california grocer, 2012, issue 5
DESCRIPTION
California Grocer, 2012, Issue 5TRANSCRIPT
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2012, ISSUE 5
For the latest industry news visit www.cagrocers.com
PRSRT STDUS Postage PaidPermit No. 1401Sacramento, CA
CALIFORNIA GROCERS ASSOCIATION
In This IssueBUILDING AN INNOVATIVE
ORGANIZATION
HELPING CUSTOMERS EAT HEALTHY
SUSTAINABILITY: THE
NEXT GENERATION
MILLENNIALS: WHO ARE THEY?
SHOPPING IN A NEW ECONOMIC AGE
Ph: 800-724-7762 | unifiedgrocers.com
Celebratin
g 90
ye
ars of Growing Independents •
1922 2012
Renaissance means change for the better. The modern retail grocery industry changes constantly and successful stores change with it. Independent grocery retailers use knowledge of their customers to adapt to their buying habits and Unified Grocers enables them to act quickly to change with the times.
Unified Grocers is a proud part ofCalifornia’s Retail Renaissance.
Perpetual Renaissance®
BeefRetail.org
Free Retail Beef ResourcesThe California Beef Council has a variety of FREE retail beef resources to help merchandise your beef case.
Beef Cuts Posters Beef Training Programs
Consumer Beef Brochures Beef Value Cuts Information
Brochure Holders Spanish-Language Beef Resources
Beef & Veal Photography Beef Retail Newsletter
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California Beef Council4640 Northgate Blvd., Suite 115
Sacramento, CA 95834916.925.BEEF (2333) Phone
916.925.8155 [email protected]
www.CalBeef.org
The California Beef Council’s newsletter provides retailers with new beef research information, beef story messaging, seasonal beef information and much more. To sign-up for the newsletter or to order FREE retail beef resources, contact:
www.CalBeef.org • www.BeefItsWhatsForDinner.comwww.BeefRetail.org • www.ExploreBeef.org
Scan the QR code with your smartphone for beef retail information and to download a retail resources order form.
®
BeefRetail.org
Free Retail Beef ResourcesThe California Beef Council has a variety of FREE retail beef resources to help merchandise your beef case.
Beef Cuts Posters Beef Training Programs
Consumer Beef Brochures Beef Value Cuts Information
Brochure Holders Spanish-Language Beef Resources
Beef & Veal Photography Beef Retail Newsletter
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®
®
® ®
®
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California Beef Council4640 Northgate Blvd., Suite 115
Sacramento, CA 95834916.925.BEEF (2333) Phone
916.925.8155 [email protected]
www.CalBeef.org
The California Beef Council’s newsletter provides retailers with new beef research information, beef story messaging, seasonal beef information and much more. To sign-up for the newsletter or to order FREE retail beef resources, contact:
www.CalBeef.org • www.BeefItsWhatsForDinner.comwww.BeefRetail.org • www.ExploreBeef.org
Scan the QR code with your smartphone for beef retail information and to download a retail resources order form.
A ready supply of shopping carts are an absolute necessity in operating a successful
grocery/retail enterprise. Shopping carts are at risk from the public at large and from
local and state authorities, as well. As the pre-eminent cart recovery service in California,
Nevada and Oregon, CSCRC is extremely well positioned to deal with both threats.
Customers will �nd CSCRC easily accessible | We are open daily from 7:00 a.m. to 6:00 p.m.
For more information and to join the program today, call (818) 563-3070.
To report a cart location, call toll free (800) 252-4613 24 hours a day, 7 days a week.
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Keep it fun. Play responsibly. Must be 18 or older to play. Problem Gambling Help Line: 1-800-GAMBLER. ©2012 California Lottery® 09/12
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You can always depend on our games to earn you 6% on every $1 sold and bring in a steady stream of loyal players.
The Lottery is ready to bring that winning feeling to your customers — and your bottom line.
CGA & California Lottery® — A Winning Partnership
C G A | Board of Directors
EXECUTIVE COMMITTEE
CHAIRMAN APPOINTMENTS
DIRECTORS
SUPPLIER EXECUTIVE
COUNCIL
Rick Van Nieuwburg Altria Corp. Services
Raul Aguilar Anheuser-Busch InBev
Mike Myers Berkeley Farms, Inc.
Rickey Hamacher Bimbo Bakeries USA
Tom Driscoll Bunzl Distribution, Inc.
Gilbert de Cardenas, Bob Cashen Cacique USA
Victoria Horton California Beer & Beverage Distributors
Cindy PlummerCalifornia Table Grape Commission
Mark Cassanego Carr, McClellan, Ingersoll, Thompson & Horn
Damon Franzia Classic Wines of California
Robert Phillips, Dora Wong Coca-Cola Refreshments
Vic Chiono Coca-Cola North America – Minute Maid Business Unit
Stephenie Shah Diageo
David Cucuk ER Jones Management, Inc.
Veronica Rendon Fresh Dairy Direct of So. Cal.
Scott Johnson, Shannon Nadasdy Financial Supermarkets, Inc.
Brian Rosen, Ann Wilson Gleason Inc.
John Hewitt Grocery Manufacturers Association
Derek Brewart, Cris Nunez Hamilton Brewart Insurance Agency
Mickie Sharp-Villanueva Hansen Beverage Company
Elizabeth Alvarez-Sell, Brennan Bateman, Thomas Joyce The Hershey Company
Tim Cohen Hidden Villa Ranch
Kristina Crystal-McVay The J.M. Smucker Co.
Dave Jones Kellogg Company
Jamie Gray LOC Software
Dave Madden MillerCoors
Steven Schultz Moss Adams LLP
Paul Cooke, Karen Doggendorf Nestle Purina PetCare
Jim Van Gorkom NuCal Foods
Vince Delgado Procter & Gamble
Melanie Zitting, Sue Sharp Pure Water Technologies
Renee Wasserman Rogers Joseph O’Donnell
Darrell Costello Roplast Industries Inc.
Perry Sanders Sara Lee Fresh Bakery, California
Greg Romero Stericycle ExpertSOLUTIONS
Tom H. Daniel Sterilox Food Safety
Phyllis Adkins TruGrocer Federal Credit Union
Vinit Patel Unilever
Dave JonesKellogg Company
Michael ReadWinCo Foods, Inc.
Dora WongCoca-Cola Refreshments
Chairman of the Board Jonathan Mayes Safeway Inc.
First Vice Chair Kevin Davis Bristol Farms
Second Vice Chair John Quinn Food 4 Less (Stockton) – Times Supermarkets
Treasurer Mary Kasper Fresh & Easy Neighborhood Market Inc.
Secretary Kevin Konkel Raley’s
Immediate Past Chair Jim Amen Super A Foods, Inc.
Raul Aguilar Anheuser-Busch InBev
Paul Cooke Nestle Purina PetCare
Richard Draeger Draeger’s Supermarkets, Inc.
John Eagan Costco Wholesale
Chuck Eckman, II Kraft Foods Inc.
Joe Falvey Unified Grocers, Inc.
Phil Gentile K.V. Mart Co.
Jon Giannini Nutricion Fundamental, Inc. Warehouse
Diana Godfrey Smart & Final Stores
Rickey Hamacher Bimbo Bakeries USA
Frank Jimenez The Hershey Company
Bill Jordan Whole Foods Market
John Kok Procter & Gamble
Dave Madden MillerCoors
Dan Meyer Stater Bros. Markets
Omar Milbis Rio Ranch Markets
Phil Miller C&S Wholesale Grocers
John Parke E & J Gallo Winery
Vinit Patel Unilever
John Pellington Focus Brands West/ Niche Foods
Brian Schmidt Acosta Sales & Marketing
Jim Schulz International Paper
Harish Solanki Big Saver Foods, Inc.
Mike Stamper Nestle DSD
Dirk Stump Stump’s Markets
Sam Tibbitts Holiday/Sav-Mor Foods
Paul Turcotte Pepsi Beverages Company – WBU
Donna Tyndall Gelson’s Markets
Jim Wallace Albertsons/Sav-On Pharmacy
Tammy Wilson Jax Markets
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FEATURESBuilding an Innovative OrganizationAccording to Terry Jones, innovation is not creativity. Creativity is thinking new things. Innovation is doing them. He should know. As founder of Travelocity.com and now chairman of kayak.com, Jones knows a lot about innovation and will share his insights at this year’s CGA Strategic Conference.
Healthy Foods Good for RetailCelebrity chef Ellie Krieger and Janet Myers, senior director, retail culinary experience for Kraft Foods share their insight on how retailers can help consumers desire simple and healthy eating and in turn make healthy foods profitable.
Millennials: Who They Are & How They ShopMillennials are going to redefine retailing. They are not fans of tradeoffs and are accustomed to having their cake and eating it too. So says the founder of 9dotz.com, a San Francisco-based firm specializing in generational advertising and marketing.
Connecting With Shoppers In a New Economic AgeIt’s not so much about how the economy is affecting consumer spending as it is how it affects the ways consumers get ready to spend, according to Larry Levin, executive general manager, consumer insights for SymphonyIRI.
Sustainability: The Next GenerationAre sustainability and environmental issues taking a back seat as consumers focus on jobs and the economy? No says the founder of a consultancy firm focused on environ-mental planning, policy and development.
C O N T E N T S | Issue 5
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CALIFORNIA GROCERS ASSOCIATION
COLUMNSPresident’s Message Proposition 37 – The Right To Sue! ................. 7
From the Chair CGA Membership – Capture the Enthusiasm...... 9
Foundation News – Shiloh London Investing Today in Tomorrow’s Work Force ............ 11
Viewpoint – Kevin Coupe Go West, Middle Aged Man ...................... 12
Capitol Insider The Business of Lobbying ............................ 27
Perspective – Chris Micheli 2012 California Workers’ Compensation Reform Package Enacted ............................ 31
DEPARTMENTSSunset Fresh Market News ...................... 14
CGA News ........................................... 18
Government Relations ............................... 20
Q&A: Herb J. Wesson Jr. .......................... 34
Washington Report .................................. 36
Know the Law ........................................ 84
Wealth Management ................................ 86
Advertiser Index ..................................... 88
President/CEO Ronald Fong
Vice President, Communications Dave Heylen
Vice President, Government Relations Keri Askew Bailey
Vice President, Business Development & Marketing Doug Scholz
Executive Director, CGA Educational FoundationShiloh London
Director, Events & Sponsorship Beth Wright
Director, CGA Educational Foundation Brianne Page
Director, Local Government Relations Sarah Paulson Sheehy
California Grocer is the official publication of the California Grocers Association.
1215 K Street, Suite 700 Sacramento, CA 95814 (916) 448-3545 (916) 448-2793 Fax www.cagrocers.comFor association members, subscription is included in membership dues. Subscription rate for non-members is $100 and does not include CGA Buyers’ Guide.© 2012 California Grocers Association
Publisher Ronald Fong E-mail: [email protected]
Editor Dave Heylen E-mail: [email protected]
For advertising information contact: Tony Ortega E-mail: [email protected]
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DRINK IT TO BELIEVE IT.®
REAL COLATASTE60% LESS SUGAR.◆
PEPSI-COLA, PEPSI NEXT, the Pepsi Globe and DRINK IT TO BELIEVE IT are registered trademarks of PepsiCo, Inc. YCL157872
than Pepsi-Cola® ◆
8.5"W x 11"H
8.25"W x 10.75"H
8.75"W x 11.25"H GRACoL_7-4
100%
100%
CW
CGA Next Program Ad
Sweet Sans, Myriad Pro
YCL157872
WBU Program Ad
9/5/2012
YCL157872_mch_pad_cganext.ai
ALL ARTWORK IS HIRES UNLESS OTHERWISE NOTED. DIE LINE DOES NOT PRINT. DOTTED LINE FOLDS AND DOES NOT PRINT.
COLORS*: 4-C Process
PEPSI-COLA, PEPSI NEXT, the Pepsi Globe and DRINK IT TO BELIEVE IT are registered trademarks of PepsiCo, Inc. YCL157872
Proposition 37 – The Right To Sue!
President’s Message | R O N A L D F O N G
President/CEO
With the Legislature packed up and home for the election season, CGA has largely turned its attention to Proposition 37 – an initiative that will appear on the November General election ballot here in California.
Most of our readers are well aware of the
challenges this deceptive “right to know” initiative
will present for the entire food industry and
ultimately consumers. In reality, Prop 37 should
be called the right to sue!
Proposition 37 is not a simple labeling measure
as proponents claim. It contains provisions that
will result in shakedown lawsuits, it exempts huge
categories of foods and will increase bureaucracy,
red tape and taxpayer costs, all without providing
any health and safety benefits.
The initiative requires documentation that proves
that unlabeled products are free of genetically
engineered ingredients. Grocers, suppliers and
farmers will have to track and keep records for
tens of thousands of food products. Certainly a
logistical nightmare! The proposition specifically
states that lawyers don’t need any proof of
damages in order to file a lawsuit. It will subject
our industry to enormous litigation costs,
regardless of the outcome.
I recently testified at a joint Legislative
informational hearing on the proposal. Legislative
Committees are required to conduct a public
hearing to vet the pros and cons of any ballot
initiative under their jurisdiction. On September
13, it was the Senate and Assembly Agriculture
Committees’ turn to vet Prop. 37.
And although the hearing was not intended to sway
opinion or reach voters with any message, it was
important that our side of the story be told.
With the non-partisan Legislative Analyst’s Office
noting that 88 percent of corn and 94 percent
of soybeans would be considered genetically
engineered while 40-70 percent of the processed
foods on grocery shelves contain one or more GE
ingredient(s) it is hard to imagine any issue of
greater importance facing our industry in November.
The retail food industry has a long history of
putting consumers first. We are leaders in food
safety, sustainable practices, and ensuring
that families are able to fill their cupboards
and coolers with the food they want and need.
Although we generally support being responsive
to consumer requests for information about their
food, at times the method to reach objectives is
simply unacceptable.
Prop. 37 is one of those times. n
DRINK IT TO BELIEVE IT.®
REAL COLATASTE60% LESS SUGAR.◆
PEPSI-COLA, PEPSI NEXT, the Pepsi Globe and DRINK IT TO BELIEVE IT are registered trademarks of PepsiCo, Inc. YCL157872
than Pepsi-Cola® ◆
8.5"W x 11"H
8.25"W x 10.75"H
8.75"W x 11.25"H GRACoL_7-4
100%
100%
CW
CGA Next Program Ad
Sweet Sans, Myriad Pro
YCL157872
WBU Program Ad
9/5/2012
YCL157872_mch_pad_cganext.ai
ALL ARTWORK IS HIRES UNLESS OTHERWISE NOTED. DIE LINE DOES NOT PRINT. DOTTED LINE FOLDS AND DOES NOT PRINT.
COLORS*: 4-C Process
PEPSI-COLA, PEPSI NEXT, the Pepsi Globe and DRINK IT TO BELIEVE IT are registered trademarks of PepsiCo, Inc. YCL157872
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Early Detection Saves LivesP&G will donate 2¢ for every 9/30 brandSAVER coupon and 1¢ for
every 10/14 brandSAVER coupon redeemed to National Breast Cancer Foundation to help with early detection.
CGA Membership – Capture the Enthusiasm
From The Chair | J O N AT H A N M Ay E S
Senior Vice President, Government Relations, Public Affairs Corporate Social
Responsibility & Community Relations
Ralph Waldo Emerson once wrote, “Nothing great was ever achieved without enthusiasm.”
One of many blessings this year, as CGA chair,
is the opportunity to become acquainted with
many of you, and to observe first hand the
contagious enthusiasm for your work and our
trade association.
I’ve also deepened my understanding about CGA
and the many benefits of membership, and I’d like
to share some highlights.
First, CGA’s mission is to “serve, represent and
educate its members on both state and local
levels.” By passionately pursuing this mission,
CGA enables members to focus on what we do
best – running our operations.
CGA membership is highly diverse, with hundreds
of independently-owned neighborhood and
convenience stores to large supermarket chains,
national suppliers and wholesalers.
CGA has an active and effective government
relations team. This year, the California state
legislature proposed more than 4,000 bills with
many impacting our industry in some way.
Issues range from employment and environmental
laws, food processing, transportation, workers
compensation, paper and plastic bags, and
many others.
CGA also has a strong local government relations
program, which tackles issues that often lead to
statewide legislation.
The Association provides timely information to
keep members well-informed about important
aspects of the California grocery industry. That
occurs through this award-winning bi-monthly
magazine, CGA’s weekly e-newsletter, product
recall alerts, blogs, and other ways.
CGA members have access to the CGA Educational
Foundation’s College Scholarship and Career
Development Tuition Reimbursement programs that
provide employees and their families with tuition
assistance and help with other education expenses.
CGA provides an important forum for members
to participate on a broad spectrum of industry
committees, such as Government Relations,
Human Resources, Legal Advisory, WIC/EBT, Loss
Prevention, and others.
Finally, CGA’s Strategic Conference is full of
insightful education sessions with a focus on
trends, issues and solutions that impact our
industry. It also provides an enjoyable setting for
networking opportunities and business meetings.
If you’re already a CGA member, thank you!
If you know of others who would benefit from
membership, please let CGA know. n
(l to r) Donna Tyndall, Gelson’s Markets; CGA Chair Jonathan Mayes, Safeway Inc., and Kevin Davis, Bristol Farms during a legislative visit at this year’s Grocers Day at the Capitol.
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2012 Hall of AchievementDinner & Reception
California Grocers Association Educational Foundation
For more information, including online registration, visit www.cgaef.org, or call Brianne Page at (916) 448-3545.
Proceeds from this event benefit the college scholarshipand career development tuition reimbursement programs.
Thursday, October 18, 2012San Ramon Marriott, San Ramon, CA
Dave JonesVP, Industry InitiativesThe Kellogg Company
Bruce EveretteExecutive VP, Retail Operations
Safeway Inc.
Investing Today in Tomorrow’s Work Force
Shiloh London, Executive Director, CGA Educational Foundation
For the first time, there is now more student debt than credit card debt in America — to the tune of $1 trillion in student loans. A staggering figure.
Despite increases in total dollars raised at four-
year institutions across the U.S. in 2011, the future
doesn’t look good for those wanting to continue
their education. As tuition costs rise and donor
pools shrink, students are going to get squeezed
out of scholarship opportunities and take on more
debt as a result, or simply opt not to attend college.
Back in 1991, facing a period of economic
turmoil, the CGA Educational Foundation’s
founding trustees knew that an investment in
education would be the catalyst for retaining
the skilled individuals that would make the
grocery industry even stronger in the future.
Little did they know some 20 years later
our country would be weathering a similar
economic storm.
With more college students looking for financial
support, it comes as no surprise this year that
the Foundation awarded a record $341,250 in
college scholarships to 258 deserving students –
a $60,000 increase over a year ago. In two
decades, almost $3 million has been awarded.
The Foundation has also witnessed a record 73
percent increase in the Foundation’s
tuition reimbursement
program this year and fall
semester has yet to come to
a close. The Foundation is anticipating
reimbursements to be well over
$100,000 for 2012.
Bellevue University’s
Human Capital Lab
recently released a
report validating
the return on
investment for a company-supported tuition
assistance program. The report, “Employer
Value from Investing in Workforce Education,”
details how tuition assistance can not only
attract new employees, but also enhance
performance ratings, job mobility and employee
retention rates.
Interestingly, the study also suggests that
contrary to the widely held “learn-and-leave”
notion among executives, employees that were
offered tuition reimbursement experienced above-
average tenure, retention, and job movements
during the study period.
Future generations of young people can’t hope
to thrive when they begin their careers with
massive student loan debt. As the necessity
of bachelors and advanced degrees for
many jobs continues to grow, our ability to
build scholarship and tuition reimbursement
programs for college students becomes even
more important.
Many CGA members, both retailers and vendors
alike, have taken advantage of the Foundation’s
scholarship and tuition reimburse-
ment programs. If your
company isn’t utilizing the
Foundation’s educational
programs, I encourage your
human resources department
to visit the
Foundation’s new
website,
www.cgaef.org,
today, or call
(916) 448-3545. n
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I got lucky. This past July, I had a life-changing
experience and none of the above was involved.
And, I even got some business lessons out of it.
Let me explain...
I was hired by Professor Tom Gillpatrick of
Portland State University to team-teach a class
with him on CPG/retail marketing. This was
something I’ve always wanted to do; I have no
desire to
become a full-
time teacher,
and it probably
is a little late in
life to go back
and get both
the masters
and doctorate
that I’d need
to become a
tenure-track
college teacher,
but I’ve enjoyed the times I’ve gotten to guest
lecture and thought this would
be an interesting experience.
Now, this wasn’t an easy thing to do from a
logistical point of view. I live in Connecticut,
except for three years attending Loyola
Marymount University, I’ve always lived within 30
miles or so of New York City. (Not that I wanted
to, but as John Lennon said, “Life is what happens
when you are making other plans.”) But this
required moving 2,500 miles for an entire month,
to a city I’d only visited for a day or two at a time,
to do a job for which I had marginal experience.
Well, let me tell you... it was one of the best
decisions I’ve ever made. Even though I travel a
lot (my wife likes to say that while we’ve been
married for 29+ years, I’ve really only been around
for about 20 of them), the reality is that when
one has been in the same place for too long, you
cannot help but get caught in a rut.
Doing something completely different, in an
entirely different place, is good for the soul, good
for the spirit and good for the intellect. Whether
it means having to find a place to get coffee in
an unfamiliar neighborhood, locating a local dry
cleaner, or figuring out where to go shopping for
food, even the little challenges make you look at
the world differently.
In terms of food shopping, I tried a lot of different
options — a local Safeway, a New Seasons
Market (which is sort of a street-savvier Whole
Foods), Zupan’s (an upscale fresh foods-driven
independent), as well as some local shops,
and price-driven formats like WinCo Foods and
Grocery Outlet. Seeing these stores through a
shopper’s eyes, as opposed to a writer’s eyes,
made me see them and evaluate them differently.
(I found things I liked at each of them, and if I
lived there permanently, I’d probably find a way
to spread my buying dollar around.)
As for the teaching... well, I have to tell you that
it was a blast, mostly because the students were
so extraordinarily thoughtful.
The first thing I asked each of the students to do
was to write a short essay on the subject of their
most memorable meal. I have a bias that too many
people in the food business think only in terms
of category management, sales lift and profit
margins, and don’t think enough about food. So I
wanted the students, to use a familiar phrase, to
think different.
I was blown away by the essays. They ranged
from meals eaten in a four-star restaurant in
Beirut to quieter, more intimate dinners shared
Viewpoint | K E V I N C O U P E
At my age, 57, life-changing experiences don’t come around all that often. When they do, they often involve a blonde, a motorcycle, a tattoo, body piercings, alcohol, sex, drugs and divorce. Or, the prostate.
Go West, Middle-Aged Man
As for the teaching... well, I have to tell you that it was a blast, mostly because the students were so extraordinarily thoughtful.
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Viewpoint | K E V I N C O U P E
at home with family and friends. In each case,
the passion was clear.
One of my favorites was written by a man who
said that his most memorable meal consisted
in part of rice and A-1 steak sauce consumed on
Christmas Day; he was serving in Afghanistan,
had just returned from patrol, and, he said, it was
memorable because he was with his brothers,
all of whom he would have died for, and each of
whom would have died for him. Puts things in
perspective, doesn’t it?
I think that one of the
reasons that they did
so well on these essays
is that they were being
challenged to use a
different side of their
brains. And they seemed
absolutely primed to
do so — there was not a
slacker in the bunch, and
when you spend time with
people who are hungry for
knowledge and ready to
soak up anything you offer
them, it is infectious.
In fact, if you ever get the
chance to spend anytime
in a college classroom
sharing your knowledge
and experiences, I urge
you to do it. It has never
been less than wonderful for me, and July at
Portland State was like wonderful on steroids.
One friend of mine, a senior retailing executive,
got a dose of that when he came into the class to
chat one evening. Afterwards, one of the students
hung around... and promptly asked if he could
go with the guy on store visits the next day. The
executive didn’t blink – he jumped at the request
and I’m told that they both learned something
that morning.
One final business lesson from my trip, if I may...
One of the many pleasures that I discovered in
Portland was a place called Stumptown Coffee
Roasters, a local treasure where the coffee is terrific,
the ambience is authentic downtown Portland, and
the people-watching can be rewarding.
One morning I ordered a large nonfat latte,
grabbed a seat at the counter, pulled out my
iPad and started going through email. I kept one
eye on the barista and noticed when he seemed
to start making what was going to be my latte.
A couple of emails later, I realized that I hadn’t
gotten my drink so I took another look... and he
seemed to be starting the process all over again.
I didn’t think too much of it, and went back to my
emails.... but noticed this time when he got almost
done, took a look, dumped it out and started over
yet again, this time calling over
someone to help him.
The third time was the charm,
and when he handed me the latte,
I couldn’t help myself. So I asked
him: “I’m just curious. What was
wrong with the first two?”
The fellow who helped him,
who I later learned was named
Bo, came over and said that, in
fact, a large nonfat latte was
one of the hardest drinks to
make – skim milk doesn’t hold
together the way whole milk or
even one percent or two percent
milk does, and so if they get to
the end and they’re ready to put
a design into the foam and it
isn’t holding together right, they
dump it and start over.
Now, I was fascinated by this.
I’ve been drinking large nonfat lattes for more
than a decade now, and nobody ever told me
before that it was a hard drink to make. And then
I asked him: If I’d been getting this to go, and you
were putting a top on the cup, would you have
gone to all this trouble to make sure the squiggle
was right?
Bo grinned. “It’s not worth doing if we can’t do it
right,” he said.
Boy, was that exactly the right answer. It is just
that kind of dedication to excellence that every
retailer should be seeking in its employees.
Because the thing is, sometimes we can see the
stuff that matters, and sometimes we can’t. But
it all matters. Even the little stuff. n
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When it comes to recipes, the food editors at
Sunset like to shake it up a bit.
“We’re constantly twisting the familiar, like jazzing
up Thanksgiving mashed potatoes with a spicy
butter,” says test kitchen manager and recipe
developer Stephanie Spencer.
This new-twist approach helps readers learn
and think about ingredients in unexpected and
innovative ways, whether they’re using familiar
staples, like mashed potatoes, or more unusual
foods, like lemongrass.
That’s why, earlier this year, she was in the Sunset
kitchen pondering hazelnuts.
Spencer thought these flavorful nuggets would
be a great ingredient to showcase in unexpected
ways. “I wanted readers to think of hazelnuts
beyond putting them in a bowl with a nutcracker
or tossing them in a salad,” she said. With
Oregon hazelnuts coming into markets in
November, she aimed to come up with “comforting
desserts” for the October issue, a good start to
the holiday season.
So, Spencer got cooking – grinding hazelnuts
to make a chocolate-hazelnut spread and a rich
crust for a tart, and crumbling the nuts into a
gooey-delicious maple cookie.
Sunset isn’t the only one that likes to twist it up
a bit with familiar ingredients like nuts.
“We are always brainstorming quick, easy ways
to add walnuts to meals that are not necessarily
top of mind,” says Jennifer Olmstead, domestic
marketing director for the California Walnut Board
& California Walnut Commission, which represents
99 percent of U.S.-produced walnuts.
According to Olmstead, the organization turns
to chefs and food experts for “delicious seasonal
recipes with walnuts.” It also aims to spread
the word in innovative ways. Consumers can
now go online to access the new Chef Menus at
Home program.
“Well-known chefs develop dishes with walnuts
that are great for entertaining but easy enough
for the home cook to prepare,” says Olmstead,
noting that each menu features a short video to
demonstrate a new cooking technique.
Inspire, educate, innovate. Not a bad mantra for
reaching today’s ultra-busy consumers. n
— Harriot Manley
Inspire, Educate, InnovateSEE HOW SMART RECIPES HELP GRAB
TODAy’S BuSy CONSuMERS.
Myrecipes.com
Recipes from Sunset and other Time Inc.
publications
Walnuts.org
Recipes from California Walnut Board
Recipe Finder
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Ph: 800-724-7762 | unifiedgrocers.com
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orpo
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New MembersCGA WOuLD L IKE TO RECOGNIZE ITS NEW MEMBERS OF 2012!
People Water922 S State Rd
Pleasant Grove, UT 84062-3742
Phone: (855) 377-4377
Contact: Caden Rutter
www.peoplewater.com
Shelter Cove General Store, Inc.7272 Shelter Cove Rd
Whitethorn, CA 95589-8959
Phone: (707) 986-7233
Fax: (707) 986-7739 fax
Contact: Thomas Machi
www.sheltercovegeneralstore.com
Early On, Inc1192 Vanderbilt Cir
Manteca, CA 95337-6121
Phone: (877) 528-2229
Fax: (209) 825-5414
Contact: Dave Douglas
www.earlyon.com
Flowers Baking of California10625 Poplar Ave
Fontana, CA 92337-7335
Phone: (909) 350-3328
Contact: Thomas Wilson
www.flowersfoods.com
McNairn Packaging, Inc. 6 Elise St
Westfield, MA 01085-1414
Phone: (413) 568-1989
Fax: (413) 562-1903
Contact: Karl Unger
www.mcnairnpackaging.com
Colonial Life41960 Avenida De Anita
Temecula, CA 92592
Phone: (760) 285-1144
Fax: (951) 308-2421
Contact: Steven Russell
CG
A N
EWS
Recent members that became a part of CGA:
Corrigo IncorporatedDurham BrandsTropicale Foods, Inc.Amoretti CompanyBeef Information CenterCalifornia Table Grape Commission (SEC)CAM ServicesCardenas Markets, Inc.Central Valley Ag ExportDay-Lee Foods, Inc.Del Real Foods
Don Pedro’s Kitchen (SEC)EnformedER Jones Management Inc.Fresco FoodsFrutStixGongco Foods/Food 4 LessHamilton Brewart Insurance AgencyItasca RetailJensen’s Finest FoodsJerry’s Bags & LabelsKarl Strauss Brewing
Kayem FoodsLOC Software (SEC)LYFE Kitchen Retail LLCMartin Container, Inc.MOM BrandsMoss Adams LLP (SEC)Nor Cal Beverage Co., Inc/ Go Girl Energy DrinkNugget MarketsOfficeMax Inc.Prime Plastic Products, Inc.
Prudential Overall SupplyPure Swiss Inc.Pure Water Technologies (SEC)rePLANET, LLCSheppard, Mullin, Richter & HamptonSmartSweepStericycle ExpertSOLUTIONSSunflower Farmers MarketTampico Spice CompanyThe Clorox CompanyTruGrocer Federal Credit Union
Gizmo Beverages900 S Main St - Penthouse
Los Angeles, CA 90015
Phone: (281) 300-1009
Contact: Brad Foster
www.teaofakind.com
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®, ™, © 2012 Kellogg NA Co.
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It starts with an eye-opening lineup of some of America’s
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Learn more about the connection between breakfast, nutrition and health. Go to centerstoregrowth.com/goodmornings
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BEVERAGE CONTAINER RECyCLING PROGRAM
TO TAKE CENTER STAGE
Less than a year after a government
reorganization transferred responsibility of the
Beverage Container Recycling Program (the
Program) to the newly created Department of
Resources, Recycling & Recovery, the new agency
plans a top-to-bottom review of the Program.
And at this point, everything is on the table for
potential reform of the law, which is more than
two decades old.
In many ways, the Program has become a victim
of its own success. Designed to remain solvent
only until container recycling rates reach roughly
65 percent, Californians are now recycling well
more than 80 percent of covered containers.
The high recycling rates coupled with significant
borrowing from the Beverage Container Recycling
Fund (the Fund) in recent years has left the
Program on the brink of collapse. All Program
participants are facing significant challenges,
including manufacturers, recyclers and retailers.
Historically, reforms have been cobbled together
in the final weeks of the Legislative session – a
process that often forced stakeholders to accept
unwanted “reforms” to stave off even more dire
consequences. The current plan calls for no fewer
than a dozen public hearings over three months
to examine every aspect of the Program. It is
the first such comprehensive review since the
Program’s creation.
STATE FINALLy ISSuES “GREEN CHEMISTRy”
REGuLATIONS
After nearly three years of informal work,
the Department of Toxic Substances Control
(DTSC) has released its first formal proposal for
regulations implementing California’s ambitious
“Green Chemistry” law.
In 2008, Assembly Bill 1879 (Chapter 559, Feuer)
and Senate Bill 509 (Chapter 560, Simitian)
were signed into law by then-Gov. Arnold
Schwarzenegger to create an online database
providing data on chemical, toxicity and hazard
traits to the market place and public and to
create a systematic, science–based process to
evaluate chemicals of concern and identify safer
alternatives to ensure product safety. The effort
was intended to be a more palatable alternative to
the politicized process of Legislative regulation
of individual chemicals.
Unfortunately, the 78-page initial draft leaves
much to be desired and some question whether
this approach is actually going to prove workable
for manufacturers and retailers. Initially, the DTSC
would weigh literally thousands of chemicals
to determine which to prioritize and then begin
work to pare down the thousands of products
containing one or more of those identified
chemicals to create a list of products that must
be evaluated. Proposed regulatory actions, based
on what could be year-long analyses of products,
include outright bans, sales and marketing
restrictions, or mandated consumer education.
Comments on the proposal are due in November,
and it is expected final regulations will be
promulgated by early 2013.
WIC REFORM BILLS SuRVIVE
LEGISLATIVE SCRuTINy
Two separate bills seeking to make reforms to
governance of the California Women, Infants &
Children (WIC) supplemental nutrition program
have reached the Governor’s desk. Each deals
with specific issues that have come to light since
California instituted an indefinite moratorium
on vendor applications in April of 2011. The
ongoing moratorium, and the U.S. Department
of Agriculture’s unwillingness to budge on the
issue, has created significant competitive issues
for California grocers and in many cases reduced
access for WIC clients.
AB 2280 (Lara)
This measure seeks to clarify existing law with
regard notice for vendors accused of a violation.
Specifically, AB 2280 reiterates an obligation to
provide a vendor with at least 30-days’ notice of
an alleged violation prior to re-inspection. While
current Federal regulations require states to
inform vendors of alleged program violations prior
to re-inspecting, in many cases California has not
been doing so.
The practical effect is vendors become subject
to program suspension without ever having an
opportunity to provide additional staff training
or identify where problems exist within their own
operations. While CGA and its member companies
Continued on p.21
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©2011 The Coca-Cola Company. “Coca-Cola,” “open happiness” and the Contour Bottle are registeredtrademarks of The Coca-Cola Company.
Congratulations Kevin Davis of Bristol Farms,as the incoming Chairman of The California Grocers Association. A big thankyou to Jonathan Mayes for all his hard work and dedication over the past year.
Government | R E L AT I O N S
fully support efforts to identify and eliminate
fraud that may exist in the WIC program, it makes
little sense to engage in a game of “gotcha” with
responsible vendors particularly in light of the
ongoing application moratorium.
AB 2280 has the support of the vendor community
including CGA, the California Chamber of
Commerce and the California Retailers Association.
AB 2322 (Gatto)
This measure seeks to require more information
from California WIC when instituting or extending
any future moratoria and to establish a process
to quickly adopt changes necessary to obtain
USDA authorization to lift the current moratorium.
Specifically, AB 2322 requires the Department to
outline the reasons it is calling a moratorium along
with a specific action plan to address the root
causes. In addition, the bill requires at least 30-days’
notice prior to instituting or extending a moratorium.
Finally, the bill authorizes an expedited regulatory
process when the Department adopts regulations
regarding the authorized food list, reimbursement
rates, peer groups, and vendor qualification.
It is expected that California will receive a set of
requirements and recommendations from the USDA
in the last quarter of 2012 that must be implemented
prior to the current moratorium being lifted. AB 2322
sets up an expedited process to make necessary
changes, while preserving public notice and comment
requirements of the Administrative Procedures Act.
The process is currently used widely in other social
service programs that involve joint Federal-State
administration and authority.
AB 2322 has the support of the vendor community,
including CGA, the California Chamber of Commerce,
the California Retailers Association, and the
California Farm Bureau Federation, along with
the Western Center on Law and Poverty and the
California WIC Association.
CGA ENGAGES EFFORTS TO REFORM ADA
One of the other major reform bills passed at the
end of the Legislative Session was Senate Bill
1186. CGA was an active member of the working
group to develop changes to the manner in which
California lawsuits are handled involving the
Americans with Disabilities Act (ADA).
The measure is intended to curb abusive
lawsuits, while promoting increased compliance
with disabled accessibility building codes
throughout California.
After months of negotiations, those changes
were added to SB 1186 (Steinberg and Dutton).
The major provisions of this important reform
legislation are:
1. Reduced statutory damages and
litigation protections for defendants
who correct violations
2. New provisions to prevent “stacking” of
multiple claims for the same violation to
simply increase statutory damages
3. Ban on demands for money and new rules
for demand letters
4. New pleading with specificity requirement
for demand letters and complaints
5. State Bar review of demand letters;
violations of the demand letter and demand
for money provisions would be grounds for
attorney discipline
6. Mandatory evaluation conference at the
option of either defendant or plaintiff
7. Mandatory notice to property tenant
of CASp status of the property
8. California Commission on Disability Access
to receive copies of complaints and demand
letters, and tabulate data on the top ten
types of alleged violations
9. CCDA to promote and facilitate
accessibility compliance
10. Required information regarding disability
access compliance to businesses upon
renewal of business license
11. New add-on fee of $1 to business licenses
to strengthen CASp program and develop
educational and training resources at the State
and local levels to promote compliance
California has 40 percent of the nation’s ADA
lawsuits, but only 12 percent of the country’s
disabled population. Unfortunately, a small
number of enterprising attorneys have utilized the
laws to garner financial settlements that do not
often result in increased ADA compliance. n
Continued from “Government Relations”
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Craft Every Moment.
BM_8-5x11_105370jc.indd 1 9/12/11 1:43 PM
To “Like” our Facebook page, log-on to Facebookand search “California Grocers Association”
California Grocers Association has a new Facebook page we hope you “Like”!
When you “Like” CGA’s Facebook page you’ll stay on top of the latest news and events in California’s robust grocery industry. News, trends, updates, and more are in-store when you join CGA’s Facebook community.
For more information, or questions, contactDave Heylen, CGA, at (916) 448-3545.
We hope you“Like” us!
quality · services · solutionsDELIVERING
TONYS FINE FOODS.COM
Capitol | I N S I D E R
The business of lobbying the California State
Legislature is always challenging and interesting
because of its complexity and the multitude
of issues that come into play on a daily basis.
However, during the last two weeks of the
Legislative Session everything is intensified by
an order of magnitude.
While every day is different, I thought a snapshot
in the life of a lobbyist during the last two weeks
of session might provide some insight into the
business of influencing the governmental process.
Here is a synopsis of the last two weeks of session:
Monday, August 20 This is the first day of the last two weeks. Only
Floor Sessions are scheduled. Committee hearings
can only occur with a rule waiver and during the
last two weeks rule waivers become common
place. Members will be flying in from their district
so Session is not scheduled to begin until early
afternoon. Once gaveled in, they will only “work”
for a couple hours passing legislation with
support on both sides of the aisle. The calendar
includes meetings on legislation dealing with
plastic bags and recycling. Neither bill is in print
with the language we will be discussing but at
this time of the year such things don’t matter.
Tuesday, August 21Session convenes at 10 am. Both houses are
expected to be in until late afternoon followed
by a late night of fundraisers. The workload is
light because many of the bills passed by the
Appropriations Committees the prior week have
yet to be amended. As those bills begin to see the
light of day, AB 2670 (Chesbro) has been amended
to include a new requirement on grocery stores to
separate all food waste and contract with carriers
to compost this waste rather than diverting it to
landfills. We quickly help coordinate a coalition
to oppose this bill. The other bill, the one dealing
with handling fees, AB 1933, is now in print. We
continue to meet with legislators in order to
ascertain the necessary support to move these
late amendments through the process.
Wednesday, August 22The list of bills amended now exceeds 40 pages.
We spend a good portion of the day reviewing
these amendments searching for language that
might impact the grocery industry. Session
convenes at 10:00 am and lasts until 5:00 pm.
Thursday, August 23The Legislature has worked four days in a row and
passed a respectable number of noncontroversial
bills. The Senate works until mid-afternoon and
call it a week knowing that the final week of
session will be hectic and that a number of major
issue items have yet to be resolved. The Senate
Environmental Quality Committee is scheduled to
hear AB 2670 upon adjournment of the session
but the hearing is cancelled leaving many to
believe the bill is dead for the year.
Friday, August 24This is the last day to amend bills in either house
without a rule waiver. The Assembly meets in
Similar to the final minutes of a championship game, the final weeks of a legislative session is a short, intense time period with long term ramifications.
The Business of Lobbying
Continued on p.28
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Capitol | I N S I D E R
Session because its rules require amendments
to be presented on the Floor during Session. The
Senate Appropriations Committee meets and
hears a number of bills including AB 1933. The
committee amends the bill reducing the amount
of time the revised formula for handling fees can
be used due to opposition from other bottle bill
stakeholders. SB 863, the workers’ compensation
legislation, is now in print and gathering a lot
of attention. Business and labor are actively
supporting the measure, while the applicant
attorneys are aggressively opposing it. AB 1634 is
amended with the same language we opposed in
AB 2670. We now focus our attention on this bill.
Numerous meetings take place to discuss a
strategy for moving plastic bag legislation.
Monday, August 27This is the first day of the last week.
All bills must be passed by the
Legislature by Friday at midnight or
they are dead. The only exception
made is for bills that include an
urgency clause which requires
a two-thirds super-majority
to pass. Session convenes in
early afternoon. AB 1634 is
referred to the Senate Rules
Committee which is a signal
to us it is dead for the year, but
we don’t dare let our guard down.
AB 1933 is eligible for a vote on the
Senate Floor but no action is taken.
Meetings to discuss plastic bag
legislation continue with progress
being made but no language is
available to amend into a bill. The
workers’ compensation legislation
is amended.
Tuesday, August 28Both houses have scheduled
numerous committee hearings
throughout the day to hear
bills recently amended. Both
houses convene at 10:00
am. The rumor around the
Capitol hallways is that the Senate Democrats
are not happy with the workers’ compensation
legislation and have threatened to kill it if further
amendments are not made. The pension reform
package is released. AB 1933 is eligible for a vote
but is not brought up.
Wednesday, August 29Time is running out and Legislators are feeling
pressure to put deals together. We continue to
work for the votes on a plastic bag bill but are
running into roadblocks in the Senate. Language
is finalized and ready to go when and if we can
show leadership we have a majority of the Senate
in support. AB 1933 remains eligible for a vote but
is not taken up. This is the first late night session
with both houses working until 9:00 pm.
Thursday, August 30Both houses work throughout the day
on a variety of bills. It seems as if the
only bills left are the controversial
measures because the debate on
the respective house floors has
become much more intense. One
bill may take up to two hours.
Our meetings with environmental
advocates and legislative staff
are beginning to pay-off on
the plastic bags issue. We
receive additional support
commitments but have yet to
obtain the majority needed. Many
legislators are beginning to feel
overwhelmed with the number of
last minute large deals and are
simply not able to focus on other
matters. SB 863 is amended again,
this time with language seeking to
obtain the support of the Senate
Democrats. Advocates, legislative
staff and the Governor’s team work
throughout the night to fine tune
the proposal.
Friday, August 31The last day of the Session.
Many of us are invited
Continued from “The Business of Lobbying”
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into the Governor’s office at 9:00 am to hear
about the deal made with the Senate Pro Tem
on workers’ compensation and are asked to
help get the bill through both houses prior
to the midnight deadline. Each house has
about 100 bills remaining, including workers’
compensation, pension reform, driver’s licenses
for undocumented immigrants and others much
less controversial. Both houses work throughout
the day stopping only when one house is forced
to wait for the other to conduct business and
send matters over. AB 1933 is finally brought up
for a vote in the Senate. It passes with bipartisan
support and is sent back to the Assembly for
concurrence. The workers’ compensation and
pension reform packages pass both houses
by large majorities. Both houses work right
up to the midnight deadline with some bills
ultimately failing because time ran out on
another legislative session.
In the end, the halls clear at about 2:00 am after
everyone has said their goodbyes. Most in our
business will now turn their attention to the
November election, which will result in a large
number of new faces in the State Capitol. We will
then start the process all over again when the
new class is sworn in on December 3. n
This article was authored by Louie Brown, a partner in the Sacramento office of Kahn, Soares and Conway, LLP.
Time is running out and Legislators are feeling pressure to put deals together.
Capitol | I N S I D E R
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CA
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Most agree that delays and frictional costs in the
workers’ compensation system are to blame. Both
employers and workers want to ensure that injured
workers receive timely medical care and appropriate
benefits to ensure prompt return to work.
As a result, organized labor and employer
representatives spent many months in 2012
negotiating numerous changes to California’s
workers’ compensation laws, that were eventually
dropped into SB 863 (de Leon), which is expected
to be signed by the Governor.
This reform package began after completion of
almost three years of research by the Commission
on Health and Safety and Workers’ Compensation.
Moreover, the Department of Industrial Relations
held a series of statewide hearings to receive
recommendations from interested parties to
improve the comp system.
Those negotiations took place with involvement of
key members of the Brown administration, as well
as major businesses including Disney, Safeway
and Grimmway Farms. Workers were represented
by the California Labor Federation.
The last reforms to California’s workers’
compensation system were enacted in 2004
under the Schwarzenegger administration.
Although comp costs were substantially reduced
after they peaked in 2003, insurance costs have
steadily risen over the past half a dozen years.
Shortly after the statewide listening tour was
completed by the DIR staff, labor and employer
groups negotiated over three major principles:
n Empirical data showed that injured workers
require increased permanent disability
benefits;
n Delays and system costs hurt everyone;
n Benefit increases have to be offset by more
than equivalent savings in the system.
n The resulting changes contained in SB 863
center on four major areas:
n Improved Medical Treatment
n Increased Permanent Disability Benefits
n Decreased Friction and Inefficiencies in
the System
n Stabilized Insurance Market
Some of the major reforms include: independent
medical review, modeled after the health
insurance process, to help minimize delays in
medical treatment with quick turnarounds and
evidence-based treatment guidelines. Medical
access assistants are created to assist injured
workers. An estimated benefit increase of over
$700 million will be provided during a phase-
in of two years. Several adjustment factors for
future earning capacity are eliminated. The bill
also contains significant changes to the lien
process, including imposition of a filing fee and
independent bill review process for adjudication
of billing disputes. New fee schedules are also
established for certain services and equipment.
There is some disappointment that the Workers’
Compensation Insurance Rating Bureau would
only recommend a 1 percent decrease in the
planned 12.6 percent advisory pure premium rate
increase that will take effect Jan. 1, 2013.
Nonetheless, all major employer groups, including
CGA, were in support of the package because it
Perspective | C H R I S M I C H E L I
As California grocers are well aware, workers’ compensation costs have been on the rise the past few years. These increased costs are being paid by employers, while injured workers are not seeing benefit increases.
2012 California Workers’ Compensation Reform Package Enacted
Continued on p.32
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reflected a negotiated compromise to provide a
substantial increase in PD benefits, as well as
eliminate waste and inefficiencies that result in
unnecessary employer costs.
The following is a summary of the major
provisions of SB 863:
n Eliminates the Workers’ Compensation Appeals
Board’s authority to adjudicate medical
treatment disputes that are directed to the
Independent Medical Review system.
n Establishes the IMR process, patterned after
a similar process used for resolving health
insurance disputes in order to resolve medical
treatment issues. This process is binding on
all parties absent certain circumstances.
n Allows employees to appeal utilization review
decisions under specified circumstances.
Continued from “2012 California Workers’ Compensation Reform Package Enacted”
Perspective | C H R I S M I C H E L I
n Establishes an Independent Bill Review process
to take medical billing disagreements out of the
jurisdiction of the WCAB adjudication system.
n Repeals the requirement that a second opinion
be obtained in cases of spinal surgery.
n Establishes a prohibition for any interested
party in the WC system to have a financial
interest in another entity to which it is referring
a party for services or for which it is paying or
receiving compensation.
n Increases PD benefits by approximately $740
million per year, to be phased-in over a two-year
period and adjust the formula for calculating the
benefit amount.
n Eliminates certain “add-ons” to primary
injuries that do not include these injuries when
calculating the level of permanent disability,
and eliminates the diminished future earnings
capacity from the PD determination.
n Establishes a return-to-work program
administered by the Department of Industrial
Relations that will be funded by an annual
appropriation of $120 million for the purpose
of making supplemental payments to workers
whose PD benefits are disproportionately low
in comparison to their earnings loss.
n Makes numerous changes to the Medical
Provider Networks, including required periodic
audits by the Administrative Director, and
establishing an expedited process to resolve
any disputes about whether the injured workers
are required to be treated within the MPN.
n Makes several modifications to the
Supplemental Job Displacement Benefit rules.
n Makes a number of changes to the filing of
liens, including a prohibition against filing of
liens where awards were subject to the IMR and
IBR dispute resolution processes; establishing
a $150 filing fee; adopting time limits within
which liens must be filed.
n Adopts a fee schedule for ambulatory
surgery centers. n
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You have been Council President for eight months. What are some of your priorities during your tenure?
Our city, like most cities, has been dealing with
the impact of the recession that has hammered
our local economy and reduced our revenues.
We have responded by eliminating some non-
essential functions and departments. We’ve also
eliminated nearly 5,000 full-time funded positions,
resulting in the smallest civilian workforce since
the Tom Bradley Administration. Maintaining
important services during this period will continue
to be our challenge. Ultimately, all of us will need
to weigh-in on what services are important.
What are some ways that grocers in particular, and the business community as a whole, can effectively engage in the L.A. city legislative process?
Communication and dialog are very important.
Coalition building can also be helpful in getting
a message out. Being open to compromise and
having a willingness to work for the better half of
the loaf can also advance an agenda. However, it
all starts with effective communication.
What do you see as the most challenging and rewarding aspects of serving in the City of Los Angeles?
I find that being able to get things done without
the kind of partisan warfare that impacts
Washington and Sacramento is a big plus. Most
of the issues we deal with are not ideological, so
it’s easier to reach agreements. I also relish the
challenge of serving during difficult times.
You have had such a renowned career as former Speaker in the Assembly, and now Council President of the largest city in California. What accomplishments are you most proud of, both locally and statewide?
Locally, it’s been a rewarding experience to have
chaired the Exposition Light Rail Construction
Authority during most of Phase 1 of the project.
Phase 1, from downtown to Culver City, is now
up and running. Phase 2 will take the line to
Santa Monica. I’m convinced that the Expo Line
is going to make a big difference in improving
the quality of our local transportation system.
I was the Speaker of the State Assembly when
Governor Gray Davis was recalled. Unlike most
people in the Capitol, I had a relationship with
the newly-elected Governor Schwarzenegger
prior to his election. So, I was cast in the role
of facilitator and negotiator, working to provide
leadership in forging compromises that could
bridge a very bitter partisan divide.
That experience has been an advantage in
my role as Council President. Bringing people
together is an important part of my job.
What is one of your favorite things to do in the City of Los Angeles?
Without a doubt, my favorite thing is spending
time spoiling my three grandchildren. Being a
parent was okay, but being a grandparent has
been fantastic! n
COuNCILMEMBER HERB J. WESSON, JR. WAS ELECTED TO REPRESENT THE 10TH COuNCIL DISTRICT OF THE CITy
OF LOS ANGELES IN A SPECIAL ELECTION IN NOVEMBER 2005. HE WAS ELECTED TO THE STATE ASSEMBLy IN
1998 AND SERVED AS THE 65TH STATE ASSEMBLy SPEAKER. HE TERMED OuT OF THE LEGISLATuRE IN 2004.
Q&
A
Councilmember Herb J. Wesson, Jr.
Q&A: Herb J. Wesson, Jr. Los Angeles City Council President
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1072_03_Sustain_CG.indd 1 9/11/12 6:09 PM
The Politics of Proposition 37 SEPTEMBER MARKS THE uNOFFICIAL END OF SuMMER AND THE HOME STRETCH IN POLITICAL CAMPAIGNS.
We know the importance of this presidential
election and the many congressional and local
elections in California, but we may not have
focused as much on a California proposition
that will also have a tremendous impact on your
businesses and customers.
This ballot initiative, Proposition 37, would require
and enforce yet another labeling law, but this
one has no nutritional or country of origin basis.
This labeling requirement is in effect labeling
the science behind the seed without food
safety justifications, or as Stanford University
found in a study released this week, without
nutritional impact.
As part of your political discussions with friends,
associates and opinion leaders, make sure to urge
folks to avoid getting caught up in the confusing
rhetoric, and urge others to simply “Vote No on
Proposition 37.” Those of you in California are all too
familiar with the impact some of your state’s past
political ideas have on surrounding states, but the
politics of Proposition 37 are even more concerning.
Propositon 37 is unnecessary because we rely
heavily on a nationwide labeling system that is
overseen by FDA and USDA depending on the
product. The nationwide system is consistent,
known to consumers and is based on science-
based on sound scientific research. Passage
of Prop. 37 in California would unravel that
system and add an additional layer of costs that
consumers simply cannot afford in this economy.
While our opponents in this debate are using
emotional appeals with marketing efforts
featuring icons such as cute little girls,
we have the facts, science and lower
costs on our side; we just need
to effectively tell our story and
inform consumers and voters.
Thankfully, we have a
growing group of resources to
communicate with associates,
executives and customers that
the presidential election is not the
only influential item on the November
ballot or the October mail-in ballot. If there is
a communication piece that you need to help
you effectively communicate the arguments
against Proposition 37, please contact FMI and
let us know.
FMI will provide Proposition 37 materials and
additional GMO/GE related information on our
website (fmi.org). Additionally, a group of grocers,
farmers, food producers and other food industry
businesses formed the “No on 37” coalition to
oppose Proposition 37 (www.NoProp37.com/). n
WA
SHIN
GTO
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EPO
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Jennifer Hatcher Senior vice President,
Government and Public Affairs, Food Marketing Institute
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Continued on p.40
“Innovation is not creativity. Creativity is thinking up new things. Innovation is doing them,” said Terry Jones, founder and former CEO of Travelocity.com and now chairman of kayak.com.
Jones, who is slated to speak at the CGA Strategic Conference on building an innovative organization, told California Grocer, “It’s great to have a process in your company to generate ideas. But innovation is about putting ideas to work by building the right team and culture and implementing a strategy that turns ideas into new services and products.”
By Len Lewis
CA
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At times, innovation can be driven by technology or by new products and services that are put in place to satisfy an unmet consumer need. Sometimes, consumers themselves generate it.
“They can give you a lot of good ideas,” Jones says, “but will they take you to the next level? Innovation is about looking beyond what is immediately apparent.”
He conceded that there is a tendency on the part of some companies to focus more on technology than on customers.
“For instance, social media is the shiny new thing and is sometimes responsible for that,” he noted. “Of course, we should do social media. But why and how it will help you is the question to ask. Sometimes new technology is simply too new for a particular customer set. Or it may not apply to your business.”
It’s always harder for a large organization to embrace innovation with the alacrity of a small startup, Jones says.
“But in the grocery business you are assaulted by innovation all the time because thousands of new products are introduced every year,” he adds. Yet innovation won’t happen if your leaders don’t embrace a need for it,” he said.
“The best ideas may come from the bottom up. However, culture is created at the top. It has to be driven by leaders that can say it’s all right to experiment and fail.”
In essence, retailers are experimenting all the time – whether it’s with new products, placement of shelves or new pricing.
“It’s a Darwinian experiment and you have to do the same thing with customer facing systems, store design and how you train your people to communicate with customers,” Jones says. “You’re going to have a lot of failures and I wouldn’t bet
the farm on everything. But failure is okay if it turns into a good learning experience and helps you move forward.”
The problem, according to Jones, is that people think that if they fail they’ll be fired. If that’s the case, no one will ever try anything. Companies need to develop a culture that can kill the project but not the person. Innovation comes from trying, learning and trying again.
Over the past several years, there’s no doubt that e-commerce has been one of the most important innovations to hit retailing.
“It’s changed customer facing businesses dramatically,” Jones said. “Even if you’re not selling things online, people are doing their research and discovering so much more about products.
“This changes what they buy in the store and whether they will go to another store if you don’t have what they want,” he adds.
The online world has changed many companies from just competing on the brand level to competing on the SKU level.
“Everyone has bread, meat and produce,” Jones says. “But what if I’m looking for something else? That’s why a tremendous amount of people go to search engines to decide whether they will go to the store or Amazon which, along with other sites, has irrevocably changed consumer behavior.“
Customers are increasingly multi-channel animals, according to Jones. Simply look at the number of people with smartphones out in the store – either receiving directions from home, pulling up coupons or looking for a better deal.
“The combination of mobile technology with online information is empowering consumers in a new way,” he says. “I’ve asked the manager in my grocery store about it and he estimates that at least 30 to 40 percent of people are using smartphones as they walk through the store.”
While travel sites like Kayak and Travelocity are not dealing in the delivery of physical goods, they share a common bond with retailers in that both are facing increased availability of product information. It’s changing consumers’ online behavior.
b U I L D I N G A N I N N O VAT I V E O R G A N I z AT I O N | Terry Jones
Continued from “Innovation”
“The best ideas may come from the bottom up. However, culture is created at the top. It has to be driven by leaders that can say it’s all right to experiment and fail.”
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“Building relationships with consumers may be old hat to grocers who have built relationships by providing great service and the right mix of products,” Jones said. “But it is essential to reach out to customers in email and through social media or by enabling them to find out more about products through QR codes on the product. This too is part of relationship building today.”
According to the Kayak executive, customers don’t really care about channels. They care about solutions. As such, they look at the information they get in the store, on the web and through mobile device as one and the same.
“Unfortunately, some companies are organized around channels,” he finds. “They operate in silos or divisions. But you really have to look at your customer and say, ‘I don’t care which door they come in, their experience has to be the same.’ You just want them to bring their wallets.”
Nonetheless, social media has been very important in engaging customers, building trust and ultimately a relationship with them.
“When people tell me they have 7,000 Facebook friends for their business, the question I have is what they do with them?” Jones asks. “The answer is to treat them like friends. Tell them about new things and make them offers. If you do, they are going to tell their friends who will then become friends of your brand.”
However, Jones urges retailers not to spend too much time obsessing about social media.
“Of course, if you’re the convenience store across the street from the college, you need to have a very
different attitude toward social media than the store out by the state park,” Jones says. “But retailers, especially smaller retailers, don’t have time and I’m not sure about the rewards. Start by listening to what people are saying about you. You certainly want to know how you are being reviewed whether it’s on Yelp, Yahoo or Google.“
And, if no one is saying anything you may decide you want to get a conversation going. But know what questions customers are asking, then decide what to do about it.
Retailers also have to decide which of their customers will be the focus of their digital efforts.
“At Travelocity, we had 40 million names in our customer database,” he says. “We bought demographic data on those people and if we were soliciting for tours, we would send very different emails to a group like single professional working women than to retired couples.
“They would buy different tours. But it also gave us a chance to present the same tour differently. Many stores do that with loyalty card data,” he added.
But in the end, it’s still about building a company culture that is okay with experimentation and failure.
“People may not come forward, but there are great ideas trapped within your company,” he concludes. “It’s the lowest paid people who are interfacing with customers every day and know what they’re saying about your store. Make sure that information flow is not stopped by middle management afraid of change.” n
b U I L D I N G A N I N N O VAT I V E O R G A N I z AT I O N | Terry Jones
Top Industry Speaker
Kayak.com executive Terry Jones will keynote the General Session of the 2012 CGA Strategic Conference on October 1 in Palm Springs.
Terry Jones founded Travelocity.com and served as President and CEO from
its founding until May 2002. Previously, he served as Chief Information Officer
at Sabre Inc. Jones is managing principal of Essential Ideas, a consultancy
he co-founded to help companies transition to the digital economy. He is
Chairman of the Board of Kayak.com.
Terry Jones, Founder & Former CEO of Travelocity.com, Chairman of Kayak.com
2 0 1 2 c g a s t r ate g ic c o n fe re n ce
Palm Springs Convention Center Palm Springs
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“People can pick up a megabag of chips anywhere these days. But if they know they can come to your store and get solutions that are really healthful, it’s going to get their loyalty and make healthy foods profitable for retailers,” said author and celebrity chef Ellie Krieger.
HealthyFoodsGood for Retail
By Len Lewis
Continued on p.46
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Krieger, a registered dietician and a regular guest on national television, has also been at the forefront of First Lady Michelle Obama’s “Let’s Move” campaign to combat childhood obesity and is a lifelong advocate of healthy, simple eating for everyone.
But Krieger, who spoke with California Grocer on the eve of her presentation at the CGA Strategic Conference, also knows how difficult it is to change people’s behavior.
“People buy things first because they taste good – things they will enjoy from a sensory perspective,” she says. “So whether we’re creating a recipe or selling a product that has a healthier profile, we have to bring taste in first.
“And if people know they can make something for their kids that tastes good, is healthy and easy to make, it becomes self-perpetuating,” she says. “And by displacement, they won’t go for the chips and cookies.”
Janet Myers, senior director, retail culinary experience for Kraft Foods, Inc., who is moderating a share group entitled “Helping with Consumers’ Desire for Simple and Healthy Eating, agrees that taste is the essential.
“The key is how to move people along a continuum of small steps toward eating better,” she says. “Taste and ingredients are the gatekeepers of these small changes, whatever products or recipes are presented have to taste great.”
However, Krieger noted that if you really want healthy foods to fit into consumer lifestyles, it’s best not to beat people over the head with it.
“My first cookbook was called “The Food you Crave: Luscious Recipes for a Healthy Life,” she says. “There’s a very specific reason why my recipes don’t have the word ‘healthy’ blaring in the title. Research shows a definite bias toward it. If you tell people ahead of time that something is healthy, they like it less than if you didn’t say anything about it.
But, Krieger says, everyone wants to be healthy.
“Ask anyone on the street and they’ll say yes,” she notes. “Then ask them if they want delicious food and they will also say yes. I’ve tried to find where these two circles converge. That means being careful in how
we market healthy foods and by bringing taste into the mix first.”
This again is part of Myers’ belief that taking small steps in trying to change consumer behavior is best.
“Of course, many consumers aspire to eat better,” Myers says. “But the key is being practical and giving them real life tips on how to do it. The most successful way is to give people easy ideas and make small changes to their current behavior.”
Myers doesn’t believe consumers are looking to dramatically overhaul their eating habits.
“It sometimes depends on what’s right for each person,” she says. “If you’re trying to get a family to eat more vegetables, why not stir some broccoli in with the macaroni and cheese or, if they’re having a dip, add a new vegetable they haven’t tried before.”
Asked what she hears most from her readers and viewers, Krieger replied: “I think people are very confused. They want their lives simplified. They want simple solutions to the complexity of the information when choosing products in stores.
“Basically, people are overwhelmed in their lives and by the prospect of putting together a meal,” she says. “Anything we can do to help reduce their sense of confusion will serve them and will bring them back to us for more.”
Helping people cut through the clutter and confusion should also be an ongoing process.
“If you’re talking about presenting options for dinner, you need to have simple solutions at arms reach and at eye level,” Krieger says. “And offer simple recipes and have tastings in the store whenever you can.”
This also means focusing more on solutions than products.
“People can buy food anywhere these days – even Target and Walgreens,” she says. “We have to focus on solutions that help them and make buying food more of a pleasant experience. The question is how to make it more pleasant for shoppers.”
Research also indicates that these yellow, green and red light health code systems seems to help people make good, healthy decisions, according to Krieger.
“It’s a good starting point and very helpful in getting people to reach for the right things,” she says. “But I
H E A LT H y E AT I N G | Retailers
Continued from “Healthy Foods Good for Retail”
Continued on p.48
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EMPHASIZING Big Platforms for big category growth.+ DELIVERING sampling
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still encourage everyone to turn that box over and look at the ingredient list. Just because something gets a green light doesn’t necessarily mean it’s good for you.”
Nor surprisingly, Krieger is also a big proponent of having dieticians in stores.
“It’s another way to help people sift through all the products and teach them how to shop for healthier foods,” she says. “The payback seems to be tremendous. Stores that have dieticians feel it’s invaluable.
“Let’s say the dietician gives a tour to 20 people and those 20 now know how to shop and what to look for in that particular store. Those 20 people are going to come back to that store over and over again. You’re getting their loyalty,” she said.
This also promotes the sense that the grocer is part of the community at large not just another retailer.
“People want that human connection with food and there’s an experiential aspect to it,” Krieger says. “In my neighborhood, my Whole Foods supports a lot of the initiatives in my child’s school, including produce. That means a lot to me as a member of the community. So there’s a broader role the supermarket can play.”
Healthy eating is not a fad, she says. The connection between what we eat and the fullness with which they live their lives will always be there.
“People really understand the link between how well we feel and what we eat,” Krieger says. “Then if you can hit the sweet spot – delicious taste – there’s no downside. The problem is when you do something without regard for taste.”
Asked for her opinion on prepared foods versus home cooking, Krieger said: “I think people realize it (prepared food) is a missing link. Clearly, people are very busy and we’ve gotten too far away from cooking. But there are a lot of great options out there. It’s not an either/or situation. We can buy a rotisserie chicken and make a couple of meals from it.”
However, people still need to know how to cook.
“People are sadly lacking in basic skills,” she said. “There is a new awareness and in some ways, television shows are helping. It’s inspiring people to get back in the kitchen.”
Her fear is that too many shows are “too hyper.”
“They are contests where chefs have to make a veal bone reduction,” she notes. “You don’t have to do that to cook a good meal for your family.”
The lack of cooking skills among some consumers is another reason for retailers to consider in-store dieticians or cooking classes, according to Krieger.
“This gives you the chance to teach basic cooking techniques,” she says. “It also gives people ideas like using grilled vegetables to put on a homemade pizza or maybe some precut vegetables for a quick stirfry. It doesn’t have to be all or nothing. There are so many kinds of fresh solutions and easy shortcuts. People shouldn’t be ashamed to use prepared foods.”
As to the lack of cooking skills being more prevalent among younger people, she mused: “I think we should bring back home economics to schools. That’s where many people learned basic skills. It had already been phased out by the time I was in school. But with the national childhood obesity crisis it needs to come back.”
Continued from “Healthy Foods Good for Retail”
Continued on p.50
H E A LT H y E AT I N G | Retailers
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Krieger says there’s considerable research indicating that if children are involved in preparing and choosing foods then they are more likely to try and enjoy them.
“Besides having your own garden, it’s the single best way to get kids to eat vegetables,” she says.
Meanwhile, the best way for retailers and manufacturers to get involved may be partnering with schools and some government agencies.
“I think the possibilities are rich in that area,” she says. “It can lead to a more holistic change in your community. I started the wellness committee at my child’s public school in New York. We were on a mission to receive the Healthier Schools Challenge award. We were the first and only New York City school to get it and our local stores helped make that happen.”
One reason is the trend toward more fresh products at retail.
“The perimeter of the market has grown tremendously, but it can be built up further,” she says. “People are seeking out fresh and seasonal produce more than ever. They want that human connection with food. The more we can highlight that with sampling and recipes, the more it will appeal to them and get them to come back to your store.”
As to developing new programs, Krieger firmly believes in grassroots efforts – as close as possible to the community.
“The grocer is a social service in a community, not just a retailer,” she notes. “Look at areas called food deserts. There are over 23 million people living more than a mile from a grocery store. Having a grocery store in the community can change people’s lives tremendously. The first step in healthy eating is accessibility and this gives it to them.”
At Kraft, a considerable amount of research has been done on understanding consumer behavior and attitude toward cooking, said Myers. A recent cooking behavior study by the company underscored several key points that were also mentioned by Krieger.
n The definition of cooking, including cooking from scratch, has changed. It means different things to different people across consumer groups.
n The need to address changing family dynamics and the recognition that one size does not fit all.
n Generational approaches vary depending on how much they have learned about cooking. Each comes to the grocery store with a different approach to cooking and a different understanding of meal solutions.
n People’s lives influence how they make decisions in the store. They may be interested in food but their lives are so busy it causes them to behave in a completely different way.
All these points lead to the need to simplify both the shopping and cooking process.
“Both manufacturers and retailers are certainly taking steps to simplify,” says Myers. Manufacturers and retailers have to come together in a collaborative way to connect the dots at the grocery level in a way that’s meaningful and accelerates consumer understanding of how to make things better for her and her family.”
Fortunately, collaborative efforts are developing.
“It’s not going to be the same between all manufacturers and retailers,” Myers says. “The opportunity is for us to decide what’s important and put the different marketing elements together in a way that excites and motivates consumers to buy a product or meal solution and come back for more.”
She emphasized that meal solution programs have to remain consistent at retail. “There is a certain level of expectation on the part of the shopper. They want to know if they like something it will be there consistently and everything won’t be different next week. It’s about reliability.”
However, does this mean changes in store merchandising?
“That’s a creative process and there are lots of answers to that,” according to Myers. “This is an opportunity for collaboration between manufacturers and retailers on what the grocery environment will look like. It’s incumbent on us to get together and brainstorm new ideas because consumers want an easier and better experience.”
Myers noted that this could mean development of meal solutions centers or better use of endcaps.
“The key is what they are going to look like, what they will communicate to customers and whether they are simple and relevant,” she said, adding that whatever’s done has to be a permanent fixture of the store experience. “There’s going to be a period of experimentation. But it’s a journey we need to embark on.” n
Continued from “Healthy Foods Good for Retail”
H E A LT H y E AT I N G | Retailers
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Millennials: Who Are They & How They Shop
Continued on p.54
Millennials are going to redefine retailing. They are not fans of tradeoffs and are accustomed to having their cake and eating it too.
So says Han Delin, founder of 9dotz.com, a San Francisco-based firm specializing in generational advertising and marketing, and a workshop presenter at the 2012 CGA Strategic Conference.
According to Delin, millennials have been referred to by a number of names, including Generation Y and Echo-Boomers. But basically, this is a group that was born between 1980 and 2000.
Industry sources, including Delin, are quick to emphasize that millennials are more unique than previous generations and may have an even greater impact on the supermarket and CPG industries than their predecessors.
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By Len Lewis
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This is a group for whom price is important but fun is essential in assessing retailers. As such, supermarkets should establish relationships and build loyalty with this group as early as possible, establish a real value proposition with them, closely monitor trends anticipate quick changes in demand and the overwhelming need for digital communications.
The whole concept of generational theory is very interesting, Delin says. It assumes that people born in a certain time and place have shared experiences that would give them similar attitudes and behaviors.
“But with millennials, time and place become less significant,” Delin observes. “They are not isolated. Because of the access they have to social media and the Internet, they can have any information they want anywhere at any time.”
This is also a generation that connects with each other on a global level.
“They have transcended traditional boundaries more than other groups,” he says. “As such, they don’t necessarily feel the generation gap the way that previous ones did. Therefore, they don’t have the same distain for anyone who’s an adult.”
This alone distinguishes millennials from other demographic groups. And as a result of this connectivity with others, they tend to seek out similarities more than differences between themselves and other people.
“For example, when previous generations came across someone from another country, the first thing they usually noticed was what made them different,” he says. “Millennials look for similarities. Culture has become so global that commonalities are not hard to find,” he said.
These similarities can be as simple as seeing someone else wearing a pair of Nikes.
One of the major defining characteristics of millennials is that they represent the first truly digital generation, most of whom have never known life without a computer.
“It does depend on whether you’re talking about younger or older millennials,” Delin says. “The younger ones can’t imagine life without a cell phone in their pocket and access to Internet on that device. It has shaped the way they think and the way they interact. This is a mobile and social media generation and the Internet is like oxygen to them.”
As to their dislike of tradeoffs, Delin noted: “As a group, they are quite uncompromising. Some people describe them as ‘entitled.’ I say it comes from a series of life experiences which have made them expect things to generally go their way.”
According to Delin, millennials grew up during a period that has been labeled a “holiday from history.” Aside from a brief interlude due to 9/11, life was good.
“Technology was in their favor,” he says. “So getting their way is a significant defining characteristic. Some people have branded this as pure optimism.”
However, this is also a generation of realists, according to Delin. Hit by the global economic crisis in 2008, millennials have been forced into a type of pragmatism and have practiced conspicuous reduction.
“Additionally, they think it’s cool to be practical and not to spend a lot of money,” he says. “They are dealing with conflicting tendencies. On one hand, there are things they want. But they also understand they have to make some serious choices.”
M I L L E N N I A L S | Han Delin
Continued from “Millennials: Who Are They & How They Shop”
Continued on p.58
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A number of brands are meeting their expectations on several levels, including Nike, observes Delin.
“Nike enables people to fit in but express their individuality at the same time,” he notes. “We can all wear Nike shoes but no two of us have to wear the same ones.
Target is another interesting example of conspicuous reduction. Big name designers that are putting their goods on Target’s shelves.
Overtaking Baby BoomersMillennials may not be taking over the world, but they will have
a profound effect on it over the next decade as this generation
matures and baby boomers continue to age.
This will have a profound impact on the retail environment which
is likely to become even more chaotic requiring manufacturers
and retailers to become even more nimble and to focus even more
intensely on the rapid growth of new concepts and products,
according to a new report entitled “Trouble in Aisle 5” by Scott
Mushkin, equity analyst with Jeffries Alix Partners.
Millennials, which recently surpassed baby boomers as a percent
of the U.S. population, will surpass 90 million by 2020, much of it
driven by immigration, according to Mushkin. Among the highlights
of the report:
n Millennials are likely to be more educated than baby boomers
and this correlates with higher earnings.
n They are much less brand loyal and willing to engage in different
distribution models to meet their needs.
n This generation appears to want what they want, when/where
they want it…consumption will be on their terms.
n Millennials appear much more focused on lowest price rather
than brand loyalty, but at the same time are much more willing
to pay for specific attributes.
n Brands do matter more for top earning millennials… these just
might not be their parents’ brands.
n Traditional supermarkets are losing the high-income millennial
as they shop specialty stores for fresh products and mass
merchants for everyday essentials.
“Some items under the Neiman Marcus brand will now be available at Target,” Delin points out. “This challenges the whole notion of luxury and price points and plays to the ‘no compromise’ attitude among millennials.”
Delin says millennials are not willing to pay crazy prices for something just because it’s from Neiman Marcus. In fact, he says, this generation thinks it’s cool to get something at Target that has the Neiman Marcus name on it.
But how will Millennials view the grocery store?
“Grocery is in an interesting place because there are companies with very distinct brand identities,” says Delin. He points to stores like Sam’s Club, Costco and Whole Foods. They have defined roles in consumers’ minds.
“But if consumers shop intelligently, there are times that prices at supermarkets are virtually identical to those at club stores,” Delin says.
“However, supermarkets have to make a choice,” he says. “They can be a house of brands where people can have their cake and eat it too – a perfect blend of quality and value that would make them a destination for millennials.”
The other option for supermarkets is to take the middle ground.
“The old adage says you don’t want to get stuck in the middle,” Delin says. “But there’s an opportunity with this generation to turn that around and make the middle a highly successful place.
This requires very deliberate marketing, according to Delin, in order to communicate the benefits of price and selection.
“Millennials have to know that places like 7-Eleven may be closer but they’ll pay higher prices and won’t have the selection,” he says. “They have to be aware that Whole Foods might have more organic and natural products, but they would have to travel further to get them. So there are tradeoffs that this group of consumers can make to get better value and convenience.”
Overall, Delin believes millennials will look for one-stop shopping and retailers who give them whatever they want in terms of value and selection.
Continued on p.60
Continued from “Millennials: Who Are They & How They Shop”
M I L L E N N I A L S | Han Delin
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“They want brands that actually stand for something,” he said, citing a chain like HEB in Texas. “They have a family owned halo and local credentials that make them appealing. It gives them the values this generation admires.”
Asked whether millennials are less or more likely to be multi-channel shoppers, he says, “I think that they are likely to look for something that fits their lifestyle rather than change for change sake. The problem is that grocery has been defining itself in relation to other channels. Grocers need to put a stake in the ground, and tell people who they are, what they believe in and demonstrate it in their stores.”
Whether millennials will focus on stores that promote issues like sustainability is still open to debate, according to Delin. It all depends on the message.
“This is not cause marketing the way it’s been done in the past,” he points out. “It can’t be an add-on. It has to be something organic to the brand. Look at Tom’s shoes. Its social contract is in its DNA. If you buy one pair, they give one pair to a child who has no shoes.”
He also mentions a San Francisco Bay Area company called Revolution Foods. They are in schools serving lunches to kids who get free and reduced cost meals and now they’re moving into retail.
“People don’t just purchase that brand, they participate with it,” he said. “You have to develop a personal relationship with the community – a personal social contract. Increasingly, the whole way we shop and interact with brands is social and once again we are looking for that human element in our shopping.”
As to online shopping for millennials, “It basically sets the bar for everything else and it’s the reason people want that human element. Purely transactional relationships have moved online.
“It’s for people who just want stuff and don’t need any communication or high touch interaction,” he says. “Amazon and iTunes defined what a transaction looks like to this generation. But a good social contract means interaction versus a transaction. That means having something besides price.”
Turning again to his basic premise, Delin reiterated that millennials will have the power to redefine the retail landscape.
“They want it to be more participatory, more engaging than traditional retail experience,” he said.
This could have a dramatic impact on the way stores are set up. The manufacturer to retailer to consumer view of the supply chain has to be broken down.
“It used to be a matter of how to reach consumers,” he says. “Now it’s about why they should reach for you because the balance of power has shifted. It’s more about pull and less about push.”
In-store changes may also be in the offing.
“Now things are organized around manufacturers and categories,”
Delin says. “Going to the store for tonight’s dinner can lead to an intricate shopping pattern.”
“But the consumer is going to go into the store with a certain
mindset. They want to know what to serve the kids for dinner or what’s
healthy for lunch. They are going to the store to shop through that ‘need’ state – not to shop by manufacturer. The in-store experience will revolve more around consumer need and less around brand blocking,” he said.
Delin believes this could be very exciting if retailers experiment with meal kits that are not organized by brand or category, but by how people prepare foods.
“I would encourage chains to get ahead of that and start experimenting with merchandising, including endcaps,” Delin concludes “Everything happens in an evolutionary way and there’s no reason this has to be any different. Take it slow. When things work, expand them. If they don’t—try something else.” n
Continued from “Millennials: Who Are They & How They Shop”
M I L L E N N I A L S | Han Delin
Whether millennials will focus on stores that promote issues like sustainability is still open to debate, according to Delin.
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Connecting With Shoppers
In a New Economic Age
So says Larry Levin, executive general manager, consumer insights for SymphonyIRI, and a presenter at this year’s CGA Strategic Conference.
According to Levin, a certain segment of consumers are more involved in preparing to shop than ever before.
“We found that about 14 percent of the general population falls into what we call ‘savvy shoppers’,” he says. “Ironically, they are among the wealthiest with the highest median income of any segment we’ve created – about $72,000. But they spend about 45 minutes to one hour per week getting ready to shop and are heavily focused on finding the best deals possible.”
Levin says these consumers are looking at Sunday supplements and circulars, are going online to download any type of manufacturer or retailer coupon and are “liking” things on Facebook to get the most deals available.
It’s not so much about how the economy is affecting consumer spending as it is how it affects the ways consumers get ready to spend.
Continued on p.68
By Len Lewis
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Asked what savvy consumer do “like” these days, Levin said that in general they like national brands more than store brands.
“They come to the store with pretty detailed lists and they are more likely than any other segment to put brands on that list,” he says. “But manufacturers still need to win their hearts and minds, or they might find themselves losing a big opportunity.”
Levin conceded this is an extension of shopping behavior the industry has seen in the past.
“But all consumers are simply getting smarter then they were before and that segment is growing in size,“ he adds, noting that this trend is more about a mindset than demographics.
“They are smart because they get more value for their dollar on a defined budget,” Levin said. “They have the attitude that just because they make a lot of money doesn’t mean they don’t shop smarter.”
Additionally, this group is very community-oriented and are more likely to shop at local grocery stores and are less likely to spend money for groceries at places like Target and Walmart or other channels of trade.
But, according to Levin, they are still very much price shoppers and once they’re in a store will pick up the latest circular to make sure they are up to date on deals.
These same customers are also heavily digital.
“I can envision them walking down the aisles and scanning products to see if it’s cheaper of within a mile of where they are shopping,” he notes. “That’s how focused they are on getting the best deal.”
Although this segment of savvy shoppers prepares a list before shopping and tends to stick with it, it doesn’t mean they’re not open to discretionary purchases.
“When they walk in your store you have one final opportunity to change their behavior,” he says. “So if you’ve got a national brand that will offer a better price or value, the consumer may cross over the line at the last second for the best deal on that national brand.”
N E w E C O N O M I C A G E | Larry Levin
Continued from “Connecting With Shoppers In a New Economic Age”
Who are California shoppers these
days? How do they think and what do
they buy?
These are always difficult questions
to answer, but even more so due to
the impact of the recession and
consumer attitudes on the pace of
the economic recovery.
“We’ve been in pretty bad shape here
since our unemployment rate tends
to be a couple of points higher than
the national average,” says Larry Levin,
executive general manager, consumer
insights, SymphonyIRI. “We are faced
with higher than average gas prices,
plummeting housing values and high
unemployment. As a result people
are more cautious.”
However, the good news for retailers
and manufacturers comes from the
research firm’s attitudinal data,
which shows that Californians are
still pioneers when it comes to new
products and are more likely than
others to “give something a shot.”
“There is still the perception of
thought leadership coming out of
California,” says Levin. “That’s why so
many manufacturers and retailers
introduce things here then move to
the rest of the country.”
Research shows that 22 percent
of Californians are more likely to
be early adopters of new products
compared with 15 percent of the
general U.S. population.
“Californians seem to place less
credence on prior use and, by nature,
are willing to be the first to try new
products,” he says. “Basically, they are
saying that you don’t have to prove
something to win in California. We’re
willing to jump off the diving board
more quickly, whereas the rest of the
country is likely to take a wait-and-see
attitude toward new products.”
On the other hand, this may also indicate
less loyalty for longtime brands.
“About two-thirds of Californians in our
research say previous use of trusted
brands is important to them,” he notes.
“This compares with about three-
quarters of the U.S. population.”
California Shoppers: A Tale of Two Peoples
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However, in assessing attitudes and shopper behavior, supermarkets must look at all segments including a group called “the downtrodden.” This group makes up 18 percent of the population and, as the name implies, are having difficulty with the current economy, according to Levin.
“They consciously avoid certain aisles in the store because they are afraid they’re going to buy things they don’t need,” Levin says.
The SymphonyIRI executive claims it’s important that every retailer understands demographics and the mindset of the people walking into the store in order to do a better job of positioning products. The downtrodden are heavily motivated to buy every day low price whether it’s national brands or private label.
“This is not an extreme low-income group,” says Levin, emphasizing that 15 percent of the “downtrodden” have incomes over $100,000.
‘They are cautious and worried,” he says. “In the past, they may have had two people working, or one person with a bigger salary that lost their job. These are people who have lost equity and have seen their total net worth decline significantly. They may have kids going to college, the value of their house is down and jobs are being lost. Everything affects peoples’
ability to spend the way they used to – including food shopping.”
Another important group are the “startups” or millennials, those in the 18 to 34 age group.
“They are completely digital, love whatever app they can find and are more likely than the general population to buy online,” Levin claims. “They also spend a disproportionate amount of dollars in drug stores, about 7.5% compared with 5% for the total U.S. population.
“For them, the drug store is the new convenience store,” he says. “They go to the store to pick up a prescription and while there pick up a can of coffee, box of cereal or a frozen entree to pop in the microwave. It makes one-stop shopping easier for them. Plus, the drug store formats are nicer, easier to shop and safer environments than convenience stores.”
N E w E C O N O M I C A G E | Larry Levin
Looking at the economic segmentation
of shoppers, Levin noted that due to
the economic situation – specifically
unemployment numbers – about 20
percent of California consumers would
be classified as downtrodden, versus
18 percent of all U.S. households.
However, California has fewer
consumers classified as cautious and
worried than the rest of the country –
22 percent vs. 25 percent. On the other
hand, 13 percent of Californians are
classified as “carefree” compared with
only 11 percent of the total U.S.
“So we have a tale of two peoples,”
he says. “There are those who are
really drowning in today’s economy,
who saw housing prices plummet and
can’t find jobs. On the other end of
the spectrum, a sizeable percentage
of Californians are still doing well
even though the economy has been
something of a pitfall for friends
and neighbors.”
He notes that even more affluent
people are being “savvy” shoppers
and are spending more time trying to
stretch their dollars as far as they can.
In a breakdown of shopping frequency,
IRI found that the so-called “down-
trodden” in California made 173 trips
annually vs. 172 trips for the U.S. at
large. The “startups,” who tend to be
under the age of 34 and include the
“millennials,” made 167 grocery trips
annually vs. 171 for the entire country.
The “carefree” shoppers in California
make 193 grocery trips annually,
compared with 168 annually for the
entire country.
“We found that 61 percent of their
trips were quick trips,” Levin said.
“So the message is that you better
be top-of-mind as a retailer to
capture that quick trip because their
spontaneity and the fact that they are
less price sensitive and less inclined
to buy private label,” he said.
“They will gravitate to whatever
store they pass by when they need
something. And if you dissect those
trips you might find many of them
are to stores like CVS. They don’t care
if they have to pay a $1 more for a
container of milk.”
Continued on p.70
The downtrodden are heavily motivated to buy every day low price whether it’s national brands or private label.
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But millennials, being part of the Apple store gener-ation, want their shopping experiences to be fun.
“They like to play and tinker and we see from some reports that they are faster to adopt home treatments in categories like beauty care, whether it’s fun, easy-to-use nail polish or upscale salon products,” he says. “They have more of a do-it-yourself mentality. A lot of them have been forced to move back home and are trying to stretch their dollars. They have to be more prudent about what they spend money on.”
However, Levin pointed out that technology is not just for millennials.
“Smartphone penetration is significant in people over the age of 45,” Levin notes. “So, I expect more stores to have wifi so they can send offers to people’s smart phones directly instead of depending on circulars.”
It’s taking advantage of technology that people like to use and have accepted it as a customary practice.
“It can help target them towards an aisle they may not have thought about walking into,” Levin says. “It’s no longer about mass. More individualized target marketing, in conjunction with a store’s frequent shopper database, is the wave of the future.”
Many supermarkets are already taking advantage of this, but adoption can be slow.
“There have been a lot of stories in the media about how a company like Dunhumby has helped Kroger send a price to one shopper who, historically, has bought a certain size product, while offering a different price to others,” he says.
“In the old days people didn’t want that kind of ‘junk mail’,” Levin offers. “But a lot of them have come to really accept that kind of personal commitment. It’s not seen as intrusive junk mail. In fact, they are inviting the retailers to reach out to them.”
Looking ahead, pricing will still be the key to success even the economy improves.
“Buying smart is the new normal,” he says. “We continue to see 20 percent of the population spending on private label. That hasn’t changed and they have earned trusted brand status among many people.
“That’s the reason for the success of Trader Joe’s, Target and Costco brands.,” said Levin. “Consumers in all economic spheres have shown how they have endorsed private label. I think there’s a continuing opportunity for retailers.” n
Top Industry Speaker
Larry Levin is executive vice president of Consumer Insights for SymphonyIRI
Group. Levin has spent his entire career in market research, leading
engagements for many of the world’s largest manufacturers and retailers,
including Pepsi, Lexus, Starbucks, Microsoft, and Disney. From the latest
consumer trends to new product introductions, Levin has extensive experience
in analyzing a broad range of topics and is frequently quoted in such
publications as the Chicago Tribune, Forbes and Marketing Daily.
Larry Levin, Executive general manager, consumer insights for SymphonyIRI
2 0 1 2 c g a s t r ate g ic c o n fe re n ce
Palm Springs Convention Center Palm Springs
Continued from “Connecting With Shoppers In a New Economic Age”
Join CGA’s Government Relations Blog and get insight and commentary beyond the headlines on local and state issues impacting California's grocery industry.
To join CGA’s growing blogger community, log onto www.cagrocers.com/government-relations/blog/
City Hall In A Click!
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The Stater Bros. “Family”
Salutes CGA 2011-2012
Outgoing Chairman
Jonathan MayesSafeway Inc.
And
WelcomesCGA 2012-2013
Incoming Chairman
Kevin DavisBristol Farms
CGA_JonathanMayes_rev_Layout 1 9/14/12 1:51 PM Page 1
Continued on p.74
Are sustainability and environmental issues taking a back seat as consumers focus on jobs and the economy?
Absolutely not, says Arlin Wasserman, founder and partner in Changing Tastes, a consultancy focusing on environmental planning, policy and development.
“Everything depends on which consumers you’re trying to reach. You have to set aside your own generational perspective,” he told California Grocer, in an interview on the eve of the CGA Strategic Conference where he will moderate a share group on Sustainability: The Next Generation.
“For baby boomers who buy organic and natural products, it’s a luxury – something for which they may be willing to pay a 15 percent premium,” he says. “But those consumers are also cutting back on their purchases.”
For Generation X or millennials, some of whom who are now double-income parents of young children, sustainable purchasing is part of their decision on which store or company gets their loyalty, Wasserman says.
“They are not just going to pay a premium. They want products that reflect their values, are good for the planet and good for their health. It’s a single brand value proposition,” he says, noting that this is why companies like Chipotle, Starbucks, Panera Bread and Whole Foods are doing extremely well.
Sustainability: The Next Generation
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By Len Lewis
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“Younger consumers are willing to be brand loyal,” he says. “But they want to have coffee from a company that treats its workers and the forest fairly. This makes them want to do business with you. But they will decide whether to buy a $4.50 Caramel Macchiato, or a $1.89 brew and they may not go up the price scale.”
The definition of sustainability also comes into play.
“Baby boomers and younger generations look at it differently,” he claims. “Baby boomers look for products they know from a company or retailer they’ve had a relationship with for a long time.
“They believe that a price premium means something good is happening – either restoring a community somewhere in the world or supporting a local farmer. And they look for third party trusted logos like the Good Housekeeping Seal of Approval or AAA hotel ratings – which started out years ago as something special.”
The same is true of the 900 or so eco labels (on ethical food production) now floating around
the marketplace for use by CPG companies.
“In the consumer’s mind many of them are interchangeable,” said Wasserman.
For the younger generation, the concepts of sustainability and healthy food go hand-in-hand.
“It’s a single concept,” Wasserman says. “They want to make a purchase that reflects their values. Their values include foods that are good for them and their families – especially mothers with babies.
“They expect you to be doing things right all the time. If a company says it’s trying to be a good corporate citizen, but people find out they have an issue in their supply chain, millions of dollars are put at risk and is reflected in a company’s stock price. This then turns into higher costs, like the higher costs of borrowing,” said Wasserman, noting that this is something every company wants to avoid.
There are a couple of strategies that retailers can consider.
“One thing is to design the shopping experience so it builds trust with consumers,” Wasserman recommends. “They are willing to pay a lot for you to simplify or edit things down to just a handful of great choices.”
The overwhelming confusion about what to buy, coupled with performance anxiety of what to cook at home, are the reasons that “restaurant-style” food is the fastest growing category in grocery and why restaurants have taken an increasingly larger share of the consumer dollar, he says.
“Consumers want you to make choices for them,” Wasserman believes. “So you can charge more and get their loyalty by not leaving it up to them to find sustainability in your aisles. Make sure the choices in your aisles are great ones for them.”
Asked if this means cutting back on assortment, Wasserman replied, “I think a winning strategy in reaching younger consumers says fewer choices are better. That doesn’t play to older consumers. So you have to pick where you want to go.”
Developing and partnering with educated consumers is the key.
“Things like Tesco’s Traffic Light food labeling system is a great example of how to make people feel comfortable with food choices,” he explains. “We know people don’t evaluate every item they purchase every time they go in a store. If another retailer is providing a better partnership, the cost of regaining that customer will be a lot more. The mood among consumers is going from questioning what they should buy once they’re in the store, to whether the grocer is helping them make better choices.”
Quite often, these choices are heavily influenced by outside groups like social networks.
“People are looking for help in making a decision based on their values around health, the environment and the social impact of their choice,” he says. “If they are not getting it in retail, they will look elsewhere. They are no longer looking at CPG companies and their public relations agencies for that information.”
In addition, Wasserman says, there aren’t any dominant sites. These apps are usually developed independently by non-profits, entrepreneurs or “crowdsources” that have a point of view.
S U S TA I N A b I L I T y | Arlin Wasserman
Continued from “Sustainability: The Next Generation”
They want to make a purchase that reflects their values.
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“This is a Silicon Valley venture capital play,” Wasserman notes. “I’ve heard that there are now more than 3,000 healthy supermarket item finder apps financed by the venture capital community. They may invest in 30 or 40 of them knowing that they only need one with enough users to attract a buyout from Google or Microsoft.”
The question is whether these sites are offering consumers good advice or just a lot of noise.
“They are getting highly uneven advice. That’s a risk and opportunity for retailers,” according to Wasserman. “Your customers are basically spinning the radio dial when it comes to these sites. They might hear Mozart or the Rolling Stones.
“There is a wild west feeling out there and often a total lack of accountability. And you can’t tell the difference between all that advice. But they are getting between you and your customers about what to put on your shelves – unless you do a better job of engaging and guiding them.”
He conceded that this can be difficult for retailers.
“They all have a clear point of view,” Wasserman says. “That’s hard for retailers because they never want to say that one thing on their shelf is better than something else. You need to have a point of view about why people should come to your store. That point of view lies in creating value.”
But retailers should also be aware that everything – including sustainability – comes back to the food.
“It’s about the product, not the packaging or energy efficiency in your store, recycling or waste reduction efforts. It’s about what they are about to eat and feed to their family,” Wasserman says. n
Len Lewis is editorial director of Lewis Communications, Inc., a New York-based editorial planning, research and consulting firm. He is a contributor to several retail publications and trade groups in the u.S. and Europe and has been a speaker and moderator at numerous industry events. He can be reached at [email protected] or via his website www.lenlewiscommunications.com
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Welc
ome
The California Grocers Association membership and staff would like to congratulate Kevin
Davis, Bristol Farms, on being nominated as the 2012-2013 CGA Chairman of the Board.
Kevin succeeds Jonathan Mayes, Safeway Inc., whose term ends in December.
On behalf of the entire Association we say “thank you” Jonathan on a job well done. Your
guidance and leadership this past year was greatly appreciated. The Association looks forward
to working with Kevin Davis this coming year.
Jonathan Mayes Kevin Davis
Changing of the
Guard
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WELCOME
myfood4less.com ranchosanmiguelmarkets.com
incoming CGA Chairman Kevin Davis
and Thank You outgoing CGA Chairman Jonathan Mayes.
A HUGE Thanks TO JONATHAN MAYES,
AND A BIG Welcome TO KEVIN DAVIS.
PLEASE JOIN US IN CONGRATULATING OUTGOING CGA CHAIRMAN OF THE BOARD
JONATHAN MAYES ON A JOB WELL DONE AND WELCOMING INCOMING CHAIR, KEVIN DAVIS.
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Thank you outgoing CGA Chairman,
Jonathan Mayes of Safeway Inc!
Congratulations new CGA Chairman,
Kevin Davis of Bristol Farms!
NORTH STATEGROCERY, INC.
TITLE: COLOR: SIZE: TRIM: CODE: VERSION:CGA Mayes 4 Color Half Page 7" x 4.875" N/A N/A
™
to Outgoing Chairman
AND INCOMING
Of bristol farms
Jonathan Mayes
Kevin DavisOf bristol farms
RAISE OUR GLASSesWE
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California growers and vintners have captured
the world’s attention with wines that raised the
bar on excellence and innovation. Now, they are
setting the environmental gold standard with
SIP—Sustainability in Practice—a third-party
certification program that puts eco-conscious
California producers in the spotlight.
Nearly two decades in the making and launched
in 2008, the SIP seal of excellence appears
on millions of bottles produced by nearly 160
vineyards across the state, reflecting the
industry’s deep commitment to protecting
employees, communities and the environment.
The program was created by a network of
farmers that are devoted to sustainable
agriculture, with input from government agencies
and environmental groups and experts. SIP’s
independent auditors have now inspected
vineyards representing nearly 30,000 acres of
wine grapes from Santa Barbara to the Napa Valley.
“What sets us apart is that the SIP sustainability
model addresses both human and natural
resources,” said Kris Beal, executive director
of the award winning Central Coast Vineyard
Team, the nonprofit group that developed the
program. “This represents a real commitment
to environmental stewardship and equitable
treatment of people who work in the industry.”
In order to display the seal on products, growers
must meet strict eligibility requirements related
to soil, water and energy conservation as well as
pest management and human resources.
Today’s consumers demand more than ever
before. Quality is a given but they also want to
be sure that growers and vintners whose product
they choose are preserving and protecting the
natural environment now and for the future.
Visit www.sipcertified.org for more details about
this important program. n
BEvERAG
ES SPOTLIG
HT
SIP is Setting The Gold Standard
Visit our website for a tasting map of certifed sustainably farmed vineyards and wines.
sipthegoodlife
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Many users of social media websites such as
Facebook and Twitter have come to learn that
incautious use of these websites can cause
personal embarrassment and even repercussions
at work. However, social media can create pitfalls
for the incautious employer as well.
Some employers perform “background checks” on
prospective employees by reviewing their social
media pages. In response, many social media
users place most of the content on their social
media pages in private areas that may only be
accessed by themselves or those to whom they
have granted access (such as Facebook “friends”).
In order to get around these protections some
employers have required applicants to disclose their
passwords or “friend” a human resources official so
the employer can search these private areas.
Although it is unclear how widespread these
practices are, they have created something of
an uproar and legislatures at both the state
and federal level are stepping in to curb them.
In May, Maryland became the first state to ban
the practice and others, including California,
are expected to pass similar legislation. There
are also efforts underway in the U.S. Congress
to ban employers from demanding social media
passwords nationally.
While it seems that it may soon be forbidden for
employers to demand access to private social
media accounts, there are also reasons why even
searching publicly available information on the
internet may be risky.
An employer who consults a social media
page or the results of an internet search may
inadvertently discover information about protected
characteristics such as the applicant’s race,
national origin, age, religion, or marital status. This
could open an employer to a charge that it based
a hiring decision on protected characteristics that
it discovered during its online search.
Labor Law ImplicationsAs an increasing number of people flock to social
media sites, many employers have developed
policies governing their employee’s conduct on
such sites. Some of these employers have sought
to restrict employee statements on social media
sites that are critical of the employer and have
disciplined employees who make such statements.
There are risks, however, with attempting to
regulate employee conduct on social media sites.
To take one example, state and federal laws
protect employees from retaliation for opposing
discriminatory conduct by their employers –
opposition which may very well occur online.
Additionally, under California law, employers may
not prevent employees from discussing their
wages and may not discipline employees for
lawful conduct away from work.
One agency that has been particularly active of
late in this area is the National Labor Relations
Board, the federal agency that enforces the
National Labor Relations Act.
In 2010, the NLRB brought a complaint against an
employer for disciplining an employee who posted
complaints about her supervisor on a social media
site, reasoning that the conduct was “protected
concerted activity” protected by the NLRA. More
recently, the NLRB issued a report on retaliation
against employees for activities on social media.
In the report, it concluded that policies
prohibiting employees from posting “disparaging”
or “defamatory” comments about the employer,
prohibiting “inappropriate conversation” by
employees or requiring that employees bring
“work-related” concerns to the employer before
posting them on social media violate the NLRA.
The lesson here is employers must exercise
caution when using the internet to learn about
employees and applicants or when regulating
what employees may do online. n
uSING THE INTERNET AS A BACKGROuND CHECKING TOOL, AND ATTEMPTING TO RESTRICT WHAT
EMPLOyEES MAy SAy ON SOCIAL MEDIA SITES MAy TRIGGER RETALIATION AND OTHER CLAIMS
AGAINST EMPLOyERS.
KN
OW
TH
E LA
W
Background Checks and Social Media
Scott Inciardi is an associate resident in Foley & Lardner LLP’s San Francisco office, practicing labor and
employment law.
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From your friends at
For your dedication & guidance this past year Jonathan Mayes
Outgoing CGA Chairman
Wishing you a successful year Kevin Davis
Incoming CGA Chairman
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Wealth Management | J O H N K E L Ly
Whether your concern is for “plastic or paper,”
shopping cart retrieval, pending legislation, profit
margins or benefits, the ongoing work done by
your Association is invaluable. We have made
some important progress over the last legislative
year. Going forward, there still remains issues to
be addressed.
The prevailing concerns over the balance of the
year center upon:
1. The Governor’s Budget and concessions made
on taxation and pension reform. The public
sector is concerned about the future and rightly
so. This has obvious impacts on the private
sector. How shall we both align our efforts going
forward to put our economy back on track?
“Fair play….foul play…what have we here?”
—Shakespeare
2. What impact will national and foreign economies
have on local and international trade?
“Strong dividend projections show strong
management insights. This applies to domestic
multinational and foreign companies.”
—Jim Lovelace: American Funds
3. What will be the decision on tax extension
and what will the rates be for every aspect
of income and capitalization?
“I love to travel to Washington, D.C. and visit
my money.” —Bob Hope
4. Who will come out ahead in local and
national elections?
“It makes your hair stand on end!”
—Shakespeare
All these issues matter and your efforts to clarify
and lobby for your positions are important. CGA
plays a vital role in that effort.
On a personal level, I have enjoyed Jeff Foxworthy’s
perspective on retirement planning. In short,
he offers, “you might have a problem with your
retirement plan if:”
1. Your retirement plan sponsor is on TV and
it’s not for a commercial or interview.
2. You haven’t reviewed your retirement plan
with your provider over the last year.
3. Your plan has no financial advisor: your
financial advisor is missing in action.
4. Your plan participants aren’t getting any
education or investment updates.
5. You haven’t reviewed your plans terms or fees;
failing to follow through on the ‘small stuff’.
As a plan sponsor or participant you will be
impacted by new legislation which requires
transparency and fiduciary responsibility.
Many plans have already addressed this issue.
This should have a positive effect on your plan
participation and on your net returns. As with
any transaction it is vital to have the necessary
information for making a decision.
“The only thing money gives you is the freedom
to not worry about money!” —Johnny Carson
Again, the biggest waste of time is “hoping”
things will be different. You are better served by
looking to the facts, planning and adjusting for
the goals you have set. Hope is not an investment
strategy. Do your homework now so your future
can be positive.
Work closely with your friends at CGA. They have
a history of getting things done the right way. n
John B. Kelly, MPA, CFP is ‘The Investor’s Caddie’ and a registered investment advisor engaged with families, businesses and associations to manage their reserves using values Based Financial Planning: Creating Inspiring Financial Strategies. Receive his complimentary publication by contacting him at [email protected] or 916-296-9019.
There has not been a more important time to be a member of the California Grocers Association.
Hope Is Not An Investment Strategy
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California’sBeer Distributors
Delivering Choice and Value to
California’s Grocers
in a Regulated System that Works!
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AD
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Page Company Phone Fax Email Website63 AlEn USA 209-740-7071 360-844-5260 [email protected] www.alenamericas.com
16 Anheuser-Busch InBev 909-597-0460 909-597-0460 [email protected] www.anheuser-busch.com
61 Bimbo Bakeries USA 714-459-4772 714-441-3435 [email protected] www.bimbobakeriesusa.com
85 Bristol Farms 310-233-4700 310-233-4701 www.bristolfarms.com
57 C & H Sugar Company/Domino Foods, Inc. 510-787-4416 510-787-4205 [email protected] www.chsugar.com
56 C&S Wholesale Grocers, Inc. 916-373-4396 916-373-4296 [email protected] www.cswg.com
IFC,1 California Beef Council 916-925-2333 916-925-8155 [email protected] www.calbeef.org
87 California Beer & Beverage Distributors 916-441-5402 916-441-0713 www.cbbd.com
3 California Lottery 800-LOTTERY 916-323-2727 www.calottery.com
2 California Shopping Cart Retrieval Corp. 818-563-3070/ 818-563-3041 www.cscrc.net 800-252-4613
59 Canada Beef 866-538-2333 403-275-9288 [email protected] www.canadabeef.ca
37 Cash Register Services, Inc. 800-657-7108 806-792-0710 [email protected] www.solutionsgrocerstrust.com
21,BC Coca-Cola Refreshments 213-746-5555 213-744-8765 [email protected] www.cokecce.com
57 Day-Lee Foods, Inc. 562-802-6800 562-926-8630 [email protected] www.crazycuizine.com
66 Ferrero USA 503-524-9327 732-584-4836 [email protected] www.ferrerousa.com
87 F. Gavina & Sons 323-582-0671 323-581-1127 [email protected] www.gavina.com
59 Flowers Baking Company of California LLC 562-445-2467 909-606-4687 Bruce.wyatt@fl ocorp.com www.fl owersfoods.com
80 Food 4 Less (Stockton)/Rancho San Miguel Markets 209-957-4917 209-956-8550 www.food-4-less.com
67 Fresh & Easy Neighborhood Market Inc. 310-341-1200 310-341-1501 www.freshandeasy.com
24 Fresh Dairy Direct – Southern California 626-964-6401 626-913-9062 [email protected] www.deanfoods.com
82,87 Gelson’s Markets 818-906-5709 818-990-7877 www.gelsons.com
32 Hillshire Brands Company 480-949-6701 480-948-0755 [email protected] www.hillshirebrands.com
81 Holiday/Sav-Mor Foods 530-347-4621 www.shophqf.com
79 Illuminators 209-254-2200 209-254-2255 [email protected] www.illuminators.org
19 Kellogg Company 269-961-2000 269-961-6286 www.kelloggs.com
47 Kraft Foods Global, Inc. 847-646-2000 847-646-2800 [email protected] www.kraftfoods.com
23 MillerCoors 916-786-2666 916-786-9396 [email protected] www.millercoors.com
55 National Association For The Specialty Food Trade 212-482-6440 212-482-6459 [email protected] www.fancyfoodshows.com
33 Nestle Purina PetCare 800-421-1721 x9/ [email protected] www.purina.com 314-982-2860
75 NexCycle 800-969-2020 408-501-8874 [email protected] www.nexcyclecalifornia.com
25 NuCal Foods 209-254-2200 209-254-2255 www.nucalfoods.com
17 Pacifi c Gas & Electric Company, Time-Varying Pricing 800-468-4743 415-973-4755 [email protected] www.pge.com/TOU
30 PECO Pallet, Inc. 914-376-5444 914-376-7376 [email protected] www.pecopallet.com
6 Pepsi Beverages Company - WBU 925-416-2573 925-416-2600 [email protected] www.pepsi.com
8 Procter & Gamble 925-867-4900 513-277-7964 www.pg.com
51 Prudential Overall Supply 949-250-4855 949-261-1947 [email protected] www.pos-clean.com
82 Raley’s 916-373-3333 916-444-3733 www.raleys.com
85 rePLANET, LLC 951-817-3258 951-520-1701 [email protected] www.replanetusa.com
82 Rio Ranch Markets 951-685-2111 951-685-6835 www.rioranchmarket.com
76 Safeway Inc. 925-467-3000 925-467-3323 www.safeway.com
80 Save Mart Supermarkets 209-577-1600 925-467-3323 www.savemart.com
42 Save-A-Lot Food Stores 314-592-9127 314-592-9513 [email protected] www.save-a-lot.com
62 Sioux Honey Association 510-888-1511 510-727-9992 www.siouxhoney.com
83 SIP Certifi ed Sustainable Wines 805-466-2288 805-466-6692 [email protected] www.sipthegoodlife.org
71 Stater Bros. Markets 909-783-5000 www.staterbros.com
66 Sugar Bowl Bakery 888-688-1380 510-782-2119 [email protected] www.sugarbowlbakery.com
43 Sun Products Corporation 949-733-0263 949-266-8857 [email protected] www.sunproductscorp.com
78 Super A Foods, Inc. 323-869-0600 323-869-0611 www.superafoods.com
49 Supervalu Wholesale 952-932-4373 952-932-4528 www.supervalu.com
29 Tadin Herb & Tea Co. 800-838-2346 323-582-8687 [email protected] www.tadin.com
26 Tony’s Fine Foods 916-374-4000 916-372-0727 kberger@tonysfi nefoods.com www.tonysfi nefoods.com
67 Tyson Fresh Meats, Inc. – Dan Peed 605-235-3215 479-757-6720 [email protected] Open-Prairie.TysonFoods.com
15,IBC Unifi ed Grocers, Inc. 323-264-5200 323-262-0658 customercare@unifi edgrocers.com www.unifi edgrocers.com
35 Unilever 630-955-5425 630-955-5479 [email protected] www.unilever.com
62 Vertis Communications 410-528-9800 410-528-9287 [email protected] www.vertisinc.com| C
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Ph: 800-724-7762 | unifiedgrocers.com
Celebratin
g 90
ye
ars of Growing Independents •
1922 2012
Renaissance means change for the better. The modern retail grocery industry changes constantly and successful stores change with it. Independent grocery retailers use knowledge of their customers to adapt to their buying habits and Unified Grocers enables them to act quickly to change with the times.
Unified Grocers is a proud part ofCalifornia’s Retail Renaissance.
Perpetual Renaissance®
BeefRetail.org
Free Retail Beef ResourcesThe California Beef Council has a variety of FREE retail beef resources to help merchandise your beef case.
Beef Cuts Posters Beef Training Programs
Consumer Beef Brochures Beef Value Cuts Information
Brochure Holders Spanish-Language Beef Resources
Beef & Veal Photography Beef Retail Newsletter
®
®
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®
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California Beef Council4640 Northgate Blvd., Suite 115
Sacramento, CA 95834916.925.BEEF (2333) Phone
916.925.8155 [email protected]
www.CalBeef.org
The California Beef Council’s newsletter provides retailers with new beef research information, beef story messaging, seasonal beef information and much more. To sign-up for the newsletter or to order FREE retail beef resources, contact:
www.CalBeef.org • www.BeefItsWhatsForDinner.comwww.BeefRetail.org • www.ExploreBeef.org
Scan the QR code with your smartphone for beef retail information and to download a retail resources order form.
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2012, ISSUE 5
For the latest industry news visit www.cagrocers.com
PRSRT STDUS Postage PaidPermit No. 1401Sacramento, CA
CALIFORNIA GROCERS ASSOCIATION
In This IssueBUILDING AN INNOVATIVE
ORGANIZATION
HELPING CUSTOMERS EAT HEALTHY
SUSTAINABILITY: THE
NEXT GENERATION
MILLENNIALS: WHO ARE THEY?
SHOPPING IN A NEW ECONOMIC AGE