Iowa Grocery Industry Association News Feed

ABD to Hold Webinar February 16

jwilliams@iowagrocers.com — Tue, 07 Feb 2012 00:00:00 CST

Covering FDA Retail Tobacco Compliance Checks Beginning this Month

Last year the Iowa Alcoholic Beverages Division (ABD) announced that it had been awarded a contract by the Food and Drug Administration (FDA) to begin conducting FDA-sponsored retail tobacco compliance inspections.

The ABD will be holding a webinar covering the federal tobacco compliance checks, applicable laws and available resources. The webinar is free and will be live online at 10:00 AM on Thursday, February 16, 2012. The presentation will be available for download and viewing through IowaABD.com if you are unable to attend at the scheduled time. More details on how to view the webinar and sign on information will be made available in the coming days.

Please note: IGIA strongly encourages all retailers to take this free webinar.

Beginning this month, compliance officers will be conducting checks of tobacco retailers across Iowa to ensure they are complying with federal laws regarding marketing and sales restrictions on cigarettes and smokeless tobacco products. The inspections will determine retailers’ compliance with the Federal Food, Drug, and Cosmetic Act, as amended by the Family Smoking Prevention and Tobacco Control Act and the Regulations Restricting the Sale and Distribution of Cigarettes and Smokeless Tobacco to Protect Children and Adolescents, found at Title 21 of the Code of Federal Regulations, Part 1140 (21 C.F.R. Part 1140).

The Tobacco Control Act seeks to prevent and reduce tobacco use by young people by enforcing the minimum legal age to purchase tobacco products. The law also prohibits false or misleading labeling and advertising for tobacco products, and gives authority to FDA to enforce all its provisions.

“Iowa tobacco retailers have shown diligence in complying with state and federal tobacco laws,” said ABD Administrator Stephen Larson. “Four of the five last fiscal years have achieved more than 90 percent compliance in checks conducted for ABD’s Iowa Pledge program.”

Under the contract, ABD investigators conduct undercover buys, as well as advertising and labeling inspections, in accordance with the FDA Tobacco Compliance Check contract. FDA-commissioned officials will focus on sale and distribution restrictions including, but not limited to:

· Age and ID verification

· Requirements for labeling and advertising of smokeless tobacco products

· Restrictions on the sale of single cigarettes

· A ban on certain candy and fruit-flavored cigarettes

· Prohibited self service displays and vending machines

The FDA provides a comprehensive website at http://www.fda.gov/tobacco to assist retailers in being fully compliant with the Tobacco Control Act. The website has a “Resources for Retailers” section that includes:

· Retailer Education Materials

· Regulations & Guidance

· Retailer Training and Enforcement

· Webinar Training Series

All potential tobacco retailer violations found by ABD investigators are reported to the FDA. The FDA then brings enforcement actions against tobacco retailers in Iowa that may include warning letters, civil money penalties and no-tobacco-sales orders.

Full inspection results will be posted on the FDA website. The site lists all retailer warning letters and a monthly list of inspected establishments where no violations were observed.

Approximately 215 retailers statewide will be inspected per month. The FDA contract was awarded for one year plus two option years. FDA expects there will be further opportunity to contract beyond the initial three years.

“The Division’s investigators are experienced in state tobacco inspections and have received training for the federal checks,” said Larson. “The transition to conduct these FDA inspections will be smooth and fit well within our overall priority to ensure compliant sales of tobacco in Iowa.”

ABD offers a tobacco retailer certification program, which can be found at IowaABD.com. The two-hour training course is free of charge. Retail tobacco employees participate in an interactive class and then must pass a test to become Iowa Pledge certified. Establishments that have employees pass the Iowa Pledge training are granted an affirmative defense, which may be used once in a four-year period. The affirmative defense is only valid for tobacco sale-to-minors found in state compliance checks, not federal. However, the course offers many valuable tips on checking identification, spotting and confiscating fake IDs and how to refuse a sale.

Questions regarding the federal compliance checks should be directed to the FDA at 1.877.CTP.1373 or AskCTP@fda.hss.gov.

Is a Grocery Store in Downtown Des Moines' Future?

jwilliams@iowagrocers.com — Mon, 06 Feb 2012 00:00:00 CST

Two stores have opened - and closed - in recent years. Now a new downtown developer is mulling the idea.

The new owners of a downtown Des Moines high-rise are considering adding a grocery store in the building — an amenity long desired by residents and workers, yet one that’s been difficult to deliver.

While any final commitment to a downtown grocery remains a year off, developer Shawn Foutch said the Kansas City-based Foutch Brothers is “definitely considering it.”

In fact, the company’s website touts that a grocery will be included in the redevelopment of the Des Moines Building, which it bought last summer with local company Nelson Development.

“It would definitely not be a large, sprawling store like you have in the suburbs,” Foutch said when asked about the possibility. “It would definitely be like an urban core store. But our intent would be that if it’s worth doing, it will be a full-service grocery store.”

In January, Foutch Brothers bought a second downtown building, the 19-story Equitable Building at 604 Locust St. They have said much of it will be converted to apartments.

Managers of failed startups in recent years, however, say that while downtown residents demand a grocery store, they aren’t willing or numerous enough to support one.

Both downtown high-rises the Foutch Brothers now own have space for big ideas, Foutch said.

“And that’s one of the amenities that if it were a smaller development we might not be able to do it, but we have been considering it here,” he said.

Buzz abounds over a downtown grocery at AbsoluteDSM.com, a website that tracks developments across the city. Its forum pages offer active and robust discussion on everything from the Principal Riverwalk to a future annex for the county courthouse and a downtown grocery store.

Spencer Shireman, a recent University of Northern Iowa graduate who lives and works downtown, began the conversation:

“I’ve been thinking about this topic a lot over the last few days and the verdict from everyone I speak with seems to be the same: A traditional downtown grocery store would make a killing.”

Shireman said he believes that if a recognized brand like Hy-Vee brought standard products and prices into downtown, it would enjoy a stream of business.

Downtown resident Rachel Drakarian agrees: “We’re dealing with an urban grocery gap in Des Moines. This gap between supply and demand translates to fewer options and higher prices for downtown residents.”

Downtown resident Jack Sodak said groceries remain accessible for downtown dwellers, but not at the distance or price point he would like.

“Sometimes it takes me upward of 45 minutes to do a run down to the Hy-Vee on Fleur,” he said.

Sodak noted that several apartment buildings downtown are rent controlled and available only to those earning less than $30,000, a group unlikely to spring for pricey foods.

Foutch is mulling all this over.

“We’ve talked about concepts that are more the high end, the current trendy types, but we’ve also talked about exactly a store like Hy-Vee. They’re obviously an operation that knows how to do their job.”

The West Des Moines-based company opened a small-scale venture in 2008 in Lincoln, Neb., known as Hy-Vee Mainstreet. The small, neighborhood market offers a full-service meat department, wine and spirits, Caribou Coffee and Wi-Fi.

“My only question to Hy-Vee is: Why have you not done this here?!” Shireman wrote when the store was referenced in the online forum.

Hy-Vee spokeswoman Ruth Comer said that the “Mainstreet” location sits in an older, established neighborhood similar to Des Moines’ Beaverdale neighborhood, not Lincoln’s downtown. The Lincoln store has a parking lot, something downtown would be pressed to afford.

Still, could such a concept work in downtown Des Moines?

“It’s not something we’re looking at at this time,” Comer said.

At one time, though, downtown groceries were numerous in Des Moines. A 1965 city directory from R.L. Polk & Co. lists as many as eight markets or grocery stores downtown, including Amend and Sons, Lillie’s Market and Dixon’s Master Market, all on Locust Street. The stores disappeared during the 1970s.

Des Moines City Manager Rick Clark, who lives downtown, said area residents continually ask for a store, despite the coming and going of two downtown grocery businesses in the past five years.

“It kind of fits their notion of what an urban city should be,” he said, noting residents have “this expectation, this vision of walking from where they live to a grocery store.”

That vision fueled the 2007 birth of Riverbend Trading Co., a grocery store and deli founded by Full Court Press, owners of the popular downtown bars Royal Mile, High Life Lounge and El Bait Shop.

Located in the current home of Court Avenue restaurant Sbrocco, Riverbend offered fine wines and boutique foods alongside staples like bread, milk and toothpaste. Full Court Press saw a need in downtown, said Tim Grimes, a longtime Des Moines resident who managed the store.

“We thought there were enough people living in the area they could walk on foot, grab necessities, go out and keep shopping on a regular basis, just doing small stops,” he said.

What Grimes learned about people in the area, though, was different.

After months of the store eating up money, Full Court opted to swap it into the Sbrocco concept it is today.

While the downtown population is growing, Grimes said, it’s one with seemingly two crowds: professionals in pricier lofts who can support specialty foods and nonprofessionals or young people whose budgets demand lower prices.

Being a small, urban store meant low buying power, and catering to both crowds proved a costly balancing act, Grimes said.

“In order to make that business viable, you need to appeal to everybody down there,” he said, “and the reality is that the demographic is so broad, it’s amazing.”

About 8,000 people now live downtown. If that number grew to about 20,000, the area could likely support a grocery store, Downtown Community Alliance President Glenn Lyons has said.

With the addition of more condos and apartments downtown in buildings like the Equitable and Des Moines, that size population may not take long to reach.

Now, though, downtown’s population is too diverse and too small to support a grocery, said Marcus Walsh, who managed the Village Market, which opened in 2007 in the East Village. The Village Market sold higher-end items, and for a while it went well.

“Initially it was like the darling of the city,” Walsh said. “But then it just became a barren place.”

The store closed after six months.

Walsh said that while many living downtown seek an urban experience, they don’t always want to pay for one.

Besides, Des Moines is small enough that it isn’t a hassle for people to drive to the outer fringes of downtown — or even to the suburbs — to shop.

“People are just going to get in their car and go to Dahl’s,” he said. “It’s all about savings.”

Still, selling grocery items downtown has worked so far for Shaw Mahmood, owner of the Downtown Pantry on Fourth Street. At more than a year old, Mahmood’s store has lasted longer than other grocers by not focusing at all on the fine wine set. His storefront advertises cigarettes, beer and pop.

“Right now this is the only place this downtown has,” he said. “We try to compete with everybody.”

Mahmood said his store sells the most grocery items at the beginning of each month, when many customers receive benefit checks. With late hours, the weekends see mostly liquor and beer sales.

He cuts costs by getting his groceries from the cheapest supplier he can find.

“Mostly I go to Sam’s Club a lot,” he said. “I at least go there every other day.”

While Mahmood said he tries to provide everything downtown residents need, he thinks a bigger store could be good for the area. “I don’t know if they would make it or not,” he said, “but it’s like a 50-50 shot.”

Source: The Des Moines Register

Food Store Employees Taken to Des Moines Hospitals Following Assaults

jwilliams@iowagrocers.com — Mon, 06 Feb 2012 00:00:00 CST

Two Des Moines women are being held in the Polk County Jail on first-degree robbery charges for allegedly attacking Dahl’s Foods employees in a shoplifting incident.

Three employees were taken to local hospitals by ambulance following the attacks, police said.

Taken into custody on Saturday evening were Karolann Benitress Marie Harris and Ariana Jessieka Harris, both 20.

In addition to the robbery charges, both women were charged with willful injury, criminal mischief and assault. Ariana Harris also was charged with assaulting a police officer.

Dahl’s employees injured in the incident and their injuries, include: Benjamin Bates, bite mark right forearm, pain to abdomen; Ryan Halverson, pain to rib area; Aldijana Omerasevic, pain to legs and face.

Items broken or damaged in the loss prevention office included a computer monitor, a television, desk phone, printer, numerous bottles, light bulbs and file cabinets. A window frame was dislodged in a squad car and a window was pushed out of its track.

Officers were called to the Dahl’s store at 3425 Ingersoll Ave., shortly before 4:30 p.m., Saturday. When they arrived they were informed that store employees were physically fighting with two women. Two employees had Karolann Harris on the floor and she was under control. Ariana Harris was screaming to be released and was kicking her feet in an attempt to get away, police said.

The women were placed in handcuffs. Officials said Ariana Harris was screaming profanities. When an officer approached her to tell her to calm down she allegedly put a foot between the officers legs and kicked. The officer put his legs together and the kick reportedly hit him in the knees.

Ariana Harris also is accused of damaging the squad car.

Employees told police they saw Ariana Harris concealing items in a purse. She allegedly tried to leave the store without paying for the items. She was approached by store employees, police said, and used physical force in an attempt to get away. Police said Karolann Harris took a swing at an employee in an attempt to free Ariana. The punch did not make contact.

Officers said Ariana Harris grabbed a glass bottle at one point, broke it and attempted to use the broken glass as a weapon. She reportedly dropped the bottle during the struggle.

Crime scene technicians were called to the store to document employee injuries and property damage.

Both women are being held on bonds of more than $40,000 each.

Three ambulances were called to the scene. Employees were taken to Mercy Medical Center and Iowa Methodist Medical Center so their injuries could be evaluated.

First-degree robbery is a class B felony, punishable by up to 25 years in prison.

Source: The Des Moines Register

21st Annual IGEF Scholarship Golf Classic Tees off May 17

jwilliams@iowagrocers.com — Mon, 06 Feb 2012 00:00:00 CST

The 2012 Iowa Grocers Education Foundation Scholarship Golf Classic, presented by the Iowa Grocery Industry Association, will be held Thursday, May 17, at both the Legacy Golf Course and Echo Valley Country Club. Both courses will feature the tradition event format of a four-person best shot with all the proceeds on the day going to fund scholarships for college students with ties to the grocery industry.

The twenty-one year golf function will begin with an 11 a.m. shotgun start at both courses. Individuals may register at the price of $225 per golfer for members and $250 per golfer for non-members, which includes lunch, assorted appetizers, one mulligan, two drink tickets and one raffle ticket. Hole sponsorships are also available at both courses for $1,500, or $1300 for IGIA members. Sponsorships include a golf foursome, signage at a hole on both courses, recognition in the E-Scanner newsletter and iowa grocer magazine and the ability to have products in the registration area at both golf courses, among other things.

All registrations and sponsorship requests must be received by the Iowa Grocery Industry Association no later than Thursday, May 3. Faxed and e-mailed registrations will be accepted with credit card payment only.

About the IGEF Scholarship Golf Classic

The Iowa Grocers Education Foundation Scholarship Golf Classic is open to retail store owners, executives, managers, warehouse executives and personnel, field representatives, buyers, manufacturers, brokers, sales representatives, men and women. All proceeds from the event will benefit the Iowa Grocers Education Foundation, which funds scholarships for children of full-time employees working for Iowa Grocery Industry Association members or students who are full-time or part-time employees of firms that are members of the IGIA.

2012 IGEF Scholarship Golf Classic Hole Sponsors

Each year, the Iowa Grocers Education Foundation Awards 85 scholarships, totally over $60,000 to 25 students, who are at least part-time employees of an IGIA member company of the children of a full-time employee working for an IGIA member.

To become a 2012 IGEF Scholarship Golf Hole Sponsor and make your contribution to the IGEF scholarship fund, please contact Cara Corkrean at the IGIA office by phone at 515-270-2628 or e-mail at ccorkrean@iowagrocers.com.

FMS Pulse: Week 3 Proves Relatively Flat

jwilliams@iowagrocers.com — Mon, 06 Feb 2012 00:00:00 CST

Sales have flattened out in the third week of January after an up and down first two weeks. The month of January remains slightly down compared to last year as we head toward February.

Same Store Sales % Change from Last Year

January (4 Weeks Ending 01/28/12)
Week 3 (Week Ending 1/21/12)	-0.40%
Week 2 (Week Ending 1/14/12)	+3.15%
Week 1 (Week Ending 1/07/12)	-4.44%

December (5 Weeks Ending 12/31/11)	+2.03%
Week 5 (Week Ending 12/31/11)	-7.86%
Week 4 (Week Ending 12/24/11)	+14.02%
Week 3 (Week Ending 12/17/11)	+2.64%
Week 2 (Week Ending 12/10/11)	+0.45%
Week 1 (Week Ending 12/03/11)	-1.01%

November (4 Weeks Ending 11/26/11)	+3.19%

October (4 Weeks Ending 10/29/11)	+4.01%

September (5 Weeks Ending 10/01/11)	+2.16%

August (4 Weeks Ending 08/27/11)	+5.10%

July (4 Weeks Ending 07/30/11)	+5.69%

June (5 Weeks Ending 07/02/11)	+3.20%

May (4 Weeks Ending 05/28/11)	+2.14%

April (4 Weeks Ending 04/30/11) *Easter Month	+5.88%

March (5 Weeks Ending 04/02/11)	-1.79%

February (4 Weeks Ending 02/26/11)	-0.39%

January (4 Weeks Ending 01/29/11)	+2.01%

December (5 Weeks Ending 01/01/11)	+0.49%

Interchange Fees: "Want to decrease your interchange fees?"

jwilliams@iowagrocers.com — Fri, 03 Feb 2012 00:00:00 CST

Interchange Fees: "Want to decrease your interchange fees?" Now, some people might say why are you asking such a dumb question? Of course I do! And I am sure your answer is a resounding yes. One of the things a good, thorough association does, though, is look at all facets of an issue to make sure it is a good thing, and hopefully for all members, if not the vast majority. It is about removing the interchange fees from state sales tax, the gas tax, and possibly bottle and can deposits.

IGIA wants to do some fact finding, and gain feedback from our members. We are asking you to do a little homework so IGIA can make a reasoned, strong decision on a bill that has not been introduced in the Iowa Legislature, but almost certainly will. So, pull out your pad and pencil now!

The area IGIA is asking you to focus on is this:

What is the average amount of sales tax you collect a week?
Then, figure out the percentage of sales that is paid in an average week by cards that charge interchange fees- both credit and debit.
Take the percentage to figure how much sales tax is paid by cards.
Take the sales tax number that is paid by cards, and multiply that by two percent, which we will use as an average for interchange fees.
Once you have that number, take it by 52 weeks to give you a number that it would be annually.
Do the same calculation above on bottle deposits, and if you sell fuel, the state fuel tax.

Frankly, IGIA wants to know those numbers to make a reasoned approach on this issue. If you could send those in to jfleagle@iowagrocers.com, in strict confidence, it would help a lot. It will also give you an idea of what it could save you a year. I know we have not talked about costs yet, and we will, as we try and determine them. But take this step today.

There are six areas of questions the IGIA Government Relations (GR) Committee are reviewing on this issue:

Operational- Will this be technologically feasible?
Costs & benefits? What will be the costs, per lane, and per store? And who will pay them? What will be the savings gained per store?
Legislative grassroots efforts- What will be everyone's commitment to grassroots calls, letters and contacts to legislators? It will not be just enough to say you are for something, you will have to back it up and do the work with your legislator. Will you?
Lobbyists (and this is more for the chains)- Will you commit your lobbyists to actively working on this issue as a priority?
If the bill passes, it faces a certain legal challenge in the courts. Who will defend and/or advocate the position?
Legal Expenses- Are we as an industry (and individual stores) prepared to pay for a legal challenge if successful? It most likely will not be cheap, could quickly run into six figures. Will you be willing to contribute?

Do Your Employees Know how your Customers Define a Superior Shopping Experience?

jwilliams@iowagrocers.com — Wed, 01 Feb 2012 00:00:00 CST

The key word in this question is superior. The outcome you want from achieving a superior shopping experience is to:

Enable your business to achieve financial results which provide a reasonable return to shareholders and career growth and job opportunities for your employees.

Just meeting basic needs does not get you to a superior level. A clean store, friendly service, quality perishables, broad assortment and competitive prices are the foundation upon which the superior shopping experience is built. Superior performance building on this foundation requires making such a strong impression on your customer that they choose to shop your store over your competitor.

To achieve a “superior” position in your customer's mind requires a clear understanding of how your customers would define a superior shopping experience. Your workforce must focus on creating that superior shopping experience.

The process for aligning what a customer defines as a “superior shopping experience” with what your employees think is a superior shopping experience requires:

Market research which clearly defines what your customer defines as a “superior shopping experience”.
In-store research of how your employees define a “superior shopping experience”.

Once you've concluded your research the next step is to:

Communicate your customer's expectations with your store team.
Create and implement training programs for your store team to meet the needs defined by your customers.
Conduct regularly scheduled follow-up research to measure the progress you are making in providing your customer a superior shopping experience.
Make changes where necessary to stay on course.

Demographics can make a huge difference in what your customers define as a superior shopping experience. The most relevant research will come from your customers and the market you serve on a store by store basis.

Source: Jack Hubbs, Food for Thought

Rural Energy for America Program Announced

jwilliams@iowagrocers.com — Wed, 01 Feb 2012 00:00:00 CST

On Friday, January 20, the U.S. Department of Agriculture (USDA) announced the Fiscal Year 2012 Rural Energy for America Program (REAP). This grant and guaranteed loan program helps agricultural producers and rural small businesses reduce energy costs and consumption and helps meet the nation's critical energy needs. Click here for your copy of the Notice of Funds Availability (NOFA).

Agricultural producers and rural small businesses are eligible to apply. Grants are available to reimburse 25% of the costs to purchase and install renewable energy or energy efficiency improvements up to $500,000. The guaranteed loans can cover 75% of the costs up to $25 million. Grants are also available to reimburse the 25% of the costs of a feasibility study for renewable energy projects up to $50,000. Finally, grants are available up to $100,000 to assist public bodies, institutes of higher education and rural electric cooperatives in providing energy audits and renewable energy development assistance to rural small businesses and agricultural producers.

Please note that there is $25.4 million available nationwide which is substantially less than in recent years. The program is expected to be highly competitive this year!

In order to be considered for Fiscal Year 2012 funds, complete applications must be received by the appropriate USDA Rural Development Area Office no later than 4:30 p.m. on the following dates:

For energy audit and renewable energy development assistance grants – February 21, 2012.

For renewable energy system and energy efficiency improvement grant and combination grant and guaranteed loan applications – March 30, 2012.

For renewable energy system feasibility study grant applications - March 30, 2012.

For renewable energy system and energy efficiency improvement guaranteed loan only applications - June 29, 2012.

For more information including fact sheets, lists of consultants, energy auditors and grant writers, regulations, forms and application template, visit the USDA website at www.rurdev.usda.gov/IA_bc_energy_reap.html.

Source: USDA

Tips from the Iowa Lottery

jwilliams@iowagrocers.com — Wed, 01 Feb 2012 00:00:00 CST

Be Familiar with Ticket Signing Rules

As part of its commitment to player security, Iowa requires that players sign their tickets before retail personnel can check them on their behalf or cash them. Signing the ticket protects both you and the player and ensures that the player is paid any prize that they win.

Retailers may only check and cash signed tickets. This applies to all Iowa Lottery tickets.

Follow these steps to check or validate lottery tickets:

1) Ask the player if they have signed the back of the ticket. If they haven’t, have them sign it BEFORE you attempt to check or validate it. This applies to all tickets. The players should sign the signature line on the back of the ticket. For any pull-tab ticket that does not have a signature line, have them sign on the bottom of the back of the ticket.

2) Check or validate the ticket in the lotto terminal.

3) Pay any prize due to the player. Or, if the ticket is not a winner, hand it back to the player. Do not leave previously checked tickets on the counter.

Remember that this requirement is part of your signed agreement with the Lottery to sell their products. Any failure to follow the Lottery’s terms and conditions may result in revocation, suspension or termination of your license or limitations on your ability to sell Iowa Lottery tickets.

Review on Cancelling Lotto Games, Getting Credit

Here’s a review for everyone regarding which games’ tickets can be cancelled and which ones cannot, plus an overview of the Ticket Allowance Program.

Which Games can be Cancelled?

Tickets from the $100,000 Cash Game, Pick 3 and Pick 4 games can be cancelled, but there are some rules to follow when cancelling. Tickets must be cancelled the same day in the same store where they were sold and before the sales cutoff time for the game.

Follow this procedure to cancel a lotto ticket:

1) Touch the “Cash/Cancel” tab on the main screen

2) Touch “Cancel Ticket”

3) Scan the barcode on the ticket using the document scanner or the scanner on the front of the printer. You may also manually enter the numbers using the keypad, then touch “OK” to accept the serial number and submit it for cancellation.

Which Games can’t be Cancelled?

You will NOT be able to cancel plays for the Powerball, Hot Lotto or Mega Millions games.

If you run one of these tickets through the terminal, you will receive a prompt informing you that the ticket is not eligible to be cancelled. This includes jammed or misprinted tickets.

Automatic Additional 0.1 Percent Allowance

The Iowa Lottery now issues to all online retailers and additional 0.1 percent of ALL online games sales added to the base commission rate of 5.5 percent each week. The 0.1 percent applies to all online games, not jus the games that cannot be cancelled.

You will earn extra commission every week, even when you don’t have any error tickets. And you can sell non-damaged tickets to another customer.

Source: Lottery Action

IGIA Partners in Support of the Iowa Food and Family Project

jwilliams@iowagrocers.com — Wed, 01 Feb 2012 00:00:00 CST

“Food. I’ve never seen Iowans more interested in what they eat. That’s not going to change any time soon which is why the creation of the Iowa Food & Family Project is so timely. You’re nurturing and facilitating dialogue and understanding about food at a time when people want to be engaged.”

Dan Winters, WHO-HD TV (Des Moines) anchor and investigative reporter

Iowa’s farmers and grocery retailers are partners in success. Working together, they grow, provide and deliver an abundance of wholesome food choices at a variety of prices.

This achievement coincides with a renaissance of interest about food. According to Gallup, 85 percent of American consumers want to know more about the food they purchase, including how it’s grown, raised, processed and packaged.

As interest piques, consumers seek answers to a variety of food-related topics. They range from the integrity of today’s farms and human health to environmental quality, animal well-being and community vitality. In turn, the information sources they turn to influence their purchasing decisions. Nearly three-quarters of Americans say they think about how their food was grown and raised when purchasing groceries. Among those, 41 percent admit that these issues impact their purchase decisions “very much” (Source: U.S. Farmers & Ranchers Alliance, 2011).

Providing consumers timely and accurate information about the quality and origins of food matters and is a shared goal of the Iowa Food and Family Project (IFFP) and Iowa Grocery Industry Association (IGIA).

The IFFP (www.iowafoodandfamily.com), launched last year by the Iowa Soybean Association, is a purpose-driven initiative that unites Iowans in conversations about food through personal engagement, advocacy and collaboration. It involves the support and involvement of nearly 30 farm, retail, business and food relief organizations.

It delivers on this mission by serving as Presenting Sponsor of the Iowa Games and supporter of Live Healthy Iowa. The programs, administered by the Ames-based Iowa Sports Foundation (ISF), involve nearly 60,000 Iowans in activities that enhance their health and well-being. The partnership provides Iowa’s farmers and food retailers a unique opportunity to share information with people interested in healthy food and the integrity of the people who provide it.

The IFFP also:

· Engages with a growing online audience via its Facebook and Twitter presence (@foodnfamilies)

· Frequently keynotes presentations to civic, community and consumer groups statewide

· Conducts innovative programs including “Together We CAN” exhibits at the Summer Iowa Games and Iowa State Fair, “Be Our Guest, Be A Farmer” contest, “Planting A Seed” FFA Grant Program and “Special Delivery. Homes. Help. Hope. For Haiti” campaign.

· Serves a higher purpose by helping people in need. Last year, the IFFP helped raise nearly $20,000 in food and cash donations for Iowa’s food banks

IGIA President Jerry Fleagle says the mission and purpose of the IFFP has strategic relevance for the association.

“We’re dedicated to providing and delivering wholesome food for everyone and assisting our members in serving their customers,” Fleagle says. “By partnering with the IFFP, we can more effectively coordinate activities that frequently connect consumers to the information they want and value about their food and the people who provide it.”

Communications and ag engagement programs will be tailored to the individual needs of IGIA members and their employees. The organizations will collaborate on activities including the IGIA annual meeting in July and Iowa State Fair in August. Be watching for more information this spring as the relationship takes root!

FMI Designs and Produces NutriFacts Posters for Food Retailers

jwilliams@iowagrocers.com — Wed, 01 Feb 2012 00:00:00 CST

In response to U.S. Department of Agriculture (USDA) guidance, two complimentary copies of the Food Marketing Institute (FMI) Meat and Poultry NutriFacts Poster have been mailed to the official FMI contact at all domestic retailer member companies. These 24x36 posters contain - on a single sheet - all the nutritional information on beef and veal, pork and lamb, and chicken and turkey products necessary to be compliant with the new USDA’s Food Safety and Inspection Service (FSIS) standards.

The posters must be displayed in “close proximity” to the products. Additional copies of the poster may be ordered through the FMI store, which may be accessed by clicking here. The price structure for additional posters is:

Orders of 1 – 50 of the 24x36 posters
- Members - $2.50 per poster
- Non-members - $5.00 per poster
Orders of 50 or more of the 24x36 posters
- Members: $2.00 per poster
- Non-members - $4.00 per poster

Should your company prefer to print its own copies, a high resolution PDF – poster print-ready quality – is also available by clicking here. The high res PDF would also allow the addition of individual store logos. The high resolution PDF is offered at the following prices:

Members: $75.00
Non-members: $150.00

Additional formats of the poster, including smaller sizes and Beef & Veal, Chicken & Turkey and Pork & Lamb posters, are also available via FMI’s Store. If you have any questions regarding the Meat and Poultry Nutri-Facts posters, contact David Fikes at 202-220-0720.

Source: FMI News Aisle by Aisle

2012 Build with Bags Program to Award up to $40,000 in Grant Money

jwilliams@iowagrocers.com — Tue, 31 Jan 2012 00:00:00 CST

Iowa schools, parks to benefit from plastic bag recycling initiative led by Iowa grocers

With over 36 entries in 2011, the grant program holds a promising outlook for 2012. This year, the program will provide up to $40,000 in grants to aid Iowa schools and parks, helping local communities generate funds necessary to purchase recycled plastic outdoor furniture and equipment. The idea is to connect the money from the Build with Bags Grant Program with efforts across the state to increase plastic bag recycling.

It’s an innovative approach that will give Iowans a first-hand look at what happens to their recycled plastic bags, and Build with Bags Program sponsors and participants believe it will effectively demonstrate how recycled plastic bags can be re-used.

“We want to show people what can be done with plastic bags when they are recycled properly,” said Fleagle. “This program will provide that opportunity and give tangible examples of the positives that result from recycling plastic bags.”

Originally launched in 2009, the Build with Bags program was established to change consumer habits and create awareness for plastic bag recycling.

As a cooperative effort among the Iowa Grocery Industry Association, Keep Iowa Beautiful, Metro Waste Authority in Des Moines, Iowa Department of Natural Resources and The Des Moines Register, the program has four main goals: (1) Double the amount of plastic bags recycled over a 24-month period; (2) Reduce consumption of plastic bags; (3) Increase use of reusable bags; and (4) Encourage purchases of furniture and equipment made from recycled plastic through a grant program for parks and schools.

We’re striving to give Iowans a recognizable name and philosophy that will bring long-term success to the program and the recycling of plastic bags,” said Jerry Fleagle, president of the Iowa Grocery Industry Association.

One component of the Build with Bags Program that Iowa stands to benefit from is its grant program and school recycling challenge. The grant program was developed to support Build with Bags’ primary goal of increasing plastic bag recycling. It was initiated to support “closing the plastic bag loop” by demonstrating how recycled plastic bags can be re-used in the manufacturing of outdoor furniture and equipment.

“Build with Bags can be a viable option that people all around the country are looking for,” Fleagle said. “The grant program gives communities a strong incentive to recycle plastic bags and the school recycling challenge is great evidence of what can be accomplished with the proper level of support and participation.”

All governmental entities, schools and organizations (i.e. service clubs or non-profits) within Iowa are able to apply for funding through the grant program to aid in the purchase of items for a school or park. A maximum award of $2,000 is available with each applicant being limited to one application or project per year.

“Communities all across Iowa stand to benefit from the Build with Bags Grant Program,” said Gerry Schnepf, executive director of Keep Iowa Beautiful. “Schools and parks that may have difficulty in purchasing outdoor furniture and equipment now have an opportunity to do so. And it’s an opportunity through a program that supports our environment.”

Grant information and posters are being distributed by Keep Iowa Beautiful to organizations across the state, and grocery stores are being asked to spread the message within their stores and communities.

Applications are currently being accepted for the 2012 calendar year. Details on how to apply, as well as selection criteria, are outlined online at www.itseasytorecycle.org and www.iowagrocers.com. The deadline to apply for a Build with Bags grant is March. Awards will be announced on April 23, the day after Earth Day.

“Grocery stores have long provided a means to recycle plastic bags so they could be reused as other materials,” Fleagle said. “The Build with Bags Grant Program can only aid those efforts.”

For more information on Build with Bags or its grant program opportunities, please visit www.itseasytorecycle.org or www.iowagrocers.com.

Ric Jurgens Wins Spirit of America Award

jwilliams@iowagrocers.com — Tue, 31 Jan 2012 00:00:00 CST

Ric Jurgens, chairman and CEO of Hy-Vee Inc., received the National Grocers Association’s Spirit of America Award.

One of NGA’s top honors, the award was presented to Jurgens during a ceremony at the Nebraska Grocery Industry Association’s recent annual legislative dinner, to recognize his life-long leadership in the grocery industry.

“Ric has been a steadfast leader in our industry for so many years, always leading the way with his vision, innovation and compassion toward others,” said NGA President and CEO Peter Larkin, who presented the award. “Our industry has not only benefited greatly from his commitment, service and dedication, but so too has Hy-Vee and the customers and communities it serves.”

A 42-year veteran of Iowa-based Hy-Vee, Jurgens has spent his entire business career with the company, serving as a store manager, district manager, regional manager, senior VP, executive VP and chief administrative officer, president and, his current capacity, chairman and CEO. Jurgens plans to retire from the company June 1.

During his tenure at Hy-Vee, the company has grown to 235 stores in eight states and has increased sales to a record $7.3 billion for 2011, ranking it among the top 25 supermarket chains and the top 50 private companies in the United States. An Iowa native, Jurgens has received numerous awards for his industry and community work.

The NGA Spirit of America Award, established in 1982, honors key industry and community figures who have provided leadership in the areas of community services and government relations on behalf of a free and independent food distribution system.

NGA is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry.

Source: Progressive Grocer

Kum & Go COO Folden to Retire

jwilliams@iowagrocers.com — Tue, 31 Jan 2012 00:00:00 CST

Industry vet departing "at height of career" after more than 40 years

After more than four decades with the retailer, Kum & Go LC chief operating officer Dennis N. Folden announced to associates on last week his plans to retire from the company later this summer, saying the timing was "perfect."

"I have been honored to serve Kum & Go for more than 40 years. The future of this company is strong, and it is in the best possible position. There is a talented leadership team in place. This decision was not taken lightly. But, I wanted to embark upon new endeavors at this point in my life," Folden said.

The company is launching an internal and external search for a new COO. Folden plans to work closely with Kum & Go to ensure a timely and smooth transition.

"I have truly enjoyed my time at Kum & Go. We have great teamwork and caring here. This company has a strong history and keen focus on taking care of the customer. There's a level of passion for retail that is truly special. I feel fortunate to have worked with so many incredible people and three generations of the Krause and Gentle families," he added.

Dennis Folden, Kum & Go president and CEO Kyle J. Krause had these words for associates: "As many of you know, I strongly value the close working relationship that Dennis and I have developed over the years. Dennis is choosing to leave Kum & Go at the height of his career. He has been instrumental in driving the strategic direction of the company and positioning us for growth. His legacy at Kum & Go will be his passion for retail and operations, not to mention his drive for the highest level of customer service."

Krause added, "Dennis has developed and mentored an incredible number of individuals throughout our organization. We are deeply appreciative for Dennis' dedication and contributions to Kum & Go."

Folden first joined Kum & Go in November 1970 as a part-time retail associate who saw early on the full potential of the company. He quickly gained the respect of the co-founders, Tony Gentle and Bill Krause, as well as Kyle J. Krause.

Folden has had a successful career path progressing through the ranks for Kum & Go. He advanced to the positions of sales manager, general manager and supervisor. Following that, he spent time leading Kum & Go's operations, marketing and real-estate departments. He later was named senior vice president of marketing. He was Kum & Go's executive vice president prior to being promoted to COO in 2005.

Folden also is an active and dedicated community business leader. By combining his personal passions with that of Kum & Go, he has exhibited the core values of what it means to be a Kum & Go associate, the company said. He has been a dedicated leader not only within Kum & Go, but throughout the communities it serves. Currently, he volunteers his time to Hope Lutheran Church Missions board and the Cambio Breakfast Club.

Kum & Go is planning a special event later this summer to recognize Folden for his service.

Source: CSP Daily News

Jerry�s Jottings: IGIA Members Will Need to "Study Up" on Union Do's and Don'ts

jwilliams@iowagrocers.com — Tue, 31 Jan 2012 00:00:00 CST

Three Proactive Measures for IGIA Members to Make

Union elections could become a lot easier in IGIA member businesses.

As noted in “Jottings” two weeks ago, President Obama made several “recess” appointments over the holiday break. “Recess appointments” are made when the Senate will not confirm a presidential appointment. The appointments are good only until the end of the session year, unless they get confirmed during that year’s session. Three key appointments were for the National Labor Relations Board (NLRB), which will allow for an aggressive pro union agenda for 2012.

The top issue is nicknamed “Ambush Elections”. The National Labor Relations Board’s unfair “ambush” election” rule would radically change the process for union representation elections. The new rule effectively shortens election time frames, limiting employees’ opportunity to hear from employers and make an informed choice and diminishing employers’ due process. Still, the NLRB is slated to continue issuing decisions and rules that will have a significant impact on the workplace – for both unionized and non-unionized employers. Although there is a legal challenge by the US Chamber of Commerce and the Coalition for a Democratic Workplace (CDW), of which the National Grocers Association (NGA) and Food Marketing Institute are steering committee members, IGIA members need to start thinking about pro active measures they can take.

Regardless of the legal challenges, IGIA members will need to start planning for an aggressive pro-union agenda by the NLRB. IGIA members will need to think about proactive steps that they can take. Some things that IGIA members should do (and are just good operating practices) include these three ideas:

1. Work to constantly improve employee relations. After all, if the employees are treated fairly, they will be less likely to believe the utopian promises of unionization. Frankly, union organizers will find out, so you might as well find out ahead of time and be proactive.

Employee surveys will continue to be important in employee relations. However, employers need to find survey companies that can complete surveys in a matter of days and turn around results with tentative action plans within 30 days of survey completion. The concept of the instant survey or quick result survey is going to become more popular. Survey Monkey is one tool to use that is either free, or inexpensive. You will have to develop your own questions, however. Employers need to have a notion of issues and solutions from their employee’s perspective. Those surveys are valuable. Concise action plans will also carry the day. When implementing, the most effective action plans focus on delivering no more than a dozen focused actions per 6-12 months.

If implemented properly, communicated effectively and adjusted in a timely manner based on post implementation feedback, then the action plan is far more important than the survey. Get the data – initially implement high return actions (those actions may have little or no cost in many cases) and make sure your work forces knows you have done so. That means you have to tell them you took action… a step many employers claim they “omit out of humility.” They also omit this step to their detriment. These same employers often don’t get credit for the changes they enacted at the suggestion of employees because the feedback loop was not closed. Publicize change especially if your employees asked for it. Get credit for being responsive!

2. No Solicitation Policies- If you don’t have one, get one. Make sure to post it on your front door, but also in your employee handbook. And enforce it. Unfortunately, this means no Girl Scout cookie solicitations and no pledges for a fund raising event, even great causes like “Race for the Cure”, and others. If you allow one, the union organizers will cry foul if you don’t let them solicit on your property, and it will likely stand up in hearings and court.

3. Wages & Benefits- Make sure you tell your employees about ALL your benefits and why you are competitive in the marketplace. And if you find out you are not competitive, consider taking measures to make yourself competitive, or face a more likely union organizing effort. Think about it- if your employees think and know you are competitive, they will be less likely to believe an outside organizer. So, tell your story, but be accurate.

IGIA members will need to think about proactive steps that they can take. Things like training their managers on the “do’s and don’ts” towards union activity- and the best time to start is right now. If you arm managers with the tools and resources to communicate, and not wait until you face a possible union election, you will minimize the chances of unionization in your business.

Are You Ready for Your FDA Tobacco Inspection?

jwilliams@iowagrocers.com — Wed, 25 Jan 2012 00:00:00 CST

ABD, FDA Partner for Retail Tobacco Compliance Checks

The Iowa Alcoholic Beverages Division (ABD) will begin the inspections and undercover buys beginning February 1. Approximately 215 retailers statewide will be inspected per month.

However, ABD has pledged to hold a webinar very soon for IGIA members to help them understand what they need to do to comply. The webinar will probably be held within the next 15 days. As soon as the date has been set for the training webinar, IGIA will be notifying its members via email of the details.

Here are the details:

ABD has been awarded a contract by the Food and Drug Administration (FDA) to help enforce provisions of the Family Smoking Prevention and Tobacco Control Act of 2009 (Tobacco Control Act). Under the law, tobacco retailers will be inspected to ensure they are complying with marketing and sales restrictions on cigarettes and smokeless tobacco products. The FDA contract was awarded for one year plus two option years. FDA expects there will be further opportunity to contract beyond the initial three years.

“The Division’s investigators are experienced in state tobacco inspections and have received training for the federal checks,” said ABD Administrator Stephen Larson. “The transition to conduct these FDA inspections will be smooth and fit well within our overall priority to ensure compliant sales of tobacco in Iowa.”

The Tobacco Control Act seeks to prevent and reduce tobacco use by young people by enforcing the minimum legal age to purchase tobacco products. The law also prohibits false or misleading labeling and advertising for tobacco products, and gives authority to FDA to enforce all its provisions.

Under the contract, ABD investigators conduct undercover buys, as well as advertising and labeling inspections, in accordance with the FDA Tobacco Compliance Check contract. All potential tobacco retailer violations found by ABD investigators are reported to the FDA. The FDA then brings enforcement actions against tobacco retailers in Iowa that may include warning letters, civil money penalties and no-tobacco-sales orders.

More information on the partnership and compliance checks can be found at www.fda.gov/tobacco and IowaABD.com.

Source: Iowa ABD

Iowa Lawmakers: Change Bottle Bill to Save Redemption Centers

jwilliams@iowagrocers.com — Tue, 24 Jan 2012 00:00:00 CST

The bottle-deposit issue has bedeviled lawmakers for more than a decade, and long-timers at the capitol joke that a legislative session is not official unless there is a bottle bill debate.

This time, the Iowa Senate president and a freshman House member are proposing to allow redemption centers to pay consumers only four cents of Iowa’s nickel deposit on recyclable cans and bottles.

Democrats Sen. Jack Kibbie of Emmetsburg and Rep. John Wittneben of Estherville say the change is needed to keep the redemption centers — and the entire beverage container recycling system — viable.

“In 1978, a penny-a-can may have been good,” Wittneben said, “but they haven’t gotten a raise in 33, almost 34, years.”

Over the years, there have been proposals to expand the bottle bill to include water bottles and energy drinks, to double the deposit to a dime per container, to allow the state to recover the unclaimed deposits and proposals to kill the program entirely.

The bottle bill, which was passed in 1978 with the support of then-Rep. Terry Branstad, has become something akin to the flag, motherhood and apple pie in Iowa. However, just as support for the bottle bill has become institutionalized, so has opposition to changing it.

“It’s been there for 30 years, and it’s worked well, we think,” said Michael Heller, a lobbyist for the Iowa Beer Wholesalers Association. The group is registered as “undecided” on the proposals this year, but generally opposes bottle-bill changes. “It may not be perfect, but we’ve put a lot of effort into making it work.”

Kibbie and Wittneben argue their proposals — Senate File 2001 and House File 445 — would help ensure the system continues to work. Since 1978, redemption centers and retailers have had to squeeze the penny they get to keep to pay higher costs for lights, heat, insurance and other costs.

Ten states have bottle bills of one sort or another. Bills related to beverage container issues have surfaced in 23 states in the past year. Only Delaware has repealed a bottle law in recent years.

Opposition comes from the beverage industry, which argues redemption systems disrupt sales and create higher prices.

In Iowa, every proposal has been met with stiff opposition from critics who say the once-innovative bottle bill has outlived its need and usefulness.

“Tinkering with an inefficient system doesn’t make sense” and the Kibbie and Wittneben bills don’t make the system more efficient, said Scott Sundstrom, who lobbies for the Iowa Grocery Industry Association. Allowing redemption centers to keep another penny per container would “prop up an inefficient system.”

It may be inefficient, but it’s definitely necessary, said Linda Hinton of the Iowa State Association of Counties.

That extra cent would help ensure the viability of redemption centers, especially in rural areas. Those centers “are the linchpin of the bottle bill,” she said.

Grocers, bottlers and distributors are, for the most part, opposed to any expansion or any change “that makes an inefficient system more inefficient,” Sundstrom said.

“The bottle bill may have been innovative in the 1970s, but the world has moved forward since then,” Sundstrom said.

Kibbie is all for making the system more efficient. For example, rather than separate Coke from Pepsi from Bud, containers should be sorted by material — plastic, glass, aluminum, he said.

For the most part, grocers, bottlers and distributors would prefer to see the trend toward single-stream, curbside recycling accelerated. In communities where that is the practice, the recycling authority, whether public or private, reclaims the scrap value of aluminum and other materials to offset the cost of collecting and sorting the material, Sundstrom said.

That might work someday, Wittneben and Hinton say, but it doesn’t exist on a broad scale, especially in rural Iowa.

“If we could get from where we are to there, we would be interested,” Hinton said, “but in the meantime, the redemption centers need that penny.”

Retailers and the beverage industry tend to encourage lawmakers and policymakers to take a long-term view and see bottle and can redemption as part of a much bigger picture.

“I’m all for having a bigger discussion,” Kibbie said. “I’m all for changing the system, but I haven’t seen anyone get a bill passed. It’s been tried, but every time it gets bogged down.

His bill, Kibbie said, would be a stop-gap measure to keep the redemption centers open until that “bigger discussion” bears fruit.

Source: The Muscatine Journal

C-Store Corner: Casey's and QuikTrip

jwilliams@iowagrocers.com — Tue, 24 Jan 2012 00:00:00 CST

Casey’s Clocks in for Sales

Expanding to 24-hour operations at 150 more locations

On the heels of pulling off a significant boost in same-store sales, Casey's General Stores, Inc. will prime the pump in that territory by expanding to 24-operation in a growing number of its retail outlets.

On January 17, 2012, Casey's reported December 2011 same-store sales results for stores open for one full year, according to a filing with the U.S. Securities & Exchange Commission. Same-store sales for prepared food and fountain increased 13.3%, and grocery and other merchandise increased 6.9% in December 2011 compared to December 2010.

Same-store gasoline gallons sold decreased 2.4% in December 2011 compared to December 2010. The gasoline margin was in line with the company's fiscal 2012 goal of 13.5 cents per gallon. The average retail price of gasoline sold during December 2011 was $3.09 per gallon,

The Casey's store in Sherman, Ill., recently switched to 24-hour operations as part of a push by the chain to expand operating hours in smaller markets, reported the State Journal-Register.

About 150 stores are making the switch this month, CFO William Walljasper told the newspaper.

The change is based on increased revenue from a group of 70 to 80 stores that started around-the-clock hours early last year.

"We've been very successful with this, and the decision was to expand to other locations," Walljasper said.

Casey's stores traditionally operate from 6:00 a.m. to 11:00 p.m.

Walljasper said late-night and early-morning sales helped increase earnings in 2011. In its latest earnings report, Casey's revenues totaled $3.6 billion for the six-month period ended October 31, an increase of nearly 39% from the same period of 2010.

Village administrator John Swinford said 24-hour sales will capture more of the traffic that passes through Sherman each day, especially during work commutes to and from the state capital of Springfield.

Round-the-clock sales also should help the police and public-works departments, said the report. "They'll be able to buy fuel 24 hours a day," said Swinford. "In the past, they've had to go to three or four locations outside the village."

Casey's was able to convert to 24-hour sales under existing ordinances, including the liquor license.

Walljasper said stores are selected for conversion based on traffic and location. The Sherman location is typical because of its interstate proximity.

"It's certainly not applicable for all of our stores," he said.

Source: CSP Daily News

‘Superfriendly’ QuikTrip

Fortune names QT one of "100 Best Companies to Work For" for tenth consecutive year

For the tenth year in a row, Fortune magazine has selected QuikTrip Corp. as one of the "100 Best Companies to Work For," ranking it No. 66 for 2012. Google topped the list.

For each company on the list, the magazine asks, "What makes it so great?" For QuikTrip, it answered: "The convenience store chain staffs new stores with veteran employees who bring the company's 'superfriendly' culture with them."

Considered among the large company, QuikTrip placed at No. 20, with 11,615 U.S. employees, with a 31% minority and 37% female work force.

For salaried employees, QuikTrip ranked at No. 69, with the most common job title being "store manager," with average annual pay for employees in that role pegged at $69,383. For hourly employees, QuikTrip came in at No. 52, with the most common job title being "relief assistant," with average annual pay for employees in that role at $$44,300.

It is one of 19 companies on the list that have never had a layoff. And the retailer is among the nearly quarter of the companies that offer fully paid sabbaticals.

"QuikTrip takes great pride in being consistent in everything we do. Having Fortune magazine select QT 10 years in a row as one of the best companies to work for is a tremendous honor," said Chet Cadieux, president and CEO of QuikTrip.

"The purpose of QuikTrip is to give our employees the opportunity to grow and succeed. Last year, QuikTrip was fortunate enough to experience one of the largest expansions in our company's history. I would like to personally thank all of QuikTrip's employees for their hard work and tireless dedication, in taking care of our employer, the customer," he added.

To pick the 100 Best Companies to Work For, Fortune partners with the Great Place to Work Institute to conduct one of the most extensive employee survey in corporate America; 280 firms participated in this year's survey. More than 246,000 employees at those companies responded to a survey created by the institute, a global research and consulting firm operating in 45 countries around the world.

Two-thirds of a company's score is based on the results of the institute's Trust Index survey, which is sent to a random sample of employees from each company. The survey asks questions related to their attitudes about management's credibility, job satisfaction, and camaraderie. The other third is based on responses to the institute's Culture Audit, which includes detailed questions about pay and benefit programs and a series of open-ended questions about hiring practices, methods of internal communication, training, recognition programs, and diversity efforts. After evaluations are completed, if news about a company comes to light that may significantly damage employees' faith in management, it can be excluded from the list.

Any company that is at least five years old and has more than 1,000 U.S. employees is eligible.

QuikTrip is a privately held company based in Tulsa, Okla. Founded in 1958, it has grown to a $8.8 billion company with nearly 600 convenience stores in nine major metropolitan areas.

Source: CSPnet.com

Jerry�s Jottings: Clear as Mud!

jwilliams@iowagrocers.com — Wed, 18 Jan 2012 00:00:00 CST

Obama Appointments Create Labor Dilemma for IGIA Members

In the rush of the holiday season, many people may have missed the news out of Washington that could have a drastic effect on unionizing your labor in your business. And, the effect is still unclear, as many “experts” note.

Union elections could become a lot easier in IGIA member businesses. Then again, they may not. So, what gives?

President Obama made several “recess” appointments over the holiday break. “Recess appointments” are made when the Senate will not confirm a presidential appointment. The President (and nearly all Presidents in recent time have) makes a “recess appointment” when the Senate is in recess (usually when the Senate is on a prolonged out of session break), that do not have to be approved (confirmed) by a 60 vote margin in the Senate. The appointments are good only until the end of the session year, unless they get confirmed during that year’s session. Three key appointments were for the National Labor Relations Board (NLRB), which will allow for an aggressive pro union agenda for 2012.

There was an immediate legal challenge by the US Chamber of Commerce and the Coalition for a Democratic Workplace (CDW), of which the National Grocers Association (NGA) and Food Marketing Institute are steering committee members. Still, the NLRB is slated to continue issuing decisions and rules that will have a significant impact on the workplace – for both unionized and non-unionized employers.

How will it affect IGIA members? Regardless of the legal challenges, IGIA members will need to start planning for an aggressive pro-union agenda by the NLRB. Issues like:

· The New Labor Notice Posting Requirement, Effective April 30, 2012 – Aimed to Spark Unionization Effort;

· The New Election Rules, Effective April 30, 2012 – Reductions of Grocers’ Rights, Less Information for Employees and Increased Likelihood of Unionization Efforts

IGIA members will need to think about proactive steps that they can take. Things like training their managers on the “Dos and don’ts” towards union activity- and the best time to start is right now. If you arm managers with the tools and resources to communicate, and not wait until you face a possible union election, you will minimize the chances of unionization in your business.

Some “Do’s”: Remember “FOE” which stands for Fact, Opinion, Experience. You and your managers can talk about facts, opinion and experiences if faced with a possible unionization effort.

And, of course, there are some “Don’ts”: Remember “TIPS” which stands for Threats, Interrogate, Promises and Spy. Do not threaten dismissals, loss of wages or outsourcing. All will lead to NLRB violations. Do not interrogate by asking questions about union organizing activity. Do not make promises, and do not spy on union activity by using hidden cameras, taping or other electronic surveillance.

Next: Watch for top tips on how to be proactive, and make your workplace better so your associates will not even think they need a union!

C-Store Corner: QuickTrip, Kum & Go and Casey�s

jwilliams@iowagrocers.com — Tue, 17 Jan 2012 00:00:00 CST

QuikTrip's 'Latest & Largest'

Wichita's next-gen QuikTrip adds baristas, room for alcoholic beverage sales

QuikTrip rolled out its Generation Three store prototype in Wichita, Kansas, late last week, with the opening of the company's newest convenience store. It's the latest and largest model as the Tulsa, Okla.-based chain steps up its bid for the local fast-food dollar and readies itself to sell more alcoholic beverages if Kansas loosens its liquor laws.

The new Wichita store joins three in Tulsa, four in the Carolinas, one in Texas, one in Kansas City and 45 new stores under construction. Currently, QT has 591 stores nationally, including about 20 in the Wichita area.

The new, 5,700-square-foot store is a significant departure from the QT business model, company spokesperson Mike Thornbrugh shared. Its features include two front doors, a larger QT Kitchens area, room for more liquor and a first for the chain--a hot and cold drink and ice cream area staffed by baristas.

"Typically, everything in our stores has been self-service, so this is definitely our newest wrinkle," Thornbrugh said. "This is going to require more staff, and it requires a store laid out in a way so the checkstands are completely different. It will require more work and effort to keep everything in place, to merchandise things properly and take care of the customer."

He added, "We know Kansas will change its adult beverage laws. If not this year, shortly. This new look gives us the opportunity to accommodate customer choices."

Currently, c-stores can only sell 3.2 beer and wine coolers; a move to allow grocery and c-stores to sell liquor, wine and full-strength beer died during the last legislative session.

A QuikTrip Generation Three store.The extra room also will mean more daily fresh food, and Thornbrugh said QT's venture into the fast-food business will grow. "QT Kitchens offers us the opportunity to grow with a lot more variety, and this concept gives us the opportunity to do so. Our core customer wants something readily consumable, something they can walk in and grab and eat in the car, or take back to work and home. That side of our business is continuing to grow."

The company also plans to grow its "Grab-and-Go" food line, including pizzas, lasagna and pastas, the report said.

The new prototype and store layout represents a change in traditional in-store traffic patterns, Thornbrugh said. It is designed to route customers directly to what they want.

The prototype is "quite a step for them, Wichita State University marketing professor Cindy Claycomb told the paper. "Particularly the baristas. Their business model has always been built on employees who are fairly interchangeable, so it'll be interesting to see if the baristas specialize or if the store will have more cross-training. That would seem logical to me."

But she added, "They really test what they're thinking in Tulsa, and if they go forward, they're confident in it. There's a market for the food expansion, if you can compete with the likes of … McDonald's This certainly seems to ramp them up to be even more of a one-stop shop than McDonald's."

In a separate report, Steve Wilson, with QuikTrip of Wichita, told KSN-TV, "We are very, very excited about this concept. We've listened to consumers and this is what they want."

He added, "What we're really looking to do is increase our fresh food sales."

The store has tables and chairs out front for customers to enjoy some of those new additions to QuikTrip. "Our research shows that a lot of people on the go will actually eat in their cars in the parking lot. We want to offer a better choice," said Wilson.

Source: CSP Daily News

Kum & Go Casts a New Mold

Latest store design underscores traffic flow, foodservice, more

While often hailed for the environmental friendliness of its convenience store design, Kum & Go's current store design also brings a number of other enviable aspects to the forefront, from traffic flow and sightlines to restroom convenience and an enhanced foodservice offer.

About 45% larger than the former footprint with a huge foodservice expansion, the newest stores are part of Kum & Go's grand plan to capture customer loyalty and create a model that cannot be replicated.

The development of Kum & Go's latest format began with the employees. The company polled store associates, general managers and category managers about what features they would like to see in the store design. Based on that feedback, the company built a mock-up in a Des Moines warehouse, complete with cooler doors, equipment and plywood counters. Next, store associates, supervisors and executive personnel toured the mockup.

"It was a great learning for us to be able to see how everything flows," Niki DePhillips, vice president of real estate, told CSP Daily News. "What is the spacing between the cash wrap and the shelving, and how big does the coffee island really need to be? You can measure the equipment, but to really get the feel from a customers' and associates' standpoint, it really helps to build it."

Based on additional feedback, DePhillips' team tweaked the design and had everyone return for a final say.

The end product is a store just under 5,000 square feet--compared to the former Kum & Go average of 3,400--complete with an in-house kitchen. This is serving up offerings from Kum & Go's new Go Fresh Market foodservice program: freshly made pizza, cold and hot sandwiches, subs, wraps and baked goods. The Go Fresh Market program will be included with all new and remodeled Kum & Go sites that have full-service kitchens.

The site also features a larger and separated coffee and fountain area for better traffic flow, more cooler doors and a checkout moved from the side to the center of the store. "The associate can see everything that's going on," said DePhillips. Perhaps most important, "The first thing you see when you walk in the store is the store associate, that friendly face, so we're able to greet them right away."

Then there is the "big C" portion of the design: building the customer's needs into the format. Kum & Go added open-air coolers for milk to make grab-and-go easy. It made room for more cups and lids at the coffee bar and fountain so they ran out less often, and so associates could refill them more easily. In addition, thanks to customer input, the restrooms are entirely touch-free. Entry doors have been replaced by long, twisting hallways and sensor-driven sinks, toilets and hand dryers are standard.

Source: CSP Daily News

Casey’s: Delivering a Winning Pizza Program

In an effort to grow its foodservice business, Casey’s is expanding its menu to include pizza delivery.

Casey’s General Stores has sold pizza for more than a quarter century making it one of the earliest convenience store chains to do so. Now, in an effort to expand its customer base, the Iowa retailer becomes one of the first chains in the industry to introduce pizza delivery.

Adopted from one of Casey’s franchisees in 1985, the sale of slices and whole pies of made-from-scratch pizza is synonymous with the public company that operates 1,677 stores across the Midwest.

“It is our flagship product and has been for quite some time,” said Brian Johnson, Casey’s vice president of finance.

The food portion of Casey’s prepared food and fountain category (prepared food, bakery, coffee and fountain) accounts for 68% of the category’s dollar sales. That prepared food includes bakery items (doughnuts, Danishes, etc.), subs, wraps, breakfast sandwiches, hot dogs, burgers and pizza. Johnson said pizza dollar sales account for the majority of the category.

Only about 100 stores do not sell pizza. Slices are $1.99 while a large cheese with a single topping is $11.99. Large specialty pizzas, like taco, bacon cheeseburger and buffalo chicken, are $15.99.

Competing on Cost
One challenge Casey’s has been dealing with lately is the rise in commodity costs, but foodservice sales continue to be strong, Johnson said. Casey’s raised the price on slices in 2010, but the last whole pie hike was three years ago.

“You’ve seen a lot of $10 pizzas hit the market,” said Casey’s Vice President of Foodservice Darryl Bacon. “We elected not to go that way. We’re not fighting the $10 offering.”

But the as the price of cheese went up, margins were adversely impacted. “Our sales, however, have been so good that gross profit dollars are up 15% through the first six months of the fiscal year,” Bacon said.

The delivery trial began in one store in 2010 and grew to 26 by late 2011. More stores will deliver in 2012. The purpose of the program is to grow pizza sales incrementally, by picking up customers the chain may not currently have.

“We’re trying to place (delivery) in different areas, like college towns, metro areas, we’re even trying some towns that don’t sell very many pizzas, just to see if we can get their pizza business up,” said Bacon. “The results are encouraging, but also very preliminary.”

As it seeks out new markets, Casey’s is closely examining everything from need, projected growth and income levels. “We’re trying to identify demographics that have the best chance for success,” Bacon said. “We do not believe this will be a service for all locations. So now the next task at hand is determining at which locations will it work?”

Growing Strong
According to Johnson, the chain had not tried delivery before because of a conservative philosophy. The tweak coincides with some breathing room—Casey’s second quarter net income increased 73% in 2011, thanks in part to the addition of 128 stores since the second quarter of 2010. The chain will complete 30 new store construction projects by the end of fiscal year 2012 and is optimistic about acquisitions.

“What has gotten us to where we are has been a very disciplined approach to running an efficient business model,” said Johnson. “Up to 10 years ago we weren’t even doing third-party acquisitions. That continuity, keeping everything the same store to store was a great way to grow the business. (There’s) more variance now, with acquisitions. Delivery is along those lines—an additional service we want to explore a little bit.”

Additionally, Casey’s has put new technology in place to evaluate those services as a way to make its existing store base better.

“Our business model used to be to keep every store the same as much as possible. That continuity makes us efficient,” said Johnson. “We now believe we can stay efficient and still be able to customize a little more on a store by store basis. If there is a new customer out there that we weren’t accessing because we didn’t have this service, that’s who we’re targeting.”

One of the concerns as delivery progresses is whether it will harm the store’s chance to cross merchandise items inside the store. The limited delivery menu includes made-to-order subs, breadsticks, wraps and two-liter bottles of soda. Also, the chain will be careful not to cross into the area of neighboring Casey’s. Bacon said the range of delivery is a 10-minutes drive or less.

Dealing with Liability
The hiring of drivers has been the key change in operations, Bacon said. Drivers use their own cars, and since car and driver are mobile representatives of the Casey’s brand, both have to pass Casey’s muster. The drivers endure a background check and are well rewarded if hired. Bacon said they get a wage, their tips and the delivery fee the chain charges. The car gets equipped with a roof sign bearing the Casey’s logo and the local store phone number.

“The reason why we decided to give them the delivery fee is because we wanted the good drivers and we wanted to keep them there,” Bacon said.

When a store begins delivery, extra drivers are hired to be sure the new concept isn’t marred by poor service.

“We’re still trying to figure out how many drivers to hire,” Bacon said. “We’re paying attention to what the hourly wages are in each store and how much pizza we’re selling. Store by store we’re adjusting. Each store knows exactly what their profit is on each delivery.” He added, “As we look at this program, we’re excited about the lift in sales, but since there are some additional expenses layered in we want to be certain that at the end of the day we’re driving cash flow in a positive manner so we can add shareholder value. That’s going to determine how far we roll it out. It’s no different than evaluating a new store design or an acquisition opportunity.”

Source: Convenience Store Decisions