Supermarkets Top List of Trusted Industries

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According to a recent Harris Interactive poll, 30% of respondents say the grocery industry is generally honest and trustworthy, while 24% think the packaged food industry should be more regulated by the government.

For the past decade, The Harris Poll has measured the percentage of Americans who perceive 19 large industries as “generally honest and trustworthy.” This year, this perception has dropped for 18 of the 19 industries, as overall U.S. adults seem to have lost trust in most of corporate America.

And, the only one that did not drop is tobacco companies, as just 3% of Americans say they normally would believe a statement from someone in that industry – same as it’s been for the past few years. At the other end of the spectrum, the most trusted industries are supermarkets – where three in ten (30%) say this industry is generally honest and trustworthy – and hospitals (28%). These are both down 8 points from last year.

These are some of the results of The Harris Poll® of 2,250 adults surveyed online between November 13 and 18, 2013 by Harris Interactive.

When asked which industries are generally honest and trustworthy so that you normally believe a statement by a company in that industry, over two in five Americans (42%) reply “none of these” – an increase from last year, when 36% indicated the same. After tobacco companies, the industries that are least trusted are oil companies (4%), social media (6%), managed care (6%), telecom (7%), health insurance (7%). Just one in ten say they think packaged food companies (11%), airlines (11%), car manufacturers (11%), pharma and drug companies (10%), and life insurance companies (10%) are generally honest and trustworthy.

The industries trusted by the highest percentages of Americans after supermarkets and hospitals are online search engines (18%), banks (18%), computer hardware companies (17%), online retailers (15%), electric and gas utilities (14%) and computer software companies (13%). The biggest changes since last year on this question are the 8-point drops for supermarkets and hospitals, a 7 point drop for computer software companies and a 6 point drop for electric and gas utilities. Over the past decade, the biggest drops are 17 points for banks and 12 points for packaged food companies.

This series also asks which of the 19 industries should be more regulated by government, and three in ten Americans select “none of these” (29%). The industries that the largest percentages of U.S. adults would like to see more regulated are oil (41%), pharmaceuticals (39%), tobacco (35%), health insurance (34%), banks (31%), electric and gas utilities (24%), packaged food companies (24%) and managed care companies such as HMOs (24%). Few U.S. adults (less than 10%) want to see more regulation of computer hardware and software companies (6% each), online search engines (7%), online retailers (7%) or supermarkets (9%). The biggest changes from last year are drops of 7 points in those who would like to see more regulation of electric and gas utilities and drops of 6 points each for those who would like to see more regulation of managed care companies, life insurance companies and health insurance companies.

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CGA Elects New Chair, New Board Members

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Mary Kasper, Senior Vice President, General Counsel and Secretary, Fresh & Easy Neighborhood Market Inc., was elected the 2013-2014 California Grocers Association Chair of the Board of Directors at its Annual Meeting on Dec. 6, 2013.

As Chair, Kasper will oversee the Association’s numerous legislative, educational, communications and industry-related programs. CGA is comprised of more than 350 retail companies operating more than 6,000 stores in California and Nevada. The chair serves for one year. She succeeds Immediate Past Chair Kevin Davis, President and CEO, Bristol Farms.

“Mary’s extensive government relations and legal expertise, coupled with her considerable knowledge of the grocery industry, is a real plus for the Association,” said CGA President and CEO Ronald K. Fong. “Her positive attitude and ability to work effectively with such a diverse Board of Directors are tremendous assets. The Board and staff look forward to her leadership in the coming year.”

In addition to Kasper, the following individuals were elected to the 2013-2014 CGA Board of Directors Executive Committee: First Vice Chair, Joe Falvey, Unified Grocers, Inc.; Second Vice Chair, Kevin Konkel, Raley’s; Treasurer, Mike Read, WinCo Foods, Inc.; Secretary, Diana Godfrey, Smart & Final Stores; and Immediate Past Chair, Kevin Davis, Bristol Farms.

Chairman’s appointments to the Executive Committee include: Dave Jones, Kellogg Company, and Dora Wong, Coca-Cola Refreshments.

Directors elected for their first full three-year term include: Kevin Arceneaux, Mondelez International; Brian Dowling, Safeway Inc.; Robin Graf, Whole Foods Market; Keith Olscamp, Campbell Soup Company; Chris Podesto, Food 4 Less/San Miguel Markets; Chris Polak, Unilever; Mimi Song, Superior Grocers; Tiernan Summins, Kraft Foods Group, Inc.; and Jim Van Gorkom, NuCal Foods.

Directors elected for their second three-year term include: Raul Aguilar, Anheuser-Busch InBev; Paul Cooke, Nestle Purina PetCare; Jon Giannini, Nutricion Fundamental, Inc.; Dave Jones, Kellogg Company; and Omar Milbis, Rio Ranch Markets.

Former CGA Chair Jonathan Mayes was nominated as an honorary board member.

Photo: Outgoing Chair Kevin Davis passes the gavel to Incoming Chair Mary Kasper.

CGA Testifies on WIC Moratorium

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California’s moratorium on issuing new WIC licenses is “one of the biggest issues facing the grocery industry,” CGA Senior Vice President Keri Askew-Bailey told the Joint Legislative Audit Committee on Monday.

The Committee met in an Oversight Hearing to hear testimony as to the scope of the moratorium, including why it hasn’t been lifted.

The moratorium was issued in 2011. Representatives from the Department of Public Health said the moratorium will be lifted in the summer of 2014.

Askew-Bailey told committee members the grocery industry appreciates the progress made by the state Department of Public Health, but an interim solution is needed. “We cannot wait until Summer of 2014 to see relief,” Askew-Bailey said. “We need exception criteria expanded for store categories that weren’t part of the problem to begin with.”

She said the moratorium is having a direct impact on grocery retailers, including one company that has indicated it will not explore expansion opportunities in California because they cater to lower income households. Another grocery retailer will likely close its doors because they failed to meet the WIC exemption criteria – it moved into a former grocery store location that had been closed for more than six months.

Askew-Bailey told committee members that while it is generally understood that the problems associated with overcharging were limited to a small minority of vendors and not in traditional grocery stores, the moratorium is imposed on all vendor types.

She explained that some grocery stores in low income areas depend on WIC shoppers to remain viable. “It isn’t necessarily the WIC coupons that are needed, but all the other goods customers purchase when they shop,” she said. “But if they can’t use their WIC vouchers, they won’t shop at a store and develop that customer loyalty. So store viability is impacted.”

Others providing testimony included Kathleen Billingsly and Christine Nelson from the Department of Public Health, and Laurie True of California WIC Association.