Kroger CEO Dave Dillon To Retire

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The Kroger Co. announced its Board of Directors’ long-term CEO succession plan.

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David B. Dillon, 62, a 37-year Kroger veteran who has been serving as Chief Executive Officer since 2003, will retire as CEO on January 1, 2014, while continuing to serve as Chairman of the Board. Mr. Dillon will serve as Chairman through December 31, 2014.

W. Rodney McMullen, 53, Kroger’s President and Chief Operating Officer, will become CEO on January 1, 2014. Mr. McMullen joined Kroger in 1978 on a part-time basis on a stock crew and has been President and Chief Operating Officer since 2009 and a Director since 2003. He previously held a variety of senior management positions including Vice Chairman; Executive Vice President of Strategy, Planning, and Finance; and Chief Financial Officer.

Mr. Dillon said, “As Kroger implements its strategic growth initiatives, the time is right for the transition of leadership. I am delighted that the Board has elected Rodney McMullen to succeed me. Rodney has played a leadership role in every major decision Kroger has made for the past 25 years, including the development and implementation of Kroger’s Customer 1st approach as well as our current growth strategy. He is ready to be CEO. I have been honored to lead this great company for over 10 years and look forward to assisting Rodney and the Board in the transition while continuing to serve as Chairman.”

Robert D. Beyer, Kroger’s Lead Director, said, “On behalf of the Board, I thank Dave Dillon for an extraordinary job as CEO and throughout his distinguished career at Kroger. Under his leadership, the company has consistently delivered value for shareholders, customers, and associates. The Board has planned carefully for this leadership succession. We are confident Kroger will continue its growth momentum during the transition and under Rodney McMullen’s leadership. Rodney has the right skills and experience to build on Dave’s accomplishments and leverage Kroger’s strong platform in the years ahead.”

Mr. McMullen said, “I am honored to have this unique opportunity to serve our company and gratified by the Board’s confidence in me. I am excited to lead our efforts to build on Kroger’s market position and competitive advantages to drive value for our shareholders and to strengthen our deep connection with our great associates, our millions of customers and the communities we call home.”

Mr. McMullen’s successor will be named at a later date.

CGA Chair Receives Humanitarian Award

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Anaheim, Calif. – California Grocers Association Chair Kevin Davis, Bristol Farms, was one of three grocery industry executives to be honored at the California Conference for Equality and Justice (CCEJ) 39th Annual Food & Beverage Industries Awards Dinner on Thursday, Sept. 12, 2013.

Also honored were Willie Crocker, Senior Portfolio Development Manager, BBY/Earthgrains Baking Company and Walter Cybulski, Director of Retail-Grocery for PepsiCo.

Proceeds from the event help fund CCEJ, a human relations organization dedicated to confronting bias, bigotry and racism in America.

September is We Card Awareness Month; Retailer Material Available

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September is We Card Awareness Month, named for one of the most successful corporate social responsibility efforts in America. The We Card program is entering its 18th year with a call to action for retailers, requesting stronger restriction of tobacco products to minors.

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The program, recognized by its ubiquitous yellow and red signage that warns “Under 18, No Tobacco: We Card,” has been providing training and educational materials to retailers since 1995.

As part of its award-winning campaign to prevent underage access to tobacco products, We Card will also educate retailers nationwide about state laws that restrict e-cigarette sales to minors. The U.S. Food and Drug Administration is considering regulations on e-cigarettes as part of its authority over tobacco granted by Congress in the 2009 as part of the Family Smoking Prevention and Tobacco Control Act.

“The good news is that youth access to tobacco at retail is down,” said Doug Anderson, President of We Card. “Preventing illegal sales to minors remains a top priority for retailers and We Card.”

“We can confidently say that We Card is one of, if not, the most successful corporate social responsibility efforts ever. Along with state and federal law enforcement, the nation’s retailers through We Card have helped dramatically reduce youth access to tobacco,” said Lyle Beckwith, Senior Vice President of Government Relations for the National Association of Convenience Stores and a We Card board member.

September, We Card Awareness Month, is when retailers traditionally begin plotting their compliance strategies for the coming year, ordering training for their employees along with signage and other tools. Orders are already coming in for the 2014 Age-of-Purchase Calendar, which gives retail workers a daily reminder and an age-calculation tool to identify and prevent underage attempts to purchase tobacco.

Learn more about We Card and We Card Awareness Month »

In the past 15 years, successful attempts by minors to purchase tobacco products has decreased from 40% down to 9.1%, according the 2012 Synar Report. Compliance with federal FDA regulations is even lower at about 6%, according to We Card’s analysis of publicly available FDA data.

“We Card and all that it has accomplished is a significant achievement for our industry,” said Peter Larkin, President and CEO of the National Grocers Association and founding board member of We Card. “I’m pleased that retailers stepped up and joined in a unified long-term effort to prevent minors from getting access to tobacco products.”

Since 2010, when the FDA began enforcement at retail, nearly 200,000 compliance checks have been conducted at a rate of 6,000-10,000 inspections per month, in addition to the state inspections. Recently, We Card adjusted its online training to meet FDA’s guidelines for Tobacco Retailer Training Programs.