2021_Alabama_Grocer_Issue_3

Alabama

Government Relations: Legislative Report

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PAGE 38 15 Minutes with Lenny Mendonca

2 0 2 1 , I S S U E 3

A L A B A M A G R O C E R S A S S O C I A T I O N

How to Navigate Multiple Generations

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Plus

Page 30 The Power of Grit

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| ALABAMA GROCER 2

CONTENTS | ISSUE 3

FEATURES

COLUMNS President’s Message Wishing all a Happy and Prosperous Holiday . . . . . . . . . . . . . . . . . . . . . 5 Chair’s Message Let's Wrap Up 2021 . . . . . . . . . . . . . . . . . . . . . 7 Viewpoint The Death of the Conventional Supermarket .. . . . . . . . . . . . . . . 8 Government Relations Legislative Report .. . . . . . . . . . . . . . . . . . . . . 10 Special Legislative Report .. . . . . . . . . . . . . . 12 2022 Legislative and Regulatory Agenda .. . . . . . . . . . . . . . . . . . . . 14 Inside the Beltway The Return of Regulatory Risk .. . . . . . . . . 16 Mommy Blogger Another Year of Lunch Box Blues . . . . . . . 42

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How to Navigate Multiple Generations in Your Stores and in Your Workplace

Mastering generational preferences, whether in the form of marketing messages or workplace incentives, is more necessary than ever for grocery industry leaders.

The Power of Grit How grit can take us beyond the grind and towards purpose. 30

DEPARTMENTS AGA News .. . . . . . . . . . . . . . . . . . . . . . . . . . . 18 Outside the Box New Retail Perspectives . . . . . . . . . . . . . . . . 36 15 Minutes With Lenny Mendonca .. . . . . . . . . . . . . . . . . . . . 38

ALABAMA GROCER | 3

AGA | BOARD OF DIRECTORS

Sergeant-at-Arms Bo Taylor Coca-Cola Bottling Company United, Inc.

Treasurer Jay Mitchell Mitchell Grocery Corporation Secretary James Cochran Buffalo Rock Company

Immediate Past Chairman Frank D'Amico III BTC Wholesale Distributors Past Chairman Peter "Greg" Gregerson Gregerson's Foods

Chairman of the Board Harold Garrett Gateway Foods Vice Chairman Bob Crawford United Johnson Brothers

executive committee

vice presidents Jack Carlile UNFI Bill Davis

Jimmy Wright Wright’s Market

Wade Payne Food Giant Tom Sayers Publix Super Markets, Inc

A&R Super Markets

directors Naseem Ajlouny

Alison Steineker Alabama Power Company Cliff Thomas Campbell Snacks Charles Weathington UNFI Chris Woods Retail Data Systems

Jerry McCann Piggly Wiggly Alabama Distributing Eddy Quinley Advantage Solutions Greg Rains Alabama Crown Distributing Lynn Rushing Winn-Dixie/SE Grocers Manny Shoemaker Country Delite Farms/DFA

Chris Crosby Golden Flake/Utz Snacks Gerry D'Alessandero Fourth Avenue Supermarkets Kevin Gillespie Kelley Foods Lucy Greer Cheriogotis Autry Greer & Son's Kenneth Jones Rouses Enterprises

Buy Lo Quality Foods Stan Alexander Associated Grocers of the South Danny Babb Associated Wholesale Grocers Paul Burnett Byars | Wright Insurance Kirk Clark Mitchell Grocery Corporation

ex-officio board members

Mac Otts Autry Greer & Sons

John Wilson Super Foods Supermarkets

Secretary/Treasurer Don Richardson Coca-Cola Bottling Company UNITED

President Ellie Smotherman Taylor Alabama Grocers Association

Vice Chairman Gerry D’Alessandro Fourth Avenue Supermarkets

Board of Trustees Chairman Tom Sayers

Publix Super Markets, Inc.

Bubba Lindley EdLinco

Jai Freeman Freeman Foods Mike Hanson Milo’s Ken Hestley Sell Ethics

Jeff Bolas Bunzl Distribution Tim Cano Post Holdings Brad Flinn Buffalo Rock Company

Austin Virciglio Piggly Wiggly of Jefferson County

Rob Renfroe Renfroe Foods Jake Sim A&R Supermarkets, Inc.

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PRESIDENT’ S MESSAGE

W i sh i ng a l l a Ha p p y and P r o s p e r o u s Ho l i day

ELLIE SMOTHERMAN TAYLOR PRESIDENT ALABAMA GROCERS ASSOCIATION

From vaccine mandates to supply chain issues to inflation, we are still continuing to see the effects of the pandemic.

participants in USDA’s SNAP program generally spend their benefits soon after receiving them, and this spending that has cascading effects throughout the economy. Our office is always open and ready to listen to our members. If at any time during the 2022 Legislative Session you have a question or concern, please do not hesitate to contact myself or our Legislative Representative Patrick McWhorter. Lastly, I would be remiss if I did not recognize the 2021 Alabama Grocers Association Year Award Winners. Congratulations to Bill Davis, A & R Supermarkets; Kirk Clark, Mitchell Grocery Corporation and Bo Taylor, Coca-Cola Bottling Company UNITED. Each of these fine individuals exemplify leadership and excellence in Alabama’s grocery industry and we are honored to recognize each of them. As 2021 ends, I wish for all of you a happy and prosperous holiday season. Thank you for allowing our Association to be the voice of the grocery industry in Alabama. ■

that establishes the crime of organized retail theft, including record keeping requirements for items sold on third party platforms, and updates to the food code to be in compliance with federal menu labeling regulations. We continue to take an active role in Healthy Food Financing Initiatives as well as proposals that would limit SNAP and WIC. One bright light in the pandemic is the amount of emergency assistance given to the people of Alabama. From March 2020 to September 2021, over 285,466 households and 588,405 participants were given emergency allotment benefits of $965,079,315. This is a staggering amount put back into the economy. According to the Economic Research Service, U.S. Department of Agriculture, during a slowing economy, $1 billion in new SNAP benefits leads to an increase of $1.54 billion in Gross Domestic Product (GDP). This $1 billion in new SNAP benefits would generate an additional $32 million in income for the U.S. agriculture industries and support an additional 480 full-time agriculture jobs. In addition, low-income

As much as we would like the coronavirus pandemic to end, issues for our industry continue to be at the forefront of our companies. From vaccine mandates to supply chain issues to inf lation, we are still continuing to see the effects of the pandemic. At the time of this writing, we are currently in a special session to do redistricting throughout the state but with everything else, we are seeing legislation related to COVID-19. Please continue to monitor our weekly market minutes and the Association App for updated information regarding federal, state, and regulatory changes. I am very proud of the work of our Association staff during this time to keep our members up to date and in compliance. In my career, there has never been a time when your Association staff has worked harder for all of you. The Alabama Legislature will begin on January 11th. Your board met in October to set our 2022 Legislative Agenda, which is included in this publication. Top legislative priorities include the ability of grocers to sell ready to drink spirits, INFORM legislation

ALABAMA GROCER | 5

United - Johnson Brothers of Alabama Proudly Supporting The Alabama Grocers Association

For Over 15 Years

S ERVING ALL 67 COUNTIES

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CHAIR’ S MESSAGE

L e t ' s Wra p U p 2 0 2 1

HAROLD GARRETT GATEWAY FOODS AGA CHAIRMAN OF THE BOARD

It’s Fall y’all!

As this Pandemic lingers, 2021 has been a year of finding opportunities disguised as obstacles. Our industry has been quick to respond, and we have seen that when a wall goes up, we will always find a way around it and be better and stronger on the other side. Please make plans to join us in 2022 to support YOUR Association! 2022 Association Events: • February 3rd – Buy Alabama’s Best Retailer Luncheon – The Club, Birmingham, AL • April 7th – AGEF Spring Golf Outing - Inverness Country Club, Birmingham, AL • July 24-27th – AGA Annual Convention – Sandestin Golf & Beach Resort • October 13th – AGEF Fall Clay Shoot – Selwood Farms, Alpine, AL • October 27th – Alabama’s Food Industry Finest – The Club, Birmingham, AL Keep up the good work, and good luck to everyone, hope everyone finishes 2021 on a good note! ■

First, let me say how proud and excited I am to be chosen as your chairman for the next 2 years, it is my honor to serve. Looking back on 2021 so far, it seems that things are getting back to some resemblance of normal. The Convention was a huge success this year. Our numbers were back up to 2019 and we look forward to growing this event in 2022. The Foundation also did well this year with the Spring Golf and Fall Clay Shoot outings which were both very successful, thanks to all who were involved in these events. Our last event for 2021 was the Food Industry Finest Luncheon which Governor Kay Ivey spoke at and we had a chance to honor the Retailer, Wholesaler & Vendor of the Year. Congratulations to those winners; they deserve this recognition for the fantastic job they do! • Mr. Bill Davis, A & R Super Markets, Inc, Retailer of the year • Mr. Kirk Clark, Mitchell Grocery Corporation, Wholesaler of the year • Mr. Bo Taylor, Coca Cola Bottling Company UNITED, Vendor of the year

I would like to take a minute to recognize all the newly elected Board Members and thank them in advance for serving our membership. I am looking forward to working with each and everyone of them over the next couple years. New Board Members: • Alison Howell Steineker, Alabama Power Company • Gerry D’Alessandro, Fourth Ave. Supermarkets • Jerry McCann, Piggly Wiggly Alabama Distributing Co. • Paul Burnett, Byars | Wright Insurance • Lucy Greer, Autry Greer & Son’s • Lynn Rushing, Winn Dixie Also, Mr. Bob Crawford, United Johnson Brothers, will be serving as our new Vice Chairman. I would also like to recognize Ellie, Jessica, and Katie! This year our staff has made great strides with the AGA Community app and all our social media platforms. They do a great job of keeping us up to date on what’s going on in our industry, as well as keeping us informed on local news and activities that relate to our businesses.

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VIEWPOINT

T h e D e at h O f T h e C onv e n t i ona l S u p e rmark e t

KEVIN COUPE FOUNDER, MORNINGNEWSBEAT.COM

Are we living out, with apologies to Charles Dickens, a Tale of Two Industries?

has access to financial resources that most of these companies do not (it can borrow money at lower rates than most countries), which makes it more competitive in almost any category in which it chooses to compete. All of which paints a picture of an industry in which the conventional sector, in some sense, is dying. There is an argument to be had, of course, about whether all this pain has been wreaked upon the conventional supermarket sector, or whether it is self-inf licted. Once again, my response is: Yes. Both. A couple of things here. First, can we be clear about the definition of “conventional”? “Concerned with what is generally held to be acceptable at the expense of individuality.” Whoa. That definition reads like an enormous red f lag. I think it is fair to suggest that for retailers to succeed in 2022 and beyond, the last thing they ought to think about is acceptability, and the first thing they ought to be focused on is individuality. Isn’t the very definition of competing doing what the other side either cannot do or will not do?

Scott’s position is that there are two different industries – one dominated by Amazon, Walmart, Target, Costco, and Aldi, as well as Dollar General and Family Dollar, which are engaged in almost unprecedented expansion efforts, and another one that includes almost everyone else, most (though not all) of which are at a competitive disadvantage because of simple economics. He’s done a lot of research in this area, and here is the number that most concerns him – between 2010 and 2020, the national supermarket industry lost some 900 conventional stores, a drop of about three percent. Compare that to “discount supermarkets” (up by more than 1,500 units, or 61 percent), dollar stores (up a whopping 12,000 units, or 62 percent), and “natural/gourmet supermarkets,” up more than 500 units, or 133 percent). At the same time, Scott points out, Amazon has a valuation of more than one-and-a-half trillion dollars, way larger than (and this never ceases to amaze me) Walmart, Kroger, Albertsons, Ahold Delhaize, Costco, Target, CVS, Walgreens, and Dollar General. Combined. Which means that Amazon

Is this the best of times, or the beginning of the worst of times? I’d argue that the answer to all of these questions is the same. Yes. I am persuaded in this belief by Scott Moses, the managing director and head of grocery, pharmacy and restaurants at PJ Solomon, who recently joined me on MorningNewsBeat for an extended conversation about the economic and competitive state of the industry. There has been a sense over the past year that, as consumers found the supermarket industry to be essential during the pandemic, that this is a perception that will persist and a reality that will provide the business enormous momentum going forward. It is hard to know how the resurgence of the coronavirus and the emerging threat of the Delta Variant will impact the industry; as I write this, vaccinations are increasing (though too few people still are fully vaccinated) and there is an ongoing debate about mask and vaccination mandates. Lockdowns seem not to be on the table right now, thank goodness.

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VIEWPOINT

“Can you honestly say that in your business, change is happening faster inside than outside?”

iStock

time it ability to spend any amount wants on any amount it wants. (Though don’t delude yourself that this will blow up Amazon’s business model. Some would suggest that broken into two companies, Amazon actually becomes more valuable, not less so. But that’s a different conversation. Scott says that one thing the industry must be vigilant about it making sure that the FTC does not apply a re-energized opposition to mergers and acquisitions to the independent/regional/conventional sector, where retailers may need to find new partners and alliances if they are to do the things necessary to survive. (Scott would concede that this sounds like this is a self- serving position to take, since his business is mergers and acquisitions. But I’ve never met a finance guy with as much sincere concern about the long-term vitality of a sector as Scott has for the supermarket industry.) The Death of the Conventional Supermarket . This isn’t just what I hope was an attention-grabbing headline. It is a challenge to never be conventional in thinking, implementation or vision. It is an opportunity to think of your store, your employees and your customers in a far more individualistic framework, thinking in a granular way about being essential. And it is a call to vigilance on all fronts, in what can be an unfair world, to make sure change and innovation are happening more on the inside than the outside. ■

competition (not always a supermarket) is selling tuna fish sandwiches but finds itself questioned by the national media and activists about whether it is actually tuna, then your job is to have the best, freshest, most delicious tuna fish sandwiches in the market. (I’m biased on this one, believing in my heart that a great tuna melt is one of life’s great pleasures.) If the competition is antiseptic in its approach, then your job is make your store smell like fresh baked bread or chocolate chip cookies or whatever else will make folks hungry when they walk through the door. If most folks sell pre-packaged guacamole, then your job is to sell made-to-order guacamole so fresh and good that people will line up to buy it. These are only a few examples of how to compete in the current environment. There are many more. And it won’t be easy. Of course, the battles won’t only be played out on the competitive fields, but also, in all likelihood, in the court system and by both “Tale of Two Industries” narrative will need to be addressed with the Federal Trade Commission (FTC) and with national lawmakers highly focused on antitrust issues. The good news is that rigorous antitrust enforcement might mean that big tech companies like Amazon could be broken up, which would at least limit for some period of legislators and regulators. Scott Moses argues that this

It is, in fact, the Moneyball argument, as made by Oakland A’s general manager Billy Beane (Brad Pitt in the movie): “The problem we’re trying to solve is that there are rich teams, and there are poor teams. Then there’s 50 feet of crap. And then there’s us. It’s an unfair game.” Life is unfair, I always told my kids growing up, when they’d come to me with a complaint. Deal with it. Jack Welch, the legendary CEO of GE, put it this way: “If change is happening on the outside faster than on the inside, the end is in sight.” Question: Can you honestly say that in your business, change is happening faster inside than outside? The thing about change and innovation, though, is that they are not always achieved through some sort of expensive technology. Of course, tech certainly can be the engine of great change, but that’s not the only way to go. There’s that thing about individuality. Doing what the other side cannot do or will not do. Do you know what those things are? If the competition is offering a new checkout-free store, then your job is to have the best checkout people in town. If the If not, you may shortly have some explaining to do. (Maybe to your banker. Or your realtor.)

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GOVERNMENT RELATIONS

L e g i s l at i v e R e p o r t

PATRICK MCWHORTER LEGISLATIVE REPRESENTATIVE THE MCWHORTER GROUP

Constitutionally, the absolute minimum amount of time for a bill to pass the legislature is five days.

advocacy groups, said new buildings won’t address the mismanagement, corruption and staffing issues within the system that have put the state under U.S. Department of Justice scrutiny. They also called for more sentencing reform. But the fight may not be over. Rumor is Democrats will oppose the use of $400 million in American Rescue Plan funds and will file lawsuits as well as pressuring the Biden administration to stop it. These funds were provided by Congress this year to replace revenue that was lost during the pandemic shutdown. Legislative and administration officials are confident they are able to use the funds in this manner. Two sentencing reform bills were included

bill calls for an evaluation of existing men’s facilities “to determine if additional facility beds need to be replaced.” Prisons named for closure are: Staton, Elmore and Kilby, and St. Clair The women’s Julia Tutwiler prison will be closed when a new female prison is completed. We expected Democrats in the House to put up a fight, and they did. To no effect. The bills passed the House 75-22. In the Senate, the prison construction bills passed 29-2 with 1 Republican and 1 Democrat voting no. House Democrats, along with several

For five years, Alabama’s leadership has grappled with how to solve the state’s prison problem. Constitutionally, the absolute minimum amount of time for a bill to pass the legislature is five days. People can say what they want about Governor Kay Ivey, but she and her people engineered a $1.2 billion package for new prisons, and passed them into law in five days. The bills that passed authorize the administration to build two new 4,000 bed men’s prisons in Elmore and Escambia Counties. This construction, Phase 1, will likely begin shortly after January 1, 2022. That quick pace is due to two factors: the plan that was approved to use $400 million of federal COVID relief funds that’s already in hand and the ability to use general contractors who are already lined up due to the previous plan of building and leasing private prisons. Once those two prisons are 60% complete (likely 2023 or 2024), lawmakers and leaders can move to phase two of the bill, a potential new women’s prison and renovations at the existing Limestone County prison and Donaldson prison in Jefferson County. A third site for renovation, either Ventress or Easterling in Barbour County or the Bullock County prison, will be selected later. Phase III of the

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Bureau of Pardons and Paroles. This facility will house parolees who have technical parole violations, such as missed meetings with parole officers or failed drug tests. After repeated technical violations, they’re supposed to go to prison for 45 days, “dunks,” under current law. But county jails for years have said those inmates have lingered in the county jails where they’re first sent. Governor Ivey signed the bills into law as soon as they came over to her desk on Friday afternoon. ■

in the Governor’s call for the special session, but only one passed into law. House Bill 2 increases the number of inmates who could be released prior to the end of their sentence and placed under supervision of the Alabama Bureau of Pardons and Paroles. House Minority Leader Chris England said he will keep pushing for changes with the state’s parole system and sentencing reform. Republicans said the other reform bill died because the short special session wasn’t the venue to debate it, but they’re open to future discussions. Separate from the new construction, lawmakers allocated $19 million for the purchase of a long-empty 730-bed prison in Perry County for the use of the Alabama

Scholarship Funds Available Now If you are a college student working part-time or a full-time employee with a child in college, scan the QR Code to access an application. This opportunity is available to full-time undergraduate students for the 2022-2023 Academic Year.

For more information on the different scholarships and their requirements, scan the QR Code or visit: https://alabamagrocers.org/foundation/scholarship- information/

Scholarship application and transcripts must be received by February 15, 2022.

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GOVERNMENT RELATIONS

S p e c i a l L e g i s l at i v e R e p o r t

PATRICK MCWHORTER LEGISLATIVE REPRESENTATIVE THE MCWHORTER GROUP

Governor Kay Ivey released her proclamation officially calling the Alabama Legislature into Extraordinary Session beginning October 28.

Counties) and in Baldwin County to the south. The preliminary data showed the largest population losses in the Senate and House districts were in the Black Belt, Jefferson, Montgomery, and Mobile counties. All of those legislative districts are currently held by Democrats. Two lawsuits have already been filed to force the legislature to create a second majority-minority congressional district. More lawsuits over the other maps are expected. Several announced candidates were drawn out of the districts they declared to run for, and at least one Republican’s district in Montgomery was flipped from R to D. Candidates planning to run for office in the 2022 elections must qualify with their party by Friday, January 28, 2022. The Primary Election will be held on Tuesday, May 24, 2022, the Primary Run-Off Election will be held on Tuesday, June 21, 2022, and the General Election will be held on Tuesday, November 8, 2022. Hospital Funding: The second issue included in the Governor’s call. Legislators considered and approved legislation to appropriate money from the state’s share of coronavirus relief funds, authorized by Congress in the American Relief Plan Act earlier this year. These funds will go to “support the delivery of healthcare and related services to the citizens

Governor Kay Ivey released her proclamation officially calling the Alabama Legislature into Extraordinary Session beginning Thursday, October 28. Both Houses met six legislative days out of the 12 allowed, passing seven major pieces of legislation. The Governor’s Call specifically stated the issues allowed to be introduced: redrawing districts for all state legislative districts (House and Senate), all Congressional districts, and all state School Board Districts. She also specified legislation to allot funds from the American Rescue Plan (COVID Relief) to state hospitals. However, with two-thirds of the members of each house voting to agree, members can add issues to their agenda. And they did, choosing to address and pass two vaccine-related bills and sending them to the Governor. Here’s the breakdown: Redistricting: The primary issue in the call is to draw new districts for all legislative (House and Senate), congressional, and state school board members. This process is mandated

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every 10 years by both the US and Alabama Constitution, but was held up due to delays in the US Census, with the necessary numbers only being received by the legislative committee in late August. Public hearings were conducted around the state to gather input, and a special committee developed and proposed maps that were passed with some changes by both Senate and House. Governor Ivey has signed the four bills into law. The state saw positive growth over the past 10 years, but the population has shifted within the state. That created some opposition, since the population has increased in cities and reduced in rural areas. The largest population growth is seen in North Alabama (Madison and Limestone

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an administrative law judge for the Department of Labor for denials of exemptions and provide for repeal of the act on May 1, 2023 unless extended by an act of the Legislature. • SB15 by Senator Arthur Orr would provide that a minor may not receive a COVID-19 vaccine without parental consent, to prohibit an institution of education from inquiring about a minor student’s vaccination status without parental consent, and to provide for enforcement by the Attorney General. Several major business groups opposed these pieces of legislation, saying that they interfere with businesses’ right to hire and fire employees. Legislators claimed that these

are a limited exception. Governor Ivey signed both bills into law Friday. The Legislature has adjourned sine die, and will return for the regular session on January 11, 2022.. ■

of Alabama related to the COVID-19 pandemic.”

Vaccine Mandates: House and Senate both voted

overwhelmingly to address issues concerning vaccine mandates, overriding the Governor’s limited call. Two bills were passed. • SB9 by Senator Chris Elliott would require employers to allow employees to claim an exemption from the COVID-19 vaccination for medical reasons or sincerely held religious beliefs, provide for a standardized exemption form, prohibit an employer from requiring a COVID-19 vaccine if an exemption form is completed and submitted, provide for appeals to

ALABAMA GROCER | 13

GOVERNMENT RELATIONS

2022 LEGISLATIVE AND REGULATORY AGENDA

family leave, predictive scheduling, employment discrimination and other labor issues. 12. Support state legislation that would prevent municipal and county governments from adopting or enforcing ordinances that will regulate the use, disposition, or sale of, prohibit, restrict, or imposes any fee, charge, or tax on plastic or auxiliary containers. Push for voluntary programs that will be beneficial for both retailers and consumers. 13. Defeat legislation that would require liquid goods tax and/or create bottle bills/consumption taxes at both the state and local level. In addition to just the tax, prevent retailers from having the burden of collecting and storing bottles for recycling purposes. 14. Defeat legislation that would put increases on licensing fees through Alabama regulatory agencies such as the Alabama ABC Board, Alabama Department of Agriculture and Industries, Alabama Department of Revenue, Alabama Department of Labor and Alabama Department of Public Health. 15. AGA will remain neutral on any lottery or gambling type legislation. However, AGA will ensure that retailers who will be collecting any funds be given a fair collection fee and fee for any winnings at their locations across the state. 16. Work at both the state and federal levels on Department of Transportation issues that are both burdensome and costly to the industry such as insurance and driver hour regulations. Continue to work with the Governor’s office when there is a State of Emergency to ensure that DOT hours are waived. ■

deter benefits for Alabama consumers. Also ensure that Alabama receives the maximum benefits during the COVID-19 pandemic. 6. Work at the state level to ensure that felony theft thresholds remain at $500 or below. In states like California where this has been recently increased, there has been a nearly 400% increase in theft incidents and empower organized retail theft. Organized retail theft rings steal billions of dollars of merchandise each year, victimizing retailers, endangering the safety of retail employees, and raising the price of consumer goods. 7. Work with other business organizations in the state regarding the testing and regulation of the use of medical marijuana in the workplace, how it relates to workers compensation and health insurance rates and coverages. 8. Prevent additional regulation from government on retailers, suppliers, wholesalers at the state and federal levels. 9. Defeat legislation that would increase new taxes on industry products such as tobacco, candy and soft drinks which are oftentimes easy targets. 10. Explore options with senior legislators, industry experts and the Alabama Alcohol Beverage Control Board on retail liquor privatization in our state. This could be a tremendous opportunity for grocery retailers and would decrease costs for consumers. Also start conversations with the Alcohol Beverage Control Board on a minimum of $1 million liability insurance for all those selling alcohol in our state. 11. Work at both the federal and state level on Labor Regulations. Oppose federal

1. Work with the Alcohol Beverage Control Board to complete work on a bill to allow off premise licensees including supermarkets and convenience stores to sell spirits-based Ready to Drink of at least 8% ABV. The bill must include franchise protections for distributors. 2. Continue to work with both Senator Waggoner and Representative Isbell on INFORM legislation. INFORM legislation establishes the crime of organized retail theft and provides for record keeping requirements for the sale and purchase of items sold and resold on third party platforms like Amazon. 3. The state of Alabama needs to adopt the federal rule on menu labeling to ensure that frivolous lawsuits are not filed on our members. This will be an update to the Food Code. Work with the Alabama Department of Agriculture and Alabama Department of Public Health on this legislation. 4. Explore the opportunity to use COVID funds received by the state of Alabama to fund Healthy Food Financing Initiatives for the expansion of supermarkets into underserved areas of Alabama. Now more than ever, the grocery industry has established that they are essential businesses for our community. 5. Work on both the federal and state levels on the Supplemental Nutrition Assistance Program. Ensure that we are preserving choice, staggering benefits, and eliminating fraud and improper payments without increasing the burden on the retail community. Ensure that benefits are preserved in a retail format and consumers are given flexibility in their shopping choices and Alabama receives the maximum benefits allowable for their consumers. Prevent bills that

and state mandates for minimum wage increases, employee leave, paid

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2022 ASSOCIATION EVENTS Mark your Calendars for AGA's Upcoming Events in 2022!

Feb r ua r y 3 - Buy A l abama ' s Be s t Re t a i l e r Luncheon The C l ub , B i rmi ngham, AL

Ap r i l 7 - AGEF Sp r i ng Go l f Ou t i ng I nve r ne s s Coun t r y C l ub , B i rmi ngham, AL

Ju l y 24 - 27 - AGA Annua l Conven t i on Sande s t i n Go l f & Beach Re so r t , De s t i n , FL

Oc t obe r 13 - AGEF Fa l l C l ay Shoo t Se lwood Fa rms , A l p i ne , AL

Oc t obe r 27 - A l abama ' s Food I ndus t r y F i ne s t The C l ub , B i rmi ngham, AL

For the AGA ROI document and to discover ways to get involved in each event, please email Jessica Brown at jbrown@alabamagrocers.org.

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INSIDE THE BELTWAY

T h e R e t u r n o f R e g u l at o r y R i s k

JENNIFER HATCHER SENIOR VICE PRESIDENT, GOVERNMENT AND PUBL IC AFFAIRS FOOD MARKETING INSTITUTE

gridlock in Congress and the difficulty in getting anything done legislatively. The result of this standoff is a f lood of new regulations that impact a broad swathe of food retail’s operations. In just the past few months, FMI and many of you, have provided comments on rulemakings in a host of areas including: • Payments (a Federal Reserve proposal to amend the regulation on debit card routing, driving competition); • Food Labeling (an FDA rule on a voluntary symbol depicting the nutrient claim “Healthy”); and • Pensions and Retirement (a PBGC rule on special financial assistance for troubled multiemployer pension plans). There are many additional proposed regulations in the pipeline and retailers need to be prepared to respond to them in order to head off bad regulation that can be even more costly to the industry. Regulators often don’t have much experience with food retail and how it operates, and they depend on good data and examples from retailers, wholesalers and suppliers to help them accurately gauge the impact of their proposals. One of the best examples of the value of engagement dates back to the Obama Administration’s rulemaking on grinding

Retailers need to be prepared for a renewed federal effort to regulate industry.

When the Biden Administration released the Spring Regulatory Agenda back in June, the Acting Administrator of the Office of Information and Regulatory Affairs (OIRA), Sharon Block, included a statement that painted a stark contrast with how she believed the previous administration viewed regulation: The last four years offered a clear lesson on what happens when the Executive Branch fails to uphold its responsibility to protect the American people. Our first regulatory agenda demonstrates our commitment to reversing this trend and using every tool available to meet the challenges of the moment and support a robust and equitable economic recovery. One of former President Trump’s first actions on entering office was to issue an Executive Order calling for federal agencies to repeal two existing regulations for every new one proposed. He ultimately was not successful in achieving this goal – it is pretty challenging to remove a regulation once it is on the books – but it did signal the administration’s overall attitude: they were all about deregulation.

After the furious pace of rulemaking during President Obama’s final years in office, this new approach felt like a welcome breather for businesses that were exhausted by compliance costs and regulatory risk. Regulation and enforcement didn’t stop, of course, but the pace slowed, and many industries felt like they had a more direct voice in helping to shape the rules that were promulgated. Combined with one of the strongest economies since the end of World War II, this deregulatory stance allowed many retailers to shift their focus away from the federal government and – often – towards state and local regulators who stepped in to fill the gap of the slower pace of rulemaking at the national level. But that brief respite is over. If that June release wasn’t a clear enough signal of the Biden Administration’s intentions, the months since have made one thing absolutely clear – robust regulation is back on the agenda and businesses need to be ready to respond on myriad fronts. This difference in approach is partially the result of differences in political philosophy, but it is also a ref lection of the

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INSIDE THE BELTWAY

“robust regulation is back on the agenda and businesses need to be ready to respond on myriad fronts.”

the way industry approaches working with government. Complaining about too much regulation is probably as old as regulation itself; considering how extensively the industry’s operations

logs. Originally, USDA estimated that filling out the logs would take mere seconds, which was ref lected in their estimate that the cost of the whole process would be negligible for the industry. FMI took several USDA officials to an actual store and walked them through the process – clocking their attempts to complete the grinding log; to their surprise filling out the logs actually took several minutes. This “discovery” was ultimately ref lected in a more accurate cost estimate and an overall better rule. Engagement and collaboration with regulators clearly paid off in this example and it should guide

iStock

current national environment, engagement with the regulatory process is every bit as much an investment in the future of your business as any equipment purchase or new construction. So keep your comments and your stories coming! ■

are subject to government oversight it is understandable that many retailers are frustrated with and dread the return of a kind of regulatory risk they simply did not face over the past four years. In the

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AGA NEWS

2021 ANNUAL CONVENTION

The Alabama Grocers Association recently held their 31st Annual Convention at the Sandestin Beach Resort in Destin, Florida. The Association brought members from all aspects of the grocery industry together to promote the growth and success of the food industry throughout the state of Alabama. The Monday business session included a Retail Survival Seminar by Norman Mayne, Dorothy Lane Markets; a Changes in Consumer Behavior Seminar with Michael Sansolo; a National Legislative Overview by Chris Jones from the National Grocers Association; and an Alabama Regulatory Panel Discussion which included the Alabama Department of Human Resources, Alabama Department of Public Health and Alabama Alcohol Beverage Control Board.

Mr. Norman Mayne Dorothy Lane Markets

Mr. Chris Jones National Grocers Association

Ms. Summer Childers Alabama ABC Board

Mr. Michael Sansolo Motivational Speaker

A silent auction and raffle were held Monday night which raised more than $22,000 for the Alabama Grocers Education Foundation. This year the Alabama Grocers Education Foundation awarded 37 scholarships valued at more than $37,500, and to date has awarded more than 1.3 million dollars in total scholarships. Awards given on Monday night included the National Grocers Association Spirit of America Award given to Senator Jabo Waggoner, Alabama State Senate, District 16. Chris Jones from the National Grocers Association also awarded Jimmy Wright, Wright’s Market with the Clarence G. Adamy Great American Award, the association’s highest award for government relations.

Jimmy Wright, Wrights Market and Chris Jones, National Grocers Association

Ellie Taylor, AGA President; Senator Jabo Waggoner , Alabama State Senator; and Chris Jones, National Grocers Association

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AGA NEWS

2021 ANNUAL CONVENTION

The Tuesday Business Session was held the following day and included a Diversity Seminar with Gianetta Jones from Coca-Cola Bottling Company UNITED, Inc.; a Drone Delivery Seminar with Ed Fienga from Deuce Drone; and an E-Commerce Seminar with Pat Hughes from e-Growcery.

Mr. Pat Hughes e-Growcery

Mr. Ed Fienga Deuce Drone

Ms. Gianetta Jones Coca-Cola Bottling Company UNITED

Tuesday afternoon also included an exhibit hall with more than 60 booths with vendors from all aspects of the grocery industry.

On Tuesday night, the Chairman’s Banquet was held with renowned comedian James Gregory as the celebrity entertainment. Several Awards were given including the Spirit of Alabama Award, presented to Mr. Greg Gregerson, Gregerson’s Foods for a lifetime of work in the grocery industry. Representative Gil Isbell and Senator Jabo Waggoner presented their Joint Legislative Resolution for Supermarket Employee Day, honoring the hard work performed by employees in the grocery industry during the COVID-19 pandemic to ensure communities had a safe place to get food and supplies. On Feb. 21 of this year, Gov. Kay Ivey declared Feb. 22 as Supermarket Employee Day to recognize the grocery industry’s tireless dedication to their communities. New Officers and Directors were installed.

Mr. Greg Gregerson of Gregerson’s Foods receiving the Spirit of Alabama award fromMr. Harold Garrett of Gateway Foods and Chairman of AGA.

Mr. Harold Garrett of Gateway Foods and Chairman of AGA receiving Resolution for Employee Supermarket Day from Senator Jabo Waggoner, State Senator and Rep. Gil Isbell, House of Representatives.

Jessica Brown, AGA Event Coordinator was recognized for 20 years of service.

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AGA NEWS

2021 AGEF Clay Shoot

The Alabama Grocers Education Foundation held their Annual Fall Clay Shoot on Thursday, October 14, 2021 at Selwood Farms in Alpine, Alabama. The tournament raised funds for the Alabama Grocers Education Foundation to provide scholarships to employees and children of employees of Alabama Grocers Association companies. To date, AGEF has awarded over 1.3 million dollars because of the tremendous support of our members.

The winners of the clay shoot were as follows:

First Place Team: EdLinco/Rudolph Foods Team.

Second Place Team: Bunzl Distribution Team.

Third Place Team: Post Consumer Foods Team.

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AGA NEWS

2021 AGEF Clay Shoot

The Alabama Grocers Education Foundation Clay Shoot would not be as successful without the many companies that sponsored this event and contributed their goods. The Presenting Sponsor for this event was Coca-Cola Bottling Company UNITED, Inc. Additional sponsors of the AGEF 2021 Clay Shoot included Alabama Power Company; Associated Grocers of the South; Associated Wholesale Grocers; Buffalo Rock / Pepsi; Bunzl Distribution; Byars | Wright Insurance; Cobbs Allen; EdLinco/Rudolph Foods; Federated Insurance; Keurig Dr. Pepper; Merrill Lynch; Mitchell Grocery Corporation; Piggly Wiggly Alabama Dist.; Post Consumer Brands; Red Diamond Coffee & Tea; Retail Data Solutions Mid-South; Sell Ethics; Smucker’s; Sunset Farm Foods and United Johnson Brothers (3 Teams).

Mike Hanson, Milo’s Tea & AGEF Board of Trustee Member with AGA Staff

We appreciate the companies that donated their products

for the goody bags and beverage cart. Companies included: Bevco Beverages; Bud’s Best Cookies; Buffalo Rock Company; Campbell Snacks; Chattanooga Bakery/Acosta Sales; Coca-Cola Bottling Company UNITED, Inc.; Figi Water; Frito-Lay; Flowers Baking Company; Golden Eagle Syrup; Golden Flake/UTZ Snacks; Merrill Lynch; Milo’s Tea; Perfect Hydration; Post Consumer Foods; Southern Recipe/EdLinco; Stratus Group and United Johnson Brothers. A special thanks to AGA Vice Chairman Bob Crawford of United Johnson Brothers and AGEF Trustee Member Bubba Lindley of EdLinco for running a new shooter seminar and the AGEF Trustee Member Mr. Mike Hanson of Milo’s Tea for helping with the beverages and running the beverage cart.

Coca-Cola Team

Please mark your calendars to join us next year at Selwood Farms on October 13, 2022.

Cobbs Allen Team

Alabama Power Team

Piggly Wiggly Alabama Distributing Company Team

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AGA NEWS 2021 AGEF Clay Shoot

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AGA Board Members Wade Payne, Food Giant and Jimmy Wright, Wright's Market meet with Alabama Congressman Jerry Carl, U.S. Senator Tommy Tuberville, and Congressman Gary Palmer at the National Grocers Association Fall Washington Fly-In.

Congratulations to AGA Board Members, Ellie Taylor, Lucy Greer, and Lynn Rushing on being named as Women of Influence in the Food Industry by The Shelby-Griffin Report.

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AGA NEWS

2021 Food Industry Finest Luncheon

The Alabama Grocers Association held their annual Food Industry Finest Luncheon on Wednesday, October 27 honoring their industry award winners. Speakers included Governor Kay Ivey and President and CEO of FMS Solutions Robert Graybill. The food retail industry in Alabama provides over 70,000 jobs with over $2.2 billion in annual wages paid. Grocers pay over $1.2 billion in state taxes and have a total economic impact on the state’s economy of over $12 billion. More than 150 people attended the event at The Club to discuss the work of the Alabama Grocers Association in 2021 and those in the food, beverage and grocery profession here in Alabama. The Alabama Grocers Association honored the following individuals with their year awards.

Governor Kay Ivey Keynote Speaker (Governor’s Office/ Hal Yeager)

The Retailer of the Year Award was presented to Bill Davis, Owner and Vice President of A&R Super Markets.

“It was an honor to represent our family and our company in being recognized as Retailer of the Year by our peers in the Alabama Grocers Association,” said Davis. “We appreciate everything AGA does for all of us retailers and our industry as a whole.”

The Wholesaler of the Year Award was given to Kirk Clark, Director of Merchandising for Mitchell Grocery Corporation.

“What an absolute honor for Mitchell Grocery to be recognized as Wholesaler of the Year in the State of Alabama,” said Clark. “Our entire team has a unique passion and determination to serve the independent retailer. The retailers depend on us to provide the goods and services needed as they serve and make a difference in their local communities.”

President and CEO of FMS Solutions Robert Graybill.

The Vendor of the Year award recipient was Bo Taylor, Vice President of Coca-Cola Bottling Company UNITED’s Central Region.

“This award from the Alabama Grocers Association is one of the personal and professional highlights of my career,” said Taylor. “However, this is truly a recognition of the hard work and dedication of our entire Coca-Cola UNITED team and affirms that we exist and excel for the benefit of our associates, con- sumers, customers and our communities.”

Year Award Winners

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AGA NEWS

2021 Food Industry Finest Luncheon

The Alabama Grocers Association has been honoring professionals making an impact in the grocery industry with these awards since 1996.

“Each of these fine individuals exemplify leadership and excellence in Alabama’s grocery industry.” said Ellie Taylor, President Alabama Grocers Association. “We are thankful for the opportunity to honor them and their commitment today.”

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Generations Multiple How to Navigate

in Your Stores and in Your Workplace

By Cam Marston Whether as customers or coworkers, generational clashes can hold your business back from reaching its potential.

the workplace and marketplace. We help our clients understand the constant changes of generational workplace and marketing preferences and our nation’s demographics. What one generation prefers in a marketing message may turn off another. Workplace incentives may appeal to one generation while disincentivizing another. It’s our job to highlight these differences for our customers across industries and work with them to solve the problems these differences create. “Fifty Years of Serving Customers” Vs. “Expect Stocked Shelves, Friendly Staff, and Competitive Prices Today, Tomorrow, and Onward” A point of pride for any business that’s been around for a while is its longevity. We see and hear this across industry: “Your local plumber since 1980.” “Serving customers for over twenty years.” “Celebrating the beginning of our next fifty years serving our community.” Etc. Businesses of all sorts that make it over “the hump” of longevity – whatever that is – tend to promote themselves this way.

I’ve enjoyed a funny meme making its way through social media these days. It says to hear the music of Generation X’s youth all you need to do is go to the grocery store. It’s playing as the background music while you shop. And, as it turns out, rightfully so. Generation X is the generation spending the most on groceries today. Born between roughly 1965 and 1979, the Gen X’ers are the ones with kids who can never be sated. Per the Bureau of Labor Statistics, Gen X is spending approximately $10,000 per year on groceries. The Baby Boomers and Millennials are each spending about $8,000. I know what I’m talking about. My wife and I have four teenagers and more than “Good morning,” “I’m going out with friends,” and “Can I have some money?” we hear, “There’s nothing to eat. We have no food. When are you going to the grocery store again?” though I may be standing in the kitchen loaded with grocery bags fresh from the third or fourth store run of the week. With four teenagers, I wish my wife and I spent only $10,000 per year. For over 20 years my firm has studied generational and demographic trends in

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