STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association

Page created by Terrance Le
 
CONTINUE READING
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
Alabama                             GROCERY FRAUD
                                                    PAGE 30

                                                    THE STRUGGLE OF
                                                    COURAGEOUS
                                                    LEADERSHIP
                                                    PAGE 36
2019, ISSUE 2         ALABAMA GROCERS ASSOCIATION

      STAR GAZING
      AROUND GROCERY
                                                              page 24
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
proudly supports
Alabama Grocers Association
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
CONTENTS | ISSUE 2

FEATURES

                                                                                          COLUMNS
                                                                                          President’s Message
                                                                                          Happy Spring!. . . . . . . . . . . . . . . . . . . . . . . . 6

 26                                                                                       Chairman’s Message
                                                                                          Great Things to Come in 2019. . . . . . . . . . . 9
Stargazing Around Grocery: Inmar Insights into 2019
From increased automation to greater shopper autonomy, 2019 will see accelerating         Government Relations
change across virtually every facet of the grocery industry.                              Legislature Returns After Passing
                                                                                          Special Gas Tax. . . . . . . . . . . . . . . . . . . . . . 11

                                                                                          Inside the Beltway
                                                                                          Now Is The Time to Become a Grocery
                                                                                          Industry Advocate. . . . . . . . . . . . . . . . . . . . 20

 30                                                                                       Washington Report

 36
                                                                                          Five Trends to Watch in 2019. . . . . . . . . . . 21

Grocery Fraud: Or How A Stapler Can Rob You Blind
                                                                                          Viewpoint
What’s your battle plan against the forces of grocery fraud? Do you have adequate intel
                                                                                          Bread & Metaphors. . . . . . . . . . . . . . . . . . . 22
and situational awareness to win the war?

                                                                                          Mommy Blogger
                                                                                          The Little Things That Keep
                                                                                          Moms Coming Back. . . . . . . . . . . . . . . . . . 42

                                                                                          DEPARTMENTS
 36                                                                                       AGA News. . . . . . . . . . . . . . . . . . . . . . . . . . 14
                                                                                          Outside the Box. . . . . . . . . . . . . . . . . . . . . 24
The Struggle of Courageous Leadership
As a leader, an essential (and often unspoken) part of your job is continuing to
“hold space” for the positive opportunities ahead, even when the circumstances
are frightening.

 32
 14
                                                                                                                             AL A BA M A GRO CER |         3
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
AGA | BOARD OF DIRECTORS

                executive   Chairman of the Board             Immediate Past Chairman         Treasurer                       Sergeant-at-Arms
                            Frank D'A mico, III               Peter "Greg" Gregerson          Jay Mitchell                    James Cochran
               committee    BTC Wholesale                     Gregerson's Foods               Mitchell Grocery Corporation    Buffalo Rock Pepsi Cola
                                                                                                                              Company
                            Vice Chairman                     Past Chairman                   Secretary
                            Johnny Collins                    Jack Howell                     Bo Taylor
                            Dean Foods                        Forster & Howell                Coca-Cola Bottling Company
                                                                                              United, Inc.

         vice presidents    David Bullard                     Bob Crawford                    Bill Davis                      Harold Garrett
                            Piggly Wiggly Alabama             United Johnson Brothers of      A&R Super Markets               Gateway Foods
                            Distributing Company              Alabama

                            Wade Payne
                            Food Giant

               directors    Naseem Ajlouny                    Mike Coggins                    Kris Jonczyk                    Austin Peake
                            Buy Lo Quality Foods              Sherwood Food Distributors      Publix Super Markets, Inc.      Peake & Associates

                            Stan Alexander                    Chris Crosby                    Kenneth Jones                   Eddy Quinley
                            Associated Grocers of the South   Golden Flake/Utz Snack          Rouses Enterprises              Advantage Solutions

                            Danny Babb                        Larry Garrett                   Melanie LeBlanc                 Brian Smith
                            Associated Wholesale Grocers      Vietti Foods                    Anheuser-Busch                  Community Coffee

                            Jack Carlile                      Kevin Gillespie                 Curtis Lyons, Jr.               John Wilson
                            SuperValu                         Kelley Foods                    Flowers Bakeries                Super Foods Supermarkets

                            Kirk Clark                        Julie Anderson Goolsby          Mike Oakley                     Jimmy Wright
                            Mitchell Grocery Corporation      The Hershey Company             Alabama Power                   Wright's Markets

       ex-officio board     Mike Fuller                       R. Kevin Miller                 Mac Otts                        James Scott
              members       Fuller's Supermarket              "Official Board Photographer"   Autry Greer & Sons              Lighting Specialists
                                                              Acosta Sales & Marketing

     Board of Trustees      Chairman                          Vice Chairman                   President                      Secretary/Treasurer
                            Bob Crawford                      Phillip Davis                   Ellie Smotherman Taylor        Paul Burnett
                            United Johnson Brothers           A&R Supermarkets                Alabama Grocers Association    Byars | Wright
                            of Alabama

                            Jeff Bolas                        Gerry D'A lessandro             Bubba Lindley                  Cliff Thomas
                            Bunzl Distribution                Fourth Avenue Supermarkets      EdLinco                        Campbell Snacks
                            Dana Bowen                        Jai Freeman                     Rob Renfroe                    Chris Woods
                            Frito-Lay                         Freeman Foods                   Renfroe Foods                  Retail Data Systems
                            Tim Cano                          Ken Hestley                     Don Richardson
                            Post Holdings                     Sell Ethics                     Coca-Cola Bottling Company
                                                                                              United, Inc.

4 | AL AB AM A G R OC E R
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
PRESIDENT’S MESSAGE

                                                  Happy Spring!

                             EL L I E S M OT H ER M A N TAY LO R
                             PR E S IDE N T
                             ALABAMA GR OCER S AS S OCIATIO N

    we are moving full steam ahead as we head into                                              privatization. Please check your Market
                                                                                                Minute each week to see the full list and
    spring!                                                                                     call our Association office if you have any
                                                                                                questions or concerns.
    March began with a very successful Buy        This is such an important statistic to
                                                                                                On Monday, March 18, I had the privilege
    Alabama’s Best Press Conference on the        communicate to legislators as we begin
                                                                                                of speaking on behalf of the AGA in
    Capitol Lawn in Montgomery.                   the 2019 Legislative Session.
                                                                                                a Press Conference announcing the
    Over 500 were in attendance with              Speaking of the Legislative Session, it has   beginning of eWIC in our state. This
    Governor Kay Ivey and Agriculture             been a world wind. The first two weeks        has been a decade long process with the
    Commissioner Rick Pate as our featured        were consumed with the Rebuild Alabama        first meetings literally beginning in 2009
    speakers. At least seven media outlets were   Gas Tax called in a special session by        discussing whether our state would be
    present, and we were extremely pleased        Governor Kay Ivey.                            online or offline.
    with our outreach to help consumers           Only 26 out of the 140 legislators voted      Each month more than 120,000 Alabama
    identify products headquartered,              against the 10-cent gas tax increase that     participants at nutritional risk receive
    produced, or manufactured in our state.       will raise an additional $300 million         WIC benefits and there are currently
    Alabama food product sales have a $2          per year and it only took the minimum         638 WIC authorized stores. In 2018, $97
    billion impact on Alabama’s economy,          required 5 days.                              million in food instruments were issued at
    tax base and along with the food service      The first 6 cents of the tax will take the    stores statewide.
    industries employ one out of every four       gas tax from 18 cents to 24 cents a gallon    Press Conference speakers included
    Alabamians.                                   starting on September 1 and then add 2        Dr. Scott Harris, State Health Officer,
    The food retail industry in Alabama           cents a year for the next 2 years.            Alabama Department of Public Health;
    provides over 70,000 jobs with over $2.2      The regular session resumed on Tuesday,       Amanda Martin, Alabama WIC Program
    billion in annual wages paid. Grocers pay     March 19 and so far, we are following         Director; Stacey Neumann, WIC Vendor
    over $1.2 billion in state taxes and have     bills on everything from our Sunday           Management Director and eWIC Project
    a total economic impact on the state’s        sales initiative to service animals to        Manager and myself.
    economy of over $12 billion dollars.          SNAP requirement restrictions and             AGA was proud to partner with the
                                                                                                Alabama Department of Public Health,

       “As always, my door is always open.                                                      WIC Division on the planning and
                                                                                                implementation of eWIC in our state. For

       please don't hesitate to give me a call                                                  retailers and WIC participants, e-WIC
                                                                                                will be a tremendous improvement to

       with any questions or concerns.”                                                         the overall shopping experience with

6 | AL AB AM A G R OC E R
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
smoother transactions at the register,           on our normal benefit schedule of the
streamlining of processing, and reduced          4th through the 23rd. I think retailers
check out times.                                 and wholesalers across the state can now,
The rollouts will continue throughout the        more than ever, appreciate the work our
state in the coming months and finalize          Association did on SNAP expansion and
in August 2019 with the Southeastern,            what that truly means in the marketplace.
Mobile and Southwestern Districts.               As always, my door is always open. Please
Last, but certainly not least, we will finally   don’t hesitate to give me a call with any
be recovering from the government                questions or concerns.
shutdown regarding SNAP. As you all              Happy Spring!
know, March benefits were distributed
on March 4th, and April benefits will be
given as normal April 4th through 13th.
Those normally distributed April 14th
though 23rd will move their benefits to
April 13th. May will finally get us back

                                    201 9 A s so c iat io n Dates
                                                          • J uly 29-31, 2019 –
                                       A l abam a G r o c er s Asso c ia tio n Annua l C o nv e ntio n -
                                              S ande st i n Go lf & Be a c h R e so r t, D e stin

                                                         • Oc tob er 23, 2019 –
                                            A l abam a' s Fo o d Ind ustr y Fine st Lunc he o n,
                                                        T h e C lub , Bir m ingha m

                                                           • Oc tob er 24, 2019 –
                                  A l abam a G r o c e r s Ed uc a tio n Fo und a tio n Fa ll Go lf O uting -

                                                                                                                AL A BA M A GRO CER |   7
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
REAL COFFEE.
REAL TEA.
 GUARANTEED GREAT.

Available at your Alabama grocery.
                                     reddiamond.com
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
CHAIRMAN'S MESSAGE

                       Great things to Come in 2019

                          F R A N K D'A M I CO, I I I
                          BTC WHOLES ALE DIS T R IBUTOR S
                          AGA CHAIR MAN OF THE BOAR D

                                                                                               Association Office. We need all types of
It's hard to believe we're already closing the books                                           items this year and with the full support
on the first quarter of the year, yet here we are.                                             of the Association we will be able to raise
                                                                                               more money for the Foundation and
It is the time of year for the weather to         from vendors and enjoy top name              scholarships.
start warming up, spring vacations to             speakers and entertainers.                   The Board of Trustees is also in the
start and for your Association that means         You can get involved by exhibiting,          process of reworking the Tuition
busy season is in full swing.                     advertising in the convention annual,        Reimbursement Program to roll out to
There are so many great things to tell you        sponsoring an event and/or attending the     the Membership. This Program is for
about, Ellie is going to tell you about the       convention itself. If the AGA Convention     employees of AGA companies that would
exciting things we have already done like         is not on your calendar, it should be.       like to take some additional courses to
the Buy Alabama’s Best Press Conference,          Convention is July 29-31 at Sandestin Golf   help them grow their grocery careers. You
eWIC Pilot and SNAP. The Association              & Beach Resort.                              could use this reimbursement for classes
lobbyist, Patrick McWhorter, is going to          For those of you who love Sandestin and      in Microsoft, Finance, Management,
catch you up on the Legislative Session in        want to spend a few extra days, your         Marketing, or Retail Management Classes.
this magazine.                                    Association Office negotiated a deal with    Employees are eligible to receive up
I would like to focus on the Association's        Sandestin that if you stay 6 nights you      to $200 of tuition reimbursement per
largest fundraiser, the Annual Convention         get 25% off the AGA rates. Now you don’t     course. Each employee may receive
and some of the great things we are               have an excuse to stay an extra day with     up to $1,000 annually. Classes may be
working on with the Alabama Grocers               your family!                                 taken through seminars, workshops,
Board of Trustees.                                As part of our Annual Convention, we         community colleges, accredited colleges
                                                  will again hold our Silent Auction. The      and universities, or online programs. We
The AGA Convention is well under way
                                                  Alabama Grocers Education Foundation         hope to mail new posters out to members
and I cannot stress enough how important
                                                  Board of Trustees have been coming up        later this year.
it is for you to get involved in this event. It
is the only event that retailers, wholesalers     with some amazing ideas for 2019 but we      We are definitely staying busy at the
and manufacturers from all over the state         need your help to make them successful.      Association and hope you will find time to
come together to network, share ideas,            If you have items that can help with this    join us in Sandestin!
learn about new and upcoming products             event, please contact Jessica Brown at the   Best Regards,

  "We are definitely staying busy at the
  Association."
                                                                                                                        AL A BA M A GRO CER |   9
STAR GAZING AROUND GROCERY - Alabama GROCERY FRAUD - Alabama Grocers Association
United - Johnson Brothers of Alabama
Proudly Supporting The Alabama Grocers Association
                     For Over
                     15 Years

            SERVING ALL 67 COUNTIES
GOVERNMENT RELATIONS

                            Legislature Returns
                         After Passing Gasoline Tax

                        PAT R I C K M C W H O R T ER
                        LEGIS LAT IV E R EPR E S E N TAT IV E
                        T HE MCWHOR T E R GR OUP

                                                                                                  expanding Alabama’s award winning pre-K
The Legislature returned on march 19 to resume the                                                program, an increase for higher education,

regular session after completing Governor Ivey's                                                  increased funding for Corrections, Law
                                                                                                  Enforcement and Mental Health. House
special session, passing the gasoline tax.                                                        Ways & Means-General Fund Committee
                                                                                                  Chair Steve Clouse expects to bring his
The two houses met three legislative days           Alabama Citizens Action Project (the old      budget before the committee soon after they
to try to make up some of the time lost             Temperance League) on Wednesday, April        return next week, with few changes.
between the special session and this week’s         3rd, by the House Economic Development
                                                                                                  The Senate Finance & Tax-Education Fund
Spring Break (March 25-29). Members                 & Tourism Committee. Chaired by Rep.
                                                                                                  Committee members have some heartburn
returned to Montgomery on April 2 to begin          Becky Nordgren of Gadsden, Rep. Ron
                                                                                                  over the Governor’s plan to take about
the fifth legislative day. Session must be          Johnson of Sylacauga is Vice Chair, and
                                                                                                  $35 million from the Education budget to
completed by June 17.                               other members are: Rep. Berry Forte of
                                                                                                  cover the Children’s Health Insurance Plan
                                                    Eufaula, Rep. Chip Brown of Mobile, Rep.
Rep. Reed Ingram of Montgomery County                                                             (CHIP).
                                                    Corey Harbison of Cullman, Rep. Yolanda
introduced HB 186, and Sen. Tom Whatley                                                           CHIP has been funded in the past from the
                                                    Hollis of Birmingham, Rep. Gil Isbell of
of Lee County (SB 96) on behalf of the                                                            General Fund, but the Governor pledged
                                                    Gadsden, Rep. Neil Rafferty of Birmingham,
Alabama Grocers Association. These bills                                                          to end past practices of taking money from
                                                    Rep. Ginny Shaver of Leesburn, Rep. Andy
propose to remove the requirement in state                                                        the road fund to cover expenses in the
                                                    Whitt of Harvest, Rep. Richie Whorton
law that cities and counties spend money                                                          General Fund. Her Finance Director said
                                                    of Scottsboro, and Rep. Randy Wood of
advertising local legislation to allow them                                                       they believe that healthy kids make better
                                                    Anniston.
to implement the sale of alcoholic beverages                                                      learners, so they want Education to cover
seven days a week.                                  As is required by the state’s constitution,
                                                                                                  those costs.
                                                    Governor Ivey presented her proposed
This issue has become critically important                                                        Sen. Jim McClendon of Springville also
                                                    budgets for the coming fiscal year. The
recently with the recognition of competitive                                                      introduced a constitutional amendment (SB
                                                    economy has been good to both budgets,
pressures being applied to many AGA                                                               130) to allow voters to decide whether to
                                                    and the General Fund has been further
members who are located in cities that for                                                        have a state lottery. Pressure has increased
                                                    bolstered by a portion of the tax generated
one reason or another cannot compete                                                              since Mississippi has moved toward a
                                                    from online sales.
with nearby cities who are allowed to sell                                                        lottery, meaning that all surrounding states
all week. HB 186 is scheduled for a public          The budgets include pay raises of 2%
                                                                                                  will have one soon.
hearing, called by Rev. Joe Godfrey of the          for state workers and 4% for teachers,
                                                                                                  But McClendon’s SB 116, which would

  “AGA endorsed and strongly supported                                                            require the money be split between the
                                                                                                  Education and General Fund budgets if

  Governor ivey in last year's election. ”                                                        passed, has some controversy surrounding

                                                                                                                           Continued on page 12 ▶

                                                                                                                           AL A BA M A GRO CER |    11
GOVERNMENT RELATIONS

            Continued from page 11 ▶
             it. Our primary concern for Grocers is that                             year. Some have suggested legalizing sports          license. Now, the effort is being made to
             we receive a proper commission for selling                              betting as a way to pay for the state’s cost.        impose $2.5 million in new fees (taxes!) on
             the lottery tickets.                                                    HB 41 by Rep. Shane Stringer of Mobile               retailers
             Conversations are continuing between                                    would impose a new set of restrictions on            As always, please don’t hesitate to call Pat
             leadership and Democrats over the                                       the use of alternative nicotine products and         McWhorter, Legislative Consultant at
             possibility of expanding Medicaid.                                      the retailers who sell them. But our biggest         334.221.0220 if you have questions.
             Concerns are still high over how to pay for                             concern in this bill is that it would take the
             the matching dollars needed. Alabama is                                 license fee for selling tobacco products from
             one of 14 states not to expand Medicaid                                 $0 to $300 per year.
             since the Affordable Care Act passed                                    When the license was created, AGA
             federally.                                                              worked closely with state officials who were
             It would add some 340,000 more                                          concerned about the potential loss of federal
             Alabamians to the Medicaid roles, and cost                              funds if inspectors did not have a complete
             the state approximately $168 million next                               list of retailers selling tobacco. It was agreed
                                                                                     that no fee would be charged for this new

                           POTENTIAL                                                                                                    YOSEMITE
   MOS SADAMS.COM/RETAIL

                                                                                                                                        NATIONAL PARK ,
                                                                                                                                        CA

                           RISES IN                                                                                                     6:50 AM
                                                                                                                                        PST

                           THE WEST
                           Here, the sun rises on endless opportunities. Our professionals are committed to
                           helping you grow your business and protect your prosperity with industry-tailored tax,
                           assurance, consulting, and wealth management services. Discover how Moss Adams
                           is helping grocery chains thrive.

                           RISE WITH THE WEST.

                           Assurance, tax, and consulting offered through Moss Adams LLP. Investment advisory services offered
                           through Moss Adams Wealth Advisors LLC. Investment banking offered through Moss Adams Capital LLC.

12 | AL AB AM A G R OC E R
Bringing to Market a Powerful Brand Portfolio
                                 for every customer taste!

                                                                    ®

Golden Flake Snack Foods, Inc.
One Golden Flake Drive
Birmingham, AL 35205
goldenflake.com

                                                                        AL A BA M A GRO CER |   13
AGA NEWS
            The A l ab ama Gro cers Ass o ci at ion w ishes to re cog nize its Di amond and Four St ar Sp ons ors for t heir
                                      generous supp or t of t he AGA Annu a l C onvent ion.

     Diamond Sponsors

    Four Star Sponsors

14 | AL AB AM A G R OC E R
www.alabamagrocers.org for more information

Sandestin Golf & Beach Resort
      July 29 - 31, 2019
AGA NEWS

     2 019 B U Y A L A BA M A 'S BES T C AMPAIGN

     The Alabama Grocers Association, the                The Buy Alabama’s Best Campaign
     Alabama Department of Agriculture                   formed in 2006 when four Alabama
     and Industries and the Alabama Food                 companies, the Alabama Grocers
     Manufacturers and Producers Association             Association and the Alabama Department
     held a media briefing for the Buy                   of Agriculture and Industries saw a need
     Alabama’s Best campaign on March 13.                to identify products that were made in
     The media briefing was held on the                  Alabama. Today Buy Alabama’s Best
     Alabama State Capitol Lawn. Speakers                has grown to over 50 companies that
     included Governor Kay Ivey, Agriculture             are either headquartered, produce,
     Commissioner Rick Pate and AGA                      manufacture or make their products in
     President Ellie Taylor.                             our state.
                                                         Alabama food manufacturers not only         Gover nor Ka y Ivey w ith P hilli p Davi s o f
                                                         sell products in Alabama and employ         A a nd R Super ma rkets.

                                                         Alabamians, but also purchase vast          local grocery store, they need to look
                                                         amounts of raw farm products to make        for the Buy Alabama’s Best logo under
                                                         goods, paper, boxes and packaging.          products to ensure they are buying
                                                         Alabama food product sales have a $2        the best products made right here in
                                                         billion impact on Alabama’s economy,        Alabama. A portion of the proceeds of
                                                         tax base and along with the food service    the sales of these products will benefit
                                                         industries, employ one out of every four    Children’s of Alabama. To date, the
                                                         Alabamians.                                 campaign’s efforts have raised over three
                                                         Retailers throughout Alabama will be        quarters of a million dollars.
                                                         supporting this campaign in their stores    The food retail industry in Alabama
                                                         with Alabama product displays, ads,         provides over 70,000 jobs with over $2.2
                                                         signage, special promotions and will sell   billion in annual wages paid. Grocers pay
                                                         Children’s of Alabama icons to support      over $1.2 billion in state taxes and have
                                                         our fight to find a cure for pediatric      a total economic impact on the state’s
     G o v. I ve y a d d re s s e s a t t e n d e e s.   cancer. When consumers shop in their        economy of over $12 billion dollars.

     T he s am p lin g lin e .

16 | AL AB AM A G R OC E R
AGA NEWS

                                                                Ellie Taylor, President, Alabama Grocers
                                                                Association. “Purchasing Alabama-made
                                                                products supports both our local economy
                                                                and Children’s of Alabama.”
                                                                “Children’s of Alabama is thankful
                                                                for the community partners and the
                                                                difference made through the Buy
                                                                Alabama’s Best Campaign,” said Emily
                                                                Hornak, Community Development and
                                                                Cause Marketing manager at Children’s
Haro l d G a r re t t , G a t e w a y F ood s an d Emily
                                                                of Alabama. “By supporting the local
Hor nak o f C h i l d re n ' s o f A lab ama.                   economy and purchasing products made             Ellie Ta ylor, P resident AGA; Lt . Go ver no r
                                                                                                                 W ill Ainsw orth; a nd P a trick M cW ho r t er, The
Also featured at the event is the                               in our state, Alabamians can feel good           McWhorter Group.

Wright2U Freshmobile delivery van                               about supporting both local businesses           Birmingham’s historic Southside with
owned by Jimmy Wright, Wright’s                                 and helping families with children facing        additional specialty services provided at
Market of Opelika. Jimmy Wright                                 cancer.”                                         Children’s South, Children’s on 3rd and
was awarded a $60,000 grant from the                            Since 1911, Children’s of Alabama has            in Huntsville and Montgomery. Primary
Alabama Department of Economic and                              provided specialized medical care for            care is provided at more than a dozen
Community Affairs through Healthy                               ill and injured children. Ranked among           medical offices in communities across
Food Financing. Over 1.8 million                                the best pediatric medical centers in the        central Alabama. Children’s of Alabama
Alabamians, including over half a million                       nation by US News & World Report,                is the only medical center in Alabama
children live in underserved areas in our                       Children’s provided care for youngsters          dedicated solely to the care and treatment
state. Grocers are working to be a part                         from every county in Alabama, 42 other           of children. It is a private, not-for-profit
of the solution to this problem with ideas                      states and 10 foreign countries last             medical center that serves as the primary
“outside the box” to find solutions to                          year, representing more than 653,000             site of the University of Alabama at
bring fresh, healthy perishable food to all                     outpatient visits and nearly 14,000              Birmingham (UAB) pediatric medicine,
citizens of Alabama in both urban and                           inpatient admissions. With more than 2           surgery, psychiatry, research and
rural areas.                                                    million square feet, it is the third largest     residency programs. More information is
                                                                pediatric medical facility in the U.S.           available at www.childrensal.org.
“We hope that people will look for the
Buy Alabama’s Best logo when they are                           Children’s offers inpatient and outpatient
shopping at their local grocery store,” said                    services across its Russell Campus on

                                                                                 Jimmy Wright of Wrights Ma rket show ing Gover nor Ka y Ivey and E l l i e
G o v. I ve y s a m p lin g s o m e J oh n s F amou s S law Dre ssin g .         Ta ylor, P resident of AGA the Wrights Mobile Ma rket.

                                                                                                                                               AL A BA M A GRO CER |    17
AGA NEWS

     2 019 B U Y A L A BA M A 'S BES T C AMPAIGN LUN C H E ON

                                                                                                                Rick P a te, Commissioner, AL Dept. Of AG ; E l l i e Tayl o r,
                                                                                                                P resident, AGA; Kris Jonczyk, P ublix Super Mar ket s , I nc.
     B o b Tay lo r, R e d D ia m o n d ; Don Wh ite , U tz GF ; S te v e O we ns, Zeigler; P hillip
     D avi s , A R ; D a n i e l Mo n t gome ry, Z e ilg e r; F ran k D' A mic o, III; Johnny Collins,
     D eans .

                                                                   Harold Ga rrett, Ga tew a y Foods; Jim Wa rd,             Terry Troup, P WADC; Ca rolyn Smi t h, R ed
                                                                   U tz Gold en Fla ke.                                      Dia mond; Ben Ra y, Millie Ra ys .

     D r. Fred e r i c k G o l d m a n , Ch ild re n ' s of
     A l abama .
                                                                   Disp lay Contest W inner.
                                                                                                                                     Don White, Utz Golde n Fl ake; Andy
                                                                                                                                     V irciglio, P iggly W iggl y o f Jeff er s o n
                                                                                                                                     County.

     Jay M i t c h e ll, Mit c h e l l Groc e ry ; J e ssic a B rown , A GA ; J immy Wright,
     Wr i ght s M a r k e t ; E llie Ta y lor, A GA ; Wad e Pay n e , F ood Giant.                       Check P resenta tion.

18 | AL AB AM A G R OC E R
AGA NEWS

WI C PA R T ICIPA N T S I SSUED F I RS T E WIC C AR DS
State Health Officer Dr. Scott Harris                         in food instruments at WIC-authorized        planning and implementation of eWIC
announced the beginning of Alabama’s                          stores statewide.                            in our state. For retailers and WIC
eWIC pilot project which will be launched                                                                  participants, eWIC will be a tremendous
                                                              Alabama WIC Program Director
in two phases starting today. Participants                                                                 improvement to the overall shopping
                                                              Amanda Martin said, “I want to thank
in the Alabama WIC Program in Autauga,                                                                     experience with smoother transactions
                                                              all of the program
Elmore and Montgomery counties                                                                                                   at the register,
                                                              staff that have been
are being issued the state’s first eWIC                                                                                          streamlining of
                                                              involved with eWIC
electronic benefit transfer cards.                                                                                               processing, and
                                                              implementation
WIC is the Special Supplemental Nutrition                     and our clinic staff                                               reduced checkout
Program for Women, Infants and                                who see participants                                               times. Our retailers
Children funded by the U.S. Department                        daily to provide WIC                                               are excited to move
of Agriculture, Food and Nutrition                            services. We have                                                  forward with eWIC
Services. The mission of the WIC Program                      been working towards                                               as we continue to
is to improve the health and nutritional                      this milestone since                                               offer quality customer
status of women, infants and children                         2009 and are extremely happy to begin        service to all Alabama consumers.”
during critical times of growth and                           this pilot.”                                 The second phase of the eWIC rollout will
development.                                                                                               begin April 1, and includes the remainder
                                                              Recognizing the value of eWIC, the
Through this new system, benefits for                         federal Healthy, Hunger-Free Kids Act        of the counties in the East Central and
WIC-approved foods are automatically                          of 2010 mandates that each state WIC         the Northeastern districts of the Alabama
entered onto a card that is similar to a                      agency implement an electronic benefit       Department of Public Health. These are
debit card. This card replaces the current                    transfer system throughout the state by      Blount, Bullock, Calhoun, Chambers,
paper-based food instruments and cash-                        Oct. 1, 2020.                                Cherokee, Clay, Cleburne, DeKalb,
value vouchers which are redeemed at                                                                       Etowah, Lee, Lowndes, Macon, Randolph,
                                                              Stacey Neumann, WIC Vendor                   Russell, St. Clair, Shelby, Talladega and
WIC-authorized stores statewide. Each
                                                              Management director and eWIC project         Tallapoosa counties. The pilot area has
                                                              manager, said, “We are very excited to       36,000 participants, 27 clinics and 192
                                                              begin our eWIC pilot. Vendor enablement      authorized WIC vendors.
                                                              is a key piece to implementing eWIC. I
                                                              want to thank all our authorized WIC         After the pilot, implementation in other
                                                              vendors for their hard work in preparing     districts is scheduled as follows:
                                                              for eWIC implementation.”                    • June: Northern District (approximately
                                                              EWIC will bring many benefits to WIC         24,961 participants, 15 clinics, 143 WIC
                                                              participants and authorized WIC vendors.     vendors)
                                                              These benefits include:                      • July: West Central and Jefferson
St acey N e u m a n n a n d Aman d a M artin
A l abama W I C D e p a r t m e nt; Ellie Tay lor, A GA ;     • Less stigma for the WIC participants       Districts (approximately 24,967
and D r. S c o t t H a r r i s S t a t e He alth O ffic e r                                                participants, 20 clinics, 130 WIC vendors)
                                                              • Smoother transaction at the register
month more than 120,000 Alabama                                                                            • August: Southeastern, Mobile and
participants at nutritional risk receive                      • Reduced time “in lane”                     Southwestern Districts (approximately
WIC benefits through all county health                        • Automatic electronic payments to vendors   34,292 participants, 35 clinics, 174 WIC
departments and with two private local                                                                     vendors)
                                                              Ellie Taylor, Alabama Grocers Association
agencies. There are currently 638 WIC-
                                                              president, said, “AGA was proud to           Contact your county health department
authorized stores in the state. In 2018,
                                                              partner with the Alabama Department          for more information or visit
participants redeemed almost $97 million
                                                              of Public Health, WIC Division, on the       alabamapublichealth.gov/WIC.

                                                                                                                                   AL A BA M A GRO CER |   19
INSIDE THE BELTWAY

                             Now Is the Time to Become a
                             G r o c e ry I n d u s t ry A d v o c at e

                                 J EN N I F ER H ATC H ER
                                 S E N IOR V ICE PR E S IDE N T, GOVERNMENT
                                 AN D PUBLIC AFFAIR S FOOD MARKETING INSTITUTE

                                                                                                      you would like to be a resource to them as
     With the Democrats in control of the House of                                                    they consider some of the complex issues
     Representatives, your involvement is needed                                                      presented to Congress.

     more than ever.                                                                                  Our first request of you is to ask you to
                                                                                                      commit to being a grocery industry advocate.
    They’re off! The 116th Congress has             committee chairs and determining ratios of
                                                                                                      For now, you can sign up on our new
    officially started, although not exactly on     Democrats and Republicans on committees
                                                                                                      advocacy platform located at fmi.org. Once
    a high note given the tremendous impasse        that will determine committee assignments
                                                                                                      we have your contact information, we will
    bringing the longest government shutdown        for the newly elected Members as well as
                                                                                                      then send you a message any time there are
    in history.                                     some of the returning members.
                                                                                                      critical issues before Congress where we
    Republicans now control the U.S. Senate by a    In at least one case the new agenda               would like you to consider weighing in. It
    53-47 margin (two Independents caucus with      resulted in a new name to the committee –         is easy, completely customizable if you like,
    the Democrats). Republican-led committees,      Education and Labor instead of Education          and can be accomplished from your phone
    Republican leadership, and Republican           and the Workforce. With 59 new Democrat           in less than one minute. You can send an
    Committee Chairman remain committed in          members and 29 new Republican members –           email, tweet or make a phone call to your
    2019 to continue reshaping the judiciary by     many holding elective office for the first        congressional office.
    confirming new judges in vacancies across       time, our most important job is to educate
                                                                                                      Once you sign up to be a grocery advocate,
    the country.                                    them on our industry and the essential daily
                                                                                                      keep your eyes peeled for our first message,
                                                    interactions your businesses have with the
    Additionally, the Senate will consider                                                            which will be for you to invite your Member
                                                    federal government in order to protect your
    nominees for a number of vacant positions                                                         of Congress to your store or business to
                                                    customers and associates and preserve your
    at the Cabinet and Subcabinet levels                                                              see what your team does every day to
                                                    business as a critical contributor to the tax
    at agencies throughout the Trump                                                                  serve customers.
                                                    base of your local communities.
    Administration. There are nine new U.S.
                                                                                                      As you know, governing is by no way limited
    Senators, busy learning the ropes and getting   We expect oversight of the Trump
                                                                                                      to Washington, D.C. and federal issues. FMI
    their committee assignments, and already        Administration, labor issues, the “green
                                                                                                      has just completed our 2019 State Legislative
    three veteran Senators – Senators Grassley      agenda,” repeal of the tax cut, infrastructure,
                                                                                                      Outlook with an overview of issues that are
    (R-IA), Alexander (R-TN) and Roberts            and health care to be high on the priority
                                                                                                      likely to be considered in state legislatures
    (R-KS) who have announced their                 list of the new Democrat leadership.
                                                                                                      and local municipalities across the country. ■
    retirements in 2020.                            FMI has been on Capitol Hill meeting
    The new U.S. House of Representatives led       with each of the newly-elected Members’
    by Speaker Nancy Pelosi has an entirely         offices – with the goal of explaining more
    different focus. The new Democrat majority      about our industry, how we interact with
    is busy appointing new                          government agencies, and how we and

20 | AL AB AM A G R OC E R
WASHINGTON REPORT

                       F i v e T r e n d s t o Wat c h i n 2 0 1 9

                             PET ER L A R K I N
                             PR E S IDE N T AN D CEO
                             N AT ION AL GR OCER S AS S OCIATIO N

Some key industry and consumer trends from 2018                                                   Wellness Soars
                                                                                                  Health is a more significant topic with
will take on even greater importance in 2019.                                                     consumers. Everyone is becoming more
                                                                                                  aware as health costs soar. Retailers need
As 2019 begins to unfold, independent             Transparency Progresses                         to have the right products for customers,
retailers are in a good position to get ahead     The need for transparency is not a              but just as important is the ability to
of the key industry and consumers trends          temporary development. It’s a long-term         provide guidance.
that will impact the entire grocery industry.     trend. Consumers are demanding more
They need to be aware of these developments       information. Embracing transparency will        This is needed in areas of the store that
and the high stakes involved.                     be essential for retailers to maintain and      include packaged foods, the perimeter, and
                                                  grow trust.                                     the pharmacy. Independents, known for their
Here are five trends that should be on the
                                                                                                  differentiated service, have what it takes to
radar of independent grocers this year:           Shoppers are interested not only in learning    offer products and guidance that differentiate
                                                  more about product ingredients but also in      from competitors.
Gen Z Comes of Age                                attributes such as sourcing. Independents
This generation, often defined as consumers       are already among the most trusted retailers,   Consolidation Advances
born between the mid-1990s and 2012, is still     so transparency is a good way to further        As mergers continue, the consolidation
up for grabs. While they mirror millennial        grow that bond with shoppers.                   of large retailers can lead to dilution of the
behaviors in some ways, this group also
                                                                                                  unique aspects that defined their successes
has its own unique identity. Independents         E-Commerce Evolves                              in the first place. That underscores the
will need to understand what it takes to          E-commerce is often viewed as a threat          importance of independents as the retailers
connect with these younger consumers,             to traditional retailers, but it’s also an      that maintain high standards and unique
including with enhanced variety and digital       opportunity. Independents are beginning to      local approaches. Customers seeking
experiences.                                      make progress with a range of e-commerce        local offerings are likely to look to
For example, Gen Zers are more comfortable        models, and they need to understand that        independents more.
receiving advertisements through social           success with customers lies in employing a
                                                  balanced approach to in-store and online        The five trends outlined here should be on
media based on their activity and interests.
                                                  strategies. Independents don’t need to          the radar of independents. They will need
This provides retailers with an opportunity
                                                  make the largest e-commerce investments         to determine the best investments to make
to expand digital advertising that can be
                                                  in the industry.                                in the coming years, which isn't easy in an
specially targeted to increase sales. Retailers
                                                                                                  industry heading in so many new directions.
that gain the trust and loyalty of these          However, they do need to determine
shoppers will be in a stronger position for       which strategies will be most important for     These are difficult decisions, but
many years to come.                               customer convenience. For example, fresh        independents are up to the task. They can
                                                  is where independents can differentiate         position themselves as the retail segment
                                                  themselves in a crowded e-commerce field        that understands shopper needs and is
                                                  by excelling in the category.                   willing to prove it. ■

                                                                                                                             AL A BA M A GRO CER |   21
VIEWPOINT

                                              Bread & Metaphors

                                 K EV I N CO U PE
                                 FOUN DE R , MOR N IN GN E WS BEAT.CO M

     At this year’s Consumer Electronics Show, I found                                                 communications and media technology,
                                                                                                       while another one might work with Google,
     the best innovations are the ones that marry                                                      and another with Amazon.

     technology to basic human needs and reflect the                                                   I understand why these alliances are
                                                                                                       created – it’s all about the money.
     retailer’s ability to walk in the shopper’s shoes.                                                I’m sure car companies get a nice check
                                                                                                       from technology companies to have their
     In the end, despite all the focus on high tech,   I’ve been to the show, and I found it to be
                                                                                                       systems installed because that then brings
     the most talked-about piece of technology         every bit as overwhelming as I expected it to
                                                                                                       the driver into that company’s ecosystem.
     at the recent Consumer Electronics Show           be – and talking to event veterans, it seemed
     (CES) in Las Vegas was a bread maker. And         clear to me that this was a transitional        I’m not sure this is a very consumer-centric
     one of the core retailing lessons for me came     year for CES. There wasn’t a blockbuster        way for car companies to think about
     in the form of a metaphor.                        announcement of some new technology or          these things, though. If I’m in the Amazon
                                                       killer app that looks destined to change all    ecosystem, and I want to buy a Ford,
     Sure, there was plenty of VR. And AI.
                                                       of our lives.                                   which seems to be firmly implanted in the
     And 5G. And self-care-oriented products,
                                                                                                       Apple ecosystem, I may decide to look for
     including one massager, the Osé, that             In fact, this seems to be a transitional time
                                                                                                       another car brand so I don’t have to change
     used microrobotics so impressively that           for technology in general, with even Apple
                                                                                                       technology ecosystems. I might not, if the
     it got an innovation award from CES. It           struggling a bit to find its footing in the
                                                                                                       importance of the car brand outweighs the
     then was stripped of its award when it was        marketplace at a time when there appears
                                                                                                       brand of the technology. But I might.
     determined that the item was less about self-     to be no next big thing to unveil.
     care and more about being an instrument                                                           My point here is this: Wouldn’t these
                                                       (One caveat. There always is a next big
     of self-pleasure, though that strikes me as a                                                     automobile companies be more driver-
                                                       thing, and it often comes along and smacks
     distinction without a difference, or maybe a                                                      friendly if they actually took an à la carte
                                                       us upside the head when we least expect it,
     difference without a distinction.                                                                 approach to this kind of technology,
                                                       from a source that we didn’t see coming.
                                                                                                       allowing me as the customer to choose what
     There also was a considerable number of           It just didn’t happen at CES.)
                                                                                                       I want? Or, to put it another way, wouldn’t
     voice-activated gizmos. And even a 96-inch        To me, a central lesson of CES for retailers    they be better off if they put themselves in
     8K television that was amazing…though             came in the form of what ends up being a        the shoes of the customer?
     in addition to being wildly expensive, one        metaphor – the technology decisions being
     has to remember that it is likely to be years                                                     To me, those are the shoes in which retailers
                                                       made by car companies.
     before 8K content is available, so owning                                                         have to walk these days if they are going to
     one would be like having an Aston Martin          Walk around CES (and I suppose any car          be successful.Let’s take a more supermarket-
     DB5 sitting in your driveway and absolutely       show) and one of the things you see is          centric example – click-and-collect systems,
     no access to fuel.                                companies choosing technology lanes.            also known as BOPIS (buy online, pickup
                                                       This automobile company decides                 in-store).
     In wandering CES – this was the first time        to work with Apple in terms of installing

22 | AL AB AM A G R OC E R
Research from WD Partners shows                  can’t help but make you hungry.                  have them, and offer solutions that improve
that among customers who want to do              Hunger is a powerful tool if you are in          our lives.
e-commerce, BOPIS is the number one              the food business. So how come many              Sure, tech for tech’s sake can be cool, fun
requested item, far beyond delivery; BOPIS       supermarkets have all the aroma appeal           and even, given a little time, critical to how
actually tends to create larger basket sizes     of a CVS? The BreadBot, by tapping into          we live. But tech that touches the heart, soul
for the retailer; and, BOPIS tends to get        something visceral, represents the marriage      and stomach, in addition to the mind, is the
profitable faster than delivery.                 of technology to the satisfaction of a basic     real secret sauce for a retailer’s success. ■
And yet, many retailers don’t offer it,          human desire.
many of those that do don’t do it well,          That’s what the best technology innovations
and many retailers are building stores           do – address essential human needs and
without creating the basic infrastructure        desires, sometimes even before we know we
for providing click-and-collect in the future
(much less delivery). In essence, they are

                                                          THE
opening new stores that in some ways
already are obsolete.
Why? I believe there is a certain amount
of denial of future inevitabilities here, plus            WORLD’S
                                                          MOST
an unwillingness or inability to think like
the customer.
This even extends to the pickup bays created
by companies that are doing BOPIS – most                  REFRESHING
                                                          BEER
retailers may have two, three or four slots.                                                 ™

But what happens if you’re the fourth
customer to pull up, and the three slots are
filled? The entire premise behind a click-
and-collect offering falls apart, and you’ve
alienated the shopper.
The technology exists to turn an entire
parking lot into a pickup bay, not to mention
track customers’ movements so that you
know exactly when their car enters your
property. But at this point, there aren’t
a lot of retailers making these kinds of
investments, even though I think that any
reasonable reading of the retail tea leaves
suggests this is where the world is going and
what customers will demand.
Alienate or disenfranchise these customers,
and they may go elsewhere…like to
Amazon, which will be happy to deliver stuff
right to their houses or offices.
Finally, about the bread maker…I wasn’t
being hyperbolic when I referred to it being
perhaps the most talked-about technology at
CES. The BreadBot, as it has been dubbed by
its creator, the Wilkinson Baking Company,
is a fresh bread vending machine.
Half of it bakes fresh bread, and the other
half sells it by the loaf…and the whole
thing creates not just theater, but also some       CELEBRATE RESPONSIBLY®
                                                    © 2018 COORS BREWING CO., GOLDEN, CO • BEER

powerful aromas that, when you smell them,

                                                                                                                           AL A BA M A GRO CER |   23
!

                                                      OUTSIDE THE BOX
                                                              N EW RETAIL PERS PECTIV ES

                 Man Up
                Euromonitor reports that global sales of
                men’s grooming products reached $50
                billion in 2017 and is on track to grow 16
                percent by 2020. American men already
                use four grooming products per day and
                spend 48 minutes daily on grooming
                including washing, conditioning and
                styling their hair.

      iStock

                                                                         FUTURE                                         FOOD
                                                                          If you haven’t heard of Wageningen University in The Netherlands you might
                                                                          want to look up the institution at the center of an agri-revolution. In a corner
                                                                          of Northern Europe nicknamed “Food Valley” the university is focusing on
                                                                          food technology including altering the color of lights at indoor grow rooms to
                                                                          increase yield, vitamin content, smell and taste. Turn on the red light and you
                                                                          get more efficient growth. The blue light gets you shorter plants with higher
                                                              iStock      levels of antioxidants.

                                                                                                              Dollars
                                            SHOCKING RESULTS                                                    in Singles
                                                     The popularity of electric vehicles is up so much          Chinese data services
                                                     that Tesco and Volkswagen are teaming up to                firm Synfun reports
                                                       build the largest charging network in the U.S.           that the annual Singles Day sales
                                                          The firms are planning to launch 2,400                generated about $45 billion, two-
                                                            additional charging stations at 600 Tesco           thirds of which was accounted
                                                                 stores over the next three years. And          for by Alibaba, China’s leading
                                                                   the service will be free to consumers        e-commerce company.
                                                                   using a regular charger.
       iStock

24 | AL AB AM A G R OC E R
Kid S
RISE of the                                                                                               tuff
                                                                                                       Kudo
                                                                                                             s
MACHINES?
Business conversations seem to be centered
around artificial intelligence. But it’s not about
putting robots in stores. Non-tech companies
are starting to see AI opportunities for achieving
business goals and improving P&Ls by using it
to redesign their organizations, cut costs, analyze
geographic expansion and becoming part of the
business strategy.                                          iStock                                                                  iStock

                                                                                             If you want to appeal to parents, take
                                                                                             care of the kids. This was the thinking
                                                                                             behind a line of clothing for children
                         Professional Ethics                                                 with disabilities introduced by Marks &
                                                                                             Spencer. The “Adapted for Easy Dressing”
                                               In a 2018 survey of ethical and
                                                                                             line is available for kids up to age 16 and
                                                 honesty standards, the Gallup
                                                                                             features innovations such as easy-dressing
                                                 Organization found that the top
                                                                                             products with as few seams as possible,
                                                 three slots belonged to those in the
                                                                                             snaps instead of buttons and zippers, and
                                                medical profession. Nurses took the
                                                                                             Velcro fasteners which makes it easier
                                             number one slot, followed by doctors.
                                                                                             for kids in wheelchairs. The entire line
                                         But only one percentage point behind
                                                                                             is modeled after the company’s regular
 iStock
                                   doctors were pharmacists.
                                                                                             clothing line so disabilities aren’t defined
                                                                                             by the clothing.

                                     Ultimate
                                       Experience
                                                                                             North of the Border
                                                                                             Not that there aren’t challenges, but the
                                                                                             place to be in the retail world is Toronto. Hi-
                                                                                             rise, multi-family building construction is
                                                                                             at an all-time high and there are reportedly
                                                                                    iStock   91 cranes on this Canadian skyline.
                                                                                             Toronto has become the fastest growing
Everyone talks about customer experience. But John Lewis & Partners department stores        city in the U.S. and Canada, according to
in the United Kingdom want to provide the ultimate in personalization. Private shopping      Cushman & Wakefield. Taxes and wages
will enable customers to book an entire department for after-hours shopping with access to   are a bit higher than the U.S. which hasn’t
expert advisors. Customers can also book the store for an evening’s shopping party if you    seemed to stop Nordstrom’s, a recent entry
can get your friends and family to spend a minimum of $12,800.                               from making a killing.

                                                                                                                      AL A BA M A GRO CER |    25
STARG

26 | AL AB AM A G R OC E R
GAZING
  AROUND GROCERY:
             INMAR INSIGHTS INTO 2019

 By Craig Rosenblum, Regional Vice President Enterprise Retail, Inmar

 With the holidays in the rear-view, it’s time to pause and take a quick look ahead
 at what promises to be a very “interesting” 2019 for trading partners in the grocery
 space. And, from my perspective, much of what will make this year interesting will be
 the increased deployment of automation.

    As grocery retail continues to operate on razor-thin         Only time will provide the answers but 2019 will see
    margins (while the cost of servicing shoppers grows)         a growing number of retailers using automation to
    it is imperative that retailers maximize efficiency all      try to improve operations and more quickly activate
    along the value chain from inventory optimization            shoppers. There will be more cashless and/or self-
    through closing the last mile and automation looks to        checkouts, more geofencing, more delivery drones and
    be the answer. But, for all the promise of efficiency and    autonomous vehicles, more virtual reality and even
    the potential to drive shopper satisfaction and loyalty,     more robots. But will all this automation automate
    the use of automation poses some daunting questions.         success? We’ll have to see.
    Will today’s consumers greet this technology with            In the meantime, to get a broader sense of how the
    delight and what aspects of this “new retail” will require   industry will engage, activate and retain shoppers this
    a longer period of adjustment for shoppers? How far          year, I asked several of my colleagues at Inmar for their
    will customers and shoppers be willing to go                 insights into what will be influencing and shaping the
    in providing personal information so automated               grocery marketplace. Here’s what they had to say…
    technology can work its magic toward delivering
    the ultimate shopping experience?                                                                Continued on page 28 ▶

                                                                                                         CAL
                                                                                                          AL AI FO
                                                                                                                BA RNIA
                                                                                                                   M A GRO
                                                                                                                        GROCER
                                                                                                                            CER| | 27
◀ Continued from page 27

                                                                                   But even before shoppers reach the store they’re going to be reaching
       “Personalized, experiential retail will                                     out to retailers online for help with personalized meal planning and
        proliferate -- from web pages to food prep                                 food product options that not only support their wellness goals but
        to pricing.”                                                               also are tied to their individual health states.
         Jon Hauptman, Sr. Director, Analytics Solutions; Diana Medina,
                                                                                   To meet this need, retailers will lead with curated content (recipes,
         Director, e-Commerce Solutions; and Tom Martin, Associate
                                                                                   storytelling, promoted products, etc.) intended to inspire and activate
         Director, Digital Solutions
                                                                                   shoppers at every meal occasion with the information tailored to the
                                                                                   specific needs of the shopper including budget, number of guests,
     Retailers and brands have already demonstrated a willingness to
                                                                                   health considerations, etc.
     participate in personalized communication with shoppers but this
     form of engagement is going to move from occasional to obligatory             Creating that kind of uber-specific, loyalty-building connection is
     in 2019.                                                                      going to require that retailers accelerate investment in the tools and
                                                                                   technologies already available for better engaging shoppers while, at
     We’ll see marketers, especially those on the retailer side, commit to
                                                                                   the same time, pursuing cross-industry collaboration with healthcare
     establishing one-to-one communication with shoppers and they’ll
                                                                                   systems and insurers to better enable shoppers in their quest for
     do it through personalized web pages and personalized mobile app
                                                                                   better health.
     screens that employ individualized screen layout and content, curated
     assortment bundles, etc.                                                      Smart retailers will use more real-time communication with shoppers
                                                                                   around their online orders – and focus their efforts on optimizing the
                                                                                   online shopping experience and delivering superior quality of service
                                                                                   as key differentiators in an already crowded space.
                                                                                   However, the most striking, and potentially most impactful
                                                                                   employment, of personalization may well be personalized pricing.
                                                                                   With the technology now available and the concept proven, expect
                                                                                   to see retailers more actively engage in store-level personalized
                                                                                   pricing and promotion – maintaining their strongest long-term base
                                                                                   prices while providing shorter-term promotional pricing to select
                                                                                   households on those items most important to them regardless of
                                                                                   department, category or brand.

                                                                                     “Supply chain will go ‘super strategic’
                                                                                      as efforts around e-commerce focus on
                                                                                      functionality and profitability.”
                                                                                      Paul Weitzel, Vice President, Analytics Solutions
                                                                          iStock

                                                                                   E-commerce will continue to be the leading growth channel for food
     And these personalized “conversations” will, more and more, take
                                                                                   and beverage sales in 2019 and this growth will be fueled, in large
     place around meals and food preparation as the goal for retailers will
                                                                                   part, by the increasing number of brick & click locations that will
     shift from growing share of wallet to growing share of stomach.
                                                                                   come into operation during the year.
     They’ll pursue this goal in-store by dedicating more space to
                                                                                   As this expansion accelerates, trading partners and service providers
     grocerants, breweries, wine bars, food stations, coffee bars, etc.
                                                                                   will be increasingly focused around delivering the best total landed
     Retailers will also take additional steps to make it easier and
                                                                                   cost to customers and consumers and begin to seriously tackle
     more attractive for shoppers to pre-order prepared foods for
                                                                                   operational requirements for making e-commerce sustainable and
     same-trip pickup.
                                                                                   profitable over the long term.
     With shoppers’ heightened focus on healthier eating, additional
                                                                                   Therefore, expect to see more unique arrangements between trading
     “better for you” center store options will not suffice; retailers won’t
                                                                                   partners with independent fulfillment platforms fulfilling online
     be able to rely on new product lines from manufacturers to attract
                                                                                   orders directly inside the manufacturer’s mixing centers – lessening
     and retain these increasingly discriminating shoppers.
                                                                                   distribution and handling and keeping costs down for online
     Expanded, and more nutritious, deli, prepared, pre-packaged and               shoppers. Concurrently, there will be greater use of smaller depots
     locally sourced perimeter options will be retailer “must haves” in            closer to delivery points to make home deliveries less costly, more
     2019, with prominent labeling and signage that leave no doubt among           operators leveraging automation to make the pick-and-pack
     shoppers as to the quality – and origin – of what’s being offered.

28 | AL AB AM A G R OC E R
process more efficient, and center store shrinking as brick and          The bottom line will be that retailers, working to build long-term
mortar locations make room for high-volume backroom picking              shopper loyalty, will take on greater (if not full) responsibility for
and packing.                                                             store brands. This new “ownership” means that new skills, such as
Blockchain automation will make its way into integrated supply           consumer and shopper research, must be acquired. At the same
chains so that food transparency and traceability will be seamless       time, leveraging the opportunity presented by innovative private
and readily available to trading partners and, ultimately, consumers.    label offerings will require that retailers and store brand suppliers
This push will continue to come from leading U.S. retailers and their    collaborate around product conceptualization and development,
global trading partners who are increasingly requiring upgraded          not just create and respond to bid specs.
sourcing information and better food safety solutions. Applied           As online offerings will come to include more produce, additional
correctly, blockchain should also reduce redundancies inherent           innovative private label products and broader CPG assortment, those
across trading partner systems and operations.                           retailer locations still standing after further consolidation will serve
This year’s omnichannel expansion will also include more and more        as hyper-marts crossed with mini distribution centers.
CPG manufacturers testing their own direct-to-consumer programs.         Predictive analytics will guide the supply chain logistics necessary to
There will be widespread interest and no shortage of experiments, but    make this increased personalized assortment, speed and convenience
it will be those CPGs that produce small cube, high-value products       economically viable. Larger retailers that have stuck to analytics
that will be better positioned to effectively leverage the opportunity   hiring initiatives since the early 2000s and converted lower foot-
and make it pay off.                                                     traffic volume establishments into pseudo-DCs will fair best.
                                                                         Traditional grocers will likely expand same-day delivery efforts–
                                                                         paralleling the rise in consumer comfort with online grocery
  “Private label will pivot toward innovation                            shopping. And it will be predictive analytics that will inform
   while analysts will drive a superior customer                         spend and make this new level of CX achievable and profitable.
   experience.”
   Jim Hertel, Sr. VP of Retail Promotion Network and Irv Turner,
   Vice President, Analytics Operations

Analytics is transforming grocery the way it has transformed several
industries – from finance to pharmaceuticals. That transformation
is not going to slow in 2019 as the key grocery retail players will
continue growing their analytics stables to drive a new level of
Customer Experience (CX). They will be investing heavily in hiring
analysts and data scientists to increase customer convenience while
using predictive analytics to grow razor-thin margins.
Even now, predictive analytics is at the core of hyper-localized
shelf assortment, shopper segmentation aligned with product affinity,
personalized discounts by CPG-brand price-sensitivity and forecasted
                                                                          iStock
out-of-stocks by hour of day. Going forward, predictive analytics – in
combination with highly customized data storage vectors populated
from retailer data lakes – will significantly increase personalization   A year of accelerating change…
and CX to the point where out-of-stock forecasting will focus on the     From increased automation to greater shopper autonomy, 2019 will
household refrigerator rather than the supermarket shelf.                see accelerating change across virtually every facet of the grocery
Highlighting this enhanced assortment will be the addition of new        industry. Continuously shifting shopper behaviors – further impacted
private label offerings that do more than simply mimic national          by looming economic uncertainty – will drive retailers and brands
brands. This break with retailers’ long-standing practice of growing     to work harder than ever to innovate their operations in order to
new sales by relying on replicating new products from national brand     anticipate and effectively address diverse marketplace demands.
manufacturers is showing stress as cost and margin pressures increase    And while there is no single strategy that will guarantee successful,
for CPGs. Therefore, retailers are going to have to step up. And they    if not superior, shopper activation, those trading partners that
will as the promised benefits are significant.                           make full use of available data and conscientiously apply advanced
Store brands that deliver on quality, in addition to value, have high    analytics to inform their shopper engagement will be those that retain
appeal among younger shoppers and represent a unique opportunity         their competitiveness and protect their profitability in the (very
to attract cost-conscious Millennials who want an “experience” even      interesting) year ahead. ■
as they seek to save. Besides adding margin, private label can drive
store choice and shopper loyalty based on exclusive availability.
                                                                                                                              AL A BA M A GRO CER |   29
You can also read