MID-YEAR REVIEW

CALIFORNIA GROCERS ASSOCIATION MID-YEAR 2014 REVIEW

The first half of 2014 was a historic time for the Grocers Association. In May, the California Independent Grocers Association merged into CGA, uniting two associations, each with more than 100 years of serving the California food industry.

GOVERNMENT RELATIONS NEWS

CGA conducted one of its most successful “Grocers Day at the Capitol” advocacy days in recent history. More than 70 retailers and suppliers attended the one-day lobbying event that featured pre-scheduled meetings in the State Capitol between grocery representatives and legislators and staff. Prior to their visits, attendees heard from State Sen. Alex Padilla, author of SB 270, and Scott Lay, founder of The 2014 Grocers Day at the Capitol gave CGA members the opportunity to share AroundtheCapitol.com. Discussion topics focused on single-use plastic bags, information on key industry issues with their nutritional labeling and WIC. elected officials. Following Grocers Day at the Capitol, CGA hosted its annual President’s Reception with more than a dozen legislators attending the event at CGA’s headquarters.

New this year are policy briefs on key industry issues created by CGA staff and posted on the Association’s website, www.cagrocers.com. They include carryout bags, food packaging and recycling facilities.

State lawmakers introduced just over 2,000 bills in the second year of this two-year legislative session. May 30 marked the date that all bills introduced in their house of origin must have been voted on and sent to the second house.

Sen. Alex Padilla discussed SB 270, a bill that would ban single-use carryout plastic bags, with Grocers Day attendees.

Gov. Jerry Brown was the luncheon speaker at the CGA Board’s March meeting. Pictured CALIFORNIA GROCER are CGA Chair Mary Kasper, Gov. Brown and | CGA President Ron Fong. 18 MID-YEAR REVIEW

A delegation of California grocers accompanied CGA to Washington, DC to participate in FMI/NGA’s “A Day In Washington” advocacy event. In addition to meeting with key California congressional members, the delegation also met with USDA Undersecretary Kevin Concannon to discuss the ongoing WIC vendor authorization moratorium. Bob Parriott (center, Twain Harte Market), and Mary Kasper, Fresh & Easy, visited with Senate After considerable discussion with WIC officials Republican Leader Bob Huff during Grocers Day. at the state and federal level, California WIC announced in late May Phase 1 of the WIC vendor authorization moratorium left, providing the criteria for the first group of vendors that would be allowed to apply for authorization. Only vendors with an existing authorized location under “identical vendor ownership structure” are included in phase 1. We continue to work towards a complete lift of the moratorium but progress Grocers Day attendees included (l to r) thus far has been significant. Assembly Member Diane Harkey; Steve Gaines, Save Mart ; and Kendra Doyel, CGA was successful in defeating two California- Grocery Co. specific food labeling proposals. Senate Bill 1000 (Monning, D-Carmel) would have required a warning label on sugar-sweetened beverages including on beverage containers, vending machines, fountain dispensers, or at the point of sale. Senate Bill 1381 (Evans, D-Santa Rosa) would have required that many foods offered for sale contain a label if produced using genetic modification techniques, or for processed foods if they contain one or more ingredients that was

(l to r) Ron Fong, CGA; Kendra Doyel, Ralphs produced through genetic modification. Grocery Co.; Connie Conway, Assembly Republican Leader; Dennis Darling, Foods CGA forced significant amendments to AB 1710 Etc.; Mary Kasper, Fresh & Easy; Jonathan that would have required retailers to reimburse Mayes, Safeway Inc.; and Bob Parriott, Twain Harte Market. financial institutions for the costs of reissuance of credit and debit cards if compromised through retailer payment systems, and would have created a private right of action for consumers to sue retailers

as a result of data breaches. GROCER CALIFORNIA Continued on p. 21

Troy Dinan, Raley’s; Michael Amiri, Nutricion

Fundamental; Sen. Bill Monning; and Bob | Guiterrez, (Stockton). 19 Continued from p. 19 FOUNDATION NEWS

social media. In addition, State Board of Equalization member George Runner, in participation with the Foundation, held a Telephone Town Hall on April 30, to address various tax-related issues.

The Foundation will award 296 scholarships, totaling $408,000, for the 2014/2015 school year.

In the first quarter of 2014, the Foundation awarded $30,161 in tuition reimbursement to grocery industry employees taking job related college courses or This year the Foundation awarded a record courses taken in pursuit of a degree. $408,000, in college scholarships to deserving students of CGA member employees.

The Amen Family (Jim, Jeanne, Joanne, and Renee), Super A Foods, and Kevin Arceneaux, Mondelez International, were inducted into the CGA Educational Foundation Hall of Achievement on March 13, at the Hilton Costa Mesa. Proceeds from the dinner help fund the Foundation’s college scholarship and tuition reimbursement programs. This year’s CGAEF Hall of Achievement inductees included (l to r) Jeanne Amen, The Foundation hosted monthly seminars on a Joanne Amen, Super A Foods; Kevin Arceneaux, number of industry-related topics ranging from the Mondelez International; Jim Amen, Renee Amen, economic recovery to the California drought and Super A Foods.

ASSOCIATION NEWS

CGA President Ron Fong was elected to the 2014 National Grocers Association Board of Directors.

CGA President Ron Fong joined State Senators Alex Padilla, Kevin de Leon and Ricardo Lara at a press conference in Southern California to introduce SB 270, a bill to eliminate single-use

carryout plastic bags and place a charge on paper GROCER CALIFORNIA carryout bags.

CGA President Ron Fong participated in a town hall discussion on California’s drought during the Association of California Water Agencies Spring CGA President Ron Fong participated in a press Conference. He discussed the potential future

conference introducing SB 270, a bill to ban impact of the drought on food pricing. | single-use carryout bags. Continued on p. 22 21 MID-YEAR REVIEW

Continued from p. 21 California Gov. Jerry WHAT’S IN STORE Brown addressed the CGA Board of Mark your calendar and plan to Directors during its attend the following CGA and CGA March meeting, saying Educational Foundation events. it may take four to five For more information, including years for California to online registration, log-on fully recover from the to www.cagrocers.com, and The CGA Conference Committee met in January 2008 recession. This to develop the program for the Strategic www.cgaef.org, or call was Brown’s second Conference in September. (916) 448-3545. speech to the Board since becoming governor. 2014-15 EVENTS Perfect weather greeted nearly 200 grocery retailers and suppliers participating in the 55th Annual Sonoma Golf Tournament in Santa Rosa, 9.9.2014 formerly sponsored by the California Independent Grocers Association. SEC Store Tour Ralphs Grocery Company In June, CGA President Ron Fong participated in a panel discussion on TBA consumer trust during the FMI Connect convention. Fong shared the lessons CGA learned regarding consumer trust from its 2012 campaign to defeat 9.21-9.23.2014 Proposition 37 (GMO labeling). CGA Strategic Conference Palm Springs Convention Center CGA hired four new employees in 2014 including Laura Peralta as director, local Palm Springs, CA government relations, Southern California. Jeff Snadow will serve as executive vice president/COO for CGA’s newest for-profit company, Retail Marketing Services (RMS), and oversee the California Coupon Redemption Center and the 11.4.2014 newly created Independent Operators Committee. Danielle Whitley was named SEC Store Tour manager of RMS. Marisol Martinez was named receptionist. TBA The CGA Supplier Executive Council conducted two exclusive executive-led 1.10-1.17.2015 store tours this spring. SEC Independent Operators Symposium members toured the newly Aulani Resort opened Gelson’s Market in Kapolei, HI Long Beach and two PAQ, Inc. stores in Stockton, Gelson’s Markets was one of two CGA 4.8.2015 including Food 4 Less and Supplier Executive Council store tours Rancho San Miguel Market. conducted in the first half of 2014. Grocers Day at the Capitol Sacramento, CA Three notable food industry executives passed away in the first half of 2014, including Bob Hermanns, director of food industry management programs at the University of Southern California Marshall School of Business; Bill Davila, 9.27-9.29.2015 former president of ; and Bill MacAloney, owner of Jax Markets and a CGA Strategic Conference former CGA Chair. Palm Springs Convention Center

CALIFORNIA GROCER Palm Springs, CA | 22