The City of Los Angeles today passed the framework of a carryout bag ordinance – opting to pursue a model that more closely mirrors action in other California localities and largely comports with CGA’s Board-approved carryout bag regulation policy.

Specifically, Council directed the Bureau of Sanitation to begin work drafting an ordinance that will ban plastic single-use carryout bags and mandate a nominal charge for paper. The action came after months of heavy lobbying by CGA to redirect the Council from a proposal that would have banned distribution of all single-use carryout bags by grocers in the City.

During debate, CGA was identified as a key partner in forging the compromise. CGA was the only business entity to testify with proponents, noting that the direction Council opted for is something the industry as a whole is comfortable with. In particular, the regulation of both bag types was highlighted as critical to providing consistency for consumers across the region and minimizing cost and operational impacts to LA City grocers. Several nearby localities, including the County of Los Angeles and the City of Calabasas, have passed bag ordinances that include a mandated charge on paper.

Over the next few months, CGA will continue work as details of the proposed ordinance are drafted.

• The Los Angeles Times – Ban on Plastic Bags at L.A. Markets Is Approved

The CGA Supplier Executive Council sponsored its second in a series of exclusive store tours on May 10 with an insider look at Holiday Quality and Sav-Mor Foods in Redding, CA. The tour was led by Richie Morgan, President and CEO of North State Grocery, Inc.

This SEC member-only event provided attendees with an exclusive opportunity to gain an in-depth look at how this Northern California retailer approaches its operational strategies and engage its customers. Future SEC sponsored store tours include Stater Bros. Markets and Safeway Inc.

To learn more about becoming a CGA Supplier Executive Council member, contact Doug Scholz, CGA, at (916) 448-3545.

Photo: Richie Morgan, left, discusses his company’s operational strategies with SEC attendees.

The California Grocers Association Board of Directors approved a new CGA mission statement at its April 18, 2012.

The statement reads: “The California Grocers Association serves, represents and educates its grocery industry members and advocates on their behalf at the state and local levels.”

The new mission statement was crafted during a one-day workshop in January, facilitated by Marilyn Snider, Snider and Associates.
“We asked about 20 of our members to participate in this exercise,” said CGA President Ron Fong. “Considerable thought and discussion went into developing our new mission statement. The group is to be commended for their time and effort.”

The purpose of developing the statement, according to Fong, was to clarify CGA’s purpose and define its model. The committee examined the Association’s strengths and weaknesses in an effort to define CGA’s purpose.

“We kept the statement concise by design,” Fong said. “It gets to the heart and provides the guidance and direction the board and staff needs to move the Association forward.

Grocers from throughout California gathered in Sacramento on April 17, 2012, to meet with their elected officials to discuss key industry issues at the 2012 California Grocers Association “Grocers Day at the Capitol.”

“This was an excellent opportunity for our members to meet with their state elected officials and staff and address the most pressing legislation impacting our industry,” said CGA President and CEO Ronald Fong.

In addition to meeting their elected officials in pre-scheduled meetings in the state Capitol, the more than 80 attendees heard from top legislative leaders.

“Attending Grocers Day and participating in these face-to-face meetings with legislators is the single most important activity a grocer or supplier can do to help further our industry’s cause in Sacramento,” said Keri Bailey, CGA’s Vice President of Government Relations. “Legislators want to hear from their constituents. It’s important they hear our message.”

During the one-day lobbying event attendees met with lawmakers in their Capitol offices to share concerns on critical legislation affecting the grocery industry. Six bills were lobbied by attendees on CGA’s behalf. Topics ranged from WIC and recycling to pallet theft and grocery store regulation.

Attendees also heard legislative insights from Assemblyman Mike Gatto. In addition, CGA held its annual Ice Cream Social, sponsored by Unilever. The day ended with CGA’s annual President’s Reception, which included attendees and invited legislators.

CGA wishes to thank this year’s Grocers Day at the Capitol sponsors:

• Anheuser-Busch InBev
• California Shopping Cart Retrieval Corporation
• Coca-Cola Refreshments
• Food 4 Less (Stockton)/Rancho San Miguel/Times Supermarkets
• Fresh & Easy Neighborhood Market
• Gelson’s Markets
• Kellogg Company
• Nutricion Fundamental
• Ralphs
• Safeway Inc.
• Save Mart Supermarkets
• Smart & Final
• Stater Bros. Markets
• Unified Grocers, Inc.
• Unilever
• WinCo Foods

The California Grocers Association (CGA) has promoted Doug Scholz to the position of Vice President of Business Development and Marketing, effective immediately.

In this newly created position, Doug will be responsible for leading the Association’s member engagement, revenue development and overseeing the creation and execution of the marketing strategies to enhance CGA’s overall image and reach.

“Since joining CGA, Doug has proven himself as a leader and innovator for the Association,” said CGA President Ronald Fong. “His knowledge and experience in business development and marketing coupled with his willingness to think outside the box has been a tremendous asset to the Association.”
Scholz joined CGA in July of 2010 as Senior Director of Business Development and Strategic Partnerships.

“In his new position, Doug will work in collaboration with the Senior Management Team to develop and execute marketing strategies that support the Association’s strategic business plan, as well as enhance CGA’s brand equity and awareness,” said Fong. “He will continue his duties as the strategic partnership leader and forge ahead in relationships with our Illuminator and vendor/supplier partners.”

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

Grocery retailers in the Los Angeles area learned first-hand their critical role during a natural or man-made disaster.

At a meeting on March 29, co-hosted by CGA and the Los Angeles Chapter of the American Red Cross and conducted in the ARC Emergency Operations Center in West Los Angeles, grocery representatives discussed how the two organizations can work closer together in preparing for a catastrophic disaster.

Retailers also learned how the ARC will feed the possible hundreds of thousands displaced in the aftermath of a major disaster, and discussed the role the grocery industry can play.

“Our members also had the opportunity to clarify the resources we as an industry have available and explore how to streamline purchasing procedures with relief organizations following a major disaster,” said Dave Heylen, CGA. “It was a tremendous first step but it’s only the beginning.”

Due to its success, CGA will host similar meetings in other strategic areas of the state.

“CGA’s goal is to help our industry understand the vital role it plays in the resiliency of a community following a disaster, and to be prepared to do so,” Heylen said.

Retailers from across the United States converged on Washington, DC in late March to urge Congress and the Obama administration to act on pro-business agendas on healthcare and tax fairness and to preserve critical swipe fee reforms accomplished through the Durbin amendment.

California Grocers Association President Ron Fong joined representatives from several member companies participated in “Day in Washington” sponsored by the National Grocers Association, Food Marketing Institute and Food Industry Association Executives Participants from California met with ten Congressional offices during the event to present the unified grocery industry.

One key issue grocers advocated was changes to the Affordable Care Act, should the law survive a pending Supreme Court challenge. In addition to pressing for better definition of key terms like “affordable”, “full time” employee, and “minimum value”, participants pushed for longer transition times for employers, elimination of the employer mandate and auto-enrollment, along with authorization for use of FSA debit cards to purchase over-the-counter medications without a prescription.

On the tax front, the industry message was clear: preserve key incentives to job creation like the Work Opportunity Tax Credit, make the current estate tax rates permanent, preserve LIFO inventory accounting, and permit states to collect sales taxes from on-line retailers.

Other topics of discussion in Congressional meetings included urging lawmakers to reject pending legislation that would repeal key provisions of the Durbin amendment and pushing to keep grocery stores out of the new menu labeling requirements intended for chain restaurants.

“This was an excellent opportunity for CGA to meet with several congressional representatives,” said Fong. CGA members visited with Congressmembers Wally Herger (R-2nd District), Dan Lungren (R-3rd District) and Lois Capps (D-23rd District).

Photo: (l to r) Jonathan Mayes, Safeway Inc.; Rep. Lois Capps; Ron Fong, CGA

Representatives from the California Grocers Association and several member companies, including Northgate Gonzalez Markets, El Super, Vons and Fresh & Easy Neighborhood Market enjoyed lunch with Assemblyman Gil Cedillo (D – Los Angeles) on Friday, March 6.

Cedillo has served in the Legislature since 1998 when he was first elected to the State Assembly. Four years later he won a seat in the State Senate where he served two terms, returning to the Assembly in 2010. Cedillo is currently seeking election to the Los Angeles City Council in the 1st District.

Photo: (from l to r) Joe Angulo, El Super; Sarah Paulson Sheehy, CGA; Robin Howard, Fresh & Easy Neighborhood Market; Assemblyman Gil Cedillo; Ron Fong, CGA and Frank Aguirre, El Super.

The U.S. Supreme Court on January 23, 2012, denied a Petition for Certiorari filed by the Pacific Legal Foundation on behalf of the California Grocers Association (CGA) that challenged the legality of the City of Los Angeles’ Grocery Worker Retention Ordinance.

The ordinance requires grocery companies that acquire an existing grocery store location to retain the employees of the predecessor company in certain circumstances. CGA had originally filed a lawsuit in 2006 against the City of Los Angeles to overturn the ordinance. Two lower courts ruled in favor of CGA stating the ordinance was preempted by existing federal authority over labor-management relations.

Last July, the California Supreme Court reversed those decisions concluding that federal labor law does not give an employer the absolute right to choose its employees, and does not prevent state and local governments from regulating hiring and firing decisions.

In November, the Pacific Legal Foundation was retained by CGA to petition the U.S. Supreme Court for review of the California high court’s ruling. PLF argued that compelling retention of employees after a new owner acquired a store would violate the new owner’s negotiating rights under federal labor law by potentially binding the employer in an unwanted relationship with an individual employee and their union.

“We are very disappointed with the U.S. Supreme Court’s decision denying review of our case,” said CGA President Ronald Fong. “Despite the Court’s decision, I am confident the Association did the right thing in challenging this very damaging ordinance.”

Three other cities, San Francisco, Gardena and Santa Monica have passed similar ordinances.

The court denied review without comment.

CGA and the CGA Educational Foundation will have new mission statements if approved by their governing boards in the coming months. A cross section of CGA members met last week to develop the statements. Included in the committee were representatives from both the CGA Board of Directors and the CGAEF Board of Trustees.

The goal according to CGA President Ron Fong was to create mission statements that better reflect the Association’s and Foundation’s evolving direction and focus.

“I was very impressed by the level of engagement by our committee participants,” said Fong said. “They drove the entire development of both mission statements.”