A delegation of California Grocers Association members joined other food industry state association executives representing more than 30 states in Washington, DC this week to urge Congress to act on pro-business reforms that impact the bottom lines of supermarket retailers and wholesalers.

Members of the National Grocers Association (NGA), Food Marketing Institute (FMI), and the Food Industry Association Executives (FIAE) joined together for the annual “Day in Washington” congressional fly-in, during which grocery company executives and operators meet with their members of Congress and key Congressional staff to discuss issues of importance to the supermarket industry such as healthcare, tax reform, FDA menu labeling, and swipe fees.

Regarding health care, the supermarket industry supports changes to the Affordable Care Act (ACA) that would increase their ability to maintain health coverage and comply with the law. Such changes include amending the ACA’s 30-hours per week full-time employee definition to be in-line with the current workforce and fair labor standards; supporting H.R. 1254 to repeal a redundant and confusing mandatory auto-enrollment provision; and restoring the ability for customers to use their Flexible Spending Account (FSA) card for purchases of Over-the-Counter (OTC) medicines without a prescription.

Supermarket operators are also urging Members of Congress to co-sponsor H.R. 1249, the Common Sense Nutritional Disclosure Act, bi-partisan legislation that would, in part, ensure that Food and Drug Administration (FDA) does not capture mainstream grocery stores in chain restaurant menu labeling regulations.

“Supermarkets are job-creators, employing 3.4 million workers, and they’re also inherent to the financial health of their communities, as evidenced by an average of $92 per U.S. household in weekly sales[i],” FMI President and CEO Leslie G. Sarasin remarked. “It’s great for Members of Congress to hear directly from the grocers in their districts about how even the slightest nuances to legislation or regulation can impact their 1-percent-profit-margin-businesses.”

With Congress focused on taking up tax reform, attendees are urging their elected officials to ensure reform is fair and equitable among both C-corporations and pass-through entities such as S-Corporations and LLCs, while preserving pro-growth tax provisions such as bonus depreciation and expensing. The industry believes Congress should also focus on reforming the tax code, and not try to raise revenue from other areas. The Last In, First Out (LIFO) accounting method is not a tax provision and repeal would create a new, phantom tax that does not meet the basic standards of fairness and equity. The supermarket industry is also urging members of Congress to support the Marketplace Fairness Act (H.R. 684/S. 336), legislation that closes a 20-year-old-loophole and helps create a level playing field for brick and mortar retailers.

“The presence of the supermarket industry in Washington, D.C. this week is significant given the many important public policy issues facing our industry,” said Peter J. Larkin, President and CEO, NGA. “The momentum gained by having industry executives educate their elected officials on these issues will help keep up the pressure on Congress to take action.”

Attendees of the Day in Washington are also addressing the issue of credit card swipe fees, which remain one of the highest operational expenses for retailers. With no ability to negotiate or decrease these fees, the average credit card swipe fee of 2 percent is often higher than the profit margin for many transactions. The supermarket industry strongly supports swipe fee reforms through maintaining and improving debit reform and moving toward more fair and equitable credit card swipe fees.

Photo Credit: A delegation of California retailers are in Washington DC this week educating congressional members on key grocery issues. Attending the event, sponsored by FMI, NGA and FIAE are (left to right) Bob Guiterrez, Food 4 Less (Stockton); Keri Askew Bailey, CGA; Congressman Jeff Denham (CA-10); Ron Fong, CGA; Kevin Herglotz, Unified Grocers, Inc.; and Jonathan Mayes, Safeway Inc.

Stores across California would need to ditch single-use plastic bags under legislation authored by Sen. Alex Padilla, D-Los Angeles, that has drawn some interest from a key business lobby.

Dozens of municipalities have already adopted ordinances prohibiting stores from offering the bags, citing the environmental costs of proliferating plastic. Padilla said his bill would build on that process with a needed statewide standard.

“There’s no such thing as a free lunch, and there’s no such thing as a free bag,” Padilla said at a Monday morning press conference on the steps of the State Capitol building.

And while the Legislature has fallen short in its attempts to institute a ban before, Padilla said his bill’s prospects were brighter given “the business community that’s coming around and seeing the wisdom in a statewide policy.”

The California Grocers Association has not yet taken a formal position on the bill, but president and CEO Ronald Fong endorsed a statewide approach that would offer “consistency and predictability” both to consumers and to businesses trying to navigate a patchwork of varying county and city rules.

“We’re looking for competitive fairness for retailers,” Fong said at Monday’s press conference. “Retailers don’t want to be in a position where they need to abide by 70 to 85 different local ordinances.”

Padilla cited some statistics about the environmental burden of plastic bags: more than 14 billion are handed out every year in California, producing tons of largely non-biodegradable waste that harm wildlife, pollute bodies of water and posing hefty cleanup costs for the state.

“We can reduce the cost to government and have better-looking communities in the process,” Padilla said.

Under the current language in Senate Bill 405, larger stores would have until January 1, 2015 to stop giving out single-use plastic bags, with smaller stores facing a later deadline. Stores could offer reusable bags that meet standards overseen by the California Department of Resources, Recycling and Recovery.

Speakers at the press conference underscored the impact on wildlife, which can get enmeshed in plastic waste. Animals also sometimes consume the bags: birds will unwittingly feed scraps of plastic to their young, and turtles often mistake the bags for coveted jellyfish.

Single-use plastic bags are rarely recycled. Mark Murray, executive director of the group Californians Against Waste, said that only about 5 percent of plastic bags make it to recycling facilities.

“Even with an opportunity to recycle at every grocery store in this state, these particular products don’t lend themselves to cost-effective and easy recycling,” Murray said at Monday’s press conference. “This is a problem product that the best solution is to phase it out of the marketplace,” he added.

And even when the bags are recycled, they can still pose problems, according to Sacramento City Councilman Kevin McCarty, who has been immersed in the issue as the Sacramento City Council debates a plastic bag ordinance amid resistance from the business community. McCarty recounted visiting a recycling center in his district and watching workers repeatedly dislodge plastic bags that were gumming up the machinery.

“The city of Sacramento is in full support of this effort,” McCarty said. “We’re frankly a little late to the game.”

Not everyone is pleased. Phil Rozenski, who is working with a bag manufacturer coalition called the American Progressive Bag Alliance, said that single-use plastic bags are “an environmental option” and suggested that recycle rates are so low because consumers reuse the bags rather than recycling them.

“We think consumers should have a choice,” Rozenski said.

Photo Credit: Senator Alex Padilla addresses media as CGA President Ronald Fong listens.

Reprinted from The Sacramento Bee (4/15/2013)

Jim Lee, President and Chief Operating Officer, Stater Bros. Markets and Vic Chiono, Vice President Sales, West U.S., Coca-Cola Refreshments, were inducted into the California Grocers Association Educational Foundation Hall of Achievement on Thursday, April 11, 2013, at the Sheraton Fairplex Hotel and Conference Center in Pomona, CA.

The Foundation’s Hall of Achievement was created in 1993, and recognizes California grocery retailers and suppliers who have contributed substantially to the advancement of the grocery industry.

The one-night annual award dinner and fundraising event raised more than $500,000. Proceeds from the event fund the Foundation’s College Scholarship and Career Development programs.

This year, the Foundation will be awarding 294 college scholarships totaling $330,750 to deserving employees, or their families, of CGA member companies.

“This year’s inductees are true icons of our industry,” said CGAEF President Ronald Fong. “Their unwavering dedication to the success of our industry, and their unselfish and devoted commitment to the communities they serve make both individuals worthy recipients of this year’s award.’

Jim Lee- Stater Bros. Markets

Jim joined Stater Bros. Markets as the Group Senior Vice President of Retail Operations in 2002, bringing to the Company over 30 years of experience in the Supermarket Industry. Headquartered in San Bernardino, California, and founded in 1936, Stater Bros. is a “Fortune 500” Company, and is the largest privately owned Supermarket Chain based in Southern California with 167 stores, nearly $3.8 billion in annual sales, and over 18,000 members of the Stater Bros. “Family” of Employees.

Jim began his grocery career with Ralphs Grocery Company in Southern California in 1972 as a Clerk’s Helper. Later he was promoted to various positions during his 25 years at the Company including: Store Manager, District Manager, Vice President of Store Operations Administration and Vice President Store Operations, Northern Division and Southern Divisions. His last position with Ralphs was Group Vice President of the Central Division, where he had responsibility for the highest sales volume Division in the Company.

Prior to joining Stater Bros., Jim was the President and Chief Operating Officer, from 1996 to 2001, of Wild Oats Markets, Inc. based in Boulder, Colorado; which at the time, was the second largest chain of natural foods supermarkets in North America, with annual sales of over $1 billion. During Jim’s time with Wild Oats, he helped the company “go public” and oversaw a 600% increase in sales.

Jim has a Bachelor of Arts Degree (in History) from Azusa Pacific University where he played basketball on Scholarship, a Food Industry Management Certificate (full Scholarship from the Western Association of Food Chains) and a Masters of Business Administration from the University of Southern California, which he earned while attending night school. He also graduated, and served as Class President, from the Executive Program in the Graduate School of Business at UCLA. In 2008, Jim was honored by Azusa Pacific University with the Academic Hall of Honor Award. The USC Marshall School of Business, Food Industry Management (FIM) Program named Jim the Food Industry Executive of the Year for 2010. Most recently, Jim received the 2011 Humanitarian Award from The California Conference for Equality and Justice (CCEJ) for his longtime dedication and service to the Food Industry.

Jim is on the Executive Committee of the Western Association of Food Chains and served as President in 2007/2008. He is on the Advisory Board for the City of Hope Food Industries Circle, a past board member of the Food Marketing Institute, former trustee for the California Grocers Association Educational Foundation, and is a Vice President on the Board of Directors for Topco Associates, LLC

Jim and his wife Nancy (also a supermarket “veteran”) are both native Southern Californians and reside in Newport Beach, California. They have been married for 39 years, and have two daughters and four grandchildren.

Vic Chiono, Coca-Cola Refreshments

Vic Chiono is Area Vice President of Sales for Coca-Cola Refreshments, with responsibilities for the Central and West U.S. Vic has been in sales and sales marketing for over thirty-six years, just completing over twenty-six years within Coca-Cola holding numerous sales and management positions.

Vic got started in the grocery industry at the age of 10 sorting bottles and sweeping the parking lots of his father’s Safeway store. Vic worked through high school and college as a checker and shelf stocker. After graduating from San Jose State University with a bachelor’s degree in Business Administration, Vic started his career by joining Unilever as a sales representative selling food, health, and beauty products to 135 retail stores.

In 1987, after obtaining several management positions within Unilever Vic joined Coca-Cola where he has enjoyed a successful career selling all Minute Maid, Gold Peak, Simply Beverages, and juice drink products. Most of his sales background has been working with our retail partners throughout the United States. From 1996 to 1999, he shifted his focus to the Food Service division within Coca-Cola establishing Minute Maid products as a staple in restaurants, theme parks, and hotel chains. “It was a wonderful experience,” he said. “We called on everyone from Legoland to Hilton Hotels!”

On a personal note, Vic resides with his wife Barbara and their two sons, Armando (A.J.) and Austin, in Southern California. When he is not working, he loves to golf, fish, and spend time with his family.

CGA Educational Foundation Hall of Achievement

The CGA Educational Foundation Hall of Achievement provides the food industry with the opportunity to recognize the achievements of those individuals who, through their foresight and dedication, have enhanced California’s food distribution industry.

Proceeds from the event help fund the Foundation’s college scholarship and tuition reimbursement programs. For the 2012/13 program year, the Educational Foundation awarded 275 scholarships totaling $328,250. The Foundation also disbursed more than $110,000 in tuition reimbursement.

“The Foundation appreciates the tremendous support it receives from the grocery industry over the last 20 years,” said Shiloh London, executive director, CGA Educational Foundation. “Their generous donations allow the Foundation to achieve its mission of advancing the grocery industry through employee education, college scholarships and industry research projects.”

For more information on the Hall of Achievement log-on to www.cgaef.org or contact Brianne Page at 916.448.3545.

The California Grocers Association has named Keri Askew Bailey as Senior Vice President, Government Relations and Public Policy, effective immediately.

In this newly created position, Bailey will assume responsibility for creating and managing an aggressive public policy program through the development and facilitation of coalitions with CGA membership, ally associations, chambers of commerce, and other interested parties.

She will be responsible for industry issues management, aggressive grass-roots member outreach and a strong political program including fund raising, and will direct research to render “white paper” position statements, seminal industry articles, political initiative campaigns and effectively communicate complicated issues to disparate audiences and constituencies.

“In the four years Keri has been with CGA, she has proven to be a tremendous asset in growing our advocacy program,” said Ron Fong, CGA President and CEO. “As a veteran lobbyist with extensive experience in the State Capitol, Keri’s expertise has allowed CGA to strengthen relationships, as well as create new alliances, in a very business-challenged environment.”

Along with expanding CGA’s public policy program, Bailey will assist in implementing and administrating the Association’s biennial strategic plan.

“This new position reflects the Association’s ongoing commitment to expanding its membership offerings such as creating an effective public policy program and bringing greater value to our members,” Fong said.

In addition to her new responsibilities, Bailey will continue to administer the overall government relations program, manage the government relations staff and outside public policy firms, and consultants, oversee the dissemination of key legislative and regulatory issues to CGA members, and develop advocacy articles for publication. She will continue to report to the President/CEO.

Bailey joined CGA in 2009 as Vice President, Government Relations. Prior to CGA, she worked for the California and Nevada Credit Union Leagues. She also worked in the California Legislature for more than a decade.