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California Grocer, 2013, Issue 2 (Sample)
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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
For more information about our products call 1-800-Dial Bud, (1-800-342-5283) or visit us at www.budlightlime.com 6% only in ME, NH, TN. 6% and 8% in other markets.
Brand: BLL/SBL
Item #:PLB201310435
Job/Order #:
PAADAM 249691
Trim: 8.5x11 Bleed: 8.75x11.25Live: 7.375x10
Closing Date: 4/5/13 QC: CS
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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