continued on p. 72

|

“The FreshWorks Fund has been an invaluable financing tool for our company as we continue to expand our operations,” says Northgate Gonzalez COO Oscar Gonzalez. “It’s a welcome addition to traditional financing options.”

C A L I F OR N I A G R OC E R

The California FreshWorks Fund is a $272 million investment fund created to finance new and upgraded grocery stores and other forms of healthy food retail and distribution in California’s underserved communities. The fund, created as a market-oriented response to unequal food access across the state, is wrapping up its second year of operations to rave reviews.

71

FOOD DESERTS

C O N TI NU E D

Continued from p. 71

The Gonzalez family, which operates 37 stores in Southern California, has also enjoyed the public relations glow associated with the FreshWorks Fund.

In 2012, First Lady Michelle Obama visited a vacant Inglewood building with Oscar and lauded the type of investments being made by FreshWorks into quality grocers like Northgate Gonzalez. Today that site is a thriving new supermarket.

The Fund works off a simple premise: Fresh food grocers, especially private independents who may lack vast equity reserves or deep banking relationships, are willing to expand further into underserved markets but lack sufficient capital access to do so. Enter the FreshWorks Fund, an alternative lender focused on bringing capital to these entrepreneurs and improving access to healthy food in the process.

The FreshWorks Fund offers a variety of debt financing tools to food retailers and distributors who bring healthy food to neighborhoods, including traditional business and real estate loans, construction lines of credit, equipment loans, and working capital. Loans range from $250,000 to $8.75 million and are available at competitive rates. The

Fund is also active in public-private New Markets Tax Credit financings, which can offer an attractive below-market cost of capital for larger transactions in low-income areas.

An innovation within the “impact investing” field, and initially greeted with some skepticism, the Fund has successfully been financing new supermarkets and upgrades to existing grocer operations. As of the end of 2012, the Fund reported over $30 million of capital deployed into 12 transactions. While this calendar year is not complete, it was estimated that the year-end pipeline will exceed $50 million.

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C A L I F OR N I A G R OC E R

The Fund’s lead investor and primary proponent is The California Endowment, a statewide health foundation focused on building healthy communities. From a philanthropic perspective, the Endowment has invested in local grocers to increase access to healthy food as a means to improve the health of all Californians.

72

“It is inexcusable that it is easier to find liquor and cigarettes in many communities than it is to find a bottle of water and an apple,” says Dr. Robert Ross, CEO of the foundation.

The Fund’s design and ongoing support are the product of a broad coalition of industry, nonprofit, and government partners that have come together on the issue of food access.

FOOD DESERTS

CONT INUED

Since its conceptualization, the California Grocers Association has been bringing an industry perspective alongside partners that include wholesale distributor Unified Grocers and industry consultant Emerging Markets, Inc. Similar food financing funds exist in other states like Pennsylvania, New York, and Michigan. But California’s is the largest and, by most metrics, the most successful.

The FreshWorks Fund is not a commercial bank and deploys only private investment capital. It offers competitive credit, regardless of deal size, without any expectation of depository relationships or selling additional banking products.

The fund is capitalized by a variety of investors including banks, foundations, social investors, individuals, and other partners. It is administered

by NCB Capital Impact, a nonprofit community development financial institution.

Given the Fund’s roots in philanthropy alongside finance, FreshWorks is also making limited grants to grocers, nonprofits and entrepreneurs in the food arena.

“It is inexcusable that it is easier to find liquor and cigarettes in many communities than it is to find a bottle of water and an apple,” says Dr. Robert Ross, CEO of the foundation.

For example, workforce development grants have been made to assist grocers in outreach, hiring, and training activities for new markets. Grants have also been made to capitalize innovative food retail models like mobile markets, cooperative ownerships, and corner store conversions throughout the state.

The California FreshWorks Fund has offices in Los Angeles and Oakland. To learn more, please contact the Fund’s Business Development Officer Veronica Saldana at vsaldana@emergingmarkets.us. n Daniel Tellalian is a Principal of Emerging Markets, Inc., a supermarket consulting firm focused on underserved neighborhoods.

C A L I F OR N I A G R OC E R

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CAGA.pdf 1 11/26/2013 8:36:02 AM

Aon Risk Services

would like to congratulate

Mary Kasper

on her nomination as the new California Grocers Association Chair of the Board.

DPI Specialty Foods would like to say...

ank you...

to Kevin Davis of Bristol Farms for your dedication and guidance this past year as Chairman of the Board of the California Grocers Association.

|

C A L I F OR N I A G R OC E R

Congratulations...

74

to incoming Chairman of the Board Mary Kasper. Here’s wishing you a successful year.

C

M

Y

CM

MY

CY

CMY

K

KELLER AND HECKMAN LLP

Congratulates

Mary Kasper,

incoming CGA Chair of the Board.

BEST WISHES

FOR A SUCCESSFUL YEAR.

Near-universal high-speed Internet access did more to transform business models than anything since America’s power grids were built. And just as companies had adjusted, smartphones and mobile technologies turned a disruptive force in business into a truly transformational one.

Simply, it is hard to find an industry that hasn’t seen the way it conducts its business greatly transformed in just the past decade. As ubiquitous as they are, if the iPhone and its smartphone competitors were human, they’d be precocious first graders. They arrived only six years ago.

The symbiotic relationship between grocer and in-store bank branch is more vital than ever in the age of commoditization and “showrooming” behaviors by shoppers.

Like hundreds of industries, banks and other financial service providers have found that their services remain in great demand. But the preferred method in which consumers choose to purchase and utilize these services continues to transform.

find themselves the victims of their own success.

Attracting new households brought transactional burdens that overwhelmed the capacity of a fewhundred-square-feet facility. Modern financial technologies have greatly eliminated that restriction.

Most in-store branches are now capable of providing full-service banking to customer bases as large as any freestanding brick-and-mortar branches in their markets.

This dynamic is leading to a renaissance in in-store banking. More than ever, in-store branches allow banks and credit unions to provide customers with the personal interaction they still desire from a financial services provider, without the expense of large buildings and real estate.

Few relationships are as personal or as integral in the lives of consumers as their financial services provider. And over the past two decades, data shows that customers who bank within a grocery store become more loyal customers to both bank and grocer. Secondary shoppers tend to become primary ones, and existing primary shoppers tend to increase their total spending in that store.

The symbiotic relationship between grocer and instore bank branch is more vital than ever in the age Continued on p. 76

supermarketbank.com

|

For more information, call 800.992.4978

C A L I F OR N I A G R OC E R

Customers continue to desire personal “touch points” with their financial institutions but have less and less need for the large financial services factories (traditional branches) that servicing their business once required. For decades, much of the space needed for branches was for the processing and storage of physical money and checks.

In-Store Banking Offers...

Electronic transactions now rule • Convenience • Rental income the day. Far • Increased security less space is needed for banks • Higher customer count and credit unions to provide • Improved cash flow • Larger profits true “full-service” branches • A partner promoting your store to customers.

There was a time in which in-store branch locations could

SUP P LY LIN ES

The In-Store Banking Renaissance

75

S U P P LY L I N E S

Continued from p. 75

of commoditization and “showrooming” behaviors by shoppers.

“In the ongoing competition for customer loyalty, few tenant partners provide retailers as many benefits as a well-run and progressive in-store banking partner,” says Roy Bell, President/CEO of Financial Supermarkets, Inc. “Well-structured instore banking partnerships continue to provide great win/win/win propositions for grocers, bankersv and customers all across the country.”

The in-store banking business has been a success story for three decades. And the instore banking renaissance happening now makes the future all the more promising for grocer and bank partner alike. n Dave Martin is EVP and Chief Development Officer for Financial Supermarkets, Inc., a Market Contractors subsidiary.

The True value of generosiTy can’T be measured.

We should knoW. Raymond James has built a solid reputation for understanding, enhancing and preserving the value of things. And if it has taught us anything, it’s that the best parts of life can’t be quantified.

So, we focus on nobler pursuits – supporting the people who truly enhance our communities. LIFE WELL PLANNED.

"I am proud to support Chair Mary Kasper and the California Grocers Association" Cyril Shah Managing Director, S.G. Financial Advisor, RJFS 3001 I St Ste 230 // Sacramento CA 95816 T 916.448.3754 // F 916.448.3756 cyril.shah@raymondjames.com // www.raymondjames.com/theshahgroup ©2012 Raymond James Financial Services, Inc., member FINRA/SIPC. Raymond James is a registered trademark of Raymond James Financial, Inc. 12-BR-InCr-0333 EN 9/12

Honors

Kevin Davis

| 76

2013 California Grocers Association Chairman of the Board We are grateful for your support.

DEV-21773 SL

C A L I F OR N I A G R OC E R

President and CEO Bristol Farms

to our

MANY ADVERTISERS ADVERTISED IN ALL SIX ISSUES OF CALIFORNIA GROCER

C&S Wholesale Grocers California Shopping Cart Retrieval Corp.

Coca-Cola Refreshments

Pepsi Beverages Company – WBU Safeway Inc. Unified Grocers, Inc.

CALIFORNIA GROCER ADVERTISERS

Advantage Sales & Marketing al fresco all natural (Kayem Foods) Albertsons LLC Alcoholic Beverage Consulting Service AlEn USA Alta Dena Certified Dairy, LLC Anheuser-Busch InBev AON Insurance Services West, Inc. APCO Worldwide Bach - West Distributors/Hobart Bimbo Bakeries USA Boy Scouts of America San Gabriel Valley Council Bristol Farms Brownstein Hyatt Farber Schreck, LLP C&H Sugar - Domino Foods, Inc. - ASR Group C&S Wholesale Grocers, Inc. California Beef Council California Beer & Beverage Distributors The California Conference For Equality and Justice California Lottery California Shopping Cart Retrieval Corp.

Cardenas Markets, Inc. Carr, McClellan, Ingersoll, Thompson & Horn Professional Law Corporation Cash Register Services, Inc. Celestial Seasonings Coca-Cola Refreshments Co-Sales Southern California Del Rey Marketing DPI Specialty Foods - West

Early On, Inc. El Super (Bodega Latina Corp.)

F. Gavina & Sons, Inc. Financial Supermarkets, Inc. FMS Solutions, Inc. Food 4 Less (Stockton)/Rancho San Miguel Markets Food 4 Less/Foods Co. Fresh & Easy Neighborhood Market Inc. Frito Lay, Inc. (No. Calif. Div) Fruitridge Printing & Mailing/RAM Printing Gelson's Markets General Mills Gizmo Beverages Glass Agency Grace Foods (USA) Inc. Green Smoke Inc. Harris Ranch Beef Company The Hartz Mountain Co. Harvest Meat Co. Hickman's Family Farms Hillshire Brands Company Huntley, Mullaney, Spargo & Sullivan, Inc. Illuminators International Dairy Deli Bakery Association The Investors Caddie, Inc. Jelly Belly Candy Co. Jones Day Jons Marketplace

Keller and Heckman Kellogg Company Kolesar & Leatham Kraft Foods Group, Inc. Lockton Insurance Brokers, LLC MillerCoors Mondelez International Inc. Morrison & Foerster National Cooperative Bank Natural Products Expo West Nestle Purina PetCare NexCycle Nielsen North State Grocery, Inc. dba Holiday/Sav-Mor Foods Northgate Gonzalez Markets NuCal Foods Nugget Markets PECO Pallet, Inc. Peet's Coffee & Tea Pepsi Beverages Company - WBU Pillsbury Winthrop Shaw Pittman LLP Pinnacle Foods PNC Business Credit Union Procter & Gamble Prudential Overall Supply Quik Stop Markets, Inc. Raley's Ralphs Grocery Company Raymond James Financial Services, Inc. Reed/Expo Comida Latina rePLANET, LLC

ELECTRONIC ADVERTISERS

Anheuser Busch-InBev Green Smoke Inc. Jelly Belly Candy Co. Kellogg Company

Natural Products Expo West Roplast Industries Inc. SIAL Canada Specialty Food Association

Revionics Ronald P. Slates, Professional Corporation RSi Retail Solutions Safeway Inc. Sanchez & Amador, LLP Sheppard, Mullin, Richter & Hampton Sioux Honey Association SIP Certified Sustainable Wines Smart & Final Stores Snak King Corp.

Snyder's-Lance, Inc. Specialty Food Association Stater Bros. Markets Sugar Bowl Bakery Sun Products Corporation Sun-Maid Growers of California Super A Foods, Inc. Super King Market Superior Grocers Supervalu Wholesale Tadin Herb & Tea Co. Tony's Fine Foods Tyson Fresh Meats, Inc. - Dan Peed Unified Grocers, Inc. Unilever Union Bank United Fresh Produce Association Wells Fargo & Company Western Exterminator Willis & Walsh, CPA's

WEALTH M A N AGEM EN T

Time to be Thankful!

LIKE YOU I FIND THIS TIME OF YEAR IS A REMINDER TO BE FOREVER THANKFUL. I recall over the years the comedians who have brought the lighter side of life to mind. There is no stress to those who are blessed. We can chose to be grateful for so many things.

Finally, I am thankful we live in a country that is bountiful and free. We all have worked hard to guarantee it will remain that way. Remember what

Our industry plays a vital role in helping folks celebrate and share with friends and family. What fun to explore the aisles and select those treasures we know will delight and bring smiles to our loved ones.

This time of year I enjoy the turkey, rolls, pies, and the specially prepared vegetables. We are blessed with such variety! Bill Cosby once said, “Decide what you want, more than you are afraid of it!”

I am thankful for family, friends and relationships.

This includes the fine work done for us at the Association level regarding legislation, creative endeavors and communications.

David Letterman once quipped, “If it weren’t for coffee in the morning, I’d have no identifiable personality.”

I’m reminded of the scholarships awarded by the fine work of The Illuminators and their sponsors. It is rewarding to track the efforts of staff in presenting our concerns to the Legislative and the Executive branches.

Without their dedication, our industry would face even more challenges. Dealing with government will always be a challenge.

Johnny Carson once said, “Mail your packages early so the Post Office has time to lose them.”

David Letterman once quipped, “If it weren’t for coffee in the morning, I’d have no identifiable personality.”

Bob Hope said, “You’ve got to be rich to have a swing like that!”

Be thankful and enjoy the holiday season! n John B. Kelly, MPA, C.F.P. is a consultant and workshop facilitator to businesses and families regarding succession, protection, growth of reserves, college funding and values based financial planning. He can be reached at 916-2969019 or investorscaddie@gmail.com

AlEn USA Turning chores into solutions

Going forward, 2014 looks like a strong year as we recover from the challenges of the last few years. Bill Cosby hit the nail on the head when he said, “A word to the wise isn’t necessary. It’s the stupid ones that need the advice.”

Remember over the holidays the best gift you can offer loved ones is your presence and your time. Celebrate your accomplishments.

George Carlin once said, “One tequila, two tequila, three tequila, floor!”

AlEn USA 14825 Northwest Freeway, Suite #500 Houston, Texas, 77040, USA

www.alenusa.com Ph. 1-800-615-3191

VALUES BASED FINANCIAL PLANNING Just as a caddie assists a golfer—giving insightful advice and moral support—The Investor’s Caddie is aware of the challenges and obstacles of the financial course of life, along with the best strategy in playing it.

A great financial advisor is worth their weight in gold. Whether you plan to invest for the future, create a college fund, own your own home or draw-up a living trust, it is important for your advisor to understand the big picture. With over 30-years’ experience in the industry and the partnership of a team of experts, John B. Kelly can bring your financial vision to life.

John is a Certified Financial Planner with Mass Mutual. An expert in life insurance, disability income insurance, annuities, long term care insurance, retirement plans and investments, he can help you navigate and plan for your financial needs. It’s important to understand your unique situation and financial goals. He will help you understand your options and help you take the next steps to prepare for your financial future.

For most families, saving enough to pay for the costs of higher education can seem overwhelming. However, with good planning, funding a college education can be easier to achieve than you might think. John can help guide you from here to there.

As an agent of the top-selling real estate company in the area, John’s experience means better results, whether you’re searching for your first home or a vacation home. Being a part of a great company involves not only serving clients to the best of his abilities, but also connecting with the community to match properties and people successfully.

Due to a lifetime of relationships, John has also partnered with various teams to offer coaching, business development, asset management and succession planning to his client base.

John B. Kelly, MPA, CFP - The Investor’s Caddie, Inc. - 916.296.9019 - investorscaddie@gmail.com

ADVERT IS E R INDE X C A L I F OR N I A G R OC E R

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PAGE COMPANY

PHONE

FAX

EMAIL

WEBSITE

4

al fresco all natural (Kayem Foods)

800-426-6100

617-889-5478

chris.reisner@kayem.com

www.alfrescoallnatural.com

41

Albertsons LLC

714-300-6000

714-300-6936

73

Alcoholic Beverage Consulting Service

951-698-6868

mike@abcconsulting.com

www.calabc.com

78

AlEn USA

949-709-2060

949-666-6230

belinda.vanthul@alenusa.com

www.alenamericas.com

74

Aon Risk Insurance Services West, Inc.

213-996-1507

213-630-3391

william.poulsen@aon.com

www.aon.com

58

APCO Worldwide

916-554-3400 x3430

cpye@apcoworldwide.com

www.apcoworldwide.com

21

Bimbo Bakeries USA

714-459-4772

714-441-3435

rhamacher@mailbbu.com

www.bimbobakeriesusa.com

8

Bristol Farms

310-233-4700

310-233-4701

74

Brownstein Hyatt Farber Schreck, LLP

303-223-1372

15

C&H Sugar ­— Domino Foods, Inc. ­— ASR Group 510-787-4416

6

C&S Wholesale Grocers, Inc.

76

The California Conference for Equality and Justice

www.albertsons.com

www.bristolfarms.com

KKaminski@BHFS.com

www.bhfs.com

510-787-4205

kent.kunsman@chsugar.com

www.chsugar.com

916-373-4396

916-373-4296

pmiller@cswg.com

www.cswg.com

562-435-8184

562-435-8318

wnichols@cacej.org

www.cacej.com

3 California Shopping Cart Retrieval Corp.

818-563-3070 800-252-4613

818-563-3041

www.cscrc.net

13

Coca-Cola Refreshments

213-746-5555

213-744-8765

mikanderson@coca-cola.com

www.cokecce.com

74

DPI Specialty Foods — ­ West

909-975-1019

909-975-7252

susan.bargsten@dpispecialtyfoods.com www.distribution-plus.com

75

Financial Supermarkets, Inc.

707-656-6814

707-449-1537

info@supermarketbank.com

35

Food 4 Less (Stockton) Rancho San Miguel Markets

209-957-4917

209-956-8550

www.food-4-less.com

56

Fresh & Easy Neighborhood Market Inc.

310-341-1200

310-341-1501

www.freshandeasy.com

35

Fruitridge Printing &Lithograph, Inc. RAM Printing

916-452-9213

916-452-6020

www.fruitridgeprinting.com

24

Gelson’s Markets

818-906-5709

818-990-7877

www.gelsons.com

23

Harvest Meat Co

619-477-0185

619-474-3609

kbassette@harvestmeat.com

www.harvestmeat.com

69

Huntley, Mullaney, Spargo & Sullivan, Inc.

916-787-2020

916-787-2010

tmullaney@hmsinc.net

www.hmsinc.net

12 Illuminators

209-835-1346

209-835-9964 ed.hepler@hain-celestial.com

www.Celestialseasonings.com

79

The Investor’s Caddie, Inc.

916-296-9019

888-391-5286

investorscaddie@gmail.com

www.financialguide.com/john-kelly

32

Jones Day

212-326-3657

212-755-7306

llaukitis@jonesday.com

www.jonesday.com

74

KELLER AND HECKMAN LLP

415-948-2800

415-948-2808

krasny@khlaw.com

www.khlaw.com

60

Kolesar & Leatham

702-362-7800

702-362-9472

msaltzman@klnevada.com

www.klnevada.com

40

Lockton Insurance Brokers, LLC

213-689-0065

213-689-0550

www.lockton.com

53

Lockton Insurance Brokers, LLC

213-689-0533

213-873-0552

raroderick@lockton.com

www.lockton.com

31

Morrison & Foerster LLP

213-892-5200

213-892-5454

tryan@mofo.com

www.mofo.com www.nielsen.com

info@fruitridge.com

www.supermarketbank.com

65 Nielsen

847-605-5732

juan.davila@nielsen.com

20

North State Grocery, Inc. dba Holiday Sav-Mor Foods

530-347-4621

www.shophqf.com

10

Peet’s Coffee & Tea

510-844-3621

510-205-4866

surbanske@peets.com

www.peets.com

BC

Pepsi Beverages Company ­— WBU

925-416-2573

925-416-2600

paul.turcotte@pepsico.com

www.pepsi.com

49

Pillsbury Winthrop Shaw Pittman LLP

916-329-4700

916-441-3583

chris.rodriguez@pillsburylaw.com

www.pillsburylaw.com

IFC

Procter & Gamble

925-867-4900

513-277-7964

www.pg.com

31 Raley’s

916-373-3333

916-444-3733

www.raleys.com

19

Ralphs Grocery Company Food 4 Less/Foods Co.

310-884-9000

310-884-2600

www.ralphs.com

76

Raymond James Financial Services, Inc.

916-448-3754

916-448-3756

cyril.shah@raymondjames.com

www.raymondjames.com/theshahgroup

60

Ronald P. Slates, Professional Corporation

213-624-1515

213-624-7536

rslates2@rslateslaw.com

www.rslateslaw.com

68

Safeway Inc.

925-467-3000

925-467-3323

www.safeway.com

76

Sanchez & Amador, LLP

213-955-7213

213-955-7201

talley@sanchez-amador.com

www.sanchez-amador.com

61

Sheppard, Mullin, Richter & Hampton

310-228-2272

mgallion@sheppardmullin.com

www.sheppardmullin.com

27

Smart & Final Stores

323-869-7500

323-869-7862

www.smartandfinal.com

69

Snak King Corp.

626-363-7711

626-336-3777

info@snakking.com

www.snakking.com

37

Specialty Food Association

212-482-6440

212-482-6459

info@nafst.org

www.fancyfoodshows.com

29

Stater Bros. Markets

909-783-5000

www.staterbros.com

11

Sun-Maid Growers of California

559-897-6311

559-897-6380

www.sunmaid.com

28

Super A Foods, Inc.

323-869-0600

323-869-0611

www.superafoods.com

IBC,33

Unified Grocers, Inc.

323-264-5200

323-262-0658

www.unifiedgrocers.com

rpaumen@sunmaid.com customercare@unifiedgrocers.com

Unified Grocers salutes

Kevin Davis

for your leadership as the CGA Chairman of the Board of Directors.

Our sincere appreciation for your contributions, your vision and your humanity.

You are truly a champion and as an industry, we are better because of your efforts.

Thank you!

Kevin Davis President and CEO of Bristol Farms 2013 CGA Chairman of the Board of Directors

Ph: 800-724-7762 | unifiedgrocers.com