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Hawaii Retail Grocer SPRING 2020 the magazine of the hawaii food industry association Inside: What Does Bill 40 Mean For You Our Annual The Social Event January’s Legislative ‘Talk Future Story’ of Update: French Wine Food Tariffs A look at companies likely to define and shape the future of the food industry PERMIT NO. 583 HONOLULU, HI PAID U.S. POSTAGE PRSRT STD
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CONTENTS 22 Hawaii Retail Grocer is a quarterly publication of the Hawaii Food 12 Industry Association Publisher Lauren Zirbel Editor Meghan Thibault Writers Meghan Thibault Lauren Zirbel Desirée Rose Alexis Chapman Keith DeMello Design 18 Dustin Koda Photography Courtesy of Mahi Pono Advertising Jennifer Dorman Charlene Gray David Kanyuck Barry Redmayne Printer Trade Publishing Hawaii Retail Grocer SPRING 2020 the magazine of the hawaii food industry association Inside: What Does Bill 40 Mean For You Our Annual Social Event January’s The Future Legislative ‘Talk Story’ of Update: French Wine Food Tariffs A look at companies likely to define and shape the DEPARTMENTS future of the food industry PERMIT NO. 583 HONOLULU, HI PAID U.S. POSTAGE Legislative Update.................................................................................. 6 PRSRT STD Chair’s Message ...................................................................................... 9 Cover Image by Mahi Pono New Products ....................................................................................... 12 All editorial content ©2020 by the Hawaii Food Industry Association. Legislative Talk Story ............................................................................ 14 No part of this publication may be reproduced without prior approval Member News ...................................................................................... 29 of the publisher. The Last Word ...................................................................................... 34 FEATURES French Wine Tariffs .............................................................................. 16 2020 HFIA Event Calendar ................................................................... 17 Please address all correspondence to: The Future of Food ............................................................................... 18 1050 Bishop St., PMB 235 HFIA Annual Social ............................................................................... 22 Honolulu, Hawaii 96813 What Bill 40 Means For Your Business.................................................. 26 Phone: 808-533-1292 www.hawaiifood.com 4 | HAWAI I RETAI L G R OC E R | SPR I N G 2020
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LEGISLATIVE UPDATE The Economic Impact Statement Act HFIA is in strong support of this measure. Economic impact state- ments would provide an approxi- mation of the costs and benefits at- tributable to any change in the law before the passage of a given bill, effectively laying out the impact on private organizations and individuals in the state. SB3163 to mandate eco- BY LAUREN ZIRBEL Minimum nomic impact statements recently passed its first hearing. Wage Increases 2020 at the State One of our top priorities is to lessen Reducing Taxes on Food and the burden of grocery taxes on all Ha- Legislature waii customers, especially those with HFIA began actively engaged with limited income. We’re supporting measures to increase the Refundable Beverages legislators long before the start of the Food/Excise Tax Credit from $110 Taxing groceries is the most regres- 2020 legislative session. We’ve been to $150, as well as other changes to sive way to tax! Thirty-six states do talking about our priority issues and make the credit more accessible and not tax groceries. Seven states have making sure Hawaii’s senators and more meaningful to those in need. a lower tax for groceries. It would representatives understand how is- We know our members are proud be a great benefit to all residents of sues like wage increases and overreg- to pay fair wages, in addition to pro- Hawaii, in particular those in the ulation make it harder for the food viding their team members with lower income brackets, for the state industry to serve our communities. benefits like health care. We are not to exempt food and medical services We’re also very pleased to be sup- opposed to a reasonable increase in from the GET. Hawaii residents al- porting a range of favorable legisla- the minimum wage to $13 per hour ready struggle with some of the tion this year. by 2024. We are in strong support highest costs of living in the country. of addressing cost of living increases We believe changes to the Food/ Ex- Joint House, also addressed in this package, in- cluding universal pre-k and affordable cise Tax Credit have a high chance of success in the immediate future, Senate, housing. This compromise package will help so we’ll be advocating for both ap- proaches to reduce this burden. Administration ensure that local businesses have time Economic to prepare and adjust to minimum wage increases. Passage of a balanced Family Leave Package package such as this one doesn’t unduly punish small businesses, as The Family Leave study was re- leased late last year, but several leg- HFIA is supporting several key com- a more aggressive wage mandate islators have noted that the study is ponents of this proposed package to would, and takes into account the somewhat incomplete. We’ve also ensure we get the best positive out- cost of living issues that drive pover- noticed that the research was com- comes for HFIAmembers and avoid ty. We continue to highlight existing pleted from a perspective of how to potentially damaging mandates. employee benefits and protections create a family leave program, not paid for by employers, such as health whether to create a family leave pro- insurance and temporary disability gram. It recommends that any pro- Working-Class insurance, and to encourage legisla- tors to consider these when drawing gram have an implementation time- line of at least two, but preferably Tax Relief and up any new legislation. three years. Two bills have already been heard Reasonable that would provide family leave in- 6 | HAWAI I RETAI L G R OC E R | SPR I N G 2020 CONTINUED ON PAGE 7
LEGISLATIVE UPDATE surance benefits and extend periods of family leave to sixteen weeks for Manufacturing, Bottles businesses that employ one or more employees who meet the hourly Buying, and HFIA supports efforts to fix the de- qualifications. HFIA has testified in opposition to House Bill 2219, which GrowingLocal Food posit beverage program, and we op- pose measures that would make the was deferred. HFIA also opposed Legislation, and in particular tax cred- program more expensive for custom- Senate Bill 2491; however, this bill its to help local manufacturing and ers or businesses without fixing the passed its first committee. local agriculture will benefit Hawaii. long-running issues. We’re supporting manufacturing tax We’ve testified in opposition to Workforce Training credits that will help grow and diver- sify our economy, keep more dollars HB2025 and SB2726, which would increase the administrative fee for the Our number one complaint from in state, decrease our dependence on deposit beverage program in accor- members is the lack of qualified can- imports, and develop and strengthen dance with CPI. These beverage fee in- didates for hire. We’re pleased to be the Made in Hawaii brand. crease bills have passed their first com- backing a wide range of bills to create HFIA supports HB2080 to create mittees. We’re also opposing SB2720, employee training programs and im- an income tax credit for Hawaii man- which would prevent the state from prove workforce readiness. ufacturers, and SB3090 to establish an buying beverages in plastic bottles. We HB1915, HB2092, SB2065, and agricultural production tax credit will oppose SB2727, which would change SB2259 create a workforce readiness both have their first hearings shortly. the exemption distance for a beverage programs in the Department of Edu- We’re also supporting a range of dealer in a high-density area from two cation. SB2073 would establish a ca- measures to provide manufacturing miles from a redemption center to one reer pipeline initiative. HB2508 and and other grants through the Ha- mile. This bill has also passed one com- SB3013 incentivize public high schools waii Technology Development Cor- mittee as of this writing. to encourage students to obtain indus- poration. try-recognized certifications. CONTINUED ON PAGE 8 FEATURED SPEAKER AARON DALY Whole Foods Market Former Global Director of Energy Management GRAB YOUR OPERATING COSTS BY THE HORNS Hear from industry leaders about strategies to save money on lighting, HVAC, and other building operating costs and connect with contractors to make it a reality. APRIL 29, 2020 | SHERATON WAIKIKI REGISTER FOR YOUR SPOT AT HAWAIIENERGY.COM/SYMPOSIUM H AWA IIF OOD . COM | 7
LEGISLATIVE UPDATE CONTINUED FROM PAGE 7 than zinc and titanium dioxide. HFIA is opposing these measures based on the lack of scientific rationale for the bans, Flavored Tobacco HFIA has testified on many of these and the need for functional skin cancer measures, asking for a more reasonable prevention products. We also believe Products approach. that these measures encourage consum- ers to buy sunscreen online, where it Additional Flavored cartridge vape products were will be nearly impossible to enforce this recently banned at the federal level, legislation. and the national tobacco age has been Sunscreen Bans changed to 21. There are concerted ef- forts this year to ban flavored tobacco There are several bills this year aimed at CBD products in Hawaii, including menthol. banning all sunscreen ingredients other We are in support of legislation to end confusion about these products. We support SB2050 to establish a regu- latory framework for products con- taining CBD and SB2274 to regulate cannabidiol under the Department of Health. Food Donation We support HB2234 to allow for the good faith donation of expired food, which has passed one committee thus far. HFIA also supports HB2706, which requires the Department of Health to promote food donation during normal, routine inspections of food establish- ments and expands liability protection for the donation of food. Green Incentives Incentives are a powerful tool for positive change. Our businesses are already leaders in creating more sus- tainable practices in our industry. We’re in support of several measures that can help companies be more environmentally conscientious. HFIA is supporting SB2548 to create a marine debris recycling pi- lot program. We’re also supporting calls to increase the fine for littering in SB2051. Plastic Bans There are several bills and resolutions on banning certain types of plastic statewide. HFIA is actively partici- pating in the still operational Plastic Working Group created by the legis- lature last year. We’re advocating for the legislature to allow the Task Force time to do its work, and not to pass any new legislation this year. Unfortunately, the County of Maui is not waiting for the completion of the working group and has already 8 | HAWAI I RETAI L G R OC E R | SPR I N G 2020
introduced its own version of Bill 40. CHAIR’S MESSAGE Theft Country Club soon follows on As most of our businesses know, April 3, 2020, with the HFIA An- theft is an increasing problem in our nual Convention slated for June state. HFIA has opposed SB2591 to 5 & 6 at the Aulani Disney Resort prohibit courts from requiring a & Spa. I hope to see all of you at monetary bail as a condition for re- these events. lease when a person is charged with My thanks to everyone who a petty misdemeanor. This measure was deferred after its first hearing. attended Carter’s Triple Crown We encourage all members to Happy New Year HFIA Team, in January, a sold out event with check our Weekly Updates for cur- amazing games and cocktails. A rent information on HFIA priority I look forward to a successful big mahalo to the planning com- bills. We also invite interested mem- bers to sign up for the Government 2020 ahead as we build on positive mittee for their hard work. Un- momentum with new and long- fortunately my horse didn’t win Relations Committee to help de- the first leg of the race, but it was termine our association’s position time members. Our voices are much stronger together. FUN. Mahalo to all of our mem- as we move through the legislative session. In February, we’ve planned bers for making HFIA a success. Most importantly, we ask that all our Pau Hana with Legislators, Cheers to 2020! members respond to Action Alerts. a networking mixer at Hukilau, Aloha, We are very proud to be the voice of Joe Carter followed by the HFIA general Hawaii’s food and beverage industry, membership meeting on March VP-GM Coca-Cola Bottling and at times we need that voice am- plified by all of you to ensure our leg- 26, 2020. Our 27th Annual Golf of Hawaii islators hear us loud and clear. Tournament at the Honolulu The Odom Corporation H AWA IIF OOD . COM | 9
2020 NGA UPDATE CBD CBD products are available in a vari- ety of forms. They are being sold in nearly every retail format, including independent grocery stores, but a lack of clarity regarding CBD reg- ulations is a significant source of concern for our members. The 2018 Farm Bill allowed for the commercial production of hemp and removed CBD from the Controlled Substanc- es Act; however, FDA maintains that ingestible CBD products are illegal under the Food, Drug, and Cosmet- ic Act. NGA continues to urge FDA to take steps to establish a clear reg- ulatory framework in which CBD is distinguished as a dietary supple- ment and food additive rather than a human drug under FDA’s Section 505 regulations requiring clinical BY THE NATIONAL suit against the USDA challenging trials before going to market. GROCERS ASSOCIATION this rule. In January, the U.S. House Impeachment and the 2020 presiden- of Representatives filed an amicus brief to the lawsuit, arguing that the Taxes tial election captured headlines this final rule is contrary to SNAP, con- Unfortunately, the end of the year winter, drawing attention away from strains historical state discretion, and spending package failed to resolve issues impacting independent retail- would cause irreparable harm to the a drafting error in the Tax Cuts and ers and wholesalers. However, NGA program. The House also argued that Jobs Act (TCJA) known as the “retail continues its work behind the scenes a bipartisan Congress rejected simi- glitch” that prevents retailers from to score wins that will benefit Main lar attempts to restrict work require- being eligible for full and immediate Street grocers. Below are an update ments in the 2018 Farm Bill. expensing for interior remodels to and outlook on critical legislative is- stores. NGA is pushing Congress to sues to the supermarket industry. find a solution in 2020. Drug Pricing NGA advocated for two items that SNAP Work and DIR Fees were included in the end of the year spending deal: The Work Opportu- Requirements Congressional leaders purposefully set a May deadline to extend fund- nity Tax Credit (WOTC) and New Markets Tax Credit (NMTC) that The U.S. Department of Agriculture ing for a list of popular federal health were set to expire at the end of 2019. (USDA) recently finalized a rule to programs to give lawmakers a vehicle Both were extended to December remove SNAP benefits to roughly to pass major health legislation, like 31, 2020. 700,000 “able-bodied adults without a fix for surprise medical billing and dependents” (ABAWDS) after three months if they cannot find employ- to address drug pricing. Lawmakers came close late last year to passing a Transportation ment. Before the changes, ABAWDS package of health provisions that in- Although last year’s effort failed, who lived in high-unemployment cluded a ban on balance billing, the Speaker Pelosi is renewing a push areas were frequently given waivers practice of sending patients bills for for a $1 trillion infrastructure bill. to bypass the three-month time lim- services insurers won’t cover and House Democrats are hopeful that it. The new rule requires people be- other provisions aimed at reducing a new, wide-ranging proposal has a tween the ages of 18 and 49 who are surprise medical bills, until leaders of better chance of reaching bipartisan childless and not disabled to work at the House Ways and Means Commit- support. The bill includes measures least 20 hours a week for more than tee stepped in to ask for more time to that are usually considered sepa- three months over a 36-month pe- debate the bill. NGA is working with rately, such as broadband, pipe- riod to qualify for food stamps. The a coalition of pharmacy groups to lines, schools, housing, and parks. rule is set to go into effect on April 1. urge Congress to include reforms to The deadline to reauthorize surface Shortly following the finalized rule, DIR fees and pharmacy quality mea- transportation programs is Septem- Attorneys General in 15 states and sures in a healthcare package before ber 30, 2020. the District of Columbia filed a law- the November elections. 1 0 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
Changes to SNAP SNAP is considered a very low-cost high benefit government program, so Categorical Recent changes to the Supplemen- tal Nutrition Assistance Program the tendency has been to err on the side of providing the benefit rather Eligibility (SNAP), formerly called food stamps, than withholding it. Applicants liv- In July, 2019, the USDA announced will make it harder for many individ- ing in areas with few available jobs or a proposal to change the categorical uals to access SNAP benefits. Here’s without available spaces in training eligibility rule. Under the existing why. programs were able to continue to rule, households that receive Tem- porary Assistance for Needy Families (TANF) benefits are automatically FDA maintains that eligible to also receive SNAP bene- fits, even if they don’t meet all the re- ingestible CBD products quirements for SNAP. The new rule would eliminate this automatic categorical eligibility. Com- are illegal under the Food, ments were open on the rule change through November, 2019. The USDA Drug, and Cosmetic Act. has not yet confirmed adoption of the new rule. If adopted, it is estimated that up to 3 million people nationwide would lose benefits. It would also have receive needed SNAP benefits. big impacts for school lunch programs. Waiver Restrictions The new work requirements, as described by the NGA (at left), will For more information on these Since 1996, states have had broad set tighter limits on the requirements issues and how you can make your leeway to grant waivers for work re- states need to meet in order to grant voice heard in Washington, DC, quirements, allowing beneficiaries such waivers. The number of Hawaii visit www.grocerstakeaction.org. to continue to receive SNAP bene- SNAP users who will be impacted are fits beyond three months. Overall, not currently available. Expand your market reach to the growing Pacific Islander communities! • Exclusive Products • Competitive Pricing • Same-Day Delivery ng Over 120 i Supply Islandwide! Stores Call Archie McCoy • 561-1617 • archie.micro@gmail.com • micronesiaimports.com H AWA IIF OOD . C O M | 11
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(of sorts) of locally-made products Hawaiian Honey Furikake Puffs, as to enjoy 2020. Through initiatives well as Aloha Tofu Factory’s Firm like the HFIA’s annual Made in Ha- Tofu, Soft Tofu, and Deep-Fried Tofu waii Festival and this guidebook, we are all available at Foodland Super- hope to entice readers to choose lo- markets, Safeway, and Times Super- cal when they shop. market. HFMA represents approximate- Koloa Rum Company’s Koloa ly 150 local members and has been Pineapple Passion Cocktail, Koloa promoting Hawaii-grown or -manu- Kauai Dark Rum, and Koloa Kauai factured products since 1977. Many Coconut Rum can each be found at HFIA members are featured in the ABC Stores, Safeway, and Foodland guidebook, designed to increase ap- Supermarkets. preciation and understanding of the “Buying local is really about the unique flavors, quality, and care that essence of Hawaii and sharing the go into the production of Hawaii’s Aloha Spirit,” the guidebook states. fine foods and beverages. “Made in Hawaii means a product HFIA member Diamond Bakery is authentic in terms of origin, about NEW Co., Ltd. is home to its Original Soda the people who helped make it, and GUIDEBOOK Crackers, Original Royal Cream Crackers, and Hawaiian Shortbread the intrinsic value knowing a prod- uct is true to its location.” FEATURES Cookies. The guidebook provides recommendations for how best to The guidebooks are available for purchase from the following factory HAWAII-MADE enjoy these favorites, such as with retail operations: PRODUCTS peanut butter and guava jelly as part of a local-style breakfast, or ingredi- ents for a fancy feast like a Roasted BY KEITH DEMELLO OF Kabocha Squash soup. ULUPONO INITIATIVE Other featured products include Hawaiian Pie Company’s fruit pies Tempting local palates and thwart- and full-size 9-inch deep-dish pies, ing many well-intentioned New Year available in Foodland, Safeway, and resolution diets is the newly pub- Waianae Store. Or try Tamura’s Su- lished Foods of Hawaii, a Unique per Market to find Taro Brand’s Poi, Food Guide for Hawaii crafted Bean Sprouts, and Just Enough Grab products, gifts, tours, and more! and Go Fruits and Vegetables. Published by the Hawaii Food Man- La Tour Bakehouse’s Organic ufacturers Association (HFMA), the 100% Sprouted Multigrain Bread, guidebook provides an official list Japanese Style Bread, and Organic H AWA IIF OOD . C O M | 13
LEGISLATIVE TALK STORY sion. Johanson understands the neg- ative impacts that extreme jumps in the minimum wage can trigger and On January 8, 2020, HFIA members Victor Lim, the need to ensure that any increase and legislative leaders gathered at McDonald’s of Hawaii franchisee is incremental and reasonable. the Capitol for HFIA’s annual Leg- Johanson also recognized Hawaii islative Talk Story, presented in part- Gary Yoshioka, President, Diamond employers’ sizable responsibility for nership with the Hawaii Restaurant Bakery providing health insurance to work- Association. The panel was moder- ers, making that an essential part of ated again this year by Derek Kurisu The panel this year focused on some any discussion about wages, leave, of KTA Superstores. of the unique challenges that Ha- and other labor issues. waii businesses face and how the Vice Speaker Nakashima brought Our panelists included: business community and legislative the issue of homelessness in Hawaii, leaders hope to work together to speaking frankly to the point that Representative Aaron Ling Johanson, find solutions. many people feel the homeless crisis Chair of the House Committee Chair Johanson opened the dis- appears to be improving. Nakashi- on Labor and Public Employment cussion with the impacts of labor ma stressed the need to seek and ex- issues in Hawaii. Local and national periment with new solutions. Vice Speaker Mark Nakashima pressure to increase the minimum Local food independence through wage to as much as $17 per hour locally-sourced agriculture was an- Joe Carter, VP & General Manager, has been on the minds of members other topic of discussion, as was Coca-Cola Bottling of Hawaii as we enter the 2020 Legislative Ses- the expansion of our local skilled labor pool. Gary Yoshioka of Dia- mond Bakery has made excellent use of some of the manufacturing assistance programs created by the legislature. He encouraged others to take advantage of these, explaining the success of these programs might provide a framework to successfully train workers in technology to make them workforce ready. Victor Lim of McDonald’s stressed the importance of col- laboration as a means of finding functional solutions to shared chal- lenges. He cited last year’s Act 254, which established the Plastic Source Reduction Working Group, as a type of legislation that gives him hope that we can find solutions and rea- sonable compromises to other is- sues facing Hawaii. Joe Carter of Coca-Cola spoke to his company’s long history in Ha- waii, noting that beyond providing food, local businesses provide jobs, sponsor sports teams, volunteer, stock the foodbank, drive the econ- omy, and play a vital role in disaster relief. Carter closed the panel by stressing the importance of creating statutes that help us work as a team. High cost of living, high labor costs, natural disasters, the home- less crisis, and lack of trained work- ers are just some of the challenges facing Hawaii businesses. Working collaboratively is the way forward for our business community and state government. 1 4 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
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Proposed French tlement in this dispute and avoid the implementation of new tar- Wine Tariffs iffs,” said Stuart, who is also WS- WA’s immediate past chairman in testimony before the Section 301 Threaten Industry Committee. “At a minimum, in or- der to avoid the negative economic impact and allow wine and spirits wholesalers to continue to respond to consumer demand, USTR BY MEGHAN THIBAULT consumers and jobs. should remove champagne and “In 2018, the United States im- French sparkling wines from the In 2018, Champagne and spar- ported $743 million worth of final list of French-origin products kling wine from France account- sparkling wine from French pro- that may be subject to additional ed for 12.14 percent of total U.S. ducers. This would be equal to a tariffs in this dispute.” wine imports and 2.76 percent of product value of $718 million after the entire U.S. wine market. Even- deducting freight and insurance ly distributed across the country, charges,” said Stuart. “Cham- a recently proposed 100 percent pagne and sparkling wine import- tariff on French wines would lead ed from France account for about to an overall price increase of 2.5 12.14% of total wine imports and percent on wine, or about $1.87 a 2.76% of the entire wine market in gallon at the consumer level. the United States…A 100% tariff Wine & Spirits Wholesalers of on French sparkling wines would America (WSWA) represents im- be equal to a price increase of ap- porters, producers, exporters, dis- proximately $718 million. Adding tributors, and retailers across the back the transportation margin, country, including many of our the increased cost to distributors own HFIA member companies. rises to over $743 million.” In January, WSWA joined a coa- “This would be passed through lition of beverage alcohol industry from importers to distributors leaders opposing both existing and and ultimately to the final con- newly proposed U.S. tariffs on Eu- sumer…this price increase will ropean alcohol products, and the result in 1.15 million gallons of lost inclusion of champagne and spar- sales…a reduction of about 1.84% kling wine from France on a list of in wine sales. Lower volumes will proposed retaliatory tariffs being result in lost jobs as wholesalers considered by the Office of Unit- need fewer truck drivers, clerks ed States Trade Representative and warehouse staff,” said Stuart. (USTR), in response to the recent Stuart was referring to demand French Digital Services Tax (DST). models developed by WSWA that In a letter to the USTR, the coa- also estimate that such a drop in lition detailed the disproportion- wine sales will ultimately lead to a ate negative economic impact any total of 17,000 lost jobs and more increased duties on French cham- than $750 million in lost wages. pagne and sparkling wine, in par- Additionally, the model predicts a ticular, would cause to U.S. jobs, total cost to the American econo- consumers and small to medium my of more than $2 billion. businesses, including nearly all “We don’t expect Hawaii to be WSWA members. disproportionately affected com- Barkley Stuart, executive vice pared to other U.S. states,” said president of Southern Glazer’s Cindy Haas, vice president of ex- Wine & Spirits, testified at a pub- ternal communications and cor- lic hearing held by USTR on behalf porate social responsibility at of WSWA. He urged the admin- Southern Glazer’s Wine & Spirits, istration not to adopt tariffs on based in Miami. “The effect would French champagne and sparkling be far-reaching and the same in all wine and avoid the numerous un- States.” intended consequences these du- “We strongly urge the U.S. and ties would have on U.S. businesses, France to reach a negotiated set- 1 6 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
FEBRUARtYh M A R C Hth 27 26 ANA E M B E RS H IP & PAULEH GISL ATORS GENER AL M BOARD MEETING WITH H u ki la u H on ol u lu n tr y Cl u b 5 H on ol u lu Co u $25 5 :3 0 -9 p » $ 2 11 :3 0 a- 1 p » A P R IrLd J U N Eth 3 27th ANNUA L 56 ANNUAL HFIA AMENT N CONVENTIO& Spa LF TOU RN GO n tr y Cl u b H on ol u lu Co u sort Sp on so r! Aulani Disney Re n » $3 00 ea . or $395 r membe fo rs 11:3 0a Sh ot gu AUG U ST st 23rd 21 HAWAII MADE IN FESTIVAL ed el l Ce n te r N ea l S. B la is Hours ring Buyerʼs-Only » Free Entry Du on Aug 21 @ 8a for HFIA members 2020 HFIA EVENTS SAVE THE DATES! visit www.hawaiifood.com for details.
The Future of Food M ahi Pono acquired management firms. Mahi Pono Diversifies 41,000 acres of for- Mahi Pono’s signature crop of Crops on Maui mer sugarcane land potatoes has so far adapted well to Sugarcane Land from Alexander & Baldwin over a Maui’s soil and climate. Red, white and yellow potatoes are success- year ago. Since then, the company fully being grown and harvested A look at companies has been preparing and planting in Puunene. The company kicked likely to define and the land in East Maui, replacing the off 2020 with a donation of 30,000 long-term sugarcane monoculture pounds of potatoes to the Hawaiʻi shape the future of the with a diverse array of non-GMO Foodbank. food industry crops.ahi Pono is a joint venture be- According to reporting by Maui tween Pomona Farming LLC, a Cal- News Now, the company’s recent ifornia-based farming company, the harvest passed a standardized Food Public Sector Pension Investment and Drug Administration panel test. BY MEGHAN THIBAULT Board (PSP Investments), one of All studies came back clear, mean- Canada’s largest pension investment ing that more than 400 chemicals, 1 8 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
ALL IMAGES COURTESY MAHI PONO including diquat and paraquat, stores and restaurants on Maui and have been earmarked for the com- were undetected in Mahi Pono’s eventually, across the state, wrote pany’s expanding grass-fed beef potato crop. Mahi Pono Senior VP Shan Tsut- production. The company’s commercial har- sui, in a recent Maui Now op-ed. Other crops being tested include vest begins in earnest in mid-Feb- “Our long-term goal is to bring sus- varietal onions, along with papaya, ruary, and Mahi Pono is estimating tainable agriculture to Maui with mac nuts, avocado, and melons. that their crop will yield 50,000 strong, integrated farming practices According to Jayson Watts, Proj- pounds of potatoes per week, a that are economically viable, envi- ect Manager at Mahi Pono, they’ve quantity that will significantly re- ronmentally sound and good for been working closely with super- duce the need for imported pota- our community. market chains and other large and toes from the mainland. The com- Mahi Pono is planting about small retailers and entrepreneurs pany has partnered with the Hawaii 400,000 citrus trees, including lem- to determine which crops are most Foodservice Alliance to distribute on, lime, and orange trees. Other needed in Hawaii’s grocery stores. crops as they come to harvest. crops slated for planting include An initiative called “Chef’s Corner” “Residents will soon start see- coffee and breadfruit trees. More hopes to supply needed ingredients ing locally grown potatoes in retail than 2,000 acres of pastureland for Hawaii’s vibrant dining scene. H AWA IIF OOD . C O M | 19
“We are open to working with is still young enough and nimble equipment and infrastructure. In- consumers. If restaurants and gro- enough that they are able and will- vestments in job creation have re- cery stores want something specific, ing to work with the community to sulted in 130 full-time employees we are willing to work with them,” fulfill existing needs. and 20 part-time jobs for Maui said Watts, who explained that the With that in mind, Mahi Pono has residents, all working to grow company holds local food security made significant land investments, food on Maui, for Maui. as one of its values. The company as well as capital expenditures on Mahi Pono is leasing 2-, 5-, and ALL IMAGES COURTESY MAHI PONO 2 0 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
PPU near the airport. Armstrong ronment using their knowledge of Produce will serve as PlantLab’s plant physiology and technology to distribution partner, capitalizing on optimize all growing conditions. their already established infrastruc- PlantLab doesn’t modify the plants ture and relationships with buyers. themselves. Instead, they’ve created “When we talk about the prod- an ideal growing environment by ucts that are going to be grown, we controlling variables like humidity, want to target the kinds of crops airflow, light, root temperature and that are 100% imported. Sustain- irrigation. They do so using state- ability means that you have to di- of-the-art technology, a multi-lay- minish what you’re importing,” said ered growing system, mathematical Armstrong’s Director of Marketing modeling, and top-notch insights Tisha Uyehara. into plant physiology. The partnership will by growing PlantLab’s “precision agricul- different varieties of lettuce. While ture” uses resources in a highly grown here, Uyehara noted lettuce targeted way, so that foods can be isn’t grown with enough volume to grown closer to consumers using produce economies of scale to sup- less than 10 percent of traditional ply supermarkets and restaurants. water usage. PlantLabs need less “It’ll produce fresher produce, than half the quantity of fertilizers grown in Hawaii. It’s cost-effective used in conventional farming and 10-acre parcels of land as a part of from an energy use point of view, operate without the use of herbi- its 200-acre community farm ini- and solar power may help to offset cides or pesticides. tiative designed to provide land to some of the costs of electricity.” De- The result is a reduction in mar- Maui residents looking to engage in pending on the commodity being keting and transportation waste. farming on Maui. The cost is $150 grown, the growing cycle is gener- Given Hawaii’s distance from the per acre per year. ally between two and three weeks, mainland, where much of our food Applicants for the communi- Uyehara told us. is grown, transportation not only ty farming initiative are required Plants respond well to red and blue adds to our food costs but also im- to submit a farm plan which is re- LED lights so that the PPUs can be pacts our environment. viewed by a Community Farm Ad- operational even in the dark of night. “The fact that it’s going to be pro- visory Board. While these plans are PlantLab’s Plant Paradise® can op- duced here, it’s a local product, and evaluated, Mahi Pono is not dictat- erate 24/7, resulting in a year-round can be at the customer the day af- ing what successful applicants can growing, no matter where their plant ter it’s harvested is a huge benefit,” grow. They’re looking to support production units are located. said Uyehara. “For us, it’s all about stable, sustainable farm plans. The prototype of PlantLab‘s first having consistent supplier products plant production unit was complet- because our customers depend on Armstrong ed in 2006. The goal was to devel- it. It has to be of good quality and op an ideal, closed growing envi- done consistently.” Produce Partners with PlantLab HFIA member Armstrong Pro- duce has partnered with a Neth- erlands-based company called PHOTO COURTESY PLANT LAB PlantLab. Using their cutting-edge technology, PlantLab has devel- oped an indoor, controlled growing environment that maximizes re- sources like water and light to grow and harvest crops year-round in an indoor lab. PlantLab’s plant pro- duction unit (or PPU) is known as a Plant Paradise®. The partnership is developing a 60,000 square-foot, multi-layered H AWA IIF OOD . C O M | 21
“TRIPLE CROWN” ANNUAL SOCIAL A SOLD-OUT SUCCESS PHOTOS BY ANTHONY CONSILLIO This year’s HFIA annual social at the Honolulu Country Club was a huge success thanks to our dedicated planning committee and sponsors. Mahalo to the the many members who turned out for the Triple Crown-themed evening of horseplay, heavy pupus, games, prizes and cocktails at the Honolulu Country Club. MAHALO to our generous event sponsors for making this evening of fun possible! 1 2 3 4 5 1. Joe Carter with the Carter’s 3. Stanton Saiki, Guy Tanioka, 4. Alexis Chapman, Toby 5. Mike Minogue, Randi Tsushima, Triple Crown winners, Tracy Jamie Reich, Naomi Azama, Taniguchi, and Lauren Zirbel Mike Nakamura, Ed Chun and Ide, and Paul Kosasa Kennedy Smythe, Kathy Teresa Lieu. Back: Nick Lapenia, Samantha Haas, Domingo, Chris Clark, Darin 2. Chris Clark, Mike Minogue, Shaun Strand, and Mike Nita Shigeta, Jen Moku, Nelson Darin Shigeta, Kyle Shelly, Moku III, Cyd Miyashiro and and Nick Domingo Randy Lu 2 2 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
8 9 10 11 12 13 14 15 16 17 8. Denise Sasaki, Mike Kaya 11. Len Isotoff, Chad Dias, 14. June Namba, Patti Day 16. George and Lucy Branco, Guy and Kellie Sasaki-Rapoza and Paul McCully and Maggie Li Tanioka, Jamie Reich and Stanton Saiki 9. Bonnie Tam-Hoy and 12. Gary and Sheryl Villanueva, 15. Jana Focht and Jill Chiang Laura Schulman Liz and Brian Christensen, Mike Ohashi, Shellie Hayashi, 17. Mike Ohashi, Shellie Hayashi, Carl Oshiro Bryson Kihara, and Bryson Kihara and Jason Arakaki 10. Eloree Amian and Jason Arakaki Julie Macalma 13. Jill Chiang, Chad Cohen, Caren Yamauchi and Miyuki 1 6 . H AWA IIF OOD . C OM | 23 Hirano-Hollingworth
1 2 3 5 4 8 6 7 10 9 1. Bonnie Amemiya, Joy Oda, 3. Larry Ishii, Wendy Fujio, Joe 5. Mike Ohashi, Shellie Hayashi, 8. Chris Loretero and Matt Case and Peggy Abella Carter and Laren Zirbel Eloree Bryson Kihara, and Jason Arakaki with their raffle prizes Amian, Julie Macalma, and 2. Kevin Wong, Brendan Yamada, Jacky Uesato 6. Jeff Cagaoan with his raffle prize 9. Carriann Ho, Kim Young, Tiana Sherilyn Oliver, Rob Kline, and Quiocho, and Katy Okuyama Eric Nonaka 4. Carl Oshiro 7. Reid Morihara, SeKwon Kim, and Don Hirota 10. Joni Marcello, Alan Nakamura, Elaine Miyagi and Denise Sasaki 2 4 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
A Huge Mahalo to Our Generous 11 Event Sponsors! 12 13 Presenting Sponsor American Savings Bank Title Sponsor Coca-Cola Bottling of Hawaii Turf Club Sponsors: ABC Stores Anheuser-Busch Sales of Hawaii C&S Wholesale Grocers 14 Hawaii Gas Honolulu Star Advertiser KTA Super Stores KYD, Inc. Matson Meadow Gold Dairies Okimoto Corp. Pepsi Beverages Co. 15 21 Pint Size Hawaii 11. Teri Luna, Dwayne Fujitani, 13. Heather and Dan Pence Rainbow Sales & Marketing and Kacie Cohen; 14. Sunny Tran and Glenn Muranaka Southern Wine & Spirits of Hawaii 12. Yan and Patti-Jo Day heading down the home stretch 15. Ron Nagasawa and Anne Lee UHA Health Insurance H AWA IIF OOD . C O M | 25
PHOTO: MARTIN BELAM/FLICKR BILL 40 HAS What This Means For Businesses PASSED As of January 1, 2021, no plastic straws and utensils; only non-plastic straws and utensils on request; only What Does the Plastic Ban Mean handle-less plastic bags can be used. for Your Business? Plastic utensils and straws will no longer be allowed for sale or distri- bution by food vendors to custom- BY ALEXIS CHAPMAN ers for prepared food. The list in- cludes plastic straws, forks, knives, I spoons, sporks, chopsticks, stirrers, n December, Honolulu Council sure, plastic is defined as “any material and baran. Plastic straws may be passed Bill 40, one of the most made of fossil fuel-derived or petro- provided upon request to custom- aggressive plastic foodware chemical polymeric compounds and ers who need them for a medical or bans in the country, a version additives that can be shaped by flow.” physical reason. Customers do not that was released one day be- This definition does not include need to explain or demonstrate any fore the final hearing. While this was 100% plant-based or bioplastics, such medical or physical reason for re- not the most favorable outcome for as PLA containers or utensils made of questing a plastic straw. Hospitals, our members, HFIA efforts and those any non-petroleum material. nursing homes, and other health of our coalition partners ensured that These latter items will still be allow- care facilities are exempt from the some of the most damaging aspects able once the bill takes effect. The bill prohibition on plastic straws. were omitted from the final bill and does not mandate that plastic alterna- Non-plastic utensils and straws that the bill’s implementation would tives be ASTM certified compostable; can only be given to customers on span two years. Bill 40 goes into effect it only requires that they not be made request or made available in self-ser- on January 1, 2021, though some as- from petroleum-based plastic. Com- vice areas or dispensers. Staff can no pects of its implementation take effect postable plastic bags are banned ex- longer automatically include or pro- on January 1, 2022. plicitly as of January 1, 2020, by a sep- vide them. Plastic straws and uten- For the items impacted by this mea- arate existing statute. sils that come pre-attached to prod- 2 6 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
ucts like juice boxes or prepackaged salads are exempt. not include disposable plastic con- diment packets; food-related bags or Plastic Ban There are also changes to the types wrappers, including, but not limited Exemptions of plastic bags allowed after January to, musubi wraps, plastic film, poi 1, 2021. Plastic bags will no longer bags, chip bags, cracker and cookie Some important exemptions are listed be allowed to transport prepared wrappers, bread bags, meal kits, or in the definitions of the bill. Including: food or beverages. Plastic bags used ice bags; beverage-related bottles by customers in-store to package or cartons; non-plastic cups that Packaging for raw meat, raw poultry, loose items can no longer have han- contain a polyethylene or plastic raw seafood, unprepared produce and dles. Only bags without handles will coating; packaging for unprepared uncooked eggs. be allowed for loose items like bak- food; and packaging for wholesale ery goods, fruits, vegetables, nuts, distribution of prepared food, baked Packaging for prepackaged food. Pre- ground coffee, grains, candies, or goods or dairy products. packaged food means prepared food small hardware items. This ban does not apply to packag- that is sealed, contained, or wrapped Plastic bags used to contain or ing of prepackaged food or shelf-sta- in a manner to protect and prevent the wrap frozen foods, meat or fish, flow- ble food. The bill defines prepackaged prepared food from having any direct ers or potted plants, or other items food as prepared food that is sealed, human contact, prior to being provided to contain dampness must also be contained, or wrapped in a manner for sale by a food vendor to a customer, handle-free after the implementation to protect and prevent the prepared including, but not limited to, bentos, date. Additionally, pharmacists will food from having any direct human kimchi, seaweed salad, takuan, tofu, not be allowed to provide plastic bags contact, prior to being provided for pre-made sandwiches, desserts, pies, for medications. The ban includes sale by a food vendor to a customer, noodles, salads, parfaits, and drinks. door hanger bags. Hotels will no lon- including, but not limited to, bentos, ger be permitted to offer plastic bags kimchi, seaweed salad, takuan, tofu, Disposable plastic condiment packets; to guests for wet or dirty clothes.. pre-made sandwiches, desserts, pies, food-related bags or wrappers, includ- noodles, salads, parfaits, and drinks. ing, but not limited to, musubi wraps, As of January 1, 2022, no more plas- It defines shelf-stable as prepared plastic film, poi bags, chip bags, cracker tic or polystyrene plates, clamshells, and food that can be safely stored at room and cookie wrappers, bread bags, meal cups for prepared food. Plastic food- temperature and does not require kits, or ice bags; beverage-related bot- ware, including all types of polystyrene refrigeration, freezing, or heating for tles or cartons. foodware, will no longer be allowed for food safety purposes, prior to pur- prepared food. chase by a customer. Non-plastic cups that contain a polyeth- Businesses may no longer sell dis- ylene or plastic coating. “Prepared food” refers to any food posable plastic straws, plastic uten- or beverages that are prepared for sils, or plastic or polystyrene food- Packaging for unprepared food. consumption on or off a food ven- ware to customers. Companies that dor’s premises. Preparation in- sell packaging wholesale to food Packaging for wholesale distribution cludes cooking, chopping, peeling, vendors may continue to sell pack- of prepared food, baked goods or dairy slicing, mixing, brewing, freezing, aging for raw meat, raw poultry, raw products. squeezing, or otherwise processing seafood, unprepared produce and at premises owned, leased, or other- uncooked eggs; packaging for pre- wise controlled by the food vendor. packaged food, or shelf-stable food; cause significant hardship to hard- However, the term does not in- and packaging for food vendors who ship to their business. Exemptions clude raw meat, raw poultry, raw have been granted an exemption. will last for two years and can be seafood, unprepared produce and Packaging for catered food. Ca- renewed for two years, while the ex- uncooked eggs. Prepared food in- tered food means food provided in emption is in effect, efforts must be cludes restaurant-style food and bulk quantity amounts or multiple made to come into compliance. The beverages that are packaged after servings with the intent for later department may grant an “industry being ordered and ready to be con- consumption, or the service of pre- exemption” from compliance with sumed without further preparation. pared food at a site or event venue. certain restrictions upon application It is our understanding that poke The Department of Environmen- and the provision of sufficient evi- will not be exempted. Any poke tal Services (ENV) will be enforcing dence that compliance would cause that contains any added ingredients the mandate and may also grant ex- hardship to the foodservice industry. or that is cooked is considered pre- emptions. Food vendors seeking an HFIA will be working to obtain pared food. exemption will have to apply to the information from ENV about the Foodware refers to hot and cold ENV. They must provide sufficient rules as soon as possible. We also beverage cups, cup lids, plates, evidence that there are no reason- encourage members to reach out to bowls, bowl lids, clamshells, trays, able alternatives available to the the ENV with specific questions by or other hinged or lidded containers food vendor to comply, or that com- calling (808) 768-3486 and through that contain plastic. The term does pliance with the restriction would their website Honolulu.gov/env. H AWA IIF OOD . C O M | 27
New Flavored ing combustible to- bacco while ensur- Vaping Laws ing these products don’t provide an on-ramp to nicotine BY ALEXIS CHAPMAN addiction for our youth.” Over the past few months, there have The Federal gov- been some significant changes to to- ernment is also at- bacco regulation at the federal level. tempting to address PHOTO: ANDREW S/FLICKR On January 2, 2020, the FDA issued youth vaping by an “enforcement policy on unautho- raising the tobac- rized flavored cartridge-based e-cig- co purchase age arettes.” nationwide. New The FDA does not authorize fla- federal legislation vored cartridge-based electronic signed in Decem- nicotine delivery systems. The new ber 2019, changed enforcement policy is effectively a the minimum age to ban on the manufacture, distribu- 2019 National Youth Tobacco Survey purchase tobacco products from 18 tion, and sale of these products. The results showed that young people to 21, aligning with Hawaii’s tobac- new policy, which took effect on are attracted to flavored products. co purchase age, which has been 21 February 6, 2020, does not apply to Health and Human Services Di- since 2017. menthol or tobacco products. Com- rector Alex Azar said, “By prioritiz- Several bills at the Hawaii State panies not in compliance after that ing enforcement against the prod- Legislature this year would further date may face FDA enforcement ac- ucts that are most widely used by restrict the sale of various tobacco tions. children, our action today seeks to products and electronic smoking Per the FDA, the new policy in- strike the right public health bal- products. HFIA will continue to pro- tends to address the youth vaping ance by maintaining e-cigarettes as vide updated information on these epidemic sweeping the country. The a potential off-ramp for adults us- measures in our Weekly Update. INTRODUCING OUR NEW SPECIALLY CRAFTED BEVERAGES MOVING HAWAI‘I EVERY DAY FREQUENT, AFFORDABLE INTER-ISLAND SERVICE SINCE 1900 www.YoungBrothersHawaii.com FIND THESE REFRESHING BEVERAGES AT A STORE NEAR YOU Photo: Kalohi Channel by William Renio 2 8 | H AWAI I RETAI L G R OC E R | SPR I N G 2020
MEMBER NEWS Pukalani Superette Big Island Coffee Roasters Affectionately known locally as “Puk Sup,” The Sundance Film Festival, the largest this upcountry Maui shop is supporting independent film festival in the United States, art in public spaces. serves up Hawaii Island coffee. As the Pukalani Superette in Makawao, Maui, cele- Held every winter in Utah, the Sundance Film Festival is brates its 65th year in business, they have joined the ‘art the ultimate gathering of original storytellers and audi- in public spaces’ movement sweeping across communi- ences seeking new voices and fresh perspectives. From ties in Hawaii. January 24-26, 2020, Big Island Coffee Roasters served “We provided space on our storefront for a local art- their Hawaiian coffee at The Retreat, the Eco-Luxury ist to paint a mural,” said Megan Nakashima, the store’s themed VIP lounge set up for celebrity, filmmakers, VIP brand manager and director of community outreach. guests and media. The mural reflects Pukalani’s upcountry, paniolo roots. “It is our pleasure to serve our 100% Hawaiian specialty “Our employees affectionately named them “Puk” and coffees at the Sundance Film Festival. We shared Hawaiian “Sup,” she explained. The mural was created around the coffees from all four corners of the Big Island, both modern time of the Makawao Rodeo, a Maui event the North and traditional: Kona Geisha, Natural Process Ka’u, Bar- Shore store sponsored for the first time this year. rel Aged Puna, Hamakua, and Kona Peaberry, along with The artist produced the work on plywood. The shop Espresso Bites. We are very honored to be a part of such plans to make this an annual project, refreshing the art- an exciting event filled with creative energy whilst support- work each year and donating the older paintings to a ing a great cause to raise money for children”, said Kelleigh charity auction of the artist’s choice. Stewart, Co-Founder of Big Island Coffee Roasters. In homage to an underused and recently removed Ha- The lounge also served as a fundraiser for Project Green, waiian Telcom payphone outside their store, another lo- a non-profit organization that supports underserved chil- cal artist recreated the phone in perfect detail, bringing dren and teenagers, helping those in foster care to attend up a swell of memories on social from the local commu- summer camp. nity about the painting’s original subject. “There is a large thirst for art in public spaces here, and these two projects have helped us participate in that movement, as well as support up-and-coming artists in a way that we feel is unique to our store,” said Nakashima, referencing the SMALL TOWN * BIG ART project tak- PHOTO: TRAVIS WISE/FLICKR ing place across Wailuku. Puk Sup recently provided their staffers with at least six months of service with exclusive, branded hydro flasks not available for sale to the public. The gift hon- ors each employee’s service and acts on the company’s commitment to producing less waste. H AWA IIF OOD . C O M | 29
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