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Affordable Online Grocery Shopping & Delivery Solutions 100 100 95 95 75 75 25 25 5 5 0 0 100 100 95 95 75 75 25 25 5 5 0 0 OhioGrocer_3rdQtr_2017_Cover-Final Wednesday, August 23, 2017 8:17:07 AM The Online Movement: OFFICERS Grocers RYAN HUFFMAN, Chair Huffman’s Market Upper Arlington, OH Dream or PHILL ADAMS, Vice Chair, Membership Jungle Jim’s International Market Fairfield, OH Nightmare? GARY BAKER, Vice Chair, Operations Baker’s Management, Inc. Newcomerstown, OH ED CALLIHAN, Vice Chair, Government Affairs SpartanNash Lima, OH BRIAN FERRIER, Vice Chair, Annual Events Giant Eagle, Inc. Lewis Center, OH DAN SALTZMAN, Member-at-Large Dave’s Supermarkets The OhioGROCER magazine is owned and published by: Ohio Grocers Association Bedford Heights, OH 1335 Dublin Road, Suite 30A; Columbus, Ohio 43215-1000 RON GRAFF, JR. , Past Chairman Columbiana Foods, Inc. T 614.442.5511 F 614.441.4292 www.ohiogrocers.org Youngstown, OH An award-winning publication of the Ohio Grocers Association KRISTIN MULLINS President & CEO, OGA Columbus, OH DIRECTORS: KEITH BALLINGER TABLE OF CONTENTS: Associated Wholesale Grocers, Inc. ADVERTISERS: LEO BRAIDO Braido Foods American Seaway Foods DON CASTER PRESIDENT’S MESSAGE 3 Raisin Rack Natural Food Market Associated Wholesale GARY CRAWFORD Laurel Grocery Company Grocers ANGELA CROCK STATEHOUSE NEWS 4 Caldwell Food Center CareWorks BILL CROSSET Crosset Company MIKE DAVIDSON WASHINGTON REVIEW 5 Intralot/Ohio Lottery Buehler’s Food Markets LARRY D’ONOFRIO Mr. D’s Delicious Fresh Foods Reiter Dairy MICHAEL GEORGE ONLINE INDUSTRY: 7 Kelly’s Market, Inc. E.J. GEYER Industry Response to the Online Takeover Shelf Scouter Geyer’s Markets, Inc. MATTHEW KISHMAN SpartanNash Kishman’s IGA GARY LICHIUS FEATURE: 8-9 American Seaway Foods Velvet Ice Cream Co., Inc. MIKE LOBALZO Digital Delivery – Navigating the New Consolidated Food Equipment Dist. Experience DOUG LONGENETTE ADVERTISE WITH US! United Dairy TONY MODARELLI Prime spots at industry- Parkman Road Sparkle BETH NEAL MEMBER PROFILE: 10 low rates available! The Janes Group AR Marketing and Shelf Scouter PHILLIP MOODY Shaker’s Marketplace ON THE COVER: MIKE NEEDLER, JR. The Omni-Channel Demand Fresh Encounter, Inc. JIM NOWICKI ASSOCIATION UPDATE: 11 Bob Evans Farms, Inc. PRINTING: JEFF OSBORNE Event Recap and Preview Merchant Distributors Inc. Printing Arts Press, Cols. OH LEE SCHWEBEL Schwebel Baking Co. RICKY ST. JOHN NOTABLE & QUOTABLE 14-15 PUBLISHER: Kristin Mullins IGA, USA [email protected] BILL TAGGART SuperValu FOUNDATION UPDATE: JESSE THELEN 16 EDITORS: Chris Schweitzer, The J.M. Smucker Company Scholarship Winners JOSH URLAGE [email protected] Sutton’s Inc. Veronica Mathias, Asst. Ed. BETH WILKIN The Kroger Co. This publication is produced for members of Ohio’s food industry. [email protected] JAMIE WILSON Flowers Baking Co. of Ohio OHIOGROCER Magazine Third Quarter 2017 1 Learn more at DairyPure.com *No significant difference has been shown between milk delivered from rbST treated cows and non rbST treated cows. PRESIDENT’S MESSAGE Are We Afraid of the Big, Bad Wolf? In short, No! But should ignore him? No service, always unexpired center store goods again; those “big teeth” are real! and even fresher produce, meat and dairy. There’s always been restaurants … don’t get In my 27 years here at OGA, I have watched me started on the restaurants. But we adapt this industry face many challenges. No, let me there as well with Ready-to-Eat foods, cross rephrase that; I have watched this industry not merchandising for total meal ideas, Meal only face up to, but also adapt and conquer Solutions, store cafes and coffee shops! the countless changes and trials when it comes to providing safe food for our communities – Now I’m not saying it’s been a (bakery and make a profit at it! department) cake walk. Much to our disappointment, we’ve seen closures and Kristin Mullins When I was first a young staffer here at OGA, acquisitions; but the truly good grocers I saw both the small independent grocers survived. The ones that remember clean OGA President/CEO and the multi-store chains come together and floors and restrooms and great lighting – still agree – The big box/membership stores were make a difference. The ones that remember the “enemy” of the industry! They were going customer service is still a valued and to kill the traditional grocery store format! appreciated service. The ones who still make But did they? No, what happened was our that special order for Mrs. Jones who comes in industry took on the challenge and focused every week to shop their stores. The ones that Fear Makes the Wolf on what they do best. For some customers, remain a staple of their communities. Bigger Than He Is it’s a lot easier to make a quick run to your - German Proverb local store than to spend the time to walk the Who’s the newest Big Bad Wolf of the warehouse aisles for toilet paper. And not industry? Online of course! From the every customer wants the same thing. company that does it best – Amazon – to the meal kits companies like Blue Apron and Then came the “category-killers.” When Hello Fresh. This is just the next challenge specialized pet food stores opened – the in the grocery industry competition lifespan industry first thought their pet care aisles – there will be more! In today’s fast pace, would be a thing of the past. Dollar Stores time-starved, electronic world – how could we began selling food. Big general merchandise think this wasn’t coming? stores and even pharmacies began selling groceries. How did we respond? With And how do I think this great industry of ours our “dollar aisles,” our own expanded will respond? Well – some of you already Online shopping is the next general merchandise departments, our have – with things like online ordering and “Big, Bad Wolf” to visit the own pharmacies. Doing what we do best – home delivery. I believe we’ll see our industry grocery industry – whether providing what OUR customers want. morph into new ways of shopping – by for groceries or prepared offering these types of conveniences. But, I meals/meal kits The next big elephant in the room was the also think the desire for your shoppers to see, “W” whose name we dare not speak. Bringing smell and touch the food they are feeding consumers anything and nearly everything their families isn’t going anywhere. But is this they needed and desired at the (perceived) challenge different? Maybe. Be sure to check lowest prices in the industry. How did we out Michael Sansolo’s article found on page 7 combat? In some cases – we lowered our to learn more. prices too – but also and more importantly played upon our strengths of customer P.S. Welcoming Our Newest Members… Welcome!Welcome! Gateway Recycling Sayre Foods, LLC Snyder of Berlin/Birds Eye Foods, LLC Shelf Scouter The Frankfort Market OHIOGROCER Magazine Third Quarter 2017 3 STATEHOUSE NEWS Ohio’s Criminal Justice Recodification Committee Approves Final Product – Includes Theft Law Revisions Amidst the chaotic end of first half of the legislative year with the passage of Ohio’s budget, the Criminal Justice Recodification Committee also approved its final recommendations after over two yearsf o meeting and deliberating on changes to Ohio’s criminal justice code. The 548-page plain language version of the adopted report is currently pending in the Ohio Legislature for consideration and formal introduction. Contained within the extensive report is language that could prove problematic to OGA members, dealing with revisions to the felony threshold level under the theft law provisions. In short, the language would raise the threshold from its current $1,000 to $2,500. OGA met with legislative members on the committee over the course of the process to relay our concerns. Given the vast amount of subject matter contained with the legislation, we were advised and thought best to revisit the matter when actual legislation or language is introduced. The SNAP discussion continues With the budget in the rearview mirror, the Legislature will turn its focus to other pressing matters this to be a prominent issue of fall, with criminal justice reform high on the list. We fully expect to see a bill or several bills introduced discussion. As Congress begins sometime later this year as a by-product of the committee’s recommendations. debate on the next Farm Bill, the Ohio Legislature has also Legislature Continues Hearings on SNAP Reform had several pieces of legislation aimed on revising and reforming Most pressing is legislation that would establish a photo ID on an EBT card under SNAP and legislation SNAP on the state level. aimed on revising eligibility requirements for the program itself. Both are aimed at the state’s attempt to reduce fraud within the system, which OGA also shares as a common goal. We’ve been able to work the sponsors, committee chairs, and interested parties to make sure the legislation does impede a recipient’s access to SNAP benefits and also does not place burden on retailers. The photo ID legislation, House Bill 50, drew a considerable amount of testimony and input from the impacted industries including law enforcement, community groups, and OGA. Although some discussion considered to add additional requirements on retailers, we were able to work with the committee to make sure those were not included. House Bill 50 did pass out of committee in early June, and we await further action. The tastiest way to celebrate football season. @VelvetIceCream VelvetIceCream.com WASHINGTON REVIEW Time for Washington to Serve up Solutions for Independent Grocers President Trump’s first year in office is quickly approaching, however much of Washington continues to be consumed with high-profile turnovers within the Administration, leaks, and an ongoing Russia investigation.
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