A MESSAGE FROM YOUR CHAIRMAN As one door closes, another door opens: a saying which proved true in 2009/2010 as we ushered an old decade out and a new one in. A similar transition in leadership transpired with the National Grocers Association (N.G.A.). After 28 years of dedication and leadership to the independent grocery industry, President and CEO Tom Zaucha transitioned the organization to Peter Larkin. Larkin is the former President and CEO of the California Grocers Association (CGA). On behalf of the N.G.A. Board of Directors we say welcome Peter! Time and again, the independent grocers have been challenged by doubters, regulators, mother nature and more. Yet as each challenge is tossed at our industry, we fi ght back. The National Grocers Association steps forward and tells our story – the story of thousands of innovative retailers and their employees across the country who strive every day to serve the communities in which they live. The independent grocers have a voice and the National Grocers Association is here to get that voice and message heard. Together this year, we advanced the cause of independent grocery retailers and wholesalers on many fronts – from regulation to legislation, from operational issues to food safety. One of the things I am most proud of is the way grocers from different states came together to speak with one voice and raise the profi le of today’s independent community-focused retailer. In the following pages, you will learn what your Association accomplished in 2009/2010. I expect even greater success in 2011. If you are not an active N.G.A. member, I encourage you to get involved. Join an executive council; attend the annual convention and other networking events and conferences. Don’t just belong to N.G.A., be a part of your Association. If you are not a member, now is the time to join. Visit N.G.A.’s website, www.nationalgrocers.org and view our membership materials. Find out why you need N.G.A. It is an investment well worth your consideration. Chris Coborn N.G.A. Chairman of the Board President and CEO of Coborn’s Inc. TABLE OF CONTENTS: Letter from the Chairman .............................................................. 1 Who is N.G.A.? ............................................................................ 2 Who Do We Speak For? .................................................................. 2 What Do We Speak For? ................................................................. 2 Convention - Communicating the Value of Our Industry ...................... 6 Educational Conferences and Events ................................................ 9 Government Affairs - Strengthening the Independents Voice ..............11 Communications & Research – Connecting the Industry .................... 16 Industry Affairs - Supporting a Stronger Commitment to Service .........17 Operational Programs and Services - Increasing the Effectiveness .......21 1 ✹ 2010 National Grocers Association Year In Review WHO IS N.G.A.? American consumers have benefited from the most diversified food distribution systems in the world, and independent community-focused retailers and wholesalers have historically been the cornerstone of that diversity; providing variety, selection, competitive prices and value for the American consumer. For 28 years, the National Grocers Association (N.G.A.) has been the voice of independent community-focused retail and wholesale grocers before Congress, the White House, regulatory agencies and the food industry as a whole. N.G.A. is the only industry association devoted exclusively to the needs of the independent sector. MISSION STATEMENT To ensure independent, community-focused retailers and wholesalers the opportunity to succeed and better serve the consumer through its policies, advocacy, programs and services. PHILOSOPHY STATEMENT To promote diversity in the marketplace through a vibrant independent sector, and thereby increase consumer choice in price, variety, quality, service and value. N.G.A.’s VALUES Association Value. Every key segment of the grocery industry deserves and will demand full representation and service. N.G.A. is the only industry association devoted exclusively to the needs of the independent sector. Independent Retailer Value. The existence of independent retailers is a central requirement of a competitive grocery market: independents are the major source of retailer innovation; they focus on their communities, their customers and their associates; they are the first to respond to the constantly changing needs of their diverse marketplaces; they preserve consumers’ options on product selection, prices, product quality, service levels and store formats. Wholesale Distributor Value. To succeed in today’s every-changing business environment, all retailers must achieve the necessary economies of scale to compete with the industry’s mega-companies and other classes of trade. For the majority of independents, parity is achieved through a vibrant wholesale distribution system that buys competitively, distributes efficiently, merchandizes creatively and provides the necessary services to help retailers succeed. 2010 National Grocers Association Year In Review ✹ 2 WHO DO WE SPEAK FOR? N.G.A. STAFF N.G.A. Executive Staff N.G.A. is the national trade association representing the retail and wholesale grocers that comprise the independent Peter J. Larkin sector of the food distribution industry. Along with President and CEO affiliated associations, manufacturers, service suppliers Frank DiPasquale as well as other entrepreneurial companies that support Executive Vice President and N.G.A.’s Philosophy and Mission. Executive Director of GREF The meaning of “independent retailer” is more a question of ownership and philosophy of operation, rather than Tom Wenning number of stores or type of format. An independent retailer Executive Vice President and General Counsel is a privately owned or controlled food retail company operating a variety of formats. A few members are publicly N.G.A. Staff traded, but with controlling shares held by the family, and others are employee owned. Independents are the Anne C. Allnutt true “entrepreneurs” of the grocery/food industry and are Graphics Production Manager dedicated to their customers, associates, and communities. Jennifer Brant Manager, Registration and Meeting Services Kristen Comley Executive Assistant to the President and CEO Janice Coon WHAT DO WE SPEAK FOR? Membership & Database Manager N.G.A.’s Working Agenda – 10 Keys Michelle Cooper Administrative Assistant 1. Effectively compete against supercenters and Christine Cunnick other power buyers. Director of Communications 2. Repeal the estate tax. Irene Dele 3. Create a level playing field. Sales Coordinator 4. Reinvent the supermarket as a lifestyle Debbie Etter destination center. Membership Coordinator 5. Win back center store sales. Greg Ferrara 6. Recruit the next generation of quality managers Director of Government Affairs and entrepreneurs. 7. Retailers/Wholesalers must operate more as a Jessica Harper virtual chain. Manager, Industry & Associate Member Relations 8. Take full advantage of all available technology. 9. Create new synergies that achieve more Su Li competitive economies of scale. Accounts Receivables 10. Access to competitive growth capital. Perry Maison Controller Irene Pound Receptionist Kim Robinson Administrative Assistant Karen Voorhies Director, Concept Show Floor Mary Wallace Director of Education & Meeting Services 3 ✹ 2010 National Grocers Association Year In Review NATIONAL GROCERS ASSOCIATION 2010 BOARD OF DIRECTORS N.G.A. EXECUTIVE COMMITTEE OFFICERS Chairman Immediate Vice Secretary/ President of the Board Past Chairwoman Chairman Treasurer and CEO CHRISTOPHER COBORN CAROLE BITTER JOSEPH SHERIDAN RICHARD NIEMANN, JR. PETER J. LARKIN Coborn’s, Inc. Friedman’s Wakefern Food Corporation Niemann Foods, Inc. National Grocers St. Cloud, MN Freshmarkets Keasbey, NJ Quincy, IL Association Butler, PA Arlington, VA EXECUTIVE COMMITTEE MEMBERS NEAL BERUBE ROGER COLLINS NICHOLAS D’AGOSTINO, III KEVIN DORIS Associated Food Stores, Inc. Harp’s Food Stores, Inc. D’Agostino Supermarkets, Inc. Gerland’s Food Fair Salt Lake City, UT Springdale, AR Larchmont, NY Houston, TX BOARD MEMBERS MARTIN ARTER LARRY COLLINS DAVE JONES JAMES NILSSON, JR. EDWARD ROCHE Affiliated Foods Midwest Collins Family Markets Kellogg USA, Inc. Geissler’s Supermarkets, Inc. Roche Brothers Norfolk, NE Philadelphia, PA Battle Creek, MI East Windsor, CT Supermarkets Wellesley, MA MICHAEL BOURGOINE JAMES DENGES KATHY KUZAVA GERARD NORKUS Associated Grocers of CEO, President Georgia Food Industry Norkus Enterprises, Inc. JAMES ROGERS New England Central Grocers, Inc. Association Pt. Pleasant Beach, NJ Food Ind. Alliance of Manchester, NH Joliet, IL Smyrna, GA New York State JACK PORTER Albany, NY MICHAEL BOZZUTO JERRY GARLAND GEORGE LANKFORD Kehe Distributors, Inc. Bozzuto’s, Inc. Associated Wholesale Affiliated Foods, Inc. Romeoville, IL VAN SAPP Chestire, CT Grocers Amarillo, TX PepsiCo, Inc. MICHAEL PROVENZANO, SR. Kansas City, KS Purchase, NY CHRISTOPHER BROWN JAY LAWRENCE Pro Ranch Markets Nash Finch Company JANEL HAUGARTH Lawrence Brothers Ontario, CA TRYGVE SOLBERG Minneapolis, MN SUPERVALU, Inc. Sweetwater, TX T.A. Solberg Company, Inc. Minneapolis, MN BARRY QUEEN Minocqua, WI JAMES BROWN ROBERT LING, JR. Queen’s Stores/Price Doc’s Food Stores, Inc. ERIC HENCH Unified Grocers Chopper DEAN SONNENBERG Bixby, OK Chief Supermarket, Inc. Commerce, CA Paola, KS URM Stores,