Advancing the Food Industry of Spring 2020

Grocers Get Green

Coming Soon!

“By combining the best of both companies, New Harvest Produce is positioned to be a customer’s first choice in fresh and cut produce.” Ron Carkoski, CEO New Harvest Produce

H. Brooks & Company File Name: HB_4C_(process)_logo_FNL.eps Color(s): 4-color process Our Classic Taste is Lookin’ Fresh The #1 cheese in the Upper Midwest now has a new logo, redesigned packaging and a fun, engaging brand personality, all under a new name Crystal Farms® Dairy Company. ©2019 Crystal Farms Dairy Company COVER In today’s marketplace, sustainability Sales and Advertising conversations are front and Karly Ackerman, Minnesota Grocers center. As an industry, we have Association the opportunity to be a leader by Editors meeting our customer expectations Jim Bohen, Bohen Communications Jamie Pfuhl, Minnesota Grocers Association while exploring innovative solutions. Design Ideal Printers Inc. MGA Board of Directors Chair Kris Kowalski Christiansen, Kowalski’s Companies, Inc. Contents Past Chair FEATURES Mark Collier, Superfair Foods Vice Chairs Brian Audette, UNFI 8 Reduce, Re-use, … Chris Coborn, Coborn’s, Inc. Greg Kurr, KEMPS Retail food industry consultant Michael Sansolo examines food Patrick Miner, Miner’s, Inc. chain strategies to support the challenges facing retailers. As Chris Quisberg, S&R Quisberg, Inc. Paul Radermacher, Radermacher Holdings, Inc. consumer awareness and demands grow, Sansolo discusses the Craig Thorvig, Chris’ Food Center need to be more focused on proactive sustainability solutions. Doug Winsor, Jerry’s Enterprises, Inc. Directors 9 Industry Peers Embrace Sustainability Efforts Jim Almsted, Almsted Enterprises Darren Caudill, Cub Foods As “Grocers Get Green,” see what your peers are doing world- Greg Cross, SpartanNash wide with their sustainability initiatives. Get a sneak peak at Bob Durand, Associated Wholesale Grocers Mary Fuhrman, Hy-Vee Food Stores innovative initiatives showcasing how customers can work with Curtis Funk, Lund Food Holdings, Inc. retailers to create change. Michael Hajlo, Pepsi Beverages Company Greg Hasper, Crystal Farms (MGA Council Chair) 12 Waste Not, Want Not Jaime Mackenthun, Mackenthun’s Fine Foods Minimizing food waste is essential for a profitable foodservice Kristi Magnuson Nelson, Hugo’s/Valley Markets, Inc. program. Jerry Soverinsky takes a deep dive into the process, Paul Martin, Willie’s Super Valu training, and goals that are needed to succeed. Tom Reinhart, Kwik Trip, Inc. Andrea Teal, Teal’s Management Lauri Youngquist, Knowlan’s Super Markets, Inc. 14 Spotlight on Industry Trends: Beverages MGA Staff The beverage category is key to our industry. These pages Jamie Pfuhl – President highlight trends and innovations. Karly Ackerman – Membership/ Communications Manager Katie Frederick – Accounting/Office 18 Online Grocery Shopping: Seven Key Research Findings Administrator Each year the Retail Feedback Group conducts an extensive study Mike Karbo – Vice President Government Affairs of online grocery shoppers in the United States. Brian Numainville showcases key takeaways from the report. This national study Minnesota Grocer covers the Minnesota food industry: , superstores, convenience delves into a wide range of topics, providing important insight stores, specialty grocers, wholesalers, sales agents into shoppers, as well as assessing use-share and satisfaction and manufacturers. Minnesota Grocer, published quarterly, is the official publication of the Minnesota among major service providers. Grocers Association. Subscription price is included with membership. Reprints available. 24 What Can-A-Business Do? In an effort to reduce our carbon footprint and to support Legal marijuana is roiling company drug policies. As legal Minnesota Business, MGA prints this magazine on Flo coated papers. Flo is made and manufactured in Cloquet, marijuana continues to grow, Stephenie Overman reviews policy Minnesota. It is FSC certified (meaning more trees are best practices with clear expectations. planted by the paper industry in these forests than are cut down to be used for making paper) and is made up of at least 10% recycled fiber. Minnesota Grocers Association DEPARTMENTS 1360 Energy Park Drive, #110 St. Paul, MN 55108 651-228-0973 (metro area) 6 From the President 30 Advertisers 1-800-966-8352 (outstate) 651-228-1949 (fax) 28 People, Stores & Companies www.mngrocers.com

Minnesota Grocer Spring 2020 5 From the President JAMIE PFUHL

“Sustainability is most often defined as meeting the needs of the present without compromising the ability of future generations to meet theirs. It has three main pillars: economic, environmental, and social. These three pillars are informally referred to as people, planet and profits.“

appy New Decade! I am But, today, sustainability customer-first strategies. This not sure what happened means much more than just ultimately requires a commitment to the last 10 years. People the “hot items” list or being from your entire community – always say time goes environmentally responsible; farm to fork. Hfaster the older you get – I am not it’s bigger than that. It’s about Sustainability is also front and admitting to getting older – but people, organizations and center for the MGA. There are time sure is going faster. responsibility. And, how we many disruptors in our day- Sustainability is front and approach these conversations to-day work and we have the center in all conversations these means much more than banning, added realities of a changing days. There are daily articles feeing or putting things in a blue legislative dynamic in Minnesota. about the bag – plastic, paper, bin. It’s about how we see our We, too, are mindful of what is reusable or none. Food waste role in the discussion and our going on around us, and cannot conversations are world-wide. ability to visualize solutions. waiver from our commitment And, I don’t have enough space When looking at industry to ensuring the MGA is a in this article to get into the trends for 2020, brick and sustainable organization. It straw debate. mortar sustainability is front is important to carry forward This issue of the Minnesota and center. The challenges the work of our predecessors – Grocer is exciting because we facing industry – mergers, labor 123 years is certainly a legacy are highlighting “grocers get shortages, regulatory creep, worth advancing. green.” As an industry, it seems dramatic landscape shifts and In the coming months we that we touch just about every more – are a bit overwhelming. will ask you to get a little more facet of the “green” chain. We Yet companies that are taking involved. You will see periodic make it, package it, sell it, provide a holistic approach, listening surveys asking for your thoughts, it as a service, or throw it out. to their customers, and staying opportunities to attend events, The interesting fact is that we true to their core competencies, and ways to share your ideas. have been innovators for years. are building a foundation for Please take a moment to let For decades, we have been their future. This is a task that us know what’s important to committed to zero waste, lighter cannot be taken lightly and you – this will provide guidance and more efficient packaging, requires a steadfast vision. to support our customer-first and the promotion of consumer We must be respectful of the strategy. Our sustainability, education. This issue (pages realities facing industry, but we too, depends on our entire 9-10) highlights a continuation cannot let disruptors shift our community. Personally, I am of the conversation, and industry focus. Companies can win by excited to see what we collectively peers who are taking “green” maintaining their core values – accomplish in the next decade. opportunities to the next level. quality, price, convenience, and

6 Minnesota Grocer Spring 2020

items such as plastic bags and straws. Already products such as reusable drinking straws and REDUCE, portable flatware are popping up in countless retail locations, from REI sporting goods to convenience RE-USE stores. And according to reports I’ve received, the items are selling. For the industry, there are clearly steps that need be taken fairly RETAIL… quickly. Inside companies, it appears that new efforts will be necessary to examine and eliminate areas of waste in the supply chain and in Written exclusively for the MGA consumer product packaging. by Michael Sansolo Clearly, some of those issues will require collaborative activity here’s no shortage of challenging reality with no simple between trading partners to challenges facing retailers solution that will satisfy growing determine how to address this in 2020. Competition is consumer awareness and demands. issue without creating brand new as hot as ever, especially The reality is that stores feature problems with product damage with the continued growth single-use plastics in nearly every or sanitation and food safety. In Tof electronic commerce and aisle and there are few locations many respects, efforts to address deep discounters. Consumer where shoppers are more aware this emerging issue may require desires and shopping habits are of this new and growing issue. cross-industry cooperation along changing quickly. There are countless other areas the lines of the efficient consumer And, to be honest, that’s just where single-use plastic is as big response moves from the mid- scratching the surface. It doesn’t (or bigger) a problem than in 1990s, which the industry undertook consider issues like the stunning supermarkets, but few of those to reduce inefficiency and decline in U.S. birthrates and industries are visited as often by uncompetitive practices. the challenges that portends for individual consumers. In addition, the effort is likely to the future. To add to the complexity, many require strong consumer education But add to the list the need to retailers say it is simply a matter of programs to help shoppers be more focused than ever on time until these concerns lead to understand the benefits and reasons sustainability, especially finding new forms of legislation that limit for changes in the packages they are ways to reduce or eliminate single- how single-use plastics are featured, used to selecting. Such education use plastics. There is nothing in that while regulations on is likely to extend to more detailed challenge that promises to be easy, products might well be the simplest information on packaging and but consider two important thoughts. way elected officials can act on this to websites that explain product First, a convenience chain retailer extremely complex issue. sourcing, carbon footprints and recently commented to me that the Sadly, the complexity doesn’t end numerous other very word convenience is almost a there. Retailers have no way complex issues synonym for plastic. So many of the of knowing with impacted by this items sold as convenience goods to certainty whether push for a greener shoppers in c-stores, supermarkets, the same shoppers shopping trip. drug stores or anywhere rely on the who are clamoring The bottom line is simplicity and convenience of single- for this change would that, as with all new use plastics. be wiling to pay more challenges in retail, this But, on the opposite side of things, for environmentally will not be addressed another retailer told me he is already friendlier packaging. simply and painlessly. receiving letters from school children Yet, in conversations But just as the industry has urging him to no longer offer single- with many retailers, I successfully (relatively) coped use plastic straws in his stores to hear a clear recognition that, these with new forms of consumer protect sea turtles and other marine uncertainties aside, the issue is not desires and competition, it will creatures. As the retailer said, once going away and will require action. have to stride to work on this new third-graders are involved, their Already we are seeing news challenge with creativity, energy parents will act sooner not later. reports of municipalities enacting and determination. So, the industry is facing a very laws limiting the use of specific 8 Minnesota Grocer Spring 2020 Industry Peers Embrace Sustainability Efforts As “Grocers Get Green,” see what your peers are doing world-wide with their sustainability initiatives. We have the opportunity to be a leader by meeting our customer expectations while exploring innovative solutions.

By 2025, 100% of packaging, including plastic packaging, will be reusable, recyclable or compostable. ALDI will also reduce packaging ‘Food in the nude’ is a New material across its entire range by at least 15%. The company is also Zealand campaign to end plastic committed to working with its supplier community to achieve the following packaging for fresh produce in comprehensive goals: supermarkets. Foodstuffs have • By 2020, 100% of ALDI-exclusive consumable packaging to include signed the New Zealand Plastic How2Recycle label; Packaging Declaration, which is • By 2020, implement an initiative to make private-label product packaging committed to making all store easier for customers to reuse; and private label packaging • Guide continuous improvement of product packaging by internal expertise 100% reusable, recyclable or and external evaluations. compostable by 2025. It has also introduced recyclable food trays – a measure that gives customers Companies’ the opportunity to divert more The Co. plans to pilot pharmacies are swapping white than 80 million trays from landfills a reusable packaging system for brown as they transition from every year. for leading consumer brands traditional white prescription bags to in an exclusive grocery retail a new recycled brown bag at 1,700+ partnership with Loop US LLC, a locations across the United States. circular online shopping platform The switch to the more sustainable H-E-B has stepped up sourcing developed by waste management bag is expected to save more than standards and transparency for firm TerraCycle. Products available 5,000 trees annually. Made with fresh, frozen, prepared and shelf- via the Loop platform come 100% recycled content, the new stable seafood. The San Antonio- packaged in reusable glass or bags include 60% post‑consumer based grocer said its updated policy metal containers and are shipped recycled content, making Albertsons augments efforts to source certified directly to consumers in a specially Companies the first major pharmacy wild-caught and farmed seafood; designed tote bag. After use, the chain to offer this type of bag. The expand traceability systems for all products are collected free from fiber in the new bags is certified to seafood products; prevent human consumers’ homes and then meet the Forest Stewardship Council rights abuses and support workers’ cleaned, refilled and reused. (FSC) standards for recycled content rights in seafood supply chains; and and is Rainforest Alliance Certified. foster environmental and ethical integrity in its canned tuna supply.

Working in partnership with Retail Business Services, which develops private brand products for each of the Delhaize USA local brands, will restrict certain chemicals from products and packaging, In an effort to reduce waste work with suppliers to ensure products meet high standards for ingredients and improve recycling, Woodward beyond what’s required by law today, and collaborate with suppliers to Corner Market will not use address root causes of contaminants. single-use plastic or paper bags at checkout. Instead, the all-new store is encouraging customers to bring their own reusable bags or Rochester, NY-based Food purchase two different types of Markets plans to pull single-use plastic reusable—and 100% recyclable— bags from all of its 47 New York stores early plastic bags, starting at 10 cents in 2020. At stores where the county or each. The new neighborhood municipality hasn’t already implemented operated by a 5-cent fee for paper bags, Wegmans will is among the first in the Midwest charge 5 cents per paper bag. The amount to only offer sustainable bag collected from the paper bag charge will alternatives made to be used up be donated to the local food bank serving to 125 times before needing to each region. be replaced. continued on next page Minnesota Grocer Spring 2020 9 Industry Peers Embrace Sustainability Efforts continued from previous page

Sobeys Inc., the second largest food retailer in Canada, announced that it aims to remove Thailand began the plastic grocery bags at all of its New Year with a ban on Sobeys-banner locations across single-use plastic bags at Canada by the end of January some major stores. This 2020, making it the country’s first means the customers national supermarket chain to will no longer be given eliminate use of the bags. With plastic bags to carry things the move, 225 million plastic bags they buy from those will be taken out of circulation, the stores. Many have found company reported. innovative ways to carry groceries. In Canada, Metro Inc. has launched a new initiative to rein in food waste. The Montreal-based food and drug retailer announced Pittsburgh, PA-based aims to eliminate single-use plastics 20 Metro stores now offer a 30% companywide, including in all stores and operations, by 2025 under a new discount on products nearing their sustainability platform. Plans call for Giant Eagle to begin the program this expiration date. Metro noted that spring by phasing out single-use plastic bags at 25 stores in three markets. the effort reduces food waste and This will pave the way for a broader effort to transition from single-use losses as well as the grocery bills plastics, including bags, straws, single-serve fresh food containers and bottled for customers who buy these near- beverages, among other items. expiring but still good products.

10 Minnesota Grocer Spring 2020 PARTNER OF HVAC

FOOD SERVICE

Are You Doing Business in Hennepin County? Food waste recycling mandate begins January 1, 2020. More information is available athennepin.us/businessorganics.

What do I need to do to be in compliance? 1. Have food waste recycling service in place. 2. Provide food waste collection containers backofhouse (such as in kitchens and dishwashing areas) and properly label them. 3. Separate food waste from trash and recycling in backofhouse operations. Food waste recycling is not required in frontofhouse areas, but may be required by city ordinance depending on your togo containers/packaging (currently required in and St. Louis Park). 4. Provide education and train employees annually.

Where can I get help? The MGA has been awarded a grant to assist our members with implementation we can help! Contact Karly Ackerman at [email protected] or 6512280973 for more information to support compliance in your store. he grocery/convenience store industry is well on its way to transitioning from the Cokes, smokes and gas mentality. Foodservice is the rising star among top category performers, delivering generous margins that can overcome waning Minimizing food waste is essential for a profitable foodservice program. Tdemand for gasoline and tobacco, along with rising labor costs and By Jerry Soverinsky credit card swipe fees. But it’s not you can build in appropriate padding. a foolproof golden ticket, as even You may start with 100 items, but if it the most established foodservice gets knocked down to 80, understand operators will attest. that pattern.” Concerns abound: labor, sanitation, Next, walk through the typical product. “We give a new product marketing, traffic control, public wear and tear that a fresh item relations, menu development, to three or four months [to succeed], endures. “If you want to hold looking at all aspects to see name a few. Even if you’ve managed something hot, don’t assume that to successfully execute all of these what works and you’ll just put it in a case and check what sells [as elements and their related concerns, it once an hour. You need to open in the process, thrilling a thriving well as how and close the door, mimicking what quickly] … throng of customers who crave would happen when customers see it your burgers and Instagram your under­standing in the store,” Derian said. that change milkshakes and frequent your coffee Each store is unique, with bar … there’s waste. Lots of it. And it can occur daily demographics and shopping or by the hour. We can quickly spoil the most promising patterns that impact foodservice foodservice program. look at weather and sales differently. Account for traffic, too.” Here’s a sobering statistic: 40% these variances in the planning of our nation’s food supply goes stage, examining product every WASTE GOALS uneaten each year. It’s the single 30 minutes to assess quality. “You Good greatest source of solid waste in need to understand the velocity merch­ the U.S., according to the National and customer demographic of each andising Resources Defense Council. (More store,” Derian said, “so that when is directly sobering: 1 in 6 Americans lack you push product out of the stores, tied to adequate access to food.) That’s you’ve already identified peak, low proper roughly $165 billion of uneaten and and shoulder periods.” Consider waste unsold food each year, enough to build and cook times of individual manage­ment, throw anyone’s foodservice balance products, which will help you explained Wynne sheet into the red. coordinate timing. “You don’t want Barrett, vice president of So, while a robust foodservice product coming out of the oven business development for program can provide generous at the beginning of shoulder time, Jera Concepts. But it’s not a sales opportunities for grocery/ for instance.” matter of eliminating convenience stores, managing food Don’t be afraid to waste product waste. Barrett said inventory—and hence waste—is during this testing phase. “Spoilage “targeted waste” critical for a healthy bottom line. is a cost of doing business,” said should be the goal, a A DELIBERATE PROCESS Ryan Krebs, director of foodservice customized value that The successful foodservice program for Rutter’s, the York, Pennsylvania- each company needs is not accidental; rather, it requires based c-store chain. “As far as I’m to evaluate. a systematic process, implemented concerned, there’s no such thing as “In strict terms, the by capable, well-informed staff. “It zero spoilage. If you try to get down industry looks at short- starts with design and R&D,” said to a minute amount, you probably shelf-life product waste Bob Derian, a partner of the Business don’t have offerings out in front of somewhere between Accelerator Team, “designing which your customers.” 10% to 20% (depend- products will go into the store. Will it The testing process should include ing on volume), and be those with a longer shelf life? Or tweaking product production, long-shelf-life products will they be products that are held for finding a sweet spot of supply and should have almost two hours?” Those are questions that demand. “If you sell two sausage no waste if the days must be considered and settled in biscuits, go make two more,” said between delivery al- advance, along with a shelf-life study. Lisa Lem, category manager, food low and proper stock “Understand what the products will service and dispensed beverage, rotation occurs,” he be doing, which ones will get ‘abused’ for Nashville-based Tri Star Energy, said, adding that more at your store, when in transit, or who recommends patience during when put on the shelves. That way, the testing phase, especially for new

12 Minnesota Grocer Spring 2020 forecast goals, that’s ideal. “If you wanted only two hours [on the shelf] but packaging allows for three, that’s much better,” he said. TRAINING FOR SUCCESS No matter the size of your foodservice operation, it’s important to train all employees who interact with the program. “If the store Minimizing food waste is essential for a profitable foodservice program. typically goes through one case of burgers a week, yet a new manager pulls five, that spoils four,” Krebs said. While many operators define waste “So, understanding your volumes by targets in percentages, Barrett said daypart and training your teams is it’s important to assess other key important to reduce waste.” management principles, including To aid in the implementation of subcategory merchandising goals, frequent any foodservice program, Barrett shelf life and subcategory expected deliveries recommends deploying software versus actual per-store profitability allow for tools that can address ordering and performance. “Unique to fresh food more precise production, inventory management development, the principles must forecasting. and product costing. The selected be enhanced with the creation of Barrett rec- platform should offer a degree of targeted waste numbers for each ommends eval- user friendliness, as well as integrate subcategory to ensure adequate uating individual with existing systems. merchandising and sales.” fresh food categories Depending on the size of the For Lem, waste percentage is for each day- operation, retailers may decide to important, but not at the expense of part, ques- pursue such tools internally. Krebs sales. “We want to make sure that we tioning in- said that Rutter’s is developing have product available, which means ventory sce- an internal, automated system of we focus on sales rather than waste,” narios and ordering that seeks to minimize food she said. “When we focus too much production waste. The data system analyzes on waste, we lose out on sales.” targets: sales, trends and spoilage, providing Whatever your measurement, Should the company with a suggested waste goals shouldn’t be fixed you run food order. “The goal is to take but rather reexamined over time, through egg away human error, removing the especially when new product is sandwiches by 10 a.m.? guesswork from a process that introduced. “If you start a breakfast Noon? Whatever your has a sharp impact on foodservice hot hold program, the likelihood for decision, “it’s important profitability,” he said. to be consistent with significant spoilage at the beginning this plan,” he said. “A is high,” Krebs said. “Don’t get IT’S A WRAP customer must have the shocked if you see 75% spoilage For those trying to apply same choices [available] on breakfast sandwiches. It takes foodservice experience from another with each visit.” time for customers to change their industry, the convenience store space The operator [shopping] behaviors.” is unique and comes with its own should measure SHORT SHELF LIFE challenges. “In restaurants, you can reuse steak to make sandwiches, gross profit margin Managing short-shelf-life products but in retail, if you waste a burrito, per item category requires discipline, Barrett said, you throw it away,” Derian said. As a after waste, choosing and a commitment to adhering to a result, “You need to understand how holding warmers, forecast. “While you can never guess to get the best quality, as well as shelf coolers and bakery when a bus may pull in … for short- life,” he said. displays to manage shelf-life products, make less more Easier said than done. Which is merchandising well. often and commit to the forecast,” why Krebs said while managing “Buying cooking he said. “Think of the forecast as spoilage is key, the focus must lie on equipment to handle guardrails on a road. Your challenge is quality, after which—hopefully— mass production only to narrow the guardrails as much as everything else will fall into place. hurts during slow you can.” “Yes, managing spoilage is key ... but times, and likewise At the same time, don’t overlook don’t go for getting no spoilage. offering short-shelf- packaging, an important component “Go for fresh.” life product during of preserving freshness. “You hours when staff is should be willing to pay more for This article was reprinted with limited can hurt the packaging,” Derian said. “It will help permission from NACS Magazine, the execution,” Barrett said. your product stay fresh longer and magazine for NACS, the association for give it a longer shelf life.” In cases convenience and fuel retailing; www. where packaging can extend your NACSMagazine.com.

Minnesota Grocer Spring 2020 13 Spotlight on Industry Trends: BEVERAGES

very sector of the food industry Back initiative, a sustained effort Smiles with Every Sip and Every Bite. is evolving at breakneck speeds. aimed at increasing the collection PepsiCo recently announced plans All aspects of the food chain – of plastic bottles so they can be to achieve 100% renewable electricity farm to fork – are innovating remade into new bottles, reducing for its U.S. direct operations this year. Eto meet the demands of customers, our reliance on new plastic and The U.S. is the food and beverage answering logistical changes, and making investments in recycling company’s largest market and reinventing the retail experience. infrastructure. These investments accounts for nearly half of its total Each issue of the Minnesota Grocer will be made through a new $100 global electricity consumption. magazine will spotlight industry million industry fund that will PepsiCo’s efforts in the U.S. build trends and categories. Check out leverage $400 million in investments upon its global progress in switching these trends! With new products with matching grants in key regions to renewable electricity around the hitting the shelf every day, see across the country. It’s meant to be world. For example, nine countries in how our beverage partners are a catalyst that spurs action from PepsiCo’s European direct operations going above and beyond to be all those involved in growing the already meet 100% of their electricity sustainability leaders in the industry. circular economy. demand from renewable sources. Together, we can reduce our use Additionally, in 2018, 76% of the * * * of new plastic and create a more electricity needs of the PepsiCo Minnesota’s sustainable future for generations Mexico Foods business were local beverage to come. The Minnesota Beverage delivered via wind energy. distributors, Association is proud to be a part of “We have entered a decade that bottlers this unprecedented initiative and will be critical for the future of and grocers looks forward to working with others our planet’s health,” said Ramon recognize who share our goal. Laguarta, Chairman and Chief the value of growing the circular Thank you, Minnesota Executive Officer, PepsiCo. “PepsiCo economy for recyclable material. We Beverage Association and is pursuing 100% renewable all share the goal of reducing the American Beverage Association, electricity in the U.S. because the amount of new plastic we use and for your historic support of the severe threat that climate change protecting our environment. This Minnesota Grocers Association and poses to the world demands faster is why America’s leading beverage your industry leadership. Contact and bolder action from all of us.” companies are making beverage Tim Wilkin at [email protected] or Thank you, Pepsi Beverages bottles out of plastic that is 100% 651-291-2722 or Steve Lodge at Company for your historic recyclable. Our bottles and caps are [email protected] to learn more. support of the Minnesota Grocers made to be remade - as such, they Association and your industry are not single use. * * * leadership. Contact Michael Hajlo Together, we can open a new PepsiCo at [email protected] or chapter in the journey toward a connects 952‑895‑1399 to learn more. circular economy. However, we all people through know it can only happen if all those some of the * * * involved in the recycling system world’s greatest No one wants to – businesses, governments and brands and most-loved foods and see waste where it nonprofits – reinvest in innovative beverages. From Lay’s and SunChips does not belong – ways that will lead to an increase to bubly, Gatorade and Pepsi – their in our waterways, in the recyclables that are collected beloved products are enjoyed by oceans and and remade rather than landfilled consumers more than one billion environment. That’s or discarded. times a day in more than 200 why The Coca-Cola Company is That’s why countries and territories around the leading the industry with our World competing world. The company strives to use its Without Waste initiative. We have beverage global scale for good and to create a vision for a World Without Waste companies products in a way that benefits their because it’s the right thing to do for that make up the American Beverage consumers, their suppliers, their our planet, our communities and our Association (ABA) recently joined communities and the planet – part business. Our goals include: Collect together to launch the Every Bottle of their mission to Create more and recycle the equivalent of a

14 Minnesota Grocer Spring 2020 bottle or can for every one we sell by plastic by partnering with leading bodies of water, it has a higher level 2030; Make all our packaging 100% environmental organizations. of BOD, which simply means that recyclable by 2025; Make bottles and Thank you, Great Lakes the waste will require larger amounts cans with an average of 50% recycled Coca‑Cola, for your historic of oxygen in order to metabolize. content by 2030; and Partner with support of the Minnesota Grocers The dissolvable oxygen needed for organizations, governments, industry Association and your industry untreated waste is taken away from and our customers to create a debris- leadership. Contact Dan Kueppers higher animals such as fish, creating free environment. at [email protected] or an environment that is not livable. We specifically design our bottles 651‑681-4145 to learn more. The High Strength Waste ERAG and cans using materials like PET Water Treatment process starts by V E and aluminum that are valuable collecting the run-off, which is then BE S * * * recyclables. Our bottles are not transported to the city’s waste water designed to be single use. They are treatment facility where it is run designed to be reused to make new through their digester, helping to bottles or cans. More than 97% of power their facility. Coca-Cola packaging is recyclable, Along with our water treatment and we are working to solve for the Viking Coca-Cola has a bottle and initiative, we have an aggressive remaining packages that have recycling can production facility in St. Cloud, recycling program that successfully challenges. We’re reimagining our Minnesota, and here’s a little about captures over 90% of all materials PACKAGING to use fewer resources how we’re invested in recycling and coming through the warehouse. Due and more recycled materials. protecting the environment. to this recycling program, our entire We believe it should be easier for In an attempt to avoid our 250,000-square foot warehouse Americans to recycle than it is to concentrate run-off from entering requires only 3 annual collections of throw items away. That is why we the sewer system, we have added our 1 trash compactor. High Strength Waste Water invest in partnerships that support Thank you, Viking Coca-Cola, recycling collection and education. Treatment to our routine. One of the main reasons for treating for your historic support of The Coca-Cola Company has a the Minnesota Grocers Association long-standing history of partnering wastewater prior to its discharge into a water resource is to lower and your industry leadership. with industry leaders to make a Contact Stacey Olson at greater impact. Recently, we joined its biochemical oxygen demand (BOD). When untreated waste enters [email protected] or with Keurig Dr Pepper and PepsiCo 218‑481-3215 to learn more. to reduce the industry’s use of new streams, rivers, lakes, and other

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Minnesota Grocer Spring 2020 15 YOUR FULL SERVICE REFRIGERATION CONTRACTOR SINCE 2005

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Let Solid Refrigeration put together a turnkey refrigeration design and installation package to meet your growing needs.

Photo Left shows a recent Solid Refrigeration rack installation at Jerry’s Foods, Eden Prairie Photo Lower Right is at Oxendale’s in Minneapolis

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Before you upgrade your existing equipment, feel free to contact us on how creative selections like reachin doors can put more money in your pocket through energy rebates.

Photo Left energy save R/I doors in use at Jerry’s Foods, Eden Prairie Photo Lower Right is at Cub Foods, Eden Prairie

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24 Hour Refrigeration Service Number (952) 8542850 Installation and Energy Management (952) 8542850 Equipment Sales Brandon Neuerburg (612) 5991395 Helping independent retailers be more profitable, efficient, and informed.

YOUR FULL SERVICE REFRIGERATION CONTRACTOR SINCE 2005

Solid Refrigeration is your complete commercial grocery store and refrigerant based industrial site Minnesota contractor.

We offer 24 hour 7 day a week regular and emergency service with truck and site inventory to get you up and running faster.

No job is too big or too small for our highly trained technicians and office staff with over 100 years of refrigeration experience.

Let Solid Refrigeration put together a turnkey refrigeration design and installation package to meet your growing needs.

Photo Left shows a recent Solid Refrigeration rack installation at Jerry’s Foods, Eden Prairie • Advertising Support Photo Lower Right is at Oxendale’s in Minneapolis • Asset Protection • Category Management • Customer Service • Financial Services • Food Safety • Graphic Services • Marketing Full size fleet to meet your customer needs. • Merchandising Solid Refrigeration specializes in energy management • Pharmacy based on store design to lower operational costs to help your bottom line. Solid Refrigeration works with energy • Pricing providers like Excel Energy to maximize your rebate potential. • Reclamation Support Services Group Before you upgrade your existing equipment, feel free to • Retail Development contact us on how creative selections like reachin doors can put more money in your pocket through energy rebates. • Retail Technology

Photo Left energy save R/I doors in use at Jerry’s Foods, Eden Prairie • Retailer Education Photo Lower Right is at Cub Foods, Eden Prairie • Shelf Technology • Supply Solutions

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24 Hour Refrigeration Service Number (952) 8542850 ContaCt us today and learn how we Can help your business! Installation and Energy Management (952) 8542850 Equipment Sales Brandon Neuerburg (612) 5991395 Visit SpartanNash.com or Call: Joe Hermes, VP Sales 616-878-2355 • joe.hermes@.com or Greg Cross, Development Manager 320-292-0382 • [email protected] ONLINE GROCERY SHOPPING:

Written Exclusively for the MGA By Brian Numainville, Principal, Retail Feedback Group KEY ach year the Retail Feedback Group conducts RESEARCH Ean extensive study of online grocery shoppers in the FINDINGS United States. This national study delves into a wide range of topics, providing important insight into 7 shoppers, as well as assessing use- share and satisfaction among major service providers. Read further and learn more about today’s online grocery shopping environment! Online Grocery Shoppers… Some Basic Facts More than half of the (22% in 2019 versus 21% in 2018). shoppers completing the The balance of share (12%) went to survey tried or shopped other providers. with just one online grocery Leads in Satisfaction provider in the last twelve Turning to overall satisfaction months. About 20% indicated they Leads in Share among those buying food and shop mostly or only online for food Shoppers indicated the grocery items online, Amazon and groceries, while 32% indicated provider they used on their most still registers the highest score they shop online and in-store recent online grocery shopping on a five-point scale where five about equally and 48% mostly experience. As Walmart increased is highest (4.60; a drop from 4.70 shop in-store and occasionally their focus on online grocery last year), followed by Walmart shop online for food and groceries. shopping, they surged to register (4.45; a drop from 4.54 last year) Fulfillment by pickup appears to the largest share (37%, up from and supermarkets (4.43; an be “picking up” with 47% of those 32% last year) as compared to improvement from 4.36 last year). surveyed now indicating their Amazon (29%, down from 31% Interestingly, shoppers with orders orders were picked up (compared last year) and supermarkets fulfilled by Instacart have an overall to 43% in last year’s study). held about even for both years satisfaction score of 4.58, similar to

18 Minnesota Grocer Spring 2020 that of Amazon, and higher than experience. On the other hand, well as more experience by online both Walmart and supermarkets. providing products best meeting providers in successfully meeting Amazon shoppers also rated standards for quality and freshness the expectations of consumers in six of the twelve touchpoints of remains somewhat of an advantage these departments. the online shopping experience for in-store shopping. In general, At the same time, among those significantly higher however, it appears that the shoppers not giving top marks compared to how differences between online and for meeting standards for quality supermarket shoppers in-store food shopping are moving and freshness, produce is the and Walmart shoppers to more of an equivalence in the department with the highest rated their providers. While minds of shoppers. For seven of percentage of mentions (45%). supermarket shoppers still the twelve factors measured, 50% Impulse Purchases Alive and Well recorded lower satisfaction or greater of shoppers find the Among Online Grocery Shoppers scores on about half of the factors are equal for both types Shoppers were asked if they were elements measured, versus of shopping. enticed to purchase additional Amazon and Walmart online These results show that the items during their online order. grocery shoppers, there was growth and maturation of online The good news for retailers is similarity with shoppers of these grocery shopping continue to erode that nearly four in ten shoppers other providers on five elements. the advantage once held by the answered affirmatively, with top Supermarkets Gaining Ground… But shopping experience at a physical reasons including noticing sales or Still Show Room for Improvement store. Consider, for example, that good values, citing that items were While supermarkets share of use 71% of shoppers now indicate new or interesting, or remembering held about even, it appears they that showing a company knows that they needed an item while are gaining ground in other areas. and cares about food is equal placing their order. Somewhat First, supermarkets registered the for both online ordering and fewer shoppers indicated that they highest percentage of first-time use shopping in‑store! were enticed by noticing items by online-grocery shoppers (22%, Fresh Departments Continue to Grow were fresh or in-season, or that compared to 18% for Walmart and Online…Yet Produce Still Falls Short the site or app recommended 9% for Amazon). In the 2018 study, the findings the item(s) based on their cart or Supermarkets also showed an illustrated increased levels of prior purchases. improvement in overall satisfaction purchasing fresh food items by Conclusion (but still with the lowest score) online grocery shoppers. This As these findings clearly while both Amazon and Walmart growth appears to be holding illustrate, the state of online grocery registered declines year-over-year, with fresh food departments again shopping continues to change as noted earlier. registering double digit percentages and offers plenty of opportunity! A less stellar finding centered in 2019. Retailers can use the findings of around receiving all items ordered. this research to benchmark their Supermarket shoppers reported Percent own online grocery shopping the highest percentage of NOT Department Purchasing service and further strengthen receiving all items in their online Online their offerings. order (8%) compared to Walmart Produce 41% (5%) and Amazon (3%). Want to Learn More? While momen­tum for the su- Meat 36% The findings summarized in this article are just some that permarket channel shows an en- Bakery 35% couraging direction, opportunity are available in the full study. remains for share growth, improve- Deli Meats & Cheeses 32% MGA members may receive a ment in shopper satisfaction, and Prepared Food & Meals 26% complimentary copy of the 2019 accurate order fulfillment in online U.S. Online Grocery Shopper Study Seafood 14% grocery shopping. by contacting Brian Numainville It appears that shopping of Retail Feedback Group at bn@ Online Versus In-Store… online for fresh items is now a retailfeedback.com. Parity Now More Prevalent more accepted part of the online Efficiency and convenience grocery shopping experience. This remain hallmarks of online food ONLINE growth may be a combination of a continued on and grocery shopping, coupled broader cross-section of shoppers GROCERY SHOPPING: next page with, to a lesser extent, an engaging in online shopping, as enjoyable and pleasantly surprising Minnesota Grocer Spring 2020 19 2019 U.S. Your Listening Partner™ Online Grocery Shopper Study Overall Satisfaction 3% Amazon Still Leads; AMAZON Supermarkets Improving Supermarket 2018 2019 2018 2019 2018 2019 4.36 4.43 4.54 4.45 4.70 4.60 Shoppers Report % SUPERMARKETS WALMART AMAZON Highest Incidence 5 of NOT Receiving WALMART Boomers Show Highest Satisfaction with Online Food Shopping All Items in Order

2019 2019 2019 % 4.45 4.48 4.56 8 SUPERMARKETS MILLENNIAL GEN X BOOMER Highest First-Time Use Enticed to Purchase? 22% 18% 9% Nearly Four in Ten Shoppers SUPERMARKETS WALMART AMAZON Were Enticed to Purchase % Additional Items During 39 Their Online Order Walmart Share Grew % 12 % Sharply Compared 62 Noticed it was on sale or a good value % % 37 to Amazon and 15 34% Noticed it was new or interesting Supermarkets 32% % % % Remembered I needed the 22 21 2018 31 item(s) while placing my order Supermarkets 18% Noticed it was fresh or in-season % The site/app recommended Walmart 31 % 17 the item(s) based on my Amazon cart or prior purchases All others 29% 2019 Multiple responses allowed

Which Items Fell Short of % CENTER FROZEN DAIRY 45 STORE Your Quality % Standards? 22 % % % Multiple responses allowed MEAT 26 25 23 Base: Those not giving PRODUCE highest quality rating. Ordering Online Versus Shopping In-Store Moving Towards More Parity

Provides more value for the money spent Offers a better selection of products for More convenient More pleasantly Shows company your needs for you knows/cares about food surprising Provides better Provides products Makes the most customer service best meeting your More enjoyable standards for quality efficient use of Takes better care of Makes you feel your time securing personal info more valued and freshness Ordering as a customer Shopping Provides more personalized Online shopping experience In-Store

*This infographic illustrates the key findings of the2019 RFG U.S. Online Grocery Shopper Study. 20 Minnesota Grocer Spring 2020

See Yourself in a Retail Food Industry Career

From farm to fork, the retail food industry offers many diverse careers. The possibilities are endless, we offer excellent benefits and pay, with the flexibility to fit today’s evolving workforce. A new career in Minnesota’s Food Industry awaits you!

Cashier, Stocker, YOUR FUTURE Bagger, Clean Team, Food Production Clerk, Greeter STARTS HERE Customer Service

Specialty Department Manager, Store Manager, Assistant Store Manager Service Supervisor/Manager

District Manager, Training Support Representative, HR Support, POSSIBILITES ARE ENDLESS Operations Manager

The Minnesota Grocers Association Foundation (MGAF) will provide tuition support for classes completed for the specific purpose of furthering employees’ current career or making available to them other careers offered by their employer. This round of Carts to Careers program awards will be facilitated through the Retail Management Certificate (RMC) program, an online, 8course education run by Alexandria Technical & Community College (ATCC). ATCC is the first in the state to offer an industryendorsed, accredited business education program endorsed by the National Grocers Association (NGA), Western Association of Food Chains (WAFC), Food Marketing Institute (FMI), Minnesota Grocers Association (MGA), and the U.S. Department of Labor. The ATCC Retail Management Certificate (RMC) Spring course starts March 16, 2020.

How does the MGA Carts to Careers (CTC) Tuition Support Program Work The process is a simple onestep application. An independent selection committee will evaluate all applications and select CTC recipients. Each CTC recipient will be awarded $2,000 in tuition support. This round of the CTC tuition support application process closes endofday February 25, 2020. Once CTC recipients are approved, awardees will be notified via email on the next steps in the application process with enrollment in ATCC by March 16, 2020. The next round of CTC tuition support opportunities will coincide with ATCC’s next class start of May 18, 2020. CTC tuition support is available through a State of Minnesota grant appropriation and Minnesota Grocers Association Foundation funding.

We are here to help, contact Katie Frederick at [email protected] or Jamie Pfuhl at [email protected] or at 6512280973. www.wileywallaby.com

Over 80 Years Experience www.CarlsonStewart.com 1-800-215-2576

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Commercial Refrigeration Design, Installation, Service & Repair Our team of experienced technicians, engineers, and installers is dedicated to helping you keep your products cold and . Refrigerated Merchandisers . Rack System Design fresh 24 hours a day, 7 days a week, year-round. Our team knows and serves grocery stores from the small-town grocer to larger supermarkets. Our dedicated service departments can service and repair any brand of equipment, . Process & Production Room Cooling . System Controls control system or walk-in cooler or freezer. It’s simple; if you want a company that understands your needs, is able to . . help you no matter your location and has the expertise you need, it’s time to give Carlson & Stewart Refrigeration a try. Walk-In Coolers & Freezers Emergency Services And we also can maintain your HVAC equipment too! Remember, it is our number one priority to assist you in serving . Installation & Design . Repair & Replacement Parts your customers by keeping your equipment in top condition and running as efficiently as possible. Legal marijuana is roiling company drug policies By Stephenie Overman

hanging marijuana laws legalized marijuana can make it in Ohio carry state-issued cards that and consistently low difficult for employers to? comply with allow them to use medical marijuana. unemployment rates both state and federal laws and has At Beck Suppliers, “There was a are causing grocery/ caused many retailers to question lot of discussion: What is worse, convenience retailers to whether their policies and practices marijuana or alcohol? What if it’s Crethink their drug testing policies. should be revised. What remains clear not being done at work?” Bouillon More than 30 states now allow the is that employers should evaluate said. “We were looking at everything. medicinal use of marijuana, and 10 their workforce drug policies and The whole picture—the low rate of states and Washington, D.C., allow assess whether they are prepared unemployment, turnover, how we do recreational use for adults 21 and to handle the consequences of their orientation and onboarding and how older. But companies are not required policies in the wake of increased a job seeker sees our process.” to accommodate on-the-job use, legalization and decreased stigma. A big concern was how long it and marijuana use remains illegal was taking to get from one stage under federal law, still listed under Policy Review to the next in the application and the Controlled Substances Act as a Recreational use of marijuana hiring process. “Overall, we wanted Schedule I drug, which is defined as became legal in Michigan last to improve the experience of the having no medical value and a high December, but Quality Dairy Co., applicants and new hires and produce potential for abuse. based in Lansing, “still follows federal a quicker hire.” Courts in some states have held laws concerning marijuana,” said Lisa Eliminating pre-employment that the federal law pre-empts state Benson, director of human resources. testing and condensing the process laws concerning medical marijuana, Quality Dairy, which has about 30 “took a lot of frustration off the while other states have rejected stores in Michigan, uses a third-party hiring process. It has made it so that argument. vendor to conduct tests for drugs, much quicker to get people in the Registered medicinal users in some including marijuana and opioids, at door,” she said. “The benefits of not states may have job protections, but the time of hire, before a promotion doing [tests] are greater than doing state statutes with nondiscrimination and for probable cause. them for everybody. It has helped all provisions for medicinal use usually But Quality Dairy is reviewing of our stores—they hire when they exclude jobs that test under federal parts of its policy, Benson said. Some need someone.” law, Lisa Nagele-Piazza wrote for managers “feel that marijuana should Beck Suppliers does continue to the Society for Human Resource be taken off” the list. “It’s something test for reasonable cause, Bouillon Management. Some states, including we’ll have to look at. We have lost said. “We watch job performance California and Ohio, do not provide some good workers,” she said. and attendance, and if we suspect workplace protections for medical Beck Suppliers Inc. conducted somebody, we make the decision” marijuana users, even if they are drug screening for nine years but, to test, she said. If the employee following state law and limit their following long debate, eliminated tests positive, managers have the use to off-duty hours, she wrote in an pre-employment and random drug flexibility to fire the employee or to article titled “The ABCs of THC: What testing in July 2018, according to June refer the person to the company’s Employers Need to Know About Bouillon, director of human resources. Employee Assistance Program. Marijuana Laws.” The company is based in Fremont, “We give managers the ability to The ever-changing landscape of Ohio, and an estimated 13,000 people work with somebody who is a good

24 Minnesota Grocer Spring 2020 worker.” Again, drug testing following to work high. Employees admit it or accidents and testing for drivers and walk in with it. They think ‘it’s legal, some other workers fall under federal I can do it.’ They think it’s like a agency rules. cigarette,” Kostecka said. Has dropping pre-employment But Vintners Distributors has a testing encouraged drug users to drug-free policy based on safety, and apply for jobs? “Currently I don’t violating that policy is grounds for think so,” she said, but added that the termination, she said. “Even medical company “left the option open. When marijuana cannot be used while we announced, we included a clause at work.” that if this becomes an issue, we could The company is working hard to go back to the old policy.” make sure it clearly spells out its

policies and educates employees The California Way about them, Kostecka said. “We’ve California was the first state to updated our handbook to clearly enact protections for medical cannabis define that marijuana is included in patients, beginning in the 1990s. the drug and alcohol policy.” Recreational marijuana sales became Whatever drug policy a company legal in the state in January 2018. decides on, make sure it’s fair and Find Captain Ken’s Vintners Distributors Inc. “would consistent, said Rob Wilson, president love” to conduct pre-employment of Employco USA, a national OVEN-BAKED BEANS, drug tests for job applicants at its employment solutions firm based in CHILI, AuGRATIN POTATOES 130 Loop Neighborhood c-stores, all Westmont, . And, yes, he said, and more in the frozen section in California, said Valerie Kostecka, spell it out in the employee handbook. of your favorite grocer. Vintners director of human resources. Although companies can conduct “In this market we can’t [test] at drug tests inhouse, there are the moment for pre-hire; we are so advantages to using a vendor, Wilson eager to get candidates right now,” said. It’s not only more convenient, because of the low unemployment but it can give employees a sense of rate, Kostecka said—a concern voiced impartiality when tests are conducted by many HR managers. “It’s hard by a third party. Learn more at www.captainkens.com enough to find candidates. The more Using a computer program to you use the screening process, the choose employees for random further it reduces the applicant pool,” drug tests is another way to make she said. “Once loosens employees feel that the process is up, I will look back into pre-hire drug fair, he added. That way, “HR doesn’t testing again.” have to say, ‘I picked you for this.’ You The company does not conduct can show that the computer program reasonable suspicion drug testing made the pick; it wasn’t that the because California requires strict person was suspected” of drug use. formalized training for such testing. However testing is done, “you need “California is extremely strict on to have a consistent message. What if reasonable suspicion, so we really because of low unemployment you’re stay clear of that one,” according to willing to sometimes look the other Kostecka. The company has a medical way? What happens when you meet advisor that managers can contact for that rock star and they don’t pass the safety and medical questions. drug test? If you hire that person, it Some California cities don’t allow could be discrimination,” Wilson said. drug testing for reasonable suspicion, “You need to make it consistent.” she said. Companies have to comply And until the conflict between with city regulations, and “multiple state and federal laws is resolved, cities have different regulations, Got Ads? you should: Stay up to date on the especially cities like San Francisco, quickly evolving marijuana laws; which are very employee friendly.” develop state-compliant workplace The company does conduct post- drug policies that are appropriate for accident tests, considering city as well your company, potential applicants as state and federal requirements, and employees; apply your marijuana she added. policies in a uniform fashion; and contact counsel if any concerns Clear Expectations regarding specific incidents arise. Employees have many misconceptions about marijuana use, This article was reprinted with contact [email protected] Kostecka said, and sometimes think permission from NACS Magazine, the that because it is allowed by the state magazine for NACS, the association for recreational use it can be used on for convenience and fuel retailing; the job. “We have had people come www.NACSMagazine.com.

Minnesota Grocer Spring 2020 25 Sunday, July 26 - Tuesday, July 28, 2020 Madden’s Resort, Brainerd

Thank you to the following 2020 Annual Conference Sponsors! The list below contains sponsorships received by January 2020. Associated Wholesale Grocers, Inc. Barrel O’ Fun & Rachel’s Bimbo Bakeries USA Crystal Farms Blue Bunny KEMPS Country Hearth / Pan-O-Gold Baking Company Pepsi Beverages Company H. Brooks and Company SpartanNash Hormel Foods UNFI / Cub J&B Group / No Name KeHE Distributors Land O’ Frost / Ambassador Post Consumer Brands SCR / Hill Phoenix Arctic Glacier Ice Valley News Company Great Lakes Coca-Cola Hy-Vee With the MGA, it’s always a home run! Keurig / 7UP This event delivers immense Old Dutch Foods, Inc. educational value and unparalleled networking Russ Davis Wholesale in a relaxing and festive atmosphere.

Get Your Sponsorships in Today! Contact Karly Ackerman at [email protected] or 651-228-0973 SMILES BEYOND THE AISLES. Hy-Vee is proud to serve our customers across Minnesota, both inside and outside our stores.

2020 Capitol Outs

Stay informed with biweekly conference calls during the Minnesota legislative session. Capitol Check Outs are a great opportunity to educate and engage. Capitol Check Outs are a 30-minute update given by the MGA Government Affairs Team. They provide interactive, pertinent and uptotheminute legislative information. Calls are every other Friday at 8:30 am, starting on February 7 and running through May 2020.

Contact Mike Karbo at [email protected] or 6512280973 for more information or to receive a calendar invite.

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1-800-BEST EGG www.sparboe.com People, Stores, Companies

Casey’s General Stores, Inc., Ankeny, IA, debuted its loyalty program. It allows customers across the company’s 16-state footprint to earn points on purchases that can be redeemed for Casey’s Cash and fuel discounts.

CAREtrade, a KeHE program founded by a group of the Naperville, IL-based distributor’s employees, named its 2020 partners. The program, which identifies and promotes a set of brands that Aldi, Batavia, IL, held the grand opening of its store in St. Paul’s Sibley Plaza. The advance a higher purpose than store gave away gift cards and reusable bags, plus a year’s supply of produce to one commercial success, aligns with the lucky customer. Featuring the company’s new layout, with 40 per cent more fresh natural, organic, specialty and fresh products and more organic, convenient and easy-to-prepare options, the store has company’s dedication to service. This natural lighting and used environmentally friendly building materials. It’s part of year’s partners are: Argania, producer Aldi’s multi-billion-dollar effort to expand to 2,500 stores and remodel others by the of authentic Moroccan Argan Nut end of 2022. Aldi currently has more than 1,900 stores in 36 states serving about 40 million customers each month. butters paying fair wages to co-ops of Berber women; Project 7, which gives up to 50% of its profits on Hy-Vee Inc., W. Des Moines, IA, and its customers raised $227,750 specialty gum and candy to causes ($100,000 from the company) and Hy‑Vee provided 85,000 free breakfasts to like saving the earth and housing the vets as part of its Homefront Round Up and Veterans Day Breakfast initiatives. homeless; Beyond Good, which helps Proceeds benefited Hope for the Warriors, Operation First Response and Madagascar cocoa farmers and their the American Red Cross. Since 2013, Homefront has raised more than communities; Equal Exchange, the $1.9 million. first U.S. Fair Trade coffee company; and Rumi, an American vet-run spice company helping Afghan farmers Customers and cashiers at 16 , owned by Miner’s Inc. that hopes to expand into other war- of Hermantown, raised $28,687 for the Solvay Hospice House in 2019. torn countries. KeHE debuted its DIVERSEtrade initiative to help identify and support diversity in the food marketplace. The program, with a 2019 class of 130 suppliers, is designed to help LGBT- certified and women-, minority- and vet-owned suppliers by removing barriers to distribution. Hormel Foods Corp. was named one of America’s Most Responsible Companies by Newsweek magazine. A research firm named 300 companies from the 2,000 public companies it looked at, using surveys and data from annual and corporate responsibility reports. The firm considered companies’ environmental stewardship, social Stores, Inc., Boone, IA, partnered with Austin-based Hormel Foods values and corporate governance. Corporation, makers of Skippy®, to donate nearly 7,500 pounds of peanut butter to those in need during the holidays through the Channel One Regional Food Bank. Casey’s opened a new store The peanut butter will make an estimated 120,000 sandwiches. Fareway operates in Mountain Lake in October 122 stores in Minnesota and four other Midwestern states. Hormel celebrates its that features an expanded 129th anniversary this year. Pictured (left to right) are Jessica Sund and Virginia kitchen and more fresh food and Merritt of Channel One, Robert Hruska, Grocery manager of the Stewartville beverage options. Fareway, and Fareway Truck Driver Starr Westberg. 28 Minnesota Grocer Spring 2020 People, Stores, Companies

Michael Wright, former CEO of Supervalu of 20 years, passed away on January 27 at age 81. He started working at Supervalu in 1981 and retired as chairman in 2002. During his tenure Supervalu experienced tremendous growth, making it the largest food distributor at the time. And, with Cub Foods as its flagship became the 10th largest retail grocer. Wright had a passion for industry, was incredibly well respected, and left a lasting impact on the business as we know it today. The Consumer Brands Association, formerly the Grocery Manufacturers Association, launched in January 2020. The association is an advocate for product affordability, access and innovation; eliminating consumer confusion; and solving problems in the marketplace. The Second Harvest Food Bank presented the Hibbing Super Associated Wholesale Grocers, Inc., Norfolk, One Foods with a plaque to honor its 2019 donations. Store NE, celebrated its annual Giving Tuesday last Dec. 3 to employees and Salvation Army representatives stand behind highlight the charitable fundraising efforts of employees products store customers helped purchase. Miner’s, Inc., in its 10 distribution centers. They raised $75,000, with Hermantown, owns the store. matches by AWG, through the AWG Cares Employee Charitable Foundation, which helps employees support Casey’s General Stores, Inc., offered guests and charities they care about. Employees also donated time local non-profits the chance to win $1,000 every time to food banks, homeless shelters, children’s hospitals and a shopper placed an online order through its website other worthy groups during the company-wide Day of or mobile app as part of the company’s “Here for the Service last October. Holidays” promotion. Casey’s awarded 12 prizes, each consisting of $1,000 to a guest and $1,000 to a non-profit Coborn’s, Inc., an employee-owned grocery/ in the guest’s community. pharmacy chain based in St. Cloud, launched a new $9.99 Diabetes Management Program to help customers better The Kenwood Super One Foods store in Duluth afford and manage diabetes. In partnership with Arkray celebrated National Eat Smart Month with the American USA, Coborn’s offers customers free glucose meters and Heart Association last November with giveaways, free wellness materials and a 50-count supply of test strips for healthy recipes and CPR training. Miner’s, Inc. of $9.99. (Those with insurance pay about $30 for 50 strips; Hermantown, owns the store. those without insurance can pay up to $90.) The Fareway Stores Inc. Worthington store won “Best of the Globe” for area MGA 2020 Member Events supermarkets from that city’s Daily AWG Showcase & Annual Meeting Globe newspaper. Winners were Send us your news! March 23-25, 2020 chosen by votes from readers in six Overland Park Convention Center Please contact us with your southwestern Minnesota counties Overland Park, KS and one county. news so we can share your [email protected] story in this section. UNFI National Expo The SpartanNash Foundation Minnesota Grocers Association August 9-11, 2020 and SpartanNash store guests and c/o Karly Ackerman Minneapolis, MN associates raised $271,150 to support 1360 Energy Park Dr., Ste. 110 more than 100 food pantries and St. Paul, MN 55108 food banks in the 8 Midwestern states where the Grand Rapids, Telephone: 651-228-0973 or = Community Service/ MI-based company operates. The 1-800-966-8352 Charitable Giving Initiative foundation granted an additional Fax: 651-228-1949 Environmental/Sustainable $75,000 to 15 food pantries near its E-mail: [email protected] = distribution centers. The donations Efforts will provide the equivalent of 35 = Healthy Initiative million meals. Minnesota Grocer Spring 2020 29 BE A SURVIVOR

Not all independent grocers are going out of business. Independent grocers can still compete and win!

Not as profitable as you once were? Independent grocers are in a fight for their lives. Don’t be the next grocer forced to shut their doors. Continuing to operate in the same manner and hoping for different results will not be a winning long-term strategy. The future remains bright for those who embrace the change necessary to survive and prosper. While transitioning wholesalers may require some extra effort and a change to the status quo, isn’t it worth it to make the call sooner rather than later to learn how Associated Wholesale Grocers can provide you a lower cost of goods and a real chance to compete in the marketplace today and in the future?

For a lower cost of goods PLEASE CONTACT: Keith Knight 615-290-6093 Wayne Hall 608-347-7318 Diane Guerrero 262-806-1203

Associated Wholesale Grocers, Inc., 5000 Kansas Avenue, Kansas City, KS 66106

ADVERTISERS

Use this section to learn more about the products and services offered by advertisers appearing in this issue.

PAGE COMPANY PHONE WEB SITE 21 Arctic Glacier Ice 800-562-1990 www. arcticglacierinc.com 30 Associated Wholesale Grocers, Inc. 713-876-6240 www.awginc.com 25 Captain Ken’s Foods, Inc. 651-298-0071 www.captainkens.com 23 Carlson & Stewart Refrigeration, Inc. 800-215-2576 www.carlsonstewart.com 4 Crystal Farms 877-CRYSTAL www.crystalfarms.com 3 H. Brooks and Company 651-635-0126 www.hbrooks.com 27 Hy-Vee, Inc. 515-267-2970 www.hy-vee.com 2 KEMPS 612-723-5596 www.kemps.com 15 Keurig/7up 651-552-3411 www.drpeppersnapplegroup.com 23 KLN Family Brands 218-347-0525 www.klnfamilybrands.com 10 Mason Brothers Company 800-862-8940 www.masonbros.com 11,26 Minnesota Grocers Association 651-228-0973 www.mngrocers.com 22 Minnesota Grocers Association Foundation 651-228-0973 www.mngrocers.com 7 Pepsi Beverages Company 952-895-1300 www.pepsico.com 31 Russ Davis Wholesale 800-332-7104 www.russdaviswholesale.com 11 SCR 800-827-1642 www.scr-mn.com 16 Solid Refrigeration 612-599-1395 www.solidref.com 27 Sparboe Companies 800-BESTEGG www.sparboe.com 17 SpartanNash 616-878-2355 www.spartannash.com 32 UNFI 952-932-4464 www.unfi.com Published by the Minnesota Grocers Council, Inc. Interested advertisers please contact Advertising Sales at 651-228-0973 (metro area) or 1-800-966-8352 (outside Twin Cities). Fax: 651-228-1949 • [email protected] • www.mngrocers.com

30 Minnesota Grocer Spring 2020 OLD MINNESOTA GROCERS ASSOCIATION PRSRT STD 1360 Energy Park Drive, Suite 110 U.S. POSTAGE St. Paul, Minnesota 55108 PAID Change Service Requested Twin Cities, MN Permit No. 594

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