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Ranging in services from advertising to convenience store solutions to confections and more, the Pennsylvania Food Merchants Association welcomed nine associate members this spring.
Arcadia Publishing offers a selection of hyper local books specific to store zip codes. These books are sold in grocery stores in different states, highlighting local and regional history and culture from coast to coast. Bradley Industries is a woman-owned business that manufactures supermarket and c-store fixtures as well as supplying foam products. All of their products are proudly manufactured in the USA. Bradley Industries is centrally located in the Midwest, which allows more competitive shipping and delivery options. Healthy Brand Oil offers custom-tailored edible oil solutions that include Non-GMO Project Verified, expeller pressed, long fry solutions and blended oils that are always OU Kosher certified and zero grams trans fat per serving. Pennsylvania Dairymen’s Association is a statewide organization with a focus on supporting Pennsylvania dairy farms. The association serves their now famous milkshakes each year to PA Farm Show visitors—the proceeds of which benefit agricultural scholarships, youth programs and educational programs across the state. The association recently was featured on PFMA’s Shelf Confidence podcast. Perfetti Van Melle is one of the world’s largest manufacturers and distributors of confectionery and chewing gum. Its global brands are enjoyed in more than 150 countries worldwide, where their innovation creates unique tastes to match local preferences. Portogallo Peppers LLC is a wholesaler of Spicy Giardiniera, Sweet and Spicy Peppers and Olive Muffuletta to retail stores and food service companies. Stewart’s Enterprises Inc., started in 1924, is a supplier of hard seltzer and hard sodas for Iconic Stewart’s and Hard Rock Brands. TRANSWORLD Business Advisors is the world leader in the marketing and sales of businesses, mergers and acquisitions and franchises. Whether you represent an acquisition-minded corporation or are personally interested in owning your own company or new franchise, TRANSWORLD offers the professional services that successfully bring buyers and sellers together. Watchfire Signs designs, engineers and manufactures the best looking, most durable LED signs, gas price signs and digital billboards to help businesses and organizations increase visibility and drive growth. Headquartered in Danville, Ill., Watchfire has manufactured outdoor electric signs since 1932 and LED signs since 1996, using meticulously sourced components from a global market. The company has over 65,000 Watchfire signs in operation.  What are your top three legislative priorities in 2022? My top three legislative priorities include health equity and increasing access to care, including improving maternal health outcomes, education and workforce development and affordable housing.
What is your biggest motivator as a legislator? My constituents are my biggest motivator. Sitting on the opposite side of City Avenue from Lower Merion while serving a diverse district, where on one end of the district houses are selling for over $1million and on the other end of the district residents are losing their homes and facing extreme poverty, I am aware of the possibilities that could exist for the most underserved communities. And I am committed to using my seat at the table to make improvements for all Pennsylvanians, no matter their zip code. Where do you shop locally for food? Unfortunately, I am forced to shop at grocery stores and farmers’ markets either outside of my district or on the border. While I try to keep business in my district and within the city limits, I often find myself in one of our neighboring counties because of the simple fact that communities in my district are real-life food deserts. What is your favorite vacation destination? I like any place with a vibrant culture, warm weather and a slow-paced environment. What are the biggest challenges for grocers in your district? I’d say the biggest challenges for grocers in my district are county competition and non-union operations. With residents being in such proximity to Delaware and Montgomery counties, they often wander to those areas to do their grocery shopping while running other errands and daily tasks. I must add that the Philadelphia Beverage Tax did not help. We often hear that Philadelphia residents cross county lines to purchase sugared beverage items in bulk. What are your biggest challenges and successes as a legislator? The biggest challenge as a legislator is knowing the length of time it takes to get a good idea to the governor’s desk. You see issues in your community that need to be resolved, but you know that even if you can get a law passed that would help solve it, it can be months or years before that vision becomes a reality. I’d say my biggest success as a legislator is building relationships with advocates for issues that need to be addressed. I’ve done well at being intentional about having people most impacted by issues at the table with me as I craft and advocate for laws in Pennsylvania. What is your favorite food or meal to cook? I love to cook salmon. It’s so easy to flavor up in different ways and pop right in the oven with my busy schedule. What do you like to do for fun? I’m chill. I like to hang out with my family. A day trip to visit my sisters or a night out on the patio make for a good time for me. How PFMA members are addressing supply chain & inflation |
The impact has been felt across out-of-stocks, shipment delays, logistical delays, loss of revenue, loss of income, empty shelves, and trying to keep higher levels of inventory with the anticipation that the next delivery might not come. |  |
Food companies and distributors are experiencing a wide range of issues that affect their ability to provide products. Chuck Tullis, senior vice president at Utz Brands, Inc., said it’s hard to pinpoint the most significant supply chain impact. Utz has experienced the effects in people, freight cost, resin for film, input cost and edible oils.
For National Convenience Distributors, the fourth-largest c-store distributor in the U.S., the pressure hits multiple areas as well. “The impact has been felt across out-of-stocks, shipment delays, logistical delays, loss of revenue, loss of income, empty shelves, and trying to keep higher levels of inventory with the anticipation that the next delivery might not come,” said Dennis Williams, executive vice president of procurement for NCD.
In its recent “2022 U.S. Grocery Shopper Trends” series, FMI—The Food Industry Association, in partnership with The Hartman Group, said that shoppers are less anxious about contracting an illness while shopping, but their concern grows over product availability and pricing. The FMI report shares that nearly half of survey respondents (45%) see out-of-stock items as an issue.
Joe Tripi, senior vice president of Tripifoods, said they are experiencing a loss of sales on customer invoices ranging from about 3 to 5 percent, based on manufacturer’s out-of-stocks and production issues. “This has caused us, and our customers, to reevaluate products that we currently carry that are having supply issues,” he said. “We have brought in similar products from other manufacturers to offer our customers an acceptable replacement. Overall, our sales volumes are up considerably, even with these unprecedented out-of-stock situations from the manufacturer.”
These issues have created the perfect storm for near-historic inflation. The U.S. Labor Department reported in April that from March 2021 to March 2022, the consumer price index jumped 8.5 percent. That is the sharpest increase in 40 years.
A Bloomberg article published in late March suggests Americans should budget $5,200 more this year because of inflation. Prices for food and energy account for more than 40 percent of that increase.
“Inflation has hit every input in the snack category,” Tullis said. “The total impact is staggering.”
Utz is working hard to cut back where they can, Tullis said, including price adjustments, product weight adjustments, limited promotions and alternative materials. Tripi is rotating in new products with more consistent availability. NCD is focused on a more efficient ordering process and better lead times with manufacturers.
“The impact on retailers has been exactly the same,” Williams said, “difficulty ordering products, empty shelves, loss of sales, loss of revenue and loss of income.”
As these problems trickle down, customer frustration ticks up, said Andrea Karns, vice president of sales and marketing for Karns Foods. Karns said the frustration among shoppers is noticeable. The grocery retailer is working closely with its suppliers on product availability, promotions and pricing to help alleviate the sting at checkout.
“While many individuals have become accustomed to product issues, their patience is starting to run thin,” she said. “Regarding price increases, shoppers feel it and see it. They are shopping more intentionally than ever.”
Mirroring 2020, shoppers nationwide are noting a shortage of meats and eggs. Karns is launching a creative new program in May to beef up stock in its meat department. Last year, the central Pennsylvania grocer announced a new partnership with local beef farmers to help control supply and keep local farmers in business.
“The biggest shift for Karns is that we recently changed our fresh case beef. We now own our own herd, which will better secure our supply chain,” Karns said.
Sheetz has kept shelves stocked by considering new and different products. Coffin said relationships also are key, helping them to negotiate with suppliers when in a pinch. “Our operations team does a fantastic job and has really been able to pivot.”
Maureen Gillespie, a spokesperson for ShopRite, recognized that supply is a problem for all retailers right now, but their stores have remained staffed and stocked.
“While there may be limited availability of some items, we are confident that our customers will find everything they need, thanks in large part to our dedicated associates and strong relationships with vendor partners, local growers and suppliers,” she said.
Customers seem to understand the daunting challenges faced by grocers. For ShopRite stores, owners are part of the community and understand what shoppers need, Gillespie said.
“We are a low-price leader in the market, and our weekly sales and promotions throughout the store have always been designed to help customers save,” she said. “We also have a new program called Locked-In Price, which guarantees prices and locked-in savings on hundreds of popular items throughout the store for a limited time, generally four to six weeks at a time.”
As the world of food and beverage retail has learned to expect the unexpected, Williams said one of the most important things is maintaining strong communication. With manufacturers, communication enables NCD to develop better contingency plans. With customers, it helps them to work through challenges.
“Communication with manufacturers and customers are helping us and our customers to stay prepared,” he said. “Our customers need to be aware that these issues are a continuing challenge. Unfortunately, we have no control over inflationary factors that are affecting all of our businesses today, but we refuse to accept this new norm and are continuing to find different ways of easing supply chain, product availability and pricing challenges.”
For National Convenience Distributors, the fourth-largest c-store distributor in the U.S., the pressure hits multiple areas as well. “The impact has been felt across out-of-stocks, shipment delays, logistical delays, loss of revenue, loss of income, empty shelves, and trying to keep higher levels of inventory with the anticipation that the next delivery might not come,” said Dennis Williams, executive vice president of procurement for NCD.
In its recent “2022 U.S. Grocery Shopper Trends” series, FMI—The Food Industry Association, in partnership with The Hartman Group, said that shoppers are less anxious about contracting an illness while shopping, but their concern grows over product availability and pricing. The FMI report shares that nearly half of survey respondents (45%) see out-of-stock items as an issue.
Joe Tripi, senior vice president of Tripifoods, said they are experiencing a loss of sales on customer invoices ranging from about 3 to 5 percent, based on manufacturer’s out-of-stocks and production issues. “This has caused us, and our customers, to reevaluate products that we currently carry that are having supply issues,” he said. “We have brought in similar products from other manufacturers to offer our customers an acceptable replacement. Overall, our sales volumes are up considerably, even with these unprecedented out-of-stock situations from the manufacturer.”
These issues have created the perfect storm for near-historic inflation. The U.S. Labor Department reported in April that from March 2021 to March 2022, the consumer price index jumped 8.5 percent. That is the sharpest increase in 40 years.
A Bloomberg article published in late March suggests Americans should budget $5,200 more this year because of inflation. Prices for food and energy account for more than 40 percent of that increase.
“Inflation has hit every input in the snack category,” Tullis said. “The total impact is staggering.”
Utz is working hard to cut back where they can, Tullis said, including price adjustments, product weight adjustments, limited promotions and alternative materials. Tripi is rotating in new products with more consistent availability. NCD is focused on a more efficient ordering process and better lead times with manufacturers.
“The impact on retailers has been exactly the same,” Williams said, “difficulty ordering products, empty shelves, loss of sales, loss of revenue and loss of income.”
As these problems trickle down, customer frustration ticks up, said Andrea Karns, vice president of sales and marketing for Karns Foods. Karns said the frustration among shoppers is noticeable. The grocery retailer is working closely with its suppliers on product availability, promotions and pricing to help alleviate the sting at checkout.
“While many individuals have become accustomed to product issues, their patience is starting to run thin,” she said. “Regarding price increases, shoppers feel it and see it. They are shopping more intentionally than ever.”
Mirroring 2020, shoppers nationwide are noting a shortage of meats and eggs. Karns is launching a creative new program in May to beef up stock in its meat department. Last year, the central Pennsylvania grocer announced a new partnership with local beef farmers to help control supply and keep local farmers in business.
“The biggest shift for Karns is that we recently changed our fresh case beef. We now own our own herd, which will better secure our supply chain,” Karns said.
Sheetz has kept shelves stocked by considering new and different products. Coffin said relationships also are key, helping them to negotiate with suppliers when in a pinch. “Our operations team does a fantastic job and has really been able to pivot.”
Maureen Gillespie, a spokesperson for ShopRite, recognized that supply is a problem for all retailers right now, but their stores have remained staffed and stocked.
“While there may be limited availability of some items, we are confident that our customers will find everything they need, thanks in large part to our dedicated associates and strong relationships with vendor partners, local growers and suppliers,” she said.
Customers seem to understand the daunting challenges faced by grocers. For ShopRite stores, owners are part of the community and understand what shoppers need, Gillespie said.
“We are a low-price leader in the market, and our weekly sales and promotions throughout the store have always been designed to help customers save,” she said. “We also have a new program called Locked-In Price, which guarantees prices and locked-in savings on hundreds of popular items throughout the store for a limited time, generally four to six weeks at a time.”
As the world of food and beverage retail has learned to expect the unexpected, Williams said one of the most important things is maintaining strong communication. With manufacturers, communication enables NCD to develop better contingency plans. With customers, it helps them to work through challenges.
“Communication with manufacturers and customers are helping us and our customers to stay prepared,” he said. “Our customers need to be aware that these issues are a continuing challenge. Unfortunately, we have no control over inflationary factors that are affecting all of our businesses today, but we refuse to accept this new norm and are continuing to find different ways of easing supply chain, product availability and pricing challenges.”