+ Items 0 24,00 tock, everyday regular s
+ BRANDS 0 3,00 nal & exclusive natio
s e i r o g e t a 10 ircy • bakery • confections +
deli • da grocery y t l ia c e p s • packaging ervice s d o o f • N E Z FRO nce food & ie n e v n o c • d o meat & seafo ECIALTY P S L A N IO T A N R TE beverage • IN
1 Distributor
For more information visit liparifoods.com New customers contact Joe Calo at Joe_Calo@liparifoods.com
President’s Message
We’ve got big plans to make 2022 a great year william j. hallan
MRA President and Chief Executive Officer
Every year, the Oxford English Dictionary, the Merriam-Webster Dictionary, the Cambridge Dictionary and many others announce their “Word of the Year,” selecting a word that’s become prominent or notable during the year that reflects the ethos or mood of the time. Not surprisingly for 2021, Oxford chose “vax” and Merriam-Webster selected “vaccine.”
An all-new member event will debut in Lansing on Thursday, June 9 at the Lansing Center. I hope you’ll join retailers, suppliers and other industry professionals from across the state at our Retail’s Night Out event. The half-day-into-night gathering is designed to optimize business relationships and educational opportunities without keeping you out of the store or office for too long.
As an optimist, I was happy to see that the Cambridge Dictionary selected “perseverance” as their 2021 Word of the Year. Defined as “continued effort to do or achieve something, even when this is difficult or takes a long time,” their data shows that the word was looked up more than 243,000 times during the year.
We’re in the process of designing a program to bring you and your team up to date on the latest trends and best practices for a successful 2022 and beyond. We are working to: n Secure a keynote speaker to break down post-pandemic consumer behavior, so you can make the most of what’s next.
Here at MRA, we are always looking for ways to help our members persevere and stay positive. That’s why I’m excited to share some big plans to help make your year a great one.
n Host a panel discussion about retail security/organized retail crime. We will invite Michigan’s Attorney General to participate and share her vision for the Organized Retail Crime Task Force she’s creating.
Bigger Scholarships First, we know the value of investing in the future. We established the Michigan Retailers Foundation in 1968 to provide college scholarships each year to benefit retailers and their employees and families. This year, I’m thrilled to announce that the Foundation Board of Directors voted to increase the scholarship amounts from $1,500 to $3,500. MRA will award 12 scholarships in 2022. Please see the article on page 17 for details, and be sure to share the information with your employees soon — the deadline to apply is April 1.
n Organize a bipartisan political/legislative panel. We’ve invited Michigan’s legislative leaders to participate. After an educational afternoon, the evening activities will kick off at the Lansing Brewing Company with a cocktail reception, followed by a strolling dinner, plus fun and games. Please mark June 9 on your calendar for what is shaping up to be a can’t-miss event. We’ve also opened it up to sponsors, so reach out to Amy Drumm for sponsorship details.
All-new Event A service that we’ve had to pause during the pandemic is providing the opportunity to come together as an industry. Now, as the world continues to recover, I’m pleased to share that we are able to press play on in-person events.
I look forward to reconnecting with you face-to-face as we do our part to ensure that all of the options for the 2022 Word of the Year reflect a positive, prosperous year.
Michigan Grocers Division Advisory Board William J. Hallan, President Michigan Retailers Association
Rachel Hurst Kroger Company of Michigan
Bryan Neiman Neiman’s Family Market
Craig Diepenhorst H.T. Hackney
Nick Lenzi Lipari Foods
DJ Oleson Oleson’s Food Stores
Jim Gohsman SpartanNash
John Leppink Leppink’s Food Centers
Thom Welch Hollywood Markets
Michigan Grocers is a division of the Michigan Retailers Association
William J. Hallan Publisher Lisa J. Reibsome Editor, Design & Layout, Ad Sales (517) 449-2256; LReibsome@retailers.com Publisher does not assume responsibility for statements made by advertisers in business competition. © MICHIGAN FOOD NEWS 2022 MICHIGAN FOOD NEWS MARCH/APRIL 2022 3
-
SALES DURING THE PANDEMIC Sizable sales for dairy, deli and bakery to start 2022 Thanks to the International Dairy Deli Bakery Association (IDDBA) and market research firms IRI and 210 Analytics for putting together the following data about COVID-19’s continuing impact on dairy, deli and bakery sales. As we enter the third pandemic year, concerns about COVID-19, inflation and the supply chain are impacting dairy, deli an bakery sales. The good news is that IDDBA’s February COVID-19 Impact report found that dairy, deli and bakery sales started the year strong: n Dairy department dollar sales were $6.2 billion, up 3.6% compared with the same period last year.
the home in January 2022, at 82% of all meal occasions. IDDBA reports that this is the highest number since February 2021. How are shoppers reacting to inflation? IDDBA reports that 64% of shoppers have made one or more changes to what and how they buy: n 45% of shoppers look for sales specials more often;
n Deli department dollars sales reached $4 billion in January, up 10.6% from a year ago.
n 31% are cutting back on nonessentials;
n Bakery dollar sales totaled $3.5 billion, up 10.2% from January 2021.
n 12% now shop at a lower-cost retailer.
While inflation was instrumental in the dollar sales increases, unit sales also increased in several areas within each department. INFLATION IS TOP CONCERN According to the report, 89% of shoppers are “very aware” of food inflation, and the vast majority (95%) worry about it. “In total, 42% of shoppers are extremely concerned about the price increases they are seeing across the store — which means food inflation has more people on high alert than COVID-19 as of January 2022,” says IRI’s Jonna Parker. Specifically, the combination of 40-year high inflation and the upswing in COVID-19 cases moved more meals to
DEMAND FOR DAIRY IS HOLDING STRONG January generated upwards of $6 billion in dairy sales, which is an increase of 3.6% from January 2021. IDDBA reports that the consistency of January’s weekly sales levels, each around $1.2 billion, is encouraging because it means demand is holding strong. Looking beyond January for longer-term trends, cream and creamers show consistent strength. Milk and desserts are also strong, with increases in unit sales as well as dollar sales. While dessert is a smaller seller with high gains, milk is the largest dairy subcategory, with January sales of $1.6 billion. This is up 4.5% versus January 2021, even as volume dropped. “The [table] shows the change versus a year ago in dollars and [units], and the difference between the two percentages is a good proxy for the combination of inflation and fewer sales promotions,” says IDDBA’s Jessica Ives. continued on page 6
n 19% buy more private brand and How are shoppers reacting to COVID-19 concerns? IDDBA found that the vast majority of shopping took place in the store (86%), with only 14% occurring online in January 2022. This is a significant drop in online shopping, which reached 20% during the early pandemic months. The percentage of online shopping dropped to a pandemic low of 11% in July 2021. Breaking down January’s 14% — 7% of the online shoppers got delivery, 6% used curbside pickup and 1% used in-store pickup. Looking ahead: 65% of shoppers say all their shopping will be in the store versus just 4% who believe they will purchase all groceries online. The remaining 31% say they will use a mixed format shopping approach.
Current Dairy Sales vs. Same Time Period a Year Ago (YA) Dollar Sales Change in Change in Jan. 2022 $ sales vs YA unit sales vs YA Total Dairy.......................$6.2B..................+3.6%................ -3.1% Milk.................................$1.6B..................+4.5%................ -4.2% Natural cheese...............$1.2M..................-3.1%................ -2.4% Yogurt.............................$777M................+3.8%................ -2.5% Eggs...............................$740M..............+15.1%.....................— Cream/creamers.............$512M................+5.7%............... +0.4% Butter/margarine.............$450M.................-0.6%................ -7.9% Processed cheese..........$228M................+0.3%................ -1.7% Cream cheese................$198M.................-2.7%................ -6.4% Sour cream.....................$138M................+3.6%................ -1.1% Whipped toppings...........$136M................+2.0%................ -0.9% Cottage cheese..............$107M................+2.9%................ -4.0% Refrigerated desserts.....$102M..............+12.8%............... +3.1% Source: IRI, Total U.S.
MICHIGAN FOOD NEWS MARCH/APRIL 2022 5
Dairy Deli Bakery Sales continued from page 5
DELI SALES ARE SIZABLE “The deli department had an all-around win in January 2022 — granted, though, inflation played a big role in that,” says IDDBA’s Jeremy Johnson. “Importantly, people remained engaged with deli cheese, meat, entertaining and prepared in January as the share of at-home meals was at its highest point in nearly a year. IDDBA separates the deli category into four subcategories: deli meat, deli cheese, deli prepared and deli entertaining. Market researcher IRI explains that items categorized as deli entertaining are purchased for parties or other occasions. They include spreads, dips and trays. Deli prepared items are focused more on meals and include items such as pizza, sandwiches and soup. Deli Department Dollar Sales Gains Dollar Dollar gains Dollar gains
Deli prepared Deli cheese Deli meat Deli entertaining
Sales
$2.0B $748M $764M $451M
vs. 2021
+15.3% +2.4% +8.1% +9.5%
vs. 2020
+12.8% +20.3% +22.4% +10.0%
Source: IRI, Total U.S.
To start the year, deli prepared drove the deli department with $2 billion in sales. In particular, deli prepared entrees and soups/chili had big year-over-year dollar and unit increases. “The success of deli prepared underscores that people are looking for a little help in planning, preparation and cleanup,” Johnson says. “And deli prepared can play that role very effectively as the total meal solution or a meal ingredient in a hybrid meal approach.” Current Deli Prepare Sales vs. Same Time Period a Year Ago (YA)
Dollar Sales Change in Change in Jan. 2022 $ sales vs YA unit sales vs YA Total Deli Prepared.........$2.0B................. +15.3%.................+4.6% Entrees...........................$515M............... +25.5%...............+15.8% Prepared meats..............$404M............... +10.1%.................+1.4% Salads.............................$314M............... +13.1%.................+0.8% Sandwiches....................$259M............... +16.4%.................+5.9% Appetizers.......................$173M................. +6.0%..................-8.2% Side Dishes....................$127M................. +5.0%..................-2.6% Soups & Chili..................$120M............... +42.5%...............+33.3% Pizza...............................$ 68M................. +3.9%.................+5.0% Breakfast........................$ 36M.................. -0.9%................-11.6% Desserts.........................$ 8M................. +9.0%.................+9.7% Source: IRI, Total U.S.
Herbruck’s makes leadership transitions
A whole new look. Same community loved freshness.
1-800-748-0480 6 MARCH/APRIL 2022
MICHIGAN FOOD NEWS
MRA member Herbruck’s Poultry Ranch announced leadership transitions to help move the fourthgeneration family business forward and further its leadership in the poultry industry. Stephen Herbruck remains Chairman of Herbruck’s Board of Directors, while Greg Herbruck assumes the role of CEO and remains Vice New President Chairman of the board, focusing Harry Herbruck III on company strategy and vision. In his new role, Greg reports directly to Stephen. The company reports that the shift allows Stephen to focus on visionary leadership while mentoring future leaders. Harry Herbruck III assumes the role of President to manage the day-to-day operations as well as to design and oversee expansion projects including permitting, settling in baby chicks, robotic automations and landscaping. He previously designed several innovations in hen living systems and is the strategist behind the holistic integration of raising pullets, egg production, egg grading and distribution.
BAKERY SALES ARE A CLOSE SECOND TO DELI IDDBA reports that the first month of 2022 brought joint success for both center store baked goods and in-store bakeries with year-on-year gains for both dollars and volume. Although prices increased 9.2% over 2021 across all bakery items, demand remained robust. Center Store Bakery: Baked goods items found in the aisle increased 10.9% in January 2022 hand-in-hand with a 0.5% increase in unit sales. Croissants recorded the highest yearon-year dollar increase in January but are the smallest seller in the category. Perimeter/In-store Bakery: Perimeter bakery, also known as the in-store bakery, had a strong 2021 and completed a full comeback from the early pandemic sales losses. With the exception of brownies, all areas showed year-on-year dollar gains and most also gained in volume. “Early in the pandemic, many retailers discontinued sheet cakes and 24-count cupcake packages in exchange for going smaller,” says Parker. “As celebrations are normalizing, returning to pre-pandemic pack sizes may be needed to avoid sales losses.” WHAT’S NEXT? Grocers should be sure to note two behaviors flagged in IDDBA’s impact study: n For the first time since the pandemic onset, a greater share of shoppers (29%) feel their financial situation will be worse a year from now compared to those (23%) who think it will be better. This outlook may prompt a greater focus on money-saving measures. n Continued rising inflation and shortages are driving 42% of shoppers to stock up. While 58% do not buy more than they need, 14% bought extra due to concerns for continued price increases, and 19% stocked up out of fear that an item will be out-of-stock next time they shop.
Current CENTER STORE Bakery Sales vs. Same Time Period a Year Ago (YA) Dollar Sales Change in Change in Jan. 2022 $ sales vs YA unit sales vs YA Breads.........................$950M..............+10.9%.................... +0.5% Buns/Rolls...................$380M................+7.9%..................... -2.5% Bagels..........................$138M..............+13.1%.................... +5.6% Snack Cakes...............$122M................+7.5%..................... -3.0% Donuts.........................$120M..............+17.5%.................... +6.2% English Muffins............$ 86M................+4.8%..................... -2.9% Muffins.........................$ 83M..............+20.4%.................... +6.4% Cookies........................$ 69M..............+23.9%................... -+6.2% Pastry/Danish..............$ 56M..............+14.4%.................... +1.9% Brownies/bars..............$ 45M..............+10.6%..................... -4.3% Cakes..........................$ 40M..............+27.6%.................. +14.3% Wraps/Flatbreds..........$ 23M.................-1.7%..................... -7.3% Pies..............................$ 23M.................-4.4%................... -11.3% Croissants....................$ 10M..............+31.8%.................. +25.3% Source: IRI, Total U.S.
Current IN-STORE Bakery Sales vs. Same Time Period a Year Ago (YA)
Dollar Sales Change in Change in Jan. 2022 $ sales vs YA unit sales vs YA Cakes..........................$414M................+8.1%.................... +2.1% Cookies........................$184M.............. +11.9%.................... +2.4% Pastry/Danish..............$150M..............+12.8%..................... -8.5% Breads.........................$142M................+1.6%..................... -4.9% Muffins.........................$ 95M..............+16.1%.................. +13.4% Donuts.........................$ 90M.............. +11.8%.................. +16.3% Buns/Rolls...................$ 82M................+8.9%.................... +6.9% Pies..............................$ 80M................+3.2%..................... -2.7% Croissants....................$ 50M..............+21.9%.................. +18.4% Wraps/Flatbreads........$ 28M................+9.9%.................... +3.0% Bagels..........................$ 27M..............+22.8%.................. +29.1% Brownies/bars..............$ 26M...............-10.3%................... -15.5% Specialty desserts.......$ 10M..............+17.4%.................. +22.6% Source: IRI, Total U.S.
Dutch Farms expands egg line with a dozen specialty eggs To meet the growing demand for specialty eggs across the country, MRA member Dutch Farms launched its largest ever specialty egg line expansion. In fact, only one national brand now has more specialty egg SKUs than Dutch Farms.
USDA reports that specialty egg production in the U.S. has doubled since 2016. And by 2026, a full 66% of all shell eggs sold will be specialty eggs — more than doubling production again in under five years. “We know the egg market,” says Dutch Farms Marketing Director Karen Van Prooyen. “All trend lines point toward increased demand in specialty eggs. Consumers continue to ask us for organic, cage-free, free-range and pasture-raised eggs, so we’re very excited to introduce this unprecedented expansion to our egg line.” To produce Dutch Farms eggs, the company partners with local, small family farms that raise hens who are free to roam and nest
and have outdoor access. In addition, some of the farms allow hens to forage for wild plants, along with eating grains, which is particularly good for their health and wellbeing. Dutch Farms offers specialty eggs from birds fed diets designed to increase the nutritional content of the eggs and/or from hens kept in alternative housing environments, making for happier birds. The twelve new specialty egg items are: n Free-Range Non-GMO Large n Pasture-Raised Organic Large n Free-Range Organic Large n Vegetarian Fed Cage-Free Large n Pasture-Raised Large n Organic Large n Organic Large 18-Pk n Organic Medium n Organic Medium 18-Pk n Cage-Free Jumbo n Cage-Free Large Pulp & Plastic The egg line is in addition to the full line of farm-fresh dairy, deli, meat and bakery products already offered by the family-owned company. MICHIGAN FOOD NEWS MARCH/APRIL 2022 7
n
le long-term gr b a ow n tai th s in su
Reyes Coca-Cola Bottling
n iga ich M
Foc us ed o
MRA MEMBER SPOTLIGHT
Illinois, Wisconsin, A few years ago, Minnesota, Coca-Cola North America concluded Kentucky, Tennessee, Iowa, Nevada and a multi-year underCalifornia. taking to return ownership of its bottling BY LISA J. REIBSOME In Michigan, approximately operations to local 1,700 employees operate business owners. Through a out of 11 facilities in Caledonia, process known as refranchising, Grand Rapids, Lansing, Belleville, Coca-Cola’s bottling business in the Alpena, Bay City, Flint, Highland Park, U.S. transformed from a company-owned Traverse City, Negaunee and Kincheloe. With the system to a system made up of approximately exception of Grand Rapids, which is a production facility, all 70 independent bottlers — from multinational owners to of the facilities are distribution centers. decades-old, family-held operations. Reyes in Michigan One of those family-run businesses is Reyes Holdings — a large, privately held, global food and beverage distributor. The company was founded in 1976 by brothers Chris and Jude Reyes with a small Schlitz beer distributorship in South Carolina. Today, it’s comprised of three business units: (1) Reyes Beer Division, the largest beer distributor in the U.S., (2) Martin Brower, the largest global distributor for McDonald’s and (3) Reyes Coca-Cola Bottling, a Midwest and West Coast bottler and distributor of Coca-Cola products. The Coca-Cola bottling division was established in 2015 as Great Lakes Coca-Cola Bottling to serve several Midwest states. Michigan became part of that division in 2017. Also in 2017, Reyes acquired bottling operations in Nevada and California, which led to the founding of Reyes Coca-Cola Bottling. The two Coca-Cola bottling businesses operated independently until Jan. 1, 2022, when Great Lakes Coca-Cola Bottling and Reyes Coca-Cola Bottling combined to form one business unit: Reyes Coca-Cola Bottling (RCCB). Led by CEO Bill O’Brien, RCCB employs nearly 11,000 people operating across 10 states: Michigan, Indiana, 8 MARCH/APRIL 2022
MICHIGAN FOOD NEWS
In early February, I met with Matt Barribeau, Reyes Coca-Cola Bottling’s Michigan Market Unit President, at the company’s new, state-of-the-art, 218,500 squarefoot-facility in Caledonia. Completed in July 2021, it includes a warehouse and distribution center, plus meeting and office space to serve customers and other Coca-Cola facilities throughout the Midwest, distributing approximately 10.9 million cases of products annually. Investing in the Business “This new facility is the perfect example of what makes Reyes Holdings a fantastic company,” says Barribeau during a tour of the building. “They made a significant investment to position us for sustainable long-term growth. The company is passionate about growing and investing in the business to strengthen our operations so we can best serve our customers.” Building a new facility in Caledonia meant that RCCB could design a warehouse that best enabled their growth strategy. “This facility incorporates next-generation design and technology to improve our entire operation and how we serve our customers,” Barribeau says.
State-of-the-art Operations One of the best-in-class features of the new facility is the way orders are filled. With 36-foot ceilings, almost 194,000 square feet of space and a storage capacity of 750,000 cases, the distribution center is large enough that RCCB set up what they refer to as a dual pick floor: There’s one product area for bulk businesses and another for smaller stores and convenience retailers. “The dual pick floor improves our entire operation,” Barribeau says. “We have better pick accuracy, faster response times for order fulfillment and increased safety because employees have more room to work.” The facility employs approximately 330 people including 50 salespeople and a fleet of about 50 delivery trucks. Employees stock and pick from a product portfolio of approximately 550 SKUs. In addition to the Coca-Coca Company’s carbonated beverages, the facility also distributes DASANI water, smartwater, fairlife milk, vitaminwater, POWERADE and the newly acquired sports performance drink BODYARMOR — plus products from Monster Energy and Dr Pepper. Employee Development A top priority at RCCB is team development, which extends beyond the Caledonia facility. “I like to say we are all one team working together to serve our customers,”
Barribeau shares. “So, it’s important to make employee development a central part of our organization.” RCCB’s employee development plan includes succession planning to create a talent pipeline, crafting employeespecific growth plans and coaching to offer guidance as employees build knowledge and skills. Pandemic Impact Providing career development opportunities is also an effective way to gain and retain staff, which addresses the biggest obstacle the company has faced over the last 18 months. The Caledonia facility runs a six-day-a-week operation, with day and evening warehouse shifts. “One of the challenges during the pandemic has been hiring enough people to be fully staffed,” Barribeau says. “We are just starting to see that balance out; but, like many companies across the country, we still have job openings in most areas.” continued on page 10
The driver room has windows looking onto the distribution floor. The fun, colorful space provides an inviting location for the drivers to perform the tasks needed to start and end their shifts. MICHIGAN FOOD NEWS MARCH/APRIL 2022 9
continued from page 9
Another challenge shared by businesses across the country is the pandemic’s disruption of the supply chain; and for bottling companies, the nationwide aluminum shortage has hit particularly hard. “Because of increased costs and decreased raw materials, we’ve had to hit pause on some of the products we produce,” Barribeau says. “With fewer cans available coupled with an increased demand for them, we’ve had to find other ways to continue to best serve our customers.” Reyes Cares One area where the bottler has been able to step up their efforts is in support of local communities. Under the banner of Reyes Cares, support focuses on areas where the company feels they can have the most meaningful impact, including making a positive difference in local communities and in recycling. In Michigan, recent philanthropic efforts include donating to the Detroit Red Wings “Learn, Play, Score” program. “That program helps support children in underserved communities,” Barribeau says. In addition, the Caledonia team recently partnered with the Salvation Army to collect donations for underprivileged children, donating more than 40 toys and gift cards. And the Lansing team supported three local families during the holidays. “With the families’ wish lists in hand, the team rallied together to collect coats, toys, sporting equipment, cookware, bed linens and much more to help create an amazing holiday for them,” Barribeau says.
It’s big! The Caledonia facility includes approximately 24,500 square feet for offices and meetings as well as almost 194,000 square feet for storage and distribution.
10 MARCH/APRIL 2022
MICHIGAN FOOD NEWS
In 2019, Reyes Coca-Cola Bottling helped launch American Beverage Association’s (ABA) “Every Bottle Back” initiative, which aims to reduce the use of new plastic. In Michigan, ABA made an $800,000 Every Bottle Back investment to help rebuild Ann Arbor’s Materials Recovery Facility. In partnership with the Michigan Department of Environment, Great Lakes and Energy and several environmental groups, the project improves the collection and sorting of recyclables. What’s Next? What’s next for RCCB? “Our customers will begin to see our new Reyes Coca-Cola Bottling logo on our facilities, trucks, hats, uniforms and more as we work to update our appearance throughout the system,” Barribeau says. “In addition, along with safety and staff development, we will continue to focus on driving growth, investing back into the business and enhancing our operations to be as efficient as possible.” He adds, “That not only creates best practices for us, but it also improves the supply chain experience for grocers and our other customers.” While Barribeau has served as the Michigan Market Unit president since 2017, he’s been part of the Coca-Cola family for 28 years. “I’ve done just about every job, and I’ve seen a lot of changes,” he shares. “I love where we are today and what the Reyes family is doing for the business. I think our customers — grocery stores included — will benefit from Reyes’ culture of integrity and commitment to excellence. And when you combine that with our strong local ties, great things can happen.”
Top to bottom, left to right: Michigan Market Unit President Matt Barribeau with Caledonia General Manager Robb Visscher at the Caledonia facility. To minimize the risk of employee injury and health problems, RCCB created a stretching program for employees. “It’s a great way to kick off each shift with a focus on safety,” Barribeau says. RCCB team members demonstrate the stretches on the poster, reminding everyone that they are all in it together. RCCB supplied this drone shot of the Caledonia facility, which has 100% LED lighting with occupancy sensors to reduce energy consumption and extend the life of light fixtures. While the new facility’s design was custom tailored for safety, wellness, employee engagement and efficiency, it also includes fun touches such as the Coke wave running through the interior planting scheme. MICHIGAN FOOD NEWS MARCH/APRIL 2022 11
At SpartanNash, our flagship exclusive brand, Our Family, was developed more than 115 years ago; the oldest and most well-established in the industry. The number one reason for this success and longevity is our commitment to keeping the customer first - listening, responding, performing. 2000+ SKUs currently available throughout the entire store Product quality guarantee for consumers Exclusive marketing support, including industry leading social media solutions Multi-tiered community support program Comprehensive merchandising program Associate engagement plan
SCAN HERE TO LEARN MORE
Contact Jim Gohsman (1-616-878-8088) | jim.gohsman@spartannash.com or Roger Delemeester (1-989-245-0337) | roger.delemeester@spartannash.com for more information.
Paul McGillivray
Senior Vice President of Sales and Marketing Busch’s Fresh Food Market
Y
ou joined Busch’s in September 2020. What are your main responsibilities? I oversee the buying, merchandising and marketing functions for all 16 stores.
that, there haven’t really been any surprises, but I am grateful for the dedication of all of the Busch’s associates, for going above and beyond as we — and the entire industry— continue to operate with all of the ongoing difficulties and challenges.
How has your experience prepared you for this role? I bring over 40 years of experience and knowledge in the retail food environment. For three years prior to joining Busch’s, I was self-employed as a grocery consultant where I worked with clients in the Midwest, including Busch’s, and in the greater Boston area, which is where I’m from. My projects focused on store concept development, store design, in-store program development, brand development and how to execute plans for growth and development at the store level.
What’s new at Busch’s in one of the areas that you oversee? We are really working to expand our deli grab-and-go prepared food offerings. Deli is one area in particular that has seen a big change in consumer buying behavior during the pandemic. Guests have switched from buying off of food bars to buying packaged prepared foods. There is less lunch business and more dinner and family-related meal opportunities to address in deli — so lots of moving pieces. We are also working hard on creating new bakery products, and we are having nice success with that.
Prior to consulting, I had a lengthy career in the Boston area with Roche Bros. Supermarkets, a chain of family-owned stores with a similar number of stores as Busch’s. I held numerous positions with them including serving as Vice President of Sales and Marketing for over 20 years. I was instrumental in developing Roche Bros. industry-leading prepared food, catering and perishable programs. I also co-led the team that developed the Brothers Marketplace small-store format.
What will you focus on in the coming year? The company will continue to update our stores — with a complete store update at our Dexter location along with many smaller projects at our other locations. In addition, we will continue to focus on the deli and bakery departments to look for unique product opportunities to really stand out.
Busch’s President Gary Pfeil served as President of Roche Bros. Did the two of you work together? Gary and I worked together for over 20 years at Roche Bros., in similar roles to those we have today at Busch’s. When Gary was President, I was Vice President of Sales and Merchandising. We have complementary skills and leadership styles. We share a dedication to providing a great shopping experience for our guests. What has surprised you the most about Busch’s in the year and a half that you’ve been there? I arrived at Busch’s during the pandemic, and we continue to navigate the uncertainties that the pandemic creates. Beyond
What is your favorite aisle in the grocery store? I always thought aisles were like kids — you can’t have favorites! But I am pretty partial to the in-store bakery for the creativity in product, in merchandising and in satisfying guest holiday and occasion needs. Bakery can be a unique point of difference for a store. It’s also pretty tasty! Give us a glimpse into the personal side of your life: Having lived in New England my entire life, I’m now enjoying discovering Michigan and the Midwest in general. I like to travel, and I look forward to post-pandemic travel opportunities. At home, we have two fantastic Samoyeds named Walter and Norman. They are one and two years old, which keeps life interesting! —By Lisa J. Reibsome, Editor MICHIGAN FOOD NEWS MARCH/APRIL 2022 13
New items available from Herbruck’s
s g g e r u o y e v lo and n w o e br e r f age c f o nd e l b d varie
gs g e e whit
ggs e n ow r b c i organ
we hold to the belief that “our hens are our best friends.” when you treat hens with the respect and kindness they deserve, they’ll do what they were created to do - lay nature’s perfect food. well-cared-for hens are given the right to do hen stuff congregate, exercise, roost, scratch and even fly short distances.
herbrucks.com
Michigan food banks need dairy, produce and protein By Juliana Ludema, Communication and Marketing Specialist, Feeding America West Michigan
In Michigan, seven Feeding America member food banks serve the state by gathering food — much of which is reclaimed — and distributing it via partner food pantries and meal programs to neighbors experiencing food insecurity.
volunteers. Then, it’s quickly distributed through a mobile food pantry (essentially a farmers market on wheels) or “ordered” by one of our hunger-relief partners. Finally, it’s taken home by families in need.
Our food bank, Feeding America West Michigan, serves 40 of Michigan’s 83 counties — from the Indiana border north through the western half of the state and the entire Upper Peninsula.
Alternatively, some stores donate a percentage of the food they source or help our food bank in other ways, such as doing round-ups at the register or becoming corporate partners.
Every year, we work with our 800-plus hunger-relief partners to distribute an average of 21 million meals’ worth of food. Without support from organizations across the food supply chain, this work would not be possible.
Food Supply Chain Challenges Over the last two years, challenges in the food supply chain have created an ebb and flow of donations to the food bank. Right now, our shelves are full, but we don’t have as much variety as we would like, especially when it comes to produce, dairy and protein.
Partnering with Food Retailers When food retailers have a product they can’t sell — either due to a surplus or it’s nearing expiration — they call us to donate it. We then arrange for it to be dropped off or picked up. Once at our warehouse, the food is inspected and, if needed, it is sorted and often repackaged by reclamation
We aim to distribute seven main produce items — apples, cabbage, carrots, onions, potatoes, sweet potatoes and seasonal produce — because they’re heart-healthy, have a long shelf life and can be prepared in a variety of ways. However, of these seven, we’ve only consistently been able to source potatoes and onions lately.
How Food Retailers Can Help n Get started by reaching out: If you are interested in supporting our food bank through food donations, please visit FeedWM.org/donate-food to learn how, or reach out to Jerry Knapp at JerryK@ FeedWM.org or (616) 432.6970. To learn about corporate partnerships or to discuss round-ups at the register, contact Susie Dutcher at SusieD@FeedWM.org or (616) 432.6972. n Remember fresher is better: Lately, our food bank has received more donations of items that are too far gone and we can’t distribute them. Please check for freshness before you donate. n Consider donating funds or a portion of the food you source. It’s most helpful when retailers designate a portion of their product to us each month (e.g. 1%) or donate funds — we can turn $1 into 4 meals! No matter how you choose to get involved, or whether you support Feeding America West Michigan or another food bank, know that every action makes a difference. Please reach out today.
MRA’s 2022 legislative goals aim to make it easier for retailers to do business in Michigan In February, MRA published its “2021 Year-End Legislative Report,” which recaps last year’s legislative wins for retailers and previews 2022 legislative priorities. It also includes an election preview, a state COVID timeline, a table of all the bills MRA tracked that saw movement and other items.
form the state’s bottle deposit law. This archaic, 46-year old law frustrates nearly everyone from retailers and distributors to environmentalists and recyclers.
In 2022, MRA will focus on the following legislative issues, in addition to numerous other issues as they come up.
“While grocers know that our first choice would be to repeal the law, COVID has created an opportunity to make headway on some much-needed, reasonable reforms in the short term,” says MRA’s Amy Drumm, senior vice president of government affairs.
Reforms to the Bottle Deposit Law MRA has had serious conversations with grocery members, policymakers and other stakeholders about the need to re-
In 2022, MRA will look at increasing store-level flexibility around cleaning and staffing challenges while seeking investment in community infrastructure
to reduce the volume of deposits handled in stores. “Lots of ideas are on the table,” Drumm says, “and we’re reaching for the sky in terms of improvements to make a bad law less difficult today while setting the stage for a new way of recycling in the future.” Make certain COVID flexibilities permanent Still in the drafting stages, MRA is working with lawmakers to make permanent the temporarily granted pharmacy flexibilities under Public Act 324 of 2020. continued on page 16
MICHIGAN FOOD NEWS MARCH/APRIL 2022 15
MRA’s 2022 legislative goals continued from page 15
However, like most things involving the Michigan Public Health Code, nothing is as easy as it seems. To make the changes properly, several sections of the law need to be revised. And that is taking some time to draft. Fortunately, PA 324 of 2020 retains these flexibilities as long as any state-health-department-issued epidemic order on COVID remains in place. Several orders regarding testing, healthcare settings and long-term care facilities will likely remain for the time it will take to get these changes introduced and approved. Reduce organized retail crime MRA had some great discussions with policymakers in 2021 on efforts to reduce organized retail crime, and there are three steps we’re pursuing to meet that goal. First, we’re working with Attorney General Dana Nessel’s office to create a Business Protection Unit and an Organized Retail Crime Task Force to ensure that law enforcement and retailers share information and work closely together. Michigan already has an Organized Retail Crime Advisory Board, but a task force would be able to share more detailed information and won’t be subject to the Open Meetings Act. MRA is working with the administration and the Legislature to secure federal funds to create this unit. It’s expected that the unit will be able to use forfeiture to fund itself going forward.
16 MARCH/APRIL 2022
MICHIGAN FOOD NEWS
Second, to make forfeiture easier while adding further deterrents and penalties for Organized Retail Crime (ORC) violations, MRA worked with Sen. Jim Runestad (R-White Lake) to introduce Senate Bill 691. This bill would add the crime of ORC to the racketeering statute. This would allow for additional penalties to strengthen ORC laws. Third, we’re working with a bipartisan group of lawmakers on House Bills 5485-5487 to include some verification tools for third-party vendors who sell via online marketplaces and to include more reliable ways to report/remove suspicious listings. These changes should be reasonable and not overly burdensome while providing law enforcement an opportunity to follow up using reliable information. Top 2021 law changes retailers need to know 1. No sales tax on feminine hygiene products as of Feb. 3, 2022. 2. Prepaid 9-1-1 fee increases to 6% on March 1, 2022. 3. Military experience now qualifies for a CDL. 4. 2021 personal property tax obligations are simplified. 5. Cigar taxes remain capped at 50 cents permanently. 6. Personal property tax exemption threshold increases for 2023. 7. State and local tax deductions apply to all businesses.
DeYoungs sell Big Top Market Steve and Wendy DeYoung have sold their grocery store in Wyoming to Avin and Devone Yelda. The store’s name will change from Steve DeYoung’s Big Top Market to Big Top Wyoming. Avin and Devone also own a Great Giant Supermarket in Grand Rapids, which was formerly a Duthler’s Family Foods.
Steve and Wendy have worked more than 50 years in the grocery business. In fact, they met when Steve worked for Gordon Food Service and called on the Felpausch Food Center where Wendy worked. Steve also worked for two grocery stores, Eberhards and Jewel, before buying his own store. He is a graduate of Western Michigan University’s Food Marketing Program.
Wendy and Steve DeYoung at Big Top Market in 1988. In 1987, Steve and Wendy bought Lou DeYoung’s Market Basket from Steve’s dad, Lou DeYoung and changed the name to Steve DeYoung’s Big Top Market. Now, 35 years later, Wendy reports that it is time to retire. “We have a home in Florida and are looking forward to new adventures,” she says. “We plan to spend more time with family since we will no longer be working 12-hour days.” Best of luck, Wendy and Steve!
MRA more than doubles scholarship amount Michigan Retailers Association is increasing the monetary award of its annual scholarship program for the 2022-2023 academic year. Established by the Michigan Retailers Foundation to benefit MRA members, the association is more than doubling the amount of each scholarship from $1,500 to $3,500 and will award 12 scholarships. “Our members and our board recognize the escalating cost of higher education and believe the increased amounts will alleviate some of the financial burden placed on families today,” says MRA President and CEO Bill Hallan. “We are thrilled to offer this enhancement to our scholarship program and thank our members, 5,000 businesses strong, for their continued support.” Scholarship Qualifications: n Dependent sons and daughters of owners or full-time employees who will have at least one year of employment at an MRA member business as of Jan. 1, 2022, (must have begun employment by Jan. 1, 2021); OR
n Part-time employees who are full-time students and will have at least six months employment at an MRA member business as of Jan. 1, 2022 (must have begun employment by July 1, 2021). Recipients are selected based on the student’s academic credentials and extracurricular activities, including, but not limited to, retail employment. Financial need is not considered. The scholarships may be used at any accredited nonprofit college, university or approved educational and professional training institute in the United States. Current high school seniors, college freshmen, sophomores and juniors are eligible to apply. Please make the program known to all of your Michiganbased employees as soon as possible. Students may apply online at Retailers.com under the Member Benefits tab. The deadline to apply is April 1. There are no fees to apply. Questions? Contact MRA’s Rachel Schrauben at rschrauben@ retailers.com or (800) 366.3699, ext. 346.
MICHIGAN FOOD NEWS MARCH/APRIL 2022 17
Governor signs prescription drug bills
Retail’s Night Out mark your calendar
Thursday, June 9 Lansing Center & Lansing Brewing Company In-the-know speakers Cocktail reception and strolling dinner Fun and games Sponsorship opportunities are open. Contact Amy Drumm and adrumm@retailers.com
Gov. Gretchen Whitmer signed House Bills 4348, 4351 and 4352 to lower the costs of prescription drugs, ensure that pharmacists can provide honest advice to patients about treatment options and hold pharmacy benefit managers (PBMs) accountable. Of particular note to MRA members with pharmacies is HB 4348, now Public Act 11 of 2022, which provides for the licensing of pharmacy benefit managers in Michigan by the Department of Insurance and Financial Services (DIFS). The new laws: n Prohibit PBMs from “spread pricing” where PBMs drive up costs when reimbursing pharmacists for prescription drugs; n Prohibit PBMs from forcing pharmacists to sign “gag clauses” so that pharmacists can communicate openly and honestly with patients about options; n Charge DIFS with the responsibility of regulating PBMs licenses, and n Require PBMs to file transparency reports with DIFS to ensure Michiganders have access to information about the backend cost and profits of the medications they are prescribed.
Legislative Update
MRA is tracking the following bills which impact the food retail industry. Modernize Tobacco Products Tax Act: The House amended and passed Senate Bills 720-722, which would modernize the Tobacco Products Tax Act by allowing retailers or third-party carriers to deliver tobacco products. The bills would also increase all licensing fees for wholesalers, importers and vending machine operators to $200. Adulterated food – hemp: The House approved a package of bills, HB 5058-5061 and HB 5617, to amend the Food Law to provide compliance standards for industrial hemp that is added to food or dietary supplements. Cottage food regulations: The House Agriculture Committee held a hearing on HB 5617 and HB 5704-5705, which would allow the sale of cottage food products over the internet, allow for voluntary registration with the Michigan Department of Agriculture and Rural Development at no charge and require third-party carriers delivering food from a cottage food service establishment to go through food safety training. Sales tax exemptions: On Feb. 3, 2022, feminine hygiene products became sales tax exempt. Additional bills aiming to remove the sales tax from a variety of items are in various stages of the legislative process. This includes the following: n Pet Food —HB 5683-5684 to exempt pet food from the state’s sales and use taxes. ©2022 The Coca-Cola Company.
18 MARCH/APRIL 2022
MICHIGAN FOOD NEWS
n Incontinence products — HB 5611-5612 to exempt both infant and adult diapers from sales and use taxes.
What’s required for food product labeling? By Timothy Treadway, Senior Labeling Specialist, North Region, Michigan Department of Agriculture and Rural Development MDARD Food and Dairy Division Director Tim Slawinski turns his column over to Tim Treadway to address the important, but sometimes overlooked, topic of labeling. Grocers who repackage products for sale or create and package products in-house must follow labeling laws. Grocers should also know if items packaged out-of-house are properly labeled.
Proper food labels are required by law to help consumers make informed decisions about the products they purchase. While here are many legal requirements for labeling food products, this column will highlight the basic requirements for packaged foods. LABEL ZONES To understand food product labeling, you first need to understand the basic zones of a food label. The main area of a label is referred to as the Principal Display Panel (PDP), and this is the portion of the label that is most likely to be seen by the consumer at the time of purchase. The next zone is the Information Panel (IP), which is the label panel immediately to the right of the PDP. Due to the many different types of product packages in use, other options exist for the IP that will not be discussed here; but generally, the IP is located to the right of the PDP. LABEL REQUIREMENTS The first, and perhaps most important, label requirement is the statement of identity. This is the common or usual name of the food, for instance” tomato soup.” If a fanciful name is used (e.g., “Cracker Jacks”), then an appropriate descriptive name that is not misleading (e.g., “Buttery Popcorn, Nuts and Toffee”) must also be placed near the statement of identity. This information should stand out on the PDP.
Quantity Declaration The net quantity of the product must also be placed on the PDP. English and the metric equivalent are required. This statement is required to be within the bottom one-third of the PDP. Responsible Party The name and address of a responsible party must be conspicuous and may be placed on either the PDP or the IP. The responsible party may be the manufacturer, distributor or retailer. If the responsible party is not the manufacturer, then the name must be qualified by a term describing the relationship to the product, for example “Distributed by (name).” Ingredients List A complete list of all ingredients contained in the product must be present on the IP. Ingredients must be listed in descending order of predominance by weight. Any ingredient that is itself composed of more than one ingredient (e.g., peanut butter) must have the sub-ingredients listed in parentheses after the ingredient. Certain spices may be listed simply as “spices.” Sell-by Date All packaged, perishable foods (those with a shelf life of less than 90 days) must be labeled with a recommended last day of sale consisting of the month and day. Explanatory terms may also be used (such as sell by, sell before, last date of sale, or other meaningful terms).
Color-coded twist ties or other non-date codes alone are not acceptable Nutrition Facts Finally, certain products may be required to have a Nutrition Facts Panel on the IP. This is a breakdown of serving sizes, calories and certain nutrients present in the food. It allows consumers to make informed choices regarding the percentage of Daily Values that a food provides, based on a 2,000 calorie a day diet. There are many exemptions to this requirement, along with a specific format for the information to be placed on the label. For more information, see the food labeling guide on MDARD’s website, michigan.gov/mdard. Label Specifics There are many legal requirements regarding the specific placement of all information on a product label, including type size, use of graphics, specific statements (e.g., “healthy”, “gluten-free”, etc.), along with divulging specific allergens including milk, eggs, wheat, soy, peanuts, tree nuts, fish and crustacean shellfish. Complying with all the requirements can get confusing, but fortunately MDARD has Senior Labeling Specialists who are able to help guide you. QUESTIONS? Contact MDARD’s Customer Service Center at (800) 292-3939 to connect with the Senior Labeling Specialist in your region. MICHIGAN FOOD NEWS MARCH/APRIL 2022 19
603 S. Washington Avenue, Lansing, MI 48933 (800) 366-3699 www.retailers.com
PRSRT STD U.S. POSTAGE PAID Lansing, MI Permit No. 846