Data Points, Pressure Points, & TMI

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I just had a birthday — my 65th — which meant that I’m suddenly getting a lot of phone calls and pieces of mail that aren’t exactly brightening my day.

It seems like I get at least a couple of phone calls a day offering me medical insurance of one kind of another and, to be honest, it is kind of annoying. Though those aren’t as bad as the voice mail messages I get that start out, “Hello, senior!” When I hear those two words, I generally carry through on the impulse to utter a two-word epithet and then hang up the phone. (One problem with cell phones: you can’t slam them down in disgust.)

Then, the other day I got an e-mail offering me a discount on hearing aids. I can only hope that the people who sent me that e-mail had them in so they could hear my reaction to that particular message.

It’s not that I mind turning 65. I still have my hair, I run 20 miles a week, and I have a fulfilling career that allows me to write and talk for a living, two of my favorite things. And there are advantages, I’ve learned that one can save a fair amount of money on movie tickets and even hotel rooms when one gets to be a certain age. Plus, in places like Portland, Oregon, they don’t just offer discounts on public transportation, but even refer to you as an “honored citizen.” Makes it almost worth turning 65, since I’ve never been honored for anything before.

While I’m thrilled with the barrage of age-related solicitations, there are at least two reasons to be sanguine about it all. First, turning 65 beats the alternative. Second, I’ve generally believed that the collection and effective use of actionable data is one of the great differentiators in the current retail marketplace.

Think about it. In so many ways, the accumulation and then weaponizing of customer data is one of Amazon’s greatest advantages. I’ve been shopping on Amazon since January 1997 — fair to say I was an early adopter. I can go on the site and see what my first purchase was: a book called “No I know Why Tigers Eat Their Young/How to Survive Your Teenagers,” which tells you a lot about what I was thinking 22 years ago.

But if I know that, so does Amazon…and it can take every purchase I’ve made from then to now and translate those purchases into relevant recommendations that, I suspect, turn into purchases more often than blind promotions that so many retailers send out. (I wonder how many vegans get sent ads for beef, or how many people with celiac disease get bread promotions.)

The effective use of data was the whole idea behind Dunnhumby, which was created in the mid-90s and then sold to Tesco; Kroger’s use of Dunnhumby data, and then its acquisition of Dunnhumby USA, has been a real differential advantage for the company.

That’s not to say there aren’t risks.

That became evident recently when, as the Boston Globe reported, Wayfair embarked on a new sales strategy that created a “new customer service team, the Wayfair Insider Program, that monitors shoppers’ online browsing habits and then steps in to offer assistance as a way to close a sale.”

If you are spending a lot of time looking at an item and appear to be indecisive about buying it, you get a phone call from a Wayfair Insider, who offers to help close the deal.

Now, according to the Globe, the company says that “calls were not based on real-time browsing and noted that customers get an e-mail from Wayfair offering assistance before anyone places a call…there is a 48-hour lag time between someone browsing on the site and receiving a call; and that shoppers provide their phone number to the company in advance of their being contacted.”

But some folks still are creeped out by this and are telling the Insiders a) not to call, and b) let their superiors know that this is too much.

The thing is, there will be some people who would welcome the phone call. Maybe Wayfair just had to do a better job of emphasizing the opt-in nature of the program, which could’ve alleviated a lot of anxiety.

The line is different for everyone…which is one of the reasons that companies have to e careful about such efforts.

I recently wrote a piece on MorningNewsBeat that referenced the Quip toothbrush. I later got an e-mail from a reader who saw it, didn’t know what a Quip was, Googled it, and since then kept seeing sponsored posts for the product online. This is, to be sure, a common technique…we’ve all had that experience of going to an e-commerce site and then seeing relentless advertising for that product. It is one way companies like Google and Facebook make money.

The problem is that when this happens, some people feel their privacy has been invaded.

We have an ongoing debate about this in my house. My wife is annoyed by these ads, but I argue that if I am going to see ads, I’d rather see them for products in which I might be interested or might find relevant.

(My far younger wife, on the other hand, finds the hearing aid ads and “hello, senior” robocalls to be hilarious. Just wait until she gets to be my age.)

Relevance — and permission — strike me as the key.

The other day, after Amazon announced it was eliminating the $14.99-per-month fee for grocery delivery, making delivery from Amazon Fresh and Whole Foods Market just another perk included in Prime membership, I decided to see if my local Whole Foods would offer the service. I can’t imagine using it much — I can walk to Whole Foods in about five minutes — but I thought it would be good to know.

Alas, my Whole Foods is not offering the service yet, but the site asked me if I wanted to be notified when it is available in my zip code. I clicked “yes,” and then was brought to a page that listed every product I’d ever bought at Whole Foods using my Prime app to get discounts.

Every single one.

Now, at first, that seemed a little creepy. Then, in about ten seconds, I realized that by allowing them to scan my Prime app at checkout, I was permitting them to accumulate this information. Ten seconds later, as I looked at the screen, I realized I had the makings of an easy-to-use shopping list that would allow me to navigate Whole Foods online quickly and easily.

We went from a little creepy to relevant and permission-based is about 20 seconds. Not that long a time, not that long a trip, and leading to the potential for a more friction-free shopping experience.

In the words of the song by George and Ira Gershwin, ‘Who could ask for anything more?’

Kevin Coupe is the founder of MorningNewsBeat.com. This article originally appeared in 2019 Issue 6 of California Grocer magazine.

It’s been an incredible year

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We are taught from a very young age that the more you put into something, the more you will get out of it.

That has never been more exemplified for me than during this last year as I had the opportunity to serve our great Association as Chair of the Board of Directors.

It has been an incredible year full of so many accomplishments and opportunities for our industry, and it has been one of my professional life’s biggest honors to serve in this capacity. While extra time was needed in my calendar, I got out of it ten-fold what I gave.

We operate in a state where strong associations are critical, and CGA really hit the mark this year.

From successfully securing temporary relief for grocers in the recycling arena to privacy concerns, labor laws and sugar-sweetened beverage bills, just to name a few, CGA fought against anti-business bills with success.

Whether it is through tremendous coordinated efforts like Grocers Day at the Capitol or countless city halls every week across the state, our Association is a vigilant voice for our companies and our associates. This work will never slow, and our CGA staff is second to none in its influence and approach. I am truly grateful for their constant drive to ensure our voice is heard and even sought after.

This year, CGA opened our new building which is a spot in Sacramento for our industry to call home. An incredible committee led us through construction and all that comes with it. We are complete and fully-leased with our other office spaces and it makes our mark on the growing downtown Sacramento.

We owe great thanks to everyone who worked to make this a reality over the years, as I know it’s something you’re as proud of as I am.

The CGA Strategic Conference was one of our most successful ever. Attendees found great value and a solid ROI with their attendance while our speakers and education platforms were thought-provoking and compelling. I am hopeful that many of the takeaways we all had during this time together have driven positive results for you and your companies.

There are so many accomplishments that 2019 had in store for CGA. Our Educational Foundation had another year of changing lives and supporting dreams. We all learned a great deal at the Independent Operators Symposium early in the year and drove meaningful results while squeezing in a little fun.

I learned a great deal from the students at both the University of Southern California and Cal-Poly, San Luis Obispo that Ron and I had the pleasure of lecturing where we saw the next generation of leaders for our industry. And the list could go on for an incredible year at CGA!

All that said, I gained so much from my time as Chair. you all taught me so much, shared incredible insights from your stores and offices, and inspired me on a daily basis. I can’t thank the Association enough for this opportunity to serve — know that I am humbled and truly grateful. I will be taking way more with me as I pass the gavel on to an incredible leader and team than I came to this table with in the beginning. Thank you.

Phil Miller Elected Board Chair

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Phil Miller, C&S Wholesale Grocers, Elected Chair of the California Grocers Association Board of Directors

SACRAMENTO, CA (Dec. 6, 2019) – Phil Miller, Vice President, West Region, was elected the 2019-2020 California Grocers Association Chair of the Board of Directors at the Association’s Annual Meeting on Dec. 6, 2019 in San Diego, Calif.

As Chair, Miller 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 Kendra Doyel, Ralphs Grocery Company.

“Phil has been a tremendous CGA advocate and I know will serve the Association well in the coming year,” said CGA President & CEO Ron Fong. “He has a keen understanding of the unique challenges and opportunities facing our industry.”

In addition to Miller, the following individuals were elected to the 2019-2020 CGA Board of Directors Executive Committee: First Vice Chair, Hee-Sook Nelson, Gelson’s Markets; Second Vice Chair, Renee Amen, Super A Foods; Treasurer, Dennis Darling, Foods Etc.; Secretary, Lynn Melillo, Bristol Farms; and Immediate Past Chair, Kendra Doyel, Ralphs Grocery Co.

Directors elected to their first full three-year term include: Doug Christman, Beverages & More, Inc.; Sergio Gonzalez, Northgate Gonzalez Markets; Bryan Jankans, Mondeléz International; Joe Mueller, Kellogg Company; Subriana Pierce, Navigator Sales & Marketing; Chris Podesto, Food 4 Less-Stockton/Rancho San Miguel; Jaclyn Rosenberg, Nielsen; Jeff Schmiege, Unilever; Greg Sheldon, Anheuser-Busch InBev.

Directors elected to their second three-year term include: Willie Crocker, Bimbo Bakeries USA; Damon Franzia, Classic Wines of California; Jonathan Mayes, Albertsons Companies, Inc.; Doug Minor, Numero Uno Market, Inc.; Mike Ridenour, The Kraft Heinz Co.; Elliott Stone, Mollie Stone’s Markets; Joe Toscano, Nestlé Purina Petcare; and Richard Wardwell, Superior Grocers.

Chair appointments to the Executive Committee include; Denny Belcastro, Kimberly-Clark Corp.; Steve Dietz, United Natural Foods, Inc.; and Casey McQuaid, E&J Gallo Winery. Former CGA Chair Bob Parriott, Twain Harte Markets, was elected an honorary board member.

Recyclers of Last Resort

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CGA saves industry nearly $25 million

When Gov. Gavin Newsom signed Assembly Bill (AB) 54 into law last month, he validated an argument CGA has been putting forth for quite some time. Grocers should not be recyclers of last resort.

With hundreds of grocery store locations impacted by recent recycling center closures, AB 54’s temporary reprieve from this role will save California’s grocery community nearly $25 million through March, 2020.

“In the aftermath of this year’s surprise rePlanet closures, CGA stepped in to offer policy solutions to support the grocery industry, California’s environmental values, and the customers served by our industry,” said CGA President and CEO Ron Fong. “We applaud Assemblymember Ting’s sincere effort to craft a balanced policy approach that takes into account the unforeseen burden recycling center closures would place on grocers — especially due to the fact grocers did nothing to cause these closures.” 

This temporary relief marks a significant political feat. Its passage required a tight rope walk between competing interests such as local jurisdictions, manufacturers and environmentalists. And as a big problem that has gone unattended to for too long, despite our industry’s pleas, fixing the entire recycling ecosystem felt at times akin to homelessness, housing or any number of other intractable issues the state faces. All have in common the need to satisfy competing stakeholders amidst a complicated policy debate. In this regard, AB 54 also provides momentum heading into the next legislative season.

Under the newly-signed law, grocers impacted by recycling center closures that occurred between August 1 and September 1, 2019 are exempt from in-store bottle redemption and the $100-per-day fees in lieu of recycling, until March 1, 2020.  Retailers located in unserved convenience zones will now be able to partner with recyclers outside store location parking lots.

The bill also provides additional funding for low-performing recycling centers and earmarks budget resources for mobile recycling pilot programs.

“A number of our member companies have been working to spearhead mobile recycling initiatives,” Fong explained. “We’re excited the Governor saw the need for immediate action and that legislative efforts lined up behind new and innovative approaches to recycling.”

Because AB 54 contained an Urgency Clause, the bill went into effect upon its signing. This means any affected grocer will immediately benefit from the new law.

Update: Public Safety Power Shutoffs

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PSPS Event – (Nov. 20, 2019)

Pacific Gas & Electric has issued a Public Safety Power Shutoff beginning Nov. 20 for an undetermined length of time. For a list of impacted communities, click here. If you live in impacted communities, PG&E will attempt to contact you via telephone, text and email.

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Waivers for Out-of-State Power Generators

If you are obtaining a generator from outside of California, here is a summary of the requirements you need consider:

Because of the recent PSPS events, many businesses are working to secure backup generators, sometimes from out-of-state.

  • The engine to be used is certified to meet a California or federal emission control standard;
  • The owner or operator demonstrates that there is an immediate temporary need to operate the engine to help alleviate a threat to public health and safety that is the result of a reasonably unforeseen event, that is beyond the control of the owner or operator;
  • The owner or operator notifies CARB within 24 hours of commencing operation; and
  • The engine is operated only for duration of the Emergency Event, or up to 12 months, whichever comes first.

The link to the waiver Form 40 is:  https://ww2.arb.ca.gov/sites/default/files/2018-12/perp_form40.pdf

Please email the Form 40 notifications to: [email protected]

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PSPS Warning – (Oct. 29, 2019)

Weather conditions, including potential fire risk, have been forecast that may impact electric service to portions of our service area. If a decision is made to turn off power, we expect to start turning off power for safety as outlined below. If you live in these communities, PG&E will attempt to contact you via telephone, text and email.

Outages (weather event plus restoration time) could last longer than 48 hours. For planning purposes, PG&E suggests customers prepare for outages that could last several days.

PSPS Warning – (Oct. 25, 2019)

Weather conditions, including potential fire risk, have been forecast that may impact electric service to portions of our service area. If a decision is made to turn off power, we expect to start turning off power for safety as outlined below. If you live in these communities, PG&E will attempt to contact you via telephone, text and email.

Outages (weather event plus restoration time) could last longer than 48 hours. For planning purposes, PG&E suggests customers prepare for outages that could last several days.

PSPS Warning – (Oct. 23, 2019)

PG&E has confirmed it will shut off power to portions of 17 counties, including some in the Sierra Foothills, North Bay, San Mateo and Kern Counties, Oct. 23, due to necessary gusting winds and the threat of a major wildfire.

The shutoff is expected to impact approximately 179,000 customers in 17 counties: Alpine, Amador, Butte, Calaveras, El Dorado, Kern, Lake, Mendocino, Napa, Nevada, Placer, Plumas, San Mateo, Sierra, Sonoma, Tehama and Yuba.

For a list of impacted customer counts and cities per county, see www.pge.com/pspsupdates.

Timeline for safety shutoffs:

  • The shutoffs are expected to begin around 2 p.m. in the Sierra Foothills, 3 p.m. in the North Bay counties, and approximately 1 a.m. Thursday in affected areas of San Mateo and Kern counties.
  • Forecasts indicate the peak period of winds should end about noon Thursday in the Sierra Foothills, North Bay and San Mateo County, and around noon Friday in Kern County.
  • Once the high winds subside, PG&E will inspect the de-energized lines to ensure they were not damaged during the wind event, and then restore power. PG&E will safely restore power in stages as quickly as possible, with the goal of restoring the vast majority of customers within 48 hours after the weather has passed.

Find more information about how to prepare for a shutdown.

CGA Weighs in on Power Shutoffs

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In the past month PG&E power shutoffs have quickly become the new normal in California as the energy company works to mitigate wildfire across the state.

Because of the impact on our grocery community, CGA has taken a leading role in becoming a stakeholder for emergency planning solutions, but also in making our industry’s voice heard in the broader public.

On Thursday, October 25, The Wall Street Journal interviewed CGA CEO and President Ron Fong, who shared why grocery stores are among those most impacted by the recent shutdowns.

Grocery stores have been among the most affected during the shutdown because of their perishable inventory. Preliminary numbers indicate that grocers in California lost anywhere from $3,000 to $100,000 a store from the last blackout, said Ronald Fong, chief executive of the California Grocers Association trade group.

While many smaller grocers are planning to buy generators this year, Mr. Fong said it is a strain for them. Generators can cost $100,000 to buy and $20,000 a day to rent.

The Association has also worked to advocate for the industry at the Capitol, penning a letter to Gov. Gavin Newsom and PG&E. You can read the letter below.

Gov. Newsom Signs Bill Offering Recycling Relief to Grocers

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AB 54 provides a temporary fix to state’s recycling program.

SACRAMENTO, Calif. –Governor Gavin Newsom signed Assembly Bill (AB) 54 by Assemblymember Phil Ting (D-San Francisco) over the weekend, delivering California’s grocery community a much-needed respite from the state’s recycling crisis. 

The California Grocers Association (CGA) supported the bill and led the policy discussion concerning a temporary fix for California’s faltering recycling system. 

“In the aftermath of this year’s surprise rePlanet closures, CGA stepped in to offer policy solutions to support the grocery industry, California’s environmental values, and the customers served by our industry,” said CGA President and CEO Ron Fong. “We applaud Assemblymember Ting’s sincere effort to craft a balanced policy approach that takes into account the unforeseen burden recycling center closures would place on grocers — especially due to the fact grocers did nothing to cause these closures.” 

Under the newly-signed law, grocers impacted by recycling center closures that occurred between August 1 and September 1, 2019 are exempt from in-store bottle redemption and the $100-per-day fees in lieu of recycling, until March 1, 2020.  Retailers located in unserved convenience zones will now be able to partner with recyclers outside store location parking lots.

The bill also provides additional funding for low-performing recycling centers and earmarks budget resources for mobile recycling pilot programs.

“A number of our member companies have been working to spearhead mobile recycling initiatives,” Fong explained. “We’re excited the Governor saw the need for immediate action and that legislative efforts lined up behind new and innovative approaches to recycling.”

Because AB 54 contained an Urgency Clause, the bill went into effect upon its signing. This means any affected grocer will immediately benefit from the new law.

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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 150 grocery supplier companies.

Explore Your Industry

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The Magazine Built for California’s Grocery Community

With each issue, California Grocer takes in-depth looks at the most important political and business issues impacting our industry. In Issue 4, we provide a teardown of CBD, while in the recently published Issue 5, we build upon the topics explored during the 2019 CGA Strategic Conference to learn more about the gaps between our businesses and customers, employees, and new technologies.

Visit our online archive, or set aside your print copy for a Sunday morning read.

Register: Independent Operators Symposium 2020

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With CGA Strategic Conference behind us, we are speeding into the holiday season and new year. The 2020 Independent Operators Symposium is the signature event for independent retailers, providing a relaxing environment to reset and renew the vision you have for your business.

The 2020 Symposium will take place January 12-19, 2020, at the Fairmont Kea Lani on the beautiful island of Maui. Register today, or learn more about this annual retreat.

Gallery: 2019 CGA Educational Foundation Golf Tournaments

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This summer, California’s grocery community gathered in Northern California and Southern California to golf in support of the CGA Educational Foundation. Thank you to all who attended, as well as the tournament’s sponsors. These golf tournaments go a long way in supporting the scholarships and awards that are growing tomorrow’s grocery workforce. Below is a list of tournament winners and photo gallery.

2019 CGAEF Northern California Golf Classic

Winners

First Place
Fred Thumhart, Classic Wines of CA
Brian Hudgins, Classic Wines of CA
Dan Reid, Classic Wines of CA
Brett Rober, Classic Wines of CA

Second Place
Michael Philipps, RMG Organic Waste Recycling
Joe Perez, rePLANET, LLC
Juan Trillas, Bimbo Bakeries USA
Joe Lima, Raley’s

Third Place
Kathleen Smith, Albertsons
Victor Woods, Albertsons
Rick Whidden, SEB Security
jeffrey Scales, Albertsons

Longest Drive
Men – Cameron DeJean, Ogletree, Deakins, Nash, Smoak & Stewart
Women – Megan Conder – Kimberly-Clark Corp.

Closest to Pin
Men – Dan Reid, Classic Wines of CA
Women – Hillen Lee, Procter & Gamble

2019 CGAEF Southern California Golf Classic

Winners

First Place
Greg Sheldon, Anheuser-Busch
Cody Yorgesen, Anheuser-Busch
Jordan Wettstein, Anheuser-Busch
John Fehling, Anheuser-Busch

Second Place
Damon Franzia, Classic Wines of CA
John Larramendy, Classic Wines of CA
Phil Dubourdieu, Classic Wines of CA
Todd Singleyn, Classic Wines of CA

Third Place
Gary Vicek, Certified Federal Credit Union
Donna Simpson, Certified Federal Credit Union
Steve Weakley, Certified Federal Credit Union
Jay Lassister, Certified Federal Credit Union

Longest Drive
Men: Ted Baker, Whole Foods
Women: Heidi Spiller, Jelly Belly Candy Co.

Closest to the Pin
Men: Tony Lawrence, Mondelez International
Women: Deedee Laskey