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The Shelby Report Celebrates the National Grocers Association The National Grocers Association (NGA) was incorporated on Oct. 1, 1982, as a national trade association representing three groups: independent food retailers, retailer-owned cooperatives and wholesalers. At that time, our country was just beginning to emerge from a severe economic depression, and interest rates, inflation and unemployment were high. Grocers’ top concerns at the time were competition from “super” warehouse stores, mergers and acquisitions among chain grocers, and predatory pricing. In the 36 years since it was founded, NGA has continued to track what independent grocers are most concerned about and be their educator and advocate on those issues. Today, NGA serves as the voice of the independent supermarket industry, representing the retailers and wholesalers that comprise the independent sector of the food distribution industry. They represent more than $131 billion in annual domestic sales. These companies also account for nearly 1 million jobs that equate to more than $30 billion in wages. NGA, under the leadership of President and CEO Peter Larkin since July 1, 2010, has seen growth—in membership, in the scope of its annual NGA Show, in its educational and communication efforts, and in its advocacy for its members, among other endeavors. Today, there are more than 1,400 NGA retail members; the show has a new equity partner and is moving to a bigger venue in San Diego in 2019; and the association remains committed to and focused on better serving its membership. In these pages, we celebrate NGA’s success and how Peter Larkin’s leadership and the team he has assembled are working to ensure the success of the independent grocer today and for many years to come.
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Larkin’s Career Track Provided Experience to Run NGA Successfully Peter Larkin is one of those people whose career path seems to have been tailor-made to land him where he is today—as president and CEO of the National Grocers Association. In 1976, after graduating with a degree in political science from the University of Vermont, his first stop was in Washington, D.C., as a legislative assistant to Congressman Donald Mitchell, a Republican from Larkin’s home state of New York. That was followed by positions with Philip Morris USA (the CPG perspective), The Kroger Co. (the retail perspective), the Food Marketing Institute and the California Grocers Association (the association perspective), and the creation of his own government relations consulting firm, Larkin Public Affairs (the entrepreneur perspective). He came to NGA directly from Larkin Public Affairs, which was a successful and growing business and could have been the last stop on his career path. But the association world was not done with him yet; he was named president and CEO of NGA on July 1, 2010, succeeding Tom Zaucha, who had served as president and CEO of NGA since its formation in 1982 when NARGUS and CDFA merged to form a new association to serve the needs of independent grocers and the wholesalers that serve them. In addition to his duties at NGA, he also serves as president of the NGA (education and research) Foundation. He also serves on the boards of the National Cooperative Bank, the Savemart Companies CARES Foundation, the U.S. Chamber of Commerce Committee of 100, the Advisory Board of Encore Associates, and Making Change (an industry charitable-giving nonprofit). He is a past board member and chair of the Food Industry Association Executives (FIAE). Just before Larkin celebrated his eighth anniversary at the helm of NGA, The Shelby Report sat down with him for an extensive interview. Following are excerpts from that conversation.
Q. Walk us through your background.
I went to the University of Vermont and pursued a degree in political science because I had an interest in government and public policy. I even thought someday I would run for elected office. Even though the University of Vermont did not offer a formal Washington internship program, I worked with my advisors to allow me to spend a semester working in the office of my home district Congressman, Don Mitchell. It was an incredible learning experience, and after returning to Vermont for my final semester and graduation, I was offered and accepted a full-time job in his office. My dream was coming true, and my career was off to the start I had always envisioned.
CPG company with interests far beyond their foundational tobacco business. I accepted a job as coordinator of public affairs and was working and living in Manhattan by November. I spent a lot of time in the city when I was growing up and was excited about living and working there. The resources made available by Philip Morris and the Peter J. Larkin challenge of working for a Fortune 100 company was another career experience that I felt fortunate to have at that stage of my work life. But the best part was that I meet Jody in New York, and we were married in February 1979. After a brief stint working for one Philip Morris’s trade associations in Wisconsin, I was contacted by a former Philip Morris colleague who was then working for Kroger. After he facilitated an introduction to his boss and subsequent interviews, I accepted a job as regional manager (later as director) of public affairs. Jody and I packed our bags and moved to Dallas in 1982, where I provided government, media and community affairs services to a multi-state region of Kroger divisions. I continued as regional director of public affairs (after moving to Cincinnati in 1987 to work out of Kroger headquarters) until the company went through a major financial restructuring in late 1988. As a result, approximately 300 of us left Kroger in October, and I was in a position that I had never been in—looking for a new job. After a short search period I had offers from several companies but made the decision I wanted to stay in food retailing. I accepted a job as director of state government relations at the Food Marketing Institute and moved back to Washington, D.C., in February 1989. Eventually I was promoted to vice president and added responsibility for environmental affairs programs. In 1996 I was approached by Darioush Khaledi, chairman and CEO of KV Mart (an independent supermarket company in Southern California) and incoming chairman of the California Grocers Association board. They were beginning a search for a replacement for their retiring CEO, and he was interested in knowing if I would be interested. The association had fallen on hard times, and my job would be to turn it around. After consulting with Jody and our daughter Meg, we decided to move 3,000 miles and take part in a California adventure. I had my first CEO job, and for the next 11 years worked to rebuild CGA into a functional and respected association. During the latter half of 2007 I decided that I wanted to try my hand as an entrepreneur and informed the CGA leadership that it was time to move on. In January 2008 I started Larkin Public Affairs (LPA), where I worked with food retail, wholesale, CPG and service company clients. I thought I would do that for the rest of my career. LPA was financially successful, and Jody and Please see page 28
Larkin’s career Stephanie Reid talks with NGA’s Peter Larkin and Laura Strange. Every two years all members of the House of Representatives run for re-election, so my next job was to leave the Capitol Hill staff and work with Congressman Mitchell on his re-election campaign. Every day I traveled with him as his “advance man,” which meant I kept him on schedule and helped him refresh his memory on all the people he was meeting at each stop on the chicken dinner circuit. I quickly learned that while I liked the Washington office staff work, I was not cut out for the campaign trail, and soon my desire to ever run for office on my own was diminished. Raising money, constant travel and strain on family relationships are issues that all elected officials have to endure. After the campaign, I went back on the congressional payroll and thought I would be there in some capacity for the rest of my career. But that’s not how life works. In the summer of 1977 I received a call from a recruiter from Philip Morris in New York. By then they had grown into a major
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1976: Earned bachelor’s degree in political science from the University of Vermont 1976-77: Legislative assistant to U.S. Rep. Donald Mitchell (R-NY) 1977-79: Coordinator of public affairs, Philip Morris U.S.A. 1979-82: Regional office for The Tobacco Institute 1982-88: Manager of government and media relations programs for The Kroger Co. 1989-96: VP of state government relations and environmental affairs for the Food Marketing Institute (FMI) in Washington, D.C. 1996-2007: President and CEO of the California Grocers Association, president of the CGA Educational Foundation and officer of the California Shopping Cart Retrieval Corporation (a for-profit subsidiary of CGA) 2008-10: Founded and operated Larkin Public Affairs, a government relations consulting firm July 1, 2010: President and CEO of the National Grocers Association
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Special Section • SEPTEMBER 2018 • The Shelby Report of the Southeast From page 26 game in government relations, communications, education and Meg were happy living in California. The NGA Show. Some associates were up for the task, others In February 2010 I was contacted by the firm handling the were not. Change can be difficult, and several decided to pursue NGA CEO search, and after a few interviews and weeks of soulother opportunities. searching, I accepted the job. Jody and I moved back to D.C. for The first major addition to the staff took place when I recruited the third time in my career. Charlie Bray, a former FMI colleague and veteran association CEO. He was ready for a career change and joined NGA as Q: Tell us about the team you’ve built here at NGA. EVP, COO and CFO in October 2010. Together we rewrote job To build the right team, you must listen to the membership to descriptions and reached out to find the right people to do the see what they want their association to be. Once you determine right jobs. And some of our best performers were already on what programs and services the members want—and are willing staff and ready, willing and able to get the job done. to pay for—you need to recruit associates that understand and Tom Wenning, EVP and general counsel, and Greg Ferrara, can deliver on the promise. So, we set out to find the answers to government relations manager, had the experience, capability those questions. and desire to expand our government relations program and With the help of Dr. Steve Perry and members of the NGA have been doing so ever since. While Tom retired in 2017, Greg Board, we developed a process to listen to members with a goal has assumed many new responsibilities (he’s now EVP of advoof determining what they liked about NGA, what they thought cacy, public relations and member services) we could do to improve and what they alongside Matt Ott, EVP, COO and execuwanted from NGA in the future. The process tive director of the NGA Foundation. consisted of three components. Matt was one of the early recruits, joining First, I traveled around the country and NGA in November 2010 as membership met with members and non-members to manager. Other professionals like Laura ask those three key questions. And I got an Strange, VP of communications, marketing earful. and industry relations, and Chris Jones, VP Second, Steve Perry conducted lengthy of government relations and counsel, are phone interviews with nearly 50 key induslater additions that have added trementry executives. dous value to the team and our members. Third, from what we learned in steps one Many others on the NGA team—too numerand two, we developed a survey that went ous to mention—are working hard every day out to over 2,000 members. to serve the independent channel of the All that input led to the creation of the grocery industry. We are lucky to have them, NGA Member Value Proposition Project, Tom Wenning, presenting Chris and I am proud of what they have accomwhich consisted of eight separate initiatives Coborn with the Thomas F. plished over the last eight years. that would become the road map for how we
Wenning Pinnacle PAC Award,
would provide the programs and services and Trygve (Trig) Solberg, that our members identified as important. chairman of the NGA Grocers PAC Now, to your question about building the in 2016. team. Frankly, the direction we were taking because of the MVP Project meant that we need to step up our
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Q: So, listening formed the basis of your leadership here?
Yes, and it is something I try to do on a Please see page 32
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Special Section • SEPTEMBER 2018 • The Shelby Report of the Southeast From page 28 regular basis to stay in touch with our members and their needs. The food retailing industry is changing at a very rapid pace and is becoming more complex. If the industry changes, the associations that represent the industry must understand and adapt to the change. The only way to do that is to listen. In February of last year, at an NGA Executive Committee meeting, I asked committee members to talk about the challenges facing the industry. They talked, we listened and learned from their real-world experience what they saw as the challenges and opportunities facing independent grocers. A few months later we reconvened the group, but this time listened to how they felt industry changes would impact the association. They had several important observations and suggestions, which we used to update the MVP Project. The following October, the full Former NGA COO Charlie Bray, his wife Becky and the NGA Board continued the conversation and ultimately adopted a McMenamins of McMenamin Family ShopRite at a revised, updated version of the NGA Member Value Proposition previous NGA Show. Plan. While the update covers all aspects of NGA, perhaps none and the financial resources they have, our odds just improved as important as the future of The NGA Show. dramatically. Frankly, we may have an opportunity to attract an even broader audience. We’re never going to give up the focus Q: What benefits does your new partnership with on independents, but there is no other real food industry retail Clarion/Urban Expositions bring to the NGA Show? show out there, so we and Clarion think we can build on the We have grown the show consistently over the last eight years, foundation that we have. and I think we could probably continue to do so. We were not They will bring more human resources; they will bring more looking for a partner; the partner found us and came to us and financial resources to the table. When all was said and done, we said, “We like what we see; we would like to help you grow, and thought the partnership made the most sense for the future of we have a track record and, frankly, the financial resources that the Show and NGA. They’re taking on the overall management can help you do that.” of the entire event, with the exception of our Creative Choice So, over a period of many months, we had conversations Awards program and the Best Bagger competition, which about what that means: what is the structure, how can you help continues to be NGA’s. The Women Grocers of America’s 5k Fun us? We did a lot of our own research. Clarion/Urban Ex is one Run will continue to take place at the show as well. of the world’s largest convention/trade show companies. They They will take over the bulk of the management of the entire own over 200 events. They run shows, and have for years. In the event—but with our total input. It’s a very collaborative process. food arena, they have the California Restaurant Show, New York Restaurant Show, Florida Restaurant Show and Coffee Fest. Q: What does San Diego hold for the 2019 NGA Show? As we’ve already discussed, the industry is in a very critiThere is no place prettier, nicer or with more to do than San cal change point. NGA has limited resources available, so the Diego. In our marketing materials that you will start seeing soon, question was: could we have continued to grow the show? I think so. But with the partnership as powerful as Clarion/Urban, Please see page 34
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Special Section • SEPTEMBER 2018 • The Shelby Report of the Southeast From page 32 we’re going to highlight all of the things that people can do been doing for the last 10 years, and B) we have a recognizable while they’re there for the show or what they could do before and easily identifiable niche in the industry. We are the voice of and after and if they want to bring their families. And the San the independent supermarkets in the United States. That focus Diego Convention Center is a larger venue, so we will have an helps us tremendously. We have about 7,500 stores that are covered under our retail expanded exhibit floor. We’re already working with our Clarion membership companies. Based on our research, there are partners to talk about what those opportunities are. The last few 21,000 of them out there. years we’ve had a waiting list of companies for the show floor, so So there is still room for growth; it’s just going to take a differthat allows us to bring them in. Plus, we think we can grow the ent approach. It could be some of the ethnic grocers, particuretail and wholesale audience as well. larly in some of the urban areas, areas where A&P and Pathmark and some of those went away. In some cases, there were ethnic Q: Why has your show continued to be successful? owners/operators that came in and started a business for the It’s not a mistake that our tagline for the NGA Show is “Where first time or expanded from two stores to four stores or whatever. Independents Gather.” We make sure our show is relevant to We need to do a better job of understanding their needs and a them. It’s not just the Expo floor. That’s valuable, but a big part better job of being able to communicate our value proposition. of who we are and what we do every February is provide 40-plus educational opportunities that are geared specifically to an independent operator. I prefer that when you walk into a workshop you see independent retailers and their wholesalers sitting in the audience, and up in front of the room are other retailers and wholesalers that are talking not about research, not about what could be done; they’re talking about what they have done that has been successful. People sitting in the audience are taking notes about how I am going to do this when I go home. Or how maybe the person in the front of the room said, “I was going to try this or thought I should do that and it didn’t work, and here’s why you should be careful if you try the same thing.” Our workshops are designed to provide information that can be used the day attendees go back home. And I think that is a big part of our success. We have heard many, many times that companies will decide who and how many people to send based on the workshop lineup. This is the one opportunity for retailers to get out and go to a show that is relevant to them, and it’s relevant to them because of our focus on education. I believe our keynote speaker is a draw as well because we bring somebody on stage on Sunday night who attendees are interested in hearing from, and otherwise would not have an opportunity to see up close and personal. We have a list of possibilities for 2019…
Q: What are the qualities of the most successful independent grocers?
The “headliner” for the 2017 NGA Show was former Speaker of the House John Boehner, whom Larkin interviewed after Boehner’s opening remarks.
There is a reason we call independents the entrepreneurs of the food industry. They understand their consumers and know many of them on a personal basis. If you know your customer, then you can respond more easily to what their needs and wants are. Independents are also flexible. At the NGA Show this past February, we showcased three different independent operators that modified the way they go to market based on their read of their consumers’ needs. Jimmy Wright, a one-store operator in Alabama, is now deep into e-commerce, online ordering and delivery. He can do delivery better than Amazon can because he knows his customers, and they don’t mind seeing someone from Wright’s Market walk in their house and deliver groceries. We focused on Ted Balistreri from Sendik’s Markets because he identified correctly that some of their consumers preferred a smaller format, easier to shop, in-and-out, grab dinner and go. In addition to his full-size stores, which are more upscale, he’s got this modified supermarket/supersize convenience store operation. But it’s more about fresh and prepared foods than it is about convenience items. Then we focused on Roger Lowe in Texas, who gave two different examples. He’s got communities in which he operates where a full-service, mostly upscale, large supermarket makes sense, and then he has a cost-plus, bare bones, more basic store format that is more responsive to customers who live and work in certain communities; that’s what they want. All three of those examples are reflective of those two traits that I identified—understanding your own consumers and being flexible enough to address the needs. One of the realities we have to face as an industry is that for some independents, they don’t have someone in the family that can continue to operate the store or want to operate the store. It’s not an easy life. That’s when you have to say, “OK, if I can’t continue my business, whether it’s competitive pressures or whatever, there may be another independent operator that is in that general area that could take that store and compete very effectively with Dollar General or Aldi or Kroger.” That’s one of the things we see happening. We see some of our stronger operators taking some of those stores.
Q: Where do the wholesalers come in from the Show perspective?
Q: So, what are some little-known facts about Peter Larkin? Were you a baseball guy, a football kid?
Wholesalers want to be there for many of the same reasons because they’re wholesaling to independent operators. The independent grocery industry is just as important to them as it is for the companies they serve. So it’s the information we provide and, more importantly, the networking, the ability to be with their customers. There are very few places other than their own buying shows that they have a chance to be with their customers. And they’re also seeing a lot of retailers that aren’t their current customers, and sometimes those conversations take place at our show.
Q: Why does NGA seem to be thriving as an association at a time of major disruption?
Let me start by saying that we are not immune to those forces. We understand that there could be fewer independents; there may be fewer but stronger independents. Our crystal ball is only as good as anyone else’s, but we recognize the fact that the industry is changing. I think part of the reason we have been successful and we think we will continue to be is, A) we listen to our members and try to give them what it is they want and not just do what we’ve
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I played Little League baseball some in middle school; I was on the swim team through high school. I gave it a thought in college but I wanted to do other things when I got there. I played a lot of hockey growing up and when I was at the University of Vermont, their hockey program was the next thing to the NHL. They graduate a lot of players into the professional leagues, so I wasn’t that good, but I lived in a fraternity with a bunch of the hockey players. I used to run the intramural program at the school so I was on the ice a lot organizing teams and refereeing games. I am a drummer and have been in bands over the years. Up until the time I left California, I played in a “dads band” (The Yard Dogs). I love to play golf; I play as much as I can.
Q: Any plans after NGA?
Jody and I love Maine and everything about it, and I do a lot of fishing when I’m up there. That slice of land that we own up there is our piece of heaven. When I hang up my spurs from NGA I’ll be spending a lot more time there, but even when I retire I plan to stay involved in the food industry. Hopefully I’ll pick up some consulting jobs and board positions. I’m incapable of not doing anything, and I want to stay connected.
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NGA Membership Offers Multiple Benefits There is strength in numbers, goes the old adage, and that’s definitely the case for an organization like NGA. The more members NGA has, the more clout it has when fighting against legislation that would be harmful to independent grocers. But in addition to the power it adds to NGA’s advocacy efforts, grocers who are members of NGA gain some things that benefit their individual businesses as well. “Being part of NGA is also about belonging to a community, learning best practices, and taking advantage of opportunities and resources that NGA brings to the table,” says Greg Ferrara, EVP of advocacy, public relations and member services. “We are really all in this together, and having relationships and friendships with independent grocers and suppliers from across the country can be an invaluable resource. NGA helps make those connections happen.” Matt Ott, EVP and COO of NGA and executive director of the NGA Foundation, said that membership nearly doubled in the last couple of years. With NGA’s Member Value Proposition (MVP) in place, the association continues its focus on how it can meet the needs of its members. “Being a member of NGA is a lot like buying insurance. You may not really understand the value until you need it, and then you are thankful you had the resource.” –Current NGA member
Share groups—putting the ‘work’ into networking
Ott says share groups provide a forum for retailers to network and talk to other retailers, which is at the heart of what makes them a success. “They are autonomous groups. They set the agenda, they decide where they want to meet and what topics they want to cover,” he says. NGA currently has eight share groups, including department- and functionfocused groups for CFOs, CIOs, marketing executives and HR executives, for example. More are being developed, Ott said. “It’s an extremely popular benefit for those that participate in it,” he said. Because these groups are made up of non-competing retailers, they freely swap ideas and share best practices. “Independents are no strangers to a rapidly-changing marketplace, and since they are nimble by nature, they are able to implement cutting-edge strategies that are uniquely tailored to the communities they serve,” Ott says.
Information…and action
“In today’s information age, people are both seeking and receiving information on a variety of issues like never
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before. NGA strives to provide timely and relevant information, resources and tools for our members, and other stakeholders to learn more about the independent supermarket industry,” said President and CEO Peter Larkin. Responsible for generating more than $131 billion in sales and nearly a million jobs, independents are a backbone of the national economy and local communities. Given their close ties to their communities, it is increasingly important for independents to communicate with policymakers in Washington about the impact legislation and regulations have on the supermarket industry, their employees, and the consumers they serve. NGA sends out action alerts on advocacy issues that need grocers’ immediate attention. And NGA has made it simple. “We’ve made engaging in the political process turnkey so that our members can get involved anywhere at any time,” said Ferrara. Issues of great importance to grocers in 2018 include the Farm Bill reauthorization, nutrition policies such as SNAP, menu labeling, interchange fees—the list is long. In June, NGA lobbyists held 50-plus meetings with congressional staff for one provision of the Farm Bill, said Laura Strange, VP of industry relations, communications and marketing. Despite a long list of critical issues impacting the industry, a collective and unified voice from independent grocers will make a significant difference to enact policies that help the local grocer remain successful and independent.
Accessible resources
In recent years, NGA has invested more resources throughout the organization’s advocacy, education and communications efforts to help ensure independent supermarkets thrive in today’s competitive environment. “At the end of the day, regardless of how you’re going to engage with the association, we have tried to make our tools and resources as accessible as possible,” Strange said. “We have something for everyone,” Ott added. “Whatever category of membership you are—retail, wholesale, associate—if you have a problem and you need help with it, contact us. The NGA staff is more than happy to answer any call at any time to help a member or company in need.” Larkin said that education is becoming more important than ever because of the swiftly changing nature of the grocery industry. “Whether it’s store formats, technology, e-commerce, alternative formats— all these things are changing the nature of our industry, and independents are eager to explore and learn about these issues,” he said. That’s why there are 40-plus educational sessions at The NGA Show. And that’s supplemented by online training opportunities—webinars, etc.—that are available year-round.
Santa Fe grocer and NGA board chair talks benefits of membership Cheryl Sommer was installed as NGA chairman of the board in February 2018 during the NGA Show in Las Vegas. She first was appointed to the NGA board in February 2011; in February 2013 she was appointed to the association’s Executive Committee. Sommer also is a supporter of the Grocers PAC (Political A c t i o n Committee) and a past member and NGA Board Chair board member Cheryl Sommer, of the Women owner of Kaune’s Grocers of America Neighborhood (WGA), an organiMarket. zation that operates under the umbrella of the NGA Foundation. Its mission is to promote the recruitment, growth, development and empowerment of women within the independent grocery industry. Sommer recounts some of the reasons an independent grocer ought to be a member of NGA: “From educational programming, such as webinars or online training, to networking opportunities and creating a community, NGA provides so many accessible resources for the independent grocer. One of the most important things NGA does on behalf of its members day in and day out is to serve as the voice of the independent grocer in Washington, D.C., and beyond to advocate for its members. It’s the only national trade association with the sole purpose to protect and advance the independent supermarket industry, and that mission drives the wide variety of member benefits the organization provides.” Asked about her goals as NGA chairman, Sommer said, “I want to continue our efforts to ensure diversity among the membership and the board. As the operator of a small, single store, it is important to me that NGA continue to provide a place for meaningful involvement of smaller independents as well as large operators.” She says she also is looking forward to working with the NGA board and association staff to implement NGA’s long-range plan, which covers areas like government relations, membership growth, the NGA Foundation, share groups and the NGA Show. “Finally, I look forward to working with the board and the staff of NGA to create a strong financial plan, which will ensure the long-term stability of NGA,” she said. Sommer shared some of the highlights for her—and probably for many of her fellow NGA members—of being an independent grocer. “The ability to serve the members of our community is a very rewarding experience. We employ local citizens; we provide a location to purchase food necessary to sustain families; we are an outlet to learn about new and exciting products from around the country and the globe; we are a place see neighbors and friends; and we support local nonprofits. I count myself lucky to be in this industry.”
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Supporting important causes
There is a group of NGA staffers Larkin said the Alzheimer’s that gets together on monthly basis Association offers a “tremendous to support charitable causes that number of services” for those famiresonate with them, and the orgalies going through the disease. nization as a whole participates in “They’ve got counselors, they’ve events at least a couple of times got all kinds of information that’s a year, says Laura Strange, VP of very, very important,” he said. “So industry relations, communications spreading the word about what they and marketing. do and how to help people who are This past Christmas, NGA did dealing with this in their families is an “adopt a family” project. Staff equally as important.” members chose a family member Larkin is a member of the and purchased items on their Committee of 100, a group of CEOs Christmas wish list. of some of the largest associaNGA also conducts a food drive tions in D.C. that is run by the U.S. every Thanksgiving, she said. Chamber of Commerce. He’s also Peter Larkin leads by example a member of a group comprising in the realm of giving back. In fact, food and beverage CEOs who live he was a regional honoree at the in Washington. Alzheimer’s Association’s “Brain Those connections help Larkin Ball” in May in Washington, D.C., for and NGA be aware of the opportuhis longtime support and fundraisnities for giving that are out there. ing efforts. Larkin’s father died from “We contribute to a lot of differthe disease. ent things,” he said. “Over the years Lots of bicycles were under the NGA “My brother and sister and I went it changes because you can’t do Christmas tree as part of an through the whole process from everything, but you want to be able “adopt-a-family” project in 2017. early diagnosis through (his passing); to support everyone over time. it’s quite a journey,” Larkin said. “So “I know a lot of our staff members I understand what the Alzheimer’s Association does and the are volunteering and supporting causes that they feel are services they provide. And research is extremely important. It’s important because when you think about it, that’s what the the only disease in the top 19 that is not only not curable but association world is all about,” Larkin said. “We’re all about not really treatable. So all the research is important to at least group support kind of stuff.” get us to a point where we can deal with this disease.”
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The NGA team
Ferrara brings retailer background to his advocacy role
Greg Ferrara, EVP of advocacy, public The association has been thriving in a relations and member services, serves time of rapid change for both the superas NGA’s chief lobbyist, responsible market industry and the association for representing the association and world, and Ferrara pointed out a few of its members before Congress, federal the reasons he believes that’s the case. agencies and the executive branch on a “We are passionate about representing wide variety of issues. He also oversees the independent supermarket industry the NGA Grocers PAC, NGA Advocacy and come to work each day focused on and Legal Fund and grassroots efforts. ways to protect their business and help Additionally, Ferrara has responsithem thrive,” he says. “Customer service bility for NGA’s communications and is paramount, and we will go to great marketing department, which is led lengths to help any member, whether by Laura Strange, and the retailer and they are our smallest member or our wholesaler member services departlargest. We are also a nimble organizaFerrara spoke at the Oklahoma Grocers ment. Ferrara also works to maintain tion. We have that same entrepreneurial Association’s Chairman’s Dinner in an excellent relationship between spirit that many of our members have, Oklahoma City on May 1, 2018. There, NGA and its state grocery association so we’re able to move fast and get wins he presented Jim Brown, president partners. He previously served on the for independent grocers when they of Doc’s Food Stores, with the NGA’s board of the Food Industry Executive need it most. Greg Ferrara Clarence G. Adamy Great American Association. The Shelby Report first “Finally,” Ferrara says, “I think a lot of Award for government and public affairs. sat down to catch up with him at the it has to do with our members, who are Tennessee Grocers & Convenience Store back in Louisiana for Associated Grocerspassionate about NGA and having an Please see page 48 Association, where he spoke at its annual Baton Rouge but returned to NGA in convention. 2007. Ferrara earned his BA in political Ferrara first joined NGA in November His position at that time was director of science from Loyola University in New 2005, bringing experience on the retail government affairs, mostly heading up Orleans and is a fellow of the presside of the industry: His family owned and state affairs. He took over federal relatigious Institute of Politics at Loyola operated supermarkets in New Orleans. tions a year or so after that, he says. University. He is a graduate of the “I grew up working in and ultimately Subsequently he became VP, SVP and NGA Executive Leadership Program at running the business,” he said. now, as noted, EVP, with responsibility Cornell University. He’s also an Eagle Sadly, the store was destroyed by for the government relations, public relaScout and an avid outdoorsman who Hurricane Katrina after 99 years in tions and retail/ wholesale membership enjoys camping and cooking. Ferrara business. departments. and his wife Nicole have two children, Ferrara left NGA for nearly two years to “I have been with NGA for around 12 Matthew and Katelyn. become a corporate projects manager years and it’s been great,” he says.
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Special Section • SEPTEMBER 2018 • The Shelby Report of the Southeast
The NGA team
Association management is the Ott family business
Matt Ott
Although his resumé may reflect about 17 years of non-profit and association experience, it’s really many more. Matthew “Matt” Ott, EVP and COO of NGA and executive director of the NGA Foundation, jokes that he’s been running around trade show floors since he was a kid. Ott’s grandfather started an association management company back in the 1950s. He was working for a U.S. representative at the time and realized that a lot of special interest groups did not have proper representation—no associations to protect their interests in the legislative process. He figured he could help these groups start their associations. “So that’s what he started doing,” Ott says. “Our family vacations, since my mom worked for my grandfather’s company, were going to Orlando. I would help them run registration at whatever association’s trade show was going on.” Like many people who grow up in a business, he wanted nothing to do with it when it came time to choose a career path. Yet he did major in non-profit administration with a focus on municipal management/recreation management. When NGA was looking at making some changes to its annual convention and seeking business development expertise, it was Charlie Bray, a veteran association executive who was named COO of NGA in December 2010, who called Ott and asked if he was looking for a job; Ott happened to be ready for a change. No interview was required; Ott started in January 2011 as director of membership but has since “ended up getting my hands in just about everything,” except lobbying, he says. After Bray retired a couple of years ago, Ott stepped into the COO role. Ott also has played a key role in revitalizing the NGA Foundation, the charitable arm of the association, as its executive director.
Importance of collaboration
Ott says NGA works very closely with likeminded associations. He often travels to visit other associations’ shows, such as restaurant associations, as well as food association shows to enhance vendor relationships. “We continually work on partnerships with other associations, including state and regional associations, to make sure that we are both able to accurately and prominently display our value proposition for all members,” Ott says. “We want to be as collaborative as possible, always, and easy to work with. It’s not going to benefit us if the states and other associations in the industry aren’t doing well and vice versa.”
Passion for the membership
“I love the association industry and specifically I love our segment, our industry,” Ott said. “I’ve worked for just about any type of association you could ever want to work for—medical, insurance, scientists, teachers, etc. I can honestly say that retailers and wholesalers are some of the best people I’ve ever worked for. It’s part of what keeps me here and part of why I and
other people here want to keep working here. It’s kind The traveling Otts of infectious; it’s hard not to Ott has been married for want to do good by those eight years to wife Jillian, people.” and they have a son who Ott, Peter Larkin and is around 8 months old (as Greg Ferrara regularly visit of press time). He is named members, sometimes going Sebastian, but he and his wife out on the road several “accurately and lovingly call weeks in a row. him ‘Bash,’” Ott says. “He is as “We travel extensively and headstrong as his father and have hard time saying ‘no’ to as pretty as his mom, I think, our members because we do care about them,” Ott said. so a good combo.” “We want to get out there They enjoy traveling the and see them, we don’t want world and having new expeto let them down, and we riences, he said, even with want to be good representababy in tow: Bash already tives for them. For example, has 42,000 miles in travel, you will not find another CEO including trips to Germany out there that will make as and Austria already and soon many commitments as Peter. Canada, as well as domestic He really wants to help everydestinations. Idaho is where body and be the best repreJillian’s family is originally sentative of this industry that from; “lots of great indepenhe possibly can be.” dents to shop at out there,” Members are interested he said. in hearing from the NGA executive team about what’s going on in Washington as well as in the grocery industry. All three executives teamed up recently for a tour of Northern and Southern California, visiting a handful of members and prospects. Anytime they’re on the road, even for unrelated reasons, they will stop and see members when they can. “We want to make sure that we can get to as many members’ stores as possible with our very limited amount of time,” Ott said. “It’s something that’s really important for us.” NGA has great potential to grow its membership; it currently represents about a third of the independent grocery stores in the country. Ott says the reality is that some grocers don’t join for financial or even generational reasons (“My dad wasn’t a member, so why should I be?”). But that just spurs the association to keep trying to find services they can’t pass up. He encourages those who haven’t given NGA a look lately to give them a call. “Just because we’ve talked to them once and they said they weren’t going to join, we’ll continue to develop programs and services,” he said. “At some point, we are going to come up with something that’s going to be so valuable to them that they are going to have to join. We see that more and more.”
NGA has been a groundbreaking organization from the beginning NGA merged the memberships of two organizations—the National Association of Retail Grocers of the United States (NARGUS), representing independent retailers and small chains, and the Cooperative Food Distributors of America (CFDA), representing cooperative wholesalers. Both organizations had served their respective segments for many years; NGA was the first organization in which independent retailers and wholesalers were jointly represented. And, according to NGA’s first president and CEO, Thomas K. “Tom” Zaucha—who had been president of CFDA—years of mutual distrust between the two groups had to be overcome to make the merger work, as cited in NGA’s 30th anniversary commemorative publication. Zaucha said the industry recognized the need for an organization focused on the independent sector—“the true entrepreneurs of the food industry.” There also was recognition that there was a need for a level playing field for independent grocers. In addition to the advocacy role that trade organizations typically fill, NGA recognized the importance of a strong educational program that offered solid operational help for both retailers and wholesalers. Zaucha served at NGA until 2010. In his honor, the Thomas K. Zaucha Entrepreneurial Excellence Award was established to recognize retailers who have shown persistence, vision and creative entrepreneurship. The first award was presented in 2009 to Mike Provenzano of Pro’s Ranch Markets. In 2018, it was presented to Chris Coborn of Coborn’s.
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organization that is solely focused on the independent grocer. That may be more important than ever in today’s marketplace. It’s a huge positive to see the independent supermarket community so driven to serve their customers and grow their businesses. “NGA is here to protect the interest of the independent grocers,” he continued. “At a time when the largest retailers have teams of people in Washington and around the country, it’s essential that independent grocers know there is a team of people who are looking out for their interests each and every day.” Ferrara is highly complimentary of the staff that has been assembled at NGA to carry out the mission: “We have a great team of dedicated individuals who are truly passionate about working for an industry that really is the backbone of so many local communities. We love what we do and who we work for and are inspired each day by what our members are doing. The supermarket industry will continue to evolve and change, and I firmly believe that independent grocers will be at the forefront of that change with new formats and offerings. “NGA will be there, too—leading, challenging, and inspiring our members as they continue to push the boundaries while also supporting their local communities.”
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The NGA team
The importance of communication
Never let them see you sweat
Laura had made it through the telephone interview phase for the job at NGA and was scheduled for an in-person interview with a group that included Peter Larkin, Greg Ferrara and Charlie Bray. On the day of the interview, she had started the day working on Capitol Hill and was going to take the Metro to the stop closest to NGA’s offices and then walk the three blocks there. The Metro got stuck, and it was raining. Strange didn’t have an umbrella. She walked in wet and late for the interview. Though she had written herself off for the job already, she realized she had to compose herself for the interview, which she was sure would just become a good learning experience. Ferrara later told her, after she was hired, that one of the reasons she was hired was how composed she was in spite of the circumstances.
letters to editors, grassroots initiatives, social media, etc. Underlying all that her role entails— industry relations, communications and marketing for the various events and programs of NGA’s different departments—is making sure the value of NGA membership always is conveyed. She is assisted by Annie Stoltenberg, manager of marketing and web content. “Annie and I work very collaboratively with our colleagues across the organization on just about every project at NGA to ensure that a cohesive message is coming through,” she said. Health & wellness, sustainability, e-commerce, food safety— these are some of the areas NGA is assessing to see what members’ needs are and what the best solutions are for them. She also envisions someday launching a national campaign “where consumers get connected with their independent supermarkets.” The goal would be not only to help American consumers understand who their local supermarket operator is but also to “understand the positive impact independents have on their communities throughout the United States,” Strange said. “Whether that be in a rural area or Communication is a vital piece of an urban area or someNGA’s strategy where in between, At NGA, Strange holds a role that President there are so many and CEO Peter Larkin says is critical to the amazing stories about association’s success: “It cannot be overstated these operators who Office collaboration: Strange consults with the importance of communication. If you are really are the anchors colleague Matt Ott. unable to communicate the programs and for their communities.” services you offer or what happens on Capitol These include people like Jeff Brown in Philadelphia, who Hill or any other initiative, then it won’t make the full impact for provides employment and advancement opportunities for our members.” people who were once incarcerated. Another, Jimmy Wright, is With her experience on Capitol Hill, Strange works closely in the process of adding a healthcare component to his online with EVP Greg Ferrara and his team on advocacy press releases, delivery service. Still another, Tim Metcalfe, went undercover as a homeless man to better understand the challenges facing the homeless community. He found that bus passes to get to a job or to a shelter were a great need for those living on the streets, so he started a campaign to spread the word and raise money for bus passes. “There are all of these tremendous stories of what our members are doing out there,” she said. “The thing is, most independent grocers serve their communities in creative ways day in and day out, and they do it because they truly believe it’s the right thing to do.”
Laura Strange had a baptism by water, not fire, into the world of the U.S. government. Strange—a communications major with a minor in political science fresh out of the University of South Carolina—had just started working as a staff assistant for a U.S. Senator from Virginia when Hurricane Katrina struck in 2005. “I was taking phone calls from people who were understandably upset about the government’s response to the hurricane,” she said. “I was essentially the face of the office and the liaison between my boss and his constituents. I had to quickly learn what the issues of the day were and how to communicate my boss’s priorities as well as how to anticipate his needs so that he could better serve his constituents. To this day, I say it was one of the best teaching experiences I’ve ever had because of how much I was able to learn.” From being a staff assistant, the Virginia native rose to a correspondence assistant role and then a deputy press secretary, which put her on the Hill in the communications arena. Strange joined NGA in November of 2013 as a director of communications and marketing. Now VP of industry relations, Laura Strange Strange’s journey to NGA also included working for a trade association, lobbying on both the federal and state level for the internet services company, Yahoo, and working as a communications director for member of Congress from Ohio who was a member of the House Energy & Commerce Committee. She had done internships in D.C. during her college years that told her working on Capitol Hill would be a good fit for her. She also worked retail—in a pie shop—while she was employed fulltime for Yahoo and working on her master’s degree in strategic public relations at George Washington University. Strange had started out as an international business major, partly because she had been in a Japanese immersion program as a child and once was fluent in the language, but she quickly realized that courses like economics just didn’t appeal to her. What did appeal to her was writing, so she turned to communications.
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The NGA team
Jones: NGA and its members need each other more than ever
Chris Jones, VP of government relations and counsel for NGA, spent the first seven years of his career working as a legislative aide on Capitol Hill for various members of Congress. The North Carolina native had graduated from the University of North Carolina at Wilmington prior to that. With a primary focus on agriculture and food policy in his legislative aide days, Jones had a significant role in shaping the 2014 Farm Bill. While Jones worked on the Hill, he also was in law school parttime, taking night classes at George Mason University. He graduated in 2016 and was sworn into the bar in May of 2017, shortly before he was hired by NGA, for which he had a brief stint as a lobbyist in 2014 around the time he started his law school career. Then, he lobbied on a wide variety of issues, including payments, labor, transportation and food safety. In his role at NGA today, he oversees the association’s lobbying and legal operations. NGA’s success, in Jones’ estimation, is because it is “dedicated to providing value to our members above all else. Chris Jones Although we have a large diversity and volume of members, we make sure each and every one of them have numerous opportunities for engagement, education and collaboration.” Members need the association more than ever, he believes. “During this time of disruptions and challenges in the food retail business, I believe that membership with NGA is more valuable than ever,” Jones said. “We devote all of our efforts and resources to advancing the NGA mission of providing all of our members an opportunity to thrive in a fiercely competitive marketplace.” But the association also needs the members and their involvement more than ever. “I cannot stress enough that our greatest strength is the political engagement of our members with their elected officials in Washington. Our most significant public policy victories were achieved through grassroots advocacy when our members
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engaged in the political process by calling and writing their representatives, attending our Day in Washington fly-in, and giving their representatives store tours,” Jones said. “NGA’s success as an organization will always depend on the involvement and engagement of our members.” On July 25, 2018, Wettlin Treppendahl, single-store operator of Woodville, Mississippibased Treppendahl’s Super Foods, did what Chris Jones says is vitally important to NGA and its entire membership: get involved. Treppendahl testified before Wettlin Treppendahl the House Small Business testifies on how tax law Committee in a hearing titled impacts his business. “The Tax Law’s Impact on Main Street.” The hearing examined how the Tax Cuts and Jobs Act has affected small businesses. The committee heard directly from small business owners regarding the impact the law has had on their operations and their outlook moving forward. A fourth-generation grocer, Treppendahl shared with the committee how the new tax reform law has increased his confidence in making important business decisions and has allowed for him to reinvest in his store. “As a direct result of tax reform, we have upgraded and replaced 12 doors in the frozen foods section of our store during the past few months,” Treppendahl said in his written testimony. He also urged Congress to make the pass-through deduction permanent; establish rate parity between S corps and C corps; and make the estate tax exemption permanent.
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Peter Larkin: Leading by listening
Peter Larkin is known for his open-door policy around NGA’s offices.
Early on in Peter Larkin’s tenure at NGA—which started in mid-2010—he embarked on what became known as “Larkin’s Listening Tours.” Over the course of about two years, he met with a large percentage of NGA’s members to find out about their successes, struggles and needs. That research has formed the basis of Larkin’s leadership from that point forward, and listening is something he continues to do—to NGA members as well as staff.
Larkin doesn’t just manage, he leads
How do you judge the difference between management and leadership? To me, management is doing the remit of your job and succeeding within the parameters that enable you to meet your goals. Leadership, on the other hand, is anticipating the needs of your constituents, and constantly reimaging your business through the lens of the demands of your marketplace. Which means doing only what is expected of you isn’t enough. To provide greater John Ross, president value in an increasingly more demanding marketand CEO, IGA place, you have to be thinking ahead of what you need to be today to what you need to be tomorrow—and this is what Peter Larkin does. Technically, Peter and his team represent our industry and its needs in the complex and often frustrating world of politics. And we are so thankful they do because we as independent retailers could never manage it alone. But that’s only a small portion of what NGA does. Under Peter’s direction, they also bring skills, technologies, knowledge and partners together for the betterment of the independent segment. He has cast the net wider, expanding NGA’s services in a way that I suspect is much greater than the technical reading of the NGA charter so that independent grocers can grow and thrive. That’s the real definition of a leader, and that’s why all of us at IGA think Peter is great.
Laura Strange, VP of industry relations, communications and marketing: Regardless of where he is or how busy he is, Peter definitely operates with an open-door policy for everyone throughout the association. When I first arrived at NGA and learning about the industry, I had a so many questions and he would take the time to sit down and explain issues to me. But he goes beyond a simple explanation; it’s his passion for the industry that comes through.
Chris Jones, VP of government relations and counsel: Peter has a contagious enthusiasm and passion for the independent supermarket industry. He sets an organizational tone that inspires every team member to be the best version of themselves, and this approach has translated into an exceptional quality of service to our members. Peter has taught me that encouragement and inspiration is the most effective way to motivate a team.
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Greg Ferrara, EVP of advocacy, public relations and member services, NGA: Peter inspires the staff and our members, helps set goals, and then lets his people do their jobs without too much interference. That may not seem like a big deal, but one of the reasons NGA has been successful under Peter’s leadership is because he’s empowered our entire team to do what it takes to get the job done. He also knows how to laugh, and that is such an important quality.
What have you learned from him that you implement in your own role?
How to listen. Too often we want to talk, but taking time to listen, really listen, to what your members are saying is so important. He has also ensured that we get our members involved throughout the organization. It’s their association, and having our members’ input on committees, task forces, or participation in share groups, helps ensure that NGA will continue to be a member-driven association.
Cheryl Sommer, owner of Kaune’s Neighborhood Market in Santa Fe, New Mexico, and NGA Chairman for 2018-19:
What are Peter Larkin’s strengths as a leader?
As evidence of his own passion for the independent supermarket industry, I think one of Peter’s greatest strengths has been his ability to inspire others to engage and participate with NGA. It’s no coincidence that NGA experiences a retention rate that is well into the 90th percentile year after year. He’s also always in listening mode, soliciting feedback from the membership so that he can set a strategy, but he’s not afraid to change course if that’s what’s needed, and is able to build consensus on key issues to help pave the way forward.
Matt Ott, EVP and COO of NGA and executive director of the NGA Foundation: I think part of the reasons for our success under Peter’s leadership is that we always listen, and we are constantly evaluating what we are doing. I can’t tell you how many times we’ve thought of something and then went out and asked the retailers or wholesalers or associates, “hey, is this a good idea?” We ask for frank feedback, and when they’ve said no, we don’t do it.
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The NGA Foundation: Dedicated to Development “For over 35 years, the National Grocers Association has focused on companies—the retail, wholesale and associate organizations that make up the independent grocery industry,” says Matthew “Matt” Ott, EVP and COO of NGA and executive director of the NGA Foundation.
The NGA Foundation Programs
Executive Leadership Development Program (ELDP) Implementing organizational and cultural changes in order to execute new strategies are imperative skills for effective leaders. The NGA Executive Leadership Development Program is designed to develop and prepare leaders to face business challenges in the 21st century marketplace. The conference is a high-impact learning opportunity encompassing intense, interactive instruction presented by a mix of respected academic and industry leaders. This initiative has had decades-long support from PepsiCo Inc. Scholarships In 2018, the NGA Foundation has awarded 17 scholarships totaling up to $73,000 to students pursuing careers in the independent grocery industry. Since 1990, the Foundation and its affiliates have awarded over $1 million in scholarship, providing the critical resources needed to invest in our future leaders.
Matt Ott, executive director of the NGA Foundation.
Student Programs Working with our Food Industry University Coalition, the NGA Foundation hosts the Student Case Study Competition which provides student teams with the opportunity to creatively address a real-world issue currently impacting the industry. The competition is held annually at The NGA Show, where students also have the opportunity to meet with industry mentors and gain valuable career advice and industry exposure.
And that will never change, according to Ott. Where the NGA Foundation sees an opportunity to make the greatest impact is by focusing on the people working within the companies that comprise their membership. As the NGA executive team has traveled the country talking to Women Grocers of America (WGA) members, one thing has been apparent: There is a major talent The mission of the Women Grocers of America is to promote shortage and a stigma the recruitment, growth, surrounding the career development and empowprospects of working “The NGA Foundation strives to empower erment of women within within grocery stores. the independent grocery NGA Members to take their career to the next “It has been eye-openindustry. WGA specifically level with leadership and workforce developing,” Ott says. “We want serves as the Foundation’s to recruit new associates ment programs such as the Executive Leadership career development to the industry and show network for women by Development Program, webinars, online education, them the great career providing networking, and certificate programs, provide NGA members opportunity there is. Once recognition and education and the public with industry innovative information they sign on, we want to opportunities. focus on providing them they need to thrive, and give our future leaders with the skills they need to the tools they need to succeed through student Online Training & be successful.” Education Center programming.” The NGA Foundation The NGA Online Training will be focused on providand Education Center is ing people at every level a people development of the independent organization supported grocery industry—from by the IGA Coca-Cola their entrance into the Institute. As an educaindustry and throughtional organization, it out their career—with educational, training and advancement serves more than 40 companies with blended training programs opportunities. that include 100 industry-specific online courses divided into “We already have some great programs that benefit those who nine different libraries featuring topics such as food safety and have committed to the industry, and we are going to develop sanitation basics, emotional intelligence and meat wrapping even more to ensure that we have a robust, diverse and well(courses available in Spanish). trained workforce,” Ott adds. Retail Management Certificate Program The Retail Management Certificate is an accredited business program that gives associates the necessary skills to get started or advance their career in the retail grocery industry. The certificate is available to anyone and can be completed in as little as one year. Classes are offered online nationally and on campus at certain approved community colleges; new college partners are being added daily. The certificate program also is supported by the Food Marketing Institute and the Western Association of Food Chains.
Chad Villanueva, an NGA Foundation Scholarship winner.
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New Programs The future of the Foundation is strong and new programming is under development. Priority projects currently include a job board and grocery associate certificate program, along with additional programming that reflects the needs of NGA members and the changing landscape of the independent grocery industry.
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