Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association

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Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
Advancing the Food Industry of Minnesota   Spring 2020

Grocers Get Green
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
Coming Soon!
                                           “By combining the best of
                                               both companies,
                                    New Harvest Produce
is positioned to be a customer’s first
  choice in fresh and cut produce.”
Ron Carkoski, CEO New Harvest Produce

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Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
Our Classic Taste is Lookin’ Fresh
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©2019 Crystal Farms Dairy Company
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
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
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
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
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
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
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
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
Grocers Get Green - Advancing the Food Industry of Minnesota Spring 2020 - Minnesota Grocers Association
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
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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.
www.wileywallaby.com

                                                                                                                                                       Over 80 Years Experience
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fresh 24 hours a day, 7 days a week, year-round. Our team knows and serves grocery stores from the small-town
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control system or walk-in cooler or freezer. It’s simple; if you want a company that understands your needs, is able to
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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

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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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