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Online Grocery Sales Page 14 wisconsingrocers.com | Summer Issue 2019 On the fence with Online grocery sales Page 14 Review in GROCERS the CAPITOLDAY Page 8 try G us o d l In f y O r e u c t o r i n G g n i s n o c s i SCW RE WGA’s Grocery Industry Golf Outing Page 23 CHANGE SERVICE REQUESTED SERVICE CHANGE 10 W. Mifflin Street, Suite 205 • Madison, WI 53703 WI Madison, • 205 Suite Street, Mifflin W. 10 Wisconsin Grocers Association Grocers Wisconsin 2 WISCONSIN GROCER www.wisconsingrocers.com 2019 Summer Issue WISCONSIN GROCER 3 4 WISCONSIN GROCER www.wisconsingrocers.com 2019 Summer Issue WGA Board of Directors Chair Jeff Maurer Maurer’s Market, Wisconsin Dells, WI THE PRESIDENT’S PERSPECTIVE 7 MEMBER SERVICE Vice Chair Greg Hansen Hansen’s IGA, Bangor, WI Report Card REPRESENTATIVE 18 Secretary/Treasurer New Board Members Are you leveraging your WGA Membership? Michelle Harrington Albrecht’s Delafield Market, Delafield, WI GOVERNMENT AFFAIRS FRESH SUMMER FRUIT 19 Steve Burkhardt Grocers in the Capitol Day: Approved 8 Guest Column Skogen’s Festival Foods, DePere, WI Grocers Day in Washington 9 Greg Cross THE HISTORY OF GROCERY 20 SpartanNash, St. Cloud, MN Friend of Grocers Awards 10 Bob Fleming Key Friend of Grocers Vote: Fox Run Sentry, Waukesha, WI WGA Position Papers 11 SCORE — GROCERY INDUSTRY Jim Hyland GOLF OUTING REVIEW 23 Roundy’s/Pick ‘n Save, ON THE FENCE WITH ONLINE Milwaukee, WI 5 TIPS ON VIDEO ADS 32 Bob Jaskolski, T.A. Solberg, Inc., GROCERY SALES 14 Minocqua, WI WGA BUSINESS PARTNER’S Steve Loehr Kwik Trip, La Crosse, WI ONLINE SHOPPING FOR Jeff McClure UNFI, Green Bay, WI GROWTH AND PROFITABILITY 17 PROFILES 33 Kevin Metcalfe Metcalfe’s Market, Guest Column Madison, WI MEMBER EVENTS AND Rick Roth HAPPENINGS 36 Great Lakes Coca-Cola, Plover, WI Robert Rothove Associated Wholesale Grocers, Kenosha, WI PROFESSIONAL CARDS 44-45 Dave Ryman Certco, Madison, WI Dave Spiegelhoff Advertisers Gooseberries, Burlington, WI Associated Wholesale H Brooks. 43 Russ Davis Wholesale . 3 UNFI . 12 Matt Swentkofske Grocers, Inc. 2 MillerCoors, Milwaukee, WI Indianapolis Fruit. 19 ShopHero . 15 Valley Cooperative Certco, Inc . 47 Kemps. 21 Shullsburg Creamery . 37 Association . 16 Don Symonds DBS Group. 6 Wisconsin Wins . 32 Lipari Foods, Warren, MI Lipari Foods. 4 Sparboe Companies . 10 Federated Insurance. 48 Zone Mechanical Jeff Tate Tate’s Piggly Wiggly, Professional Supply. 40 SpartanNash . 31 Great Lakes Coca-Cola . 13 North, Inc. 46 Watertown, WI Prairie Farms. 46 T4 Solutions . 16 Dan Williamson Kemps, Cedarburg, WI Deb Yerkes Save the Dates Zone Mechanical North, Franklin, WI WGA Staff President/CEO Brandon Scholz Grocery Specific Executive Vice President Michelle Kussow Food Safety Events Director Cheryl Lytle Certification Classes Operations Director Sarah Decorah Foundation Leadership Member Service Representative Mark Stellpflug Grocers Innovation Expo Food Safety Institute Executive Director, Tuesday & Wednesday, October 1 & 2, 2019 Certification Class July 17, August 14, & September 18 WGA Education and Scholarship Foundation Kalahari Resort | Wisconsin Dells, WI September 4, 2019 Graduation at Dave Kotwitz WGA Grocers Innovation Expo Marketing Coordinator Maddy Harrison Please help us conserve resources. If you are receiving multiple copies or wish to be removed from this mailing list, please EDITORIAL INFORMATION: Publication dates; March, May, August, December. Please submit all press releases and stories to call the WGA office at 888/342-5942. Brandon Scholz, Publisher, at the Wisconsin Grocers Association; toll free 888/342-5942; fax 608/244-9030. Wisconsin Grocer magazine is designed by Lorraine Ortner-Blake, [email protected]. Wisconsin Grocer is published four times a year by: Wisconsin Grocers Association, 10 W. Mifflin Street, Suite 205, Madison, WI 53703 • www.wisconsingrocers.com. ADVERTISING INFORMATION: Please submit all advertising material and questions to Cheryl Lytle, Wisconsin Grocers Association, 10 W. Mifflin Street, Suite 205, Madison, WI 53703, call 608/244-7150; fax 608/244-9030; email [email protected]. Toll free 888/342-5942; fax 608/244-9030. Materials in this publication may not be reprinted in any form without permission of the Wisconsin Grocers Association. The Wisconsin Grocer Magazine is printed at Thysse Printing, Oregon, Wisconsin. 2019 Summer Issue WISCONSIN GROCER 5 6 WISCONSIN GROCER www.wisconsingrocers.com THE PRESIDENT’S PERSPECTIVE Brandon Scholz WGA President and CEO Amazon/Whole Foods deal sit? imagination at Whole Foods is something we’ve Report Card What’s the report card grade on seen repeatedly as the e-commerce giant this deal? experiments with physical stores. It takes time to Almost two years Did putting Amazon Lockers in every Whole change an established store chain and there may ago, August 28th, Food stores make a difference? Did prices be a broader vision for groceries that Amazon 2017, Amazon really drop to the point where Whole Foods hasn’t articulated. In fact it’s surprising just how announced that it saw a significant uptick on its customer little Amazon has said about why it purchased was buying Whole Foods. counts or new customers in the door? Whole Foods, what has changed under the hood, For some, it was simply too hard to comprehend or future plans for its jumble of food offerings.” The Atlantic magazine noted, “The purchase what it would mean. Others were stunned. holds implications for the future of groceries, “Shoppers haven’t been bowled over either. There were those who thought the grocery the entire food industry, and—as hyperbolic as Despite the feelings about Whole Foods prices industry was going to come to an end as we this might sound—the future of shopping for YouGov data shows that US consumers’ know it today. Many others said let’s wait and just about everything. But let’s not get ahead of willingness to consider purchasing at Whole see. ourselves; at the simplest level the deal Foods has settled right around where it was at The Business Insider reported just before the represents a straightforward confluence of the time the deal was announced,” noted the sale that, “The online behemoth’s purchase of interest. Amazon needs food and urban real analysis. the organic grocery will come with many estate and Whole Foods needs help.” It’s likely that the biggest impact the deal had changes for customers.” The report said, Whole Foods was Amazon’s portal into the was that it shook up the grocery industry and “Whole Foods will get cheaper for everyone brick-and-mortar business in the grocery world. forced it to accelerate online shopping and pick- starting Monday.” By buying Whole Foods, the e-commerce gorilla up/delivery plans. The battle with Amazon likely In the deal, Amazon replaced Whole Foods disrupted what was a competitive, but is more focused in cities and urban areas. Amazon current loyalty program with Amazon Prime traditional industry. is finding out that razor-thin margins and the and it’s estimated that half of American Amazon Fresh was Amazon’s expansion into the expense of the ‘last mile’ makes it tough to replicate households have an Amazon Prime its program in every market in the country. membership. And buying Whole Foods and online grocery world. But, as Amazon found putting their private label products on Amazon out, selling groceries online isn’t like selling Whole Foods is still pretty much, well, Whole Prime meant that sales for Whole Foods books, shoes, and underwear. Foods. Amazon doesn’t own the rights to fresh products would see a dramatic increase. Whole Foods was to provide Amazon with a fruits and vegetables. Just because Amazon has its products bunched together with Whole Foods Shortly after the sale, one WGA member told distribution network across the country. But stuff doesn’t make it all that much of a better me he was strongly advised to sell the stores were the 431 upper-income locations enough offering. The customer count isn’t much higher because today’s grocery business model was for Amazon? Probably not, because Amazon and the prices aren’t much lower. going away. With Amazon taking over, the recently announced that it was going to buy industry would be radically changed, the value several regional grocery chains to expand the At the end of the day, 365 Everyday Value of the business would seriously decline and the network. Sandwich Cremes aren’t going beat any flavor of store would go out of business. A Bloomberg Opinion analysis published by Oreos that you crave. So after almost two years, where does the The Washington Post says, “Amazon’s lack of IMHO, I grade this $13 billion deal a C+. The WGA Comes to You! NEW WGA BOARD MEMBERS! Reaching out to members Kevin Metcalfe, Metcalfe’s Market in the northwest portion Kevin J. Metcalfe is Vice President and Owner of Metcalfe’s Market. he of the state, WGA started his career in the family grocery business as a 4th generation grocer in 1989. He was born and raised in Madison and attended President Brandon Scholz Madison College where he earned his degree in finance, Kevin and his wife, Tina, live in recently met with members in Amery. Monona with their three children. He is a member of the Wisconsin Grocers Association, the The luncheon was hosted by Doug Rinehart of Dick’s Fresh Market. Wisconsin Realtors Association and past president of the Monona Exchange Club. Kevin was Joining the luncheon were Alan Alden and Randy Roosa of Dick's Fresh named the Wisconsin Grocers Association Grocer of the Year in 2012 and has been active in Market; Jason Nilssen and Lester Halstead of Nilssen’s Foods; Mark the Monona community as a former city alder, planning commission co-chair and chamber Maloney and Tyler Neu from Russ Davis Wholesale and Greg Hansen of board member.
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