2013, ISSUE 2

For the latest industry news visit www.cagrocers.com

CALIFORNIA GROCERS ASSOCIATION

IN THIS ISSUE

Unified’s Guiding Force Retires

Changing of the Guard

The Clock is Ticking

Meet Ed Hepler: Illuminator Headlite

CGA Advocacy:

MAKING STRIDES

W W W . C G A S T R AT E G I C C O N F E R E N C E . C O M

September 29 – October 1, 2013 | Palm Springs Convention Center | Palm Springs, California

Robust demographic movements, rapid technology innovations and fragmented shopping options are rewriting the rules of the game. Baby Boomers continue to influence strategies, however the new consumers, Millennials, are dictating different moves for players that want to win.

Constantly conversational, loyally agile and lifestyle conscious, this new breed of grocery shoppers requires game changing approaches that are personal, purposeful, transparent and uniquely relevant.

Plot your next move. Join grocery retailers from throughout California and discover how to capture this new consumer through breakout strategies and collaborative partnerships that will drive sales growth, add significant value to your business and ultimately reshape the competitive landscape of the grocery industry.

Conference Schedule Overview

SUNDAY, SEPTEMBER 29

F Illuminators Golf TournamentF Pre-conference General SessionF Opening Reception sponsored by

Kraft Foods and E&J Gallo WineryF After-hours Social Event

MONDAY, SEPTEMBER 30

F Collaborative Share Group DiscussionsF Opening Remarks and General SessionF Pre-scheduled Business MeetingsF Reception & Illuminators Special Event

TUESDAY, OCTOBER 1

F Multiple Educational Sessions & Retailer Spotlight

F Pre-scheduled Business MeetingsF Luncheon Keynote AddressF Meet with California’s Top Retailers

California’s competitive grocery marketplace is experiencing evolutionary changes that are transforming the way the retailing game is played.

For complete sponsorship information including a list of participating retailers and the sponsorship prospectus, contact:

Beth Wright Director, Events & Sponsorship California Grocers Association

(916) 448-3545 | (800) 794-3545 bwright@cagrocers.com

“ This conference provides an extremely efficient method for networking with colleagues and service providers. Given the intense level of grocery competition, I wouldn’t miss it.”

Richard Draeger, Draeger’s Supermarkets

Last year’s sponsorship opportunities sold out early so call today to secure your spot now for this year’s conference.

The 2013 CGA Strategic Conference offers a variety of sponsorship packages and new, customized opportunities to promote your company’s products or services. Sponsor benefits range from dedicated use of Business Conference Suites to 10’ x 10’ floor display spaces, or exclusively-presented social events. Whatever your desired outcomes, the 2013 CGA Strategic Conference offers a variety of opportunities to meet your goals and budget.

Many thanks to

The Illuminators for their continued, generous support of the CGA Strategic

Conference by providing the outstanding conference

meal functions and entertaining social events.

Meet with California’s Top RetailersDon’t miss this unique opportunity to meet with California’s top grocery industry decision-makers. All conference sponsors receive customized, pre-scheduled meeting schedules as part of their investment. Whether you represent a new, niche product or an established national supplier, the CGA Strategic Conference provides a highly productive forum to meet one-on-one with buyers from California’s top retail companies.

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Publication: California Grocer

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FEATURESCGA Advocacy: Making Strides Advocacy continues to be the Association’s No. 1 priority and great strides continue to be made by CGA’s government relations team. Yet, there is plenty of work to accomplish. With new challenges this legislative session, member involvement is more important then ever.

Unified’s Guiding Force Retires It‘s an old saw that you’ve heard in different ways 100 times. But if you look up the word “COMMITMENT” in the dictionary you’d find Al Plamann’s picture next to it.

Changing of the Guard There’s an old saying that the more things change, the more they remain the same. That seems to be an apt description for Unified Grocers, Inc., and also its legacy as Bob Ling takes over as President and Chief Executive Officer this May.

The Clock is TickingAs the nation counts down to implementation of a massive healthcare reform package, businesses from agriculture to retailing are more concerned than ever about the cost of the new regulations, the impact on hiring and staffing and its potential to derail an already fragile economy.

Meet Ed Hepler: Illuminator Headlite Ed Hepler is a 32-year veteran of the grocery industry who now adds The Illuminators Headlite feather to his cap. Find out why every grocery supplier should join this important and worthwhile organization.

C O N T E N T S | Issue 2

CALIFORNIA GROCERS ASSOCIATIONPresident/CEO Ronald Fong

Senior Vice President, Government Relations and Public Policy Keri Askew Bailey

Vice President, Communications Dave Heylen

Vice President, Business Development & Marketing Doug Scholz

Executive Director, CGA Educational FoundationShiloh London

Director, Events & Sponsorship Beth Wright

Director, CGA Educational Foundation Brianne Page

Director, Local Government Relations Sarah Paulson Sheehy

California Grocer is the official publication of the California Grocers Association.

1215 K Street, Suite 700 Sacramento, CA 95814 (916) 448-3545 (916) 448-2793 Fax www.cagrocers.comFor association members, subscription is included in membership dues. Subscription rate for non-members is $100 and does not include CGA Buyers’ Guide.© 2013 California Grocers Association

Publisher Ronald Fong E-mail: rfong@cagrocers.com

Editor Dave Heylen E-mail: dheylen@cagrocers.com

For advertising information contact: Tony Ortega E-mail: tortega@cagrocers.com

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COLUMNSPresident’s Message It’s All About Relationships .................................. 5

From The Chair I Know It’s Important, But .................................... 7

Viewpoint — Kevin Coupe What Retailers Can Learn From Netflix .............. 10

Foundation News — Shiloh London Recent College Grads Lack Real-World Fundamentals .................................................. 12

Capitol Insider — Louie Brown The Legislature Looking Ahead ......................... 30

Perspective — Chris Micheli Light at the End of the UI Fund Tunnel? ............ 34

DEPARTMENTSCGA News ....................................................... 14

Member Profile: WinCo Foods ........................... 20

Know the Law .................................................. 26

Government Relations ..................................... 28

Washington Report .................................... 38, 40

Sunset Fresh Market News ............................... 82

Wealth Management ........................................85

Advertiser Index .............................................. 88

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C G A | Board of Directors

EXECUTIVE COMMITTEE

CHAIRMAN APPOINTMENTS

DIRECTORS

SUPPLIER EXECUTIVE

COUNCIL

Veronica Rendon, Dave Thatcher Alta Dena Certified Dairy

Rick Van Nieuwburg Altria Corp. Services

Raul Aguilar Anheuser-Busch InBev

Dan Atkins Berkeley Farms, Inc.

Rickey Hamacher Bimbo Bakeries USA

Gilbert de Cardenas, Bob Cashen Cacique USA

Victoria Horton California Beer & Beverage Distributors

Cindy Plummer California Table Grape Commission

Mark Cassanego Carr, McClellan, Ingersoll, Thompson & Horn

Pat Huston, Robert Hilliard Cash Register Services

Damon Franzia Classic Wines of California

Nancy Limon, Dora Wong Coca-Cola Refreshments

Vic Chiono Coca-Cola Refreshments Minute Maid Business Unit

Stephenie Shah Diageo

Andres Jaramillo Don Pedro’s Kitchen

Thomas Wilson Flowers Baking of California

Scott Johnson, Shannon Nadasdy Financial Supermarkets, Inc.

Brian Rosen, Ann Wilson Gleason Inc.

Fernando Gallego Golden Gate Paper Company

John Hewitt Grocery Manufacturers Association.

Mickie Sharp-Villanueva Hansen Beverage Company

Elizabeth Alvarez-Sell, Greg Bailey The Hershey Company

Dennis Belcastro Hillshire Brands Company

Tim Cohen Hidden Villa Ranch

Kristina Crystal-McVay The J.M. Smucker Co.

Dave Jones Kellogg Company

Richard Bell LOC Software

Dave Madden MillerCoors

Steven Schultz Moss Adams LLP

Paul Cooke, Karen Doggendorf Nestle Purina PetCare

Jim Van Gorkom NuCal Foods

Laurie Stone PBI Market Equipment, Inc.

Paul Turcotte Pepsi Beverages Company – WBU

Vince Delgado Procter & Gamble

Melanie Zitting, Sue Sharp Pure Water Technologies

Renee Wasserman Rogers Joseph O’Donnell

Darrell Costello Roplast Industries Inc.

Greg Romero Stericycle ExpertSOLUTIONS

Tom H. Daniel Sterilox Food Safety

Mike Hinson TC Transcontinental Northern California

Phyllis Adkins TruGrocer Federal Credit Union

Vinit Patel Unilever

Dave JonesKellogg Company

Michael ReadWinCo Foods, Inc.

Dora WongCoca-Cola Refreshments

Chairman of the Board Kevin Davis Bristol Farms

First Vice Chair Mary Kasper Fresh & Easy Neighborhood Market Inc.

Second Vice Chair John Quinn Food 4 Less (Stockton) – Times Supermarkets

Treasurer Kevin Konkel Raley’s

Secretary Joe Falvey Unified Grocers, Inc.

Immediate Past Chair Jonathan Mayes Safeway Inc.

Raul Aguilar Anheuser-Busch InBev

Jon Alden Jelly Belly Candy Co.

Renee Amen Super A Foods, Inc.

Teresa Anaya Northgate Gonzalez Markets

Joe Angulo El Super (Bodega Latina Corp.)

Dennis Belcastro Hillshire Brands Company

Paul Cooke Nestle Purina PetCare

Kendra Doyel Ralphs Grocery Company

John Eagan Costco Wholesale

Chuck Eckman Kraft Foods Group, Inc.

Phil Gentile, Jr. K.V. Mart Co.

Jon Giannini Nutricion Fundamental, Inc. Warehouse

Diana Godfrey Smart & Final Stores

Frank Jimenez The Hershey Company

Bill Jordan Whole Foods Market

Eric Lindberg, Jr. Grocery Outlet, Inc.

Dave Madden MillerCoors

Dan Meyer Stater Bros. Markets

Omar Milbis Rio Ranch Markets

Phil Miller C&S Wholesale Grocers

Eric Nadworny Save Mart Supermarkets

Hee-Sook Nelson Gelson’s Markets

John Parke E & J Gallo Winery

Vinit Patel Unilever

Bob Richardson The Clorox Company

Brian Schmidt Acosta Sales & Marketing

Harish Solanki Big Saver Foods, Inc.

Naresh Solanki Bestway/Gardena Supermarkets

Mike Stamper Nestle DSD

Dirk Stump Stump’s Markets

John Swindell Food 4 Less/Foods Co. (A Kroger Company)

Paul Turcotte Pepsi Beverages Company – WBU

Jim Wallace Albertsons/Sav-On Pharmacy

Tammy Wilson Jax Markets

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It’s All About RelationshipsWhat’s great about relationship building is that it can occur at anytime and in anyplace. That time and place is now.

In May, two key California grocery industry

icons, Al Plamann, Unified Grocers, Inc., and

Steve Burd, Safeway Inc., retire after decades

of service to their respective companies and

leave legacies of leadership during some of our

industry’s most tumultuous times.

Both executives leave their companies in

very capable hands. Fortunately, over the

years CGA has nurtured strong relationships

with many associates at both companies

which helps ensure a smooth transition and

continued Association support.

Why do I mention this?

The California Legislature is in full swing and

CGA staff is sifting through hundreds of

introduced bills, closely analyzing each one to

determine its potential impact on your business.

It is a laborious undertaking but critical to the

success of our government relations program.

Yet, effective advocacy requires much more

than scrutinizing bill language and testifying

in committee.

Similar to our industry, it’s also about

relationships. In fact, a meaningful government

relations program cannot succeed with out it.

When I started lobbying in 1996, one of the first

legislators I met and developed a professional

relationship with was a freshman, Senator John

Burton. Years later Senator Burton became the

most powerful and influential leader in the State

Legislature and is now chairman of the California

Democratic Party.

Similarly, when I first met California Senate pro

Tem Darrell Steinberg, he was a city council

member. Over the years we have maintained

our friendship, meeting more so to listen than

to lobby. In both cases, these relationships have

helped CGA’s overall lobbying efforts.

This relationship building has national

implications, too. Over a dozen state legislators

who our lobbying team and I have built

relationships with over the years are now in

Congress. These relationships now continue

under a new capitol dome.

I share this because this month’s issue examines

the Association’s state and local advocacy

efforts. To many the information is foreign and

distant to the day-to-day operations of selling

groceries, and yet what happens in the State

Capitol and in city halls statewide has a dramatic

financial impact on your company.

Our hope is that by understanding how the

system works, our members will be more willing

to develop these same types of relationships

and engage dialogue with their elected officials.

Developing relationships at the local level can

benefit CGA years down the road. Quite often,

state legislators cut their teeth at the local level.

The relationship you develop now may one day

open an important door in the State Capitol.

One of the best ways CGA members can begin

building these critical relationships is to attend

this year’s Grocers Day at the Capitol on April

30 in Sacramento. This is CGA’s one-day lobby

event that allows our members to learn about

key legislation facing our industry and then to

meet with legislative leaders and staff in the

Capitol to discuss the impact of these bills on

our industry, and inevitably their constituents.

Go online at www.cagrocers.com and sign

up today. Help CGA build relationships and

strengthen our advocacy efforts. I look forward

to seeing you in Sacramento! n

P R E S I D E N T ’ S M E S S A G E

RONALD FONG

President/CEO

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Grocers Day at the Capitol

B U I L D I N G R E L AT I O N S H I P S . S T R E N G T H E N I N G F R I E N D S H I P S .

For additional information, contact Dane Hutchings, CGA, at (916) 448-3545. Sponsorship opportunities available. Please visit our website at www.cagrocers.com, or contact Beth Wright (916) 448-3545.

For over a decade, CGA Grocers Day at the Capitol has built bridges between the state’s grocers and policy makers. With significant policy issues as well as specific legislation taking center stage and new faces entering

the state house, participating in this banner event is more important than ever.

TUESDAY, APRIL 30, 2013SACRAMENTO, CA

F R O M T H E C H A I R

I Know It’s Important, But...When people in our industry learn that I am the Chairman of the California Grocers Association, the first comment I get is; “Wow, how can you do that with everything else you have going on?”

KEVIN DAVISCGA Chairman of the Board President and CEO Bristol Farms

This question is usually followed with a comment

like, “I know it’s important and I wish I had the

time to be more involved, but I’m just too busy

with business, etc.”

Invariably, sometime down the road, these

same individuals find themselves faced with

a government affairs situation, a lawsuit, a

licensing roadblock, a recycling issue, a food

safety situation, or a local ordinance, zoning

problem, or political campaign that will impact

their business in an unexpected way.

Typically as a last resort, they call CGA, or one

of our board members, for advice, a referral

to the appropriate staffer, or simply because

after spending tons of money on attorneys and

exhausting all other resources, they have run out

of options.

It occurred to me that there are many people

at all levels throughout California’s food industry

who just don’t understand the underpinnings

of CGA and how this great service and advocacy

organization works year-round to solve industry-

related problems, not only in Sacramento,

but locally, and even on the national level

when appropriate.

Many are unaware of the countless hours CGA

staffers spend behind the scenes to resolve

potentially harmful issues long before they have

the chance to see the light of day. Nor are they

aware of the many after hours events staff

attend cultivating important relationships.

The Association is not a private club, or fraternity

of grocers. It is a very open and far-reaching

advocacy organization whose primary objective

is representing our industry. Whether it’s

responding to media inquiries regarding an

industry-related issue, or representing us as a

united association of companies with a common

position in favor of, or against a certain political

position or new law, the CGA is our voice.

What’s even more important is that due to the

in-house expertise and excellent reputation

CGA Chair Kevin Davis (right) discusses grocery issues with Assemblymember Marc Levine.

Typically as a last resort, they call CGA, or one of our board members, for advice, a referral to the appropriate staffer, or simply because after spending tons of money on attorneys and exhausting all other resources, they have run out of options.

Continued on p. 8

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F R O M T H E C H A I R

CGA’s staff has earned, our voice, through CGA, is

willingly heard by policy makers and regulators for its

balanced, honest and well-thought out perspective on

the issues that face our companies, our customers, and

all Californians.

CGA membership is not an expensive proposition.

Participation in the form of time commitment can be

as little or as much as you or your company can

or want to commit. Membership fees are simply a

necessary form of fundraising to provide high quality

expertise and representation by CGA’s government

relations team where it matters most, in Sacramento,

and at the local level.

Board membership requires a little more participation,

but I find it no more time consuming than trying to

keep up with the hundreds of new laws affecting our

business each year. I would rather spend time having

experts explain the ramifications and options to me

in CGA’s bi-weekly legislative calls, or quarterly Board

Meetings, than trying to decipher them myself.

CGA’s membership dues, the minimal time commitment,

and strategic contacts I have developed over the past

three years through my CGA Board participation have

paid our company back many times over. I view these as

being essential to doing business in California.

Membership dues are essential to funding CGA’s

advocacy agenda. These dues, along with the

Association’s other revenue streams, allow staff to

engage in the critical issues that must be addressed

so that we can effectively operate our businesses.

If you are not yet a CGA member, I encourage you

to become one. If you are a member and have yet to

renew your membership, do so today. Participate in any

way possible to help strengthen our advocacy efforts,

for our employees and customers as we work with

lawmakers toward building our businesses and in turn

strengthening our economy and leading us to a better,

stronger, and healthier California. n

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