California Grocer, 2012, Issue 5

CA

LIFO

RN

IA G

RO

CE

RS

AS

SO

CIA

TIO

N

ISS

UE

5

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

®

®

®

® ®

®

®

®

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






®

®

®

® ®

®

®

®




www.CalBeef.org




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.

1020 North Lake St., Burbank, CA 91502

www.cartretrieval.net

iPhone CART REPORTING

“WE HAVE AN APP FOR THAT”

CARTSNAP

FOLLOW US ON SOCIAL MEDIA

www.cartretrieval.net

Keep it fun. Play responsibly. Must be 18 or older to play. Problem Gambling Help Line: 1-800-GAMBLER. ©2012 California Lottery® 09/12

Grocers’ Winning HandNothing works harder for your store than California Lottery® products.

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

| C

ALI

FORN

IA G

ROC

ER

4

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

72

38

64

52

44


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]

CA

LIFORN

IA G

ROC

ER |

5

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


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.◆


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


CA

LIFORN

IA G

ROC

ER |

7

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.

CA

LIFORN

IA G

ROC

ER |

9

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

CG

A ED

uC

ATIO

NA

L FOu

ND

ATIO

NC

ALIFO

RNIA

GRO

CER |

11

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.

| C

ALI

FORN

IA G

ROC

ER

12

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

CA

LIFORN

IA G

ROC

ER |

13

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

FRESH

MA

RK

ET N

EW

S

| C

ALI

FORN

IA G

ROC

ER

14


Celebratin

g 90

ye


1922 2012

Unified Grocers’ member retailers are as diverse as the communities they serve. There are regional chains, single store operators, upscale urban stores and multi-ethnic grocers supporting rapidly changing communities. All of them have unparalleled familiarity with the customers they serve and the versatility to serve them well. They are all very different, but they have one thing in common.

They are Unified.

Uncommon Diversity

Market of Choice Super A Foods

Gelson’s Markets Evergreen Market

HERE’S TO ALL YOU NFL FANS.

FOR WATCHING EVERY GAME

IN YOUR LUCKY SEATS.

FOR NEVER WASHING YOUR

LUCKY JERSEYS,

AND FOR PUTTING UP WITH

THE SMELL OF THOSE JERSEYS.

HERE’S TO ALL THE FANS

AND ALL THEY DO.

YEAR OF THENFL FAN

ENJOY RESPONSIBLY©2012 Anheuser-Busch, Bud Light® Beer, St. Louis, MOENJOY RESPONSIBLYENJOY RESPONSIBLY

facebook.com/BudLight

Brand: Bud Light NFL Item #: PBL20125476Order #:244278

Trim: 8.5x11”Bleed: 8.75x11.25”Live: 7.375x10”

Closing Date: 9/14/12QC: CSPublication: California Grocer

to save?are you prepared

pG&e has tools to help your businessIn November, many small and medium businesses are transitioning to time-of-use rates. Pacific Gas and Electric Company wants to help you prepare.

With time-of-use rates, when you use energy will be just as important as how much you use.

PG&E has a number of no-cost, easy-to-use tools that will make it easier than ever to manage your business’ energy use.

busine s s tool s

the Money-back tool

Find rebates and incentives that fit your business’ energy needs.

My Energy rate analysisTake a closer look at your business’ energy use and rate options.

smartenergy analyzer™ Get personalized results for your business and identify cost-saving opportunities.

visit www.pge.com/tou to try these tools for yourself and discover other ways to save. or call us at 1.800.468.4743.

“PG

&E”

refe

rs to

Pac

ific

Gas

and

Ele

ctri

c C

ompa

ny, a

sub

sidi

ary

of P

G&

E C

orpo

ratio

n. ©

2012

Pac

ific

Gas

and

Ele

ctri

c C

ompa

ny. A

ll ri

ghts

rese

rved

.

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

[email protected]

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

[email protected]

www.sheltercovegeneralstore.com

Early On, Inc1192 Vanderbilt Cir

Manteca, CA 95337-6121

Phone: (877) 528-2229

Fax: (209) 825-5414

Contact: Dave Douglas

[email protected]

www.earlyon.com

Flowers Baking of California10625 Poplar Ave

Fontana, CA 92337-7335

Phone: (909) 350-3328

Contact: Thomas Wilson

[email protected]

www.flowersfoods.com

McNairn Packaging, Inc. 6 Elise St

Westfield, MA 01085-1414

Phone: (413) 568-1989

Fax: (413) 562-1903

Contact: Karl Unger

[email protected]

www.mcnairnpackaging.com

Colonial Life41960 Avenida De Anita

Temecula, CA 92592

Phone: (760) 285-1144

Fax: (951) 308-2421

Contact: Steven Russell

[email protected]

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

[email protected]

www.teaofakind.com

| C

ALI

FORN

IA G

ROC

ER

18

®, ™, © 2012 Kellogg NA Co.

Kellogg.What cereal sales wake up to.

It starts with an eye-opening lineup of some of America’s

favorite cereal brands. It builds with the category’s

newest best sellers, latest consumer-driven insights and

business-building promotions. It’s everything you need

to make center store sales really sing.

Learn more about the connection between breakfast, nutrition and health. Go to centerstoregrowth.com/goodmornings

GO

vER

NM

ENT

RELA

TIO

NS

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

| C

ALI

FORN

IA G

ROC

ER

20

©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”

| C

ALI

FORN

IA G

ROC

ER

22

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

CA

LIFORN

IA G

ROC

ER |

27


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”

| C

ALI

FORN

IA G

ROC

ER

28

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.


Tadin, one of the leading Herbal Tea companies in California.

Preferred by Hispanic consumers for Over 30 years.

Naturally good for your business.

Contact us for more information:1-800-Te-Tadin

C

M

Y

CM

MY

CY

CMY

K

CGA_Ad_TADIN_NEC.pdf 1 9/10/2012 2:53:56 PM

C

M

Y

CM

MY

CY

CMY

K

CGA_Ad_TADIN_NECB.pdf 1 9/10/2012 3:13:28 PM

CA

LIFORN

IA G

ROC

ER |

29

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

CA

LIFORN

IA G

ROC

ER |

31

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

Today, we’re refocused – building on the legacy of Sara Lee. We’re opening the doors to the best meat-centric

solutions with a commitment to wellness, nutrition and social responsibility. Welcome to the evolution of

insights and innovation. Welcome to Hillshire Brands.

IT’S A BRAND NEW DAWN

©2012 � e Hillshire Brands Company

40313_1_HB_Multi_TradeAd_QrtrPg_FNL.indd 1 9/12/12 3:03 PM

| C

ALI

FORN

IA G

ROC

ER

32

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

| C

ALI

FORN

IA G

ROC

ER

34

©2012 Unilever

It’s Time...to drive sustainable sales.

*http://www.environmentalleader.com/2009/02/05/82-percent-of-consumers-buy-green-despite-economy

**http://inside.unilever.com/global/unileverbrand/Pages/Customer%20Opportunities.aspx

**http://inside.unilever.com/newscentre/articles/Pages/Wateranassetmorepreciousthangold.aspx

“ People always think that to do the right thing costsyou more. That is not true at all. It can actuallyignite innovation and lower your costs.” — Paul Polman, Unilever CEO

With 82% of consumers currently buying green*, there is a clear opportunity to grow profi ts while reducing

environmental impact.

As one of the industry leaders in innovative sustainability practices, we know there is nothing more

compelling to shoppers than saving on their favorite brands while helping save the planet. From greener

kitchens to water conservation, our earth-friendly programs have increased sales by more than 25%,**

so we have the expertise to make sustainable programs a success for your store.

Let’s work together to make a world of difference.

More green choices for consumers. More green for your registers.

To learn more, visit www.sustainable-living.unilever.com

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

N R

EPO

RT

Jennifer Hatcher Senior vice President,

Government and Public Affairs, Food Marketing Institute

| C

ALI

FORN

IA G

ROC

ER

36

What you have is good,

we can makeit better.

www.SolutionsGrocersTrust.com

Let us supplement your internal service and support infrastructure. While we can certainly provide your company with a complete, outsourced point-of-sale solution, many of our customers partner with us to supplement their current infrastructure. Large-scale rollouts? Budget concerns for staffing? Our dedicated team offers solutions for all hardware platforms and support for advanced point-of-sale software, project management and implementation, training and much more.

With CRS, you can:

Alleviate budget and staffing concerns

Take advantage of faster project completion

Focus on grocery while we focus on your point-of-sale solution

Leverage our staff of 120 certified technicians, trainers and project specialists when it’s time to expand

Find out how we’ve saved time, trouble and money for over 1900 regional chains and independent grocery stores across the nation. Contact us today.

800.657.7108

Pat Huston [email protected]

| C

ALI

FORN

IA G

ROC

ER

38

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

LIFORN

IA G

ROC

ER |

39

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.”

| C

ALI

FORN

IA G

ROC

ER

40

“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

CA

LIFORN

IA G

ROC

ER |

41

$200,000

or morein financial

incentives

“Join Save-A-Lot and receive $200,000 or more in financial incentives for each new store developed.”

If you have a proven track record of successful experience in grocery or other retail industry management, Save-A-Lot would like to talk to you about becoming a licensed store owner.

Here’s how you can take the next step toward a rewarding entrepreneurial opportunity as a Save-A-Lot licensee:

Email: Ms. Kristen Gray,

Save-A-Lot Licensed Development Coordinator:

[email protected] or call

314.592.9350

For more detailed information about becoming a

Save-A-Lot owner visit: www.savealot.com/own

SAVE-A-LOT BUSINESS MODEL

• Everyday low prices

•Exclusive private label brands

•Purchasing power of over 1,300 stores

•Fewer than 2,000 SKUs per store

•Low operating costs

SAVE-A-LOT SUPPORT ADVANTAGE• Site development assistance

• Manager and associate training programs

• Advertising, public relations and information technology programs

• Store execution support

• Integrated distribution system

BECOME A OWNER

TOP GROCERS IN U.S. UNDER SINGLE BANNER

Source: Nielson’s Trade Dimension May 2012

0

500

1000

1500

2000

2500

30003048

1179 1115 11151048

3500

905

1334

| C

ALI

FORN

IA G

ROC

ER

44

“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

CA

LIFORN

IA G

ROC

ER |

45

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

| C

ALI

FORN

IA G

ROC

ER

46

EMPHASIZING Big Platforms for big category growth.+ DELIVERING sampling

and trial-building vehicles.+ + APPLYING best practice research and tools for growth.

FOCUSING on Year 1 launch A&C spending.+

SOLID PLATFORMS FOR SOLID GROWTH.Fewer. Bigger. Better. This is our innovative strategy to optimize growth for 2012. This holistic go-to-market approach means creating not just new products, but new categories and platforms as a pipeline for growth; allowing us to anticipate and meet consumer needs.

©2012 Kraft Foods BIGBETS

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 on p.50


| C

ALI

FORN

IA G

ROC

ER

48

For more information please contactEd Rawson, VP of Sales and Market Development Supervalu Western RegionDirect: 714-990-8350 or email: [email protected]

Expanding 140 years of service to independent retailersby bringing the lowest cost of goods to the west.

E di 140 f i t i d d t t il

Western Region

• World-Class Logistics • Lowest Cost of Goods • Innovative Private Brands

• Comprehensive Professional Services • Dedicated Store Support Staff • Increased Retailer Cash Flow

The Recognized Industry Leader in Wholesale

g g g

Tacoma

Portland

Boise

Salt Lake City

BismarckBillingsFargo

Minneapolis

Pleasant Prairie

Milton

Champaign

Indianola Anniston

Quincy

Pittsburgh

Wells

Methuen

Lancaster

Mechanicsville

Melrose Park

Brea

Irvine

SUPERVALU distribution centers servicing over 2200 successfulindependent retailers

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



| C

ALI

FORN

IA G

ROC

ER

50

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.

| C

ALI

FORN

IA G

ROC

ER

52

By Len Lewis

CA

LIFORN

IA G

ROC

ER |

53

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

| C

ALI

FORN

IA G

ROC

ER

54

The place to make connections, discover new products and identify the hottest trends.

“We want to see the trends,

what’s out there in the market and

discover new items and possibly be the first to market with them.”

Deborah Shapiro, Winn Dixie

• Discover 80,000 specialty foods & beverages to source and sample

• Uncover 1000’s of the industry’s newest products

• Buildnewrelationshipswith1,300 exhibitors from 35+ countries and regions

• FREE “match-making” programforRetailers—meetone-on-onewithproducersinourexclusiveBusiness Builders Program.

Register today at fancyfoodshows.com(Please enter priority code WAD5)

For More Information Contact: E r i c P e a r l m a n , D i r e c t o r , I n d e p e n d e n t S a l e s W / C ( 9 1 6 ) 3 7 3 - 4 2 8 6

Wholesale GrocersS e l e c t t h e B e s t

s i n c e 1 9 1 8

C&S offers experienced Account Managers,a simple, clear Sell Plan, that is focused on

growing your sales and bottom-line, withsuperior service and the lowest cost of goods.

V o l u n t a r y A d G r o u p s

S i m p l e I n v o i c i n g

C a t e g o r y M a n a g e m e n t

N o E q u i t y I n v e s t m e n t

R e t a i l T e c h n o l o g y

E x p e r i e n c e d A c c o u n t M a n a g e r s

S i m p l e S e l l P l a n

T h e a b i l i t y t o t h i n k , u n d e r s t a n d , o r d e f i n ec l e a r l y i n t h o u g h t a n d p r o d u c t i v i t y

CLARITY.. .

©2012 Domino Foods, Inc.

THANK YOU…Jonathan Mayes of Safeway Inc. for your service this past yearas Chairman of the Board of California Grocers Association.

CONGRATULATIONS…Kevin Davis of Bristol Farms; we’re sure you’re up to the challengeas the new Chairman of the Board of California Grocers Association.

988-CA GrocerAd-Final 9/14/12 4:18 PM Page 1

CA

LIFORN

IA G

ROC

ER |

57

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



| C

ALI

FORN

IA G

ROC

ER

58

GREAT CANADIAN BEEF DOESN’T START ON THE PLATE. IT STARTS WITH THE PLACE.

Contact us today to discuss business development opportunities

and how California’s Grocers can build sales with Canadian beef.

www.canadabeef.ca 1.866.538.2333

A place where the air, water, and land are all in balance. A cool climate perfectly suited to raising beef of outstanding texture and tenderness. Abundant grasslands and grain. Exacting standards from pasture to packing. Unequalled stewardship and support.

Canada Beef Advantage

• Canada’s A, AA, AAA and Prime grades are your assurance of the highest quality beef. These standards are assigned by the Canadian Beef Grading Agency and meet or exceed USDA grading standards.

• Grain-fi nished beef from world renowned cattle genetics provide an outstanding eating experience, making Canada the preferred supplier of grain-fed beef to the U.S.

• Food safety from pasture to California’s retailers is our most important priority with systems for beef production based on the internationally recognized HACCP model and approved by the USDA.

• Market development programs to help you promote and maximize the value of Canadian beef.

CANADA UNITED STATES

Abundant

Moderately Abundant

Slightly Abundant

Moderate

Modest

Small

Slight

Trace

Practically DevoidCanada A

Marbling Score

Canada Prime

Canada AAA

Canada AA

USDA Prime

USDA Choice

USDA Select

USDA Standard

CA

LIFORN

IA G

ROC

ER |

59

“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



Whether millennials will focus on stores that promote issues like sustainability is still open to debate, according to Delin.

| C

ALI

FORN

IA G

ROC

ER

60

BimboBakeriesUSA.com

Bimbo Bakeries USA thanks Jonathan Mayes, outgoing CGA Chairman of the

Board, and welcomes Kevin Davis, the incoming Chairman of the Board.

vertisinc.com 800.577.8371

Today’s on-the-go consumer isan elusive target that requiresa diverse marketing approach.Vertis is your single source formaking those connections. Ourknowledge experts will work with you to develop an integrated marketing plan, implement the

processes, then make it happen - from direct mail, inserts, and POP to mobile, email, pURL’s and other interactive marketing solutions.

A MULTI-FACETED MARKETING PLAN REQUIRES A

Multi-Faceted Partner.

Your customers are demanding

100% all-natural USA honey.

Product of USA

suebee.com

• Sue Bee Honey is guaranteed to be 100% USA-produced.

• Sue Bee Honey prides itself on consistent taste and flavor.

• Sue Bee Honey is supplied by and supports American beekeepers and their families.

• Some honey brands may blend their honey with foreign honey from unknown sources. Sue Bee does not.

• Sue Bee Honey has built a solid reputation by producing premium honey for generations.

You Need to Demand Sue Bee.

Booth #120| C

ALI

FORN

IA G

ROC

ER

62

Stain

Cleans

Broom, Scrub, Mop,Clean,Floor,Dirt,Stain,Remover,Soap

,Scum,Deodorizer,Clean,K i t c h e n , B a t h r o o m ,T o i l e t s

ScrubClean

Stain

Wash

Dirt Whitening

Deodorizes

Wash

Wash

Laundry

Broom, Scrub, Mop,Clean,Floor,Dirt,Stain,Remover,Soap

,Scum,Deodorizer,Clean,K i t c h e n , B a t h r o o m ,T o i l e t s

AlEn USA, LP9326 Baythorne DriveHouston, Texas 77041 USA

www.alenusa.comPh.1-800-615-3191

Turning chores into solutions

| C

ALI

FORN

IA G

ROC

ER

64

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

CA

LIFORN

IA G

ROC

ER |

65

© Ferrero

Come see us at Booth #204

A tasty, unique hazelnut spread made with roasted hazelnuts, skim

milk and a hint of cocoa.

Discover an entertaining freshness.

Expertly crafted to deliver a satisfyingly indulgent experience.

FUS-1038 FerreroCGA Ad.indd 1 9/12/12 4:03 PM

| C

ALI

FORN

IA G

ROC

ER

66

© 2012 Tyson Foods, Inc. Trademarks and registered trademarks are owned by Tyson Foods, Inc. or its subsidiaries.

Open Prairie Natural Angus® beef We produce wholesome, tender beef the natural way

When you see the beautiful Northwest pastures where Open Prairie Natural Angus beef is raised, you immediately understand why our beef is always 100% natural, with no added hormones or antibiotics. Our cattle are fed a 100% vegetarian diet, with no animal by-products, by committed ranchers who strive to protect our natural resources.

Open Prairie Natural Angus beef. When we say natural, we mean it.For more information about adding this brand to your meat case, visit: Open-Prairie.TysonFoods.com or contact your Tyson Fresh Meats sales representative.

TES-66640_CGA_1

9-19-2012 11:50 AM mike.andrus / lyn.toma

Client: fresh&easySAP Job #: 10066640SAP Job Name: CGA AdHeadline: NonePage Spread Ad: PageColor: 4CBleed: NoneTrim: 7.375” x 4.875”Live: NoneGutter: NonePubs: California Grocers AssociationInsertion Date: NoneClose Date: NoneImage #’s: TES-09-0100Usage Terms: unlimitedCreative: Lizz TAcct. Services: Mark YProject Manager: YuliePrint Producer: SweeneyArt Buyer: NoneNotes: None

JOB INFO APPROVALSFontsDefused OT (Regular), Geomet-ric 415 BT (Medium), Helvetica (Medium)

ImagesTES-09-0100-M.psd (CMYK; 217 ppi; 114.74%), TES-09-0084-L.psd (CMYK; 509 ppi; 58.85%), FE_4c_logo_Dk_with_tag.eps (39.76%)

Fonts & Images

Saved at 100%from LANDEU-DMX3673k by Printed At

Initials As Is W/Chngs

Inks Cyan, Magenta, Yellow, Black

PR

INT A

D

Studio Artist:

Studio Supervisor:

Project Manager:

Production Manager:

Proofreader:

Art Director:

Copywriter:

Creative Director:

Account Service:

Product Info.:

Thank you, outgoing Chairman Jonathan Mayes, and congrats to incoming Chairman Kevin Davis!

From all of your friends at fresh&easy. freshandeasy.com

©2011 Fresh & Easy Neighborhood Market Inc.

S:7.375”

S:4.875”

T:7.375”

T:4.875”

B:7.375”

B:4.875”

CA

LIFORN

IA G

ROC

ER |

67

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

| C

ALI

FORN

IA G

ROC

ER

68

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.

CA

LIFORN

IA G

ROC

ER |

69

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!

| C

ALI

FORN

IA G

ROC

ER

70

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

| C

ALI

FORN

IA G

ROC

ER

72

By Len Lewis

CA

LIFORN

IA G

ROC

ER |

73

“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.

| C

ALI

FORN

IA G

ROC

ER

74

“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

S U S TA I N A b I L I T y | and consumers

Beverage Container Redemption Services Tailored to California Grocers

State Certified Staffed Operations!

Smallest Operational Footprint in the Industry!

Automated Operations Platform with Services Packages!

Complete Consulting & Program Monitoring Services!

CGA Member…….26 Years in the industry!

www.nexcyclecalifornia.comwww.nexcyclecalifornia.com

800800--969969--20202020

Beverage Container Redemption Services Tailored to California Grocers

State Certified Staffed Operations!

Smallest Operational Footprint in the Industry!

Automated Operations Platform with Services Packages!

Complete Consulting & Program Monitoring Services!

CGA Member…….26 Years in the industry!

www.nexcyclecalifornia.comwww.nexcyclecalifornia.com

800800--969969--20202020

CA

LIFORN

IA G

ROC

ER |

75

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

CA

LIFORN

IA G

ROC

ER |

77

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.

| C

ALI

FORN

IA G

ROC

ER

80

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

| C

ALI

FORN

IA G

ROC

ER

82

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

CA

LIFORN

IA G

ROC

ER |

83

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.

| C

ALI

FORN

IA G

ROC

ER

84

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

CA

LIFORN

IA G

ROC

ER |

85

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

| C

ALI

FORN

IA G

ROC

ER

86

TITLE: COLOR: SIZE: TRIM: CODE: VERSION:CGA Mayes 4 Color Half Page 7" x 4.875" N/A N/A

California’sBeer Distributors

Delivering Choice and Value to

California’s Grocers

in a Regulated System that Works!

CA

LIFORN

IA G

ROC

ER |

87

AD

VER

TISE

R IN

DEX

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

ALI

FORN

IA G

ROC

ER

88


Celebratin

g 90

ye


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






®

®

®

® ®

®

®

®




www.CalBeef.org




CA

LIFO

RN

IA G

RO

CE

RS

AS

SO

CIA

TIO

N

ISS

UE

5

2012, ISSUE 5

For the latest industry news visit www.cagrocers.com

PRSRT STDUS Postage PaidPermit No. 1401Sacramento, CA


In This IssueBUILDING AN INNOVATIVE

ORGANIZATION

HELPING CUSTOMERS EAT HEALTHY

SUSTAINABILITY: THE

NEXT GENERATION

MILLENNIALS: WHO ARE THEY?

SHOPPING IN A NEW ECONOMIC AGE

Documents

California Grocer, 2012, Issue 5