During good times, it’s easy to keep a steady hand. But when life throws curve balls like the world has never seen, those steady hands can become shaky rather quickly. At Associated Wholesale Grocers, we have thousands of examples of strong, steady hands keeping grocery stores running, true purveyors of hope for our communities. And there are thousands of steady hands at AWG supporting those ESSENTIAL pillars of communities in the 28 states we serve. We’ve been constantly tracking how our industry is changing long before the current crisis and we’re focusing even closer on how the current situation will change things even more. We have long prided ourselves on the lowest cost of goods. But now, and in the future, our retailers need far more than that. Everything from e-commerce to merchandising, digital marketing to support as we navigate through this crisis together. We have helping, steady hands for every area of your store and have prided ourselves on being that steady hand for almost 100 years. Make the call sooner rather than later to learn how Associated Wholesale Grocers can provide you a lower cost of goods and a real chance to compete in the marketplace today and in the future!
For a lower cost of goods PLEASE CONTACT: Keith Knight 615-290-6093 Wayne Hall 608-347-7318
Dave McKelvey 713-876-6240 Diane Guerrero 262-806-1203
Associated Wholesale Grocers, Inc., 5000 Kansas Avenue, Kansas City, KS 66106
Food Retailers Summit on paper Earlier this year, we dreamed up a different spin on the traditional summit event and planned to host it in August. We’d hoped the change would engage members, boost attendance and get the association’s full retail membership involved. However, those plans are on hold until events can resume safely. This year, to keep you up-to-date, spark new ideas and relive some of the great moments from years past, we’re coloring outside the lines a bit and serving you unconventionally: The Michigan Food News is “hosting” a Food Retailers Summit on paper. In this issue: n You’ll get information and inspiration from in-the-know “speakers” MRA President & CEO Bill Hallan, MRA Vice President of Government Affairs Amy Drumm and grocery industry expert Brian Numainville, principal with the Retail Feedback Group. n There are workers’ comp program updates from both the Michigan Grocers Fund and Retailers Insurance Company. n Over the years, the fall gathering has been a time to build memories with activities unique to the event including euchure, cornhole and bocce tournaments. This issue aims to highlight some of those memories with photo galleries from these activities, capturing some the fun from the past several years. n Don’t miss the messages of thanks and encouragement from supplier partners throughout the magazine. We hope you benefit from and enjoy this issue as you continue to manage today’s new normal and, eventually, thrive in the post-pandemic world.
Association Update Bill Hallan, MRA President & CEO Twelve months ago, the MRA team was busy getting ready for the Food Retailers Summit at Crystal Mountain. It’s an understatement to say that a lot has changed in the last year. We’ve gone from planning events so we can get together to implementing social distancing measures so we can stay apart. It’s a bitter pill to swallow for a close-knit industry that thrives on the camaraderie of events like our popular golf outing and summit. As I’m sure is the case for your business, workflow during the pandemic has widely fluctuated. Some days have been massively chaotic while others are eerily quiet. Not only has the cadence of our work changed, but so has the nature of our duties. Safety, while always a top priority of grocers, has become an all-encompassing focus, and it’s gobbled up attention previously focused elsewhere. Government regulation has employees enforcing mask requirements and occupancy restrictions. In short, the industry had to adapt and do so quickly. The team at Michigan Retailers Association is also adapting. Although the governor’s social distancing guidelines required cancellation of this year’s summit, we’ve been busy working in other ways to serve the grocery industry. We hosted 20 webinars, covering topics such as how to deal with difficult customers in light of government restrictions and mask requirements. We rolled out our Ask us First campaign, answering hundreds of member questions about pandemic compliance.
We created a PR blitz to educate consumers about the bottle bill and suggest return alternatives to alleviate the stress on grocers from excess inventory. Although we weren’t planning an event to bring us together in-person, we’ve been working hard to keep the industry connected. Tuition-free education opportunities for essential workers Not everything about the pandemic is a negative. One positive element to come out of the pandemic is the Futures for Frontliners program, which offers free college tuition at Michigan community colleges to COVID-19 frontline workers including grocery store employees and other essential food workers. We have partnered with Gov. Whitmer’s administration to get the word out to frontline employees about this great opportunity. There is a short application window (Sept. 10-Dec. 31, 2020). We encourage interested individuals to take advantage continued on page 4 MICHIGAN FOOD NEWS
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Association Update, MRA’s Bill Hallan continued from page 3
of this program. Funding for the program comes from federal COVID-19 funds, and the application process is straightforward. To be eligible, employees must be a Michigan resident, have worked in an essential industry at least half time between April and June 2020, and have not yet earned an associate or bachelor’s degree. Time is short, so don’t wait. Visit www.michigan.gov/ frontliners for details, and be sure to share the information with all your frontline employees.
We are thankful for our partnership with grocers throughout the state and the critical role you play keeping Michigan fed! Michigan Apple Committee
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Buy Nearby Weekend We remain deeply committed to helping every MRA member succeed. That mission is at the heart of our statewide Buy Nearby campaign — the shop-local initiative to increase your traffic and sales. This year-round campaign designates the first weekend in October as “Buy Nearby Weekend.” Usually our popular mascot, Buy Nearby Guy, visits communities to encourage consumers to shop local; but this year the pandemic has him on furlough due to costume safety. While this year’s event will be slightly different, the celebration can still help increase your sales. Mark Oct. 2-4 as Buy Nearby Weekend on your calendar, and see the article, “Take advantage of upcoming Buy Nearby Weekend,” on page 19, for more information. You can also visit our website, buynearbymi.com, to join the fun and order free materials. In facing the pandemic, we’ve all come together to rally our greatest strength — our humanity. Through all of this we’re remembering what’s most important — the people in our lives, from our families and friends to our co-workers, colleagues, customers and communities. I have no doubt we’ll come back stronger, and I look forward to working with our advisory board to re-imagine future events.
Food Retailers Summit on paper Government Affairs Update Amy Drumm, MRA Vice President, Government Affairs It’s been a long year, and it’s only September. Grocers are incredibly resilient. Not only did you pilot and implement the safeguards that were eventually required industrywide — all while managing shifting requirements and huge increases in product demand — but each of you adapted to more change more quickly than I ever thought was possible. Today’s grocery store experience is far different than it was in early March. Each time a new requirement was proposed, MRA would explain to the administration the various obstacles to implement and the questions we needed answered to move forward. Meanwhile, the industry would forge ahead and meet each challenge head on, no matter how difficult it first appeared. That’s not to say it’s been easy. I know how hard these changes have been on all of your stores and employees; and I know what keeps you up at night. One silver lining to the COVID-19 cloud is that I’ve had the opportunity to get to know many of you better over the past few months. I’m glad so many of you see MRA as a resource and partner. My hope is you will all continue to lean on the association for help. That’s what we’re here for. I want to highlight some of the behind the scenes work MRA has done since March. In addition, I’ll share a few concerns the industry should continue looking out for and some legislative items on which we’re focused. Behind the scenes From our humble, home-based command centers, we focused our efforts on getting relief and clarity for retailers and sharing information as quickly as possible. Our Ask Us First team — led by our Communications and Marketing VP, our General Counsel and myself — tackled answering the many questions we received.
n Ensuring youth employees could work extended hours while out of school in March-June; n Easing restrictions on pharmacists by increasing access to prescriptions allowing emergency refills up to 60 days, permitting out-of-state pharmacists/pharmacies to do business in Michigan by honoring other state licenses, and lifting signature requirements for Medicaid; n Allowing substitutions of WIC-eligible products that were hard to keep stocked and ensuring stores would not be penalized for not keeping those products stocked due to panic-shopping; n Deeming bottle deposit takeback nonessential and advocating for more limits and flexibility when takeback resumed; and n Getting clarification for retailers on unemployment, work share programs, food safety inspections, license extensions, restrictions on sales and more. In addition we called for greater access to personal protective equipment (PPE) for frontline retail workers; sales and use tax filing relief; and loan programs. And we raised concerns with the administration and offered guidance to retailers about: continued on page 22
From March to May, MRA had nearly daily communication with the governor’s office and the administration, and we participated in several weekly calls with state leadership to share info, express concerns, ask for clarification/guidance, and request assistance for you — our members. We successfully advocated to loosen regulations on critical infrastructure businesses including: n Lifting seasonal weight restrictions on trucks hauling food and other needed supplies;
We miss seeing everyone at association events, but fully understand and support the importance of keeping everyone safe. Thank you for your continued trust in us! The Arctic Glacier Team MICHIGAN FOOD NEWS
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Message from MDARD Director Gary McDowell
Michigan’s Retailers and Food Distributors are Frontline Heroes: On behalf of consumers across our state and the employees of the Michigan Department of Agriculture and Rural Development, THANK YOU! In early March, all our lives changed drastically and unexpectedly as a worldwide public health emergency descended upon us. During this time of crisis, as we all tried to figure out how to respond to COVID-19, the food and agriculture sector — and more specifically the retail grocery industry — was greatly affected. During a time of great uncertainty, you rose to the challenge. Despite disruptions in the food chain, Michigan retailers, their stores and their employees continued to provide an essential function for us all and you truly are heroes. What we once took for granted as routine — shopping at a grocery store — has fundamentally changed. Throughout this time, you have continued to adapt to ever-changing conditions and requirements, taking extra steps to keep your customers and employees safe and healthy. You provide a source of much needed supplies, including fresh, wholesome, and safe food. You have kept store shelves stocked to the best of your ability as demand for certain products skyrocketed. Finally, you have helped us adapt to a new way of life by providing a sense of order in otherwise uncertain times. I recognize this has not been easy and has placed physical, emotional and financial burdens on those who have shown up for work, day in and day out, to do their critical jobs. Your resilience throughout has been amazing and we are forever grateful. We have relied on you, and you have not let us down. Thank you for everything you have done and for everything you continue to do to help get Michigan through this crisis. Sincerely,
Gary McDowell Director, Michigan Department of Agriculture and Rural Development 6 SEPT/OCT 2020
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Food Retailers Summit on paper Brian Numainville, The Retail Feedback Group Brian Numainville, principal with the Retail Feedback Group (RFG), shares insights to help grocers strategize for the coming months. In his role at RFG, Brian partners with retailers, wholesalers, other businesses and nonprofits throughout the U.S. to design and conduct voiceof-customer programs, consumer research, employee surveys, stakeholder studies, B2B surveys, custom research and market analysis projects. RFG recently took a deep dive look at both online and in-store supermarket shopper behavior during the COVID-19 pandemic, and Brian shares the results of that research here.
The world has changed significantly this year. Our normal holiday planning cycle in the grocery industry has been disrupted by a pandemic that, among other things, impacted our supply chain, altered our assortment, and perhaps most importantly, affected our customers and how they shop. As we move into fall, it’s critical to consider some of the issues we may encounter as the pandemic continues. To help accomplish this, I’ll share results from RFG’s “2020 U.S. Online & In-Store Grocery Shopping Study,” and offer some insights into how these findings can help you prepare. Shoppers question supermarket safety In our study, slightly more than half (54%) of shoppers indicated they were highly confident that the food they purchased during the pandemic was safe to eat; and 44% said they were somewhat confident. However, that same confidence did not carry over to store safety: 67% of shoppers said they were somewhat or not at all confident that it was safe to shop in the supermarket. While that’s not great news for retailers, there are some positives on which to build. Shoppers identified several safety measures as being highly effective: n Having disinfectant wipes available for carts (76% rated as highly effective), n Having hand sanitizer available throughout the store (69%), n Providing gloves and/or masks for employees (68%),
Be prepared for stockpiling to resurface. n Removing self-serve food stations (64%), n Reducing hours to sanitize/clean the store (64%), and n Installing plexiglass barriers at checkout (62%). key takeaways: Grocers must gain back and maintain shopper confidence in the physical store environment. Make sure you are doing everything possible to reassure customers that their safety is your top concern. Use social media, ads and in-store signs to communicate the steps you are taking to keep them safe. At the same time, make sure all employees are trained in and adhering to required safety measures at all times. continued on page 8 MICHIGAN FOOD NEWS
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5 insights into pandemic grocery shopping this fall, continued from page 7 Be prepared for stockpiling to resurface Throughout the pandemic, shoppers stockpiled various items — such as toilet paper, baking products and frozen vegetables —at different times. Our research examined the level of products shoppers are keeping on hand now compared to their pre-pandemic stockpile.
For refrigerated products as well as some fresh categories, having a two-to-four-week supply appeals to the largest percentage of shoppers today. And, items with the longest shelf life — frozen, canned, boxed, personal care, paper and household products —are now being stocked by a majority of shoppers to last a few months or more.
n Meat and Seafood — More shoppers (55%) report keeping enough meat and seafood on hand for two to four weeks now versus pre-pandemic, where the highest percentage of shoppers (52%) kept a one-week supply.
Based on that national data and your own store data, grocers should plan their inventory accordingly, as these patterns will likely continue as the pandemic drags on.
n Produce — While the majority of shoppers (57%) still keep one week of produce on hand now versus their pre-pandemic shopping habits (73%), the number of shoppers who retain two to four weeks of produce has risen, up to 39% versus 25% pre-pandemic.
Shoppers make fewer trips, but spend more Shoppers mitigate the risk of exposure to others by shopping less often: Fifty-five percent of shoppers in our study reported that they were making fewer trips to grocery stores and buying groceries online less often as well. However, 51% revealed they were spending more per trip/online order. This tracks with the stockpiling data.
n Refrigerated/Fresh — Pre-pandemic, 61% of shoppers kept one week and 35% kept two to four weeks worth of refrigerated and fresh items in their homes. Now, more shoppers (50%) keep two to four weeks on hand. n Frozen — Pre-pandemic: The largest percentage of shoppers (47%) kept two to four week’s worth of frozen items on hand. Another 24% kept a few month’s supply, while 24% kept a week’s supply. Now, more people are stocking up on frozen food. While the largest percentage of shoppers (44%) are still keeping two to four weeks of frozen food, 38% are now stockpiling a few month’s worth of products, and 10% have just a week’s worth on hand. n Canned/Boxed — Before the pandemic, only about 28% of shoppers kept a few month’s worth of boxed and canned items on hand. Now, about 40% of shoppers report doing so. n Personal Care/Paper/Household — Pre-pandemic, 39% stocked a few month’s worth or more than a few month’s supply of these products, and now 57% do so. key takeaways: Overall, produce remains the least stockpiled category, which is not surprising given its shorter shelf life. But it’s worth noting that more shoppers are keeping a two-tofour-week supply.
Given fewer shopping occasions, it’s crucial to have a wellstocked store. Out-of-stocks not only result in lost sales, but also lead to lower overall customer satisfaction. Our study found that shoppers who experience out-of-stocks rate their overall shopping satisfaction as 3.93 out of 5, compared to a rating of 4.24 for stores where everything a shopper wants is in stock. So stock levels have a direct impact on shopper satisfaction, especially when people are making fewer shopping trips. key takeaways: While grocers may be experiencing less outof-stocks now than at the start of the pandemic, it’s wise to prepare for the holiday season by staying on top of buying opportunities in the categories prone to stockpiling as it’s likely that behavior will gather steam in the coming months. Also, look to partner more closely with suppliers to understand their plans to ensure product availability. Fill in gaps by finding additional supply sources now and plan for increased labor needs so you will be ready to adjust quickly to best serve customers and maximize sales during the busier holiday season.
Thank you to the Michigan grocers for your hard work and sacrifices during these unprecedented times. We hope our industry partners are staying safe and healthy, and we thank you for your business and support. The TOMRA Team
Feature outstanding service Online shopping experienced exponential growth during the pandemic. Our research found that 50% of in-store shoppers also ordered groceries online, whether for click-and-collect or delivery. This dual channel shopping was most prevalent among Gen Z (66%), Millennial (61%) and Gen X shoppers (52%), but it even occurred among Boomers (37%) and the Silent Generation (38%). And while 36% of all ages indicated this was the first time they had grocery shopped online, 20% of those online grocery shoppers indicated that they expect to buy groceries online less often in the next year.
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key takeaways: If you offer online grocery ordering, you likely learned a great deal this year about what demand is like in your market. You also know what could be done better. This fall, be proactive in preparing to alleviate some of the pain points felt by your customers. This may mean addressing any difficulty your customers had obtaining delivery or pickup slots as well as problems with product availability. If you haven’t already, make sure your online shopping system is customer-friendly. Does it provide delivery or pickup window availability up-front rather than after shoppers fill their carts? Think ahead about how you can obtain additional personal shoppers and consider cross-training employees for greater flexibility. And again, work closely with suppliers so you can anticipate supply-chain challenges. For grocers who do not offer online grocery ordering, it’s critical to go above and beyond with the services you do provide — doing all you can to best meet the needs of your customers. For example, grocers may be able to accommodate shoppers — especially seniors and high-risk individuals — by training staff to accept grocery lists via email or phone, shop for the customer and then provide curbside pick-up service. Be sure to take steps now so that you can offer or continue to offer this level of service for the upcoming holiday season. People make the difference At the time of our study, nearly four in 10 shoppers (36%) reported experiencing service from an employee who went above and beyond their expectations. Moreover, we found that positive employee interactions led to a stronger likelihood to recommend a store. One way to measure likelihood to recommend is by using the Net Promoter Score® (or NPS, which is a registered trademark of Bain & Company, Inc., Fred Reichheld and Satmetrix Systems, Inc.). NPS is a measure typically used to gauge customer satisfaction, and scores range from negative 100 to 100 based on customers’ answers to a single question.
Shoppers said providing masks and gloves to grocery store workers was a highly effective safety measure. While footing shifts as the pandemic continues, I recommend preparing for the holiday season by leveraging learnings from earlier this year. Take time now to evaluate what’s worked well and what needs to change. Then plan how to make those changes. While it’s never easy to step away from daily work, if you evaluate and plan now, you’ll be able to make better decisions quickly in the coming months. Keep in mind that, no matter what’s happening in the world, it really comes down to focusing on that which grocers have always excelled — providing a safe, clean shopping experience; keeping high-demand products in stock while dealing with the ebb and flow of shopping patterns; offering above-andbeyond service; and incorporating new capabilities as they become available. Here’s to a great holiday sales season! Brian Numainville can be reached at bn@retailfeedback.com.
Those shoppers who said that a store employee positively impacted their shopping experience, on average, gave a much higher NPS of 54.9 versus those who did not say an employee positively impacted their shopping experience (24.3). key takeaways: The more employees can provide above-andbeyond service during this challenging time, the more you will benefit from increased customer satisfaction and loyalty. Even now when stores are extraordinarily busy, remember to provide the small touches that create a memorable customer experience. Keep in mind that a high-service culture begins at the top. Store directors, managers and supervisors can lead by example. In addition, if frontline workers see that managers value their efforts to provide outstanding service, they are much more likely to make the effort to provide it.
While we miss seeing everyone at association events, we’re fully committed to all efforts to keep everyone safe and healthy. Thank you for your continued trust in us! The Star Truck Rentals Team MICHIGAN FOOD NEWS
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The Quality You Trust Quality Matters. It’s the very foundation that Koegel Meats was established upon over 100 years ago. Ingredients Matter. You’re probably familiar with our slogan: "Made Up to a Quality... Not Down to a Price". In fact, it's much more than a slogan - it's a promise. Koegel's products are still made using the same recipes and processes that Albert Koegel learned and developed over 100 years ago. Variety Matters. Koegel Meats produces over thirty different signature meat products - still under the leadership of the Koegel family. We're humbled and honored to have such a loyal following. Our Partners Matter. Thank You, Grocers & Retailers! Thank You, Suppliers & Vendors! Thank You, Michigan! On behalf of all of us at Koegel Meats...Thank You.
3400 Bristol Road, Flint, MI 48507
810.238.3685
Koegels.com
H.T. Hackney Euchre Tournament You either love Euchre or you’re wrong, according to this crowd The euchre tournament was an immediate success when it debuted at the 2018 Food Retailers Summit. By changing partners each round, summit attendees were able to network and have fun. While getting your hands on the trophy was the ultimate goal, these photos show that spending time with friends and colleagues had its own rewards.
H.T. Hackney’s Craig Diepenhorst with 2019’s winner Ken Lasher, Griffin Pest Solutions.
Did having the trophies next to the sign-up sheet encourage participation?
Euchre under the tent in 2018 at Crystal Mountain Resort.
H.T. Hackney’s Craig Diepenhorst with the 2018 winners: Ric’s Food Center’s Shane Smith and MRA’s Chris Smith.
Facing the camera in the foreground from left to right are Ron Larson and Bob Palmateer with Lipari Foods and Rich Cole with Leppink’s Food Center at the 2019 event.
By the tournament’s second year, the crowds were already lining up (behind SpartanNash’s Jim Gohsman) to play.
Grocers — thank you for your continued trust in us. Like you, we have had to maneuver around the impacts of this pandemic. Although we can’t gather in person right now, we’ll continue to do everything we can to help our business partners and communities stay safe and connected. We are all in this together, and we will get through it together. MICHIGAN FOOD NEWS
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ALWAYS RISING
TO THE
OCCASION.
At Aunt Millie’s, we know that customers crave the comfort of pantry staples. To keep your shelves full and freshly stocked, we keep rolling—delivering everyone’s favorite breads, buns and rolls, every day. Because our products are at the top of every family’s shopping list, your bread aisle becomes the first stop for many memorable meals. And together, we’re rising to the occasion.
AuntMillies.com
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Aunt Millie’s Cup Bocce Tournament Winning isn’t everything, there’s also bragging rights While the U.S. Bocce Federation reports that bocce is the third most popular sport in the world after soccer and golf, there’s no doubt it ranks first with this crowd. Whether played in a beautiful setting on a sunny afternoon, in a downpour with boxes for umbrellas, or at night under the lights — you could always count on fierce competition, camaraderie and a lot of laughter at the annual Food Retailers Summit bocce tournament.
2018 winners Todd Kennedy and Mike Smith with Polly’s Country Markets.
Mackinac Island’s Grand Hotel was the perfect location to play bocce in 2015.
The enthusiastic 2017 winners: Nick Beute with Herbruck’s and Bryan Neiman with Neiman’s Family Market.
Before the storm at Boyne Highlands: Gathering to hear the starting instructions.
Aunt Millie’s Mike Feutz and his wife, Lisa, put in many hours each year to make the bocce tournament a success.
Bocce players in 2017 at Crystal Mountain: (Center) Ford Kennedy with Polly’s Country Markets makes it look easy with his perfect throw.
“Play on” was the group’s rallying cry during the 2016 tournament’s rain storm. MICHIGAN FOOD NEWS
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Thank You!
During these unprecedented times, Michigan’s grocery industry continues to sustain our communities by providing life’s essentials. Michigan Retailers Association applauds the entire grocery industry for the vital role you play in providing a safe, stable and sanitary shopping environment and in keeping Michigan fed. Please read the words of support and encouragement from the following suppliers as well. Thank you for your continued trust in Great Lakes Coca-Cola. The safety of our employees, customers and communities is our top priority. We thank you for the critical role you play in the lives of all Michiganders.
On behalf of the Herbruck’s family, we want to show our support for our retailers, community and employees. We sincerely thank you for continuing to work diligently to provide healthy food during this unsettling time.
Thank you to all the essential frontline workers in the food industry. Lipari Foods is grateful for your work and proud to partner with you! We’ll get through this together. The Lipari Foods Team
SpartanNash is thankful for independent retailers and your support of the communities you serve. Locally owned business is the backbone of our culture, and we are proud to support you in your mission.
Miller Poultry would like to thank our employees, growers and retailers for their support and partnership during this critical time! The Miller Poultry Team
UBCR works in partnership with more than 600 Michigan retailers, recycling over 115 billion containers together since 1990. On behalf of everyone at UBCR, we sincerely thank you for your business, dedication and hard work during this stressful time. We appreciate the key role you play in keeping our state clean, stocked and fed!
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BMC Cornhole Tournament No CORNfusion here, these cornholers know how to have fun The association’s first cornhole tournament was played in 2015. As you can see from these photos from the last several years, summit goers were happy to have another opportunity to enjoy the outdoors, reduce stress, make connections and, of course, win a trophy. Randy Hoover and Steffen Nizinski with Great North Foods at the time of their win in 2016.
Arctic Glacier’s Dave Bismack warms up.
All smiles: Nick Buete with Herbruck’s Poultry Ranch and Chad Ott with Mehmert Store Services.
Dave and Theresa Bismack representing Arctic Glacier, sponsor BMC’s Bob Bauer, and Ron and Katie Thomas representing Bush Brothers took home the 2019 trophies.
2017 first-place winners Merrick Rosner with AppCard and Nate Neiman with Neiman’s Family Market flank event sponsor Bob Bauer and second-place winners Jim and Dawn Forsburg with Arctic Glacier.
2018 winners: Robert Leppink and John Cole with Leppink’s Food Centers.
Jacquelyne Leppink and Rich Cole with Leppink’s Food Centers look determined to sink all four bags for their teams.
Although we can’t meet face-to-face at this time, we look forward to brighter days ahead. BMC is committed to keeping your businesses up and operational during this difficult time. We appreciate everything grocers and suppliers are doing to make sure food and other essentials are available! MICHIGAN FOOD NEWS
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Food Retailers Summit on paper Michigan Grocers Fund Update Tim Hanna, President, RPS Regency – the Grocers Fund Administrators The Michigan Grocers Fund is a member-owned, self-insured workers’ compensation program that was organized in 2014. The Fund is regulated by the Michigan Workers’ Compensation Agency and guided by a volunteer Board of Trustees comprised of actual participants who are entrusted with the fiduciary responsibility of overseeing the Fund’s operation. Earlier this year, Rich Cole was named the new Grocers Fund Chairman after the Michigan Grocers Fund founding member and Chair Christy Kuhnke passed away. Rich joined the Fund in December 2017. Along with brother-in-law John Leppink, Rich owns four Leppink’s Food Centers, three Leppink’s Pharmacies, 10 Save A Lot food stores and one North Bank Hardware store. They also operate LCL Development, LLC, which is a property leasing company that currently oversees 30 active rental properties. Rich has been with Leppink’s for over 40 years. He holds a bachelor’s degree from Central Michigan University. On July 8, 2020, the Fund added Paul O’Donnell of Nino Salvaggio International Marketplace to the Board. Paul has been the Controller for Nino Salvaggio since 2006. Prior to that, he held various positions with companies in retail accounting, starting at Little Caesars, where he was an Internal Auditor, Accounting Manager and National Advertising Finance Manager, moving on to become Controller at Pro Golf, working with their company and franchise stores; and after that, he was Assistant Controller at Frank’s Nursery and Crafts where he helped implement their JDA Merchandise Management System. Paul graduated from the University of Dayton with a Bachelor of Science in business administration with a major in accounting. After graduation, he moved to Michigan, where he has resided for 30-plus years.
Rich Cole
“I am very excited to be joining the Michigan Grocers Fund Board,” Paul says. “Our team at Nino Salvaggio’s decided to join the Fund several years ago. We were impressed with their business model and cost saving plans. I think the fund has already saved Nino’s a significant amount of money, and I look forward to working with the rest of the board to advance it’s growth and success.” Paul O’Donnell Continuing Fund members include Kim Kennedy with Polly’s Country Markets; Curt DeVries with Harding’s Markets-West and Dave Duthler, formerly with Duthler’s Family Foods and now with AMRA Energy. The Fund was approved to distribute almost $500,000 of surplus premium on their 2020 renewal, representing an average credit of 41% off the premium that members paid in 2020. The 2021 profit return amount will be approved at the Fund’s Sept. 16 board meeting and reported in the November/December issue of the Michigan Food News.
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The Campbell Group proudly supports the retailer, manufacturing and distribution workforce that’s keeping Michigan and beyond stocked and fed. We’re looking forward to a time when we can gather again in some way. Thank you for your continued trust in us!
The Michigan Grocers Fund is sold and serviced by a carefully selected statewide network of independent insurance professionals with grocery industry experience. Fund participants must be members of Michigan Retailers Association. For more information, contact the Fund Administrator at (800) 686-6640.
In Memory of Lipari’s Bob Palmateer Longtime grocery industry supporter Bob Palmateer died earlier this year at age 66. Bob worked in packaging for more than 40 years, including 20-plus years with Lipari Foods. He loved his job and brought an obvious passion to everything he did. Over the years, Bob also brought a lot of fun to association events including the annual Food Retailers Summit. “Of the many ways we participate with the association, the fall event was Bob’s most favorite,” says Lipari Food’s Don Symonds. “Each year Bob would remind me for months about
making sure he was set up to attend and that all of the plans were buttoned up. It meant a lot to him.” Bob is pictured here at the event with his wife, Maureen, and with some of the gang from the annual bocce tournament — an activity he particularly enjoyed. We extend our condolences to his family as well as to everyone at Lipari Foods and throughout the industry. To read his obituary, leave condolences and share memories, see karrersimpson.com where you can search his name under the Obituaries tab.
“What we have once enjoyed deeply we can never lose. All that we love deeply becomes a part of us.” – Helen Keller While we don’t know what the future holds, Lipari Foods looks ahead with hope to a time when we can all gather in person again.
State seeks retailers for online SNAP program Online grocery shopping has increased dramatically throughout the COVID-19 pandemic. However, for the 44 million Americans who use the Supplemental Nutrition Assistance Program (SNAP) benefits to augment their food budget, this option is not widely available. In Michigan, SNAP participants can buy their groceries online at Walmart and Amazon. The state is looking for additional retailers to join the program.
sider joining the program. The FNS website, bit.ly/3hRBy0H, provides an overview of the online EBT participation requirements, which include that a retailer be SNAP eligible and have an online ecommerce presence. Currently authorized SNAP retailers should note that a separate FNS authorization will be required in to participate in the SNAP EBT online purchasing program.
In May 2020, the Michigan Department of Health and Human Services (MDHHS) implemented the online option for SNAP Electronic Benefit Transfer (EBT) purchasing through Amazon and Walmart. Both retailers were already approved by USDA Food and Nutrition Service (FNS), making it the quickest option to offer online SNAP shopping during the pandemic.
The site links to a technical document that addresses several questions and answers about operating the online program. In addition, it links to a “Request for Volunteers” document which has a templet letter of intent in Appendix B that retailers can use to submit to FNS their intent to become certified to accept online SNAP EBT purchases. Upon receipt of the letter of intent, FNS will work with the retailer to secure the necessary information for their application.
To date, the online option has had more than 90,000 transactions including more than $6 million in purchases. MDHHS wants to expand the online SNAP EBT purchasing program to other retailers in Michigan. The department asks that you con-
Questions? Contact Michigan’s SNAP Administrator Dawn Sweeney at SweeneyD1@Michigan.gov or (517) 243-5560. MICHIGAN FOOD NEWS
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Food Retailers Summit on paper Retailers Insurance Company Update MRA members have another strong, Michigan-based workers’ compensation insurance option in addition to the Michigan Grocers Fund. Almost 40 years ago, Michigan Retailers Association established its own group self-insured fund to provide lower-cost, quality workers’ compensation insurance for retail businesses. To provide greater benefits to policyholders, the fund eventually was converted to a mutual insurance company, and it is now the Retailers Insurance Company (RIC). RIC offers workers’ comp with low minimum premium requirements and discounts for best practices. Policies have a $2 million employers’ liability limited — compared to the standard $500,000 — and include $100,000 in protection if a business bank account is breached, plus $2,500 in cyber extortion protection. Several payment programs are available, based on the premium size. Regardless of the program, there is no service fee — even if you pay your premium over the course of a year. In 2019, Retailers Insurance achieved solid growth: n The company’s admitted assets grew to $25.2 million, an increase of 8% over the previous year. n The surplus grew to $11.7 million from $10.8 million. n Premiums earned as of Dec. 31, 2019, were $9.9 million compared to $9.3 million in 2018.
n The policy count increased from 1,536 in 2018 to 1,579 in 2019. n The average new policy size grew from $5,598 in 2018 to $5,749 in 2019. Growth was driven primarily by increased sales of premium and solid underwriting. The program achieved a combined ratio of 94.3, while reducing its surplus note and paying down interest on the note. In addition, 2019 was the fourth consecutive year RIC produced a combined ratio below 100, which was the first time in RIC’s history to do that four years in a row. Thanks to great financial stability, it maintained the Demotech financial rating of “A Prime — Unsurpassed.” This rating is assigned to insurers who possess unsurpassed financial stability that comes with maintaining positive surplus for policyholders, liquidity of invested assets, an acceptable level of financial leverage, reasonable loss and loss adjustment expense reserves, and realistic pricing. RIC is proud of the efforts to achieve this designation. RIC continued to make technological advances including improvements to AgentQB, which is the online quoting and policy issuance system. The company also seamlessly transitioned its team members to a remote working environment as the COVID-19 pandemic hit, providing smooth, continuous service.
Thank you to grocers and suppliers as you continue to serve people when it’s most needed. We’re here with you and look forward to continuing to serve you as we come through this difficult time. The Retailers Insurance Company Team
MRA creates Al Kessel Memorial Scholarship Starting in 2013, the ceremony for the Al Kessel Outstanding Achievement Awards was held during the opening night of the fall conference. The award was created to memorialize former MGA Director Albert Kessel, Jr., who founded the Flint-based Kessel Food Market chain.
As announced earlier this year, going forward, MRA will recognize a deserving student in the form of a scholarship, rather than giving out an industry award. The scholarship fits well with Al’s philosophy: “from those who are blessed, much is ex18 SEPT/OCT 2020
MICHIGAN FOOD NEWS
pected.” Al was known for giving back to the community, having established the Kessel College Fund for Kessel associates, a summer basketball camp for inner-city youth and more. This past May, for the first time the new Albert (Al) Kessel, Jr. Memorial Scholarship was awarded to two students as part of the Michigan Retailers Association scholarship competition. Please see the July/August issue of the Michigan Food News for more about the winners. You can access Michigan Food News issues at retailers.com, under the News/Events tab.
Grocers added to MRA boards Meijer’s Kim Edsenga was elected to the Michigan Retailers Association board of directors at the August 2020 meeting. Edsenga is Managing Counsel and Director, Compliance. She holds a Bachelor of Business Administration from the University of Michigan Ross School of Business and a Juris Doctor from the University of Michigan Law School.
Edsenga
Before joining Meijer in 2014, she spent eight years in private practice at two Chicago firms, specializing in borrower-side private equity finance transactions. At Meijer as Managing Counsel, she oversees a legal team supporting Meijer’s retail operations, pharmacies and finance business units. Currently operating over 250 supercenters and grocery stores throughout six Midwestern states, Meijer employs more than 70,000 team members. As Director, Compliance, Kim is responsible for social compliance, licensing, corporate policies and record retention/information classification.
Earlier this year, SpartanNash’s Meredith Gremel was elected to serve on the Michigan Retailers Services Board, which is the wholly owned subsidiary of MRA that provides profit-boosting membership services to association members. Gremel is responsible for corporate communications for SpartanNash’s 19,000-plus associates, four service centers, 19 wholesale and military distribution centers, and more than 150 retail stores.
Gremel
She also oversees SpartanNash’s corporate responsibility initiatives including driving social impact through local economic development, diversity and inclusion, philanthropic investing and a companywide volunteer program. Gremel joined SpartanNash in 2014 and also facilitates government affairs impacting distribution, retail and service center states. She holds a bachelor’s degree from the University of Michigan.
Take advantage of upcoming Buy Nearby Weekend
Michigan Retailers Association encourages grocers to participate in the upcoming Buy Nearby Weekend, Oct. 2-4, to create shopper excitement and grow sales. The Buy Nearby campaign is Michigan Retailer’s shop-local initiative to educate consumers about the importance of keeping their money in the Mitten — and make them feel good about doing it. The campaign runs throughout the year but is formally celebrated during the first weekend in October, called “Buy Nearby Weekend.” Although retailers won’t be able to schedule a visit from the Buy Nearby Guy mascot this year, MRA will still supply free materials including bag stuffers with information and stats on how buying local is important to our state and downtowns, coloring books, Buy Nearby bags and a few other items— all free thanks to the generous sponsorship of DTE Energy and Retailers Insurance Company. Buy Nearby supporters who are MRA members will also get a 16-oz bottle of Michigan-made hand sanitizer and 25 seed packets to hand out to favored customers as a thanks “for growing our business.” In addition, MRA will help you promote your event on social media. Visit buynearbymi.com where you can download several social media banners, and images your sites.
The Buy Nearby Toolkit for retailers includes this poster to help explain to shoppers the impact of shopping local.
You can also promote a fun contest that is part of this year’s event: As an extra incentive to buy nearby, one shopper will earn a $500 gift card. Customers just need to take a selfie while shopping at your store or take a photo of their purchase during the weekend; post it to Twitter, Facebook or Instagram using the hashtag #buynearbymi, and they are automatically entered. The winner will be chosen the following week in a random drawing. Contest directions to hand out during Buy Nearby Weekend are included in your Buy Nearby packet. To request materials, email rschrauben@retailers.com by Sept. 20 to ensure delivery by Oct. 2. MICHIGAN FOOD NEWS
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MDARD News
Disinfecting your business during the pandemic or offering disinfection services? MDARD’s Pesticide Section weighs in with important considerations By Molly Mott, Pesticide Enforcement Specialist Michigan Department of Agriculture and Rural Development, Pesticide and Plant Pest Management Division These last few months, the Michigan Department of Agriculture and Rural Development (MDARD) has spent an incredible amount of time shifting gears to join the fight against SARSCoV-2, the novel coronavirus that causes COVID-19. In the Pesticide and Plant Pest Management Division, we adjusted inspections to allow for less in-person contact, shifted project priorities, distributed masks and gloves, created hand sanitizer in our lab and delivered it to staff, moved to virtual meetings, developed new private and registered applicator exam options, and more. Disinfectants are pesticides In addition to changing our internal procedures, we also provided outreach and education about disinfectants. It surprises many people to discover that disinfectants are in fact pesticides, because pesticides are defined in state and federal law as substances that prevent, destroy, repel or mitigate pests. Because sanitizers and disinfectants claim to kill viruses, bacteria, fungi and other microorganisms, they are pesticides, and MDARD plays a role in regulating their use. Throughout the remainder of this column, I will use the term “disinfectant,” but the information applies to sanitizers, disinfectants, antimicrobials, disinfecting surface wipes, bleach with disinfecting claims, etc. All should have a U.S. Environmental Protection Agency (EPA) registration number (“EPA Reg. No.”) on the product label.
Are you disinfecting your business? Many businesses have turned to surface disinfection as a tool to help ensure a safe working environment. First and foremost, businesses must ensure you have chosen a disinfectant that the EPA identified as suitable for use against SARS-CoV-2. Since many disinfectants will not yet have updated labels that specifically state that they can be used against SARS-CoV-2, approved products can be found on EPA’s “List N” available on the EPA website, epa.gov. You have probably heard the phrase “the label is the law” for pesticide use. That holds true for disinfectants. Be sure to read and follow the label and confirm the surface you treat is listed on the product label. For example, if you treat bathroom fixtures at your business, ensure the product label has directions for disinfecting hard, non-porous surfaces. The application site should also be listed on the label — particularly if you are disinfecting around food preparation areas. Follow the correct set of “Directions for Use” instructions on the product label. As labels may not yet provide directions for coronavirus disinfection, again refer to EPA’s “List N,” click on your product and see what pathogen is listed under the phrase “follow the disinfection directions for the following pathogen(s).” For example, if “norovirus” is listed, follow the directions for norovirus disinfection on the product label. Train your staff to ensure that the product remains visibly wet on treated surfaces for the required amount of time as listed on the label. You may have to reapply if it dries before the time is up. In addition, wear required personal protective equipment according to the product label and state minimum requirements (long sleeves, long pants, protective footwear and impervious gloves). Does use require certification? Application of a general ready-to-use pesticide (does not say “Restricted Use Pesticide” on the label and can be applied from its original container without any mixing or loading, such as an aerosol can) does not require certification. Application of a “Restricted Use” disinfectant always requires certification.
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Lastly, application of a general use, non-ready-to-use pesticide depends on several factors: n If the application occurs indoors, with no potential for movement to affect surface or groundwater, then no certification is required. n If there is potential for movement to affect surface or groundwater (typically outdoors, to cooling towers, or in ventilation system with discharge piping to exteriors), then certification is required. Do you offer disinfection services to your customers? If your business offers disinfection services for hire, you may need a Pesticide Application Business License (PABL) issued by MDARD: n A PABL is required when applying “General Use” disinfectants outdoors, to cooling towers or when there is potential for movement to surface or groundwater. An example is spraying sidewalks with a disinfectant. n A PABL is required when applying “Restricted Use” pesticides regardless of where the pesticide is applied. n A PABL is not required when applying “General Use” disinfectants indoors if there is no potential for movement to affect surface or groundwater. If your business needs a PABL, then your applicators will need certification in category 5B, Antimicrobial Pest Management. Being a licensed business further means that you must follow the pesticide use requirements found in the Natural Resources and Environmental Protection Act (Act 451 of 1994, Part 83, Pesticide Control), Regulation 636, and Regulation 637 — requirements such as recordkeeping, providing specific information to customer, vehicle identification and more. Contact your local inspector for details. Shady disinfectants! When you choose a disinfectant, keep EPA’s List N in mind. Choosing a misleading, untested or unregistered disinfectant could result in a false sense of protection or worse, such as inhalation or contact exposure issues. If you see any of the following for sale, contact your local inspector: n A disinfectant without an EPA Registration Number claiming it kills coronavirus. n A disinfectant advertising it is safe for children and pets. n A disinfectant claiming it kills COVID-19 (which is the disease, not the virus). n A product labeled as a disinfectant AND a hand sanitizer (hand sanitizers are regulated by the Food and Drug Administration; surface sanitizers are regulated by the EPA). n Disinfectants for sale or for free, taken out of the manufacturer’s original container. Get more information by visiting www.michigan.gov/mdardpest or call us at (800) 292-3939 to get connected with your local PPPM inspector. Stay safe and stay sanitized!
Bill introduced to stop UI taxable wage base increase Michigan’s unemployment compensation fund dropped below $2.5 billion in June, triggering an automatic tax increase for employers starting January 2021. Current law requires that the taxable wage base increase from $9,000 to $9,500 for each covered employee if the balance falls below $2.5 billion by June 30.
Rep. Matt Hall (R-Marshall) introduced House Bill 6136 on Sept. 1 to temporarily suspend this triggered increase. The bill would amend the Michigan Employment Security Act so that the trigger does not apply if the fund’s shortfall is due to a statewide emergency declared under the 1945 Public Act 302 or the Emergency Management Act and forces businesses to close. Rep. Hall, who chairs the Joint Select Committee on the COVID-19 Pandemic, said recent testimony from UIA and local business owners raised concerns about the fund and spurred him to offer the needed protections within legislation. HB 6136 was referred to the House Commerce and Tourism Committee for consideration. MICHIGAN FOOD NEWS
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Government Affairs Update continued from page 5
n Potential restrictions such as capacity limits and limits on “nonessential” purchases. n Varying local enforcement of regulations and the confusing patchwork of employee screening orders issued by local health departments. Looking ahead: Enforcement and liability The current challenge centers on how regulations and requirements will be enforced. MRA believes in and will always tell members to follow state requirements and rules. We understand that it can be challenging when there are multiple entities seeking to enforce various requirements, so we are working to ensure each agency and inspector interprets the rules the same way. There should always be a thorough investigation process before a citation is issued and an appeal process for complaints/violations. We also aim to ensure that retailers who follow the requirements in good faith will not be penalized for doing so. Retailers should only be judged on the requirements that were in place at the time of an action. The state should not use September science and orders to judge your actions from March and April. We are arguing that retailers should be protected from lawsuits, citations and the like if you were following the requirements of the time and the information that was known at the time to best protect the health and safety of employees and customers. There are MRA-supported bill packages in the Michigan House and Senate that seek to offer these protections. Businesses would not be protected if they egregiously or blatantly violate the requirements, such as forcing a worker to report to work if that person is sick. The bills had an initial hearing the first week of September, and we expect they will receive serious consideration later this month. Recycling MRA also launched a PSA campaign to help use the lessons we learned about bottle and can takeback to shift consumer attitudes towards recycling these containers in a more efficient way. The pandemic has made it more noticeable that taking back dirty containers to grocery stores does not make
sense, and we are working to use that sentiment while it’s still top of mind. If you haven’t already, check out MICanRecycle.com. The social media campaign runs for a few more weeks reminding consumers that they can recycle their containers curbside instead and asking for their patience while returning containers to the store. Uncertain Future While I wish more than anything that the COVID-19 pandemic was behind us, it’s important to realize we may have a way to go yet before a vaccine is available, and we can take down all the plexiglass barriers and remove our masks. Should we experience another shutdown, we’ve learned what does and doesn’t work and can better advocate for a smoother transition. If you have not shifted your operations to offer more remote purchasing options and curbside pickup, do it today — not tomorrow, not next month, right now. MRA firmly believes retail can and will continue operating safely. The outbreak data released by the state shows retail shopping is an extremely safe activity that does not involve close contact with others for extended periods of time. We have requested more detailed data via the Freedom of Information Act to more clearly prove retail is safe, and we hope to receive that soon. Hang in there, let us know how we can help and what you’re hearing on the ground. Please know that we can tackle this challenge together and come out stronger on the other side.
Michigan Grocers Division Advisory Board Michigan Grocers is a division of the Michigan Retailers Association
William J. Hallan, President Michigan Retailers Association Rich Beishuizen Country Fresh Craig Diepenhorst H.T. Hackney Dave Duthler AMRA Energy
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Jim Forsberg Arctic Glacier Premium Ice Jim Gohsman SpartanNash John Leppink Leppink’s Food Centers Ken McClure Kroger Company of Michigan
MICHIGAN FOOD NEWS
Bryan Neiman Neiman’s Family Market DJ Oleson Oleson’s Food Stores Don Symonds Lipari Foods Thom Welch Hollywood Markets
William J. Hallan Publisher Lisa J. Reibsome Editor, Layout & Design, Ad Sales (517) 449-2256 MGAReibsome@comcast.net
Publisher does not assume responsibility for statements made by advertisers in business competition. © MICHIGAN FOOD NEWS 2020
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