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California Grocer, 2013, Issue 2
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2013, ISSUE 2
For the latest industry news visit www.cagrocers.com
CALIFORNIA GROCERS ASSOCIATION
IN THIS ISSUE
Unified’s Guiding Force Retires
Changing of the Guard
The Clock is Ticking
Meet Ed Hepler: Illuminator Headlite
CGA Advocacy:
MAKING STRIDES
W W W . C G A S T R AT E G I C C O N F E R E N C E . C O M
September 29 – October 1, 2013 | Palm Springs Convention Center | Palm Springs, California
Robust demographic movements, rapid technology innovations and fragmented shopping options are rewriting the rules of the game. Baby Boomers continue to influence strategies, however the new consumers, Millennials, are dictating different moves for players that want to win.
Constantly conversational, loyally agile and lifestyle conscious, this new breed of grocery shoppers requires game changing approaches that are personal, purposeful, transparent and uniquely relevant.
Plot your next move. Join grocery retailers from throughout California and discover how to capture this new consumer through breakout strategies and collaborative partnerships that will drive sales growth, add significant value to your business and ultimately reshape the competitive landscape of the grocery industry.
Conference Schedule Overview
SUNDAY, SEPTEMBER 29
F Illuminators Golf TournamentF Pre-conference General SessionF Opening Reception sponsored by
Kraft Foods and E&J Gallo WineryF After-hours Social Event
MONDAY, SEPTEMBER 30
F Collaborative Share Group DiscussionsF Opening Remarks and General SessionF Pre-scheduled Business MeetingsF Reception & Illuminators Special Event
TUESDAY, OCTOBER 1
F Multiple Educational Sessions & Retailer Spotlight
F Pre-scheduled Business MeetingsF Luncheon Keynote AddressF Meet with California’s Top Retailers
California’s competitive grocery marketplace is experiencing evolutionary changes that are transforming the way the retailing game is played.
For complete sponsorship information including a list of participating retailers and the sponsorship prospectus, contact:
Beth Wright Director, Events & Sponsorship California Grocers Association
(916) 448-3545 | (800) 794-3545 [email protected]
“ This conference provides an extremely efficient method for networking with colleagues and service providers. Given the intense level of grocery competition, I wouldn’t miss it.”
Richard Draeger, Draeger’s Supermarkets
Last year’s sponsorship opportunities sold out early so call today to secure your spot now for this year’s conference.
The 2013 CGA Strategic Conference offers a variety of sponsorship packages and new, customized opportunities to promote your company’s products or services. Sponsor benefits range from dedicated use of Business Conference Suites to 10’ x 10’ floor display spaces, or exclusively-presented social events. Whatever your desired outcomes, the 2013 CGA Strategic Conference offers a variety of opportunities to meet your goals and budget.
Many thanks to
The Illuminators for their continued, generous support of the CGA Strategic
Conference by providing the outstanding conference
meal functions and entertaining social events.
Meet with California’s Top RetailersDon’t miss this unique opportunity to meet with California’s top grocery industry decision-makers. All conference sponsors receive customized, pre-scheduled meeting schedules as part of their investment. Whether you represent a new, niche product or an established national supplier, the CGA Strategic Conference provides a highly productive forum to meet one-on-one with buyers from California’s top retail companies.
ENJOY RESPONSIBLY©2013 Anheuser-Busch, Bud Light Lime® Lime-A-Rita and Straw-Ber-Rita Flavored Malt Beverages (Flavored Ale in OR & TX), St. Louis, MO
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Publication: California Grocer
AECD
FEATURESCGA Advocacy: Making Strides Advocacy continues to be the Association’s No. 1 priority and great strides continue to be made by CGA’s government relations team. Yet, there is plenty of work to accomplish. With new challenges this legislative session, member involvement is more important then ever.
Unified’s Guiding Force Retires It‘s an old saw that you’ve heard in different ways 100 times. But if you look up the word “COMMITMENT” in the dictionary you’d find Al Plamann’s picture next to it.
Changing of the Guard There’s an old saying that the more things change, the more they remain the same. That seems to be an apt description for Unified Grocers, Inc., and also its legacy as Bob Ling takes over as President and Chief Executive Officer this May.
The Clock is TickingAs the nation counts down to implementation of a massive healthcare reform package, businesses from agriculture to retailing are more concerned than ever about the cost of the new regulations, the impact on hiring and staffing and its potential to derail an already fragile economy.
Meet Ed Hepler: Illuminator Headlite Ed Hepler is a 32-year veteran of the grocery industry who now adds The Illuminators Headlite feather to his cap. Find out why every grocery supplier should join this important and worthwhile organization.
C O N T E N T S | Issue 2
CALIFORNIA GROCERS ASSOCIATIONPresident/CEO Ronald Fong
Senior Vice President, Government Relations and Public Policy Keri Askew Bailey
Vice President, Communications Dave Heylen
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.© 2013 California Grocers Association
Publisher Ronald Fong E-mail: [email protected]
Editor Dave Heylen E-mail: [email protected]
For advertising information contact: Tony Ortega E-mail: [email protected]
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COLUMNSPresident’s Message It’s All About Relationships .................................. 5
From The Chair I Know It’s Important, But .................................... 7
Viewpoint — Kevin Coupe What Retailers Can Learn From Netflix .............. 10
Foundation News — Shiloh London Recent College Grads Lack Real-World Fundamentals .................................................. 12
Capitol Insider — Louie Brown The Legislature Looking Ahead ......................... 30
Perspective — Chris Micheli Light at the End of the UI Fund Tunnel? ............ 34
DEPARTMENTSCGA News ....................................................... 14
Member Profile: WinCo Foods ........................... 20
Know the Law .................................................. 26
Government Relations ..................................... 28
Washington Report .................................... 38, 40
Sunset Fresh Market News ............................... 82
Wealth Management ........................................85
Advertiser Index .............................................. 88
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C G A | Board of Directors
EXECUTIVE COMMITTEE
CHAIRMAN APPOINTMENTS
DIRECTORS
SUPPLIER EXECUTIVE
COUNCIL
Veronica Rendon, Dave Thatcher Alta Dena Certified Dairy
Rick Van Nieuwburg Altria Corp. Services
Raul Aguilar Anheuser-Busch InBev
Dan Atkins Berkeley Farms, Inc.
Rickey Hamacher Bimbo Bakeries USA
Gilbert de Cardenas, Bob Cashen Cacique USA
Victoria Horton California Beer & Beverage Distributors
Cindy Plummer California Table Grape Commission
Mark Cassanego Carr, McClellan, Ingersoll, Thompson & Horn
Pat Huston, Robert Hilliard Cash Register Services
Damon Franzia Classic Wines of California
Nancy Limon, Dora Wong Coca-Cola Refreshments
Vic Chiono Coca-Cola Refreshments Minute Maid Business Unit
Stephenie Shah Diageo
Andres Jaramillo Don Pedro’s Kitchen
Thomas Wilson Flowers Baking of California
Scott Johnson, Shannon Nadasdy Financial Supermarkets, Inc.
Brian Rosen, Ann Wilson Gleason Inc.
Fernando Gallego Golden Gate Paper Company
John Hewitt Grocery Manufacturers Association.
Mickie Sharp-Villanueva Hansen Beverage Company
Elizabeth Alvarez-Sell, Greg Bailey The Hershey Company
Dennis Belcastro Hillshire Brands Company
Tim Cohen Hidden Villa Ranch
Kristina Crystal-McVay The J.M. Smucker Co.
Dave Jones Kellogg Company
Richard Bell LOC Software
Dave Madden MillerCoors
Steven Schultz Moss Adams LLP
Paul Cooke, Karen Doggendorf Nestle Purina PetCare
Jim Van Gorkom NuCal Foods
Laurie Stone PBI Market Equipment, Inc.
Paul Turcotte Pepsi Beverages Company – WBU
Vince Delgado Procter & Gamble
Melanie Zitting, Sue Sharp Pure Water Technologies
Renee Wasserman Rogers Joseph O’Donnell
Darrell Costello Roplast Industries Inc.
Greg Romero Stericycle ExpertSOLUTIONS
Tom H. Daniel Sterilox Food Safety
Mike Hinson TC Transcontinental Northern California
Phyllis Adkins TruGrocer Federal Credit Union
Vinit Patel Unilever
Dave JonesKellogg Company
Michael ReadWinCo Foods, Inc.
Dora WongCoca-Cola Refreshments
Chairman of the Board Kevin Davis Bristol Farms
First Vice Chair Mary Kasper Fresh & Easy Neighborhood Market Inc.
Second Vice Chair John Quinn Food 4 Less (Stockton) – Times Supermarkets
Treasurer Kevin Konkel Raley’s
Secretary Joe Falvey Unified Grocers, Inc.
Immediate Past Chair Jonathan Mayes Safeway Inc.
Raul Aguilar Anheuser-Busch InBev
Jon Alden Jelly Belly Candy Co.
Renee Amen Super A Foods, Inc.
Teresa Anaya Northgate Gonzalez Markets
Joe Angulo El Super (Bodega Latina Corp.)
Dennis Belcastro Hillshire Brands Company
Paul Cooke Nestle Purina PetCare
Kendra Doyel Ralphs Grocery Company
John Eagan Costco Wholesale
Chuck Eckman Kraft Foods Group, Inc.
Phil Gentile, Jr. K.V. Mart Co.
Jon Giannini Nutricion Fundamental, Inc. Warehouse
Diana Godfrey Smart & Final Stores
Frank Jimenez The Hershey Company
Bill Jordan Whole Foods Market
Eric Lindberg, Jr. Grocery Outlet, Inc.
Dave Madden MillerCoors
Dan Meyer Stater Bros. Markets
Omar Milbis Rio Ranch Markets
Phil Miller C&S Wholesale Grocers
Eric Nadworny Save Mart Supermarkets
Hee-Sook Nelson Gelson’s Markets
John Parke E & J Gallo Winery
Vinit Patel Unilever
Bob Richardson The Clorox Company
Brian Schmidt Acosta Sales & Marketing
Harish Solanki Big Saver Foods, Inc.
Naresh Solanki Bestway/Gardena Supermarkets
Mike Stamper Nestle DSD
Dirk Stump Stump’s Markets
John Swindell Food 4 Less/Foods Co. (A Kroger Company)
Paul Turcotte Pepsi Beverages Company – WBU
Jim Wallace Albertsons/Sav-On Pharmacy
Tammy Wilson Jax Markets
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It’s All About RelationshipsWhat’s great about relationship building is that it can occur at anytime and in anyplace. That time and place is now.
In May, two key California grocery industry
icons, Al Plamann, Unified Grocers, Inc., and
Steve Burd, Safeway Inc., retire after decades
of service to their respective companies and
leave legacies of leadership during some of our
industry’s most tumultuous times.
Both executives leave their companies in
very capable hands. Fortunately, over the
years CGA has nurtured strong relationships
with many associates at both companies
which helps ensure a smooth transition and
continued Association support.
Why do I mention this?
The California Legislature is in full swing and
CGA staff is sifting through hundreds of
introduced bills, closely analyzing each one to
determine its potential impact on your business.
It is a laborious undertaking but critical to the
success of our government relations program.
Yet, effective advocacy requires much more
than scrutinizing bill language and testifying
in committee.
Similar to our industry, it’s also about
relationships. In fact, a meaningful government
relations program cannot succeed with out it.
When I started lobbying in 1996, one of the first
legislators I met and developed a professional
relationship with was a freshman, Senator John
Burton. Years later Senator Burton became the
most powerful and influential leader in the State
Legislature and is now chairman of the California
Democratic Party.
Similarly, when I first met California Senate pro
Tem Darrell Steinberg, he was a city council
member. Over the years we have maintained
our friendship, meeting more so to listen than
to lobby. In both cases, these relationships have
helped CGA’s overall lobbying efforts.
This relationship building has national
implications, too. Over a dozen state legislators
who our lobbying team and I have built
relationships with over the years are now in
Congress. These relationships now continue
under a new capitol dome.
I share this because this month’s issue examines
the Association’s state and local advocacy
efforts. To many the information is foreign and
distant to the day-to-day operations of selling
groceries, and yet what happens in the State
Capitol and in city halls statewide has a dramatic
financial impact on your company.
Our hope is that by understanding how the
system works, our members will be more willing
to develop these same types of relationships
and engage dialogue with their elected officials.
Developing relationships at the local level can
benefit CGA years down the road. Quite often,
state legislators cut their teeth at the local level.
The relationship you develop now may one day
open an important door in the State Capitol.
One of the best ways CGA members can begin
building these critical relationships is to attend
this year’s Grocers Day at the Capitol on April
30 in Sacramento. This is CGA’s one-day lobby
event that allows our members to learn about
key legislation facing our industry and then to
meet with legislative leaders and staff in the
Capitol to discuss the impact of these bills on
our industry, and inevitably their constituents.
Go online at www.cagrocers.com and sign
up today. Help CGA build relationships and
strengthen our advocacy efforts. I look forward
to seeing you in Sacramento! n
P R E S I D E N T ’ S M E S S A G E
RONALD FONG
President/CEO
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Grocers Day at the Capitol
B U I L D I N G R E L AT I O N S H I P S . S T R E N G T H E N I N G F R I E N D S H I P S .
For additional information, contact Dane Hutchings, CGA, at (916) 448-3545. Sponsorship opportunities available. Please visit our website at www.cagrocers.com, or contact Beth Wright (916) 448-3545.
For over a decade, CGA Grocers Day at the Capitol has built bridges between the state’s grocers and policy makers. With significant policy issues as well as specific legislation taking center stage and new faces entering
the state house, participating in this banner event is more important than ever.
TUESDAY, APRIL 30, 2013SACRAMENTO, CA
F R O M T H E C H A I R
I Know It’s Important, But...When people in our industry learn that I am the Chairman of the California Grocers Association, the first comment I get is; “Wow, how can you do that with everything else you have going on?”
KEVIN DAVISCGA Chairman of the Board President and CEO Bristol Farms
This question is usually followed with a comment
like, “I know it’s important and I wish I had the
time to be more involved, but I’m just too busy
with business, etc.”
Invariably, sometime down the road, these
same individuals find themselves faced with
a government affairs situation, a lawsuit, a
licensing roadblock, a recycling issue, a food
safety situation, or a local ordinance, zoning
problem, or political campaign that will impact
their business in an unexpected way.
Typically as a last resort, they call CGA, or one
of our board members, for advice, a referral
to the appropriate staffer, or simply because
after spending tons of money on attorneys and
exhausting all other resources, they have run out
of options.
It occurred to me that there are many people
at all levels throughout California’s food industry
who just don’t understand the underpinnings
of CGA and how this great service and advocacy
organization works year-round to solve industry-
related problems, not only in Sacramento,
but locally, and even on the national level
when appropriate.
Many are unaware of the countless hours CGA
staffers spend behind the scenes to resolve
potentially harmful issues long before they have
the chance to see the light of day. Nor are they
aware of the many after hours events staff
attend cultivating important relationships.
The Association is not a private club, or fraternity
of grocers. It is a very open and far-reaching
advocacy organization whose primary objective
is representing our industry. Whether it’s
responding to media inquiries regarding an
industry-related issue, or representing us as a
united association of companies with a common
position in favor of, or against a certain political
position or new law, the CGA is our voice.
What’s even more important is that due to the
in-house expertise and excellent reputation
CGA Chair Kevin Davis (right) discusses grocery issues with Assemblymember Marc Levine.
Typically as a last resort, they call CGA, or one of our board members, for advice, a referral to the appropriate staffer, or simply because after spending tons of money on attorneys and exhausting all other resources, they have run out of options.
Continued on p. 8
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F R O M T H E C H A I R
CGA’s staff has earned, our voice, through CGA, is
willingly heard by policy makers and regulators for its
balanced, honest and well-thought out perspective on
the issues that face our companies, our customers, and
all Californians.
CGA membership is not an expensive proposition.
Participation in the form of time commitment can be
as little or as much as you or your company can
or want to commit. Membership fees are simply a
necessary form of fundraising to provide high quality
expertise and representation by CGA’s government
relations team where it matters most, in Sacramento,
and at the local level.
Board membership requires a little more participation,
but I find it no more time consuming than trying to
keep up with the hundreds of new laws affecting our
business each year. I would rather spend time having
experts explain the ramifications and options to me
in CGA’s bi-weekly legislative calls, or quarterly Board
Meetings, than trying to decipher them myself.
CGA’s membership dues, the minimal time commitment,
and strategic contacts I have developed over the past
three years through my CGA Board participation have
paid our company back many times over. I view these as
being essential to doing business in California.
Membership dues are essential to funding CGA’s
advocacy agenda. These dues, along with the
Association’s other revenue streams, allow staff to
engage in the critical issues that must be addressed
so that we can effectively operate our businesses.
If you are not yet a CGA member, I encourage you
to become one. If you are a member and have yet to
renew your membership, do so today. Participate in any
way possible to help strengthen our advocacy efforts,
for our employees and customers as we work with
lawmakers toward building our businesses and in turn
strengthening our economy and leading us to a better,
stronger, and healthier California. n
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Products availableat your local retailer
(888) 688 -1380
Continued from p. 7
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Few of “CoupeRules” are engraved into stone,
since circumstances can change and (gasp!) I’ve
been known to be wrong from time to time. But
this one, I think, may have legs:
The businesses with the most actionable
customer data, and then act on that data
most effectively, are most likely to win.
I think there is a lot of evidence to support this.
Take for example, what has been called “the
weaponizing of data,” perhaps best exemplified
by Kroger’s use of dunnhumby to generate
information that allows it to reportedly send out
personalized promotional pieces to 10 million
shoppers on a quarterly/seasonal basis, and get a
66 percent response rate.
Or, look at what Amazon has been able to do
with all the shopping data it is able to compile,
targeting people who have demonstrated interest
in specific products and categories with relevant
sales pitches, building recommendation lists,
and then using programs like Amazon Prime and
Subscribe-and-Save to develop consistent and
sustainable relationships with its best shoppers.
Most recently, the company that has shown
how to use data to redefine the customer
relationship is Netflix, which has quickly turned
around a messy public relations situation (it
tried to raise prices and separate its disc and
streaming businesses, only to encounter almost
universal pushback, leading it to quickly and
smartly reverse course).
Netflix began as a company that offered
DVD-by-mail rental subscriptions to consumers,
and in doing so, managed to help undermine
Blockbuster’s entire value proposition. Suddenly,
those little red envelopes were everywhere, even
as Founder/CEO Reed Hastings was saying that
Netflix primarily was a content company, not a
DVD rental service.
The difference was more than semantic. As a
content company, Netflix could be agnostic
about how product was delivered and easily shift
to new technologies when appropriate. Which it
has been doing as video streaming has become
more, well, mainstream.
These days, though, Netflix has been making
more noise as an original content company, as it
produced an original 13-episode series, “House
of Cards,” which stars Kevin Spacey, is directed
by David Fincher (“The Social Network“), and can
best be described, I think, as “The Sopranos”
meets “The West Wing.”
One reason that Netflix chose “House of Cards”
as its initial foray into original programming is that
it had data to back it up — movies by Spacey and
Fincher always had done well as rentals, as had a
British version of “House of Cards.”
But when it released the series, Netflix decided to
make some revolutionary moves. For one thing,
the series is only available for streaming. At least
for now, it is not available on DVD, nor on any
broadcast or cable channel. This is the Netflix
version of differentiated product, or a private brand
— something you can only get from Netflix.
Netflix also did something else that challenged
assumptions about how content should be
delivered — it decided to make all 13 episodes
of “House of Cards” available at the same time.
This put the decision about how the series would
be consumed entirely in the hands of the viewers.
They could watch one a day, one a week, or could
binge on the whole thing over a day or weekend.
Again, Netflix knew from the data that different
people like to experience programming in
different ways, and rather than make the decision
for the viewers, it simply acknowledged that
the balance of power has shifted and allowed
consumers to enjoy the show on their own terms.
Over the years that I’ve been doing this, I’ve developed a list of what I self-servingly call “CoupeRules,” or points that I think are critical to business success.
What Retailers Can Learn From Netflix
V I E W P O I N T
KEVIN COUPE
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What Retailers Can Learn From Netflix
There are some folks who are not convinced, largely
because they think Netflix can make more money by
stretching out distribution over weeks and months.
And they think that companies ought to resist shifts in
the balance of consumer power, ignoring the fact that,
to quote the Borg, “resistance is futile.”
It seems to me that it is hard to go wrong giving the
customer what he or she wants ... and in this case,
Netflix isn’t speculating. It had data to go on.
The experiment seems to have proven out.
Netflix says that the numbers have been terrific for
“House of Cards,” though it doesn’t get into specifics.
It has several other series ready to stream to consumers,
plus it has ordered up a second season of “House
of Cards.”
And, in what may be the greatest testament that
Netflix has hit a home run, Amazon.com is getting
into the original context business, with plans to create
entertainment programming that it can make available
exclusively to its customers.
Of course, on the other side of the coin, the traditional
broadcast networks continue to lose market share, with
only occasional blips when something unusual (”The
Voice,” for example) comes on. They are playing by
an old world model, while companies like Netflix and
Amazon ... which would not have even been perceived
as competitors just a few years ago ... steal viewers
with their new world value proposition.
It is not hard to see the broader lesson here, and find
the central metaphor in Netflix’s behavior and apply it
to traditional forms of retailing.
To succeed in an increasingly crowded marketplace,
where there are an enormous number of options for
consumers’ time and money, it is critical to find ways
to offer them quality, differentiated product and to do
so in a way that embraces the fact that shoppers have
more power and information than ever before.
It is essential that traditional marketers make this
leap — that they not practice “epistemic closure,”
assuming that their view of the world is absolutely
and permanently correct — because there are future
competitors out there trying to create new businesses
and value propositions that will appeal to the next
generation of shoppers.
And they are doing it by developing actionable
customer data that tells them what shoppers really
want, and then offering it.
The name of its most recent venture may be “House of
Cards,” but the evidence suggests that Netflix may be
building something of a far more sustainable nature.
Traditional marketers need to beware of the
inevitable... that a stiff competitive wind will come
along and blow their houses down, leaving them
wondering what happened and why, when all along
there were signs of what was to come. n
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Shiloh London Executive Director CGA Educational
Foundation
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In all, a 65 percent majority of business leaders say
young people applying for jobs at their companies
right out of college are only “somewhat” prepared
for success in business, with 40 percent of C-suite
executives saying they are “not prepared at all.” Almost
half of C-Suite executives say less than one quarter
of recent grads have the right skills to advance past
entry-level positions.
What skills are these? The most sought-after are
problem-solving (ranked No. 1), collaboration
(No. 2), and critical thinking (No. 3). Also in demand
is the ability to communicate clearly and persuasively
in writing.
If you have a teenager in your house, this next statistic
won’t surprise you: According to the study, new grads
fall far short of the mark in every one of these areas —
except tech savvy, the least desired.
Despite a widespread impression that social
media makes people better at communicating and
collaborating, that’s apparently not the case. Why not?
Social media is a one-way, fragmented communication,
with less emphasis on taking a flood of information
and turning it into useful knowledge.
Companies need people who can synthesize
information and apply it to business problems.
Instead what employers are getting are people with
an inadequate grip on business realities, a narrow
worldview, a lack of career focus, and wobbly
relational skills.
Employers prefer a college degree because, if it does
nothing else, it serves as a signal of determination
and staying power. While a bachelor’s degree seems
to be a prerequisite for getting your resume read —
two-thirds of employers say they never waive degree
requirements, or do so only for exceptional candidates.
Not so long ago, newly minted bachelor’s degree
holders joined companies with the understanding
that complex skills like problem-solving and critical
thinking were largely to be learned on the job, and
would develop over time.
Now, companies want young people who walk in the
door with these abilities because who knows how long
they’ll stick around. With so many people moving
from company to company, on the job training no
longer makes economic sense. Why train them when
they’ll leave you six months later?
Sounds like we’re at a bit of a crossroads.
How do students get real world experience if it doesn’t
happen in the real world? Does the blame fall solely
on the educators or should the business community
play a bigger role in ensuring students have access
to experiential internship opportunities that allow
them to hone their real-world professional skills?
To effectively bridge the skills gap, businesses and
higher education institutions must form partnerships
that bolster the currency of education and prepare
graduates with the “right” skills.
Some of the best lessons are learned outside the
classroom. n
Recent College Grads Lack Real-World FundamentalsEMPLOYERS RECENTLY SURVEYED BY GLOBAL STRATEGY GROUP AND MACGUIRE
ASSOCIATES, INC. SAY THEY ARE HAVING TROUBLE FINDING RECENT COLLEGE
GRADUATES QUALIFIED TO FILL POSITIONS AT THEIR COMPANIES.
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CGA Members “Hike the Hill” To Meet New Legislators
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More than 25 CGA retail and supplier members
gathered in Sacramento on February 22, 2013, to
meet with California’s recently elected legislators
and establish working relationships with the largest
“Freshman Class” of lawmakers in recent history.
The one-day event, dubbed “Hike the Hill,”
allowed industry executives to meet with newly
elected legislators and their staff and educate them
on key grocery related issues prior to bill packages
being set.
“Nearly one-third of the Legislature is brand new,”
said CGA President Ron Fong. “CGA believed it was
critical these ‘Freshmen’ legislators heard directly
from our industry as to the impact our industry has
in their districts.”
CGA members first met with CGA’s government
relations staff and were briefed on key legislation
related to the grocery industry and protocol when
meeting with legislators. Attendees spent the bulk
of the day in the State Capitol meeting either directly
with legislators or their staff.
USDA Undersecretary Addresses Attendees
In addition to their visits, attendees heard from U.S.
Department of Agriculture Undersecretary Kevin
Concannon who provided an update on the current
moratorium on the issuance of new Women, Infants
and Children (WIC) licenses. The Undersecretary
said that while the state does a good job on the
clinical side of WIC, “they have failed on the
administrative side.”
Nearly one-sixth of WIC households in the United
States reside in California.
“The state hasn’t paid close attention and some small
stores, just one very small slice of the whole range of
vendors, have been grossly overcharging and using all
types of gimmicks,” he said. “Unfortunately to deal
with this problem a moratorium was placed on any
new store coming in.”
The Undersecretary was in California meeting with
state officials to work on resolving this issue. Other
concerns include the state not hiring a WIC director
and not hiring additional personnel, despite the
funding coming from the federal level. n
USDA Undersecretary Kevin Concannon was the luncheon keynote speaker.
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SEC Store Tours Enters 2nd YearTHE CGA SUPPLIER EXECUTIVE COUNCIL HAS ANNOUNCED ITS SLATE OF 2013 STORE
TOUR SERIES.
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On April 2, the CGA Supplier Executive Council
(SEC) kicked off its exclusive 2013 Store Tour Series
with an in-depth look at Costco Wholesale. The tour
was led by John Eagan, Vice President and Senior
General Merchandise Manager, at the Costco Culver
City location.
These exclusive store tours provide SEC members
with a unique opportunity to learn about how
retailers approach operational strategies and obtain
insights on customers while walking the floor with
top California retail executives and experiencing their
business first-hand.
To learn more about the SEC Store Tour Series,
or becoming a CGA Supplier Executive Council
member, please contact Sunny Chang, Manager,
Membership Marketing, at (916) 448-3545. n
2013 SEC STORE TOUR SERIES SCHEDULE
Costco Wholesale April 4, 2013 Executive: John Eagan, VP and Senior General Merchandise Manager
Nugget Markets May 2013 Executive: Eric Stille, President/CEO
Super King Market August 2013 Executive: Daniel Barth, General Manager
Northgate Gonzalez Markets October 2013 Executive: Oscar Gonzalez, President/COO
You “Like” Us! CGA Hits 1,000 MilestoneThe California Grocers Association Facebook page
passed the 1,000 “like” mark in March! Thank you
to all those who have added their “like” to CGA’s
Facebook page.
“We launched our Facebook page a year ago to
share with everyone the many positive aspects
of our great industry,” said Dave Heylen, CGA
Communications Vice President. “We encourage
all CGA members to submit information regarding
the many community-based programs they’re
engaged in so that we can post these stories on our
Facebook page.”
To “Like” CGA’s Facebook
page, log on to www.facebook.com
and search for California
Grocers Association. n
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Hutchings Joins CGA GovernmentTHE CALIFORNIA GROCERS ASSOCIATION HAS ANNOUNCED THE HIRING OF DANE
HUTCHINGS AS GOVERNMENT RELATIONS MANAGER, EFFECTIVE IMMEDIATELY.
CGA Welcomes New MembersTHE CALIFORNIA GROCERS ASSOCIATION WELCOMES THE FOLLOWING NEW MEMBERS:
CG
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In this position, Hutchings will be
responsible for bill tracking and
analysis, regulatory analysis, member
relations, and grassroots development.
In addition, he will work with CGA
members to develop positions and draft advocacy
messages and represent the organization before
the Legislature.
Hutchings began working with Ogilvy Public
Relations Worldwide in 2010, serving as the interface
between the government affairs and public affairs
practice areas. He was responsible for advocacy
and support for multiple California legislative
and regulatory issue areas including: renewable
energy, transportation, toxic substances, small
business, revenue & tax and labor while cultivating
and maintaining relationships with legislative
members, key policy staff, as well as numerous trade
associations and contract lobbyists.
Most notably, Hutchings was part of the
communications and outreach team for the California
high-speed rail statewide infrastructure project, as
well as overseeing the execution of a high-school
awareness campaign for the California Office of
Traffic Safety — highlighting the dangers of texting
and driving. Prior to that, Hutchings worked as a
legislative aide for Mattos & Associates, a government
relations firm specializing in association management.
“Dane’s government and public affairs knowledge will
be of considerable value to CGA as the Association
continues to raise the bar in its advocacy efforts,” said
CGA Senior Vice President, Government Relations &
Public Policy, Keri Askew Bailey.
Hutchings attended California State University,
Sacramento, and graduated with a bachelor’s degree in
Communications with a Public Relations emphasis. n
WN Pharmaceutical Ltd. 100 80th St SW Ste 100
Everett, WA 98203
Contact: Amanda Hansen, National Acct. Manager
Email: [email protected]
Long Valley Market, Inc. 44951 Hwy 101
Laytonville, CA 95454
Contact: Michael J. Braught, President
Email: [email protected]
S.A. Piazza & Associates, LLC. 15815 SE Piazza Ave. Clackamas, OR 97015
Contact: Stephen A. Piazza II, COO/Retail Sales
Email: [email protected]
Website: www.sapiazza.com
“ Dane’s government and public affairs knowledge will be of considerable value to CGA as the Association continues to raise the bar in its advocacy efforts.”
CGA Senior Vice President, Government Relations & Public Policy
Keri Askew Bailey
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2013 IDDBA 4/C • “Foodie All Stars” • 7” X 10” California Grocer Ad Beltrame Leffler Advertising • (317) 916-9930 • 02.18.13 • S2GA010113
Register Now • Educational Seminars • Show Planner • Hotels • Exhibits • Show & Sell Center International Dairy-Deli-Bakery Association
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Jim GaffiganReady, Set, Eat!
Bill O’ReillyThe No-Spin Zone
Carmine GalloLessons from
The Apple Store
Marcus BuckinghamTurn Strengths Into
Competitive Advantage
Harold LloydGrand Slam
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and Their Impact
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Lowell Catlett Food: Seeing 20-20 in 2020
Jack LiGrowth Opportunities
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G et of f t he b ench a nd i nto the game by practicing with other Foodie All-Stars in the world of dairy, deli, bakery, and foodservice. Tryouts are open for buyers, merchandisers, marketers, brokers, and distributors looking to join the best team in the business for new products, new knowledge, and new actionable ideas.
Your ticket gets you the best seat in the house to learn from other top performers. You can attend all three days of educational sessions to gain new perspectives and knowledge from the best players inside and outside the industry. Headliners will speak on trends, marketing, consumer behavior, growth opportunities, leadership, lifestyle trends, and customer loyalty.
Become the MVP by learning a new playbook, exchanging winning tips and ideas, and networking with over 8,700 of your new teammates. New trends and products can be found on the 1,600-booth Expo Floor, in the Show & Sell Merchandising Center, or at the other industry Special Events including the WMMB Party.
It’s the totally new 10,000 square-foot merchandising idea center where you’ll
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Congratulates
Al Plamannon his retirement!
This cheer, or one like it, has been echoed many times
in these states with the 46-year-old discounter often
opening its doors to record crowds in new marketing
areas that now include Utah and Arizona.
The Boise-based company, described as a cross
between a traditional supermarket and a warehouse
store, had annual sales of $5.3 billion in fiscal 2012
from 86 stores in seven Western states, 31 of which
are in California.
“As we move forward some of our expansion will
be in California as well as in the greater Phoenix
area,” says Michael Read, vice President, Public and
Legal Affairs. “We’re also looking to the Dallas/Fort
Worth market over the next year or year-and-a-half.
Our economic research indicates this will be a great
opportunity for us.”
WinCo Foods started out under the name Waremart
when founders Ralph Ward and Bud Williams opened
the first discount warehouse in Boise in 1967. It
wasn’t until 1999 that the company changed its name
to WinCo Foods to avoid confusion with other large
“mart” stores.
Here’s where the story gets a bit muddied since some
company historians will tell you that the name was a
shortening of the phrase “winning company” not the
states in which the company operated.
However, where the name came from is far less
important than what it represents.
“The stores are something of a hybrid — not fancy
but not a warehouse either,” Read says. “We consider
ourselves to be a large discount grocer. But the store
has the look and feel of a large traditional supermarket
with a couple of exceptions.”
The most notable exception is when you walk in
the store.
“You immediately proceed down the wall of values —
featuring extra good deals on popular items,” Read
explains. “The items are stocked on ‘high steel’ so you’ve
got floor level displays and pallets of those same goods
on metal racking that can be moved down to floor level.”
While the stores have gotten a little bigger over
the years, the company is exploring the possibility
of smaller formats for markets that might not be
able to handle its typical 90,000 to 95,000 square-
foot imprint.
Locations for the smaller stores will depend on a
number of factors including demographics. But
ME
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WinCo Spells Low PricesWASHINGTON, IDAHO, NEVADA, CALIFORNIA, OREGON. PUT THEM TOGETHER AND WHAT DO
THEY SPELL? WINCO.
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M E M B E R P R O F I L E
generally, they will be in the 50,000-60,000 square-
foot range, according to Read, noting that it has not yet
been determined whether they will be in California.
“Typically, we first look for the opportunity to build a
traditional sized store,” he says. “But if the marketing
area’s too small or there’s an opportunity for fill-in we
would consider a smaller unit.”
However, new formats don’t mean changing a
successful in-store formula.
“The format will remain the same in terms of how
we come to market and merchandise,” Read says.
“We primarily carry national brands and our focus
is still on being the supermarket low-price leader
wherever we operate.”
Read says it may sound cliche, but WinCo
traditionally considers its core customers to be
soccer moms and young families with kids that
operate on a budget.
“Value is the key and we provide that as well or
better than other discount operators,” he adds.
However the future also lies in leveraging the
WinCo name.
“We’ve carried some private labels like Federated’s
Hy-Top,” Read says. “We are aggressively exploring
private label under our own name and within the next
couple of years, we expect to have a large private label
offering in virtually all grocery categories.”
Read says WinCo has created enough of a brand
identity and reached a size where having its own
private label makes sense.
“People recognize that WinCo stands for value,”
he says.
Part of that value proposition means doing things a
little differently than your competitors.
“For example, we don’t do traditional advertising,” he
notes. “In fact, we rarely advertise at all, and when
we do it’s usually by direct mail in the primary trade
area around a particular store. They are either price
comparison or coupon ads.”
The chain also keeps prices low by not accepting
credit cards.
“We’ve never taken them,” he says. “Customers
understand that’s the way we do business and it’s
reasonably well accepted. The interchange fees and
backstage costs of carrying credit cards typically
mean higher prices for consumers. We do accept
debit cards, but even that is a fairly recent change in
company operations.”
One interesting variation not used by many grocers is
a toggled checkstand.
“Most grocers don’t operate this way,” Read says.
“There are two conveyor belts so you can check out
a customer on one side and while they bag their
groceries we can start checking out another customer
Continued on p. 22
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on the other side. Then we can interrupt that checkout
to take payment from the customer who’s finished
bagging. It’s like having one-and-a-half checkstands
and enables us to move people through the front end
more quickly.”
WinCo’s somewhat barebones approach to operations
though doesn’t extend to in-store departments and
customer service.
“We’ve always had serviced perimeter departments,”
he says. “Most stores have a bakery, along with service
deli, meat and fish. And we’ve always maintained a
very large produce department which is critical for any
good grocery operator.”
Additionally, WinCo has one of the larger bulk food
operations of any grocer in the country.
“At any given time, we have well over 700 bulk items
displayed primarily in gravity feeders. It’s hard to
imagine anything we don’t carry,” says Read, noting
that selection ranges from whole grains, flours and
cereals to snack foods, candy and spices.
“It’s almost as large as the produce section and it’s
a great opportunity to provide additional value to
customers since they are not paying for additional
packaging, merchandising or advertising,” he adds.
The value proposition also extends to employees
thanks to an Employee Stock Ownership Program
that has been in place for more than 25 years. In order
to be eligible, employees must be at least 19 years old,
work a minimum of 500 hours in the first six months
of employment and accumulate 1,000 hours per year.
Because WinCo is not publicly traded, the value of
its stock is appraised annually by an independent
valuation firm. Since 1985, the value of ESOP stock
has increased by a 20 percent compounded annual
rate, the company said.
“Unquestionably, our ESOP creates a different
company culture because employees share in the
success of the company and provide for their own
futures,” Read says. “People take pride in that. It
increases loyalty and tends to reduce turnover.”
In addition, Read says, it also motivates people to be
mindful of how effectively they do their job and to
find new ways to be more efficient.
“They know that what they do contributes to the
overall profitability of the company which, in turn,
contributes to their retirement security,” he explains.
As for WinCo’s overall outlook for 2013, Read says
the balance of the year is shaping up well.
“Because of our value approach to the market in
the early years of the recession we did extraordinarily
well,” he says. “We gained a lot of new customers
and many of them are sticking with us.”
The company has opened four to six stores annually,
in recent years, and is planning to increase that
number over the next few years.
“We have plans to increase store openings steadily
as we move forward,” he says. “Our entry into the
Dallas/Ft. Worth market is part of that plan. In fiscal
2013, we’re planning to open five stores and probably
seven or eight the following year. We don’t know
how many of those stores will be in California at
this point.” n
By Len Lewis
M E M B E R P R O F I L E
WinCo’s somewhat barebones approach to operations though doesn’t extend to in-store departments and customer service.
Continued from p. 21
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now you can deliver qualityat every price point.Shoppers’ needs and budgets have changed, so we’ve got a plan for you. Good. Better. Best. Kraft introduces a strategy for growth across a variety of products with various price points. Now, all of your shoppers can get the quality they want, at the price point that works within their budget.
To learn more, contact your Kraft Sales Representative, scan the code to the leftor visit www.KraftFAQs.com.
©2013 Kraft
good. better. best.better.
16253_MarchGroceryTradeAd_CGA.indd 1 3/28/13 4:25 PM
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
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CARTSNAP
FOLLOW US ON SOCIAL MEDIA
www.cartretrieval.net
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
WHO: UNIFIED RETAILERS AND SUPPLIERSWHERE: LONG BEACH CONVENTION CENTERWHEN: JUNE 12 • 8 AM TO 5 PM JUNE 13 • 8 AM TO 4 PM
Your Contact: Catherine Lawrence 323-729-6759 [email protected]
Don’t wait! Space is limited so sign up today!
Go to unifiedgrocers.comand click on “Event Registration” at the top of the home page.
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Unified’s annual exposition of supermarket products, programs and services is sure to bring you to your feet!
The tidal wave of such litigation that has engulfed
businesses and courts in the last decade has been
merciless. With no real prospect of relief in the
California Legislature, the outlook for employers
has been bleak — at least until recently.
What has changed? Two words — federal arbitration.
The Federal Arbitration Act (FAA) was first passed
in 1925. Initially thought only to apply to private
controversies governed by federal law, it took almost
60 years for the U.S. Supreme Court to clarify in its
landmark 1984 decision Southland Corp. v. Keating
that the statute also applied to contract disputes
governed by state law.
In the years since deciding Keating, perhaps in an
effort to help clear congested federal court dockets, the
Supreme Court has taken the ball and run with it, and
in the process transformed what was, in 1984, a crack
in a dike, into what has now become a flood.
In 2001, in the case Circuit City v. Adams, the
Supreme Court made clear for the first time that the
FAA applied to employment contracts, overruling in
the process Craft v. Campbell Soup, a 1999 decision to
the contrary of the Ninth Circuit (the federal appeals
court with jurisdiction in California).
Two year later, in 2003, the Ninth Circuit fell into
line with its sister Circuits and found that, as a
consequence of the Supreme Court’s 1991 decision
in Gilmer v. Interstate / Johnson Lane, employers can
require their employees, as a mandatory condition of
employment, to bring claims to a private arbitrator
rather than in civil court. Six years after that, in
2009, in 14 Penn Plaza v. Pyett, the Supreme Court
overruled its 1974 Alexander v. Gardner Denver Co.
decision and found that in an unionized context as
well, employees can be forced (if their union agrees)
to arbitrate statutory claims.
These decisions have had the potential to seriously
undermine two principal sources of leverage that
plaintiffs’ lawyers have, the ability to embarrass
employers by bringing claims as a matter of public
record in civil court and the risk of “runaway”
jury verdicts. As a result, these decisions favoring
mandatory arbitration have been met with howls of
criticism from the plaintiffs’ bar, and loud demands
for a Congressional fix. Still, not all employers are
convinced that mandatory arbitration is the answer.
In 2011, however, that may have changed. In the case
ATT Mobility v. Concepcion, the Supreme Court found
that not only could employees be forced to arbitrate
statutory claims, but that they could be made to do so
on an individual, as opposed to class, basis. The death
knell of employment-related class actions has suddenly
been on the wind.
Is the battle over yet? Not quite.
Though a divided Congress has been unable to
stop the mandatory arbitration march, the Obama
administration’s Democratically-controlled National
Labor Relations Board has been trying to do so.
In 2012, in the case D.R. Horton, the Board found
that requiring arbitration on an individual rather than
class basis violated the National Labor Relations Act.
Most federal and state courts have since rejected that
conclusion, and a federal Court of Appeal will shortly
decide whether or not to overrule that decision.
These developments bear close watching in the next
few months, however. They embody perhaps the
best hope for California grocers, both union and
non-union, to drive a stake through the heart of
employment-related class action litigation. n
KN
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Mandatory Arbitration of Statutory Claims —Are We There Yet?THE CALIFORNIA GROCER THAT HAS NOT YET HAD TO CONTEND WITH SOME KIND
OF WAGE AND HOUR CLASS ACTION — BE IT A CLAIM THAT EMPLOYEES HAVE BEEN
MISCLASSIFIED AS EXEMPT — OR NOT BEEN GIVEN REQUIRED REST OR MEAL BREAKS
— IS THE EXCEPTION RATHER THAN THE RULE.
John H. Douglas is a partner at Foley & Lardner LLP in
San Francisco, Calif. and represents management in
labor disputes and collective bargaining. He can be reached at [email protected].
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For more information, call 623-872-1120. Or visit www.hickmanseggs.com.
“Hickman’s eggs are available nowin a store near you!”
Our families bring together years of combined
egg farming tradition and laying hens.
273
7 million
It's not hard to see why everybody at Hickman's Family Farmsis more excited about the future than ever before.
And we are really proud to say...
Andrew Demler is theyoungest in the group,and is a 3 generationegg farmer. His grand-father started farmingin 1950 (63 years ago).
rd
Tony McNally has thedistinction of being theoldest in the bunch, andis also a 3rd generationegg farmer. His familystarted farming in 1939in Yucaipa (74 years ago).
Clint Hickman is a 3rdgeneration egg farmer,and his family startedtheir egg business in hisgrandparents’ back yardin Glendale Arizona in1944 (69 years ago).
Ryan Armstrong isa 3rd generation eggfarmer, and his familystarted farming in1946 in Los Angeles(67 years ago).
GO
VE
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NT
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LA
TIO
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Time for Another Round… of Elections!THE GENERAL ELECTION FOR THE CITY OF LOS ANGELES IS MAY 21.
While voter turnout was dismal for the City of Los
Angeles primary election, most expect a slight uptick
in turnout for the general election in May. CGA
has partnered with L.A. Jobs PAC through the Los
Angeles Area Chamber of Commerce to endorse
business-friendly candidates that will pursue a
moderate agenda, close the deficit in the L.A. City
budget, and foster economic growth and development.
Additionally, CGA hosted meet and greets and
fundraisers for specific candidates in the City of
Los Angeles to inform them of issues particular
to the grocery industry and engage in the local
political process.
The City of Los Angeles has three citywide offices to
be decided on May 21: mayor, city attorney and city
controller. Each official can serve a maximum of two
four-year terms.
Additionally, the city has a 15-member council and
each member can serve a maximum of three four-year
terms. The members stagger their election cycles, so
odd seats are up for election in 2013, even seats in
2015, etc.
Due to all the political shuffling caused by term
limits, members moving to the State Legislature, or
members moving to Congress, this election cycle in
Los Angeles has an unprecedented wide-open mayor’s
race, wide-open city attorney and city controller’s race,
and a change of seven city council seats, almost a
simple majority.
It has been a long time since Los Angeles, the
nation’s second largest city, has seen such a change in
political leadership in such a short time span. It’s why
the national news media calls the mayor’s race one of
the top six to watch in 2013.
Councilmember Eric Garcetti and City Controller
Wendy Greuel are the two candidates that advanced to
the runoff for mayor. Each candidate can claim a path
victory, and each has the resources to accomplish this.
Due to low voter turnout, this race is all about
winning over voter blocs throughout the city and
ensuring their supporters hit the polls. This race
will be close and could go either way. L.A. Jobs PAC
endorsed Wendy Greuel for Mayor. If she succeeds,
she’d be the city’s first woman mayor.
Other races to watch include city attorney. Incumbent
Carmen Trutanich had a terrible performance last June
when he lost the primary in his bid for Los Angeles
County District Attorney. Assemblymember Mike
Feuer is challenging Trutanich and this race will come
down to the wire.
Council District 1 features former State Senator Gil
Cedillo against the current Chief of Staff for District
1, Jose Gardea. Council District 9 features State
Senator Curren Price against former Chief of Staff
Ana Cubas. Council District 13 is a wide open race
featuring John Choi (the union backed candidate)
against home-grown candidate, Mitch O’Farrell.
In these races, L.A. Jobs PAC has endorsed Cedillo
and Price and no endorsement for Council District
13. One other note: depending on the winners in May,
the new Los Angeles City Council could feature eight
former state legislators, a council majority.
The implications of new political leadership in
Los Angeles are vast, as the city struggles with
high budget deficits, high unemployment and a
burdensome development process.
For CGA members, issues such as living wage,
congested roadways, shopping carts, carryout bags,
and food deserts continue to be policy discussions
among city leaders. This election cycle will decide
whether the city can move to a more moderate,
even-handed approach to attract and retain local
businesses, or whether the current structure will
remain with businesses fighting constant regulation.
It will certainly make 2013 interesting and another
election cycle to enjoy. n
The City of Los Angeles has three citywide offices and all will be decided on May 21: mayor, city attorney, and city controller.
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With the bill introduction deadline passed, more
than 2,000 pieces of legislation were introduced
— nearly 900 on the last day. While the total
number is slightly less than an average year, the
range of issues and number of bills that could
impact the grocery industry are pretty much on
par with what we have seen in past years.
A recurring theme for many years in the
Legislature has been the Beverage Container
Recycling Act — affectionately known as the
Bottle Bill.
The Beverage Container Recycling Fund has
met with a variety of challenges in recent years.
Even with that being the case, we usually do
not see many bills introduced on the topic at the
beginning of the session.
Most of us working on this issue have come to
expect deals to be resolved late in the session that
usually end with a “gut and amend.” This year
is an anomaly because a number of bills were
actually introduced on the subject!
n AB 665 (Alejo) — This bill would extend the
date by which a distributor is required to pay
the redemption payment to CalRecycle to
60 days following the sale. Over the course
of the last few years, budget language has
been approved to reduce the number of
days distributors had to remit payment. The
first change reduced it from 90 to 60 days.
Last year, it was reduced to 30 days over the
objections of the distributors. CalRecycle
sought the change to help address cash flow
issues faced by the program. In turn, the
distributors claim the change has created
cash flow issues of their own. The CGA
Government Relations Committee voted
to oppose this measure because it is not
comprehensive in nature.
n AB 744 (Gordon) — This bill would delete
the provisions that require the department
to establish the reporting periods for the
redemption rates and to determine the
redemption rates for specified types of
beverage containers. This bill is a placeholder
for the larger discussion of comprehensive
reform to the program. CGA is actively
working with Assembly Member Gordon
and CalRecycle to identify changes that not
only make the program financially stable but
also address issues impacting our member
companies.
Additionally, there are a handful of bills that also
amend the Bottle Bill, but are not substantive
at this time. They include AB 1023 (Eggman);
AB 1142 (Bloom); AB 1370 (Patterson); and SB
791 (Wyland).
Another hot and recurring topic for the past few
years has been single-use carryout bags. Four bills
have been introduced on the topic, signaling it
will be another busy year for this issue.
The Legislature Looking AheadPrior to the bill introduction deadline, there was a lot of talk about legislators taking it slow and not introducing a high number of bills. So much for talk!
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n AB 158 (Levine) is a reintroduction of AB 298
(Brownley) from 2012. Assembly Member Levine
worked closely with CGA on this issue when he was
a San Rafael City Council Member. Even though the
bill does not address some of our platform issues,
the Assembly Member has agreed to work with us
as the bill moves through the process.
n AB 1337 (Allen) is a spot bill. Rumor has it that
the bill may turn into language focusing on
incentivizing programs that promote the recycling
of single-use plastic bags.
n SB 405 (Padilla) is also a reintroduction of AB 298
(Brownley). The Senate is where our efforts on this
issue have stopped in past years. With Senator
Padilla taking the lead, we believe its chances for
success are much greater. The Senator has also
committed to work with us to resolve our issues
with the previous bill.
n SB 700 (Wolk) is a modified version of the
Washington DC model. This bill will create a tax on
all single-use carry out bags with a small percentage
retained by the grocer. The remaining money
would be used by the state to fund parks and other
environmental programs. There is no preemption
language in this bill and the author has spoken in the
past about her dislike of such language.
Additionally, we will be working on scanner accuracy,
WIC, CalFresh, soda taxes, food waste and more. Of
course, there are always bills that impact the grocery
industry, as well as other businesses generally. Some
of those include a minimum wage proposal to adjust
annually (AB 10), workers’ compensation changes for
independent contractors (AB 360), and more.
Despite the excitement over a smaller number of total
bills introduced (which it technically has been, but not by
much), this is going to be a very busy legislative session. n
This article was authored by Louie Brown, a partner in the Sacramento office of Kahn, Soares and Conway, LLP.
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Governor’s Budget Proposals
Governor Jerry Brown’s proposed budget,
released January 10, 2013, uses $291
million from the General Fund to pay the
third interest payment due to the federal
government for the quarterly loans that the
Employment Development Department (EDD)
has been obtaining from the federal
government since January 2009 to cover the
UI Fund deficit and make payments to UI
claimants without interruption.
The UI Fund deficit was $9.9 billion at the end of
2012 and it is projected to be $10.2 billion at the
end of this year. Interest will continue to accrue
and be payable annually, until the principal on
the UI Fund loan is repaid. Federal law requires
that the interest payment come from state funds.
In both 2011-12 and 2012-13 fiscal years, the
state borrowed from the UI Disability Fund (DI
Fund) to make the required interest payments
to the federal government. These loans against
the DI Fund total $612 million. The Governor’s
budget does not include a proposal to repay
these loans.
The Governor’s budget is also silent on how
to make future interest payments for funds
borrowed from the federal government to pay
UI benefits and a proposed solution to the
insolvency of the UI Fund. The Administration
indicates that proposals will be developed to
address all three of these problems during a
series of stakeholder meetings convened by the
Secretary of the Labor Agency.
The Governor’s budget also increases total
benefit payments to $13 billion in 2012-13
and $9.5 billion in 2013-14 to reflect the
recent extension of federal extended benefits
through December 2013 and a reduction in the
unemployment rate.
California Labor Fed Proposals
The California Labor Federation (CLF) released
a report identifying structural flaws in the
Unemployment Insurance Fund that the CLF
claims “will put at risk a lifeline for laid-off
workers.” The report, entitled “Unemployment
Insurance: Underfunded and Undervalued,” calls
for immediate action to put the UI Fund.
“Workers who have experienced the trauma
of losing a job through no fault of their own
understand how vital unemployment insurance
is to their families,” said CLF Executive Secretary-
Treasurer Art Pulaski. “We can’t allow our state’s
Unemployment Insurance Fund to slide into an
abyss of debt that threatens laid-off workers’
unemployment checks. It’s time for sensible
solutions that create a solvent fund that workers
can rely upon in a time of need.”
The CLF claims, “California lags far behind
neighboring states in terms of benefits paid to
unemployed workers and contributions required
by employers.” Since 1983, California businesses
have been paying UI taxes on the first $7,000
of each worker’s earnings. This wage base is
the minimum allowed by federal law and ties
California for last in the nation with Arizona.
According to the CLF, California’s worker
benefits are well below the national average.
States try to achieve benefit levels that offer a
50 percent wage replacement rate. California’s
29 percent weekly wage replacement rate is 7th
lowest in the nation.
Light at the End of the UI Fund Tunnel?As CGA members are aware, California’s Unemployment Insurance (UI) Fund has been under siege for many years. This year may finally result in significant legislation as discussed below.
P E R S P E C T I V E
CHRIS MICHEL I
Legislative Advocate
Aprea & Micheli, Inc.
According to the CLF, California’s worker benefits are well below the national average.
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The CLF report calls for the following fixes to the UI System:
n Increase and index the taxable wage base. To
bring the UI fund into balance and keep up with
rising inflation and wages, the taxable wage base
must be adjusted upward now and should be
indexed to automatically rise over time.
n Expand the tax rate schedule. Without changes
to the UI tax rates, especially the top tax rates, the
value of an experience-rated system will be lost,
along with the incentive to keep workers working.
n Move to a forward-funded system. Rather than
waiting for an economic downturn to replenish
the fund, California should use economic booms
to grow the balance of the UI fund when it is
financially easiest for employers to pay more.
n Establish an employer surcharge to repay
federal loans. California should join the 20 other
states that levy a special assessment on employers
to cover the cost of federal loans.
n Index benefits to account for rising wages and
inflation. By pegging benefits to a percentage of
the state’s average weekly wage, California can
ensure that benefits will track wages and provide a
similar value to workers over time.
n Create a dependents’ allowance. Adding a
dependents’ allowance helps the unemployment
insurance system keep families out of poverty
during periods of job loss.
Suggested Reforms Under Discussion
CGA staff is a part of a work group examining
UI system reforms. Suggested reforms include:
Initial Eligibility (Unemployment Insurance Code
sections 1280 and 1281).
1. Change the minimum monetary qualification
to better reflect a reasonable attachment to
the workforce. The current minimum qualification
is just $900 (which is 2.8 weeks working full time
at minimum wage), in the high quarter and $1,125
in the Base Period. This is far below the average
in other states and does not reflect a sufficient
attachment to the workforce. The average is
between $2500, and $3000, with a number of
weeks of work also required.
2. Change the Weekly Benefit Amount
determination formula from a high quarter
formula to 50% of the individual’s average
weekly wage during the base period. This
sets the WBA at an appropriate replacement rate
in reference to the base period earnings, avoiding
spikes in temporary wages that can push WBAs
too close to and, in some cases, above the
average wages earned by the individual during the
base period.
3. Require claimants serve a waiting week at the
beginning of the claim. The current provision
permits the waiting week to be served at the end
of the benefit payout. Most states require a non-
P E R S P E C T I V E
Continued on p. 36
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compensated waiting week before an individual may
be paid as an incentive to the unemployed worker to
seek new employment as soon as possible.
Changes to benefit calculation and benefit reductions.
1. Change the partial earnings disregard to
encourage claimants to be available for and
accept work. (Unemployment Insurance Code
section 1279) The current earnings disregard
provision is among the highest of any state in the
country. At the higher of $25 or 25% of wages,
this provision discourages claimants from being
available and accepting full time work during their
claims series.
2. Reduce the weekly benefit amount for
disability payments with respect to the same
week claimed. (Unemployment Insurance Code
section 1255) A claimant should not receive UI
weekly benefits and workers’ compensation
disability payments (of any kind), or social security
disability payments, or any other cash payments
with respect to the same week.
3. Reduce the weekly benefit amount for pension
payments attributable to the same week and
require allocation of monthly and lump sum
amounts to weeks. Federal law requires the
reduction of benefits for certain pensions that
provide regular payments and many states require
the reduction of unemployment compensation for
pension payments.
4. Reduce the weekly benefit amount for vacation
pay or any other payments attributable to a
week claimed and require allocation of monthly
and lump sum amounts to weeks. Many states
require reductions for such payments.
Requirements to maintain eligibility (22 CCR
Section 1253 (b) 1. Registration for work).
1. Eliminate work search waiver and exception
provisions unless required by federal law
and require that the claimant document
active work search efforts with two or more
employers each week in order to be eligible
to be paid unemployment compensation, and
require that such contacts be verifiable as a
condition of payment. The regulations include
many exceptions.
2. Require that all claimants be able to work,
available to work and actively seeking
work as a condition of being paid a week
of unemployment compensation with
no exceptions, except those required by
federal law.
3. Require all claimants to register for work upon
filing a claim. Current law requires registration for
work within 21 days of filing.
Ineligibility:
1. Increase the duration suspension penalty for
claimants quitting work to require 10 weeks
of subsequent work and 10 times the weekly
benefit amount to be earned in subsequent
work. This is more consistent with other state
practices and will reduce the number of claimants
who quit employment and subsequently qualify for
unemployment compensation without significant
work after separation.
2. Increase the period of ineligibility for fraud
to 52 weeks. An administrative determination of
fraud or a conviction in any court of law, whether
referred for prosecution or not, should carry the full
penalty. Other states do not have a “conviction”
requirement, such as existing in California.
3. Increase the disqualification for misconduct to
15 weeks of work and 15 times WBA duration.
4. Impose enhanced penalty of 52 weeks for
gross misconduct or gross negligence that
caused the termination from employment.
5. Increase the disqualification for a refusal of
suitable work to a 10 week and 10 times WBA
duration, consistent with the penalty for
quitting and discharge for misconduct.
Overpayments:
1. Require that EDD produce a monthly
statement of benefit charges for each
employer and provide a period (perhaps 30
days) in which an employer may request an
adjustment to charges, with appeal rights for
denials of requests for adjustments.
2. Eliminate “waivers” of overpayments,
but permit payment plans for repayment
of overpayments.
3. Require 100% offset of overpayments against
benefits claimed.
P E R S P E C T I V E CHRIS MICHEL I
Continued from p. 35
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4. Increase the number of years of active recovery
to 10 years from 6 years.
5. Never write-off overpayments unless
determined uncollectible.
System Efficiencies
1. Streamline first level UI Appeals to require the
use of telephone or teleconference hearings,
unless all parties to the appeal agree to an in-
person hearing. Current law requires employers
to attend hearings in person if they are within 50
miles of the hearing location.
2. Two-thirds vote and solvency trigger required
for benefit increase.
New Legislation May Drive Up Costs
Also of interest to CGA members is Assembly Bill 152
(Yamada). The Association signed a coalition letter
in opposition to the measure because, if enacted, this
bill would divert employer paid Unemployment
Insurance taxes to a new program to provide income
to individuals seeking to start their own business.
Essentially, AB 152 seeks to resurrect the Self
Employment Assistance (SEA) Program to allow
unemployed individuals to collect benefits from the
Unemployment Trust Fund for engaging in undefined
“self employment assistance activities” in order to start
their own business.
In 1994 (the only year in which California operated
a SEA Program), California’s program did not yield
any participants who were successful in starting their
own business, but this program required a significant
investment of resources.
Moreover, the bill lacks necessary controls to prevent
fraud and abuse. For example, self-employment
assistance activities are not defined nor are these
activities required to be designed to help lead to a
successful business. n
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Toward a More Perfect UnionIN THE CURRENT POLITICAL CLIMATE, THERE HAS PERHAPS NEVER BEEN A MORE
CHALLENGING AND COMPLEX SET OF ISSUES. IT HAS ALSO NEVER BEEN MORE IMPORTANT TO
DEVELOP GOOD RELATIONSHIPS WITH YOUR ELECTED OFFICIALS TO HELP THEM UNDERSTAND
HOW THESE ISSUES IMPACT YOU AND YOUR COMMUNITY.
With 97 newly elected Senators and Representatives,
there are a lot of new people in Washington to get to
know. We are finding almost as much change at the
state and municipal levels of government, as well.
In order to develop productive and helpful
relationships with these new officials, the Food
Marketing Institute has joined with the Congressional
Management Foundation as a premiere partner in
a project to enrich the relationship between citizens
and Congress by comprehensively addressing the
communications challenges faced by both sides.
The Congressional Management Foundation is the
same group that trains newly elected members of
Congress and their senior staff about how to be most
effective in their new jobs.
The information we are learning from the
Congressional Management Foundation research is
very helpful, but much is also confirming information
we already believed to be true. Members of Congress
believe constituents are the most important factor in
swaying undecided lawmakers.
This is why we have our industry Day in Washington
each April. We join with the National Grocers
Association and the Food Industry Association
Executives so that we have a unified voice on four of
our most critical industry issues.
This year those issues include tax reform, in a year
that the most comprehensive rewrite of our nation’s
tax laws in 25 years will be attempted; menu labeling,
in the month that a final rule is expected that could
add another $1 billion in costs for the industry with
minimal, if any, benefit; health care implementation
and revisions as the employer mandates and related
rules kick in; and swipe fee reform — an issue
that has been at the top of the worry meter for our
members for more than a decade.
We understand that it is never easy to get away from
the businesses you run to come to Washington, but
there honestly may never be a more important time.
A quote from our third President, Thomas Jefferson,
sums it up best, “We in America do not have
government by the majority. We have government by
the majority who participate.”
For those attending FMI’s Future Connect leadership
forum in Orlando, Fla. on April 30, you will get to
hear an impressive presentation by Congressional
Management Foundation Executive Director Brad
Fitch, and two strong industry voices, Delegate Israel
O’Quinn from Food City, and Teross Young, Vice
President of Government Relations from Delhaize,
all three with more than a decade of experience in the
government relations arena. n
Jennifer Hatcher Senior Vice President
Government and Public Affairs, Food Marketing Institute
WA
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With 97 newly elected Senators and Representatives, there are a lot of new people in Washington to get to know.
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Sequestration, Continuing Resolution, and the Budget Process ALTHOUGH THE NATION AVOIDED A GOVERNMENT SHUTDOWN, THERE ARE STILL
QUESTIONS THAT NEED TO BE ANSWERED. THE GROCERY INDUSTRY MUST REMAIN
DILIGENT IN MONITORING CONGRESS AND ADMINISTRATION.
While the 112th Congress left a legacy of dysfunction
on Capitol Hill, passing only 219 bills (the least
amount of legislation since the 1940s), the 113th
Congress provided Americans with a glimmer of
hope in late March that perhaps — just maybe
— bipartisan deals can be made in the current
polarizing political climate.
On March 21, Congress avoided a government
shutdown and cleared a bill which not only ensured
the government would continue operating beyond
March 27, when continuing resolution (CR) was
projected to expire, but provided funding for all
agencies through fiscal year 2013, allocating funding
through five appropriations measures (Agriculture,
Commerce/Justice/Science, Defense, Homeland
Security, and Military Construction/Veterans Affairs).
The other seven appropriations measures are
funded based on fiscal year 2012 levels, with minor
adjustments. However, the CR deal does virtually
nothing to prevent $85 billion in across-the-board
spending cuts (the sequester) from happening, but
does provide a modest cushion for some agencies.
The measure extended authorization for the
Temporary Assistance for Needy Families (TANF)
program and shifted $55 million in funds back to
meat inspectors who faced furloughs that could have
impacted the supermarket industry in a drastic way in
the form of meat shortages, or increased prices.
The bill also provided around $250 million in funding
for the Women, Infants, and Children program (WIC)
which initially received cuts of around $350 million
in the sequester. The final CR bill did not allocate
additional funding for the Affordable Care Act (ACA),
or the Dodd-Frank Wall Street Reform and Consumer
Protection Act.
While Congress did reach agreement on government
funding, the budget process may not be so easy.
President Obama has already missed his budget
deadline of early February, and likely won’t produce
a budget until mid-April.
WA
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Peter LarkinPresident/CEO
National GrocersAssociation
While Congress did reach agreement on government funding, the budget process may not be so easy. President Obama has already missed his budget deadline of early February, and likely won’t produce a budget until mid-April.
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The House and Senate majority budget blueprints
have been released with very broad differences in how
to handle policy issues such as: the deficit, raising new
revenue, and the ACA. Such differences will make a
compromise incredibly hard. The House has already
passed Committee Chairman Paul Ryan’s (R-WI)
budget and it did not receive a single Democratic vote.
Five other House budget alternatives were offered
from the Democratic Caucus, the Republican
Study Committee, the Congressional Black Caucus,
Congressional Progressive Caucus, and the Senate
Budget Proposal, all of which were swiftly rejected.
The Senate has already rejected the House-passed
Ryan budget and, as of this writing, the Senate is
projected to pass Budget Committee Chairman Patty
Murray’s (D-WA) budget, or one very similar, after a
50-hour “vote-a-rama” of back to back votes on various
amendments stemming from employer mandates
in the health care law to Supplemental Nutrition
Assistance (SNAP) funding and choice issues, to
online sales taxes, all issues in which impact the
supermarket industry.
The Chambers are not bound to their budgets, unless
a highly unlikely compromise is made between them.
More likely than not, the differing budgets will act
more as a guide of principles until the President
releases his budget proposal.
Among everything else, Congress has many other
issues to consider that can have a tremendous impact
on our industry. From comprehensive tax reform, to
overhauling the immigration system, to passing a
5-year Farm bill before the fiscal year concludes, much
uncertainty still remains.
The National Grocers Association has and will
continue to work with Congress and the administration
on these important issues that impact the independent
grocery industry, but we cannot do it without the help
and support of California grocers. n
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You are a leader.You dare to lead when others follow. You make a true difference in the lives ofthose you touch. You light the way by your shining example. For your steadyguidance, we salute you.
It has been an honor to have worked with you over the years supporting Unifiedand the grocery industry. Al, congratulations on your retirement and your accomplishments.
LA Commercial Banking GroupScott Connella, Market President, 213-236-7851Everett Orrick, Senior Vice President & Manager, 213-236-5870Robert Petersen, Senior Vice President, 213-236-4182
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A D V O C A C Y BY KERI ASKEW BAILEY
In 2009, California Grocer reported extensively about
advocacy, the California Grocers Association’s No. 1
priority on behalf of its members.
The article highlighted several challenges faced by
our industry specifically, and the business community
generally, when navigating California’s political and
policy processes on both the State and local levels.
It also discussed the three components of the
government relations program CGA wanted to
develop and improve. Looking back, it is incredible to
note the progress CGA has made. Looking forward, it
is a bit daunting to see how much farther we could go.
The challenges in many ways have become more,
well, challenging.
CGA again faces an onslaught of more than 2,500
bill proposals in Sacramento in a single year and will
again be working to address proposed ordinances in
California’s 478 cities and 58 counties. Redistricting
combined with California’s original term limits law
ushered more than 40 freshmen “Legiboomers”
— Assemblymembers and Senators with no prior
experience under the Capitol’s dome. That number
represents fully one-third of State lawmakers.
In addition to the unprecedented turnover in
Legislative seats, changes to California’s term limits
law have brought a different career path for those
arriving in Sacramento for the first time in 2013.
The Legiboomer class is eligible to serve a total
of 12 (down from 14) years in the statehouse but,
importantly, they can serve that entire time in
one house. It is expected that amid all the change,
opportunity for longevity could actually create more
stability. That concept is a good thing when applied
to our allies, but can be a significant challenge when
applied to individual lawmakers who do not share the
world view of our industry.
Possibly the biggest change, and most significant
challenge CGA faces today that it didn’t anticipate in
2009 is the complete dominance of Democrats in the
state power infrastructure.
A D V O C A C Y
CGA Advocacy: MAKING STRIDES
Continued on p. 46
California has long been a “blue” State and
Democrats have commanded majorities in both
wings of the statehouse for decades. However, the
2010 elections saw them make gains by winning
every Statewide office and they expanded influence
in 2012 by adding a two-thirds supermajority in both
houses of the Legislature.
Despite those challenges, there is much opportunity
and CGA’s government relations program has made
significant progress over the past few years. We set
out in 2009 to ensure our lobbying program was
top notch, to grow our grassroots participation, and
to increase our participation in the political side of
politics. In each area we have made great strides and
have even more improvement on the way.
Top-Notch Lobbying
There is no doubt that CGA has taken a good
lobbying program and made it better. The Association
has become a key player in significant policy battles
including attempts to reform California’s Beverage
Container Recycling Program, efforts to regulate
single-use carryout bags, and programs to increase
access to healthy foods. CGA can’t say it wins every
battle, in a state like California that isn’t possible
for business, but the Association is now a part of
the conversation and works to positively impact
the outcomes.
CGA’s successes can be credited to the efforts
of its staff, who are in the trenches on a daily
basis, and to engagement on the part of the
Association’s membership.
The government relations staff works hard to help
find solutions when they exist and to choose carefully
the battles we prioritize. Rather than joining the
chorus of business interests, CGA has worked to
help distinguish the grocery industry and the
industry’s voice.
While the Association is on the same page as its
colleagues on many issues, if we have a unique story
to tell we take the time to tell it and personalize
issues. On occasion, that means parting ways with
our colleagues and charting our own course.
Fortunately, the results of our efforts are paying off.
CGA has gained significant credibility through work
on single-use carryout bag regulation and is widely
A D V O C A C YCONTINUED
Continued from p. 45
The grocery industry prides itself on being the soul of the community, hiring local employees, and focusing on products that best serve the community’s needs.
Grocers are in a unique position because they offer a center to the community — a place where families shop, eat, and often, see their neighbors. There are very few other businesses in a community that can be defined as “local.”
While politically, the conversation often focuses on federal and state regulation and the big picture of its effects on our industry, arguably a more important and potent factor of government relations comes in the form of local government initiatives.
Local governments have the power to levy fees, taxes, assessments, strengthen or weaken labor laws, restrict or relax zoning regulations, and generally, control the day-to-day aspects of running a grocery store within a specific community. From delivery hours, to where trucks can unload, to alcohol sales — all are a factor of local government regulation.
The most obvious example of local government trend setting is carryout bag ordinances.
California recently hit its 70th carryout bag ordinance, with local municipalities leading the charge because the State was unwilling to do so. It has been the sheer will of CGA member companies to be active participants in the bag conversation locally that has allowed us to establish the ban/charge model and avoid a patchwork system as much as possible.
ENGAGE: THE IMPORTANCE OF LOCAL
GOVERNMENT PARTICIPATION
Continued on p. 47
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seen as the experts on the subject. The Association’s
sincere effort to find middle ground on this issue has
helped forge new partnerships with some interest
groups. Those relationships give CGA an opportunity
to work with these groups in additional policy areas
like Beverage Container Recycling Program reform.
The same is true in the arena of SNAP and WIC — the
public-private partnerships that help get healthy food
into the homes of lower income Californians. CGA’s
work to identify solutions and find common ground
in areas that ultimately assist recipients has enabled
the Association to work in partnership on issues
relating to vendor management and oversight, and
food choice.
There is work yet to be done in the lobbying arena
in helping CGA become a true thought leader for
state and local policymakers. That will take additional
efforts to help generate policy papers and become
more pro-active on emerging issues.
CGA has improved its reaction to issues, but the
ultimate goal is to also be pro-active and address
issues before they enter the arena of policy mandates.
In short, given the improvements on the lobbying
side, CGA is now able to focus on shaping policy
development and implementation.
Growing the Grassroots
When CGA evaluated its successes and struggles
in 2009, it identified grassroots as an area needing
improvement. Not only did the Association’s lobbying
team need to become more known, it needed CGA
members to develop deeper relationships with elected
officials at all levels. And to do so before having to
make “the ask” on policy issues.
It was clear that while everyone was familiar with
their local grocers, most policy officials knew little
about how grocery stores operate, or what it takes
A D V O C A C Y
LOC AL GOVERNMENT PARTICIPATION CONTINUED
This illustrates the power of participation in local government and what CGA’s membership can do to move a sometimes unmovable State in the direction it needs to go.
Keeping up with the hundreds of jurisdictions, often with less than 24 hours notice, is a real challenge for the Association’s local government relations team. It’s why the team counts on its membership, particularly district managers, store managers and store employees, to keep CGA informed on what’s happening locally; to let us know if a local city council is considering action on any industry issues — shopping carts, plastic bags, alcohol/tobacco sales, zoning changes, waste haul changes, minimum wage requirements.
It’s also why your participation is critical — attending hearings, writing letters, or testifying during public comment periods. Sometimes it takes a village to educate local governments on how their actions can have such astounding effects on store operations. It’s why participation in the local government scene has become paramount to the success of the grocery industry as a whole.
CGA’s success in large part comes from member involvement in events like “Hike the Hill.”
Continued on p. 48
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to be successful. And frankly, when California’s
grocers run stores as well as they do, it can look
easy from the outside.
Our government relations team set about encouraging
the building of relationships between state and local
officials and member companies. We coordinated
several “Groceries and Government” days and “Issues
Forums” to bring local elected officials together with
the industry to talk about issues.
Events in San Jose and Los Angeles saw policymakers
discuss their perspectives and priorities and allowed
member companies to interact without an agenda.
CGA worked to encourage individual companies to host
store tours with local officials to explain the challenges
grocers and food manufacturers face in providing
consumers with high quality, low cost product.
On a State level, CGA strengthened its Grocers Day
programming to ensure participants heard from key
policymakers and met with legislators representing
districts where they operate stores, distribution
centers and manufacturing facilities.
CGA created a “Hike the Hill” program to bring
member companies to Sacramento for specific
issue lobbying. In addition, CGA encourages
member companies to host state lawmakers on
store tours, similar to the Association’s local elected
officials program.
Those efforts have definitely shown success.
CGA is known in Sacramento and in cities and
counties statewide in ways never before imagined.
Companies large and small are developing lasting
connections to lawmakers, which is even more
important as their tenure is expanded through recent
changes to term limits. All politics are local, after all,
and CGA has made great strides in localizing our
industry for policymakers at all levels.
In 2013, CGA is looking to enhance its grassroots
programs even more.
This year, in an effort to simply meet the 40 new
“Legiboomers” before policy issues arose, the
Association used the “Hike the Hill” format to bring
member companies to Sacramento and meet with 20
separate legislators.
Companies had an opportunity to highlight their
contributions to the community in terms of
A D V O C A C YCONTINUED
Continued from p. 47
Local governments in California can pass new laws, called ordinances, in an incredibly short amount of time — as quick as 10 days.
In contrast to the State Legislature or Congress, local governments meet year round and generally convene every week. The manner in which they meet is also dramatically different. Members of the public are not only invited, but encouraged, to play an active role in the deliberations. These rules apply universally to a city, county or special district. Here is how it works:
Passing an Ordinance:
n Local governments release an agenda a minimum of 72 hours before the meeting, and most provide just the minimum notice required. If an ordinance is not listed on the agenda in advance, it cannot be considered at the meeting.
n When an ordinance is initially addressed by the elected body it is called a first reading. The elected officials may amend or vote on the ordinance with a simple majority vote required for approval in most cases.
n If an ordinance passes on first reading, it is then scheduled for second reading at a subsequent meeting where it must again receive a simple majority vote. Often, ordinances up for second reading are placed on a Consent Calendar, where they are not discussed and passed with other second reading ordinances as a package.
n If passed on second reading the ordinance becomes law. In a few large jurisdictions, including the cities of San Francisco and Los Angeles, the mayor may have veto power similar to the governor.
FAST AND FURIOUS — LOCAL GOVERNMENT PROCESS
Continued on p. 49
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employment and charitable efforts. Lawmakers had
an opportunity to share their own history and outline
what priorities they would pursue in the coming
legislative session.
In addition, we are working to host a dinner for
Freshman legislators the evening before Grocers
Day at the Capitol. The event will offer participating
companies the opportunity to dine with two different
lawmakers during a seven-course demonstration
dinner at one of Sacramento’s most exclusive
restaurants. Breaking bread is a traditional way of
building bonds. It will be a tremendous event.
Plans are under way to find new and creative ways to
reach state and local officials with similar programs,
and with enhancements to our prior efforts around
the store tours concept. CGA is looking to engage
lawmakers for longer periods of time and provide a
more holistic view of the retail food industry — from
farm to store. This will be accomplished through
partnerships with others in the industry and increased
participation from CGA member companies.
Participating in the Politics of Politics
Let’s face it, the politics of politics is key to success in
the policy arena. The best opportunity for common
ground on specific policy issues is beginning with
lawmakers that share our industry’s world view.
Lawmakers rarely go against their core values in
crafting policy. It’s incumbent upon our industry to
work hard to make sure we participate in the election
process. We want like-minded individuals elected to
office and want to see them have long careers. CGA
has labored to increase the power of its Political
Action Committee (GROPAC) and Independent
Expenditure Committee (IEC). And we’ve seen some
modest success.
CGA has significantly raised the profile of both
GROPAC and the IEC through increased participation
in key races. The Association has made it onto the
call list of lawmakers up and down California and for
the first time has begun participating in selected local
races, particularly in the Los Angeles area.
A D V O C A C Y
Local Meeting Process:
n When an ordinance is taken up at a meeting it begins with staff making a presentation on the ordinance and its purpose.
n Then elected officials are then allowed to ask questions of staff, but cannot make a motion to pass or suggest amendments.
n The elected body is then mandated to hear comments from the public regarding the ordinance. As many people can speak as they want, but they are usually limited to no more than 3 minutes. At the state and federal level, the public often does not have the privilege to address elected officials directly as they are deliberating.
n When public comment is complete, the elected officials then discuss the issue amongst themselves since they can’t discuss the issue with each other in private.
n Finally, it takes one member to “Move” the ordinance and another to “Second” it. Then they vote.
LOC AL GOVERNMENT PROCESS CONTINUED
Continued on p. 50
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CGA’S GOVERNMENT REL ATIONS LINE-UP
Keri Askew BaileySenior Vice President, Government Relations and Public Policy
Keri Askew Bailey joined CGA in 2009, after 15 years in the public policy arena.
She started with the California Legislature, working in the office of a Central Valley representative. She joined the staff of a newly-elected Assemblymember as a legislative Aide and later was named Chief of Staff. She then joined the California and Nevada Credit Union Leagues as lobbyist and later Manager of the Government Affairs department.
Sarah Paulson SheehyDirector, Local Government Relations, Southern California
Sarah Paulson Sheehy joined CGA in 2011, after three plus years at Cerrell
Associates, a Los Angeles-based lobbying and consulting firm, where she was responsible for media relations and communications, advocacy, and grassroots development for a variety of clients. She has worked for public and private entities including Miramax Films, the Los Angeles Unified School District and Shallman Communications.
Tim JamesManager, Local Government Relations, Northern California
Tim James is entering his eighth year as CGA’s Northern California Local
Government representative. Prior to joining the team, he served as a Chief of Staff for a Sacramento County Supervisor and has worked for a California State Senator. Tim has also lobbied local, state and federal elected officials on behalf of a statewide industry association and regional chamber of commerce.
Dane HutchingsManager, Government Relations
Dane Hutchings joined CGA in March 2013. He began working with Ogilvy Public Relations Worldwide in 2010,
serving as the interface between the Government Affairs and Public Affairs practice areas. Prior to that, he was a legislative aide for Mattos & Associates, a government relations firm specializing in association management, PAC fund contribution strategy and direct advocacy to the California Legislature.
A D V O C A C YCONTINUED
CGA opened an Issues PAC to weigh in on state
propositions with a major victory in the defeat of
Proposition 37 in November, 2012. The Association
wasn’t satisfied to just contribute to the effort—it
decided to take a leadership role and speak for
retail grocers so their perspective wasn’t lost in
the debate. We contracted with a renowned public
affairs firm to create educational material that
avoided direct advocacy.
Looking forward, CGA plans to redouble its efforts
in terms of generating member support for its
political accounts. The government relations team
will keep much of our participation within our
industry, working to coordinate private events for
CGA and participating member companies, rather
than attending large receptions or sporting events that
provide little opportunity for dialogue with candidates.
CGA has already conducted several with great success
and have more in the planning stages. n
Continued from p. 49
CGA lobbyist Louie Brown discusses carryout bag legislation with Keri Askew Bailey, CGA.
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IT’S AN OLD SAW THAT YOU’VE HEARD IN
DIFFERENT WAYS 100 TIMES. BUT IF YOU LOOK UP
THE WORD “COMMITMENT” IN THE DICTIONARY
YOU’D FIND AL PLAMANN’S PICTURE NEXT TO IT.
For nearly 25 years, Al Plamann, who is retiring in May
as CEO of Unified Grocers, Inc., has been a guiding
force, not only to the company but to the industry
through his expertise, judgment and dedication to a
wide array of business projects, education, community
outreach programs, and a focus on creative thinking
and strategic planning that has made Unified one of
the pre-eminent wholesalers in the industry.
“I’ve worked with Al for 17 years,” says incoming
Chairman and CEO Bob Ling. “When he became
CEO we were a California company with $1.8 billion
in sales. But his vision was to grow the company and
make it not only a significant regional player but
nationally acknowledged for our expertise. I’d say the
mission is accomplished.”
Plamann’s significant industry knowledge was tapped
by California Grocers Association President Ron Fong
when he took the reigns of the statewide trade group
five years ago.
“When I came on board in 2008, I wanted an
honest assessment of the grocery industry and the
issues we face,” Fong recalls. “Al was one of the first
individuals I met with. His insight was invaluable in
understanding the lay of the land.”
Continued on p. 54
AL PLAMANN LEAVES 25 YEAR LEGACY
A L P L A M A N NBY LEN LEWIS
A L P L A M A N N
“Much of our growth has been spurred by a focus
on areas of consumer growth such as perishables,
natural and organic products. During Al’s tenure,
we really reinvented our specialty business and it’s
been a significant part of our growth. Just look at the
numbers. We’ve doubled perishables sales in the past
five years and, thanks to Al’s dedication, have passed
the $1 billion market in that category alone,” Ling said.
As Leslie Sarasin, President and CEO of the Food
Marketing Institute, stated when presenting him with
the coveted Herbert Hoover Award for humanitarian
business efforts: “Al Plamann is legendary among
wholesalers and his abiding commitment to serving
independent retailers mirrors his altruistic regard for
the individual.”
During his career in the grocery industry,
Plamann has been deeply involved in a number of
organizations. In addition being on the CGA Board of
Directors, he has served on FMI’s Industry Relations
Committee; as director of the National Consumer
Cooperative Bank; vice chair of the economic advisory
council at the Federal Reserve Bank of San Francisco;
on the board of the Los Angeles Area Chamber of
Commerce; and a member of the board of visitors
at the George L. Graziado School of Business at
Pepperdine University.
He has also supported many community-based groups
including the Boy Scouts of America, City of Hope
and the Weingart Center Association, which provides
assistance to the homeless in the Los Angeles area.
After receiving his B.S. in accounting and real estate
from the University of Colorado, and an M.B.A from
the Wharton School at the University of Pennsylvania,
Plamann went to work for Atlantic Richfield Company,
where he held various executive posts in different
divisions for about 13 years — including California.
He turned down a promotion at ARCO in
Dallas, preferring to keep his family together in
Southern California.
“I decided it was time to try something different and
that’s when I got an opportunity to change careers,”
he said.
So, in 1989, he became senior vice president and chief
financial officer for Certified Grocers of California,
Ltd., and took over as president and CEO in 1994.
The move was a positive one for Plamann and
his family.
“My son was going into high school at the time and
my daughter was in junior high,” Plamann recalls.
“We had made a lot of friends at ARCO in Los
Angeles. We had been moving every two or three
years, but families typically don’t think in terms of
career paths and this was a chance to settle down.”
Plamann said the move from the oil industry to
grocery distribution was significant.
“It was a huge change,” he said. “In the oil business
I was looking at financial situations through the lens
A L P L A M A N NCONTINUED
In 2004, Al Plamann was recognized by the CGA Educational Foundation for his dedication and commitment to California’s grocery industry by inducting him into its Hall of Achievement. This prestigious award honors individuals who have contributed substantially to the benefit and advancement of the food industry.
FOUNDATION HONORS PL A M ANN
In 2009, Al was privileged to present the CGAEF Hall of Achievement Award to Darioush Khaledi, K.V. Mart Co. Continued on p. 56
“ Al Plamann is legendary among wholesalers and his abiding commitment to serving independent retailers mirrors his altruistic regard for the individual.”
Bill Cole, professional speaker
Continued from p. 52
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A L P L A M A N NCONTINUED
of five and 10-year projects. When I got to wholesale
grocery, I had to look at weekly and daily sales. It was
startlingly different and a big learning curve for me.”
Plamann said he made the assumption grocery
was a simple business, but quickly discovered the
complexity of logistics, warehousing and financing.
Of course, he also had some great teachers.
“So many people have been my mentors like Lou
Amen, Darioush Khaldedi, Jack Brown, Dick
Goodspeed, Larry Del Santo, Roger Hughes, Paul
Gerard, the list goes on and on and they were all
important influences,” he said.
However, he echoed the sentiments of many of his
contemporaries noting that the business was still far
simpler years ago.
“We’ve seen the migration to dramatically different
formats, changes in consumer demographics
and varying buying patterns in areas our retailers
operate in,” he said. “We’ve been able to consolidate
wholesaling operations so we can be considerably
more efficient up and down the West Coast.”
Much of that has involved new technologies for
retailers, warehouses and transportation systems.
“For instance, we know exactly where our trucks
are all the time and it’s dramatically changed our
business,” Plamann said. “Of course the ability to do
transactions electronically instead of on paper, and to
monitor shopper behavior on a real time basis, both
had a big impact on the business.
“These efficiencies have been able to successfully
offset the inflationary issues that have put intense
pressure on other industries,” he said.
Asked about other changes at Unified during his
tenure, Plamann remarked: “I think we’ve really
improved transparency — the ability of our retailers to
see product availability, price and deals on a real time
basis. We’ve continually invested in this area in order
to upgrade our services to retailers.”
But it’s not all about technology. It’s about connecting
with retailers.
“I’ve tried to instill the notion that we must
understand our member owners and their customers
as well as they do in order to be an effective
wholesaler,” he said. “Additionally, we’ve been able to
facilitate purchases of stores for our retailers by either
financing, or guaranteeing a lease.”
While Plamann has seen numerous retailers come
and go over the past 25 years — some falling by the
wayside and others swallowed by bigger chains —
he believes there’s still plenty of room for growth.
“In the time I’ve been here I’ve seen Superior
grow from two stores to 30 and similar growth for
companies like Northgate Gonzalez, El Super and a
raft of other independents in Southern California,”
Plamann said. “I think they would tell you it’s because
Unified has been very supportive.”
Through it all, Unified has become a better company
because it has quickly adjusted to changes in the
marketplace, said Plamann, who has a positive attitude
about the future of the company and for business
in California.
“It’s going to be a difficult environment,” he
admits. “We have to continually adapt to changes in
Continued from p. 54
Continued on p. 58
While Plamann has seen numerous retailers come and go over the past 25 years — some falling by the wayside and others swallowed by bigger chains — he believes there’s still plenty of room for growth.
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on your retirement Al!
Congratulations
Best Wishes from,
Your friends at
©20
13 G
ener
al M
ills
California, and on the national scene. There will be
a continuing focus on food safety and on reporting
requirements that weren’t here 20 years ago, like
country of origin and front of package labeling.”
He believes the industry is going to need more
certified food safety handlers in stores and more
reporting on how food is processed.
“The food industry must react to all of it,” he said,
“But as long as we demonstrate that the food system is
safe and healthy, and that our retailers are concerned
about those issues, we’ll be in a good place,” he said.
CGA’s Fong agrees, adding that Plamann leaves the
industry at a key transitional time.
“Millennials have shown that they shop different
than Baby Boomers,” Fong said. “In California, our
population demographics have changed dramatically
since 1989. The playing field is significantly different.
To succeed, retailers are going to have to adapt quickly.”
Some of this will depend on relationships between
wholesalers, retailers and manufacturers, according
to Plamann.
“Some manufacturers are focusing on the growth in
Internet shopping, and I can see a growing trend for
them to go direct to consumers,” he said. “This puts a
strain on three-way participation.”
Plamann said getting products through the
checkstand must be a partnership, not a war. That
requires strong relations with the vendor community,
a concept that must constantly be cultivated.
Although it can be fun to look back, the future of
the business is more important. In this regard,
Plamann believes in focusing on the next generation
of retail operators.
“They are the ones that will steer the business as we
move forward,” he counsels. “I have to say that their
thinking is quite different than past generations.”
To address this trend, Unified has established a
council of younger owners to ensure the sharing of
ideas regarding the direction of the business.
“For the most part, we’re just listening and gathering
information on what they see as major changes in
their shoppers’ habits and how we at Unified can
support that,” he said. “We can assist them with the
technology to talk to shoppers, monitor their behavior
patterns through the use of shopper panels, or work
with the vendor community to learn what data they
are capturing.”
Plamann said Unified wants to enhance its retailers’
ability to be competitive within their neighborhoods
by recognizing that each store has its own personality,
culture and needs.
“The days when you could create one cookie cutter
store for the Western U.S. are over,” he said.
One of the things he will always cherish is his
relationship with CGA over the years.
“It’s been a warm and positive relationship,” Plamann
said. “The organization has done such a great job over
the years. Other state associations have come and gone,
but the commitment of both independents and chains
to support CGA has made it stronger and a highly
effective voice in regulatory and legislative affairs.”
So, what’s next for Al Plamann?
“I’m looking forward to continuing to serve on several
boards,” he said. “I need a little bit of running room
to think about what I’d like to do. I don’t want to lose
touch with the industry. I put blood, sweat and tears
into it and I think of myself basically as a grocer. I love
wandering through stores to see what’s being done.”
Asked if he’s considered buying a couple of stores,
he mused: “One of my friends suggested that,
but that would be like going from the frying pan
into the fire.” n
A L P L A M A N NCONTINUED
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 United States 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.
Continued from p. 56
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Congratulations on your retirement!The Unified Team
Al PlamannA Unifying Force Since 1989
Ph: 800-724-7762 | unifiedgrocers.com
Compassionate
Innovative
Insightful
Dedicated
Respected
Compassionate
Innovative
Insightful
Dedicated
Respected
Congratulations Al!Thank you for
being a great partner.Enjoy your retirement!
From your friends at
Bristol Farms
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A CHANGING OF THE GUARD
A C H A N G I N G O F T H E G U A R DBY LEN LEWIS
THERE’S AN OLD SAYING THAT THE MORE THINGS CHANGE, THE MORE THEY REMAIN THE SAME.
That seems to be an apt description for Unified
Grocers, Inc., and also its legacy. What changes are
the challenges facing its members. What remains
the same is an ever-strengthening wholesaler and a
consistently creative and diligent management.
The latter is headed for another change when Bob
Ling takes over as President and Chief Executive Officer
this May following Al Plamann’s retirement. After 16
years in executive posts at Unified and many more in
the retail supermarket and drug store industry, Ling is
well suited to take over the reigns.
California Grocer got the opportunity to sit down with
him to talk about Unified’s future.
Continued on p. 64
A C H A N G I N G O F T H E G U A R D
California Grocer: We’ve talked quite a bit about
Unified’s growth in the past few years, but where does
the company go from here?
LING: “We’re looking in a number of different
directions. First of all, it’s important to understand
we’re a reflection of our membership. Their success
is our success and vice versa.
“Everyone in the industry, including independents,
has been navigating challenging economic times.
Hopefully we’re approaching the end. Through it all
though, our core membership group has constantly
readjusted itself. That’s made us stronger and well
positioned to take advantage of opportunities out
there today.”
CG: It’s nice to be dealing from a position of strength.
LING: “Yes, but let’s not forget the recession really
isn’t over. We still have work to do with respect to
taking advantage of competitive opportunities and
making sure we remain responsive to consumer
needs and trends.”
CG: What’s Unified focusing on in terms of trends?
LING: “We’re continuing to expand through our
Market Centre subsidiary, by reaching out to emerging
demographics who might be underserved — whether
it’s consumers of a certain age, ethnicity or with
certain health concerns. Healthy eating seems to be
the overriding trend among all consumers. We have
expanded our natural product offerings starting in the
Pacific Northwest, and it’s being rolled out throughout
our marketing area as we speak.”
CG: What does that consist of?
LING: “Well, natural is an imprecise and somewhat
undefined description. It all goes to the notion
of healthy eating whether focusing on whether a
product is locally grown, or what is in a manufactured
product. At the same time, we have to retain a value
proposition for our members and consumers.”
CG: How?
LING: “We have to be agile enough to serve various
formats that are addressing different components of
the market. Just because a store is focused on value
doesn’t mean their customers aren’t concerned about
healthy eating. So we’re looking for ideas, concepts
and trends across all formats.”
CG: Are independents in a good place to take
advantage of these trends?
LING: “Absolutely. One of the greatest advantages
independents have is the ability to micro-market
in individual neighborhoods as consumers there
identify their wants and needs.
“Independents have been doing this for years. It’s
their major strength. We are also getting smarter
about it by using information technology to identify
consumer needs and coordinate with our friends in
the vendor community to make sure products are
going to the right shoppers.”
CG: What do members tell you they’re looking for?
A C H A N G I N G O F T H E G U A R DCONTINUED
“ We have to be agile enough to serve various formats that are addressing different components of the market. Just because a store is focused on value doesn’t mean their customers aren’t concerned about healthy eating. So we’re looking for ideas, concepts and trends across all formats.”
Continued on p. 66
Continued from p. 62
In 2009, Bob Ling served as CGA Chairman of the Board.
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A C H A N G I N G O F T H E G U A R DCONTINUED
LING: “They want us to be as efficient and cost
effective as possible. They also need our assistance
in providing information that helps them make store
level decisions. They want Unified to remain strong
so they have a solid partner and supplier that can help
them expand their businesses.”
CG: What does that partnership mean these days?
More than just supplying product?
LING: “Yes. We have a major initiative underway
involving the accumulation and analysis of sales
data within stores. Increasingly, retailers are sharing
scan data that is helping us build an infrastructure
capable of bringing them information about how to
make better decisions — how to better organize and
run their stores. It will also allow us to communicate
what’s going in our stores to the vendor community.”
CG: Does this mean Unified is becoming a data
warehouse?
LING: “Well, this is not just accumulating data, but
analyzing it to drive sales.”
CG: How far along is this project?
LING: “We’ve been at it for a while. It’s a major
initiative for this year and we are signing up more
members every day.”
CG: Are you doing it in-house or utilizing outside
partners?
LING: “We are working with third-parties who are
experts in the field. We have experts on staff as well.”
CG: So, you’ll have detailed data on every store when
it’s up and running completely.
LING: “It’s not only about individual members, but
also to identify trends within specific markets. It will
help our members communicate better with their
customers.”
CG: And identify which formats work better in
particular areas?
LING: “That’s part of it. But it really gets down to
which products and brands fit best in a particular
aisle or store — which SKUs should be on the shelf
to fit in with the community and to make sure we’re
responding to emerging trends.”
CG: Is there a target date for completion?
LING: “We’re in the implementation process now.
Some of the benefits will be seen this year. The project
will continue to evolve over the next couple of years. As
the information changes we’ll get better at analyzing it.
We’ll be sharing the benefits with our members as we
continue to build this tool.”
Continued from p. 64
Continued on p. 68
Bob Ling (center) with Mike Read (left) WinCo Foods, Inc. and Ron Fong (right) CGA.
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CAGrocersAd2013_Layout 1 3/22/13 3:58 PM Page 1
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Thank you for all you’ve done Al! Best wishes to your continued success!
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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 United States 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.
A C H A N G I N G O F T H E G U A R DCONTINUED
CG: Does Unified have other priorities over the next
year or so?
LING: “We have a focus on customer satisfaction
and that’s in large part a function of our warehouse
operations. We will continue to invest in the best
management systems to become more efficient. We
are also constantly engaging employees to make sure
everything from the ordering process to final delivery
is done efficiently. Our goal is to be as accurate and
timely as possible.”
CG: Is there an opportunity for Unified to increase its
member base?
LING: “There’s a lot going on in our Western
marketing area. Several companies have already
announced they will be divesting stores and that’s
always a great opportunity for our members. We’ll
see that in all of our trading areas.”
CG: What’s Unified doing to facilitate those
opportunities for independents?
LING: “We’re helping organize those opportunities
by approaching sellers and working closely with our
retailers.”
CG: Are you exploring new types of members?
LING: “There are opportunities to expand in certain
areas. One we are looking at carefully is to expand our
Asian product offering. It is clearly a demographic
of significant growth and complexity. We’re getting
better at understanding it and bringing in some
different offerings.”
CG: As you look at the West Coast markets, what do
you see as the biggest challenges for Unified and its
members?
LING: “Well, the retailer who’s in the middle has
always been at risk and that’s truer now than ever.
The retailer who is only selling price is probably
limiting their opportunities. The key to growth of
the independent is differentiation, not a mass-market
approach. I think our members have been pretty good
at doing that. But it’s something that’s on-going.”
CG: Basically, are you positive about the economic
environment in the West? Are we going to see
improvements as the year goes on?
LING: “Despite limited evidence I’d say we’re
cautiously optimistic. I don’t think we’re going to
wake up one day and all of California, Arizona,
Washington and Oregon will have turned the corner
on economic growth.
“I think everyone agrees it will start with pockets of
growth in different areas and from there we’ll gain
some momentum. Hopefully, that will translate into
a broader economic recovery later this year. One
thing we look at very closely is the housing market —
particularly in California. Housing drives the economy
here and there are early signs of a recovery. It’s too
early to say whether it’s a bump or a trend, but I’m an
optimist at heart.” n
Continued from p. 66
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Al Plamann and
Bob Ling
Congratulations
From your good friends at Smart & Final Holdings, Inc.
CongratulationsAl Plamann
on your retirement.We have enjoyedworking with youover the years.
would like to thankAl Plamann for his years ofservice to Unified Grocers
and our great industry.TM
Neighborhood Market
Dear Al,
Congratulations from your friends at fresh&easy
on your retirement. Your contributions to the grocery
industry and the communities you serve are
immeasurable. We wish you the best as you embark
on your next exciting endeavor.
c ngratulations
fresh&easy FNE-PRNT-PP1 v3 " x " xx.xx.13
04.12.13 F&E_Retirement_CG_HfPg_ California Grocer 7.375" x 4.875" 04.xx.13
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CongratulationsAl Plamann
on your retirement.We have enjoyedworking with youover the years.
would like to thankAl Plamann for his years ofservice to Unified Grocers
and our great industry.
CA
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T H E C L O C K I S T I C K I N GBY LEN LEWIS
THE CLOCK
IS TICKINGAs the nation counts down to implementation of a
massive healthcare reform package, businesses from
agriculture to retailing are more concerned than ever
about the cost of the new regulations, the impact
on hiring and staffing, and its potential to derail an
already fragile economy.
This is the scenario surrounding the Patient Protection
and Affordable Care Act (ACA), derisively referred to
as “Obamacare,” which is slated to go into full effect
in 2014.
At present, actions to repeal or amend more onerous
parts of the law or overturn the legislation completely
have failed. As such, retailers, consultants and legal
observers worry that the Administration’s attempt to
short circuit steadily rising healthcare costs will simply
result in complex and unclear provisions, job limits
and even higher costs for employers and workers.
“The shared responsibility rules could affect retailers
in different ways,” said Adam Solander, an attorney
for the Washington law firm of Epstein, Becker and
Green, which also represents the health council at the
National Grocers Association (NGA). “It’s a mixed bag.
In certain situations, the rules provide some helpful
guidance. In others, the industry will be adversely
affected by virtue of our size.”
For example, the 2012 Independent Grocers Financial
Survey, published by the National Grocers Association,
reported the financial impact of changes to health
insurance through ACA is ranked as the No. 1 concern.
Overall, expansion of health insurance coverage under
ACA will cost about $1.2 trillion over the next 10 years,
according to figures from the Congressional Budget
Office (CBO).
This will provide insurance for an estimated 27 million
more people, CBO estimated. But 7 million others may
lose employer-based insurance as more companies cut
staff, or opt to pay the fine for non-compliance.
The Kaiser Family Foundation, a non-profit
organization focusing on health care issues, has
estimated that the price of covering a minimum wage
worker under ACA could rise by $3,000.
Nationwide, it’s been estimated that minimum
labor costs will rise to $10.03 per hour for a full time
employee and $13.75 per hour for family coverage.
Mercer Consulting, in its National Survey of Employer-
Sponsored Health Plans, has calculated that the
average cost of health insurance per employee will
increase about 6.5 percent this year, and that 58
percent of employers surveyed plan to shift costs to
employees to offset the increase.
One of the biggest issues is that employers with 50
or more full-time equivalent employees must offer a
“minimum essential benefits package” insurance to
those working 30 hours or more, or pay a $2,000 fine
for each uninsured worker. In fact, some employers
are capping employment at 49 people and have
acquired the name “49ers.”
Continued on p. 74
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T H E C L O C K I S T I C K I N GCONTINUED
The irony is that it is cheaper in most cases to pay the
penalty then provide insurance coverage.
However, Solander warned that this could be a
dangerous strategy.
“A local store’s standing in the community could take
a hit if you’re seen as not caring about employees,” he
said. “Additionally, the penalties are not tax deductible
so you’d lose your tax preferred status and you might
make yourself more susceptible to unions.”
Not everyone believes that
cost is a major issue.
The Health Policy Center
at the Urban Institute, a
Washington, D.C.-based
think tank, believes that
price hikes for large and
small firms would be
negligible. In fact, small businesses with fewer than
50 workers would be exempt from penalties.
“Our analysis shows that, on average, employers
(with fewer than 100 employees) will find average
costs per person insured reduced by 7.3 percent,”
the Institute noted.
This is when it becomes cheaper for firms to pay
the penalty for non-compliance, observers said. It
also provides an incentive to hire part-timers instead
of full-time employees to avoid penalties, thereby
discouraging job creation and pricing many unskilled
workers out of full-time employment.
Conceivably, this could push workers toward state- or
federally-run insurance exchanges, most of which
have not yet materialized. Some believe they will
function like Amazon and Expedia, enabling people
to choose between various health plans. But no one
knows for sure.
Peter Lee, Executive Director of Covered California,
the first state-run healthcare marketplace, noted that
several hundred thousand state residents might forgo
employer-sponsored plans to sign up for insurance
through the exchange.
Meanwhile Walmart, which has already launched
clinics, Medicare drug coverage plans and corporate
wellness programs, is exploring the possibility of
establishing a private health insurance exchange
for small businesses that could leverage the chain’s
buying and marketing power. Walmart’s exchange
would compete with government-run marketplaces,
but would not be eligible to offer tax credits.
However, there is evidence that exchange-based
insurance will be little help for employers, or
individuals that might be forced to buy into because
they will only provide basic services and give people
a very narrow network of providers to choose from,
sources noted.
In addition to coverage quality, concern is high
that these plans will still be expensive because the
insurance companies believe low-priced insurance
from the exchanges will be an incentive for employers
to “dump” more employees onto the exchange,
according to comments by Scott Gottlieb, a physician
and member of the American Enterprise Institute.
“We’ll have exchanges in 2014, but I don’t know how
they will work so it’s hard to predict whether they will
be good or bad,” said Solander. “At the core level this
is a good idea for smaller employers because it allows
them to buy insurance like a large company. Having
employees choose their plan through an exchange
could be a valuable option.”
Assessing the rest of ACA as it stands now, Solander
noted that the mandate which specifies 50 full-time, or
Peter Lee, Executive Director of Covered California noted that several hundred thousand state residents might forgo employer-sponsored plans to sign up for insurance through the exchange.
Continued on p. 76
Continued from p. 73
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T H E C L O C K I S T I C K I N GCONTINUED
full-time equivalent employees could favor an industry
using so many seasonal and part-time workers.
“There is an exception that allows us to take seasonal
workers out of the equation when determining
whether we actually have 50 employees that are
subject to ACA mandates,” he said.
There are specific definitions, though. Part time is
defined as those working less than 30 hours per week
and seasonal less than 120 days per year.
“If stores hire extra clerks around Thanksgiving
and they work 40 hours, but there is no intention to
continue their employment, then that person does not
have to be included in the employee count,” he said.
“This break in service rule is also helpful if an
individual hasn’t worked for 26 consecutive weeks.
That person can be treated as a new employee to
determine whether they have to be provided with
coverage,” he added.
Another potentially big issue is the Look Back Stability
Safe Harbor Period.
“It allows us to choose a look back period of time
between three months and a year for ongoing
employees,” Solander said. “If they started on
January 1, 2013, you calculate all the hours they
work until January 1, 2014. If that person averaged
30 hours per week, you have to treat them as full
time going forward. If not, you can treat them as
part time and would not have to provide coverage,
or be subject to penalties.”
Given the current political climate on Capitol Hill,
and the scant likelihood of amending ACA, Solander
said many companies are engaged in what he calls
“population management” under which workers’
hours are being cut to a maximum of 28 per week.
“That’s going to hinder our ability to recruit and retain
people,” he said. “We have good employees, but if they
can’t get extra hours they won’t be very happy and
that’s not what an employer wants.”
Solander says his clients feel terrible, but “we can only
do what our bottom line justifies and the rules are
forcing us to make those determinations.”
He says if a company uses a year of Safe Harbor, it
needs to manage its employees’ hours to make sure
that those it can’t afford to pay benefits for are not
working over 30 hours per week.
Tools published by the Employee Benefits Security
Administration (under the Department of Labor)
can give retailers a baseline for how they are doing
in terms of compliance. Solander recommends all
employers review it immediately and meet with their
human resource departments.
Meanwhile, wellness rules are also a key part of the
upcoming reform.
“One of the real benefits of healthcare reform is that
it allows us to provide employees with an incentive of
up to 30 percent of the premium for participation in
a wellness program,” he said. “It’s important because
this is the only lever that employers have to bend the
cost curves.”
Solander urges employers to get their employee
population healthier.
“We have to change the way we pay for healthcare and
this will lower costs,” he added. “We can no longer
justify paying on a procedure basis. We must make
sure employees are getting high quality procedures
that keep them out of the hospital.” 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 United States 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.
Solander urges employers to get their employee population healthier.
Continued from p. 74
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Proud to be a partner withUnified Grocers
CONGRATULATIONS AL PLAMANN ON YOUR RETIREMENT.
If Ben Stein is right, one couldn’t find a better medium
in which to grow lasting and meaningful relationships
than The Illuminators, an organization that dedicates
itself to building relationships and scholarship
opportunities throughout the grocery industry.
“The personal relationships formed in this
business are very important,” says Ed Hepler,
Western Sales Director for Hain-Celestial and
incoming Illuminator Headlite.
“Even during difficult times, people still make the
decisions and those involved with The Illuminators not
only support this organization, but also the California
Grocers Association and the Western Association
of Food Chains,” he says. “There is a symbiotic
relationship that develops between members of these
organizations and everyone feels a real obligation to
help each other build a solid business. It’s hard, but
fun work and everyone is passionate about it.”
Hepler, a 32-year veteran of the grocery business who
has been with companies like Georgia Pacific, Nestle,
Sara Lee and now Hain for the past five years, believes
relationships forged through associations like The
Illuminators have helped a lot of companies deal with
the enormous changes taking place in the industry,
including consolidations and the movement of people
that come with the changing tides.
“The Illuminators has been one of the few constants,”
he says. “We’ve been around almost 90 years and
we’re one of the most relevant, admired and impactful
sales trade associations in the entire grocery industry.”
He attributes The Illuminators successes to its
involved members. The Illuminators is a voluntary
organization whose active members have a real
passion for supporting the industry’s future.
“Our efforts to facilitate events such as supplying
greeting bags filled with member-donated products,
hospitality, golf tournaments, meals and special events
at the CGA and WAFC conventions are unsurpassed
by any other club,” he says. “By enhancing the
convention-going experience for attendees, we’ve
helped create a better convention for everyone.”
Moreover, he believes The Illuminators are not only a
valuable asset for people in the industry, but for those
just entering the grocery business as well.
“Part of our future marketing effort is to attract new
members — especially people who want to do more
than their regular eight-to-five jobs and go home,”
Hepler says. “If you want to step it up, really get
engaged in the industry and rise above the crowd,
then you should become an active Illuminator.”
“In fact, you should aspire to become a board member
and ultimately an officer,” he recommends. “The
more engaged you are in the organization, the more
you will benefit from your membership.”
TH
E IL
LUM
INA
TO
RS
Meet Ed Hepler: Illuminator HeadliteBEN STEIN ONCE SAID, “PERSONAL RELATIONSHIPS ARE THE FERTILE SOIL FROM
WHICH ALL ADVANCEMENT…ALL SUCCESS…ALL ACHIEVEMENT IN REAL LIFE GROWS.”
Continued on p. 81
Ed Hepler with Larree Renda, Safeway Inc.
“Our efforts to facilitate events such as supplying greeting bags filled with member-donated products, hospitality, golf tournaments, meals and special events at the CGA and WAFC conventions are unsurpassed by any other club.”
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†No artificial flavors, colors or preservatives. *These statements have not been evaluated by the Food & Drug Administration. This product is not intended to diagnose, treat, cure or prevent any disease.
Natural Leadership Since 1969
1Nielsen Market Structure Analysis, 2012 | 2 Gallup Study of Hot Tea, 2011
We’re evolving our brand to meet even more
of your customers’ needs – from Specialty
Teas to Natural† Shots and beyond.
A Leader In Social Responsibility Our ethical trading practices inspire us to purchase our
core botanical ingredients directly from the communities
that grow them.
By using natural fiber tea bags without strings, tags,
staples or individual wrappers, we keep more than 3.5
million pounds of material out of landfills every year.
Congratulations!Celestial Seasonings® honors our own Ed Hepler as the new Illuminator Headlite.
Your leadership inspires us!
celestialseasonings.com
Celestial Seasonings is the #1 brand in Specialty Tea
sales across all retail channels.1
We lead the Specialty Tea category with almost 80%
brand awareness.2
A Leader In Specialty Tea
©20
13 C
eles
tial S
easo
ning
s, In
c.
Given the group’s highly successful membership
drives, people are taking notice.
“The Illuminators thrive by improving what we
deliver to existing and new members,” he says. “For
instance, we’ve greatly enhanced our website, added
online registration for events, added local Illuminator
Retailer Exclusive Dinners, improved the process of
new member involvement, and improved the quality
of our roster. ”
Additionally, The Illuminators have a very
strong financial position that pays for an active
scholarship fund.
“All the money raised over and above what we
need for operations goes to the Illuminators
Educational Foundation,” says Hepler, noting the
organization awarded over $1 million since the
inception of the foundation. The funds channel
through the Illuminators Scholarship Program,
CGA and WAFC programs.
“If someone is looking for a way to support the
industry’s future, we’re the organization that makes it
happen,” he adds, noting the organization completed
this year’s scholarship application process on February
15. Consequently, The Illuminators will grant eleven
scholarships to deserving, food industry affiliated
students this May.
“The scholarship program is very valuable because
the food industry tends to be one you grow up in,”
Hepler says. “There aren’t a lot of people coming from
other industries into middle management. When
you come in from the beginning, you build personal
relationships that stay with you over the course of your
entire career.”
Looking ahead to the balance of 2013 and beyond,
Hepler said the group, which created a new mission
statement at its last strategic planning meeting, is in
the process of fine tuning its plans.
“Many of our goals are geared toward increasing our
membership and getting people more involved as
active members,” he says.
At present, The Illuminators have about 250 members,
with a goal of reaching 350.
“We are considering hiring a marketing company
to assist us,” he says. “This may include advertising
in various trade journals and utilizing other media
support outlets.”
“We recently secured a treasure trove of spectacular
testimonials about The Illuminators from some of
the biggest grocery retailer names in the industry. We
are extremely grateful for these tributes and are using
them in an effort to attract new members.”
“Our focus over the next year involves building active
membership, perfecting the execution of Illuminator
events, and expanding leadership, partnering, and
educational opportunities amid the grocery industry.
All while maintaining our stance as the most
admired sales trade association in the industry.
“How could anyone not want to be part of The
Illuminators?” he asked. n
T H E I L L U M I N AT O R S
Continued from p. 79
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Expert tips on how to launch a successful food
contest—and why it could be a magic bullet for
your brand.
Engagement: it’s one of those words that 20 years
ago meant an entirely different thing than it does
now. Forget the marriage vows; today’s engagement
is all about nabbing consumers in creative ways, and
keeping them.
One clever way to “engage” consumers is with a
contest. To find the magic ingredients for a successful,
food-related contest, we turned to two experts: Wendy
Nyberg, Senior Director of Trinchero Family Estates,
parent company of Sutter Home and the 22-year-old
“Build A Better Burger” Contest; and Brian Peters,
Director of Integrated Marketing Communications for
General Mills, home of the iconic Pillsbury Bake-Off.
1. Stay Current.
That’s especially true for Pillsbury Bake-Off, which
has been celebrating home cooks for nearly a half-
century. “During the ‘60s,” notes Peters, “convenience
cooking played a prominent role in the Bake-Off.”
Now? Not so much, says Peters, noting that this year,
the contest has been revamped to mirror today’s
lighter, fresher style of home cooking.* Consumers
can engage more with the contest, with three chances
each to enter recipes and vote, a format that Peters
says “gives retailers multiple opportunities to activate
in-store.”
2. Go Telegenic.
The advent of food as a TV star has been a boon to
contests. In 2005, the Food Network first broadcast
the Build A Better Burger cook-off. “We have had four
cook-offs covered to date, exposing the content to a
significant new consumer base,” notes Nyberg.
Pillsbury has also benefitted from televison. Martha
Stewart broadcast of her show live from the 45th
Pillsbury Bake-Off Contest. “The contest before that,”
adds Peters, “we flew category winners to Chicago
to appear on Oprah, and Oprah announced the
$1 million winner live.”
3. Create A Contest With Legs.
Thinking up a contest isn’t the hard part; creating
a contest that trumpets your brand and makes it
top of mind for consumers is the key. Take Build a
Better Burger: “It was Sutter Home’s goal to have
consumers enjoy wine with any meal, not just
for special occasions,” says Nyberg. “Today, wine
has become part of the everyday lifestyle and less
‘celebratory,’”—e.g., people see nothing odd about
sipping wine with a burger.
Same goes for the Bake-Off, notes Peters. “In the
contest’s 64-year history, consumers have created
timeless recipes using Pillsbury products. The contest
has been a vital part of establishing Pillsbury as a
trusted brand that helps people make food their
families will love.” n
Winning ContestsEXPERT TIPS ON HOW TO LAUNCH A SUCCESSFUL FOOD CONTEST—AND WHY IT COULD BE
A MAGIC BULLET FOR YOUR BRAND.
FRES
H M
AR
KE
T N
EW
S
Harriot Manley
Custom Content Editor
Sunset Publishing/
Time Inc.
PICK THE WINNERS
Which of these real submissions were winners? (Answers below.)
1. Peanut Butter & Jelly Burgers
2. Buffalo Chicken Crescent Puffs
3. Black Forest Burgers
4. Pumpkin Ravioli with Salted Caramel Whipped Cream
5. My Big Fat Greco-Inspired Burger
(4) Grand Prize, 45th Annual Pillsbury Bake-Off
(5) Grand Prize, 2003 Sutter Home Build a Better Burger Contest
* Does not include water, salt, or pepper; 30
minutes does not include baking time.
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for leaving a really big impression.
A lot of hard work. And a lot of respect. PNC believes in and
honors doers, like Al Plamann. Congratulations.
To find out more about what PNC can do for you, call Holly Hays. 626-432-6149.
pnc.com
©2013 The PNC Financial Services Group, Inc. All rights reserved. PNC Bank, National Association. Member FDIC
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Going Forward?NOW THAT THE ELECTIONS HAVE CONCLUDED, AND WE ARE “MUDDLING THROUGH”
THE “SEQUESTER” WE CAN CYCLE DOWN A BIT AND FREE OURSELVES OF THE ADS,
CAMPAIGNING AND BACK BITING. WELL, TO A LESSER DEGREE HOPEFULLY. NOT SURE
ABOUT YOU, BUT I AM SWEARING OFF THE NEWSCASTS!
WE
ALT
H M
AN
AG
EM
EN
T
Along with the selection of a new Pope, spring is
here and the “market” seems robust.
Going forward, many have shared a variety of
concerns over the last few months that may be a
source of insight for others.
Having averted the “fiscal cliff,” are we in danger
of another downturn?
Without a crystal ball none of the pundits have
a clear answer. Somehow we need to get good at
tuning out current events. Sounds crazy, but, the
history of the market has shown that a properly
diversified portfolio tuned to your comfort zone,
does more to grow your assets than all the jumping
around over the latest newscast.
Caution and diversification still reign strongly as a
strategy. The first few months of the year seem to
prove this out, in spite of Congress and its inability
to compromise on broader issues. A continued
crisis management approach seems to be the
strategy of the day.
We can only impact issues under our control.
The outcome of the election provides the option
to reframe our thinking and take advantage of
opportunities in the market place.
Consider the following challenges:
n The new health care tax on unearned income
takes effect at 3.8 percent.
n Expenditure issues still loom as a difficult issue
for our economy.
n An encouraging housing market will be
impacted by employment issues.
n Additional adjustments include the expiration
of payroll tax cuts.
How might this reshape our marketing strategies in
the near and long term?
Remain engaged in CGA. Your Association is
doing an excellent job helping protect the grocery
industry’s interests. The more I travel, the more I
appreciate the service, quality and freshness I find
in the markets I visit.
Those companies that benefit from sponsorship
and participation in 401k plans should have clarity
regarding fees and fiduciary requirements. This
remains a solid strategy for retirement savings.
Efforts to provide transparency and understanding
should benefit both employees and employers.
The Investor’s Caddie stands ready to address
your personal and company concerns as part of
our educational/community outreach. In
planning for retirement, the following factors
must be considered:
1. How dependent is the business on the owner/
retiree? What are the provisions for income
replacement should there be a disability, or
premature death. Is your company able to fund
or address this occurrence? What is your clearly
defined succession plan?
2. Don’t ignore the tax benefits of planning ahead.
Qualified counsel can address corporate and
estate planning issues in a fashion that creates a
win-win for the retiree’s family and business.
3. Don’t incorrectly value the business. Getting
this right is a vital part of the entire process.
Don’t make the mistake of thinking this can be
completed later, that it will never happen to you
or that you’re too busy running the business.
“ A pessimist is one who thinks ‘0 ‘is at the end of zero while an optimist thinks it is the first letter of opportunity”
Bill Cole, professional speaker
John B. Kelly
Continued on p. 87
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4. Don’t rush to accept a rich number. Understand
the terms and conditions. Remember that the
devil is in the details.
5. Don’t hire a close relative to do the deal.
Don’t put that kind of risk and stress on the
relationship. Find a pro you can trust.
6. Don’t fail to consider the emotional impact
of the transition. This is probably the most
difficult part of the process and it is vital to
engage professional guidance.
Finally, just a mention of the work we have done
with your families regarding college application,
admittance and funding. While our core program
addresses students during their freshman through
junior high school years, we now have a program
just for seniors.
I am happy to share a short outline with you upon
request, visit www.mycollegeinfo.com. We have
helped dozens of families reach their goals for
college attendance and funding.
Additionally, the CGA Educational Foundation, in
partnership with The Illuminators, is providing the
needed investment for our youth headed to colleges
and universities nationwide.
Don’t waste time wishing things were different and
regretting your past. Moving forward requires work,
planning and input from those who matter and
those with the experience, skills and background to
help you reach your goals.
Move forward, make the conditions right, and
manifest your dreams. n
John B. Kelly, MPA, CFP is a friend of the grocer’s industry with decades of service dedicated to the business and its members. He speaks and consults on a variety of financial and succession issues. John can be reached at [email protected] or 916-296-9019
W E A LT H M A N A G E M E N T
Continued from p. 85
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PAGE COMPANY PHONE FAX EMAIL WEBSITE
43 Advantage Sales & Marketing 714-780-3000 858-652-5166 [email protected] www.asmnet.com
13 al fresco all natural (Kayem Foods) 800-426-6100 617-889-5478 [email protected] www.alfrescoallnatural.com
2 Anheuser-Busch InBev 909-597-0460 909-597-0460 [email protected] www.anheuser-busch.com
65 Boy Scouts of America San Gabriel Valley Council 626-351-8815 626-351-9149 [email protected] www.sgvcbsa.org
60 Bristol Farms 310-233-4700 310-233-4701 www.bristolfarms.com
41 C&H Sugar Company, Inc. (a member of ASR Group) 510-787-4416 510-787-4205 [email protected] www.chsugar.com
39 C&S Wholesale Grocers, Inc. 916-373-4396 916-373-4296 [email protected] www.cswg.com
24 California Shopping Cart Retrieval Corp. 818-563-3070 818-563-3041 www.cartretrieval.net 800-252-4613
71 Cardenas Markets, Inc. 909-923-7426 909-923-4665 [email protected] www.cardenasmarkets.com
80 Celestial Seasonings 209-835-1346 209-835-9964 [email protected] www.Celestialseasonings.com
51,BC Coca-Cola Refreshments 213-746-5555 213-744-8765 [email protected] www.cokecce.com
55 Co-Sales Southern California 818-382-3100 818-728-0922 [email protected] www.co-sales.com
61 DEL REY MARKETING 323-201-0888 323-201-0890 [email protected] www.delreymarketing.com
70 Fresh & Easy Neighborhood Market Inc. 310-341-1501 310-341-1201 www.freshandeasy.com
83 Frito-Lay, Inc. (No. Calif. Div) 209-824-3753 925-734-3199 [email protected] www.fritolay.com
84 Gelson’s Markets 818-906-5709 818-990-7877 www.gelsons.com
57 General Mills 480-281-6700 480-281-6702 [email protected] www.generalmills.com
9 Green Smoke Inc. 888-636-2618 866-214-3154 [email protected] www.greensmoke.com
27 Hickman’s Family Farms 623-872-1120 623-872-9220 [email protected] www.hickmanseggs.com
78 Illuminators 209-254-2206 209-254-2255 [email protected] www.illuminators.org
17 International Dairy Deli Bakery Association 608-310-5000 608-238-6330 [email protected] www.iddba.org
71 Jons Marketplace 323-460-4646 323-962-2754 www.JONSMarketplace.com
23 Kraft Foods Group, Inc. 847-646-2000 847-646-2800 [email protected] www.kraftfoods.com
IBC MillerCoors 916-786-2666 916-786-9396 [email protected] www.millercoors.com
68 National Cooperative Bank 703-302-8876 703-647-3478 [email protected] www.ncb.coop
18 Nestle Purina PetCare 800-421-1721 x9 314-982-2860 [email protected] www.purina.com 314-982-4876
67 North State Grocery, Inc. dba Holiday/Sav-Mor Foods 530-347-4621 www.shopsavmor.com
86 NuCal Foods 209-254-2200 209-254-2255 www.nucalfoods.com
29 Pepsi Beverages Company - WBU 925-416-2573 925-416-2600 [email protected] www.pepsi.com
43 Pinnacle Foods 310-386-2992 [email protected] www.pinnaclefoodscorp.com
83 PNC Business Credit 626-432-6149 626-432-4589 [email protected] www.pnc.com
33 Procter & Gamble 925-867-4900 513-277-7964 www.pg.com
75 Safeway Inc. 925-467-3000 925-467-3323 www.safeway.com
69 Smart & Final Stores 323-869-7500 323-869-7862 www.smartandfinal.com
67 Stater Bros. Markets 909-783-5000 www.staterbros.com
8 Sugar Bowl Bakery 888-688-1380 510-782-2119 [email protected] www.sugarbowlbakery.com
77 Sun Products Corporation 949-733-0263 949-266-8857 [email protected] www.sunproductscorp.com
71 Super King Market 714-527-5809 714-527-5784 [email protected] www.superkingmarket.com
70 Superior Grocers 562-345-9000 562-345-9054 www.superiorgrocers.com
37 Tyson Fresh Meats, Inc. - Dan Peed 605-235-3215 479-757-6720 [email protected] Open-Prairie.TysonFoods.com
25,59 Unified Grocers, Inc. 323-264-5200 323-262-0658 [email protected] www.unifiedgrocers.com
19 Unilever 630-955-5425 630-955-5479 [email protected] www.unilever.com
32 United Fresh Produce Association 831-600-8922 831-480-5880 [email protected] www.unitedfreshshow.org
42 Union Bank 213-236-4182 213-236-7558 [email protected] www.unionbank.com
60 Wells Fargo & Company 213-253-6121 866-359-8187 [email protected] www.wellsfargo.com
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