Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
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COVER In today’s marketplace, sustainability Sales and Advertising conversations are front and Karly Ackerman, Minnesota Grocers center. As an industry, we have Association the opportunity to be a leader by Editors meeting our customer expectations Jim Bohen, Bohen Communications Jamie Pfuhl, Minnesota Grocers Association while exploring innovative solutions. Design Contents Ideal Printers Inc. MGA Board of Directors Chair Kris Kowalski Christiansen, Kowalski’s Companies, Inc. Past Chair F EATURES Mark Collier, Superfair Foods Vice Chairs Brian Audette, UNFI 8 Reduce, Re-use, Retail… Chris Coborn, Coborn’s, Inc. Greg Kurr, KEMPS Retail food industry consultant Michael Sansolo examines food Patrick Miner, Miner’s, Inc. chain strategies to support the challenges facing retailers. As Chris Quisberg, S&R Quisberg, Inc. Paul Radermacher, Radermacher Holdings, Inc. consumer awareness and demands grow, Sansolo discusses the Craig Thorvig, Chris’ Food Center need to be more focused on proactive sustainability solutions. Doug Winsor, Jerry’s Enterprises, Inc. Directors 9 Industry Peers Embrace Sustainability Efforts Jim Almsted, Almsted Enterprises Darren Caudill, Cub Foods As “Grocers Get Green,” see what your peers are doing world- Greg Cross, SpartanNash wide with their sustainability initiatives. Get a sneak peak at Bob Durand, Associated Wholesale Grocers Mary Fuhrman, Hy-Vee Food Stores innovative initiatives showcasing how customers can work with Curtis Funk, Lund Food Holdings, Inc. retailers to create change. Michael Hajlo, Pepsi Beverages Company Greg Hasper, Crystal Farms (MGA Council Chair) 12 Waste Not, Want Not Jaime Mackenthun, Mackenthun’s Fine Foods Minimizing food waste is essential for a profitable foodservice Kristi Magnuson Nelson, Hugo’s/Valley Markets, Inc. program. Jerry Soverinsky takes a deep dive into the process, Paul Martin, Willie’s Super Valu training, and goals that are needed to succeed. Tom Reinhart, Kwik Trip, Inc. Andrea Teal, Teal’s Management Lauri Youngquist, Knowlan’s Super Markets, Inc. 14 Spotlight on Industry Trends: Beverages MGA Staff The beverage category is key to our industry. These pages Jamie Pfuhl – President highlight trends and innovations. Karly Ackerman – Membership/ Communications Manager Katie Frederick – Accounting/Office 18 Online Grocery Shopping: Seven Key Research Findings Administrator Each year the Retail Feedback Group conducts an extensive study Mike Karbo – Vice President Government Affairs of online grocery shoppers in the United States. Brian Numainville Minnesota Grocer covers the Minnesota food showcases key takeaways from the report. This national study industry: supermarkets, superstores, convenience delves into a wide range of topics, providing important insight stores, specialty grocers, wholesalers, sales agents and manufacturers. Minnesota Grocer, published into shoppers, as well as assessing use-share and satisfaction quarterly, is the official publication of the Minnesota among major service providers. Grocers Association. Subscription price is included with membership. Reprints available. 24 What Can-A-Business Do? In an effort to reduce our carbon footprint and to support Minnesota Business, MGA prints this magazine on Flo Legal marijuana is roiling company drug policies. As legal coated papers. Flo is made and manufactured in Cloquet, marijuana continues to grow, Stephenie Overman reviews policy Minnesota. It is FSC certified (meaning more trees are planted by the paper industry in these forests than are cut best practices with clear expectations. down to be used for making paper) and is made up of at least 10% recycled fiber. Minnesota Grocers Association DEPAR T MENTS 1360 Energy Park Drive, #110 St. Paul, MN 55108 651-228-0973 (metro area) 6 From the President 30 Advertisers 1-800-966-8352 (outstate) 651-228-1949 (fax) 28 People, Stores & Companies www.mngrocers.com Minnesota Grocer Spring 2020 5
From the President JA M I E PF UH L “Sustainability is most often defined as meeting the needs of the present without compromising the ability of future generations to meet theirs. It has three main pillars: economic, environmental, and social. These three pillars are informally referred to as people, planet and profits.“ H appy New Decade! I am But, today, sustainability customer-first strategies. This not sure what happened means much more than just ultimately requires a commitment to the last 10 years. People the “hot items” list or being from your entire community – always say time goes environmentally responsible; farm to fork. faster the older you get – I am not it’s bigger than that. It’s about Sustainability is also front and admitting to getting older – but people, organizations and center for the MGA. There are time sure is going faster. responsibility. And, how we many disruptors in our day- Sustainability is front and approach these conversations to-day work and we have the center in all conversations these means much more than banning, added realities of a changing days. There are daily articles feeing or putting things in a blue legislative dynamic in Minnesota. about the bag – plastic, paper, bin. It’s about how we see our We, too, are mindful of what is reusable or none. Food waste role in the discussion and our going on around us, and cannot conversations are world-wide. ability to visualize solutions. waiver from our commitment And, I don’t have enough space When looking at industry to ensuring the MGA is a in this article to get into the trends for 2020, brick and sustainable organization. It straw debate. mortar sustainability is front is important to carry forward This issue of the Minnesota and center. The challenges the work of our predecessors – Grocer is exciting because we facing industry – mergers, labor 123 years is certainly a legacy are highlighting “grocers get shortages, regulatory creep, worth advancing. green.” As an industry, it seems dramatic landscape shifts and In the coming months we that we touch just about every more – are a bit overwhelming. will ask you to get a little more facet of the “green” chain. We Yet companies that are taking involved. You will see periodic make it, package it, sell it, provide a holistic approach, listening surveys asking for your thoughts, it as a service, or throw it out. to their customers, and staying opportunities to attend events, The interesting fact is that we true to their core competencies, and ways to share your ideas. have been innovators for years. are building a foundation for Please take a moment to let For decades, we have been their future. This is a task that us know what’s important to committed to zero waste, lighter cannot be taken lightly and you – this will provide guidance and more efficient packaging, requires a steadfast vision. to support our customer-first and the promotion of consumer We must be respectful of the strategy. Our sustainability, education. This issue (pages realities facing industry, but we too, depends on our entire 9-10) highlights a continuation cannot let disruptors shift our community. Personally, I am of the conversation, and industry focus. Companies can win by excited to see what we collectively peers who are taking “green” maintaining their core values – accomplish in the next decade. opportunities to the next level. quality, price, convenience, and 6 Minnesota Grocer Spring 2020
REDUCE, items such as plastic bags and straws. Already products such as reusable drinking straws and RE-USE portable flatware are popping up in countless retail locations, from REI sporting goods to convenience stores. And according to reports I’ve RETAIL… received, the items are selling. For the industry, there are clearly steps that need be taken fairly quickly. Inside companies, it appears that new efforts will be necessary to examine and eliminate areas of waste in the supply chain and in Written exclusively for the MGA consumer product packaging. by Michael Sansolo Clearly, some of those issues T will require collaborative activity here’s no shortage of challenging reality with no simple between trading partners to challenges facing retailers solution that will satisfy growing determine how to address this in 2020. Competition is consumer awareness and demands. issue without creating brand new as hot as ever, especially The reality is that stores feature problems with product damage with the continued growth single-use plastics in nearly every or sanitation and food safety. In of electronic commerce and aisle and there are few locations many respects, efforts to address deep discounters. Consumer where shoppers are more aware this emerging issue may require desires and shopping habits are of this new and growing issue. cross-industry cooperation along changing quickly. There are countless other areas the lines of the efficient consumer And, to be honest, that’s just where single-use plastic is as big response moves from the mid- scratching the surface. It doesn’t (or bigger) a problem than in 1990s, which the industry undertook consider issues like the stunning supermarkets, but few of those to reduce inefficiency and decline in U.S. birthrates and industries are visited as often by uncompetitive practices. the challenges that portends for individual consumers. In addition, the effort is likely to the future. To add to the complexity, many require strong consumer education But add to the list the need to retailers say it is simply a matter of programs to help shoppers be more focused than ever on time until these concerns lead to understand the benefits and reasons sustainability, especially finding new forms of legislation that limit for changes in the packages they are ways to reduce or eliminate single- how single-use plastics are featured, used to selecting. Such education use plastics. There is nothing in that while regulations on supermarket is likely to extend to more detailed challenge that promises to be easy, products might well be the simplest information on packaging and but consider two important thoughts. way elected officials can act on this to websites that explain product First, a convenience chain retailer extremely complex issue. sourcing, carbon footprints and recently commented to me that the Sadly, the complexity doesn’t end numerous other very word convenience is almost a there. Retailers have no way complex issues synonym for plastic. So many of the of knowing with impacted by this items sold as convenience goods to certainty whether push for a greener shoppers in c-stores, supermarkets, the same shoppers shopping trip. drug stores or anywhere rely on the who are clamoring The bottom line is simplicity and convenience of single- for this change would that, as with all new use plastics. be wiling to pay more challenges in retail, this But, on the opposite side of things, for environmentally will not be addressed another retailer told me he is already friendlier packaging. simply and painlessly. receiving letters from school children Yet, in conversations But just as the industry has urging him to no longer offer single- with many retailers, I successfully (relatively) coped use plastic straws in his stores to hear a clear recognition that, these with new forms of consumer protect sea turtles and other marine uncertainties aside, the issue is not desires and competition, it will creatures. As the retailer said, once going away and will require action. have to stride to work on this new third-graders are involved, their Already we are seeing news challenge with creativity, energy parents will act sooner not later. reports of municipalities enacting and determination. So, the industry is facing a very laws limiting the use of specific 8 Minnesota Grocer Spring 2020
Industry Peers Embrace Sustainability Efforts As “Grocers Get Green,” see what your peers are doing world-wide with their sustainability initiatives. We have the opportunity to be a leader by meeting our customer expectations while exploring innovative solutions. By 2025, 100% of ALDI packaging, including plastic packaging, will be reusable, recyclable or compostable. ALDI will also reduce packaging ‘Food in the nude’ is a New material across its entire range by at least 15%. The company is also Zealand campaign to end plastic committed to working with its supplier community to achieve the following packaging for fresh produce in comprehensive goals: supermarkets. Foodstuffs have •B y 2020, 100% of ALDI-exclusive consumable packaging to include signed the New Zealand Plastic How2Recycle label; Packaging Declaration, which is •B y 2020, implement an initiative to make private-label product packaging committed to making all store easier for customers to reuse; and private label packaging •G uide continuous improvement of product packaging by internal expertise 100% reusable, recyclable or and external evaluations. compostable by 2025. It has also introduced recyclable food trays – a measure that gives customers Albertsons Companies’ the opportunity to divert more The Kroger Co. plans to pilot pharmacies are swapping white than 80 million trays from landfills a reusable packaging system for brown as they transition from every year. for leading consumer brands traditional white prescription bags to in an exclusive grocery retail a new recycled brown bag at 1,700+ partnership with Loop US LLC, a locations across the United States. circular online shopping platform The switch to the more sustainable H-E-B has stepped up sourcing developed by waste management bag is expected to save more than standards and transparency for firm TerraCycle. Products available 5,000 trees annually. Made with fresh, frozen, prepared and shelf- via the Loop platform come 100% recycled content, the new stable seafood. The San Antonio- packaged in reusable glass or bags include 60% post‑consumer based grocer said its updated policy metal containers and are shipped recycled content, making Albertsons augments efforts to source certified directly to consumers in a specially Companies the first major pharmacy wild-caught and farmed seafood; designed tote bag. After use, the chain to offer this type of bag. The expand traceability systems for all products are collected free from fiber in the new bags is certified to seafood products; prevent human consumers’ homes and then meet the Forest Stewardship Council rights abuses and support workers’ cleaned, refilled and reused. (FSC) standards for recycled content rights in seafood supply chains; and and is Rainforest Alliance Certified. foster environmental and ethical integrity in its canned tuna supply. Working in partnership with Retail Business Services, which develops private brand products for each of the Ahold Delhaize USA local brands, Food Lion will restrict certain chemicals from products and packaging, In an effort to reduce waste work with suppliers to ensure products meet high standards for ingredients and improve recycling, Woodward beyond what’s required by law today, and collaborate with suppliers to Corner Market will not use address root causes of contaminants. single-use plastic or paper bags at checkout. Instead, the all-new store is encouraging customers to bring their own reusable bags or Rochester, NY-based Wegmans Food purchase two different types of Markets plans to pull single-use plastic reusable—and 100% recyclable— bags from all of its 47 New York stores early plastic bags, starting at 10 cents in 2020. At stores where the county or each. The new neighborhood municipality hasn’t already implemented grocery store operated by Meijer a 5-cent fee for paper bags, Wegmans will is among the first in the Midwest charge 5 cents per paper bag. The amount to only offer sustainable bag collected from the paper bag charge will alternatives made to be used up be donated to the local food bank serving to 125 times before needing to each region. be replaced. continued on next page Minnesota Grocer Spring 2020 9
Industry Peers Embrace Sustainability Efforts continued from previous page Sobeys Inc., the second largest food retailer in Canada, announced that it aims to remove Thailand began the plastic grocery bags at all of its New Year with a ban on Sobeys-banner locations across single-use plastic bags at Canada by the end of January some major stores. This 2020, making it the country’s first means the customers national supermarket chain to will no longer be given eliminate use of the bags. With plastic bags to carry things the move, 225 million plastic bags they buy from those will be taken out of circulation, the stores. Many have found company reported. innovative ways to carry groceries. In Canada, Metro Inc. has launched a new initiative to rein in food waste. The Montreal-based food and drug retailer announced Pittsburgh, PA-based Giant Eagle aims to eliminate single-use plastics 20 Metro stores now offer a 30% companywide, including in all stores and operations, by 2025 under a new discount on products nearing their sustainability platform. Plans call for Giant Eagle to begin the program this expiration date. Metro noted that spring by phasing out single-use plastic bags at 25 stores in three markets. the effort reduces food waste and This will pave the way for a broader effort to transition from single-use losses as well as the grocery bills plastics, including bags, straws, single-serve fresh food containers and bottled for customers who buy these near- beverages, among other items. expiring but still good products. 10 Minnesota Grocer Spring 2020
PARTNER OF HVAC FOOD SERVICE Are You Doing Business in Hennepin County? Food waste recycling mandate begins January 1, 2020. More information is available at hennepin.us/businessorganics. What do I need to do to be in compliance? 1. Have food waste recycling service in place. 2. Provide food waste collection containers back-of-house (such as in kitchens and dishwashing areas) and properly label them. 3. Separate food waste from trash and recycling in back-of-house operations. Food waste recycling is not required in front-of-house areas, but may be required by city ordinance depending on your to-go containers/packaging (currently required in Minneapolis and St. Louis Park). 4. Provide education and train employees annually. Where can I get help? The MGA has been awarded a grant to assist our members with implementation - we can help! Contact Karly Ackerman at kackerman@mngrocers.com or 651-228-0973 for more information to support compliance in your store.
T he grocery/convenience store industry is well on its way to transitioning from the Cokes, smokes and gas mentality. Foodservice is the rising star among top category performers, delivering generous margins that can overcome waning demand for gasoline and tobacco, Minimizing food waste is essential for along with rising labor costs and credit card swipe fees. But it’s not By Jerry Soverinsky you can build in appropriate padding. a foolproof golden ticket, as even You may start with 100 items, but if it the most established foodservice gets knocked down to 80, understand operators will attest. that pattern.” Concerns abound: labor, sanitation, Next, walk through the typical marketing, traffic control, public product.“We give a new product wear and tear that a fresh item three or four months [to succeed], relations, menu development, to endures.“If you want to hold name a few. Even if you’ve managed looking at all aspects to see something hot, don’t assume that what works and to successfully execute all of these you’ll just put it in a case and check elements and their related concerns, what sells [as it once an hour. You need to open well as how in the process, thrilling a thriving and close the door, mimicking what throng of customers who crave quickly] … would happen when customers see it understanding your burgers and Instagram your in the store,” Derian said. milkshakes and frequent your coffee that change Each store is unique, with can occur daily bar … there’s waste. Lots of it. And it demographics and shopping can quickly spoil the most promising or by the hour. We patterns that impact foodservice look at weather and foodservice program. sales differently. Account for Here’s a sobering statistic: 40% traffic, too.” these variances in the planning of our nation’s food supply goes stage, examining product every WASTE GOALS uneaten each year. It’s the single 30 minutes to assess quality.“You Good greatest source of solid waste in need to understand the velocity merch the U.S., according to the National and customer demographic of each andising Resources Defense Council. (More store,” Derian said,“so that when is directly sobering: 1 in 6 Americans lack you push product out of the stores, tied to adequate access to food.) That’s you’ve already identified peak, low proper roughly $165 billion of uneaten and and shoulder periods.” Consider waste unsold food each year, enough to build and cook times of individual management, throw anyone’s foodservice balance products, which will help you explained Wynne sheet into the red. coordinate timing.“You don’t want Barrett, vice president of So, while a robust foodservice product coming out of the oven business development for program can provide generous at the beginning of shoulder time, Jera Concepts. But it’s not a sales opportunities for grocery/ for instance.” matter of eliminating convenience stores, managing food Don’t be afraid to waste product waste. Barrett said inventory—and hence waste—is during this testing phase.“Spoilage “targeted waste” critical for a healthy bottom line. is a cost of doing business,” said should be the goal, a A DELIBERATE PROCESS Ryan Krebs, director of foodservice customized value that The successful foodservice program for Rutter’s, the York, Pennsylvania- each company needs is not accidental; rather, it requires based c-store chain.“As far as I’m to evaluate. a systematic process, implemented concerned, there’s no such thing as “In strict terms, the by capable, well-informed staff.“It zero spoilage. If you try to get down industry looks at short- starts with design and R&D,” said to a minute amount, you probably shelf-life product waste Bob Derian, a partner of the Business don’t have offerings out in front of somewhere between Accelerator Team,“designing which your customers.” 10% to 20% (depend- products will go into the store. Will it The testing process should include ing on volume), and be those with a longer shelf life? Or tweaking product production, long-shelf-life products will they be products that are held for finding a sweet spot of supply and should have almost two hours?”Those are questions that demand.“If you sell two sausage no waste if the days must be considered and settled in biscuits, go make two more,” said between delivery al- advance, along with a shelf-life study. Lisa Lem, category manager, food low and proper stock “Understand what the products will service and dispensed beverage, rotation occurs,” he be doing, which ones will get ‘abused’ for Nashville-based Tri Star Energy, said, adding that more at your store, when in transit, or who recommends patience during when put on the shelves. That way, the testing phase, especially for new 12 Minnesota Grocer Spring 2020
forecast goals, that’s ideal.“If you wanted only two hours [on the shelf] but packaging allows for three, that’s much better,” he said. TRAINING FOR SUCCESS No matter the size of your foodservice operation, it’s important to train all employees who interact a profitable foodservice program. with the program.“If the store typically goes through one case of burgers a week, yet a new manager pulls five, that spoils four,” Krebs said. While many operators define waste “So, understanding your volumes by targets in percentages, Barrett said daypart and training your teams is it’s important to assess other key important to reduce waste.” management principles, including To aid in the implementation of frequent subcategory merchandising goals, any foodservice program, Barrett deliveries shelf life and subcategory expected recommends deploying software allow for versus actual per-store profitability tools that can address ordering and more precise performance.“Unique to fresh food production, inventory management forecasting. development, the principles must and product costing. The selected Barrett rec- be enhanced with the creation of platform should offer a degree of ommends eval- targeted waste numbers for each user friendliness, as well as integrate uating individual subcategory to ensure adequate with existing systems. fresh food categories merchandising and sales.” Depending on the size of the for each day- For Lem, waste percentage is operation, retailers may decide to part, ques- important, but not at the expense of pursue such tools internally. Krebs tioning in- sales.“We want to make sure that we said that Rutter’s is developing ventory sce- have product available, which means an internal, automated system of narios and we focus on sales rather than waste,” ordering that seeks to minimize food production she said.“When we focus too much waste. The data system analyzes targets: on waste, we lose out on sales.” sales, trends and spoilage, providing Should Whatever your measurement, the company with a suggested you run waste goals shouldn’t be fixed food order.“The goal is to take through egg but rather reexamined over time, away human error, removing the sandwiches by 10 a.m.? especially when new product is guesswork from a process that Noon? Whatever your introduced.“If you start a breakfast has a sharp impact on foodservice decision,“it’s important hot hold program, the likelihood for profitability,” he said. to be consistent with significant spoilage at the beginning this plan,” he said.“A is high,” Krebs said.“Don’t get IT’S A WRAP customer must have the shocked if you see 75% spoilage For those trying to apply same choices [available] on breakfast sandwiches. It takes foodservice experience from another with each visit.” time for customers to change their industry, the convenience store space The operator [shopping] behaviors.” is unique and comes with its own challenges.“In restaurants, you can should measure SHORT SHELF LIFE reuse steak to make sandwiches, gross profit margin Managing short-shelf-life products per item category but in retail, if you waste a burrito, requires discipline, Barrett said, after waste, choosing you throw it away,” Derian said. As a and a commitment to adhering to a holding warmers, result,“You need to understand how forecast.“While you can never guess coolers and bakery to get the best quality, as well as shelf when a bus may pull in … for short- displays to manage life,” he said. shelf-life products, make less more merchandising well. Easier said than done. Which is often and commit to the forecast,” “Buying cooking why Krebs said while managing he said.“Think of the forecast as equipment to handle spoilage is key, the focus must lie on guardrails on a road. Your challenge is mass production only quality, after which—hopefully— to narrow the guardrails as much as hurts during slow everything else will fall into place. you can.” times, and likewise “Yes, managing spoilage is key ... but At the same time, don’t overlook offering short-shelf- don’t go for getting no spoilage. packaging, an important component life product during “Go for fresh.” of preserving freshness.“You hours when staff is should be willing to pay more for This article was reprinted with limited can hurt the packaging,” Derian said.“It will help permission from NACS Magazine, the execution,” Barrett said. your product stay fresh longer and magazine for NACS, the association for give it a longer shelf life.” In cases convenience and fuel retailing; www. where packaging can extend your NACSMagazine.com. Minnesota Grocer Spring 2020 13
Spotlight on Industry Trends: BEVERAGES E very sector of the food industry Back initiative, a sustained effort Smiles with Every Sip and Every Bite. is evolving at breakneck speeds. aimed at increasing the collection PepsiCo recently announced plans All aspects of the food chain – of plastic bottles so they can be to achieve 100% renewable electricity farm to fork – are innovating remade into new bottles, reducing for its U.S. direct operations this year. to meet the demands of customers, our reliance on new plastic and The U.S. is the food and beverage answering logistical changes, and making investments in recycling company’s largest market and reinventing the retail experience. infrastructure. These investments accounts for nearly half of its total Each issue of the Minnesota Grocer will be made through a new $100 global electricity consumption. magazine will spotlight industry million industry fund that will PepsiCo’s efforts in the U.S. build trends and categories. Check out leverage $400 million in investments upon its global progress in switching these trends! With new products with matching grants in key regions to renewable electricity around the hitting the shelf every day, see across the country. It’s meant to be world. For example, nine countries in how our beverage partners are a catalyst that spurs action from PepsiCo’s European direct operations going above and beyond to be all those involved in growing the already meet 100% of their electricity sustainability leaders in the industry. circular economy. demand from renewable sources. Together, we can reduce our use Additionally, in 2018, 76% of the *** of new plastic and create a more electricity needs of the PepsiCo Minnesota’s sustainable future for generations Mexico Foods business were local beverage to come. The Minnesota Beverage delivered via wind energy. distributors, Association is proud to be a part of “We have entered a decade that bottlers this unprecedented initiative and will be critical for the future of and grocers looks forward to working with others our planet’s health,” said Ramon recognize who share our goal. Laguarta, Chairman and Chief the value of growing the circular Thank you, Minnesota Executive Officer, PepsiCo.“PepsiCo economy for recyclable material. We Beverage Association and is pursuing 100% renewable all share the goal of reducing the American Beverage Association, electricity in the U.S. because the amount of new plastic we use and for your historic support of the severe threat that climate change protecting our environment. This Minnesota Grocers Association and poses to the world demands faster is why America’s leading beverage your industry leadership. Contact and bolder action from all of us.” companies are making beverage Tim Wilkin at tim@mnbev.com or Thank you, Pepsi Beverages bottles out of plastic that is 100% 651-291-2722 or Steve Lodge at Company for your historic recyclable. Our bottles and caps are slodge@ameribec.org to learn more. support of the Minnesota Grocers made to be remade - as such, they Association and your industry are not single use. *** leadership. Contact Michael Hajlo Together, we can open a new PepsiCo at mike.hajlo@pepsico.com or chapter in the journey toward a connects 952‑895‑1399 to learn more. circular economy. However, we all people through know it can only happen if all those some of the *** involved in the recycling system world’s greatest No one wants to – businesses, governments and brands and most-loved foods and see waste where it nonprofits – reinvest in innovative beverages. From Lay’s and SunChips does not belong – ways that will lead to an increase to bubly, Gatorade and Pepsi – their in our waterways, in the recyclables that are collected beloved products are enjoyed by oceans and and remade rather than landfilled consumers more than one billion environment. That’s or discarded. times a day in more than 200 why The Coca-Cola Company is That’s why countries and territories around the leading the industry with our World competing world. The company strives to use its Without Waste initiative. We have beverage global scale for good and to create a vision for a World Without Waste companies products in a way that benefits their because it’s the right thing to do for that make up the American Beverage consumers, their suppliers, their our planet, our communities and our Association (ABA) recently joined communities and the planet – part business. Our goals include: Collect together to launch the Every Bottle of their mission to Create more and recycle the equivalent of a 14 Minnesota Grocer Spring 2020
bottle or can for every one we sell by plastic by partnering with leading bodies of water, it has a higher level 2030; Make all our packaging 100% environmental organizations. of BOD, which simply means that recyclable by 2025; Make bottles and Thank you, Great Lakes the waste will require larger amounts cans with an average of 50% recycled Coca‑Cola, for your historic of oxygen in order to metabolize. content by 2030; and Partner with support of the Minnesota Grocers The dissolvable oxygen needed for organizations, governments, industry Association and your industry untreated waste is taken away from and our customers to create a debris- leadership. Contact Dan Kueppers higher animals such as fish, creating free environment. at dan.kueppers@glccd.com or an environment that is not livable. We specifically design our bottles 651‑681-4145 to learn more. The High Strength Waste and cans using materials like PET Water Treatment process starts by and aluminum that are valuable *** collecting the run-off, which is then recyclables. Our bottles are not transported to the city’s waste water designed to be single use. They are treatment facility where it is run designed to be reused to make new through their digester, helping to bottles or cans. More than 97% of power their facility. Coca-Cola packaging is recyclable, Along with our water treatment and we are working to solve for the Viking Coca-Cola has a bottle and initiative, we have an aggressive remaining packages that have recycling can production facility in St. Cloud, recycling program that successfully challenges. We’re reimagining our Minnesota, and here’s a little about captures over 90% of all materials PACKAGING to use fewer resources how we’re invested in recycling and coming through the warehouse. Due and more recycled materials. protecting the environment. to this recycling program, our entire We believe it should be easier for In an attempt to avoid our 250,000-square foot warehouse Americans to recycle than it is to concentrate run-off from entering requires only 3 annual collections of throw items away. That is why we the sewer system, we have added our 1 trash compactor. invest in partnerships that support High Strength Waste Water Treatment to our routine. One Thank you, Viking Coca-Cola, recycling collection and education. for your historic support of The Coca-Cola Company has a of the main reasons for treating wastewater prior to its discharge the Minnesota Grocers Association long-standing history of partnering and your industry leadership. with industry leaders to make a into a water resource is to lower its biochemical oxygen demand Contact Stacey Olson at greater impact. Recently, we joined saolson@vikingcocacola.com or with Keurig Dr Pepper and PepsiCo (BOD). When untreated waste enters streams, rivers, lakes, and other 218‑481-3215 to learn more. to reduce the industry’s use of new NEW FLAVOR GOOD TO THE CHERRY LAST DROP No Artificial Sweeteners Antioxidant Infused New at KDP/7UP Minnesota Grocer Spring 2020 15
YOUR FULL SERVICE REFRIGERATION CONTRACTOR SINCE 2005 Solid Refrigeration is your complete commercial grocery store and refrigerant based industrial site Minnesota contractor. We offer 24 hour - 7 day a week regular and emergency service with truck and site inventory to get you up and running faster. No job is too big or too small for our highly trained technicians and office staff with over 100 years of refrigeration experience. Let Solid Refrigeration put together a turnkey refrigeration design and installation package to meet your growing needs. Photo Left shows a recent Solid Refrigeration rack installation at Jerry’s Foods, Eden Prairie Photo Lower Right is at Oxendale’s in Minneapolis Full size fleet to meet your customer needs. Solid Refrigeration specializes in energy management based on store design to lower operational costs to help your bottom line. Solid Refrigeration works with energy providers like Excel Energy to maximize your rebate potential. Before you upgrade your existing equipment, feel free to contact us on how creative selections like reach-in doors can put more money in your pocket through energy rebates. Photo Left energy save R/I doors in use at Jerry’s Foods, Eden Prairie Photo Lower Right is at Cub Foods, Eden Prairie Commercial Refrigeration 1125 American Boulevard East Bloomington, MN 55420 24 Hour Refrigeration Service Number - (952) 854-2850 Installation and Energy Management - (952) 854-2850 Equipment Sales - Brandon Neuerburg - (612) 599-1395
Helping independent retailers be more profitable, efficient, and informed. • Advertising Support • Asset Protection • Category Management • Customer Service • Financial Services • Food Safety • Graphic Services • Marketing • Merchandising • Pharmacy • Pricing • Reclamation Support Services Group • Retail Development • Retail Technology • Retailer Education • Shelf Technology • Supply Solutions ContaCt us today and learn how we Can help your business! Visit SpartanNash.com or Call: Joe Hermes, VP Sales 616-878-2355 • joe.hermes@spartannash.com or Greg Cross, Development Manager 320-292-0382 • greg.cross@spartannash.com
ONLINE GROCERY SHOPPING: 7 Written Exclusively for the MGA By Brian Numainville, Principal, Retail Feedback Group KEY E ach year the Retail Feedback Group conducts RESEARCH an extensive study of online grocery shoppers in the FINDINGS United States. This national study delves into a wide range of topics, providing important insight into shoppers, as well as assessing use- share and satisfaction among major service providers. Read further and learn more about today’s online grocery shopping environment! Online Grocery Shoppers… Some Basic Facts More than half of the (22% in 2019 versus 21% in 2018). shoppers completing the The balance of share (12%) went to survey tried or shopped other providers. with just one online grocery Amazon Leads in Satisfaction provider in the last twelve Turning to overall satisfaction months. About 20% indicated they Walmart Leads in Share among those buying food and shop mostly or only online for food Shoppers indicated the grocery items online, Amazon and groceries, while 32% indicated provider they used on their most still registers the highest score they shop online and in-store recent online grocery shopping on a five-point scale where five about equally and 48% mostly experience. As Walmart increased is highest (4.60; a drop from 4.70 shop in-store and occasionally their focus on online grocery last year), followed by Walmart shop online for food and groceries. shopping, they surged to register (4.45; a drop from 4.54 last year) Fulfillment by pickup appears to the largest share (37%, up from and supermarkets (4.43; an be “picking up” with 47% of those 32% last year) as compared to improvement from 4.36 last year). surveyed now indicating their Amazon (29%, down from 31% Interestingly, shoppers with orders orders were picked up (compared last year) and supermarkets fulfilled by Instacart have an overall to 43% in last year’s study). held about even for both years satisfaction score of 4.58, similar to 18 Minnesota Grocer Spring 2020
that of Amazon, and higher than experience. On the other hand, well as more experience by online both Walmart and supermarkets. providing products best meeting providers in successfully meeting Amazon shoppers also rated standards for quality and freshness the expectations of consumers in six of the twelve touchpoints of remains somewhat of an advantage these departments. the online shopping experience for in-store shopping. In general, At the same time, among those significantly higher however, it appears that the shoppers not giving top marks compared to how differences between online and for meeting standards for quality supermarket shoppers in-store food shopping are moving and freshness, produce is the and Walmart shoppers to more of an equivalence in the department with the highest rated their providers. While minds of shoppers. For seven of percentage of mentions (45%). supermarket shoppers still the twelve factors measured, 50% Impulse Purchases Alive and Well recorded lower satisfaction or greater of shoppers find the Among Online Grocery Shoppers scores on about half of the factors are equal for both types Shoppers were asked if they were elements measured, versus of shopping. enticed to purchase additional Amazon and Walmart online These results show that the items during their online order. grocery shoppers, there was growth and maturation of online The good news for retailers is similarity with shoppers of these grocery shopping continue to erode that nearly four in ten shoppers other providers on five elements. the advantage once held by the answered affirmatively, with top Supermarkets Gaining Ground… But shopping experience at a physical reasons including noticing sales or Still Show Room for Improvement store. Consider, for example, that good values, citing that items were While supermarkets share of use 71% of shoppers now indicate new or interesting, or remembering held about even, it appears they that showing a company knows that they needed an item while are gaining ground in other areas. and cares about food is equal placing their order. Somewhat First, supermarkets registered the for both online ordering and fewer shoppers indicated that they highest percentage of first-time use shopping in‑store! were enticed by noticing items by online-grocery shoppers (22%, Fresh Departments Continue to Grow were fresh or in-season, or that compared to 18% for Walmart and Online…Yet Produce Still Falls Short the site or app recommended 9% for Amazon). In the 2018 study, the findings the item(s) based on their cart or Supermarkets also showed an illustrated increased levels of prior purchases. improvement in overall satisfaction purchasing fresh food items by Conclusion (but still with the lowest score) online grocery shoppers. This As these findings clearly while both Amazon and Walmart growth appears to be holding illustrate, the state of online grocery registered declines year-over-year, with fresh food departments again shopping continues to change as noted earlier. registering double digit percentages and offers plenty of opportunity! A less stellar finding centered in 2019. Retailers can use the findings of around receiving all items ordered. this research to benchmark their Supermarket shoppers reported Percent own online grocery shopping the highest percentage of NOT Department Purchasing service and further strengthen receiving all items in their online Online their offerings. order (8%) compared to Walmart (5%) and Amazon (3%). Produce 41% Want to Learn More? While momentum for the su- Meat 36% The findings summarized in permarket channel shows an en- this article are just some that Bakery 35% are available in the full study. couraging direction, opportunity remains for share growth, improve- Deli Meats & Cheeses 32% MGA members may receive a ment in shopper satisfaction, and complimentary copy of the 2019 Prepared Food & Meals 26% accurate order fulfillment in online U.S. Online Grocery Shopper Study grocery shopping. Seafood 14% by contacting Brian Numainville It appears that shopping of Retail Feedback Group at bn@ Online Versus In-Store… online for fresh items is now a retailfeedback.com. Parity Now More Prevalent more accepted part of the online Efficiency and convenience grocery shopping experience. This remain hallmarks of online food growth may be a combination of a ONLINE GROCERY continued on and grocery shopping, coupled broader cross-section of shoppers next page with, to a lesser extent, an engaging in online shopping, as SHOPPING: enjoyable and pleasantly surprising Minnesota Grocer Spring 2020 19
2019 U.S. Your Listening Partner™ Online Grocery Shopper Study Overall Satisfaction Amazon Still Leads; 3% AMAZON Supermarkets Improving Supermarket 5% 2018 2019 2018 2019 2018 2019 4.36 4.43 4.54 4.45 4.70 4.60 Shoppers Report SUPERMARKETS WALMART AMAZON Highest Incidence of NOT Receiving WALMART Boomers Show Highest Satisfaction with Online Food Shopping All Items in Order 2019 4.45 2019 4.48 2019 4.56 8% SUPERMARKETS MILLENNIAL GEN X BOOMER Highest First-Time Use Enticed to Purchase? 22% 18% 9% Nearly Four in Ten Shoppers 39% SUPERMARKETS WALMART AMAZON Were Enticed to Purchase Additional Items During Their Online Order Walmart Share Grew 12% Sharply Compared 62% Noticed it was on sale or a good value to Amazon and 15% 37 % 34% Noticed it was new or interesting Supermarkets 32% 22% 21% 2018 Remembered I needed the 31% item(s) while placing my order Supermarkets 18% Noticed it was fresh or in-season Walmart 31 % The site/app recommended 17% the item(s) based on my Amazon cart or prior purchases All others 29% 2019 Multiple responses allowed Which Items Fell Short of Your Quality 45% CENTER STORE FROZEN DAIRY Standards? 22% Multiple responses allowed PRODUCE MEAT 26 % 25 % 23 % Base: Those not giving highest quality rating. Ordering Online Versus Shopping In-Store Moving Towards More Parity Provides more value for the money spent Offers a better selection of products for More convenient More pleasantly Shows company your needs for you surprising knows/cares about food Provides better Provides products Makes the most customer service best meeting your efficient use of More enjoyable standards for quality Takes better care of Makes you feel your time securing personal info more valued and freshness as a customer Ordering Shopping Provides more personalized Online shopping experience In-Store *This infographic illustrates the key findings of the 2019 RFG U.S. Online Grocery Shopper Study. 20 Minnesota Grocer Spring 2020
See Yourself in a Retail Food Industry Career From farm to fork, the retail food industry offers many diverse careers. The possibilities are endless, we offer excellent benefits and pay, with the flexibility to fit today’s evolving workforce. A new career in Minnesota’s Food Industry awaits you! Cashier, Stocker, YOUR FUTURE Bagger, Clean Team, Food Production Clerk, Greeter STARTS HERE Customer Service Specialty Department Manager, Store Manager, Assistant Store Manager Service Supervisor/Manager District Manager, Training Support Representative, HR Support, POSSIBILITES ARE ENDLESS Operations Manager The Minnesota Grocers Association Foundation (MGAF) will provide tuition support for classes completed for the specific purpose of furthering employees’ current career or making available to them other careers offered by their employer. This round of Carts to Careers program awards will be facilitated through the Retail Management Certificate (RMC) program, an online, 8-course education run by Alexandria Technical & Community College (ATCC). ATCC is the first in the state to offer an industry-endorsed, accredited business education program endorsed by the National Grocers Association (NGA), Western Association of Food Chains (WAFC), Food Marketing Institute (FMI), Minnesota Grocers Association (MGA), and the U.S. Department of Labor. The ATCC Retail Management Certificate (RMC) Spring course starts March 16, 2020. How does the MGA Carts to Careers (CTC) Tuition Support Program Work The process is a simple one-step application. An independent selection committee will evaluate all applications and select CTC recipients. Each CTC recipient will be awarded $2,000 in tuition support. This round of the CTC tuition support application process closes end-of-day February 25, 2020. Once CTC recipients are approved, awardees will be notified via email on the next steps in the application process with enrollment in ATCC by March 16, 2020. The next round of CTC tuition support opportunities will coincide with ATCC’s next class start of May 18, 2020. CTC tuition support is available through a State of Minnesota grant appropriation and Minnesota Grocers Association Foundation funding. We are here to help, contact Katie Frederick at kfrederick@mngrocers.com or Jamie Pfuhl at jpfuhl@mngrocers.com or at 651-228-0973.
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C hanging marijuana laws and consistently low unemployment rates are causing grocery/ convenience retailers to rethink their drug testing policies. ? legalized marijuana can make it difficult for employers to comply with both state and federal laws and has caused many retailers to question whether their policies and practices should be revised. What remains clear Legal marijuana is roiling company drug policies By Stephenie Overman in Ohio carry state-issued cards that allow them to use medical marijuana. At Beck Suppliers,“There was a lot of discussion: What is worse, marijuana or alcohol? What if it’s not being done at work?” Bouillon More than 30 states now allow the is that employers should evaluate said.“We were looking at everything. medicinal use of marijuana, and 10 their workforce drug policies and The whole picture—the low rate of states and Washington, D.C., allow assess whether they are prepared unemployment, turnover, how we do recreational use for adults 21 and to handle the consequences of their orientation and onboarding and how older. But companies are not required policies in the wake of increased a job seeker sees our process.” to accommodate on-the-job use, legalization and decreased stigma. A big concern was how long it and marijuana use remains illegal was taking to get from one stage under federal law, still listed under Policy Review to the next in the application and the Controlled Substances Act as a Recreational use of marijuana hiring process.“Overall, we wanted Schedule I drug, which is defined as became legal in Michigan last to improve the experience of the having no medical value and a high December, but Quality Dairy Co., applicants and new hires and produce potential for abuse. based in Lansing,“still follows federal a quicker hire.” Courts in some states have held laws concerning marijuana,” said Lisa Eliminating pre-employment that the federal law pre-empts state Benson, director of human resources. testing and condensing the process laws concerning medical marijuana, Quality Dairy, which has about 30 “took a lot of frustration off the while other states have rejected stores in Michigan, uses a third-party hiring process. It has made it so that argument. vendor to conduct tests for drugs, much quicker to get people in the Registered medicinal users in some including marijuana and opioids, at door,” she said.“The benefits of not states may have job protections, but the time of hire, before a promotion doing [tests] are greater than doing state statutes with nondiscrimination and for probable cause. them for everybody. It has helped all provisions for medicinal use usually But Quality Dairy is reviewing of our stores—they hire when they exclude jobs that test under federal parts of its policy, Benson said. Some need someone.” law, Lisa Nagele-Piazza wrote for managers “feel that marijuana should Beck Suppliers does continue to the Society for Human Resource be taken off” the list.“It’s something test for reasonable cause, Bouillon Management. Some states, including we’ll have to look at. We have lost said.“We watch job performance California and Ohio, do not provide some good workers,” she said. and attendance, and if we suspect workplace protections for medical Beck Suppliers Inc. conducted somebody, we make the decision” marijuana users, even if they are drug screening for nine years but, to test, she said. If the employee following state law and limit their following long debate, eliminated tests positive, managers have the use to off-duty hours, she wrote in an pre-employment and random drug flexibility to fire the employee or to article titled “The ABCs of THC: What testing in July 2018, according to June refer the person to the company’s Employers Need to Know About Bouillon, director of human resources. Employee Assistance Program. Marijuana Laws.” The company is based in Fremont, “We give managers the ability to The ever-changing landscape of Ohio, and an estimated 13,000 people work with somebody who is a good 24 Minnesota Grocer Spring 2020
worker.”Again, drug testing following to work high. Employees admit it or accidents and testing for drivers and walk in with it. They think ‘it’s legal, some other workers fall under federal I can do it.’They think it’s like a agency rules. cigarette,” Kostecka said. Has dropping pre-employment But Vintners Distributors has a testing encouraged drug users to drug-free policy based on safety, and apply for jobs? “Currently I don’t violating that policy is grounds for think so,” she said, but added that the termination, she said.“Even medical company “left the option open. When marijuana cannot be used while we announced, we included a clause at work.” that if this becomes an issue, we could The company is working hard to go back to the old policy.” make sure it clearly spells out its policies and educates employees The California Way about them, Kostecka said.“We’ve California was the first state to updated our handbook to clearly enact protections for medical cannabis define that marijuana is included in patients, beginning in the 1990s. the drug and alcohol policy.” Recreational marijuana sales became Whatever drug policy a company legal in the state in January 2018. decides on, make sure it’s fair and Vintners Distributors Inc.“would Find Captain Ken’s consistent, said Rob Wilson, president love” to conduct pre-employment of Employco USA, a national OVEN-BAKED BEANS, drug tests for job applicants at its employment solutions firm based in CHILI, AuGRATIN POTATOES 130 Loop Neighborhood c-stores, all Westmont, Illinois. And, yes, he said, and more in the frozen section in California, said Valerie Kostecka, spell it out in the employee handbook. of your favorite grocer. Vintners director of human resources. Although companies can conduct “In this market we can’t [test] at drug tests inhouse, there are the moment for pre-hire; we are so advantages to using a vendor, Wilson eager to get candidates right now,” said. It’s not only more convenient, because of the low unemployment but it can give employees a sense of rate, Kostecka said—a concern voiced impartiality when tests are conducted by many HR managers.“It’s hard by a third party. Learn more at www.captainkens.com enough to find candidates. The more Using a computer program to you use the screening process, the choose employees for random further it reduces the applicant pool,” drug tests is another way to make she said.“Once the market loosens employees feel that the process is up, I will look back into pre-hire drug fair, he added. That way, “HR doesn’t testing again.” have to say, ‘I picked you for this.’You The company does not conduct can show that the computer program reasonable suspicion drug testing made the pick; it wasn’t that the because California requires strict person was suspected” of drug use. formalized training for such testing. However testing is done,“you need “California is extremely strict on to have a consistent message. What if reasonable suspicion, so we really because of low unemployment you’re stay clear of that one,” according to willing to sometimes look the other Kostecka. The company has a medical way? What happens when you meet advisor that managers can contact for that rock star and they don’t pass the Got Ads? safety and medical questions. drug test? If you hire that person, it Some California cities don’t allow could be discrimination,”Wilson said. drug testing for reasonable suspicion, “You need to make it consistent.” she said. Companies have to comply And until the conflict between with city regulations, and “multiple state and federal laws is resolved, cities have different regulations, you should: Stay up to date on the especially cities like San Francisco, quickly evolving marijuana laws; which are very employee friendly.” develop state-compliant workplace The company does conduct post- drug policies that are appropriate for accident tests, considering city as well your company, potential applicants as state and federal requirements, and employees; apply your marijuana she added. policies in a uniform fashion; and contact counsel if any concerns Clear Expectations regarding specific incidents arise. Employees have many This article was reprinted with misconceptions about marijuana use, permission from NACS Magazine, the contact kackerman@mngrocers.com Kostecka said, and sometimes think that because it is allowed by the state magazine for NACS, the association for recreational use it can be used on for convenience and fuel retailing; the job.“We have had people come www.NACSMagazine.com. Minnesota Grocer Spring 2020 25
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