State Issues Energy Alert

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The California Independent System Operator Corporation (ISO) has issued a statewide Flex Alert, a call for voluntary electricity conservation from 2 p.m. to 9 p.m. on Tuesday, June 20, and Wednesday, June 21.

Consumers are urged to conserve electricity especially during the late afternoon when air conditioners typically are at peak use. Consumers can help avoid power outages by turning off all unnecessary lights, using major appliances before 2 p.m. and after 9 p.m., and setting air conditioners to 78 degrees or higher.

During times of high temperatures, demand on the power grid can be strained, as air conditioner use increases. The forecast peak usage for Tuesday and Wednesday is expected to exceed 47,000 megawatts each day in California ISO’s service territory, which serves roughly 80 percent of electricity customers.

For more electricity conservation tips, visit the ISO’s Flex Alert website.

LA Times Editorial: Stop starving California’s recycling program

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By the Los Angeles Times Editorial Board
June 2, 2017

By one important measure, California’s 30-year-old Beverage Container Recycling program has been a big success. Up until last year, more than 80% of qualifying plastic bottles, glass containers and aluminum cans were returned to recycling centers each year. Billions of bottles and cans that might have otherwise ended up in the state’s landfills have found new lives in recycled products.

Yet the program is in trouble because the state shortchanged the centers on their subsidies just as the price of scrap material was dropping. A quarter of the state’s recycling centers have closed in the last year and half, many of them in rural areas. And with fewer places to redeem bottles and cans, last year recycling rates dropped to just under 80% for the first time since 2009. Unless lawmakers step in immediately, the rates may well continue to drop, sending untold amounts of potentially recyclable material into the waste stream.

Gov. Brown and legislators want to overhaul the program, and they should. It’s inherently unsustainable, victimized by its own success; the revenue the state relies on to support it — the deposits consumers pay on bottled goods — goes down as the recycling rate goes up. To make matters worse, the subsidies needed to ensure adequate recycling centers to serve the entire state are based on a number of factors entirely out of the state’s control like labor costs, rent and global demand for plastic or aluminum.

But starving the program while waiting for an overhaul is not the answer. Legislators must include the appropriate amount to fully fund the program in the next fiscal year’s budget. Then we can talk about the best way to reform the program for another successful 30 years.

Brown needs to rescue California’s recycling programs

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From the Sacramento Bee (05/15/2017)

By Jared Blumenfeld

Recycling sorting facilities remind me of Charlie and the Chocolate Factory. Inside is a whirl of activity: thousands of metal, plastic, paper and glass objects being transported along conveyor belts. Workers pull trash and heavy objects off the line. You can see environmental progress in front of your eyes. At the end of the line, huge bales of recycled product are ready for their new life.

Recycling bottles and cans is now second nature because it works. In large measure, this success is thanks to the Bottle Bill, California’s 30-year-old recycling law that brought us the nickel and dime deposit program. Recycling is a critical action each of us takes to reduce greenhouse gases, conserve natural resources and help keep our communities and coastlines clean.

Unfortunately, if urgent action isn’t taken this month in Sacramento, the recycling of 64 million single-use beverage containers that our state uses every day could be trashed.

Recycling doesn’t happen without strong financial underpinnings. Most of us redeem the nickel and dime beverage deposit for cash. This motivates us to recycle more. The deposits that don’t get redeemed go into a fund administered by CalRecycle to reimburse recyclers when scrap metal, plastic and glass prices hit rock bottom.

In early 2016, California’s public and private recycling infrastructure began hemorrhaging upward of $2 million per month, due to record low material scrap prices. Rather than coming to the rescue, CalRecycle reduced payments. Even though the money was in place and the law gave CalRecycle the mandate, state lawyers said new language had to be authorized.

The response of the marketplace was swift. Within days of CalRecycle announcing the freeze in payments, the places around California that collect bottles and cans and return our deposit felt the pain. The largest operator of these “convenience zones,” rePlanet, announced the closing of 191 centers and the layoff of 278 employees. Others followed suit, and by April 2016, more than 400 centers had closed.

Efforts by stakeholders and the state Assembly to address the problem in the 2016-17 state budget were ultimately opposed the Governor’s Office, amid vague calls for a more “comprehensive reform.”

Today, the promised reform proposal from the Governor’s Office has yet to materialize. Closures have exceeded 560 recycling centers – roughly 25 percent of the infrastructure. Revenue loss to public and private recycling operators is on track to exceed $50 million by the end of June, at the same time that the program’s year-end “fund balance” is expected to top $250 million. As a result, container recycling rates have fallen below 80 percent for the first time since 2008.

While the Governor’s Office and legislators debate details, this self-inflicted failure means that every day 2 million additional containers are littered or sent to a landfill, including more than 1 million plastic bottles every day. The Pacific Ocean does not need any more plastic pollution. This is insane.

The loss of recycling centers has hit rural areas especially hard. For consumers who try to supplement family income by redeeming containers, the loss of buyback recycling locations has reduced total redemption payback by more than $3 million per month.

The governor’s proposed 2017-18 budget presents a critical opportunity for policymakers to come together and fix what’s been broken: Use surplus program revenue to return recycling center funding to 2015 levels, and provide supplemental funding to reopen closed rural centers. It should also include a timeline for closing loopholes and require beer and soft drink makers to cover at least half the cost of recycling their containers, less than 5 cents per container.

As recently as 2013, the California Bottle Bill was humming along at an 85 percent recycling rate, diverting more than 1 million tons of plastic, glass and metal, and contributing thousands of jobs and more than $2 billion to the state’s economy, while delivering the equivalent of 1.45 million tons of reduced carbon dioxide emissions. The Trump EPA is working day and night to dismantle environmental programs across the country. Let’s not make their job easier by neglecting fixes to the nation’s best recycling program.

CGA Awards First “Legislator of the Year”

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California State Senators Steven Glazer (D-Orinda) and Mike McGuire (D-Healdsburg) were the inaugural recipients of the California Grocers Association “Legislator of the Year” award.

The lawmakers received the prestigious award at CGA’s 2017 Grocers Day at the Capitol on April 18, 2017, in Sacramento. The senators were recognized for their ongoing efforts in trying to help repair the state’s troubled Beverage Container Recycling Program.

Both senators are co-authors of legislation (SB 60) that would suspend penalties for store operators that are unserved by a parking lot recycling center due to a closure that occurred between January and March of 2016, or a government action.

State law, AB 2020, requires grocers to redeem beverage containers if there is not a recycling center in their convenience zone. More than 200 recycling centers have closed in the past two years due to a variety of reasons including the bottom dropping out of the plastics market due to lower petroleum prices worldwide.

“Our members are extremely appreciative of the efforts both these senators have made in helping us seek resolution to this important industry issue,” said CGA President Ron Fong. “Both Senators Glazer and McQuire are worthy recipients of this brand new award.”

 

Mr. Grocer Goes to Sacramento

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More than 70 grocery retailers and suppliers descended on the State Capitol in late April to participate in CGA’s 2017 Grocers Day at the Capitol – the Association’s signature one-day member advocacy day in Sacramento.

This annual gathering allows California’s grocery industry to meet with their elected officials and discuss key issues impacting one of the state’s major employers.

This year, attendees advocated on two CGA sponsored bills, AB 1326 (Prop. 47 reform) and SB 60 (beverage container recycling reform). In addition, members heard from several key state legislators, including Assemblymember Jim Frazier (D-Discovery Bay), who serves as chair of the Assembly Transportation Committee, and discussed the recent passage of SB 1, the $52 billion transportation package bill that will, among other things, include a 12-cent tax on gasoline.

Attendees also heard from Senators Steven Glazer (D-Antioch) and Mike McGuire (D-San Rafael) who both received CGA’s first annual “Legislator of the Year” award in recognition of their extensive efforts in trying to help find a solution to California’s troubled beverage container recycling program.

“CGA is extremely appreciative of both Senators and their determination to resolve this very difficult challenge,” said CGA President Ron Fong. The BCRP began collapsing last year as hundreds of beverage recycling centers closed their doors, and retailers started receiving notices that they were out of compliance with the state’s beverage recycling law.

In addition to the day’s educational sessions and legislative visits, attendees also were invited to CGA’s President’s Reception. This annual event wraps up Grocers Day at the Capitol and gives CGA members the opportunity to meet with their legislative representatives in a more informal basis at the Association’s headquarters.

This year’s Grocers Day included a contingency of loss prevention, safety and risk management directors from a number of CGA-member retail companies that were invited to participate and share insights into the challenges grocers face as the result of the passage of Proposition 47.

“This group was extremely helpful in explaining why Prop. 47 reform is needed,” Fong said. We are not looking to end Prop. 47, merely amend it to make it more effective.”

thank you sponsors

CGA expresses its gratitude to the many companies sponsoring this year’s events. They include:

Event Sponsor: Safeway/Albertsons/Vons/Pavilions

Gold Level: Coca-Cola Refreshments, Unified Grocers, Inc.

Silver Level: C&S Wholesale Grocers, Food 4 Less/Rancho San Miguel Markets, Gelson’s Markets, Ralphs grocery Company/Food 4 Less/Retail Marketing Services, Inc.

Bronze Level: Bristol Farms, Grocery Outlet, North State Grocery, Inc.

Breakfast: Kellogg Company, Save Mart Supermarkets

Luncheon: Jelly Belly, Kimberly-Clarke

Ice Cream Social: Clover Sonoma

President’s Reception: Anheuser-Busch InBev, Roplast – Revolving Recycling & Bring Back Bags

Foundation Announces Scholarship Endowment

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SACRAMENTO, CA (April 11, 2017) – The CGA Educational Foundation today announced the creation of the “CGAEF Scholarship Endowment” in honor of its 25th anniversary of supporting the grocery industry with financial assistance and educational opportunities.

Through initial investments of $335,000, scholarships will be created and awarded to CGA-member company employees.

The newly-created endowment will support student success and opportunity by creating a permanent funding source for college scholarships – offering relief to the rising tuition costs that keep many students from completing their education.
The endowment will build on donations already received.

Founding Donors

The founding donors include: Stater Bros. Markets, Alta Dena Dairy and Got Milk representing the California Milk Processors, The Kellogg Company, The Albertsons Companies Foundation, Frito-Lay, Acosta Sales & Marketing/Clorox, The Coca-Cola Company, Southern Glazers Wine & Spirits, Raley’s, Unilever, and Anheuser-Busch.

“For employees in the grocery industry, the possibility of a better life begins with higher education,” says CGAEF President Ronald Fong. “Yet each year more students are struggling to make ends meet and stay in school.”
Although many California colleges have managed to keep enrollment fees low, affordability has become a growing barrier to student success, according to CGAEF Executive Director Shiloh London.

“This philanthropic investment has the ability to promote academic achievement and make it possible for college students to continue their academic dreams,” she adds.

Scholarships will be applied towards tuition for CGA-member company employees that meet a list of CGAEF Board of Trustees criteria.

“An endowment fund is a permanent, self-sustaining source of funds,” Fong says. “Assets are invested, and every year the fund’s earnings are used to create scholarships, while the gifted principle remains intact and secure. An endowment fund can grow and provide support for scholarships forever.”

The CGA Educational Foundation is celebrating its 25th anniversary in 2017. In the quarter century since its inception, the Foundation has created opportunities for thousands of people in the grocery industry through its highly respected college scholarship, tuition reimbursement and industry education programs.

“California is a place of opportunity – and no industry embodies this promise more than the grocery industry,” London says.

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The CGA Educational Foundation was created under the direction of the California Grocers Association Board of Directors in 1992. Its mission is to provide financial assistance to advance the educational goals of CGA member company employees and their dependents and offer educational programs to advance the grocery industry. For more information, visit www.CGAEF.org.

Foundation Honors Stater Bros. Executive

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George Frahm, Stater Bros. Markets Inducted into CGA Educational Foundation Hall of Achievement

Executive recognized for life-long commitment to industry, community.
Foundation celebrates 25th Anniversary.
More than $530,000 raised for education.

SACRAMENTO, CA (April 6, 2017) – More than 600 friends, family and industry peers celebrated the induction of George Frahm, Stater Bros. Markets, into the California Grocers Association Educational Foundation Hall of Achievement on April 6, 2017 in Pomona, Calif.

Frahm, Executive Vice President, Administration & Distribution for Stater Bros. Markets, joins a prestigious group of Hall of Achievement recipients to be recognized for their many contributions to the grocery industry and the communities they serve.

The Hall of Achievement Dinner also celebrated the Foundation’s Silver Anniversary – 25 years of serving California’s grocery industry.

As a special part of the program, the Foundation paid tribute to previous Hall of Achievement honorees – the “Legends of the Industry” – who left a lasting impact on the grocery industry.

“We are very excited to welcome George Frahm into our prestigious Hall of Achievement during the Foundation’s 25th anniversary,” said CGAEF President Ronald Fong. “George has served the grocery industry his entire professional career and like his Hall of Achievement peers has generously given back to the communities and industry he’s served.”

Led by this year’s event co-chairs Dennis McIntyre, Stater Bros. Markets, Dan Meyer, Stater Bros. Markets, Sylvia Shermer, Stater Bros. Markets, and Bruce Wyatt, Flowers Baking of California, the event raised more than $530,000 – funds that support the Foundation’s college scholarship and tuition reimbursement programs.

“It is no coincidence that we are recognizing someone with such deep roots in our industry in the same year we celebrate the Foundation’s 25th anniversary,” said Brad Askeland, North State Grocery Co., and chair of the CGAEF Board of Trustees. “The Foundation is honored to add his name to its prestigious list of industry icons.”

The evening featured an inspiring speech by Albertsons Companies, Inc. employee Manuel Rosas, a CGAEF scholarship recipient.

The CGA Educational Foundation was created 25 years ago under the direction of the California Grocers Association Board of Directors. Since its inception, the Foundation has awarded more than $6 million in scholarships and tuition reimbursement to CGA-member company employees and their dependents. For more information regarding CGAEF programs and for a complete listing of past Hall of Achievement honorees, visit www.cgaef.org.

About George Frahm, Stater Bros. Markets

George Frahm is the Executive Vice President Administration/Distribution for Stater Bros. Markets.  Stater Bros. is the largest privately-owned supermarket chain in California and the largest private employer in Southern California’s Inland Empire.  Stater Bros. operates 169 supermarkets from its Corporate Office and Distribution Complex in San Bernardino, Calif.

George began his supermarket industry career in 1973 at the Stater Bros. Markets in Glendora, Calif., as a Clerks Helper and Janitor and continued to work at Stater Bros. while furthering his education.  In 1973, he received an Associate of Arts Degree from Citrus Community College, and in 1975 he received a Bachelor of Arts Degree in Psychology from California State University, Los Angeles.  George is also a graduate of the University of Southern California Food Industry Executive Program.

George continued to rise through the ranks at Stater Bros. working as a Store Manager, Grocery Supervisor, District Manager, Director Labor Relations, Vice President Labor Relations, Senior Vice President Administration, Group Senior Vice President Retail Operations and Administration, and in 2008 he was promoted to Executive Vice President.

As Executive Vice President Administration/Distribution, George oversees both the company’s Administration Division, including Human Resources, Labor Relations, Insurance, Workers’ Compensation, Corporate Security Department and Support Services, as well as the distribution division.

George is a strong proponent of education.  He has worked closely with local universities to create the very best educational opportunities for Stater Bros. employees seeking to pursue and/or advance their educational goals.  These opportunities include tuition discounts for Stater Bros. employees, disseminating information regarding grocery-industry related scholarships and communicating tuition reimbursement opportunities through the CGA Educational Foundation.

George is a past Chairman of the California Grocers Association Board of Directors, and has served as a CGA Educational Foundation trustee.

In true Stater Bros. fashion, George believes in doing the right thing for the right reason.  He is an avid supporter of the Leukemia & Lymphoma Society and regularly volunteers for the KFroggers For Kids Radiothon benefitting Loma Linda University Children’s Hospital and the Stater Bros. Charities Annual Believe Walk in the fight against all cancers in the communities served by Stater Bros. Markets.

In his time away from work and volunteer efforts, George enjoys gardening, playing golf and traveling.  George has been married to his wife Debbi of 41 years and together they have one son and one grandson.

[FAG id=4812]

Anti-Theft Bill Introduced

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AB 1326 provides relief from recent spike in shoplifting

The California Grocers Association announced their co-sponsorship and full-fledged support for Assembly Bill 1326, by Assemblymember Jim Cooper (D-Elk Grove). The measure, co-authored by Assemblymembers Sabrina Cervantes (D-Corona) and Raul Bocanegra (D-Pacoima), will aggregate the dollar value of certain property crimes, such as shoplifting and check fraud, with a felony being charged if a suspect’s total dollar value from such crimes surpasses $950 in a 12-month period.

This much-needed legislation will provide grocers and other retailers with relief from alarming increases in theft since 2014 when changes in state law more than doubled the felony threshold for many property crimes from $450 to $950.

“California’s grocers have seen a steady increase of criminals shoplifting higher amounts of goods at higher rates,” said Ron Fong, President and CEO of the California Grocers Association, adding that shoplifters and organized crime rings now commit multiple thefts, day-after-day, but below the $950 felony threshold.

“This is bad for grocers who suffer high losses, bad for employees who are put in harm’s way due to the increased aggressive nature of these thefts, and bad for shoppers who ultimately pay the consequences at the register,” he said.

Many CGA retail members have seen double-digit, and in some cases triple-digit percentage increases in losses from shoplifting and organized retail crime rings over the past five years, with a notable spike beginning after 2014.

“We look forward to collaborating with Assemblymember Cooper to pass this sensible piece of legislation,” Fong said. “We urge the California Legislature to help grocers, their employees, and consumers turn back this alarming crime growth by passing AB 1326.”

If AB 1326 is passed by the Legislature and signed by the Governor, it then must be approved by voters at the next general election before its provisions can go into effect.

Additional co-sponsors of AB 1326 include the California Police Chiefs Association, and Crime Victims United California.

Additional Press Releases

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Industry Streamlines Product Code Dating Wording

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Grocery manufacturers and retailers have joined together to streamline and standardize the wording accompanying the date labels on packages to offer greater clarity regarding the quality and safety of products. The new industry-wide effort launched by the Grocery Manufacturers Association and Food Marketing Institute will help reduce consumer confusion over dates on the product label and potentially help consumers avoid unnecessary food waste.

From More Than 10 Different Product Label Dates to Two Standard Phrases

Currently, packages can include date label phrases such as Sell By, Best Before, Expires On, Use By, Best By, Born On and Enjoy By and others. Numerous studies have shown that consumers are confused with this myriad of labels and are unclear exactly what guidance the date is offering.

This voluntary national initiative streamlines more than 10 different and confusing date labels on consumer products packaging down to just two standard phrases.

“BEST If Used By” or “BEST If Used or Freeze By” quality phrasing will indicate to consumers that after the specified date, the product is safe to use or consume, but that it may has exceeded the threshold of its optimal taste or performance. For example, the quality of the product taste or texture may have diminished slightly or it may not have the full vitamin content indicated on the package.

“USE By” or “USE or Freeze By” safety phrasing will inform customers that these products should be consumed by the date listed on the package. This date label is for perishable products with potential safety implications or material degradation of critical performance over time, such as nutrition.

Widespread Industry Adoption Urged

Retailers and manufacturers are encouraged to immediately begin phasing in the common wording, with widespread adoption urged by the summer of 2018. Broad industry adoption of this new voluntary standard will occur over time so companies have flexibility to make the changes in a way that ensures consistency across their product categories and doesn’t create unintentional food waste.

Can Help Reduce Food Waste

Product date labeling changes may result in reduced consumer food waste, but clearing up this confusion is just one of several ways to combat the issue moving forward. About 44 percent of food waste sent to landfills comes from consumers, and statistics show that addressing consumer confusion around product date labeling could reduce total national food waste by just 8 percent.

 

Additional Resources

Pavilions Executive Elected CGA Chair

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SACRAMENTO, CA (Dec. 2, 2016) – Jim Wallace, Vice President and General Manager of Pavilions, was elected the 2016-2017 California Grocers Association Chairman of the Board of Directors at the Association’s Annual Meeting on Dec. 2, 2016. Pavilions is a banner of The Albertsons Companies, which also owns and operates Albertsons, Safeway and Vons stores in California.

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Incoming chair Jim Wallace (right) takes gavel from Outgoing Chair Kevin Konkel.

As Chair, Wallace will lead the Board’s strategy regarding CGA’s numerous legislative, educational, communications and industry-related programs. The Association is comprised of more than 300 retail companies operating more than 6,000 stores in California and Nevada. The chair serves for one year. He succeeds Immediate Past Chair Kevin Konkel, Raley’s Family of Fine Stores.

“CGA is extremely fortunate to have someone with Jim’s extensive industry knowledge and experience at its helm,” says CGA President Ron Fong. “CGA staff looks forward to working with Jim in the coming year. I’m confident it will be a very productive year for the Association.”

In addition to Wallace, the following individuals were elected to the 2016-2017 CGA Board of Directors Executive Committee: First Vice Chair, Bob Parriott, Twain Harte Market; Second Vice Chair, Kendra Doyel, Ralphs Grocery Co Treasurer, Phil Miller, C&S Wholesale; Secretary, Hee-Sok Nelson, Gelson’s Markets; and Immediate Past Chair, Kevin Konkel, Raley’s Family of Fine Stores.

Chairman’s appointments to the Executive Committee include: Dave Jones, Kellogg Company; Kevin Arceneaux, Mondelez International Inc.; and Renee Amen, Super A Foods. Independent Operator Committee Chair Dennis Darling, Foods Etc., was re-elected to the Executive Committee.

Directors elected to their first full three-year term include: Leon Bergmann, Unified Grocers, Inc.; Bary Benun, Anheuser-Busch InBev; Cindy Chikahisa, Sprouts Farmers Market; Willie Crocker, Bimbo Bakeries USA; Damon Franzia, Classic Wines of California; Ted Gardner, Rio Ranch Markets; Dave Jones, Kellogg Company; Jonathan Mayes, Albertsons Companies, Inc.; Joe McDonnell, Campbell Soup Company; Doug Minor, Numero Uno Market; Laura Price, Nielsen; Mike Ridenour, The Kraft Heinz Group; Elliott Stone, Mollie Stone’s Market; Joe Toscano, Nestle Purina PetCare; Michael Walton, Unilever; and, Richard Wardwell, Superior Grocers.

Directors elected to their second three-year term include: Kevin Arceneaux, Mondelez International; Chris Podesto, Food 4 Less-Stockton, Rancho San Miguel; and Jim Van Gorkom, NuCal Foods.

Former CGA Chair Joe Favley, Unified Grocers Inc., was elected an honorary board member.

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The California Grocers Association is a non-profit, statewide trade association representing the food industry since 1898. CGA represents approximately 300 retail members operating over 6,000 food stores in California and Nevada, and approximately 200 grocery supplier companies.