2022 Midwest/Southeast Wholesaler of the Year 1922 2022
Company marks century of serving independents
Ownership continues to thrive under Chesnut, Griffin families
Laurel Grocery Co. is celebrating its 100th anniversary in 2022 and has been named The Shelby Report’s Wholesaler of the Year for its Midwest and Southeast regions.
Winston Griffin, chairman and CEO of the London, Kentucky-based wholesaler – and G.W. Sr.’s grandson –shared some of the company’s history with The Shelby Report “It all started in East Bernstadt, Kentucky, which is just outside of London, which was the then-terminating point of the L&M Railroad,” Griffin said. “Two gentlemen, Mr. [G.W. Sr.] Griffin and Mr. [W.J.] Chesnut, started Laurel Grocery.”
Prior to opening the business in 1922, Griffin was employed with the railroad and Chesnut was a banker, according to company history. As such, they realized “there was a need for a more efficient system in which groceries made their way to local shops and markets.”
They began by purchasing goods from the railroad and selling them to stores in eastern Kentucky. “Of course, that’s essentially what we still do – buy in bulk and sell products to retailers,” Griffin said.
The two used the railroad to transport products from manufacturers to warehouses, where local grocers could pick them up. They traveled throughout Appalachia, establishing partnerships with small, independent grocers while helping load grocery wagons
and trucks during the night.
By the late 1930s, Laurel was flourishing, becoming the first company in Laurel County to reach $1 million in sales. Customers expanded from smaller grocery stores to schools, restaurants and other large institutions. The business eventually outgrew its original warehouse in East Bernstadt and is now headquartered in London, Kentucky, to better serve its customers.
The company was owned 50-50 by Griffin and Chesnut. It remains in those two families today, with each owning 50 percent.
Following the original founders, two members from each family ran the company. Winston Griffin referred to them as “the Big Four,” as they each owned exactly 25 percent of Laurel and made up its board of directors. The current board is comprised of members of the Griffin and Chesnut families.
“One of the most amazing things about turning 100 is it’s been two families, owning 50-50 from the beginning,” Griffin said. “And there are a couple of reasons that I think it has made it this long, when a lot of family businesses don’t.
“One, we were all raised together. These families are both from the area, and we’ve always gotten along. We’ve made it a point to get along.”
He said as the margins in the grocery business are “extremely tight, we can’t afford to pay family members who don’t work here. So the rule has always been… if you want to have an income from Laurel
Grocery, you have to go to work at Laurel Grocery.”
Not only does that instill a good work ethic, Griffin said it also helps avoid issues that family businesses often run into.
The other reason is what he calls “just pure luck,” referring to the way the generations have been staggered.
“My father was the chairman some time ago, and he is about 20 years older than Bruce Chesnut,” Griffin said. “Bruce was the chairman after dad. Bruce is about 20 years older than me. I’m the chairman after Bruce. It’s been a nice handoff between family members.”
Despite being owned 50-50, he said the company doesn’t have co-chairmen or co-presidents. “It’s a very traditional pyramid-shaped organization,” Griffin said. “There’s always one person at the top that is the decision maker, other than, of course, the board.”
Griffin said he was “thrilled” to carry on for the family and is fortunate to be the chairman for the company’s centennial celebration.
“That’s a big milestone for any company,” he said. “We are all a big family here.”
Laurel’s board of directors includes several members of the original two families.
The company has grown to serve more than 200 stores in Kentucky, Ohio, Tennessee, Indiana, Pennsylvania, West Virginia and Georgia.
About this section
Interviews were conducted by Shelby’s Stephanie Reid and Treva Bennett, with articles compiled by Bennett.
Mission, messaging remain rooted in ‘Think Retail’
President: If we help our retailers succeed, then Laurel will be successful also
Laurel Grocery Co.’s philosophy is “Think Retail,” which channels the sentiment from a statement on the original order guides from 1922: “A successful business is a business that helps others succeed.”
Laurel’s mission was to help smaller, privately-owned businesses thrive against chain grocery stores. A hundred years later, that mission continues today. And it’s among the many reasons the company has been named The Shelby Report’s Wholesaler of the Year for its Midwest and Southeast regions.
“You’ll see these ‘Think Retail’ signs around here and that is our mantra – think in terms of the retail store, our customer,” said Winston Griffin, chairman and CEO. “Whenever we’re doing any type of task here, count it in those terms.
“How is this benefiting the retail grocery store and thus the end consumer, their customer. So it’s just a way of always reminding people that we’re trying to do what’s best for our customer.”
Griffin said Laurel is always trying to help customers with any issues they may have. “We’re very customer focused and that’s a key service,” he said.
Griffin noted that the company’s competitors are all larger and selling the same things.
“What’s different is the service that you give and how personalized you can be. We’re not worried about our competitor, we’re just worried about our customers and taking care of them,” he said.
The London, Kentucky-based wholesaler serves more than 200 stores in Kentucky, Ohio, Tennessee, Indiana, Pennsylvania, West Virginia and Georgia.
One way the company is helping its retailers stay ahead of their competition is by using technology and other advancements such as innovations in advertising and marketing – digital ads, digital coupons and websites. The company also offers retail accounting among its services and recently began a case-ready meat program. A warehouse bread program debuted in October.
Family is key
The fact that Laurel is family owned offers another connection with its customers, most of which are family-owned retailers. According to Griffin, the wholesaler and its retailers have the same issues, “just a little different volume level.”
He said Laurel’s customers love its annual food show and the customer trips Laurel plans, where team members and their retailers “go somewhere and all just relax.”
“That whole family connection goes across the organization, down to the customers,” Griffin said. “You treat them like family and everything works out great.”
The trips are planned to locations that are fun and relaxing. The focus is on fellowship and fun.
“My rule before we leave – and I tell all of our employees from Laurel that go to help – is if a customer wants to talk business, that’s OK. We’re not going to shut them down,” Griffin said. “But we don’t start the conversation with business. We start the conversation asking about their family, how are they doing, their health, where they go, any trips, fun things.
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2022 Midwest/Southeast Wholesaler of the Year
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“We’re away from work on purpose. We’re trying to relax…we are not supplier/ customer and there’s not that relationship. That’s what got us there.”
Griffin said he enjoys the trips because he gets to see everyone in a non-work environment and “just have that bond of being friends.”
Griffin has great respect for Laurel’s customers.
“The independent grocer is always a hard-working, fiercely competitive individual, because you have to be in that business…our customers are unique, because they’re all family owned, they’re all independents and they’re spread over a wide geographic region.
“So they have different issues. We have to be adept, and we are very nimble at helping an individual customer with any particular problem…we’re in the people business and it’s all about taking care of people. I feel for the family-owned retail store, because everywhere you look now, there’s options to buy food.
“If an independent grocery store is doing well, right now, they are tough as nails, because they have seen every type of competition that you can imagine. And they’re still there.”
He added that the reason the independents are surviving is because they are taking good care of their customers. “There’s no other explanation. They’re servicing their customers and understand the importance of that human connection. And that’s what keeps it going.”
Independent grocers also are very much part of their communities. Griffin compared them to a family that has been in town for a long time.
“That store sponsors youth sports or area events, has fundraisers in the parking lot, those kinds of things. That is the definition of family and community. They are still thriving in this country because of that whole family connection,” he said.
Those stores are not going anywhere, and Griffin said it’s essential to a company like Laurel that it continues to serve them as it has since the company began 100 years ago.
“We will advance technology as we need to, to keep up with whatever that store needs,” he said. “But it’s amazing the similarities to what my grandfather was doing – and to what I’m doing – just incredible. We are providing an essential service to family-owned stores and helping them in any way we can. That got us to where we are, and that will continue to keep us going down the road.”
Pearson on point
Laurel President David Pearson came to the wholesaler in 2011 with decades of industry experience. He had worked with Safeway for 20-plus years, followed by more than two deades with SuperValu.
Pearson said working for the Griffin and Chesnut families has “been a blessing.” Coming from national companies to a family-owned business was a welcome change.
Pearson recalled his first board meeting at Laurel. “I’ll never forget coming in and Winston’s mom came in and gave me a big hug and showed pictures. We talked about family and we just had a great time, having a board meeting and walking through everything,” he said. “It’s just so personal and friendly. And it was so different than having that corporation of multiple layers.”
Pearson appreciates the fact that he can get things done at Laurel without wading through those corporate layers.
“That’s part of the beauty of being at Laurel is you can make decisions,” he said. “If we have a retailer that has a situation, I can grab people. We discuss it and make a decision. We let them know right now. They’re not going to get an answer in a week, they’ll get an answer in an hour.”
Those are the things Pearson enjoys about Laurel. “It’s focused toward the retailer, which is what I’ve always been about.”
In Pearson’s final years at SuperValu the company was at $4 billion a year, but he was spending all his time with lawyers and accountants. “It just got paralyzing,” he said. “You got further and further away from the customers.”
Laurel was such a good fit for him because it was focused on its customers, not on Wall Street. “For me, it’s been just a lot of fun to be here and to run this company,” he said.
Another passion of Pearson’s is mentoring. He noted that Laurel had not been able to promote from within as much as preferred, but they are working to change that. While Laurel has many employees who have been with the company for decades, it is important they have someone ready to step into open positions when needed.
Pearson said he also is proud of the financial side of the company. On average, a wholesaler loses about 4 percent of its customers every year, which is an ongoing battle. Stabilizing that and building programs for retailers, he has worked with Kip Faulhaber, president of Laurel Retail and SVP of marketing and merchandising at Laurel Grocery, and his team.
According to Pearson, it was important to “fight the image” that Laurel was just a small wholesaler in Kentucky and show that it actually met and exceeded other wholesalers.
“Whether that’s in points of differentiation or programs, those are the things we try to do,” he said. “But what we really stand for, when you get down to the bottom of it,
is the model – we’re a family business selling to family businesses. That’s who we are.”
When new customers join the Laurel family and they get their first truck from the wholesaler, they also get a Laurel sign containing signatures from all its employees. Pearson said they started doing this a couple of years ago “just to try to let the customer know that we care about them, we think about them. It’s a good way to kick off a relationship.”
Pearson still visits Laurel’s retailers regularly. “I will tell you when I go to visit retailers, it’s the best time I have. It’s my background and I love it,” he said. “My blood just goes a little faster…the retailers love it when you’re out there.
“There’s no other wholesale grocery company I know of where the president goes out and visits the retailer, asks about their family or spends two or three hours with them just talking about the business and family. I think that’s one of the big things that differentiates us from everybody else.”
Pearson said while some wholesalers are “running from the retailers, we want to run toward the retailers.” Laurel has beefed up its field staff, recently bringing in more people.
“We’re adding and investing in more field staff so we can get to see stores more frequently and spend more time with them to help guide them, teach and help them,” he said. “Those are the sorts of things that, from my perspective, are dissipating from every other wholesaler. How we differentiate is saying we’re here to help you and we’re going to help you more.”
Everything Laurel does is guided by the question: Is it good for our retailers? “We just have to believe in helping our customers and, in helping our customers we help ourselves. That’s our working philosophy,” Pearson said.
When the pandemic hit, Pearson said the company had to pivot in finding ways to communicate with retailers. He credited Faulhaber with scheduling a live weekly webinar to inform customers what was going on with the supply chain and what products Laurel had available. Food safety and updates from the CDC were included.
“It’s about giving direction and help and assistance, whether it’s the pandemic or whether it’s just keeping them educated when things go wrong or being out there visiting, for me to hear personally what a retailer has to say,” Pearson said.
Being available when customers are in crisis also is important to the Laurel team. Pearson said that is part of making sure everyone is “completely focused on the customer all the time, No. 1, without fail.”
He recalled a situation where he got a call at 4:30 a.m. from a customer concerned about flooding. Laurel had a truck there by 6 a.m. to get product out of the store. “There’s nobody else doing those sorts of things,” he added.
That kind of customer focus is remembered and appreciated by the retailers. “I tell everybody here that we will be measured by how we react when the retailer’s in trouble and needs help,” Pearson said.
Lives by its motto – ‘Think Retail’
Ron Stamper has been a Laurel Grocery Co. customer for about 34 years as owner of locations in Maysville and Tollesboro, Kentucky. Store Manager Peggy Hester said the owners of Laurel, the Griffins and the Chestnuts, are “just family.”
“They have worked so hard to build a business, and they treat you like family,” she said. “If you need something, you could go straight to the top if you needed to.”
According to Hester, Laurel has put together a team that is there for the customer. The wholesaler lives by its motto, “Think Retail.”
“That’s what they do – they think retail,” she said. “We can call any time and they give us the information we need…it’s not like some big corporate office where sometimes you can’t get hold of the right person.”
Hester recalled an instance where the Laurel team helped the Ron’s IGA team open a store in Maysville that had “kind of been neglected.” Hester went with the owners to clean the store.
“Laurel came in and helped reset the whole thing – get it going and made it beautiful,” she said. “They did all that in a very short period. We started this journey in September and we opened [mid-December]. Without their help, we could not have accomplished that. It was just a complete redo.… You just couldn’t ask for a better team.”
Hester also recalled the first time she attended the annual trip Laurel schedules for its retailers. She said it was the first time she had gone anywhere and was sitting on the plane next to Mrs. Griffin, who was called Sis.
“I think she could see I was a little nervous, but she talked to me the whole way,” Hester said. “She told me if I needed anything, to just call her and she would take care of it.
“She checked on me several times during the week to see if I was doing OK. You just can’t even imagine how that touched me… She sure made me feel like I was worth a million dollars.”
2022 Midwest/Southeast Wholesaler of the Year
Pride comes from way wholesaler is run
‘Nothing more important’ than
Laurel Grocery Co. is laser-focused on customer service. That is one of the reasons Kip Faulhaber, president of Laurel Retail and SVP of marketing and merchandising at Laurel Grocery, has enjoyed his almost 10 years with the company.
“The pride comes from the simplicity of the way the company is run,” he said. “There’s nothing more important than the customers we service and our employees. Take all the noise out of it and that’s what you’ve got.”
The Laurel team is constantly working to make customers more profitable and to grow their sales, “not to figure out how much money we can make at their expense,” said Faulhaber, adding that’s the way the wholesaler has always treated its customers.
Faulhaber went on to say he has “never been exposed to finer people” than those who work at Laurel. The employees are the reason the company has an outstanding 100-year reputation with its customers.
That reputation also helped Laurel garner The Shelby Report’s Wholesaler of the Year honors for its Midwest and Southeast regions.
When talking with a prospective customer, Faulhaber said employees often will have them speak with a current customer who has switched to Laurel within the
customers,
past couple of years.
employees
“By and large, we get very, very high marks in how we go about our business, how we follow through and how, after making the transition, we keep following through,” he said.
Faulhaber would put Laurel’s customer service team up against any in the industry, noting it isn’t there just to take calls but to solve problems.
“The relationship that they have built with our retailers is phenomenal,” he said.
Faulhaber also emphasized that communication between Laurel employees is important. He believes in talking in person rather than over the phone or via email. If he needs to talk to someone, he will go to their office.
He said he is proud of the fact that employees on his team know that if they have a problem, they can come to him to run through their thought process in finding a solution. He wants them to solve the problem.
“That’s how I’m positioning everybody in my organization for the long-term future,” he said.
Laurel wants to promote from within and having employees solve problems and make decisions helps them on their career paths in the company.
“I need people who will develop, who will learn, and that’s what the difference at Laurel is. I have just fallen in love with the company,” he said.
Faulhaber also praised the management styles of both Chairman and CEO Winston Griffin and President David Pearson.
1922 2022
“Winston is a true, great, genuine person…Winston is there to support us with what we want to do,” he said, adding that Griffin’s connections are an asset for the company. “He’s just a really, really classy guy and loves the people. He’ll walk into anybody’s office and just talk.”
Faulhaber said Pearson has brought a lot of changes to the company due to his management style, calling him “probably one of the best communicators that I’ve ever seen.”
He and Pearson arrive at the office about 6 a.m. and talk about the things they need to do.
“He doesn’t tell me how to do my job,” Faulhaber said. “He doesn’t really tell anybody how to do their job. He just tells them what he wants done.
“With me, it’s real simple – hit the numbers, get the sales, get the gross, get the service level, get all that and he doesn’t tell me how to do it.
“He’s just a wonderful guy to work with.”
Faulhaber’s focus at Laurel is the development of current employees for their long-term future in the company. Succession planning is important to the continued success of Laurel. He added that several departments, such as perishables and advertising, have been revamped and are set to continue with little or no changes over the next several years.
According to Faulhaber, the company is positioning Jake Jennings, senior director of marketing and advertising, to become its spokesman. He said he will be working with Jennings to teach him the numbers.
He also wants to increase Jennings’ exposure.
“He has the relationships with the retailers,” said Faulhaber, noting that he has been having Jennings interact more with the retailers.
Jennings has been with Laurel 14 years, coming in as head graphic designer. He also worked in the IT department for a few years before moving back to advertising as manager. That was about the time Faulhaber was hired.
“Kip had a wealth of industry experience in marketing and analytics and merchandising,” said Jennings, adding that they “paired up well.”
From that point forward, Faulhaber has been his mentor, showing him the ropes of the industry as he moved up through the company, Jennings said.
He noted that the company offers “tremendous opportunities to those who are here and committed and care and serve. It’s just a great company.”
Watching the company grow has been exciting for Jennings, along with launching programs to benefit Laurel’s retailers, especially during the COVID-19 pandemic.
He said independent retailers have always prided themselves on cutting meat in-store. However, when the pandemic hit, it brought about major changes for independents in the form of labor issues. Some stores just no longer had the personnel to cut meat. That’s when Laurel stepped in.
A case-ready meat program was developed for
stores that needed help and is now available to all Laurel retailers.
Jennings said Laurel’s programs and services differentiates it from competitors. This includes offerings such as the meat program, developed to address a need, in addition to its advertising and accounting efforts.
Another program developed to address a need for customers is a warehouse bread program. Due to continuing supply chain issues, Laurel heard from retailers who have had bread routes cut or offer less varieties. Working with a regional bakery, Laurel is launching its new warehouse bread program in October.
“Those are the types of things we have to look at as time goes on, especially as we serve independents, to help them succeed,” said Jennings, adding that many of Laurel’s programs have been born out of retailers’ needs.
Laurel must be ready to “take that next step and to evolve with society, with the needs of society, with the needs of our retailers. That’s really what we pride ourselves on when we talk about the ‘Think Retail’ philosophy of our company,” Jennings said.
That philosophy ties into the belief that if Laurel’s retailers succeed, it will succeed. Moving forward, Jennings said it will be important to identify what their retailers need – new products or services – and providing those solutions.
He recalled a food show several years ago that was themed “Building Brands Together.” Several retailers shared ideas that were creating excitement with customers.
“It’s almost contagious – this retailer has an idea, shares it with us and then another retailer shares that idea,” he said. “The wires just light up between retailer and wholesaler.”
One of the ways Laurel helps its retailers to succeed is by listening – to what’s going on in society and in the industry, Jennings said. “They need to be students of the industry and students of their retailers,” adding that retailer needs never fall on deaf ears at Laurel Grocery.
‘Been like family to me for 40 years’
Donna Albaugh, an account manager with Acosta serving the area of greater Lexington, Kentucky, has been calling on Laurel Grocery Co. for 40 years.
When she was looking for a job after college, her father called his friend G.W. Griffin, one of the owners of Laurel, to see if he had any openings. He didn’t, but passed along contact information for the brokerage company.
“That’s how I started calling on Laurel Grocery,” said Albaugh, adding that she started with retail store clients in southeastern Kentucky before moving up to the account manager position.
Albaugh said the folks at Laurel Grocery have been through all of her life experiences, including hosting a baby shower for each child.
“I love my job and Laurel Grocery,” she said. “They have been like family to me for 40 years.”
2022 Midwest/Southeast Wholesaler of the Year
Free clinic improves health of workforce
‘Prevent the Event’ approach has proved successful
Laurel Grocery Co. takes the health of its employees seriously. So much so that after several years of concerning results from screenings through the local hospital’s community health program, Laurel Chairman and CEO Winston Griffin and President David Pearson decided to take action.
The result was Connected Care, an on-site health clinic for employees and their families, with healthcare providers employed by the local hospital.
The clinic is one of Laurel’s many attributes that helped the company earn recognition as The Shelby Report’s Wholesaler of the Year for its Midwest and Southeast regions in 2022. The company also is celebrating its 100th anniversary this year.
When the annual screenings were being conducted, hospital personnel would meet with Laurel officials to go over the aggregate results and “it was pretty bad,” Griffin said.
“This part of the country, it’s poor eating habits and poor exercising and those kinds of things,” he explained. “They would say you’ve got this many people borderline hypertension, this many people borderline high cholesterol and this many people overweight. And a year would go by…and those results had not changed,” he said.
Around that time, Laurel employed about 270 people, but health coverage was extended to spouses, which brought the number of insured closer to 500.
Griffin said after additional attempts to improve the aggregate numbers did not help much, hospital personnel told him he had a “very unhealthy workforce.” They suggested having a doctor on site.
Griffin said he and Pearson decided to go further. “We said if we’re going to do this, let’s do it right. Let’s have a place where a doctor can come and actually see employees.”
They decided to build a clinic offering free healthcare. They wanted a location where employees and their families could have privacy and chose to construct a building near the warehouse. The company contracted with the hospital to staff and help design it.
The community health nurse the hospital had been sending to Laurel monthly –Angie Patton – was hired by the company as director of health and wellness to run
the clinic.
Connected Care has been available to employees and their families for eight years and “has been a tremendous success,” Griffin said.
Removing obstacles to healthcare
When building the clinic, Griffin said he asked for the top reasons people don’t want to go to the doctor. The list included long wait times with sick people, having the doctor spend just a couple of minutes with patients and difficulty getting appointments. The clinic was designed to remove those excuses.
“We put an incentive plan together with the clinic itself and said, ‘OK, we’re going to pay you to get a physical.’ So not only when you walk into that building is what you’re having done free, you’re also going to actually make money,” he said.
Employees who got a physical received $75. For a flu shot, they got $25.
“Right there, we had a huge push to just get people to start going to the doctor,” said Griffin, noting the numbers showed that 15 percent of Laurel employees had never had a physical.
Patton said about 40 percent of the workforce did not have a primary physician prior to the clinic. Also, about 80 percent had abnormal blood pressure readings [anything over the standard 120/80] and almost 40 percent had abnormal blood sugar readings.
Starting from a disadvantage, Griffin said the company did everything it could to get employees to visit. The clinic is open three days a week with a nurse practitioner and a physician on staff.
Once people began getting physicals, they were able to address issues they often did not know they had.
“They knew something wasn’t quite right,” Griffin said. “All of a sudden, we started finding all of these issues. Our slogan over there is ‘Prevent the Event,’ with the event being a heart attack…or confirming that you’re a diabetic. Let’s address it before we get to that event.”
Patton said employees and their families began using the clinic for primary care. Within two years, it was able to decrease abnormal blood pressures from 80 percent to 43 percent, and abnormal blood sugar readings fell from 40 percent to 11 percent, through medication, diet and lifestyle changes.
“We’ve seen huge, huge improvements,” she said.
Another thing the clinic can offer, since it is company funded, is having blood work and other labs as often as needed. Many times, insurance companies limit their numbers.
“We can do that as often as we want, whenever we feel it is beneficial for the patient. Again, that’s something the patient doesn’t pay for, Laurel Grocery is paying,” Patton said.
Griffin said he was straightforward with Laurel employees, telling them there were two reasons for the clinic. “One is to help Laurel Grocery’s health costs [the company is a self-funded employer], and two is to make you a more healthy person,” he said, adding that “those are both really important goals around here.”
Prior to the clinic, Laurel’s health insurance rates kept increasing each year. Those costs have not only leveled off, they’ve started dropping. “It’s all because we’re so focused on preventive medicine,” Griffin said.
The clinic dispenses prescriptions for medications to treat conditions such as high blood pressure, diabetes, high cholesterol, along with antibiotics. The medications are purchased wholesale by Laurel and employees pay that price.
The healthcare providers at the clinic are encouraged to spend as much time as necessary with each patient.
“Angie will block off an hour when someone comes in for a physical. It may not take that much time, but the doctor needs to know that there’s not a waiting room full of people to be seen. Angie doesn’t let that happen,” Griffin said.
“The waiting room is tiny, but it’s essentially not even used. We don’t want people to sit and wait.”
That was particularly important to Patton. “We want them to feel special here,” she said. “We want them to know that we value them and that we care about them. It’s more like a family.”
Making a difference
Connected Care has made a difference in the lives of Laurel employees and their families. Just through basic yearly physicals, a broad range of health issues have been discovered, including some that have been life-threatening. Patton said one that stood out was a 13-year-old boy who came into the clinic during its first year.
“He had been complaining of migraine headaches and had seen his pediatrician multiple times,” she said. “He came here and our doctor at the time ordered a CT scan and MRI and found that this boy had a brain tumor.”
He underwent chemo and radiation. Eight years later, “He’s cancer free and doing
very well,” Patton said. “I don’t even want to think about what could have possibly happened to him had our clinic not been here.”
Patton gets feedback from employees often. “They are very appreciative, they’re very grateful, they’re very thankful for the clinic,” she said. “Because not only are we providing them a service, it’s just everything that makes up our clinic.
“They really feel that we genuinely care about them. We’re not there to harp on them or be mean…they know we’re not going to scold them, we’re going to help them.”
National recognition
The overall health of Laurel’s employees and their families is important to Griffin and the clinic was designed with that in mind. “It’s been a great success,” he said.
Connected Care has been recognized by other organizations, including the CDC in Atlanta, as an example of a company “attacking the problem” of employee health. Griffin and Pearson have spoken to CDC officials about the clinic.
“I’m getting ready to go to a conference in Boston and speak on it in a couple of weeks, and I’ve been to a couple of others,” Griffin said.
He noted that Tom Frieden, who was director of the CDC at the time he gave his presentation, told him there were a lot of areas of the country that were equally unhealthy.
“They were trying to figure out how to replicate this model to other places,” Griffin said. “...But they have to understand there’s a time element and it’s an investment. It’s not overly expensive, but you have to encourage people to go and have preventative work done.”
The time spent between patient and doctor is crucial.
“That hour-long physical lets the patient and the provider talk about all those things that are important – family history, eating, lifestyle and all those things that make your health what it is. There’s no rush,” Griffin said.
He added that, because the clinic employees – with the exception of Patton – are hospital staff, “Laurel Grocery’s not tied in at all – we’ve got HIPPA covered because it’s a separate building and our HR department doesn’t have anything on [employee] health. It’s all in the hospital system.”
The company pays a set fee to the hospital for its personnel, whether they see five patients or 15 in a day. The close relationship with the hospital has been key.
“I’m paying the hospital that same rate. That’s what makes it work. I know hospitals
can’t do that but a company can,” Griffin said.
Lasting legacy
Griffin said the clinic will be one of his biggest legacies in the family-owned business. When his father was running the company it was much smaller, and he was able to deal with day-to-day issues.
As president, Pearson now has those duties, which leaves Griffin free to address other matters, such as the cost of health care. While he has no background in healthcare, he knew the issue had to be addressed.
“It was such a big expense to Laurel Grocery, and growing – it just felt uncontrollable until we decided to hit it as hard as we can,” he said.
Pearson said the clinic is a “huge passion” for Griffin and himself. He oversees the operations of the facility. “We’re both really, really proud of that clinic,” he said.
‘It’s the fine people of southeastern Kentucky who have made Laurel what it is’
Longtime workers appreciate family feel
Laurel Grocery Co. is a 100-year-old, family-owned and operated company. That family dynamic is extended to its employees, as well. Being considered family by an employer goes a long way in retention, as evidenced by the number of longtime workers at the wholesaler.
That hasn’t gone unnoticed by Chairman and CEO Winston Griffin.
“We have a lot of long-term employees, which is wonderful,” he said. “I love our Christmas gathering, which is the one time a year when we all get together in one place, have a meal together, have drawings, presents, and we give service awards for the long-term employees.”
Each year he gives awards for 25-40 years of service. For the past two years, he has presented 50-year awards.
“That says something extraordinary,” Griffin said.
He added that Laurel’s employees are “the most important” and the company takes care of them the best it can.
“It’s the fine people of southeastern Kentucky who have made Laurel what it is – good, hardworking, family-loving people that have been here a long time and don’t want to move out of the area,” he explained. “They are glad there’s good jobs here and they enjoy working here and living here. That’s the backbone of the whole organization.”
As part of the The Shelby Report’s celebration of Laurel being named Wholesaler of the Year for its Midwest and Southeast regions, five of those long-term employees shared their experiences at the company.
Susan Adams
Susan Adams, human resources director and payroll, has been with the company for 30 years. She recalled that she had only been working there for a couple of weeks
when her father had a heart attack.
“I was afraid I was going to lose my job to take care of him,” she said. “Bruce Chesnut told me to do whatever I needed to do to take care of my family, as that is the No. 1 priority.”
Adams started her Laurel career as a buyer’s assistant for two years, then moved into advertising for 12 years.
“Back then, we had to run the ad pictures through a waxer and stick them to the ad templates. We had to print out the color plates and take them to the printer,” she said. “Almost everything was done manually back then. Each designer had a set of stores that they worked with. This was my first stint in advertising at Laurel.”
From advertising, Adams transferred to retail accounting, where she handled store payroll for two years before moving back to advertising.
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“As a creative person, the opportunity to rejoin the advertising team appealed to me. A lot had changed in the process since I was last in the department. Everything was done on a Mac using Adobe software, which was a learning curve.”
In early 2011, Adams moved again when an opportunity opened as an accounts payable clerk. During this time in accounting, she was trained as a backup for payroll and payroll taxes.
In 2016, she became payroll manager and in 2019 took on the responsibility of
Family atmosphere ‘appealing’
Nemenz IGA in Struthers, Ohio, has been with Laurel Grocery Co. since 2013, when Judy Gabriele’s father decided to become a customer of the London, Kentucky-based wholesaler.
She and her husband, Don, have been running the store for about eight years now and continue to use Laurel.
“They’re a family-oriented wholesaler, a family business, which makes it very appealing,” she said. “We don’t get lost in the shuffle.”
The Nemenz family has been in the Struthers community for four generations.
Gabriele said Laurel Grocery treats them well and is very open to any needs they may have. She also mentioned the educational opportunities the wholesaler offers. “They keep us informed.”
Nemenz IGA was nominated by Laurel as a USA Retailer of the Year for IGA just before COVID-19 hit the U.S. Gabriele said the wholesaler “really put forth great effort to get us ready for that and to let us know what to expect and what to do” to be considered for the honor.
She also noted the “very good” communication from Laurel Grocery, adding that when she or her husband call, someone answers and responds quickly to whatever is needed. Gabriele said Laurel Grocery “absolutely” focuses on customer service.
human resources director while keeping her payroll duties.
“In my time at Laurel, I have been afforded many opportunities to grow and progress. What I have found is that if you put your heart into your daily tasks and stick with it, you can have a great career,” Adams said. “One of the things I love is that Laurel really does feel like a family – everyone knows everyone’s spouse and children. It is a really tight-knit group of people.”
Brenda Givens
Brenda Givens, in accounts payable expense, has been with Laurel for 51 years. She said Bruce and Steve Chesnut are close to her in age, while Winston Griffin was about 9 years old when she came aboard.
She recalled working with Elizabeth Griffin in the summer and they would get Winston, who was the youngest, to “go to the candy hole and to bring us back gum and candy.”
She said Laurel has been a family to her. “I grew up in the company with Winston, Bruce and Steve. God had a hand in my joining this company, and I feel that is why I have stayed.”
When she first started working at Laurel, Givens said she needed a car. She had moved from Middlesboro to London and didn’t know anyone locally. When she went to the bank for financing, she was told she needed a co-signer because of her age and being new in town.
“I had nowhere else to turn, so Mr. (George) Griffin co-signed my loan so that I could get a car. I was so grateful to him for doing that for me,” she said. “From that point, I knew that he had a heart for people. He knew each employee and what was going on in their lives.
“The family has been very good to me. I have enjoyed every moment of my time at Laurel and wouldn’t change anything about it.”
Givens said after losing her husband, her Laurel family has become even more important.
“As long as I can remember how to get here and what to do, I don’t want to retire – I want to keep working.”
Eileen Murray and Cosetta Hale
Eileen Murray, a buyer and buyer trainer, and Cosetta Hale, accounts receivable manager, started at Laurel about the same time – about 50 years ago.
The women started with the company by keying orders. They would have to physically wait on the sales staff to go out and get ordering strips from the stores and bring them back. In some cases, that could keep them waiting until after hours on a Thursday or Friday.
Murray said she is thankful to the Griffins and Chesnuts for her job, which has helped her to raise her family and stay in Laurel County. She has four children and all of them have worked at the wholesaler at some point. And one still does – daughter
Melissa Caudill is Laurel’s controller.
“The owners really make you feel like family. If things were not going right, they would always bring you into their office to talk to you about it,” Murray said.
She shared that an older lady at her church, who knew she worked at Laurel, told her she would have a job as long as she wanted it, adding that it was “the place” to work.
Murray also noted that when she and Hale were hired there were not many places to work in Laurel County, which caused people to leave the area.
Hale said she is thankful to the owners, who have treated her like family. She said they helped her husband get a job at Institutional Distributors, a sister company at the time, so they could stay in Laurel County. Her daughter also worked for the company at one point.
“When my daughter started working at Laurel, I introduced her to Bruce [Chesnut] and he said, ‘I feel like I know her, I’ve watched her grow up on your desk through the years,’” said Hale, referring to photos on her desk each year.
Hale also recalled Winston Griffin’s mother, Elizabeth “Sis,” used to invite them to her home during the holidays and would take them out to eat. “She was really nice and genuine,” she said.
Both Murray and Hale are still going strong and enjoy walking together when the weather allows.
“We’re just not walking quite as fast as we used to,” Hale said.
Doug George
Doug George, CFO, has worked for Laurel since Aug. 1, 1985. He said his grandfather opened a store about the same time that Laurel got its start in 1922.
“He was in the grocery business until 1969, when my mother took the store over. Back then, stores were the only social gathering place in the community and the post office was located in the store [Marydale, Kentucky],” George said.
Don Chesnut used to call on his grandfather. When his mother took over the store, she was a Laurel customer. George said back then, “You got a job at one of three places – Laurel Grocery, Griffin Pie [now
2022 Midwest/Southeast Wholesaler of the Year
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Flower’s Bakery] or Kern’s Bakery. His father worked for Laurel.
“Since I had an association with Laurel from my family, it was only natural that I pursued a job here,” he said.
George said his dad’s plan was to get him a job in the warehouse so he would change his mind about going to college. His father died in March 1986. “I had no interest in accounting whatsoever but decided to go to college while working at the warehouse.”
While attending school, he worked as a security guard, order router and computer operator.
“I would come in on Friday night at 9 p.m. and leave Sunday, when all orders were
complete. This was the last two years I was going to college through the week,” he said.
One of his accounting professors suggested he major in accounting because George performed well in his class.
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“Bruce Chesnut asked me one day in the warehouse if I was going to college and asked what I was majoring in. He said to let him know when I graduated, and he would have a place for me in the accounting department. When I graduated, I told Bruce and he said perfect timing – we have an opening.”
After graduation, he moved to the administration building as a staff accountant. He studied and acquired his CPA under Philip Smith, who later decided to go into practice for himself.
“I went to Bruce and told him that despite being young, I would give him my all. I took over as controller in 1999. When Bruce stepped down as CFO, I was promoted to CFO in 2006,” George said.
He noted that Laurel made it possible for him to become a CPA, a Chartered Global Management Accountant, a Certified Valuation Analyst and to earn his MBA. He has seen firsthand that Laurel has continued to get stronger through the years.
“Laurel is everything to my family,” he said. “When I was growing up, in my house if it did not come through the Laurel warehouse, it did not go on our table. That’s just the way it was. I was brought up to be loyal to your employer. Everything I have is because of Laurel.”
Manager: ‘They get right on it’
Allen Argo is the store manager of Ken’s Fresh Foods in Flemingsburg, Kentucky. He has worked for the Techau family, which owns the store, for 30 years and worked for the previous owner for nine years. He said Laurel Grocery reminds him “a lot of the way we used to do business 25 to 30 years ago.”
According to Argo, Laurel employees are “really great people that really care about us, the customers. I think that’s probably what makes them as good as they are, is their people.”
Argo has a good relationship with the Laurel team members, from customer service to management. “All their management people, I actually have their personal cell phone, if I have a problem.” While he doesn’t make those calls often, when he has, “things get taken care of.”
Argo described Laurel President David Pearson as “a great guy.” He said when Ken’s Fresh Foods made the transition to Laurel as its wholesaler, Pearson visited the store and told him to call if he needed anything. “For the president of a company to do that with a store manager, I feel that’s pretty impressive.”
The store’s social media presence also has gotten an assist from Laurel. Argo said he had difficulty updating the store’s Facebook page frequently. Now, Laurel has a person taking care of it for the store.
“They really made a big push on that,” he said. “That’s really helped out a lot and taken a little bit of that load off of me.”
From employee to loyal customer
Joe Jester, a former Laurel Grocery Co. employee, is now a customer and has been since he bought his first store in 2008. He had worked for the wholesaler as a retail counselor for four years.
Jester, who owns four IGA Fresh Markets in southeastern Indiana, said not only does Laurel understand retail “a lot better than other wholesalers,” but the company “makes you successful at retailing so that they’re successful also.”
To Jester, other wholesalers put more emphasis on being successful at wholesale, first, and don’t assure that the retailer is successful. “I think that’s their secret, they do everything they can to make the retailer successful,” Jester said of Laurel Grocery.
He added that he likes that the company is owned by individuals and it’s not as cumbersome as a publicly traded corporation.
“If you ever need something important, it doesn’t take long to get an answer,” Jester said. “If a customer calls for upper management with Laurel Grocery, and they’re in a meeting, someone else carries on the meeting and that upper management person gets on the phone with the retailer and takes care of his concerns.”
Jester said Laurel goes above and beyond “mostly every day.” One thing he really appreciates is that the company puts a lot of effort into “proper retail pricing.”
Laurel employees also have helped him when he has had management turnover in a store and “the pricing gets out of whack.”
Laurel Grocery, IGA assist independent retailers
Laurel Grocery Co., The Shelby Report’s Wholesaler of the Year for its Midwest and Southeast regions, and the Independent Grocers Allliance have a decades-long history of partnership. The Kentucky-based wholesaler has been one of IGA’s nine licensed distributors since 1999.
“What I love about Laurel is they are truly a family business that supports family businesses, from the way they’re organized to the leadership team,” said IGA CEO John Ross. “Family businesses often have associates who have been in the company for 20 and 30 years, and that’s what you see at Laurel.
“You go there and there’s some of the same people working for the company from when [Chairman and CEO] Winston [Griffin] was a boy. That’s really a testament to the company culture, that you can attract and retain people who become a part of your virtual family in a way that allows you to keep your values alive and well. And their values are very strong.”
Ross said everything Laurel does is to ensure its retailers are successful. He noted that Laurel’s IGA customers say its employees care and are ready to solve a problem without evaluating “whether there’s an ROI on it. They’re just going to try to solve the problem as best they can.”
Ross said wholesalers across the world have been forced – like every modern company – to figure out a way to take cost out and be more efficient, adding that it’s easy to rationalize retailer support in those decisions. He said Laurel has never “scrimped” on customer service.
“When you prioritize that, usually a very successful business follows,” Ross said. He pointed out the signs posted around Laurel that say “Think Retail.”
“Everywhere you go in the company it says ‘Think Retail.’ They prioritize retail thinking over wholesaler thinking and, to me, that’s genius.”
Area director: Working with Laurel ‘easy job’
Doug Stone has been an area director for IGA 18 months and works with Laurel as one of IGA’s licensed distribution centers. In his role, Stone said he interacts with the wholesaler to “assist them in making sure that they’re taking full advantage of the IGA programs.” Laurel has a “great bunch of people to work with, so it’s an easy job.”
Stone said Laurel is unique in that is has been owned by the same two families
for 100 years – the company’s anniversary is this year – with each family having 50 percent interest in it.
“Laurel has been extremely easy to deal with because they do have that family ownership and they’re involved in the community, they’re involved with their retailers,” he said. “One of the things that makes Laurel so great is that family relationship, it isn’t just business reporting to a quarterly P&L program for Wall Street.”
He added that, as a wholesaler, Laurel “does a tremendous job” of being able to relate to its retailers, noting the company has a few corporately owned stores.
“That gives them the ability to understand what’s happening at retail, and then Please see page 28
2022 Midwest/Southeast Wholesaler of the Year
they can translate that into what they do for the independent,” he said. “That’s worked really well for them.”
The relationship between IGA and Laurel is “really pretty seamless,” according to Stone. In many cases, Laurel customers are taking advantage of IGA programs delivered by the wholesaler that they may not realize are from IGA because of the close interaction between the two.
Stone cited an old promotional program –IGA Days. “That was an IGA program, but Laurel has taken that on wholeheartedly and is now delivering that program seamlessly to the retailer.”
He said Laurel understands that delivering that program to the retailer, having that IGA product on the shelf and then having the consumer bring it home is “a seamless delivery of IGA programming and IGA opportunities for the retailer that will deliver superior results.”
Stone said Laurel really cares about its retailers and acknowledges that it wouldn’t be anywhere without them. The company also recognizes that “the retailers are always going to have to come first if Laurel is going to prosper. But then at the same time, if Laurel can prosper, the retailers also will prosper. It’s really integrated into how they work with the retailers. They’re very close.”
Stone also said Laurel has a “tremendous sales team of store counselors” who work with retailers to address any issues they may have.
“It’s a good team,” he said. “I have to really call out Jake Jennings, who is the IGA contact, our first point of contact within Laurel for IGA…Jake’s a great resource for the IGA retailers within Laurel, and we wouldn’t be half of where we are without having Jake and all his team there that are supporting IGA.”
Jennings, senior director of marketing and advertising for Laurel, termed Laurel’s association with IGA as one of its most beneficial partnerships.
“A high percentage of Laurel’s sales volume is from IGA retailers, and Laurel carries one of the very highest SKU counts amongst all wholesalers nationwide,” Jennings said. “We have worked hand-in-hand with John Ross and the IGA team to develop a program for our retailers that taps into all of the great tools that IGA has to offer – the National Digital Ad, the Coca-Cola Institute and much more.
‘Thrilled’ to be a customer
Durham’s Grocery in Stanford, Kentucky, is approaching its third generation of family ownership. Manager Craig Crain said the store was founded by his grandfather in 1957. His parents, Joe and Robin Crain, bought it from him in 1977. Craig and his wife, Sarah, will be buying the store from them as they prepare to retire.
Durham’s has been a customer of Laurel Grocery Co. for about 45 years, Crain said. While there are other companies in the market, the Crains are “just so thrilled with Laurel.’
“They do their best to keep us competitive,” he said. “They do a great job on pricing and helping us with different programs that we can use at the retail level.”
This includes in-store radio and personalized ads for print and online. Crain added that the Laurel team helped set up the store’s website.
“What a great job that Kip [Faulhaber] and Jake [Jennings] and that team have done with our online presence. It was such a big thing for us,” he said. :We didn’t have Facebook, we didn’t have a website, we didn’t have any of that stuff a few years back.”
Durham’s online presence has grown to 10,000 followers in a town of 3,000 people.
“That’s pretty huge,” Crain said. “We’re able to reach people that we just weren’t able to reach before, thanks to them making it possible for us because we didn’t know how to take those steps and make that happen.”
“Their team is just great, constantly thinking of ways to make us more successful –because we’ve got to be successful for them to be successful, and they really do a good job at that,” he said.
Crain said their retail advisor listens and responds to any needs. One example is when Durham’s had an issue with some old endcaps. He happened to mention it and within a week he found some endcaps, came to the store and helped set them up.
“They are just great at anything we need,” Crain said. “They are on top of it.”
“Laurel has combined IGA’s offerings with our own exclusive Laurel programs to provide a unique experience for our IGA customers that is second to none.”
Jennings added that Laurel has won several consecutive “Love the Savings” and “Fall into Savings” IGA marketing contests. He credited the wins to supplementing IGA marketing materials with Laurel’s content for social media, in-ad promotions and contests.
“We have worked very closely with Ashley Page and Heidi Huff, who have been tremendously supportive of Laurel from a marketing standpoint,” he said.
Jennings also noted the growth of private brands among shoppers over the past three years.
“IGA and other private brand products are a huge part of Laurel’s value proposition and will continue to be in the future.”
Praise for going ‘above and beyond’
Tate Cox became president of his family’s company, Cox Foods IGA, in February 2020, just before the COVID-19 pandemic hit. Coming into a new position at such a difficult time, he said he was grateful to have Laurel Grocery Co. as the company’s wholesaler.
Laurel helped Cox Foods’ six stores in eastern Kentucky get through the pandemic.
“There were so many retailers out there who were struggling to get product, and Laurel did a fantastic job of making sure that the independent was staying competitive with top retailers around the country,” Cox said.
He said he considers the relationship with Laurel Grocery as a true partnership. “We have to work together in order to continue moving things forward. They’ve really stepped up to the plate and done a fantastic job over the last two-and-a-half years. They’ve been more than just a retailer. In my opinion, they’ve been good friends.”
With Cox Foods IGA and Laurel Grocery being family businesses, Cox said it really works and “kind of goes hand in hand.” He said the Laurel team is willing to go “above and beyond,” offering a little extra special attention that isn’t found in some larger wholesalers.
When eastern Kentucky was hit with major flooding earlier this year, Cox had just one store that sustained damage. But Laurel Grocery made sure his company had what it needed, including extra pallets of water to distribute in the community.
“The president of [Laurel] was on the phone with me the next day, asking, ‘What can we do to support you?’ That’s just one instance of many where they stepped up in an area where they wouldn’t have had to have done anything, but they did,” Cox said.
While the stores came through the floods relatively unscathed, the same was not true for 25 to 30 of Cox Foods’ employees. “They lost a lot, and some lost everything. It was definitely a challenge as we’ve kind of worked through that season,” Cox said. “It definitely helped that Laurel was willing to jump in and do what they could.”
‘Care a lot about retailers’
Bill Price, owner of McMaken’s IGA in Brookville, Ohio, has been a Laurel Grocery Co. customer since 2001. He chose Laurel Grocery because “they weren’t the biggest guy around, but they seem to care a lot about retailers, and it was like doing business in the old days. And it’s still that way.”
With Laurel, Price said he doesn’t have to go through several people to get an answer for anything.
“I could make a phone call to Winston Griffin, the owner, or David Pearson, the president of the company, or Kip, the vice president of merchandising, and get an answer that day,” he said.
Laurel Grocery often has gone the extra mile for Price, especially when Hurricane Ike came through in September 2008.
“They sent us reefer trucks and some people to help us restock the store,” he said. “They’ve always just went above and beyond what they really need to do.”
Price also enjoys the seminars Laurel offers, along with a conference call where people share ideas “about what’s happening in today’s environment.”
He also appreciates the fact Laurel is an independent wholesaler that has been family owned for 100 years.
“I think that means something,” he said. “I just think they’re good, hard-working, honest people who are a lot like the independent retailers. I’ve always felt like, as far as their pricing and the people that they have running the organization, they’re top notch.”
Laurel Grocery Co. • Annual Food Show
Northern Kentucky Convention Center • Covington, KY • August 2022
2022 Midwest/Southeast Wholesaler of the Year
Awards Presentation at Annual Food Show
They go ‘to bat’ for customers
Ken’s Fresh Foods in Flemingsburg, Kentucky, has been a Laurel Grocery Co. customer since October 2020. Joel Techau, who owns the store with his brothers Jason and Neal – along with two separate Save A Lot stores – has been pleased with the wholesaler’s level of service.
Techau was familiar with Laurel President David Pearson from his days with SuperValu. “It’s actually not only the service level, as far as just deliveries, but the service level from their people,” he said.
Techau said they have regular contact with at least six to eight Laurel employees, which was not the case with the previous wholesaler.
Techau also noted that, when the store joined Laurel Grocery, the wholesaler did not have a case-ready meat program in place. He asked the Laurel team if there was a possibility of developing one and it happened.
“It seems like it’s pretty successful not only with us but with other retail stores for them,” he said.
Techau also mentioned Laurel’s help with the store’s social media presence, which it didn’t have before.
“They came in and gave that a shot in the arm as far as helping us with that presence with our ad and different things,” he said. “We’re seeing an uptick in people that are going to and liking our Facebook page and looking for our ad.”
Techau said Laurel Grocery offers a level of service that has been “missing in the wholesale part of food service.”
“When you’re a small independent, it really is nice to have assurances from your wholesaler that they’re really going to bat for you,” he said. “I feel that in the short time that we’ve been on board with them they have done that and above and beyond.”
$7 million in purchases - Jackson IGA - Store Director Von Allen (Owner Tate Cox not pictured)