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Newsletter - Presence Marketing
August, 2016 Volume 13, Issue 08 Presence News East Inside this issue: Ahold-Delhaize Complete Merger with Selloff Royal Ahold of the Netherlands and Belgian-based Delhaize completed their ongoing merger last month after selling 86 stores in this country to seven different buyers. The selloff comes after the U.S. Federal Trade Commission's review of Ahold's agreed merger with Delhaize. The sales are subject to Federal Trade Commission approval, according to reports. Ahold and Delhaize announced plans to merge over a year ago into a company with more than 6,500 stores in Europe and the U.S. The deal worth $10.3 billion in cash and shares put Ahold’s Stop & Shop and Giant Food Stores under the same ownership as Delhaize's Food Lion and Hannaford banners. The 86 stores involved in the latest transaction are located in the eastern United States. The deal has 38 Food Lion stores in Delaware, Maryland and Virginia going to Pennsylvania-based Weis Markets, 22 Food Lion retailers in four states heading to Minnesota-based Supervalu, 10 Martin’s stores in Richmond, Virginia now the property of Florida-based Publix Supermarkets, and eight Hannaford locations going to Big Y of Massachusetts. Rounding out the agreements are Saubel’s Markets of Pennsylvania who gets one Food Lion in York, Pennsylvania, four Stop & Shop’s and a pair of Hannaford stores being sold to New York-based Tops Markets, and one Maryland Giant store purchased by New Albertsons- part of the Safeway/Albertsons group. Future plans for the effected locations are unknown at this time, but the shakeup drastically changes the supermarket landscape along the Eastern seaboard. OLD Logo NEW Logo OLD Logo East 1 2 5 8 9 10 11 12 14 15 16 16 17 Rocky Mountain Southwest West Northwest Midwest Distributor News Data Update Data Insights GMO News Expo East Milestones Help Wanted Special points of interest: Ahold-Delhaize Complete Merger – Page 1 Fairway Making Moves in Face of Struggles Whole Foods Market Releases 2017 Grocery Review Schedule – Page 5 A month after filing for bankruptcy, Fairway Group Holdings Corporation announced plans to close its Lake Grove, New York store after just two years of operation. According to published reports, the store was set to close by July 15th. Whole Foods Market Partners with IXONE – Page 5 Fairway has offered employees at the Lake Grove store transfers to stores in Plainview and Westbury, according to sources. The New York-based organic, natural and specialty retailer recently noted in a release that a second Brooklyn store, replacing the Waldbaum’s in Bergen Beach, was still on track to open in late 2016. Founded in the 1930s, Fairway Market currently operates 17 stores in New York, New Jersey and Connecticut. Robert Mariano to Retire – Page 10 Wegmans Delays Big Apple Opening New York-based Wegmans anticipated opening of its 74,000 square foot supermarket in the Brooklyn Navy Yard has reportedly been delayed until 2018 because the developer is still securing the necessary permits. Last month, Wegmans filed plans with New York City that included the entire first floor of a new five-story building in the trendy hub in Brooklyn. The store was originally scheduled to open in 2017. Founded in 1916, Wegmans currently has 89 stores in the Mid-Atlantic and New England regions, which include New York, Pennsylvania, New Jersey, Maryland, Massachusetts, and Virginia. © 2016 Presence Marketing, Inc. Raley’s and Save Mart Make Forbes List – Page 8 Willy Street to Open Third Location – Page 10 UNFI Named to Food Logistics 2016 Top Green Provider List – Page 11 2017 UNFI Table Top Show Dates – Page 11 2017 KeHE Show Schedule – Page 11 Data Team Looks at Promos – Page 12 Whole Foods Market Returns to “Cooperator Status” – Page 14 GMO Labeling Law Update – Page 15 1 1356 15789 Livingston Road Accokeek MD 784 45315 Alton Lane California MD 2515 20995 Point Lookout Road Callaway MD 2598 5896 Robert Oliver Place Columbia MD 1549 15300 Mcmullen Hwy SW Cumberland MD 1289 219 Marlboro Avenue Easton MD Weis Makes Largest Acquisition in Company’s History 1315 3261 Solomons Island Road Edgewater MD 6375 Monroe Avenue Eldersburg MDthe Sunbury, Pennsylvania-based Weis Markets took top billing last month acquiring 1324 38 new stores from Ahold-Delhaize in what is being called 1529 6551 Waterloo Road Elkridge MD largest single acquisition in the company’s history. The retailer also recently purchased five Mars in Baltimore County, Maryland. When both 1187 17600 Old National Sq Pike Frostburg MDpurchases are complete, Weis Markets will have increased the number of its operating stores by more than 25% and will operate 203 stores in seven 1345 16567 South Frederick Road Gaithersburg MDstates 1477 883 The Russell Avenue is a list of Gaithersburg including Pennsylvania, Maryland, Virginia, New York, New Jersey, Delaware and West Virginia. following Food Lion store MD locations 1168 100 Drury Drive La Plata MD Weis Markets intends to purchase in the agreement with Food Lion, LLC 1210 19 St. Mary’s Square Lexington Park MD Store # Address City State Store City State 2606# 210 H GAddress Trueman Road Lusby MD 2565 17232 N Village Main Blvd Lewes DE 2565 17232 N Village Blvd Lewes DE 1387 12100 CentralMain Avenue Mitchellville MD 960 24832 John J Williams Hwy Millsboro DE 960 24832 John J Williams Hwy Millsboro DE 2535 9251 Lakeside Boulevard Owings Mills MD 1321 36731 Old Mill Road Millville DE 1321 36731 Old Mill Road Millville DE 1526 750 Prince Frederick Blvd Prince Frederick MD 488 19287 Miller Road Rehoboth Beach DE 786 1019287 Village Center Road Reisterstown MD 488 Miller Road Rehoboth Beach DE 1356 15789 Livingston Road Accokeek MD 1443 13300 G TruemanRoad Road Solomons MD 1356 15789HLivingston Accokeek 784 45315 Alton Lane California MD 1535 571545315 Crain Highway Upper Marlboro MD 784 Alton Lane California 2515 20995 Point Lookout Road Callaway MD 250 50520995 Meadowbrook Shopping Culpeper VA 2515 Point Lookout RoadCtr Callaway MD 2598 5896 Robert Oliver Place Columbia MD 1567 540 Culpeper TownPlace Mall Culpeper VA 2598 5896 Robert Oliver Columbia MD 1549 15300 Mcmullen Hwy SW Cumberland MD 1235 10601 Spotsylvania Avenue Fredericksburg VA 1549 15300 Mcmullen Hwy SW Cumberland MD 1289 219 Marlboro Avenue Easton MD 419 10611 Courthouse Road Fredericksburg VA 1289 219 Marlboro Avenue Easton MD 1315 3261 Solomons Island Road Edgewater MD 2583 10871 Tidewater Trail Fredericksburg VA 1315 3261 Solomons Island Road Edgewater MD 1324 6375 Monroe Avenue Eldersburg MD 358 282Monroe Deacon Avenue Road Fredericksburg VA 1324 6375 Eldersburg MD 1529 6551 Waterloo Road Elkridge MD 450 4153 Plank Road Fredericksburg VA 1529 6551 Waterloo Road Elkridge MD 1187 17600 Old National Sq Pike Frostburg MD 1043 515 Jefferson Davis Highway Fredericksburg VA 1187 17600 Old National Sq Pike Frostburg MD 1345 16567 South Frederick Road Gaithersburg MD 1579 7100 Boulevard Fredericksburg VA 1345 16567Salem SouthFields Frederick Road Gaithersburg MD 1477 883 Russell Avenue Gaithersburg MD 1243 736 Road Fredericksburg VA 1477 883 Warrenton Russell Avenue Gaithersburg MD 1168 100 Drury Drive La Plata MD 1177 9801 Courthouse Road Spotsylvania VA 1168 100 Drury Drive La Plata MD 1210 19 St. Mary’s Square Lexington Park MD 1166 261219 Jefferson Davis Highway Stafford VA 1210 St. Mary’s Square Lexington Park MD 2606 210 H G Trueman Road Lusby MD 578 905 Road Stafford VA 2606 210 Garrisonville H G Trueman Road Lusby MD 1387 12100 Central Avenue Mitchellville MD 1387 12100 Central Avenue Mitchellville MD 2535 9251 Lakeside Boulevard Owings Mills MD 2535 9251 Lakeside Boulevard Owings Mills MD Fourth1526 Generation Organic Market andPrince Café OpensMD Second Store 750 Prince Frederick Blvd Frederick 1526 750 Prince Frederick Blvd Prince Frederick MD 786 10 Village Center Road Reisterstown MD 786 10 Village Center Road Reisterstown MD 1443 13300 H G Trueman Road Solomons MD 1443 13300 H G Trueman Road Solomons MD The Boca Raton area in South Florida now has two 4th Generation Organic Market and 1535 5715 Crain Highway Upper Marlboro MD 1535 5715 Crain Highway Upper Marlboro MD Café stores after the highly touted opening of their sister location. The new store is located 250 505 Meadowbrook Shopping Ctr Culpeper VA 250 505 Meadowbrook Shopping Ctr Culpeper VA in West1567 Boca Raton 540 at 9200 Glades Road, right near the FloridaVA Turnpike. At 12,000 Culpeper Town Mall Culpeper 1567 540 Culpeper Town Mall Culpeper VA Spotsylvania Fredericksburg VA meat department, square 1235 feet, it is a 10601 full service store Avenue including a café, fresh seafood, 1235 10601 Spotsylvania Avenue Fredericksburg VA 10611 Courthouse Road focusedFredericksburg VA one of the first 419all10611 Courthouse Road Fredericksburg VA juice bar,419 bakery and more. The organic retailer introduced 2583 10871 Tidewater Trail Fredericksburg VA 2583 10871 Tidewater Trail Fredericksburg VA organic 358 prepared foods and juice bars to South Florida when they opened their first store 282 Deacon Road Fredericksburg VA 358 282 Deacon Road Fredericksburg VA and they450 are looking to4153 keep the momentum going. Plank Road Fredericksburg VA 450 4153 Plank Road Fredericksburg VA 1043 515 Jefferson Davis Highway Fredericksburg VA 1043 515 Jefferson Davis Highway Fredericksburg VA 1579 7100 Salem Fields Boulevard Fredericksburg VA 7100 Salem Fields Boulevard Fredericksburg VA It is a labor of love for the owners who started inFredericksburg the industry 32 VA years ago. The1579 story 1243 736 Warrenton Road 1243 736 Warrenton Road Fredericksburg VA goes that owner Ben9801 Litowich, only 16 years old at the time, borrowed $200 to start a 1177 Courthouse Road Spotsylvania VA 1177 9801 Courthouse Road Spotsylvania VA produce1166 company2612 in Benton Harbor, Michigan. In 1945, his son Bud, the Jefferson Davis Highway Stafford VA joined him in1166 2612 Jefferson Davis Highway Stafford VA 578 905 Garrisonville Road Stafford VA 578 905 Garrisonville Road Stafford VA business and they became one of the most respected produce firms in the industry. In 1962, they moved the headquarters to Pompano Beach, Florida. Thirty-four years later, the fourth generation of the family opened the company’s first retail market in Boca Raton, and as they say, the rest is history. Whole Foods Market Florida Personnel Update Lisa Tosun, Regional Grocery Buyer at the Whole Foods Market Florida region, has accepted a regional grocery position with Whole Foods Market South Pacific. Tosun started her new position on August 1st. Prior to her new appointment, Tosun worked in the Florida region for 19 years. She began her career with Whole Foods Market as a front end supervisor, moving up to customer service team leader, and eventually made her way onto the regional grocery team nearly ten years ago. Tosun has held the grocery buyer role in Florida for the last eight years, earning a Regional All Star award in 2015. She has an excellent feel for the food industry, exceptional organizational skills and enough experience to make her an immediate asset to the South Pacific team. Rocky Mountain Sprouts Loveland at Long Last Sprouts Prescott Announced After some delays and controversy, the Sprouts Farmers Market in Loveland, Colorado has opened its doors. On June 29th, the 26,404 square foot store at 1440 East Eisenhower Boulevard opened to awaiting crowds. The store is slightly smaller than average due to the limitations of the site where it was built, but makes up for it in prime location. The store becomes Sprout's 240th store in the nation and includes Sprouts' latest features such as a salad bar, juice bar, coffee bar, and expanded meal-ready selections. Sprouts Farmers Market will redevelop a former Haggen's location in the Depot Market Place in downtown Prescott, Arizona. The remodel of both the interior and exterior of the building is starting soon, and the new store hopes to open its doors in March of 2017. © 2016 Presence Marketing, Inc. 2 Showtime for Sprouts in Las Vegas The curtain went up for Sprouts Farmers Market's sixth store in the Las Vegas area on June 29th. The new store is located at 7530 West Lake Mead Boulevard, in a former Haggen's location. At 37,000 square feet, it is now the largest Sprouts in town. Over 200 shoppers lined up for the 7:00 A.M. ribbon cutting to take advantage of great deals throughout the store. Sprouts is working with Three Square Food bank to donate unsold but edible foodstuffs from all of its Vegas locations. Natural Grocers Gilbert Times Two Natural Grocers Academy Move Complete Natural Grocers by Vitamin Cottage opened two stores in the town of Gilbert, Arizona on July 12th. One store is at 1625 East Williams Field Road, and the other is at 2151 East Baseline Road, both in former Fresh and Easy locations. The beautiful new stores feature test kitchens and community rooms. Natural Grocers by Vitamin Cottage on North Academy Boulevard in Colorado Springs completed its move down the street. The new location, at the site of a former Ethan Allen, is at 7298 North Academy Boulevard. The old store was located a half mile away 7690 North Academy. The move reflects the chain's trend towards free-standing buildings and allows the new space to reflect more of their current store design and layout. The 18,000 square foot store is about 2,000 square feet larger than the previous location. Natural Grocers Mission Trace Remodel On July 7th, the Natural Grocers by Vitamin Cottage at 3333 South Wadsworth Boulevard in Lakewood, Colorado, a suburb of Denver, celebrated its newly remodeled store. Lucky shoppers received mystery gift cards, and all shoppers enjoyed exploring the new space while listening to the sounds of local band Jakarta JK4. The brightly remodeled store has almost doubled in size and features an expanded product selection and a beautiful community space. They are still working on completing the facelift on the store front, which should be finished by the end of this year. © 2016 Presence Marketing, Inc. 3 Natural Grocers Moving to South Nevada in Colorado Springs Plans have been confirmed for Natural Grocers by Vitamin Cottage to move to a new 3.7acre development called the Broadmoor Shoppes, southwest of Nevada and Navajo Streets in Colorado Springs. The development will also include a Chick-fil-A, Mad Greens, and Zoe’s Kitchen. The area is part of a 100-acre urban renewal site declared by the city in November. The store will be in a new 15,000 square foot stand-alone building, and will be a relocation of the store at the Southern Cross shopping center just a few blocks south. Other developments in the area will bring new townhomes, apartments, a hotel, and additional retail and restaurants. Whole Foods Market Rocky Mountain Office Moving to Denver Whole Foods Market Rocky Mountain is moving its home office from Boulder, Colorado to downtown Denver in the former Centennial School Supply building. They will renovate the 38,000 square foot building at 3012 Huron Street in LoDo north of Coors Field and not far from Union Station and their future flagship store slated to open nearby. The turn-of-the century three-story brick building will receive new windows, roof, insulation and highefficiency HVAC as a part of the transformation to the region's new home office. The millennial-minded finished space will include 9,000 square feet of common amenity space for employees, and will sport a rustic brick-and-timber interior. It will be somewhat smaller than their current 45,000 square foot office in Boulder. The move will happen in early 2017. Spokesperson Heather Larrabee said, “We feel like it’s really exciting to move to Denver with so much exploding on the culinary scene and the development scene...For our producer partners who fly in for meetings, this will be much more accessible for them. People can take the plane to the train and then a quick Uber to our office.” Whole Foods Market Coming to Tempe Whole Foods Market received city council approval to open a store in downtown Tempe, Arizona, near Arizona State University. The 41,000 square foot store will be located at the ground level of a new nine-story building called the Foundry. The currently vacant lot was formerly the home of the Gentle Strength Cooperation store at University Drive and Ash Avenue, in an area considered to be a food desert since Stabler's Market and a co-op market closed in the early 2000s. Whole Foods Market has been working on bringing a store to the site for several years. The new store hopes to open in the spring of 2018. Clark’s Market Aspen Remodel Revealed On July 1st, the Clark's Market in Aspen, Colorado, unveiled a refreshed store. The remodel added more natural items to their sets, similar to the Snowmass and Telluride stores that have already completed remodels. Higher shelves allowed for a 10% to 15% increase in product selection. The floor-to-ceiling remodel added gelato and coffee bars at the entrance to the store, upgraded bakery and deli, an expanded selection of grab-and-go items, and organic produce offerings. Eco-friendly improvements include energy-efficient LED lights, and an air conditioning system that uses a third of the energy of the old unit. President Tom Clark said, “This truly is Aspen’s grocery store. I don’t think it has an equal.” Jackson Whole Grocer Marks Two Year Anniversary Jackson Whole Grocery in Jackson Hole, Wyoming, celebrated two years in their new location on June 26th. The store has become a member of INFRA and has welcomed a new General Manager, Kim Prall, former Director of Operations for New Leaf Community Markets in Santa Cruz, California. The store's new location has been a hit, and won "Best of Jackson Hole" for customer service, eco-friendly features, produce, soups, and vegetarian food. The new location brought expanded and upgraded selections throughout the store, added indoor and outdoor seating, and boasts many green features such as LED lights, a "Green Chill Certified" glycol refrigeration system, and chemical-free maintenance of the flooring. © 2016 Presence Marketing, Inc. 4 Whole Foods Market Releases 2017 Category Review Schedule for Rounds 1 to 3 Southwest Whole Foods Market has released their Q1 2017 category review schedule. In a departure from previous years they are opting to release the schedule in stages in order to give themselves more time to plan the year out. Notable timing changes for this year so far are that cookies and crackers have moved up to Round 2 and baking has moved up to Round 3. Also, Whole Foods Market has tightened up their decision timeline by shifting their review calls to the same month as the national review meetings in Austin. At this time, all categories are being reviewed in the same way as they have been in past years and are not yet being added to the national category management initiative. Future category reviews from Round 4 and onward are TBD and will be announced at a later date. Here is a summary of the categories scheduled so far: • Round 1 – Due August 10th – Salty snacks, yogurt, kefir • Round 2 – Due September 12th – Dairy functional beverage/juices, bread/tortillas, cookies, crackers • Round 3 – Due October 10th – Baby, coffee (excl. RTD), tea (excl. RTD), baking Regarding national category management, Whole Foods Market has provided this update: “We’ve shared our vision of the Purchasing Evolution and want to update you on where we are in the process. As a reminder, over the next year we will create one purchasing team with category managers, regional buyers and exclusive brand buyers. Category mangers will be responsible for the overall category strategy (with input from regional and exclusive brand buyers), partnerships with national suppliers, setting the national assortments and accountability for total P&L. Regional buyers will curate and manage regional products and exclusive brand buyers will curate and develop exclusive brand skus. This approach will help us enhance local relevance as regional buyers will focus on co-developing local offerings and cultivating local supplier relationships. The global category managers focus on the national brands along with a direct partnership with exclusive brands. As we evolve, we’ll free up our store teams to focus even more on our customers and improve our execution of programs. Currently we’ve built out our Frozen Purchasing Team and are piloting Frozen in Rocky Mountain and Northern California in October with a roll out to all regions sometime next year. We will continue to build out the purchasing teams, and pilot categories in this new program over the coming year. Until the new category teams come online it will be business as usual.” Also, there have been new hires to the Global Grocery Team. Rick Findlay, previously the Southwest Region’s VP of Purchasing and Marketing, is now the Executive Global Grocery Coordinator over the Legacy Program. Dan Epley, previous the Director of Food and Beverage at Target, is the Executive Global Grocery Coordinator of the Category Management Pilot Program. Jessica Vasquez, formerly of Presence Marketing/Dynamic Presence’s Global Whole Foods Team, is now the Promotions Team Leader at Whole Foods Market. If you have any questions about the new schedule, changes, and how they may affect your brand, please reach out to your Presence Marketing/Dynamic Presence’s Lorraine Kayser at lkayser@pmidpi.com, Rob Browning at rbrowning@pmidpi.com, or Shilpa Sharda at ssharda@pmidpi.com. To see the full category breakouts please double click the paperclip icon (Adobe Reader): Whole Foods Market Partners with IX-ONE Don Clark, Whole Foods Market Global Vice President of Procurement, released the following statement in July: Hello Whole Food Market Suppliers, Whole Foods Market is partnering with IX-ONE to acquire consistent, accurate, extensive, and standardized information and images of your products. This new requirement is a great opportunity for Whole Foods Market and suppliers to work together to streamline our processes, enhance our capabilities, and move us forward with improved information for our customers and internal teams. IX-ONE will work directly with you as a U.S. supplier (at this time Canadian suppliers selling products to our Canadian stores will not be participating with IX-ONE) to capture over 1,000 product attributes. These attributes include nutritional information, certifications, images, dimensions, case pack information, and much, much more. This information will provide Whole Foods Market easy access to enhance certification review, review ingredients, utilize content for e-Commerce, validate UPCs and support many other initiatives. Long term I expect this will create more time for our teams to work together on strategically driving the business while being backed up with accurate and seamless data. For more information about IX-ONE, feel free to visit http://www.IXONE.net/Wholefoods/ or contact Presence Marketing/Dynamic Presence’s Nikki Nolbertowicz at nnolbertowicz@pmidpi.com. Fiesta Mart Acquires 11 Minyard, Sun Fresh Supermarkets Houston-based Fiesta Mart announced that it is purchasing nine Minyard Food Stores and two Sun Fresh Market locations in North Texas from RLS Supermarkets. The acquisition is part of Fiesta’s strategic growth plan publicized early last year. After the sale is complete, Fiesta Mart will operate 70 stores in Austin, Dallas-Fort Worth and Houston. The newly acquired Minyard and Sun Fresh stores will transition to the Fiesta banner, effectively retiring the Minyard brand – one of the oldest grocery names in Dallas. These are not the first Minyard stores to be acquired by Fiesta Mart. In 2008, under previous ownership, Minyard sold its Hispanic-focused Carnival banner to Fiesta Mart. RLS Supermarkets of Carrollton owns the eight remaining Sun Fresh Markets, which will no longer be affiliated with the Minyard Food Stores brand. Fiesta’s CEO Michael Byars is familiar with the Minyard banner, having spent three years as the company’s CEO. "I believe we can take those stores and make them better with some capital, improved assortment and mix of products," Byars stated. "Our entire Fiesta team has worked together to move the brand forward organically, and now through acquisition we continue on our growth plan. "Starting the first week in August, Byars will take two months two transition the Minyard and Sun Fresh supermarkets to the Fiesta banner. The current goal is to reset two stores a week, with complete remodels starting at a later date. AWG will continue to supply the newly acquired locations along with Fiesta’s primary supplier, Grocery Supply Co. © 2016 Presence Marketing, Inc. 5 Whole Foods Market Shoppers Raise $3.26 Million to Alleviate Global Poverty This spring, Whole Foods Market Foundation launched its annual “Prosperity Campaign” aimed at alleviating global poverty. With the support of their customers, team members, suppliers, and online donors, Whole Foods Market has raised nearly $3.2 million dollars for the effort. Put into perspective, that’s over 94,000 people in 70 developing countries benefited by way of microloans. Additionally, the foundation is solely funded by Whole Foods Market, ensuring 100% of every dollar raised is put towards advancing those in need. The campaign is still live and those able are encouraged to donate and help reach the $3.5 million target goal. If interested, please visit https://www.wholeplanetfoundation.org/2016-prosperity-campaign/ to learn more. Whole Foods Market El Paso Underway Whole Foods Market's El Paso location is on track to open this fall. The store will be a part of a 90,000 square foot development called La Villita. The 50,000 square foot store will be El Paso's first Whole Foods Market, and the community is excited to welcome the store. As a part of an agreement with Whole Foods Market, only two restaurants will be allowed in the remaining development, which is almost fully leased at this point. The restaurants will be a Chipotle and La Madeline Country French Café. United Family to Invest $100 Million into Texas Market The United Family of stores has announced plans to invest $100 million into its headquarter city of Lubbock, Texas. The investment will include an expansion of the company’s distribution center, seven store remodels and a new ground-up store. The company revealed its multi-million-dollar campaign in a news conference at its Lubbock-area distribution center. Out of the nine United stores in Lubbock, seven are undergoing an immediate remodel, which United Family president Robert Taylor says will be completed in the fall. Stores will remain open during renovations and some will include in-store Starbucks cafes. Additionally, United plans to develop a brand new store in Lubbock at Fourth Street with space available for other retail tenants. The company will break ground on the new store in the fall. Most notably, The United Family is adding 200,000 square feet to the existing distribution facility, which will cost an estimated a $33.7 million. Chris St. Clair, United Executive Vice President of Logistics and Information said, "It’s a 500,000 square foot facility today. We’re adding to the north, to the south and in between – everywhere you go we have a project going on. The new building addition is important to United because it has allowed us to expand our store count and our impact to our region.” This year marks United Supermarket’s 100th year of operation, in which time is has grown to serve 41 communities in West Texas, Dallas-Fort Worth and New Mexico. H-E-B Houston Installs Natural Gas ‘Microgrid’ Backup Generators H-E-B is currently solidifying plans that will keep 45 stores in the Houston area operational in the event of a power failure. The San Antonio-based grocery giant has solicited the services of Texas Microgrid and Enchanted Rock On Demand Electric Reliability for use of a natural-gas-powered microgrid that will serve as a backup generator when the normal utility is down. H-E-B is one of the state’s largest philanthropic companies and prides itself on providing relief to Texas citizens in times of natural disaster. Power outages are a regular occurrence in the Gulf Coast region, which is susceptible to critical weather events such as tropical storms, hurricanes, flooding and high winds. Earlier this year, the Houston-area was subject to heavy rains and flooding which lead to area-wide power outages. Keeping stores open during these times is a win-win for H-E-B and the community. “Providing aid in times of disaster is the cornerstone of H-E-B's Helping Here philosophy, which promises to stand by communities during times of need,” reads a statement from the company. “Keeping our stores open in times of need strengthens our ability to serve our communities.” Providing electricity, food, water and critical services to residents in times of need is another way H-E-B continues to be a cornerstone of the communities it serves. Northernmost H-E-B Planned for Mansfield In recent years, H-E-B has strategically purchased parcels of land in North Texas for an anticipated move into the area grocery market. No plans for a major expansion have officially been released; however, H-E-B confirmed last month that it will anchor a new shopping center in the north Texas City of Mansfield, a suburban city on the southern edge of the Dallas-Fort Worth Metroplex. The new ground-up location will be the farthest north H-E-B store, not including the grocer’s specialty Central Market banner. The new supermarket will be between 80,000 and 106,000 square feet and will anchor a 5.5-acre development of retail space and restaurants. “This project represents another clear indication of how Mansfield is living up to its ‘best places to live’ designation,” Mayor David Cook said. “The caliber of commercial and residential projects coming to our city is among the best.” Construction for the development at the southeast corner of East Broad Street and U.S. 287 will begin no later than 2019. © 2016 Presence Marketing, Inc. 6 First Kroger-Branded C-Store Opens in Texas College Station is the site of the first convenience store under the Kroger banner in Texas. It is located within two miles of a conventional Kroger supermarket and features 16 gasoline pumps. Additional Kroger-branded convenience stores are in the planning stages, with locations yet to be announced. The company also operates several other c-stores in Texas under its Kwik Shop banner. Kroger targets small to medium sized towns near interstate highways for its convenience stores. The majority of the company’s c-stores are located in towns with fewer than 75,000 residents. The Cincinnati-based retailer operates approximately 2,780 supermarkets with 1,390 fuel centers under a variety of banners in 35 states and the District of Columbia. It has approximately 785 convenience stores in 19 states under six banners: Kwik Shop, Loaf N' Jug, Quik Stop Markets, Tom Thumb Food Stores, Turkey Hill Minit Markets and Smith’s Express. Brookshire Brothers Announces Four New Stores In the midst of celebrating its 95th anniversary, Brookshire Brothers announced the opening of four new Express stores, with the first store opening this October in Grapeland, Texas. The smaller, convenience-minded stores will be tailored to meet the particular needs of the rural communities they serve. John Alston, Brookshire Brothers COO, is excited to add community-driven express stores to their already diversified catalog, noting that the smaller format allows for even more flexibility. “As a result of an outpouring of requests from the people of Grapeland, their store will be our first Express location to include a pharmacy. ‘Wellness Delivered’ is what our pharmacies are known for and we are excited to be able to provide solutions for health and wellness in northern Houston County.” The remaining three stores are promised to come in quick succession following Grapeland’s completion and are earmarked for Wells, Valley Mills, and Hudson, Texas. Collectively, the stores are expected to employ more than 130 people and will offer patrons an impressive assortments of fresh meats, produce, prepared foods, dry grocery, dairy, frozen, general merchandise, and health and beauty products, as well as extended services including check cashing, money transfers, ATMs, and money orders. Brookshire Brothers is Lufkin-based and employee-owned with roughly 110 stores throughout Texas and Louisiana. Current holdings include grocery stores, convenience stores, tobacco shops, pharmacies, and fuel stations under nine unique banners: Brookshire Brothers, Brookshire Brothers Express, Cormie’s, David’s Supermarkets, David’s Express, Pecan Foods, Polk Pick-It-Up, Brookshire Brothers Pharmacy, and Tobacco Barn. Natural, organic and specialty sales are limited to a select number of upmarket locations. Albertsons Reopens as Market Street in San Angelo While many areas are suffering from the dreaded grocery desert – San Angelo, Texas has retailers to spare. Market Street joined the growing list of banners servicing over 100,000 residents, including H-E-B, Super Mercado, Greens Grocery, La Azteca Meat Market, Albertson’s, an Asian Market, a local farmers market, two Lowe’s Supermarkets, and five Walmart stores. San Angelo’s Market Street opened late June after an extensive remodel of the 1980s building it now calls home. The building was previously a second Albertson’s in the area but was slated for conversion after Albertson’s acquired United Supermarkets in 2013. Even under Albertson’s daunting shadow, Market Street has been successful in defining itself; emerging in the market as the customer-centric option for health-conscious shoppers. For starters, the store went from 130 to 330 employees after the banner change, regardless of not adding any square footage to the existing format. The new open-layout features bright lighting, new wood flooring, wider aisles for ease of shopping, a café, and a Starbucks. In addition to a much larger organic set, offerings have been expanded to include a wide range of specialty items, gourmet cheeses, sushi, herbal and homeopathic supplements, an extended bakery, and extensive wine and beer selections. Most notable is their bulk section revamp which is highlighted with fun but unconventional finds like vinegar, syrup, honey, agave nectar, and loose leaf teas. Though still in its infancy, San Angelo’s Market Street has already been greeted with much enthusiasm from local residents and is sure to be a powerhouse in the community. WinCo Adding North Texas Stores, Distribution Center In order to service the growing North Texas region, the Idaho-based WinCo Foods is building an 830,000 square foot distribution center in Denton, Texas. The new distribution center will supply 25 to 35 WinCo stores and will be capable of supporting $1.5 million in sales each week, the Dallas Morning News reported. Employee-owned grocer also announced it is opening two new stores in North Texas – one in Denton and another in Arlington, Texas. © 2016 Presence Marketing, Inc. 7 Rouse’s KeHE Warehouse Changes to Flower Mound Beginning August 21st, KeHE Distributors will begin shipping product to Rouses from DC 42 in Flower Mound, Texas instead of the DC 22 location in Dallas, according to KeHE Account Manager for Rouses, Rhonda Bernier. For more information on how this change will affect your products, contact Presence Marketing/Dynamic Presence’s Account Executive Kim Strarup at kstrarup@pmidpi.com. Whole Foods Market Opens in Santa Clara West On July 26th, Whole Foods Market opened a new location in Santa Clara, California, their first in the city and sixth for Silicon Valley. Located near the intersection of Highway 101 and Bowers Avenue, it is 50,000 square feet in size and therefore qualifies as a flagship store. It anchors a newly developed 125,000 square foot shopping facility, which is close to a popular theme park, university, and a recently built sports stadium. “With a dense residential and business community, Santa Clara University, California’s Great America, and Levi’s Stadium all in close proximity to the store, this is an exciting location for Whole Foods Market,” said Rob Twyman, President of Whole Foods Market’s Northern California Region. “We can’t wait to open our doors to this rapidly growing community.” Santa Clara Mayor Jamie Matthews stated, "Santa Clara is hungry for great organic markets like Whole Foods Market…We've focused so much attention over the years on attracting the companies that drive the world's economy, but it's only been in the last four years that we put a focus on a retail strategy to attract these retailers and grocers to Santa Clara." During the last year, a Sprouts, Walmart, and Target has also opened. Housing and office developments will also drive the need for more retail establishments. Raley’s Announces New Flagship Store in Truckee Raley’s has announced plans to open a 35,000 square foot flagship store in south Truckee, in a planned community development known as Joerger Ranch, next to the Truckee Tahoe Airport. Construction would start late 2017, with an opening date of mid-2018. The store will embody an Alpine theme, with natural wood elements and lodge-style architecture. It is estimated that the project will bring 140 jobs to the area. “This location is just perfect. People in the Truckee area… who want to go shopping are faced with either having to go to Kings Beach, or downtown Truckee where they have to fight the traffic and the parking and everything else,” said Art Chapman, founder of JMA Ventures, who is partnering with Raley’s on the project. “This area (Joerger Ranch) really does need a full service grocery store.” The plan is still subject to town of Truckee approval, but if given the green light, it will be the fourth Raley’s store in the greater Tahoe-Truckee area, joining two locations in South Lake Tahoe, and another in Incline Village. Four underperforming stores were closed in 2015 – a Raley’s in Winnemucca, Nevada; the Raley’s at 4551 Mack Road in south Sacramento; a Nob Hill Foods in San Jose; and a Raley’s in Newark. The company now operates over 120 stores in Northern California and Nevada, under the Raley’s Supermarkets, Bel Air Markets, Nob Hill Foods and Food Source banners. Albertsons, Ralphs, Vons Strike in Works Grocery workers in Southern California voted late June to authorize strikes against Albertsons, Ralphs and Vons. Votes have taken place in San Diego, Riverside, San Bernardino, and Los Angeles counties involving between 50,000 and 60,000 employees. The workers are part of the United Food and Commercial Workers union (UFCW) and have been working without a contract since March 6th. Issues include pay raises, cuts to holiday pay with companies pushing to raise the early retirement age from 60 to 65. No date has been announced for the strike. Raley’s, Save Mart Make Forbes List Modesto-based Save Mart, and Raley’s, headquartered in West Sacramento, have made Forbes magazine’s annual list of the U.S.’ largest privately owned companies. Save Mart had $4.5 billion in annual revenue in 2015, placing it in 91st place on the list, with Raley’s ranked No. 135, at $3.2 billion. © 2016 Presence Marketing, Inc. 8 Safeway Grocery Site Ranks #1 in Customer Engagement Online shopping’s growing popularity in the food industry is evidenced by the fact that Safeway topped the list of the 10 most popular U.S. shopping list in June. According to SimilarWeb, Safeway’s grocery delivery website averages more than 22 pages per visit, with the visit duration averaging over 15 minutes. Shoppers can find recipes, browse groceries by aisle, and schedule one-hour delivery. Pavel Tuchinsky, SimilarWeb’s Digital Insights Manager, says, “Despite the fact that in the recent years, other companies like Amazon (Amazon Fresh) and Walmart entered this niche, Safeway manages to drive the highest engagement when it comes to the online sector.” New Site for Natural Grocery Store on Capitol Hill – Central Co-op or New Seasons Northwest The City of Seattle has a plan for a new mixed-use development at the coming Light-Rail station on Capitol Hill. With the expanding development of the Light-Rail system in Seattle, there is the opportunity for the anchor tenant of this station to be a natural grocery store. This underground station will have a serious above-ground development that includes retail spaces, 418 apartments in four buildings, a public plaza, the Broadway Farmers market, and cultural space. The anchor tenant spot is currently under decision by the Seattle City Council and Portland Based developer Gerding Edlen. The decision is notably between two Northwest options, Central Co-op and New Seasons. Recently Central Co-op submitted a proposal to the city and the developer after its annual owners meeting in April resulted in very strong interest in the new store site. Dan Arnett, Cooperative President and CEO, said, “We believe, frankly, that we’re not only the best option for the site but there’s a cultural link. It’s where our organization was founded.” Central Co-op is an NCG account that first started on Capitol Hill in 1978 and has been spreading their roots ever since. Earlier this year, their roots spread all the way to Tacoma, Washington where they merged memberships and resources with the Tacoma Food Co-op which is now referred to as Central Co-op Tacoma. Central Co-ops’ plans for this new location on Capitol Hill will not affect the current location which has 19 years left of the current lease and with the option of an additional 20 years this is their home. Becoming the largest retailer of this new development will give Central their third location in the Puget Sound area, and with a unionized work force, they have drawn substantial local and commercial support. New Seasons is currently about to open their first Seattle area store later this year on Mercer Island which is less than 10 Miles from the Capitol Hill light-rail station. The Portland-based natural foods chain has met some opposition from local Seattleites and labor organizations who feel a more regional choice like Central Co-op, Metropolitan Market or PCC would be a better local business opportunity. New Seasons however is a growing, well respected, and very successful chain born here in the Northwest and has serious interest in this site. We’re all waiting to see who gets to be the next natural food anchor on Capitol Hill. Looks like it will be a very tough decision for the Portland based site Developer and the Seattle City Council. Bale’s Thriftway Wilsonville to be Purchased by Albertson’s Albertson’s has entered an agreement to purchase Bale’s Thriftway in Wilsonville, Oregon. The store was formerly owned by Lamb’s group and was recently purchased by the Miller group which owns Bale’s Thriftway’s. The store is set to close by August 30th or sooner. The transition and remodel will begin in September. Butch Turner Bale’s Wilsonville Manager said, “All Bale’s employees will be offered jobs with Albertson’s at the new store.” Portland MLK Natural Grocers Delayed Natural Grocers by Vitamin Cottage was slated to open a store at Northeast Martin Luther King Jr. Boulevard and Alberta Street in Portland, Oregon in January of 2017, but that date has been pushed back. Officials are citing an overly-optimistic redevelopment schedule for the overall commercial project. New projections could have the 15,000 square foot store completed in February of 2018. Good Earth Market Kids Co-op Explorer Club How do you teach children to eat healthy for life? Just like all life lessons you make it fun! The Good Earth Market Co-op in Billings, Montana had a great idea and introduced a shopping experience for kids. Kids 12 and under can join the Co-op explorers club by signing up with an adult at the customer © 2016 Presence Marketing, Inc. 9 Good Earth Market Kids Co-op Explorer Club cont’d service counter. A sticker on their shirt or jacket indicates they are a Co-op Explorer member and they can grab an organic banana from the basket and enjoy it while shopping with their parents. Two things to keep a child interested in grocery shopping are eating and stickers. Keeping children involved in their food choices and teaching the importance of an organic lifestyle will empower them to make good food choices for their entire life. “Chairman Bob” Mariano will Step Aside on September 1st Midwest He’s practically a legend in Chicago Supermarket lore. Starting out as a simple deli clerk in high school in 1966, he became the CEO of Dominick's in 1995 and joined Roundy's in 2002 as Chairman of the Board. By 2010, he was building on a personal vision to operate a chain of stores under his name in his own hometown of Chicago – something that Mariano considers the most significant achievement of his career. At 66, Mr. Mariano has determined it best to step aside and let the next generation of talent assume leadership. His resignation will become effective on September 1st of this year. He will, however, remain close and it has been announced that he will serve as an advisor to the Roundy’s organization for the next two years. It has also been announced by parent company, Kroger, that Don Rosanova, current President of Mariano's, and Michael Marx, current President of Roundy's Supermarkets Wisconsin, will remain in their positions. There are 37 Mariano's stores throughout Chicago and the suburbs. Two more are scheduled for completion this year and at least five others scheduled for opening in 2017. Fittingly, Robert Mariano has observed that today the grocery business is going full circle, back to the days when stores were a part of the neighborhood and fresh foods were the focus. Willy Street to Open Third Store Willy Street Co-op is set to open their third location on the north side of Madison with a soft opening scheduled for Monday, August 15th. The co-op is opening the store at 2817 North Sherman Avenue in a food desert in Madison. The retail space will be near 20,000 square feet, double the space of the other two Willy Street Co-ops. Due to the size and what the local consumers are accustomed to, this Willy Street location will carry conventional items alongside the natural and organic selection. It’s a different concept for Willy Street, but they feel it’ll fit the location. Willy Street Co-op, with its 33,000 members, will now have a convenient location to all their members that currently live on the north side. Obtaining more members should not be difficult as this area is convenient for people who walk, drive, bus, or bike. It’s currently on a bus route and there are 500 parking spaces which driving members will really enjoy because parking at the other two locations can be difficult. Inside the store there will be larger bulk, beer, and wine departments. About 47 freezer doors, a 40-foot-long dairy department, and five aisles of dry grocery each 72 feet long. Customers will not have trouble finding employees here. The team offices will be set up on the sales floor and will be within view of the shoppers almost all the time. This will make it very easy for customers to find assistance while shopping. Terry Naturally Expanding Fresh Thyme to Open Third Store in Minnesota Terry Naturally in Green Bay, Wisconsin is building a 5,000 square foot second location in Suamico, Wisconsin. They plan to open sometime in August of this year. Suamico is a northern village that is part of the Green Bay metro area. Like the original location, they will have a café and will carry a full spectrum of healthy products for the whole family, including pets. Fresh Thyme Farmers Market is expanding to Savage, Minnesota. The new store will be housed in a retail space that was formerly a Rainbow Foods, located at 14100 Highway 13. Fresh Thyme is expeditiously expanding in the Midwest with its signature “Healthy Food, Healthy Values” concept. Fresh Thyme Marketing Manager Lacey Davidson states, “We search for locations where we can be integral partners in the local community events and organizations, while providing healthy foods at a great value for our customers. We can’t wait to bring local farmers market quality, expert food and vitamin knowledge, with grocery store convenience to the residents of Savage. The Savage location will bring more than 100 jobs to this growing community.” Fresh Thyme is delivering a new dynamic to Minnesota by focusing on fresh food and produce. They are evolving the farmers market appeal while delivering very competitive prices. The grand opening date is set to be August 3rd at 7:00 A.M. and the first 250 shoppers will receive a Fresh Thyme reusable bag filled with healthy groceries. They will be offering “door buster” deals and handing out free muffins and coffee to everyone in line. Fresh Thyme will be opening Minnesota locations in St. Louis Park, Plymouth and Minneapolis in the coming year. © 2016 Presence Marketing, Inc. 10 Distributor News UNFI Named to Top Green Providers List UNFI was named to Food Logistics 2016 Top Green Providers list. The annual list recognizes companies whose products, services or exemplary leadership is enhancing sustainability in the food and beverage industry. In 2015, UNFI had several key achievements in sustainability including two new buildings designed for LEED Gold certification, 2.1% YOY improvement in fleet fuel efficiency, 25% YOY improvement of diversion from landfills, 17,390 tons of recycled or diverted from landfills and 6% YOY reduction in electricity usage. Kirsten Hogan Named to Board UNFI’s Kirsten Hogan was elected to the Specialty Food Association Board of Directors. Those serving on the board are all members of the Association, a not-for-profit trade association that represents all segments of the $120.5 billion U.S. specialty food industry and member companies. 2017 UNFI Tabletop Shows Southeast Show February 7th to 8th Loews Sapphire Falls Orlando, Florida Northeast Show May 17th to 18th Foxwoods Fox Tower Ledyard, Connecticut West Show May 23rd to 24th Long Beach Convention & Entertainment Center Long Beach, California Please contact Presence Marketing/Dynamic Presence’s Kailyn Rogers at krogers@pmidpi.com for additional information. KeHE’s Updated Mailing Address for Supplier Invoices Consolidation of KeHE’s Portland Warehouses KeHE has made a change to their mailing address for supplier invoices. Please update all your records to reflect their new mailing address effective immediately. New mailing address: KeHE DC13 N. Portland went live December 28th of 2015. For the past six months, this distribution center serviced New Seasons Market in the greater Portland, Oregon area. KeHE continued to operate both their Clackamas DC25 and the N. Portland DC13. On June 1st, KeHE announced the decision to consolidate the warehouses into “one go-forward DC” beginning June 26th, 2016. The old Clackamas warehouse and its customers have moved to the new Portland DC (9555 NE Alderwood Road, Portland, Oregon 97220). In KeHE’s operating system the consolidated Portland DCs will now be recognized as DC25. KeHE Distributors, LLC P.O. Box 24830 Jacksonville, Florida 32257 Please ensure this notification is shared throughout all necessary departments including accounting, customer service, and other team members that are affected by this change. Please email vendorconnections@kehe.com or call 800-809-8514 if you have any questions or concerns. The new Portland DC is a 389,000 square foot state of the art facility, with an 89,000 square foot freezer and 38,000 square foot cooler. KeHE is an employee owned company and also one of the nation’s largest B-Certified corporations. KeHE Denver Warehouse update KeHE’s new Denver warehouse (DC #12) is opening in August, and the address is 2200 N. Himalaya Road, Aurora, Colorado 80011. This will initially service Sprouts stores in Colorado and New Mexico. Change to AOM (request for inventory) Requirements B-Corp Certified Brands AOM’s are a request for inventory to alert KeHE’ s supply chain for unplanned increases in order quantities. AOM’s are used for new item distribution as well as promotional lift. As a guideline, KeHE will now require 40 points of distribution in order to stock new products in the DC. NOTE: It is highly encouraged that vendors launch new items in the New@KeHE program (bypasses minimum POD requirements). In January, KeHE will create a special section in their publications to highlight B-Corp and Certified B-Corp Vendors. The Marketing Monthly publication focuses on natural channel retailers and the Grocery Buying Guide focuses on grocery channel retailers. In order to be featured, you have to have a promotion running in the month of January via KeHE. Items will be dual located in the publication at no additional cost. 2017 KeHE Show Schedule Summer Selling Show – February 7th to 8th, New Orleans, Louisiana | Holiday Show – June 12th to 13th, Minneapolis, Minnesota |National Natural Show – October 4th to 5th, Austin, Texas. KeHE Exclusive If you are a vendor that is only working with KeHE (not UNFI or DPI), email laura.mccord@kehe.com with your vendor name, ESN, and brand name. © 2016 Presence Marketing, Inc. 11 Threshold Vendor Support Contact Information • Promos (John Keenan): Promos@thresholdent.com • Ads (John Keenan): Ads@thresholdent.com • New Products – New and existing vendors (LaWanna Taylor): NewProducts@thresholdent.com • New Vendors (Linette Quist): LinetteQ@thresholdent.com • Training and Tradeshows (Stephanie Brewton): StephaineB@thresholdent.com • MCB’s (Alicia Huneke): Promos@thresholdent.com • Blocks (John Keenan and Joe Andros): block@thresholdent.com • General Questions: VendorSupport@thresholdent.com Threshold Trade Show Opportunities August 2nd to 4th Threshold Pet at Super Zoo Mandalay Bay Convention Center 3950 Las Vegas Boulevard Las Vegas, Nevada 89119 September 22nd to 24th Expo East Baltimore Convention Center MD One West Pratt Street Baltimore, Maryland Booth #5122 and Booth #5022 October 7th to 8th Threshold Brand Tabletop Show Hilton Long Beach 701 West Ocean Boulevard Long Beach, California 90831 For more information, contact Tradeshow Coordinator Danny Ortega at TradeShow@thresholdent.com or (831)461-6334. Promotional Influence in the Natural Food Channel Data Update Total US Natural Channel Promoted Dollars and Promoted Units Total US Natural Channel Promoted Dollars by Period • 2017 promotional planning is well underway across the natural channel! It is important to know that 29% of natural channel product dollars and 34.2% of natural channel units were driven by promotional activity during the 52 weeks ending July 10th, 2016. • The 52-week Promo Dollar Average was 29%. Increased promotional activity occurred in the summer months and peaked again in January. Total US Natural Channel Promo Dollar Percent Trend by Period 52 Weeks Ending 7/10/16 32.0% Spinsscan - Total US Natural Channel 52 weeks ending 7/10/16 31.0% 35.0% 30.0% 34.0% 29.0% 34.2% 33.0% 28.0% 27.0% 32.0% 26.0% 31.0% 25.0% 30.0% 24.0% 29.0% 23.0% 29.0% 28.0% 27.0% 26.0% % Promoted Dollars % PromotedUnits % Promoted Dollars % PromotedUnits % Promoted Dollars Total US Natural Channel Promoted Dollars by Region 52 Wk % of AVG. Promo Dollars Total US Natural Channel Promoted Dollars and Promoted Units – Top and Bottom Five Categories • The South Central and Southwest regions are leading in capturing promotional activity in the natural channel. The Northwest and North Central are very close as the east regions vary. • Categories providing convenience for the natural channel consumer are rounding out the top five categories with promotional activity. Chips, pretzels and snacks took the top spot with over 40% dollars and units. Total US Natural Channel Promo Dollar Percent by Region 52 Weeks Ending 7/10/16 29.5% 29.1% 22.8% 25.1% Bottom 5 Categories % Promoted Dollars & Units Top 5 Categories % Promoted Dollars & Units 18.0% 60.0% 16.0% 50.0% 14.0% 12.0% 40.0% 10.0% 30.0% 8.0% 20.0% 6.0% 4.0% 10.0% 2.0% 0.0% 0.0% REFRIGERATED PASTA & PIZZA SAUCES 23.5% 96 32.5% % Promoted Dollars RF ENTREES & OTHER REFRIGERATED SUSHI & GRAB N (MISCELLANEOUS PASTA GO MEALS BASE-CODED ITEMS) 95 © 2016 Presence Marketing, Inc. 93 92 % PromotedUnits % Promoted Dollars 31.5% 94 MILK % PromotedUnits 27.6% 12 Natural Product Growth Review In the 52 weeks ending June 15th, 2016, the natural food channel, as measured by SPINS, saw dollar growth of +7.9% vs. YA with an even higher increase in natural products within conventional grocery (11.3%) though conventional grocery as a whole only saw a minimal rise at 1.3%. In general growth rates across both channels appear to be trending downward, with conventional grocery dollar sales growth dipping into negative territory for the four weeks ending June 12th, 2016. The share of natural product dollars being delivered by conventional grocery holds steady, representing $26.8B annually and accounting for a 77% share when the conventional grocery and natural food supermarkets are combined. Natural Product Industry - Sales by Outlet 2 Year Growth Rate Trend by Channel 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% -1.5% -2.0% -2.5% -3.0% Source: SPINSscan Natural & Conventional Period Ending June 12, 2016 13.5% 13.0% 12.5% 12.0% 11.5% 11.0% 10.5% 10.0% 9.5% 9.0% 8.5% 8.0% 7.5% 7.0% 6.5% 6.0% 5.5% 5.0% 4.5% 4.0% 3.5% 3.0% 2.5% 2.0% 1.5% 1.0% 0.5% 0.0% -0.5% -1.0% -1.5% -2.0% -2.5% -3.0% SPINSScan 52 weeks Ending Jun 12, 2016 $7,882,538,248, 23% $26,762,242,658, 77% Natural Food Supermarkets Natural Food Supermarkets Natural Products in Conventional Supermarkets Conventional Supermarkets All Products in Conventional Supermarkets While natural product growth is strong in both conventional and natural food stores, performance varies greatly by product group and channel. NATURAL FOOD SUPERMARKETS % of TOTAL 35.7% PRODUCT GROUP 52 WEEK DOLLARS NATURAL PRODUCTS in CONVENTIONAL GROCERY % vs YA TOTAL CHANNEL $7,882,538,248 7.9% GROCERY $2,816,074,705 6.3% % of TOTAL PRODUCT GROUP 52 WEEK DOLLARS ALL PRODUCTS in CONVENTIONAL GROCERY % of % vs YA TOTAL TOTAL CHANNEL $26,762,242,658 11.3% GROCERY $10,762,211,279 10.6% 46.2% PRODUCT GROUP 52 WEEK DOLLARS % vs YA TOTAL CHANNEL $294,965,658,222 1.3% GROCERY $136,331,900,839 1.3% 17.2% REFRIGERATED $1,353,812,741 11.0% 40.2% 13.4% VITAMINS & SUPPLEMENTS $1,059,013,753 7.8% 29.1% REFRIGERATED $7,795,829,970 12.5% 17.4% REFRIGERATED $51,428,085,492 1.3% 8.8% FROZEN $690,892,450 8.0% 12.1% FROZEN $3,230,329,687 13.5% 16.2% FROZEN $47,746,566,431 -0.5% 6.1% BODY CARE $483,628,824 9.6% 9.0% PRODUCE - PACKAGED $2,416,943,217 8.4% 9.1% GENERAL MERCHANDISE $26,966,999,245 1.5% 5.7% PRODUCE - PACKAGED $446,925,145 12.2% 3.9% GENERAL MERCHANDISE $1,050,436,241 10.6% 5.8% PRODUCE - PACKAGED $16,979,842,832 3.1% 4.6% ALCOHOL $363,850,328 6.3% 4.0% HERBS & HOMEOPATHIC $317,798,018 7.9% 3.4% VITAMINS & SUPPLEMENTS $913,485,649 9.5% 2.6% BODY CARE $7,666,505,993 2.5% 2.6% GENERAL MERCHANDISE $204,980,283 5.8% 1.4% BODY CARE $385,050,407 15.6% 1.7% OTC MEDICINES $4,941,091,848 3.6% 1.8% MISC OTHER $138,895,825 1.3% 0.8% HERBS & HOMEOPATHIC $204,432,510 8.9% 0.9% VITAMINS & SUPPLEMENTS $2,644,917,842 6.4% 0.1% OTC MEDICINES $6,666,176 19.1% 0.0% OTC MEDICINES $3,523,699 -10.0% 0.1% HERBS & HOMEOPATHIC $259,747,701 9.2% SPINSScan Natural period ending June 12, 2016 SPINSScan Conventional period ending June 12, 2016 SPINSScan Conventional period ending June 12, 2016 Do you want to learn more about SPINS? Please visit www.spins.com to learn more about SPINS or contact our Presence Marketing/Dynamic Presence Strategic Account Director Jim Stange at jstange@spins.com. Please visit https://satori.spins.com/ to learn more about SPINS TrendWatch and upcoming speaking engagements. © 2016 Presence Marketing, Inc. 13 Whole Foods Marketing Returns to “Cooperator Status” – By Michael Movitz Data Insights After a decade of going it alone, Whole Foods Market is returning to cooperator status, a move that will empower its manufacturer supplier partners to provide more sophisticated insight back to the retailer, and help Whole Foods Market make more informed decisions accounting for broader market dynamics. The move is part of Whole Foods Market’s strategic nine-point plan to evolve and improve its trajectory, as the natural products industry has also expanded and evolved in many awesome ways the last several years. First, a brief definition: A “retail cooperator” is defined in the syndicated market research industry as a retail chain that agrees to share its POS scan data with a market research reporting agency. That sharing agreement typically permits the agency to incorporate a retailer’s data into an aggregate of other retailer’s data that defines a channel or market (i.e., natural supermarkets, grocery stores, etc.), and license that aggregated data to manufacturers and other suppliers who partner with or support the business in that marketplace. A majority of the time, the sharing agreement also permits the agency to license a retailer’s data as stand-alone information (“key account data”) to allow vendors to measure its performance specifically at that account, as well as collaborate with the retailer on product assortment, introductions, promotions, pricing, merchandising and myriad other initiatives. The benefits to the retailer include receiving its raw POS information back from the agency cleansed, categorized and appended with product attributes (flavor, size, organic, natural positioning, etc.); being able to measure and evaluate its own performance and opportunities against the rest of the marketplace; and of course working with its vendors in close collaboration to optimize its opportunities for success. Timing was not announced for when its sales information would begin reporting. These things take time to build, prepare and test before release, but suffice it to say this is yet one more seismic development for our industry to strengthen its momentum, importance and influence within the larger consumer packaged goods sector. On the surface, market coverage will be improved, but this is an oversimplified takeaway. For example, as a condition of its cooperating agreement, a retailer will sometimes restrict reporting of exclusive items or departments of high internal value (including private label). Reporting agencies may be required to include a retailer’s sales in an aggregated channel or channel segment to inhibit clear reads on a given retailer’s business (think Walmart only reporting in the all-channel aggregate of “Multi Outlet” that includes club, military, dollar and others). Reporting agencies are also sometimes only allowed to use a small sample of stores instead of all stores in the chain. All of these conditions are intended to balance a retailer’s willingness to cooperate with protecting the retailer from exposure of what it deem to be unique or sensitive products in its chain. Consider too that at $15 billion in sales, Whole Foods Market represents about 2.5 percent of the $600 billion brick and mortar grocery retail landscape. However, if Whole Foods Market sales information is being reported within the $1 trillion “Multi Outlet” channel aggregate including Walmart, club, etc., Whole Foods Market represents about 1.5% of this total. In either case, the impact and visibility of Whole Foods Market in conventional channel reporting will be nominal at best. Couple this with the fact that its model, and particularly its assortment and velocities of premium products, is quite unlike traditional grocery and mass retailers. The integration of Whole Foods Market sales information into this dissimilar “comparable market” leads to a lot of noise and challenges when attempting to understand data trends if the right tools and resources are not being used. It also further accentuates the line blurring, convergence and emerging ubiquity of premium products already underway for our industry over the past several years. Account-level specific reporting is the only clean read on a retailer’s performance, and customarily, only manufacturers selling in a chain are permitted to license account specific data. Having said all this, we don’t know yet how Whole Foods Market information will be reported, if its key account data will be available to vendors or in what form, what its expectations of the vendor community will be, and whether any of these reporting tactics will be employed. We’re in the ‘wait and see’ mode for the time being, with a good dose of excitement and anticipation to boot. I would make the analogy of Whole Foods Market returning to cooperation status being similar to a CPG investing in or acquiring a core natural products brand. Whole Foods Market and the entire natural products industry – including all manufacturers, supply chains, and the people and families behind them - will get bigger, stronger and more influential faster thanks to the sophistication, resources, breadth, depth and reach of cooperation partners and deeper engagement with its vendor community. This move underscores the momentum with which the market is evolving, and the need for all businesses to adapt and transform to new realities to remain relevant. It’s great that Whole Foods Market will be back, as well as to see the progress it is making to evolve and transform its business - not to just stay competitive, but to remain differentiated, a destination and a leader in retailing. Michael Movitz - founder of The Movitz Group LLC - has more than 25 years natural/organic products industry experience across retail, manufacturer, broker and market research organizations, including 16 years with SPINS. The Movitz Group exists to support the simultaneous progression of humanity and enterprise by building purpose driven businesses and business profits together, rather than building one at the exclusion of the other. We serve emerging innovative brands with winning go-to-market strategy development and execution, optimization of sales and distribution strategies, and drawing out the nuance and essence of a brand's position to tell its story better. We also serve equity and CPG partners with market and competitor due diligence to help them make better investments and improve success opportunities. Learn more at www.MovitzGroup.com. © 2016 Presence Marketing, Inc. 14 Food News, Policy and Research Update – By Steven Hoffman, Compass Natural Marketing GMO News Obama Signs GMO Labeling Bill into Law Remember those plain English GMO labels we were beginning to see on supermarket shelves across the country in late spring and early summer in the run-up to July 1st, when Vermont’s GMO labeling law took effect? Well, fuhgeddaboudit. Just as soon as they were starting to appear, they’re about to go the way of the dodo bird. And yet, ironically, the new national GMO labeling law, signed into law by President Obama on July 29th, was promoted to legislators and the American public as a “mandatory” GMO labeling law, which couldn’t be further from the truth. In a hurry to get to summer recess and under heavy lobbying pressure from Big Ag and the Grocery Manufacturers Association, both the U.S. Senate and House of Representatives in mid-July passed bill S.764, the National Bioengineered Food Disclosure Standard, otherwise known as the “DARK Act” GMO labeling compromise bill, in a whirlwind of congressional activity. And…at the end of the business day on Friday, July 29th, just one day after returning from the Democratic National Convention, when all eyes were on the presidential race, President Obama quietly signed the federal GMO labeling bill into law. The new national law pre-empts Vermont’s plain English on-pack GMO labeling requirement effective immediately. Additionally, it invalidates all other state GMO labeling laws and prohibits states from ever passing plain English on-package GMO disclosure requirements. Instead, it replaces a clear message – favored by more than 90% of Americans – with a QR code (that must be read by a smart phone), an as of yet undeveloped symbol, or an 800-number where information about GMOs can be buried in a company’s website or marketing messaging. While a surge in grassroots petitions had urged the president to veto the bill, as well as a letter signed by 268 organizations sent to the president on July 15th, sources indicated Obama would sign the bill into law, forever ending mandatory plain English GMO labeling in the United States. After returning from his speech at the DNC, Obama did just that. But the law does much more than provide “voluntary” labeling options to protect biotech and junk food interests over consumer transparency and truth in labeling. See more on this below. Replacing Mandatory with Voluntary Label Options While the federal law seems like a mandatory GMO labeling law, unlike the Vermont law, it actually removes the requirement for English on-package label disclosure, making it optional instead. While food makers must still disclose if a product contains GMOs, the law allows manufacturers the options of using QR codes for consumers to scan on their smart phones, toll-free 800 numbers, or a standardized USDA symbol (not yet developed) instead of plain English text. By taking away the very thing for which millions of GMO labeling proponents have been advocating, the national GMO labeling law is deemed a huge setback by those in favor of requiring plain English text disclosure – something they were beginning to see across the U.S. as a result of the Vermont law. “Stabenow's compromise essentially snatched defeat from the jaws of victory for labeling supporters because many major food companies were already putting GMO labels on their products sold nationwide to comply with Vermont's law,” wrote Ken Roseboro, editor of The Organic & Non-GMO Report, in a July 22nd commentary in Eco-Watch. “The Roberts-Stabenow bill has been described as a ‘non-labeling GMO labeling bill’ since, among its many flaws, it allows food companies to continue their stonewalling of GMO information by putting QR codes on products that can only be read by smartphones. Imagine a busy mother at a supermarket with several children in tow pulling out her smartphone to read QR codes on 20 or 30 food products. Or imagine the many mothers that don't even have smartphones trying to get GMO information,’” Roseboro wrote. While the passage of the bill in both the Senate and the House received broad bipartisan support, House Republican Vern Buchanan (R-FL), on July 21st called on President Obama to veto the federal GMO labeling bill, calling it a “sham bill that pretends to offer disclosure, but in truth has so many loopholes that it is meaningless. Food labeling needs to be simple and clear,” he wrote in a letter to the President. “QR codes and telephone numbers do not meet that definition. What mother shopping with her children is going to stop in the middle of the food aisle to call a company or go on a website to check the content of every product they would like to buy?” Buchanan was one of 36 Republicans in the House who voted against the bill, along with 81 Democrats. What the national GMO labeling law will do: - Pre-empts all state GMO labeling laws – Immediately invalidates and supersedes existing or pending mandatory GMO labeling laws in Vermont, Connecticut and Maine and elsewhere. Also, the new federal GMO labeling law will prevent states from creating labeling legislation that would disparage foods made with GMO ingredients. - English on-pack labeling disclosure becomes voluntary – In contrast to the Vermont labeling law requiring plain English on package label disclosure, the federal GMO labeling compromise bill allows manufacturers the choice of disclosing GMOs with either plain English text, a standardized symbol yet to be determined, an electronic QR code readable by smartphone, or toll-free 800 numbers that consumers can call to learn if a product contains GMOs. - USDA takes over GMO labeling – The bill requires USDA to create within two years a national mandatory disclosure standard for foods that contain GMOs. However, that doesn’t sit well with the FDA. In comments submitted to the Senate Agriculture Committee after passage of S.764, FDA expressed concern the rules that would come from USDA could conflict with FDA labeling requirements. “For example, depending on what USDA requires for small packages, it is possible that a manufacturer would not be able to fit both FDA’s required statements and USDA’s required information on the label.” - GMO seed will not be labeled – GMO seeds will not require labeling, overturning GMO seed labeling laws in Virginia, and as part of Vermont’s GMO labeling law. Labeling GMO seed helps inform farmers and gardeners as to the source of their seed stock. © 2016 Presence Marketing, Inc. 15 Food News, Policy and Research Update – By Steven Hoffman, Compass Natural Marketing cont’d - Refined GMO foods may not need labeling – Depending on how the language of the bill is interpreted in the rulemaking process, foods refined to have the DNA removed may be exempt from any GMO labeling requirements, such as refined sugar from GMO sugar beets, corn syrup from GMO corn and oil from GMO canola, William Hallman, Ph.D., Chair of the Department of Human Ecology at Rutgers University, told Food Navigator USA. - Newer GMO technologies may be exempt – Newer and next generation GMO and “gene editing” (CRISPR) technologies may not require labeling. Opponents of the law say it contains huge loopholes that could allow up to 90 percent of GMOs to escape the labeling requirement. The law vaguely defines GMOs as entities that “contain genetic material that has been modified through in-vitro, recombinant DNA techniques; and for which the modification could not otherwise be obtained through conventional breeding or found in nature.” In comments submitted to the Senate Agriculture Committee after passage of S.764, FDA expressed concern that the bill’s definition of “bioengineering” is confusing and could narrow the scope of foods that would be required to have a disclosure statement. - Organic can make non-GMO claims – All USDA certified organic products, based on the certification process established under the Organic Foods Production Act of 1990, would be considered sufficient to make a “non-GMO” claim, in a concession to the organic industry that seems to have prompted an unexpected endorsement of the bill by the Organic Trade Association. OTA’s controversial endorsement of the DARK Act has prompted membership withdrawals from the farmer-controlled Organic Seed Growers and Trade Association (OSGATA) and others. - No penalties – While Vermont’s GMO labeling law calls for stiff noncompliance penalties of $1,000 per day per product, there is no such penalty under the federal GMO labeling law. USDA has no authority to require recalls of products that don’t comply with the labeling requirements, and there are no federal penalties for violations. Steven Hoffman is Managing Director of Compass Natural, providing brand marketing, PR, social media, and strategic business development services to natural, organic and sustainable products businesses. He served as Marketing Director for the Arrowhead Mills organic brand, is the former Editorial Director of Natural Foods Merchandiser Magazine, former Education Director of Natural Products Expo East and West, and co-founder of LOHAS Journal. Contact steve@compassnatural.com. Expo East Expo East 2016 Expo East is where 25,000 professionals and peers come to celebrate the business of natural and organic. This is where you can discover new ideas to help your oldest customers, where vendors bring your next best-seller and where you will meet the faces behind the brands. Join us this September for what promises to be the biggest Expo East ever! Exhibits are sold out and Super Passes are going fast. Register today and take advantage of FREE* access to: • Over 1900 Exhibits on the Show Floor • Retail Super Session and Keynote Speakers • Exhibitor-Hosted Education Sessions • Evening Celebrations, Morning Yoga, Women in Naturals Networking Event, and the Harvest Festival Register now to take advantage of early bird savings on exhibit hall admission and Super Pass Upgrades. Exhibit Hall passes are FREE for qualified retailers, distributors (broker and importer/exporter) and health practitioners through August 12th, 2016 and Super Pass Upgrades are just $95. 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