2022 Cardenas Markets IOY, HOF Sanders

The Shelby Report of the West congratulates

2022 West Innovator of the Year and Doug Sanders

Food Industry Hall of Fame inductee

Ongoing innovation has helped grocer adapt to change

Includes store remodels, enhanced technology, improved productivity

Cardenas Markets, The Shelby Report of the West’s Innovator of the Year, began as a family-owned company in 1981. Jesús Cárdenas Sr. and his wife, Luz, co-founded the chain, which offered fresh, authentic Hispanic foods to communities across southern California’s Inland Empire.

The company has since grown to become one of the country’s largest Hispanic grocery chains, with a differentiated store concept serving the fastest growing demographic in the country.

Over time, the success of the Cardenas family caught the attention of two separate entities, KKR and Apollo, both global investment firms. KKR acquired the Cardenas business in 2016, and in June of this year, Apollo announced that it had agreed to acquire Cardenas from KKR.

Upon completion of the transaction, Apollo combined Cardenas Markets with

Tony’s Fresh Market, a Chicago-based ethnic grocer, to create Heritage Grocers Group (HGG), one of the leading Hispanic and ethnic focused grocers in the country.

Led by HGG Chairman and CEO Doug Sanders, both Tony’s and Cardenas will continue to operate under their respective brands and local leadership, while benefitting from greater scale, complementary capabilities and an expanded operating footprint.

Today, Cardenas Markets operates 65 stores in three states –California, Arizona and Nevada – and sources products from more than 500 different vendors. Sanders, who joined the company’s board of directors in 2018 and assumed the role of CEO in 2020, describes Cardenas as the most resilient company that he has been part of.

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“The company has endured a lot,” he said. “In a relatively short period of time, we completed multiple acquisitions, merged three different businesses, weathered a major cyber incident and worked through leadership changes all while navigating through the unknowns of a global pandemic.

“The pandemic highlighted how extremely hard our store teams work, and how dedicated they are in taking care of their customers, communities and each other during these unprecedented times.”

While dealing with the pandemic, the company itself went through major changes. The entire culture around Cardenas shifted as the senior executive team was rebuilt and the company restructured.

Sanders takes that cultural shift to heart. He believes in human interaction – not micromanagement. He spends a part of his morning and afternoons walking the floors of the company’s support center, visiting with co-workers. He’s fond of his “hallway conversations” and that is part of the reason he incorporated a hybrid work schedule at the company’s support center during the pandemic’s height rather than completely close.

Over the past two years, Cardenas began to look at the infrastructure of its stores and has set about an aggressive remodel program. It plans to have the final renovations completed within the next couple of years.

The scope of these updates varies by store. They can include exterior changes such as signage and paint, as well as interior renovations. The latter have a wider variety of changes, including bilingual directional signage, which Chief Operating Officer Prabash Coswatte said is critical for customers unfamiliar with the stores’ formats.

Other inside touches can include updating dining spaces, LED lighting and additional merchandising components such as improvements to shelf space and refrigeration.

Investment in technology has been Cardenas’ highest priority. When Sanders came aboard, he took the time to first understand the team members. He said he wanted to understand the complexity and challenges of their jobs then evaluate how their work experiences could be improved.

He noticed that simplifying work through policy and technology would be the best place to start, so Cardenas implemented several new systems including

2022 West Innovator of the Year

a new demand forecasting and automated replenishment system. It started off as a system for center store replenishment but has since expanded to other departments across the store.

During the pandemic, Cardenas experienced many of the same issues that many other grocers faced as panic buying became rampant and shelves could not get refilled quickly enough.

“Due to overwhelming demand, products were constantly moving around and misplaced, and subsequently shelf tags disappeared,” Sanders said. “Next thing you know, the store was unable to reorder products that corresponded with the missing shelf tags.

“A great point about the forecasting and replenishment system is that it doesn’t matter if you have a shelf tag or not. The system will automatically place an order for the product. That helped us ensure the integrity of our product offerings, to the greatest extent possible, during the weeks of panic buying at the onset of the pandemic.”

The pandemic also presented an unprecedented number of challenges and the shift in labor helped guide Cardenas to some new features.

“We’ve been implementing initiatives focused on improved productivity. We have added numerous selfcheckout registers over the past two years,” Sanders said. “From a labor shortage perspective, when COVID was at its peak, the only way you could get people checked out was through self-checkout. We haven’t been able to put them in fast enough, as they’ve been well received by our customers.”

The company has also worked to improve communication throughout individual stores, regions and the company as a whole via WorkJam. With the flair of a social media app, it brings together payroll, scheduling, company-wide communications and operations functions.

Cardenas began to roll out its e-commerce in early 2021 and can be found on eight different platforms today. It was also the first Hispanic retailer in the country to accept EBT for online purchases.

Cardenas’ history is steeped in Hispanic culture, and it shares that with its team members and customers.

While being bilingual is not a requirement, all store management across Cardenas Markets is fluent in English and Spanish, according to Sanders. This plays into his strategy to understand the team members and, by extension, customers.

“Understanding where the demographic shift is going is hugely important,” he said. “For us to engage and attract a broader range of customers, we can’t necessarily be Spanish only.

“When you look at our stores, we have English and Spanish signage. We’re broadening product assortment throughout the store.

“There is that mix of culture in every one of the stores and addressing the needs of our evolving customer base is how we continue growing.”

2022 West Innovator of the Year

WorkJam helps company share info, streamline tasks

Exec: ‘We plan to leverage this tool to maximize it to its fullest potential’

WorkJam is helping to bring Cardenas Markets into the future. The app is available to all employees from the CEO to grocery clerks.

“It’s a transformation going from old school – posters, flyers, sending communications via interoffice envelopes – to a digital workplace,” said Prabash Coswatte, the company’s chief operating officer.

He described the app as an “internal social media” through which team members from around the company can share product displays, manage finances, tasks and schedules.

The app is monitored and coordinated at the Cardenas Support Center. There, the support center can keep an eye on stores and stay updated on day-to-day operations within the entire company.

“As much as I’d like to, I cannot simultaneously visit every store. It’s not humanly possible,” Coswatte

explained. “I’m good and kept apprised of store happenings right on my phone. That’s something I can do. I can stay in touch with district managers, store managers, produce teams and store personnel from the convenience of my phone through this app.”

With the flair of a social media app, stores use the app to show off displays. There is a great amount of competition among them, according to Coswatte.

“Iron sharpens iron,” he said with a chuckle. “Team members take a lot of pride in the work they do and like to share it with other stores.”

The app breaks down communication through separate channels. Employees can access and get information from the channels most relevant to them, as well as company-wide updates. The company itself holds display competitions throughout the year, but stores take it upon themselves to “one-up each other.”

“There’s a bit of competition between stores,” Coswatte said. “Stores are really big into competition. Somebody will post a picture and they’ll go, ‘Hey, here’s my display.’ And then another store will post a picture and caption to the effect of, ‘No, no, I’m going to one up you. I’m going to make it better.’ So, it only makes us better.”

A task management coordinator sends managers and team leaders daily tasks to complete. Once finished, the team member can mark it

as completed. The information is collected at the company’s support center. This can help it not only coordinate specific tasks but aid new stores as they develop procedures.

“As we add more stores, we have visual confirmation that [the task] happened and happened correctly,” Coswatte said. “If it doesn’t happen, we can see who was assigned the task. If they’re on vacation, it’ll get escalated to the store director. Then we at the support center get a summary of execution.”

Cardenas is still in the process of rolling out the feature, according to Coswatte. He aims to open the app soon to a larger part of the overall company. For example, the merchandising team could assign a task to each department, which in turn can then share it along the appropriate channels.

“WorkJam is cross-functional in nature, but we plan to leverage this tool to maximize it to its fullest potential,” he said.

The company also plans to unveil scheduling features via WorkJam. When it does so, team members will be able to see their schedule online at home before they come to work. It will also allow for shift swapping. Associates will be able to post their shift for someone to cover, as well pick up any shifts that they are qualified for.

2022 West Innovator of the Year

Cardenas Markets welcomed to Banning, California Former Rio Ranch Market site was first to undergo transformation

The Shelby Report of the West was on hand Sept. 28 as Cardenas Markets held a grand opening celebration for its 20,000-square-foot store at 3317 W. Ramsey St. in Banning, California.

The location, which previously operated under the Rio Ranch Market banner, marks the company’s expanded footprint and is the first to serve the San Gorgonio Pass area.

Cardenas, which acquired the site about 60 days earlier, invested more than $700,000 to remodel and refurbish the building to meet its standards, according to Chief Operating Officer Prabash Coswatte.

While smaller than a typical Cardenas site, Coswatte noted that community response to the store has been “amazingly refreshing.”

Cardenas held similar grand openings for other former Rio Ranch Markets in California on Oct. 12 in San Bernardino, Oct. 19 in Jurupa Valley and Perris and Oct. 26 in Chino and Fontana. Each location has undergone an extensive remodel in preparation for its opening. Cardenas’ produce department features an assortment of seasonal fruits and vegetables from the U.S. and Latin America while the meat department has expanded its varieties of meat, beef, pork, chicken and seafood.

Each store has added an authentic Mexican Cocina, where shoppers can buy carnitas, tamales, taquería classics and other daily deal options. It also has a tortilleria featuring authentic corn and flour tortillas made from scratch.

In addition to a formal ribbon cutting, festivities in Banning included prize giveaways, remarks from local dignitaries and elected officials, as well as live entertainment from mariachis and ballet folklorico dancers.

“Please know that our commitment to celebrating Hispanic heritage lasts all year,

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Members of the Cardenas Market team – Prabash Coswatte, chief operating officer; Mario Campos, Banning store director; Doug Sanders, chairman and CEO; Jorge Fernandez, SVP of operations; and Juan Juarez, district manager

2022 West Innovator of the Year

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not just one month. That’s what we are every single day,” said Adam Salgado, chief marketing officer for Cardenas.

“In the same way that the city of Banning takes pride in the quality of services it provides to the community, Cardenas Markets takes pride in providing our customers with the friendliest service and freshest, most authentic products at amazing prices always. It isn’t just our slogan – always fresh, always authentic.

“So, as we celebrate the opening of the store, we do celebrate over 40 years of serving Southern California residents, and we certainly look forward to serving you in Banning.”

In honor of the occasion, the Cardenas Markets Foundation made donations of $5,000 each to the Banning Unified School District and Faith in Action.

Ontario, California-based Cardenas Markets is one of the largest Hispanic grocery chains in the country. It has 57 stores under the Cardenas Markets banner, seven under Los Altos Ranch Markets and one Cardenas Ranch Market. The stores are located in California, Nevada and Arizona.

Adam Salgado, chief marketing officer of Cardenas Markets, addresses the crowd gathered for the grand opening Sept. 28 in Banning.

In honor of the Banning store opening on Sept. 28, Cardenas donated $5,000 to the Banning Unified School District.

Cardenas also donated $5,000 to Faith In Action, San Gorgonio Pass, a communitybased organization that assists homeless and low-income residents.

Adam Salgado, chief marketing officer, and Juan Juarez, district manager

2022 West Innovator of the Year

Fresh food stars during tour of ‘forward footprint’ store Focus

beginning to shift toward

Cardenas Markets, The Shelby Report of the West’s Innovator of the Year, is in the process of a companywide facelift. Within its three-state market area of California, Arizona and Nevada, the grocer has undertaken renovations at all of its stores.

In preparation for honoring Cardenas ahead of this special section, The Shelby Report’s Bob Reeves got a special guided tour of the company’s store in Montclair, California, which boasts the “forward footprint” for new and renovated locations going forward.

The tour was led by Prabash Coswatte, chief operating officer, who began by outlining Cardenas’ approach to store upgrades.

“We aim to achieve a stable, consistent feel across the store base as we are four independent chains merged,” he explained.

When customers enter the store, they are greeted with a dazzling array of colors. These come from the freshly baked in-house sweets, cakes and treats lining the wall. Coswatte was reminded of the brand’s social media-type platform, WorkJam, after seeing the cake display.

“There’s usually at least one post a week of a cake from this store,” he said. “A few weeks back, they made a wedding cake, a beautiful three-tiered cake. It’s really cool to see their amazing creations.”

At the time of the store tour, the bakers were

‘next generation’

preparing for Dia de Muertos by creating festive cakes and cupcakes that showcased Cardenas’ Hispanic heritage. These holiday-inspired creations appear in the cake display case throughout the year, which Coswatte said “really lets our team members show off their creativity.”

Alongside the cake cabinet, customers will see another large display of various

freshly made sweets and treats, including cookies, a variety of pan dulce and sweet rolls.

Following the bakery display is the “tip of the spear” for the grocer – the produce department. “We lead with produce,” Coswatte said.

Cardenas’ produce standards have risen within the past three years, and it now employs a quality control and assurance team at its warehouses, according to Coswatte.

“We’d rather reject a load versus receive an inferior product,” he said. “We want to maintain

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high standards. We want to make sure the product not only looks good in the store but also looks good for X amount of days after the customer takes it home. That’s the standard that we maintain.”

This desire to uphold quality standards also has contributed to the surge of store renovations.

“When customers think Cardenas, they have brand expectations,” Coswatte continued. “The goal is to update the stores and deliver on the brand promise.”

While this renovation journey is still ongoing, he and his team expect them to be completed in another two years or so.

Another area that is continuing to improve within Cardenas is the bulk sales, which can be found throughout the perimeter of stores.

As customers leave the fresh produce and sights and smells of baking sweets, they are welcomed into the carnivorous section of the store.

Beginning with the seafood section, they will encounter a display of whole tilapia, catfish, crabs and shrimp, among other delicacies, on ice. A delicacy that sets Cardenas apart from most grocers is the fact many stores carry Central American delicacies such as

2022 West Innovator of the Year

octopus and stingray. Partnered with the seafood section is Cardenas’ full-service meat department.

“Traditionally, our customers really love that interaction at the meat counter with our experienced meat cutters. We want to make sure that that interaction stays in place,” Coswatte said. “Whether our customers prefer grab-n-go options or a specific cut of meat from the meat counter, we’ve broadened our offerings to accommodate customer preferences.”

Just as Cardenas has improved its produce quality, it also aims to make USDA Choice meat available at each location.

The stores themselves have prepared food options throughout. In Montclair, cold crema – a slightly tangy condiment similar to sour cream – is available fresh behind the counters, as are homemade Mexican sausages and chorizo.

“Our chorizo is world famous,” Coswatte said. “Customers come and tell us – and we see it in the numbers – that they prefer our chorizo over the prepackaged options.”

Montclair has a tortilleria, or tortilla bakery,

which makes fresh masa and tortilla products. A local food chain, Dos Patrios Taqueria, gets its masa from that particular store for its four restaurants, Coswatte said.

The tortilleria also is known for its use of the Nixtamal process where corn is turned into masa, which is then baked into tortillas all in the same vat.

“It makes the tortillas extra flavorful and our customers love them,” Coswatte said.

In addition, Cardenas has introduced a third-party program, Fujisan, which makes fresh sushi in-house. Next to the tortilleria is the Cardenas Cocina, where traditional Latin America breakfast, lunch and dinner options are prepared and served.

2022 West Innovator of the Year Foundation’s four pillars focus on education, health, hunger relief, well-being of children

Popular golf tournament raised more than $825K in September

The Cardenas Markets Foundation is a nonprofit noted for its charitable efforts that impact the lives of those in the areas the grocer serves.

The foundation supports organizations committed to advancing health, children’s well-being, hunger relief and education.

According to its president, Adam Salgado, who also serves as the grocer’s chief marketing officer, the foundation accrues its funding through sponsored events.

For example, it celebrated Hispanic Heritage Month and Mexican Independence Day by holding its 18th annual fundraising golf tournament on Sept. 15 at the Pacific Palms Resort in City of Industry, California.

The event raised more than $825,000 to support the foundation’s scholarship program, in addition to its health, children’s well-being and hunger relief initiatives.

Tournament participants were able to take in 18 holes of scramble golf tournament play, with longest drive and closest to-the pin competitions alongside live music, folklorico dancers and samplings throughout both golf courses.

“Events of this magnitude come to fruition through the generous support of our vendor community, and we are so grateful for their ongoing support,” Salgado said.

“The event was especially meaningful as we came together to raise funds for our future leaders while also honoring the kickoff of Hispanic Heritage Month.”

According to Salgado, education is the foundation’s

first priority. Now in its third year, the foundation’s scholarship program helps stores to identify candidates for local student scholarships. Each store awards a $3,000 scholarship. The foundation also partners with various local universities.

This year, the foundation received 266 applications from students residing in the areas where Cardenas Markets operates.

According to the foundation, 50 of the 59 selected for scholarships are pursuing bachelor’s degrees, while four are earning associate degrees. In addition, five recipients are in graduate school, with three of those working toward their doctorates. In an ode to its Latino heritage, 50 percent of the scholarship winners identify as Hispanic.

“We looked at a wide variety of factors, some more easily quantifiable than others to select recipients from different backgrounds and levels of leadership,” Salgado explained.

In regard to children’s well-being and health initiatives, Salgado said Cardenas’ main customer market, Hispanics, are at an increased risk for diabetes. The foundation partners with a number of other organizations to help combat the problem.

During September, which is national hunger relief month, Cardenas donated about $50,000 to local food banks and other organizations throughout its market area. The effort resulted in one of the most charitable months in the company’s history, Salgado said.

2022 Food Industry Hall of Fame Inductee

From East Texas, Sanders’ grocery career has taken him around the world and now to California

Leader credited with bringing innovative changes to Cardenas Markets

Doug Sanders was raised in the East Texas town of Nacogdoches, which sits two hours north of Houston and three hours southeast of Dallas. Sanders grew up spending summers working on his grandparents’ farm.

Now in his 38th year in the grocery industry, he finds himself serving as chairman and CEO of Californiabased Cardenas Markets, The Shelby Report of the West’s Innovator of the Year. He also is a 2022 inductee into The Food Industry Hall of Fame.

The company earned its honor based largely on its growth and success since Sanders took the helm as CEO in July 2020, during the throes of the COVID19 pandemic. Prior to assuming the role of CEO at Cardenas, he joined the company’s board of directors in 2018. He had previously served as CEO of Sprouts Farmers Market and his career also includes stints in technology and with other grocers.

In his two-plus years with Cardenas, Sanders has since overseen major deals, merged three different businesses, dealt with a major cyber security incident and played an instrumental role in the company’s acquisition by New York City-based Apollo Funds.

But Sanders’ hall of fame pedigree really has its roots in Texas. He got his first job in grocery the day he turned 16 working as a bagger for Brookshire Brothers.

“They had two stores in my hometown. I started working there in high school and all through college,” he said. “For me, it was something I just gravitated toward. I really enjoyed the business. I enjoyed the customers. Especially being from a small town, you knew the vast majority of the customers when they came in to shop.”

Sanders’ connection with the people of his hometown sparked his interest in the grocery industry. He found himself volunteering to come in on days off and worked in every department within that original store because of his desire to learn.

“A leader’s job is to set the vision for the organization’s future. Doug’s retail experience with an exceptional balance of technical knowledge and business acumen gives him the unique edge to lead innovation, transformation and deliver on that vision. I’m fortunate to work with him every day and have him as a mentor.”

Sanders worked for Brookshire Brothers from 198697. Between that time, he worked his way up to store manager. By 1995, he had moved into the company’s corporate office in Lufkin, Texas.

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– Prabash Coswatte COO, Cardenas Markets

2022 Food Industry Hall of Fame Inductee

with Microsoft so I could get ahead of where we were going.”

Sanders began to work in the retail systems department, which he described as a precursor to information technology. At the time, cash registers were the only technology within grocery stores.

Sanders’ first project after joining the department was to replace all the POS in the stores. This project led to him working on a number of technology projects across the company in the years that followed.

“I didn’t necessarily have an IT background,” he said. “I was learning the systems as they were being implemented. I was also taking continuing education courses

Sanders left Brookshire Brothers after being recruited to Associated Wholesale Grocers in Oklahoma City. While there, he worked with independent retailers across most of Oklahoma and parts of the Texas Panhandle for the wholesaler.

He said he enjoyed his time at AWG as they were “very customer focused.” In fact, he keeps in touch with many former clients and still receives a Christmas card from some.

“AWG was an absolutely wonderful company and I really enjoyed working for them. I was there for three years, went through the whole Y2K event,” he said. “That kept me busy for a couple of years, as we were implementing and upgrading systems in almost every department in the store.”

In 2000, Sanders took his grocery career in a slightly

“I have worked with Doug for over 20 years and have sincerely appreciated his willingness to share new ideas and provide strategic guidance to me as he navigated through his very busy, extraordinary career.”

– Frank Colbert VP of DMA

different direction, joining Arizona-based TCI Solutions, which designed inventory and pricing management tools for grocers. The company had both domestic and international clients, so Sanders spent two years traveling the U.S. and abroad working with food retailers of all sizes. This experience not only expanded his knowledge of the IT industry but also helped him connect with clients who were active in the grocery industry.

“I was recruited by TCI because I had both an IT and a grocery background,” he said. “I was able to sit with senior executives and talk about our technology and how it benefited their business. But could also work with the technology team to explain how our technology works within their IT environment.”

This job is also how he was introduced to the founders of Sprouts Farmers Market.

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Prabash Coswatte and Doug Sanders

at Truno

“When I think of why Doug is deserving of such recognition, it really comes down to the way he leads his team. Leveraging elements from a quote from Charles Erwin Wilson, Doug is a great leader because he makes his team realize they have more ability than they think they have so that they consistently do better work than they thought they could.”

– Adam Salgado

Chief marketing officer, Cardenas Markets

“I was working on a project for Winn Dixie when I received a phone call from Shon Boney, one of the founders of Sprouts, asking if I could help set up the systems for their new grocery concept.”

In February 2002, Sanders flew out to Phoenix to begin pulling together Sprouts product database and implementing their systems. A week before the first store opened, they offered him the role of VP of information technology, which he accepted.

Sanders eventually rose to become president of Sprouts in 2005, leading the company through many years of dynamic growth, including multiple acquisitions and a successful IPO in 2013. He said that it was one of the most “challenging and rewarding” times of his career.

2022 Food Industry Hall of Fame Inductee

“I had never worked for a startup, but it was right up my alley. I love to work. I love to move fast. I love working with passionate and dedicated people. And I had an amazing team at Sprouts,” he said.

While Sanders studied business at Stephen F. Austin State University, he said, “To me, nothing replaces hands-on education.”

That hands-on education continued as he grew as a leader. He wore many hats in the early days of Sprouts, so he was accustomed to getting things done himself. But as the company grew, his leadership style evolved as his role became more strategic in nature, delegating much of the day-to-day responsibilities to his executive team.

“As a company grows, you just can’t keep your hands around it all the time. You have to learn to give good direction and manage through people. You hire the right people and put them in the right place with the right level of autonomy and empowerment to get their job done.”

This management style was guided by his friend and mentor Boney, one of Sprouts’ founders. Boney and Sanders came from different worlds but found common ground in their unwavering belief in people.

“He was the one who fostered the culture and vision for Sprouts. This set the tone for believing in what we were doing and getting people to believe in it as well,” Sanders said. “Treat people well, give them good direction and let them do their job. And most importantly, let them know it’s OK to mess up.

“Shon was always astonishing me. He just had such a belief in what we were doing.”

Sanders shared that his time at Sprouts included one of the most regrettable moments of his career. During

“Doug’s optimism and trust in our team sets the tone for the entire organization. He has an innate ability to motivate and inspire us by clearly and simply communicating the company’s strategic vision in a way that demonstrates how each of us own and contribute to the company’s continued success. Doug truly fosters an environment of accountability and empowerment. Moreover, he is super humble, very caring and truly believes in our team.”

– Marisa Kutansky Communications director, Cardenas Markets

the opening ceremony for Sprouts’ first store in Texas, somebody noticed that the Texas flag had been raised upside down on the flagpole.

“I have never been more embarrassed. People who I knew that lived in Dallas came to this event. When people found out that I was from Texas, it was even worse,” Sanders said with a chuckle. “We put the flag upside down. Who does that? Especially if you’re from Texas.”

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Prabash Coswatte, Eric Stover, Doug Sanders and Adam Salgado

2022 Food Industry Hall of Fame Inductee

Sanders eventually stepped away from the CEO position at Sprouts in 2016 but continued to serve as the company’s chairman of the board.

“The board was very supportive of what I was doing, but I had to step away. Quite frankly, after years of running hard and building Sprouts from one store to around 300 when I stepped down as CEO, it was time for a break.”

“I recall a period during which we experienced a very rapid growth that Doug implemented a program where he conducted town hall meetings at every single store with all employees...I have never met a CEO that took the time to meet one-on-one with every single employee in every single store. That grand gesture cemented my idea of how a leader should develop and lead a team in the manner he always did.”

– Glade Campbell Retired VP of operations for Sprouts

Sanders took some time to himself and to enjoy his family but soon was itching to get back into the grocery business. Through a connection made while at Sprouts, he was offered a position on the board of Cardenas Markets.

“The board was mainly comprised of individuals with private equity background, and they needed a grocery operator on the board,” Sanders explained.

He joined the board at the end of 2018, when Cardenas was still a small family-run business. That changed in a flash as Mi Pueblo of northern California and Ranch Markets of Phoenix, Arizona, became part of the Cardenas banner.

“We went from a small company to a mid-sized company seemingly overnight,” Sanders said.

The sheer complexity of operating in four different markets in three different states with different competitors in every single market can be difficult to manage.

“For me, it was very intriguing because I saw the

opportunity to rebuild this company from a small family-owned business into a billion-dollar company,” he said.

Citing his time at Sprouts, Sanders said he was “used to that because change was happening every day there.”

“We were a different company. The last year I was [at Sprouts], I think we opened around 30 new stores. We were perpetually changing and evolving. That’s kind of the same thing we have here at Cardenas,” he said.

Sanders became CEO of Cardenas in July 2020. Undaunted by the unprecedented upheaval caused by the pandemic, Sanders instead marveled at the resiliency he saw at the company.

Under his leadership, Cardenas began to invest tremendously in technology, rebuilding the senior executive team and culture.

“The company’s doing great today,” he said.

Alongside this, Sanders has continued to rebuild the private label program at Cardenas. He plans to continue the company’s brand through what the grocer is known for – authenticity. The retailer is innovating its recipes, ingredients and how it relates to the consumer.

“Doug played an important role as an officer on our board of directors and a trustee on the AFMA Education Foundation for over 10 years. He was honored as our Food Industry Retailer of the Year in 2010. Doug has several strong leadership traits. He sincerely cares about the people on his team, he is a man of his word and he will always be caring and honest to everyone he does business with...Doug’s legacy will be that – he always gives back more than he receives.”

– Mark Miller President of the Arizona Food Marketing Alliance

Cardenas is a Hispanic-oriented retailer, but its private label needs to consider other demographics as its stores serve a variety of markets.

“While our core customers are primarily Hispanic, we need to understand the generational nuances of the Hispanic consumer and continue to evolve with them,” Sanders said.

“Every market we’re in is a melting pot of generational structure with a variety of ethnic backgrounds that really determines our offerings.”

“I started with Sprouts in 2005. The founders had a vision of going public, with numerous stores. They knew where they wanted to go and were good at picking quality people to get the jobs done. Doug Sanders was an exceptional pick. He brought organizational skills, work ethic, direction, accountability and focus to Sprouts. He was really the key to creating the team that eventually took Sprouts public in 2013.”

– Tom Foulds Former VP of produce for Sprouts

Use of technology and data has been another characteristic Sanders has prioritized. The grocer has implemented automated product forecasting and replenishment in stores. That evolution began in the center store and is now migrating into other departments.

On a larger scale, technology has helped keep Cardenas going the right direction, Sanders said. The company recently began using an app platform called WorkJam that sends updates and relevant companywide information to employees.

“How we communicate is one of the biggest challenges especially as we grow. We now leverage WorkJam to share pertinent and widespread internal facing communications,” he said.

As an example, Sanders noted how at the time of the interview Cardenas Markets was going through its open

“Doug clearly defines our company’s strategic vision. He builds and inspires our team to work collectively to achieve our company’s goals. Doug leads by example, and his people-focused leadership style both cultivates talent and drives successful business results. He inspires us to be our best by consistently delivering results that positively impact our communities, team members and stakeholders daily.”

– Leticia Espinoza Chief legal and HR officer, Cardenas Markets

enrollment period for health insurance.

“All the notifications are sent through the app for open enrollment. Ensuring broad-based communication effectively reached its intended audience was difficult prior to using WorkJam. This technological solution has greatly improved our internal communication process,” he said.

As Sanders continues to balance work and enjoying the outdoors and life, he said the most important aspect he can bring to Cardenas is fostering healthy living and a career mentality.

“When you start with us, we want it to be a career,” he said. “When I started in the grocery business, I quickly knew I wanted this to be my career. I think creating those opportunities is important by creating upward mobility within the organization.”

“Doug is a strategic leader and creative problem solver who loves nothing more than taking on seemingly impossible challenges. His courageous and clear-headed approach to business inspires teams to break through real – and perceived – barriers with a clear vision and shared purpose.”

– Maggie Fearnow SVP of marketing for FoodStory Brands and former VP of marketing for Sprouts

“Under Doug’s leadership, Cardenas Markets has made significant investments in technology to transform from three family-owned Hispanic grocers into a platform for meaningful growth in the future.”

– Matthew Holt CFO, Cardenas Markets

“Doug is an exceptional leader and operator and a truly unique talent within the grocery industry. When he joined Cardenas as president and CEO, he quickly developed a clear vision on how to accelerate Cardenas’ culture, customer experience and growth as a business and effectively led his team to execute against this vision during a difficult backdrop with the pandemic. Doug’s strong leadership and passion for the grocery industry enabled Cardenas to deliver exceptional performance for its customers, employees and shareholders during his tenure. We are thrilled to have had the opportunity to partner with Doug and we have no doubt he will lead Cardenas to a very bright future during its next chapter.”

– Angad Singh Director of private equity at KKR

REFLECTIONS

“Doug knows how to put together great teams. He knows what he wants and goes and gets it. He’s always been humble, even though he knows more than most, but that’s a big part of his success. Doug has had incredible success. Guys have lived their whole lives and have not had half the success Doug has had in such a short time. That’s attributed to him as he’s made the most of every opportunity that has come his way.”

– Jim Brown Chairman of Doc’s Food Stores

“As the CEO of Sprouts, Doug Sanders helped transform the way businesses can affect change within their communities. For SARRC, it was through our annual walk-in. Sprouts made supporting autism part of the cost of doing business for its vendors. Together, Sprouts and its vendors created a Sprouts shopping village for attendees that became the centerpiece of the walk and in its peak year collectively raised over $1 million.

“Further, under Doug’s leadership, Sprouts became SARRC’s earliest employment partners and continues to competitively hire adults with autism today…and on a personal level, Doug has invested his time as an influential mentor for me, helping me become a more strategic, thoughtful and compassionate leader for SARRC and the autistic children, teens, adults, families and communities we serve. We are grateful for Doug’s many contributions and are proud to see him deservedly inducted into the Food Industry Hall of Fame.”

Doug Sanders shared some of the principles that have guided his career:

◆ Success is driven by a Shared Vision, a Strong Culture, and an Unwavering Belief in Teamwork.

◆ Always see yourself as the person, not the position.

◆ Seeing your team grow and succeed is the ultimate reward.

◆ The only limits we have are the ones we place on ourselves.

– Daniel Openden President and CEO of the Southwest Autism Research & Resource Center

“I first met and worked with Doug as we combined the Henry’s Farmers Market chain with the Sprouts chain in 2011. The vision he had was crisp and clear and continued with the acquisition of Sunflower Markets. The remarkable thing about Doug’s leadership during that era was his ability to identify and assemble talent from all three of the banners – people with super strong personalities and their own views on how things should work – to create one cohesive team with the shared mission of bringing value to the health and wellness space. Amazingly, he is doing it again at Cardenas Markets – this time bringing a diverse, talented team together to fulfill the mission of bringing authenticity and fresh focus to the Latino and multicultural consumer via smart consolidation of unique and yet similar ethnic and specialty-focused supermarket banners. We look forward to sharing success together again.”

– Eric Stover Chief merchandising officer, Cardenas Markets