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The National Grocers Association

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The National Grocers Association March 2, 2018 Dear Member of Congress: The National Grocers Association (NGA) is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry, accounting for over $131 billion in annual sales and nearly 1 million American jobs. Independent grocers are a proud partner with the federal government in ensuring low-income Americans have access to a variety of affordable foods through the Supplemental Nutrition Assistance Program (SNAP). The undersigned organizations, comprised of independent retailers and wholesalers from all 50 States, strongly oppose replacing household SNAP benefits with a government-run direct food distribution service. As you know, the Administration’s fiscal year 2019 budget proposes to restructure the SNAP program by replacing about 40 percent of household SNAP benefits with a government-run “Harvest Box” distribution service. Instead of letting households use their SNAP benefits at their local grocery store, SNAP funding would be used to send eligible households a box of non- perishable food items. We believe that putting the government in charge of nutrition benefit distribution fails to appreciate the free-market, competitive efficiencies achieved through the successful public-private SNAP partnership. History demonstrates that when the government doles out food, not only is it inefficient and more expensive to the taxpayer, but low-income populations also end up hungry and malnourished. In the 1960s, Congress passed the Food Stamp Act to help both the Nation’s poor and struggling farmers. During and after the Great Depression, farmers were producing more food than the nation could consume or export, while many impoverished Americans had little access to government-run surplus food programs. Once Food Stamps were introduced nationwide, food insecurity quickly diminished and new market opportunities became available to agriculture producers. Grocery stores began locating in areas of the country that lacked access to food retail stores, and overall quality of life improved for low-income Americans. If the distribution of nutritional benefits reverted to the responsibility of the federal government, this would be a major step backwards. Nutritional food access challenges would grow worse throughout the country, as supermarkets would struggle to survive in underserved communities. Not only would this exacerbate the food desert problem, but it would also negatively impact ancillary economic activity in many communities where the local economy is heavily reliant on the success of Main Street supermarkets. Fierce competition among food retailers, which operate on less than 2 percent net profit margins, drives consumer prices down and ultimately benefits those on a tight budget. Without competitive forces involved in the market for food, there is little doubt that such a proposal would increase food insecurity. 1 Government-run food distribution is also logistically impossible. While the government currently operates surplus commodity food programs, it lacks the operational capacity or infrastructure to meet the nutritional needs of all low-income citizens. If the States were tasked with distributing nutrition benefits, few would have the resources available to reach every beneficiary. Congregate feeding sites would need to be utilized, meaning many SNAP recipients would have to travel long distances to receive nutrition benefits. This would disadvantage participants with limitations, such as working families with children, the elderly, and the disabled. Finally, by pre- selecting the items in each box, the government would also have to determine how to adequately provide nutrition benefits to those with health challenges or diet restrictions. Instead of pursuing radical changes to the SNAP program, we recommend that Congress build on its successes and work with food retailers to address our current challenges. Food access programs like the Food Insecurity Nutrition Incentive program and the Healthy Food Financing Initiative have increased purchases of nutritious and healthful foods and helped supermarkets expand to underserved areas that lack access to quality food products. We also ask for your support for innovative e-commerce delivery solutions, such as the SNAP Online Purchasing Pilot, which will allow SNAP beneficiaries to participate in the emerging online food retail marketplace. We appreciate Congress’s decades-long recognition that supermarkets remain an indispensable private sector partner in the successful public-private partnership of the SNAP program. The undersigned organizations stand ready to assist Congress to find additional solutions that address food insecurity in America. We respectfully request that you oppose any proposal that abandons free-market, competitive principles in favor of a less effective and less efficient government-run solution. Thank you for your consideration of our request. Sincerely, cc: The Honorable Sonny Perdue The Honorable Mick Mulvaney Acosta Sales &Marketing Amagansett IGA Super Saver Adams Foods IGA Ammons Supermarkets Adam's IGA Andy's IGA Foodliner Akins Fresh Market Anna Market Everyday IGA Alabama Holley Farm IGA Appleseed IGA Alex Food Inc Archie's IGA Plus Allegiance Retail Services Arjo Food Corp. Allendale IGA Armata's IGA Allen's IGA Arnold's Market, Inc. Alward's Market Express Art Deco Supermarket 2 Arthur IGA Boiceville Market IGA Ashville IGA Boonville Sav U Mor IGA Associated Food Stores Borowiak's IGA Associated Fresh Market Botancillo Produce Associated Wholesale Grocers Boulineau's Foods Plus IGA Athens IGA Bowling Green IGA Augusta IGA Bowman IGA Aurora IGA Fresh Market Bozzuto's Inc. B. Green & Co., Inc. Brackett's Market, Inc. Bailey's General Store IGA Bright Market IGA Bailey's IGA Brigido's Fresh Market Baitoa Meat & Produce Broadus IGA Baker's IGA Brookdale/Newark ShopRite Balls Food Stores Brookshire Grocery Company Baltimore IGA Express Brookville IGA Barbourville IGA Bruce's Foodland Stores Bargain Barn Inc Bryn Mar IGA Barnwell IGA Bryson City IGA Bassett's Market Bubba's Corner IGA Express Beartooth IGA Buche Foods Bell IGA Buddies Groceries IGA Bellport Super Saver IGA Buddy's IGA Bell's IGA Buehlers IGA Darmstadt Bell's Market Buffalo Shoals IGA Bellwood Hometown Market IGA Buntings Cedar IGA Benedettos Market / Hubbens Market Burkesville IGA Benton IGA Burkholder's Country Market IGA Berridge IGA C&S Wholesale Best Buy Market Cairo IGA Better Val-U Supermarket IGA Cal Mart IGA Betty's Country Store Calhoun IGA Big Al's Market Express Calhoun WFO IGA Big Sandy Supermarket California Fresh Market Big T IGA Camano Plaza Market IGA Bill's IGA Camden IGA Bimbo Bakeries USA Capri IGA Foodliner Bishops Market IGA Carlie C's Blackford Foods Carl's Food Center IGA Blanton's Market IGA Carl's IGA Bloomfield IGA Carlyle IGA Blue Marlin IGA Carnation Market IGA Blue Ridge Grocery Carniceria La Hacienda Blythewood IGA Foodliner Carroll's IGA Bob and Jeff's IGA Supermarket Carter's Supermarket Bobs' IGA Casel's Marketplace IGA Bob's IGA Store Casey's IGA 3 Cashsaver IGA Crosby's Markets Casler Inc Crossroads IGA Cedar Lodge IGA Cubby's Marketplace Cedar Village IGA D & R Market IGA Central Supermarket D&D Groceries IGA Express Certco Inc. Dales Food Store Certco Inc. Distributor to Danar Meat Corp Independent Supermarkets Darlington IGA Chaumont IGA Express Darrington IGA Chelan Market Dave's Marketplace IGA Chelten Market IGA Davis Food & Drug Cheraw IGA Davis Food & Drug Stores Cherry Valley Market Place Davis IGA City Fresh Market Davis IGA Super Center City Market IGA Dekalb Supermarket IGA Clark's Quality Foods Del Sol Clay City IGA Delhi Liberty Market Clay Foods IGA DelSol Clayton Ranch Market DGM'S Devine St. Foods, LLC Clermont IGA Diamond Food Market IGA Clinton Foods IGA Dierbergs Markets, Inc. Clinton IGA Dillonvale IGA Coborn's, Inc. Dill's Food City IGA Colerain IGA Foodliner Dillsboro IGA Collins Family Markets, Inc DiOrio's Supermarket IGA Columbia IGA Dissmore's IGA Columbiana Foods Inc. Dixie Dandy Fresh Market IGA Columbus IGA Plus Doc's Food Stores Inc Compare foods Dolores Food Market Compare Foods-Clayton Domats Family Foods Connersville IGA Dorignac's Food Center, LLC Conway IGA Doscher's IGA Cook's Oakland Park IGA Drennon's IGA Express Copper Valley IGA Drust Markets ShopRite Corley's Grocery Dublin IGA Market Cornells IGA Foodliner E.C. Porter IGA Cornerstone IGA East Center IGA Market Country Foods IGA East Hampton IGA Country Pride Market IGA Economizer IGA Cowen IGA, LLC Ed Randall Town and Country Cowhey Family ShopRite Discount Foods Cox's Foodarama Inc. Eddies Market Craigsville IGA Edgar IGA Food Center Cranbury Market IGA Edmonton Foods IGA Cranford's Fresh World Ed's IGA Creata, Inc. Ed's IGA Supermarket 4 Edwards IGA Food Giant Egolf's IGA Food Parade Eikenberry's IGA Foodliner Food Ranch IGA El Paso IGA Food Town IGA El Rancho Market IGA Food Towne of North Chili Elgin IGA Food World IGA Elkton One Stop IGA Express FoodFinder Ellwood City Save a Lot Foodland IGA Elmer IGA, Inc. Foodland Mercado Elrods Cost Plus Foods Etc. IGA Elsberry IGA Supermarket Foothills IGA Market Emlenton IGA Forest Park WFO IGA Enon IGA Fork Union Community Market Eureka IGA Foodliner Forster and Howell, Inc. Eutawville IGA Fort Salonga IGA Everett IGA Foodliner Forward Country Corners IGA Evergreen IGA Express Evergreen Market Fourth Avenue Supermarket Everyday IGA Fowler IGA Foodliner Everything Marketing Frank's Supermarkets E-Z Stop IGA Express Fransula Foods LLC Fairmount IGA Frederick IGA Fairway Market IGA Freeman Foods Family Center IGA Frenchburg IGA Fare & Square Frenchtown Market IGA Farmers IGA Foodliner Fresh City Market Fausto's Food Palace Fresh Encounter, Inc. Fayers Market Fresh Foods IGA Felicity IGA Fresh Nation Ferri Supermarket Frobose IGA Market Fiesta Foods Fruchey Family Market IGA Fine Fare Fuller's Market IGA Fircrest Market IGA Fultz's IGA Fischer's IGA Everyday Future Foods IGA Fishers Island IGA Supermarket G & R IGA Fitchs IGA G.E. Foodland, Inc. Fitzgerald's Foods IGA Gabriel's Scotia Foods IGA Five Star Supermarkets of New Gale's IGA London Inc Gallo Inc.
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