SB 1013 Information Hub

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SB 1013: What you Need to Know

When Gov. Gavin Newsom signed SB 1013 (D-Atkins) into law, it marked the most significant update to the state’s “Bottle Bill” in decades.

As a result, there is a transition timeline in place, and a road away from the expensive in lieu fees many grocers were forced to pay when the industry became recyclers of last resort and the recycling market collapsed. Moving forward, the industry should be preparing for a significant re-tooling of its recycling strategies and responsibilities.

CGA continues to meet frequently with CalRecycle, and its director, Rachel Wagoner, with whom the Association maintains a productive relationship. The Association is also actively involved in creating dealer cooperative options for grocers. We thank you for your partnership in creating a new recycling system that better serves both the grocery community and its customers.

To help members navigate the challenges ahead, CGA has created a members-only portal where stakeholders can access essential information in one easy location. Click the button below for access.

SoCal Grocery Community Gathers for Food Industry Economic Forecast

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First-Ever Food Industry Economic Forecast

As the direction of the economy — everything from interest rates and real estate to inflation — continues to garner headlines, it felt like an apt time to gather Southern California’s grocery community for a mid-summer check-in. The first-ever California Grocers Association Food Industry Economic Forecast took place at the GRAMMY Museum in downtown Los Angeles and brought together industry leaders to zero in on macroeconomic factors, such as the supply chain, labor pool, consumer financial health, and opportunities in technology.

In collaboration with The Illuminators, the Food Industry Economic Forecast also served as the front-end of CGA’s strategic planning meeting, which took place the following day and aimed to inspire the organization’s agenda for the next handful of years.

The forecast event paired presentations from Dr. Chris Thornberg and John S. Phillips. Thornberg is the founder of Beacon Economics, a research company which consults with private industry, cities, counties, and public agencies to create economic studies. Phillips is the SVP of Customer Supply Chain and Go-to-Market at PepsiCo.

The PepsiCo executive kicked off the event with an hourlong report on the supply chain and innovation opportunities in the food and beverage industry. His presentation drew plaudits from attendees, especially for its information about smart labels, QR code utilization, and automation. In a world where both consumers and regulators have an insatiable appetite for understanding what’s in food and beverage products and why, smart labels empowered by QR code technology offer the ability for product information to be unconstrained by physical packaging space. Similarly, new advances in automation offers the potential for production to be unbound by human capital.

This last note is important, and it is a central argument in Dr. Thornberg’s work. By the esteemed economist’s thinking labor challenges are not unique to the food industry, and in California, are the product of the persistent housing shortage and demographics. Similar to Phillips, Thornberg believes every business should be pursuing an automation strategy.

Outside of technology and automation, the economist ran through a high volume of key economic indicators, all utilized to illustrate his main contention of the day: The media narratives that focus on the looming recession are misaligned with the data. Instead, data around consumer savings and spending across many discretionary categories leads to a much rosier picture. In fact, the greatest danger to consumers is the doom-loop, recessionary narrative becoming a self-fulfilling prophecy.

With plenty of food for thought to digest, the forecast was followed by an industry mixer where supplier and wholesale executives had the chance to mix and mingle with some of the region’s sharpest grocery retailers. Thank you to everyone who attended, and to our sponsors RMS and FMS. We hope to see you again at one of the Association’s other events this summer or fall.

City of Perris

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Healthy Communities Require Choice, Not Its Elimination

The Perris City Council is continuing to work on Ordinance 1423, which seeks to severely restrict what foods and beverages grocers can sell in store checkout areas. It’s a misguided strategy that is unfriendly to businesses and places little faith in Perris residents by dictating a set of “healthy” product choices to the city’s grocery shoppers as defined by politicians. In some cases, literally whole fruit and vegetable products would be forbidden.

Whether shopping for healthy ingredients for a home-cooked meal or simply looking for a treat at the end of a long day, the “when” or “why” shoppers decide what goes into their shopping carts is not for Perris elected officials to dictate.

Grocers support the Perris elected officials who are seeking healthier lifestyles for their community residents, but we also believe nearly every resident would agree that consumer choice and moderation are key components of health. For this reason, the city’s grocery community has urged the City Council to implement Ordinance 1423 in a way that allows consumers to have easy access to a broad mix of product choices in the checkout area of their local grocery store.

We trust in the people of Perris to choose what’s best for them and their families. From the mom-and-pop grocer to the supermarket, grocery stores provide access to healthy food in every community. We take that job seriously and hope the grocery industry can continue to serve Perris residents’ every occasion.

For more information on Ordinance 1423, read the Association’s letter to Mayor Michael Vargas below. To contact the Mayor’s office regarding this matter, call (951) 943-6100, or email at [email protected].

Asm. Speaker Visits Hollister Super

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New Speaker Talks Grocery with CGA Representatives

Asm. Robert Rivas (D-Hollister) has known Danny since he was a boy. Danny, a longtime produce manager at Hollister Super, was in the store working when the future Assembly Speaker stopped by the community grocer for a meeting and tour. The two embraced, before quickly catching up and posing for a picture with Hollister Super owner Chang So.

These are the types of connections that make the grocery community, and Hollister Super in particular, so special. Whether it’s the grocer’s role as job-provider or a brick-and-mortar store’s ability to offer a place to find nourishing foods and maybe bump into a friendly face, grocery stores are one of the few public spaces that are truly communal.

“Our stores have been in the community since 1983, and we joke that almost everybody in Hollister has worked here at one point or another.” Hollister Super owner Chang So said. “In fact, it’s even true for me. I left my job in tech world in 2003 to come back and run my family’s business. It’s a special experience to be such a vital part of a community like Hollister, and we were thrilled to have Assemblymember Rivas pay us a visit.”

The future Assembly Speaker joined Hollister Super staff and representatives from the California Grocers Association for a store tour to learn more about the grocery industry’s operations and the challenges facing independent and ethnic grocers. They discussed a number of issues impacting stores up and down the state.

“Independent grocers like Hollister Super feed and nourish communities across the state,” said CGA President and CEO Ron Fong, who attended the store tour. “They really are our lifeblood, and they add so much to the diversity and bounty of food options we have available to us in California.”

When Asm. Rivas becomes Assembly Speaker, the top leadership position in California’s State Assembly, on June 30, it will be the first time since the late 1990s the Speaker role has been held by an elected official outside the Greater Los Angeles Region. It’s an important point of distinction for Hollister Super owner Chang So.

“I’m excited to have someone ascend to the state’s leadership from Hollister,” he explained. “Someone who understands the opportunities and challenges of small communities and community-minded businesses.”

Retail Tomorrow, California

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An In-Depth look at the current and future states of retail

Last week, the CGA Board and staff traversed the Bay Area, taking a deeper look at the supply chain, workforce, and companies on the vanguard of technology. The tour was part of the Association’s first Retail Tomorrow, California, event and quarterly board of directors meeting, and it brought attendees to the ground level of the macroeconomic issues facing our industry, as well as some of the possible solutions.

“Living in the past and the future at the same time” was how one panelist described the current state of the supply chain and labor pool, and nowhere was this more apparent than in the first leg of Retail Tomorrow. Attendees kicked off Wednesday morning with a tour of Plenty and the Port of Oakland. Plenty, a vertical farming operation, has developed a near-fully automated operation whereby high yields of leafy greens can be generated without soil or by-hand harvesting.

While Plenty offered one vision for the future of retail, attendees also received an on-the-ground picture of the current state of retail — specifically, the functions of the supply chain — when visiting the Port of Oakland. A mid-sized operation, the Port features no automation, and guest speakers shared that there is little productive difference in efficiency between its current workforce and an automated one.

After touring Plenty and the Port of Oakland, the Retail Tomorrow group explored PayPal Park, home of the San Jose Earthquakes soccer team. Oakland Athletics President, and former San Jose Earthquakes President, Dave Kaval led grocers and suppliers on an exploration of how professional sports teams work to engage their customers at the park. In a world powered by digital interactions, Kaval noted the franchise must work to draw fans to an in-person event while utilizing data and digital marketing savvy to keep their attention at games and after.

Following the Association’s Board of Directors meeting, the group visited Google’s new Bay View campus. There, hundreds of employees appeared to be truly flourishing, given plenty of space and modes to express themselves for the benefit of the business. Hearing from Google’s “Food for Good” founder, Emily Ma, you sensed the way Google employees combine the human touch with bleeding edge technology. In Ma’s case it took the form of dumpster diving at five a.m. to track food waste while using AI to detect and predict the growth of mold and defects in strawberries. CGA is extremely excited to begin collaborating with Google to increase equity and sustainability all while reducing food waste in the communities we serve.

If you’d like to learn more about Retail Tomorrow, California, enjoy this sneak peek from the event!

2023 Independent Operators Symposium

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Join Your Independent Grocery Peers for a Timely Retreat on Maui

Like the seasons, life in business requires constant rebirth and reimagining. But as busy operators navigating everything from supply chain disruptions to global inflation, it is harder than ever to carve out the necessary time

With this reality in mind, CGA offers the Independent Operators Symposium at the the beginning of each new year. As its namesake suggests, the Symposium features a congenial atmosphere where grocers can learn, find inspiration, and recharge themselves personally and professionally.

The upcoming Independent Operators Symposium takes place January 7-14, 2023 at the Fairmont Kea Lani Resort on Maui.

Learn more about the event, registration, and Hawaiian travel details here.

Kevin Konkel

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CGA catches up with recently-retired Kevin Konkel to gather his insights from 44 years in the grocery industry.

By Kevin Konkel

Former Chief Operations Officer at Raley’s & Former CGA Board Chair

Seek first the most important and meaningful things in life.  Then the trials, tribulations, joys, and victories may be kept in perspective. The eyes of man are never satisfied. If more “stuff” is what we want, we will never have enough, and gratitude will elude us.

Find the right partner. Leadership is hard, and the right relationship at home to ground inspire and challenge makes all the difference.

You are the “goose that lays the golden eggs.”  Take care of yourself and continue to produce golden eggs long-term. Focus on spiritual & physical health; otherwise, it’s difficult to serve others and tend to responsibilities. Neglecting this fact catches up to us more quickly than we realize.

If you want to be a great leader, have the heart of a servant. It’s a life-long journey, and we never fully arrive, so above all else, be humble — lookout not only for your interests but for the interests of others.

Intense competitiveness and kindness can co-exist. I’ve seen and experienced this time and time again in retailing. Daily, we set out to beat the competition yet cheer each other on simultaneously. Go figure.

Learn from those who have done it before us. No matter what we’re going through, someone else has been in our shoes and persevered. Seek them out.

After doing the research, it’s ok to trust our gut/heart. There are tons of cliches out there from “experts” that have never been in our shoes, and at the end of the day, we own our decisions. Seek advice, but question it ruthlessly to ensure it’s a path to go down.

Prevail over self-doubt. Imposter syndrome is often a natural byproduct when we’re persistently leaning against our comfort zone; push through it.

“I’m sorry” and “I forgive you “ are powerful statements for the workplace too. Nothing is more powerful than admitting mistakes, forgiveness, grace, mercy, and love. Never take a genuine connection for granted. True friends and trusted colleagues are hard to find. Honest conversations are rare. Moments of vulnerability are special. Soak these up.

We are human beings, not human doings. Love, care and serve, knowing people are not widgets.  People need leaders who provide trust, compassion, stability, and hope to achieve their best and that entails treating others with respect and dignity who are wonderfully and fearfully made individuals.

Be a good steward. Return the business to the owner in better condition than where we found it.  Optimally, much better.

The graveyard is full of indispensable people. We will eventually be replaced. We will move on someday. Don’t be threatened by up-and-coming superstars within our organizations. Build a bench of talent better than us and start today.

This article originally appeared in California Grocer Issue 1. For more Issue 1 content and stories, visit here.

Grocers Day 2022

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Legislative Briefings and Elected Official Meetings Set Political Agenda for Grocers

Thank you to all who joined us at this week’s Grocers Day event in Sacramento! Grocers Day looked a little different this year.

Attendees gathered at the Citizen Hotel and heard from a diverse set of speakers on what to expect in 2022. Members were given the opportunity to ask questions and share concerns directly to speakers.

Asm. Republican Leader James Gallagher (R-03) shared his party’s priorities for the year ahead, citing PAGA reform, the homelessness crisis, theft and crime, and cost of living as top of mind issues. Christy Wilson (Wilson Public Affairs) provided a comprehensive update on the campaign to reform and replace PAGA and talked about what our industry can do to help get our measure on the November ballot for 2022. Robert Moutrie (CalChamber) shared his insight on what businesses can expect of future CalOSHA workplace safety regulations.  

Asm. Phil Ting (D-19) sat down with Louie Brown (Kahn, Soares & Conway LLP) for a fireside chat where they covered the budget surplus, redistricting, and the “Great Resignation” of lawmakers.  

Lastly, CGA’s very own Kelly Ash and Michel LeClerc (GR Committee Chair) discussed all things related to the CGA PAC and 2022 elections.  Thank you to our wonderful speakers, sponsors, and attendees for another successful Grocers Day!

Doug Scholz Promoted to COO

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The California Grocers Association (CGA) has promoted Doug Scholz to the position Senior Vice President and Chief Operating Officer, effective immediately.

In this newly created position, Scholz will manage the Association’s day-to-day operations, reporting directly to CGA CEO and President Ron Fong. As part of his new role, Scholz will also transition into additional oversight of CGA’s finance, administrative, and human resource departments.

“Since Doug joined CGA, he has demonstrated his leadership capabilities time and time again,” Fong said. “He has been a steward of the CGA culture and has brought innovative approaches to each part of the Association’s business that he has touched.”

Scholz joined CGA in 2010 as Senior Director of Business Development and Strategic Partnerships. He was subsequently promoted to Vice President of Business Development and Marketing and Senior Vice President of Business Development and Marketing. Through these roles, he actively managed the Association’s marketing, membership, sales, events, and communications departments.

“Doug’s story at CGA is a story of growth — for both the Association and himself,” Fong continued. “In the COO role, he’ll gain even greater latitude to impact the organization, enhance the way it serves California’s grocery community, and further develop CGA’s personnel.”

Prior to joining CGA, Scholz was Director of Partner Marketing for the Sacramento Convention & Visitors Bureau. His previous employment includes Director of Sales and Premium Seating for Maloof Sports and Entertainment, Sales and Strategic Partnerships Manager for Viacom International, Paramount Parks Division and Conference Marketing and Sales Manager for Viacom International.

Renee Amen Elected CGA Board Chair

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Renee Amen, Controller, Super A Foods, was elected the 2021-2022 California Grocers Association (CGA) Chair of the Board of Directors at the Association’s Annual Meeting on Dec. 8, 2021.

As Chair, Amen will oversee CGA’s many legislative, educational, 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. Amen succeeds Hee-Sook Nelson, Gelson’s Markets.

“It’s wonderful to see Renee continue her family legacy as a steward of California’s grocery community,” said CGA President and CEO Ron Fong. “She is deeply committed to this industry and it’s advocacy efforts, and I know Renee will serve as a strong voice for our independent grocery community especially.”

She is the third member of the Amen family to lead the Association’s Board of Directors. Her father, Lou Amen, served as Board Chair in 1986 while her brother, Jim Amen, was CGA Board Chair in 2010.

In addition to Amen, the following individuals were elected to the 2021-2022 CGA Board of Directors Executive Committee: First Vice Chair, Dennis Darling, Foods Etc.; Second Vice Chair, Lynn Melillo, Bristol Farms; Treasurer, Hal Levitt, The Save Mart Companies; Secretary, Steve Dietz, UNFI; and Immediate Past Chair, Hee-Sook Nelson, Gelson’s Markets.

Directors elected to their first full three-year team include: Joe Angulo, Bodega Latina Inc.; Jonson Chen, 99 Ranch; Jon Giannini, Nutricion Fundamental; Brandon Lombardi, Sprouts Farmers Markets; Andrew Nodes, Instacart; Bethany Pautsch, Tyson Foods, Inc.; Eric Pearlman, C&S Wholesale Grocers; and Donna Simpson, Certified Federal Credit Union.

Directors elected to their second three-year term include: Pamela Burke, Grocery Outlet; Saj Kahn, Nugget Markets; Scott Silverman, KeHE Distributors LLC; Jeanne-ette Boshoff-Ryan, Molson Coors, Nancy Krystal, Jelly Belly Candy Co.; and Jeff Severns, PepsiCo.

Chair appointments to the Executive Committee include: Denny Belcastro, Kimberly-Clark Corp.; Hillen Lee, Procter & Gamble; and Michel LeClerc, North State Grocery Company. Former CGA Chair Phil Miller, Core-Mark International, Inc., was elected an honorary board member.