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Taking a healthy approach to a volatile oil market

6/30/2022

 
It’s hard to miss the headlines—edible oil production and pricing is headed down a slippery slope. Droughts, low production, the Russian/Ukrainian war, rising prices, increased demand for biofuel usage and other complications are making a major impact on edible oils.
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Jason Thomas (right), CEO of Healthy Brand Oil Corporation, recognizes the numerous challenges today. Fortunately, the new PFMA member is educating customers and helping to mitigate rising costs.

Thomas looks at what has affected the industry during two distinct timelines.

“I look at it as the 2014 to 2020 period, where crops around the world had good production, demand was pretty stable, pricing was very stable, availability was very stable,” he said. “Then I look at it from 2020 forward—the world just got thrown completely on its head in every way, shape and form.”

Thomas has been in the business since 2004. About 75 percent of their products go through food service distribution, for example restaurants or a retail setting. Approximately 25 percent of the business serves food manufacturers. 

Healthy Brand Oils offer a wide variety of oils and quantities, ranging from soy, canola, sunflower, peanut, olive, avocado oils and more, plus non-GMO, organic and expeller pressed options. Oils are packaged in four sizes, ranging from one-gallon containers to 2,500-pound quantities that serve large manufacturers. 

If the variety and options seem overwhelming, the website offers an Oils 101 guide. Plus, the Healthy Brand Oils team is available to walk customers through which oil makes the most sense for each use.

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We can’t solve all the problems, but we think we can help. (The customer) might not have the internal know-how or the resources to deal with this. This is a piece of the puzzle that differentiates our offering.
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“There are some differences that make each product good for certain uses, maybe not for others. We talk about what you’re trying to accomplish and use the product for,” he said. “Maybe a certain oil brings a certain flavor profile, or maybe if you’re using it in a fryer—some oils will last two and three times the fry time of something that looks exactly the same.”

As different global factors impact different oils, it’s important to know where oils originate, Thomas said. For example, the U.S. provides mostly soy; Canada provides canola; olive oils originate in the Mediterranean; and grape, avocado and peanut oils largely come from Europe. 

“Last year, we saw a 30 percent crop failure in the Canadian canola crop. In 2021, there was a 30 percent crop failure in the Brazilian corn crop, and this year, there is a 20 percent crop failure in the Brazilian soybean crop,” Thomas said. “These are major needle movers from the world’s largest producers.”

When crops are low or products are inaccessible, such as sunflower oil in Ukraine, customers might need to switch to another product. Despite the fact that sunflower oil is not one of the most frequently consumed oils in the U.S., countries that do rely on exports from Ukraine are now paying a premium for oils that are typically used in the states. 

Another major factor impacting availability is a greater national need for biodegradable biodiesel fuel. Food-grade soybean oil is a more environmentally friendly fuel option, Thomas said, and “what a sizeable producer like ourselves can consume in a year, (biodiesel producers) are consuming it in a month.”

So now what? “We’re entering this time period that is more volatile and harder to navigate,” Thomas said. He separates the situation into two major risks: price and supply.

When there is a period where prices might double or triple, that impacts the manufacturer’s margins in a major way, he said, particularly regarding food where profit margins are already low. Health Brand Oils developed what they call “profit lock” to help customers manage fluctuating costs.

Lee Colonna (right), sales development and relationships management at Healthy Brand Oils, explains that the profit lock initiative connects them with the customer to assess their needs and goals. “We’re partnering with them to find out what works for them in the best way possible with the products we choose, while managing the expectations of what they need now and in the future.”

“If today’s pricing can ensure a profitable trade for the customer, then it’s a logical time to extend coverage and ensure that. If you don’t do that, the market can take it away,” Thomas added.

Supply risk presents a more challenging solution. Supply involves product issues, logistical issues and the impact of a global supply chain, he said. The company only commits to products for which they have a high level of confidence and know they can deliver.

“We can’t solve all the problems, but we think we can help,” Thomas said. “(The customer) might not have the internal know-how or the resources to deal with this. This is a piece of the puzzle that differentiates our offering.”

Colonna also stressed the importance of association membership. “It’s a resource. You can’t be an expert in all things. Having a resource like (PFMA) and bringing the information to your members is huge.”

Thomas anticipates the summer months to remain volatile. That volatility has a way of creeping into every aspect of a business, he said. With corn, wheat and soybean in nearly everything, he stresses the importance of understanding the current environment.
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“We’re happy to do our best to help navigate what’s best for our customers,” Thomas said. “It’s something we’re looking at every day and trying to assess. It’s a complicated puzzle.”

Navigating the supply chain storm

5/3/2022

 

How PFMA members are addressing supply chain & inflation
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The state of retail in 2022 might be described best in one word: pivot.

With just the first quarter in the books, retailers face lingering effects of COVID, complications of labor shortages, rising fuel prices and fresh challenges caused by the war in Eastern Europe. Supply is low, costs are high and frustration is mounting.

That’s why the ability to pivot is a must. Two years into a deluge of unanticipated changes in the food and beverage retail industries, members of the Pennsylvania Food Merchants Association are making it work with agility and creativity.

Supply chain issues change daily, said Dan Coffin, vice president of category marketing and strategies at Sheetz, Inc. “It impacts everything from how we build stores to how we serve customers.”

Some major brands have cut back on the variety of products, offering fewer innovations. In that case, it’s time to focus on core products, Coffin said. Large suppliers might have the products in stock, but no employees to distribute them. In one instance, Coffin said they arranged to pick up their own delivery. 

“It’s affecting every category,” he said.
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.
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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. 
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“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.”

Making change one coin at a time

2/25/2022

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While working as a cashier at a convenience store, Krutik Patel noticed an odd trend. Each day, a young customer came in to buy a drink. Each day, he paid in cash and left his change.

After a few days, Patel spoke up, pointing out that the customer easily could have covered the purchase of additional drinks with his loose change. The customer’s response? “I don’t want it. It’s annoying.”

Patel was surprised, as change certainly adds up over time. Sharing this experience with his childhood friend, Kashish Shah, the two decided to do some research. Patel’s regular customer was not the only one leaving his change, especially in the world of convenience stores.

The pair discovered that the average American has about $60 in change sitting around their house, according to Coinstar Research. They also found that more than 60% of customers still pay with cash at convenience stores.

“We wanted to do something big,” Patel said. “We looked at the problem, did some research, looked at the market and saw what was out there.”

Patel is an undergraduate student at Penn State University majoring in computer science. Shah graduated in management with a focus on finance. With their combined experience, they came up with a solution for both customers and businesses.
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“The problem is changing these coins to dollar bills, and we wanted to solve that,” Shah said.

From there, Koin Keepr was born—a software startup that aims to provide software solutions for retail businesses. Patel works as co-founder and CEO, while Shah is co-founder and COO. To get the ball—or change—rolling, they partnered with Penn State, Ben Franklin Technology Partners of Central and Northern PA and the Small Business Development Center.

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Koin Keepr co-founder Krutik Patel
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Koin Keepr co-founder Kashish Shah
$62 million in coins are thrown away by Americans every year.
Patel and Shah determined that consumers often lost their change or found it difficult to use. It fell under car seats, jingled in pockets or got tossed in a jar in the closet. Plus, with the growth of touchless payment, the perceived value of change is increasingly ignored.

On the other side, a national coin shortage makes cash transactions difficult for retailers, they said. Patel and Shah found that many retailers are using incentives to get customers to bring in their change jars. Running out of change can lead to poor customer experiences and additional bank runs during the day.

Similar to a store loyalty card, the Koin Keepr concept uses a bar code tag that can be access on a card or through a smartphone. Customers receive their change digitally through this method and, as the change adds up, can use it for future purchases at the store.

“It helps customers save change and makes it easier for them,” Shah said.

Right now, each store would register its own Koin Keepr account. For example, if Patel purchased a drink at C-store A, his change could be accessed to make a purchase at C-store A in the future. The change he accumulated at C-store B would be accessible for a future purchase under C-store B. As a customer, Patel would have one Koin Keepr account showing the change he accumulated at different stores that use Koin Keepr. 

At this stage, Patel and Shah are ready to get Koin Keepr in front of retailers. “We want to talk to businesses,” Patel said. “We’ll provide everything they need and train them to use the service. It’s actually easy and saves time over the current system.”

During the proof-of-concept stage, the service to retailers is free of cost and includes all training to all employees involved. The money never leaves the retailer’s control, Patel said.

Right now, it’s all about making sure things are working as they should and getting business owners to play with the software, Patel said. After that, Patel and Shah will integrate into their existing point-of-sales systems and onboard more stores to provide new innovative services and improve experiences.

Patel and Shah are eager to share their solution and gain feedback from businesses. “We’re open to talking with anyone. We value their time,” Patel said.

“This is a new concept and new business service. It takes time to accept it in the market, but once it gets in the market, it’s a convenience in the market for the people and for the businesses.”

For more information or to schedule a meeting, call (814) 419-4515 or email hello@koinkeepr.com.
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High’s stores introduces its cool treats, good eats to PA

12/22/2021

 
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First launched as an ice cream store chain, High’s evolved into a Maryland-based convenience store. Customers can still order homemade hand-dipped ice cream today.
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Brad Chivington, senior vice president of Carroll Independence and High’s, with the mascot.
Describing the last quarter of the year at High’s as busy is an understatement. Meghan Mattern, advertising and social media manager for Carroll Motor Fuels and High’s, has a packed schedule and is constantly on the road. 

But it’s a “busy” that she loves because—as neighborhood stores—her days are filled with events that invest in the communities they serve. High’s holds numerous fundraisers, Christmas tree lightings, breakfasts with Santa and an annual Manager Summit among other events that give back to its neighborhoods and employees.

“We try really hard to create a positive culture,” Mattern said. “We put our best foot forward. Even at the corporate level, we really try to be an example.”

High’s, a new PFMA member since October, is a Maryland-based convenience store chain known for its high-quality food service. Although most of its 54 stores operate in the Baltimore, Md., area, they also have locations in Mount Joy, Columbia, Lititz and Emigsville, Pa.

With a history that dates back nearly 100 years, High’s first started as a Mid-Atlantic ice cream store chain that eventually evolved into convenience stores. The hand-dipped ice cream and shakes are still available in stores today, featuring popular flavors like Heritage Strawberry, Mad Cow Fudge and Butter Pecan. High’s made-from-scratch ice cream is definitely a draw for customers, Mattern said.

“It’s almost nostalgic. It’s easy to build off nostalgia. Local customers look forward to the ice cream and eggnog,” she said. 
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We have to work as a team if we want to succeed.
In fact, it’s not unusual for customers to drive a few hours with a cooler to pick up their favorite sweet treat around the holidays. Previously, High’s operated stores in the Virginia and Washington, D.C., areas, and several past customers still make the trek up.

In addition to its ice cream, High’s offers a variety of popular foods at most locations—such as hand-breaded fried chicken, craft pizzas, premium coffees, breakfast sandwiches and more—with expanded menus soon coming to all stores.Convenience stores continue raising the food service bar, and High’s is all in—they recently debuted a premium jumbo lump crab cake sandwich and a pit beef sandwich at select locations.

“It’s always interesting to see what c-stores will come up with and are willing to try,” Mattern said.  

Beyond quality food service, High’s stands out because of its people, Mattern said. The High’s team provides friendly service with a smile. “We have a great talent acquisition team that spends a lot of time training our managers. They work very hard to empower them.”

The family feel and team environment is authentic, she said, and it was a huge benefit during the height of the COVID-19 pandemic. When reflecting on the challenges of the past 18 months, one of Mattern’s coworkers said, “There will always be challenges. It’s nothing we can’t overcome as a team.”

“We would not have gotten through it without each other,” she added. “COVID opened our eyes to that. We really have to work as a team if we want to succeed.”

Although COVID presented plenty of problems, it also provided new opportunities. Gas stations and convenience stores sometimes find it hard to shake the stigma over cleanliness issues, Mattern said. So High’s Stores took an extra step to earn a new Safe Shop Assured™ Certification—a direct results of the pandemic.

C-stores can earn the certification after completing a 10-point checklist of essential safety measures. High’s Operations team worked diligently to earn the certification, Mattern said. A diverse board of retailers, suppliers and industry experts ensure that the stores are well maintained, clean and ready for customers. “We take pride in our store conditions. It’s definitely something we try hard to let our customers know.”

What gets Mattern most excited is the work they accomplish for the community. One of her favorite projects is the Keep the Change Program. The round-up campaign benefits Central Pennsylvania and Maryland foodbanks. In the month of November, the program raised $13,000.

“We’re thrilled with that. We’re proud of our managers for making that happen.”

For more than 30 years, Carroll Fuel and now High’s raised funds for Johns Hopkins Children’s Center through an annual golf outing. This past year, the outing raised $30,000, which was then matched by the company.

Mattern said High’s also contributes to the Red Cross for disaster relief, created care packages to distribute to area hospitals, supported local schools and held a friendly ice cream sundae building contest between local firefighters and police officers. This time of year, store managers look forward to hosting a variety of holiday festivities in their communities.

Whether working through challenges, trying new things or collaborating with the community, Mattern said it happens because the company invests in its team and surrounding neighborhoods. It’s an environment that the customers can feel, too, and one they are happy to bring to Pennsylvania.
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“Family here is huge. Family is important, and our atmosphere reflects that,” Mattern said.

Turning a homemade classic into A 100-year success story

11/9/2021

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In 1947, Hanover Home Brand Potato Chips became the Utz Potato Chip Company. The company purchased a five-acre parcel of land on Carlisle Street in Hanover, Pa., and construction of the first modern-day Utz factory began.
The year Babe Ruth made headlines for breaking his third home run record, Bill and Salie Utz were preparing to knock it out of the park in the snack world.

One hundred years ago in a small-town kitchen in Hanover, Pa., Bill and Salie Utz made some simple changes to a household favorite that created a modern snacking empire. They believed potato chips should be made from clean, simple ingredients and that they should be minimally processed to bring out the natural flavor of farm-fresh potatoes.
 
With a $300 initial investment, they laid the groundwork for today’s Utz Brands, Inc. What started as 50 pounds of potato chips per hour in their home has grown into a publicly traded, nationally loved company with numerous snack food brands under its umbrella.

And among other partnerships, they happen to be the “Official Salty Snack” of Major League Baseball. Bill and Salie Utz definitely hit a home run. 

“We’ve had a very successful 100 years, and the last 10 years in particular have been very transformative for the company,” said Shane Chambers, EVP Chief Growth Officer at Utz Brands, Inc. “In those 10 years, we’ve grown to a $1.1 billion-plus annual sales business with 15 manufacturing facilities, 3,300 associates and an enviable portfolio of household favorite snack food brands.”
The Utz potato chips that started it all remains one of the company’s most successful products. But as markets and preferences changed over the years, so did Utz’s portfolio. Utz has evolved with the needs and wants of consumers to offer a range of salty snacks including potato chips, tortilla chips, pretzels, pork rinds, cheese snacks, popcorn, mixes, salsas and dips and plenty more. With its strong foundation of fan-favorites such as Utz® Original and Ripple Potato Chips, Utz® Cheese Balls, and Zapp’s® New Orleans Kettle Style “Voodoo” Potato Chips, Utz has continually grown sales and added brands such as Good Health®, Boulder Canyon® and recently ON THE BORDER® Chips and Dips.

“Utz works hard to balance efforts in its core markets along with new and/or emerging ones. We operate from a plan for each and have a very dedicated and talented team to execute our plans,” Chambers said. Utz leverages its direct store delivery and direct to warehouse distribution capabilities as well as its online, e-commerce capabilities to reach and enter new markets. 

Bill Blubaugh, SVP of Marketing, Utz Brands, Inc., also credits their success with a strong portfolio of brands and an accomplished team. “From humble beginnings, we are distinctly proud of our long-standing, family-oriented culture, our people who’ve made so much possible and our portfolio of craft and better-for-you snack foods that excite and delight fans every day,” he said.

Even with its tremendous growth, Utz remains a multi-generational family business. There are third, fourth and fifth generation family members involved in the company today who maintain the strong foundation set by Bill and Salie Utz.
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On August 31, 2020, Utz became a member of the prestigious New York Stock Exchange, selling under the ticker symbol “UTZ”. Representing Utz Brands, Inc., in New York, from left, are Dylan Lissette, Stacie Lissette, Jane Rice and Mike Rice.
“We truly believe that we’ve built the foundation of a company that can continue to expand across the U.S. and delight customers from Miami to San Diego to Seattle!”
“The Rice and Lissette families, who are third and fourth generation family members and who also have fifth generation members now working at the company, do much to continue to lead and foster the longstanding culture that Bill and Salie Utz created and instilled in the foundation of the company,” Blubaugh said. “Their focus on hard work, making quality products, listening to the wants and needs of the customer and giving back to the community remain as pillars of the Utz culture today and for the future.”

It was that hard work and collaboration of many generations that led Utz to one of its biggest and most recent accomplishments: a listing on the New York Stock Exchange under the ticker symbol UTZ on August 31, 2020. 

Plenty has changed over the course of 100 years, but many aspects of the business remain the same. The company strives to treat its associates well, make high-quality snacks that appeal to generations of fans and listen to its customers and retail partners. Strong family and business values play out through Utz’ contributions and support to the communities it serves. 

For instance, in 2017, the Rice and Lissette families launched The Rice Family Foundation to support the education, health and well-being of families in the greater Hanover, Pa., area. “During 2020, the Rice and Lissette families went further by contributing $20 million in Utz stock to the Foundation, which will allow the Foundation to increase its annual giving by five times over prior years,” Blubaugh said. “In 2020, the foundation provided grants to 35 nonprofit organizations that are involved with mental and physical health issues, drug addition, domestic violence, food banks and more.”

Even during the tumultuous 18 months of the COVID-19 pandemic, Utz relied on its ability to stay lean and nimble to adapt to unforeseen challenges. The company’s ability to quickly change gears and leverage its online platform paid off, earning Utz “the fastest growing salty snack company in e-commerce” as measured by IRI during 20201. 

As the snack food giant looks to its next century, Chambers said they will continue drawing from what they’ve learned and accomplished. “We truly believe that we’ve built the foundation of a company that can continue to expand across the U.S. and delight customers from Miami to San Diego to Seattle!”

Blubaugh feels Bill and Salie would be proud of the leadership of Dylan Lissette, Utz’s CEO, and the current generation that is leading the company. “We believe that Bill and Salie would be incredibly proud of the Utz culture that has endured, true to what they initially sought to create, and that our associates have been central to the success of the company.”

1 Source: IRI; Measured % dollar sales; 52 weeks ending Dec. 27, 2020; E-Commerce Channel with businesses larger than $100,000.00 dollar sales.

Did you catch Utz on PFMA’s Shelf Confidence podcast? Hear more about the “new normal” of snacking!
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'Zero value in wasted food'

8/25/2021

 
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The concept is simple enough. Globally, up to 40 percent of usable food is wasted a day. And yet, one in seven people don’t have enough to eat. 

So, connect the food to the people.


Logistically, it’s a little trickier. That’s where the Pittsburgh- based nonprofits 412 Food Rescue and Food Rescue Hero swoop in.
“Good food belongs to people, not landfills,” said David Primm, head of partnerships and growth with 412 Food Rescue.

Started in Pittsburgh’s 412 area code about six years ago, this PFMA associate member works to get usable, perishable food items to its community. “We’re preventing perfectly good food from going to waste and redirecting that to people who are food insecure,” Primm said.


The best part—food retailers are in a perfect position to help. “Nearly half of the food that’s wasted is actually wasted at consumer-facing businesses. That’s your members, that’s grocery stores and other retail outlets, it’s restaurants and institutions,” said Jennifer England, senior director of partner success. “We make sure that food gets to people who need it by leveraging our technology to reach out to volunteers so they can take it to where it needs to go.”

412 Food Rescue and Food Rescue Hero make this process easy for their partners, in part, thanks to well-designed technology. Food rescue can be labor intensive without the right tools, England said. With such a highly distributed network, it’s inefficient to schedule truck pickups for small quantity donations at multiple locations. Fortunately, England said the organization’s cofounder has a background in tech startup and created the Food Rescue Hero app. This purpose-driven technology makes it easy to connect food retailers, volunteers and community members in need.  

A food recover program using 412 Food Rescue’s technology and operations has no downside. There’s no value to food in the garbage.
“We have over 12,000 volunteers in our network, and by using our technology, we can let them know, ‘Hey, there’s food available at this grocery store that needs to go to this low-income housing site, can you pick it up?’” she said. 
That technology allows them to increase their impact. 412 Food Rescue generally covers the 412 Pittsburgh and Allegheny County area code. By using the Food Rescue Hero app, they are able to extend their reach and work with 13 cities in the U.S. and Canada, three of which cover new service areas in Pennsylvania.

The organization also is very agile, working hard to keep the food rescue process simple. Instead of telling partners they have to bend to the schedule of 412 Food Rescue, England said they ask donors what works best for them. “We want to serve our partners whether it’s our food donors, our nonprofit partners or our volunteers. We want to meet our partners where they need us.”

As food insecurity intensified over the course of the pandemic, the nonprofit shifted and evolved its operations. Access to good food became more important than ever. Just as many consumers relied on grocery delivery, 412 Food Rescue and Food Rescue Hero began making home deliveries. This change provided a way to get quality food to the most vulnerable populations. 

In its sixth year of operation, Primm said they’ve reached a major milestone. “We just hit that 20-million-pound mark here in our region. That’s through the great effort and support of our food donors and a lot of the PFMA members.” 
One PFMA sponsor and member,  Giant Eagle, joined 412 Food Rescue as a food donor in 2019. They already have recovered 2 million pounds of food.

​Primm and England have heard many myths and misconceptions surrounding food donation. Some businesses think they have no food to donate. Others fear a lawsuit from potentially getting someone sick. And some donors have been burned before from volunteer no-shows. That is where 412 Food Rescue can provide their expertise on everything from food preparation to tracking donation pickups and dropoffs to laws that protect food donors. 

Primm said one of the most common misconceptions about food donation is that potential food donors don’t realize how much food they are able to donate. When 412 Food Rescue consults with food retailers, the retailers often are surprised to hear the results. 

Recently, when Primm approached a PFMA member about food donation, they explained they had nothing to provide. After speaking with the produce and baking managers, he helped the store identify items that could be donated. Within two weeks, that store donated 3,500 pounds of food, which equates to 3,000 meals. The retailer saved usable food from being wasted, provided nutritious food to those in need and gained financial benefits from the donation through tax incentives.

“There is zero value in wasted food,” Primm said, “but together, working with your members and other food donor partners, we’re able to create this value that impacts the entire community.”

​England encourages anyone who remains on the fence about food donation to try it firsthand as a volunteer by downloading the Food Rescue Hero app. “A food recovery program using 412 Food Rescue’s technology and operations has no downside,” England said. “There’s no value to food in the garbage. It’s a win-win-win to donate food."

A treasure between tourist attractions

7/16/2021

 
What’s the secret to making it in business more than a century? “Be nice, be fair, be productive,” said Mike Pronio, third-generation family owner of Pronio’s Market in downtown Hershey. “It’s simple.”
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Beneath towering coaster tracks and behind the latest strip of chain stores, just two block from Chocolate Avenue, is a neighborhood staple. The current store, built by Mike’s father, Vince, in 1962, sits at the corner of Caracus Avenue and Valley Road. This family-owned and operated market has served generations of Derry Township natives with one-of-a-kind-products and unmatched service.

Pronio’s customers are looking for something special. The store carries freshly cut and ground meats, locally made products, fresh produce and high-quality Italian items. Pronio’s is well known for its homemade meatballs, strombolis and famous sausage. They’ve even started a line of coffees named after their dogs.
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The market is for “people who are looking for a quality product, a fair price, and a clean store with family service,” Mike said.

Beyond what’s in the shopping cart, customers know that at Pronio’s, they will be treated like family. Shoppers and employees know each other. Bags always have been taken out to the car at no extra charge. James Pronio, Mike’s oldest son, grew up helping in the store and continues to do so as time allows. “Customers are looking for a personal experience,” he said. “They know the baggers, they know the Meat Department. In essence, you’re being served by family and friends, and your needs feel like they are met.”
An area legacy like Pronio’s comes with a unique history and plenty of stories. Originally from New York, Michele Pronio moved to Hershey when his brother—who snagged a job with Milton Hershey’s band—said the area had new job opportunities. The family first went into business not far from the current Hershey’s Chocolate World, and Mike recalls stories of his grandfather loading up a wooden crate with canned goods to sell door to door. 

In the mid-1920s, Pronio’s moved to the opposite corner from where it stands now, which today is a dress shop. Then, the business operated more like a general store with a variety of foods, home goods and more. When the eldest Pronio retired, Mike’s father eventually shifted to the location and store model that exists today. 
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Mike said his father ordered a train car of grapes each fall, which he’d truck around to local Italian families so they could make wine. That truck was one of few in town. When one of Pronio’s customers once went into labor, Mike said his dad loaned the work truck to the expectant father so he could drive to Harrisburg to be with his wife and child.
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A unique find, Mike Pronio of Pronio’s Market in Hershey, holds a promotional item from the market produced in the 1930s.
I like the idea of knowing who’s coming through these doors. We talk, we tease. People support this store and want to see it strive and survive."
Maintaining those relationships through the years has contributed greatly to Pronio’s success, and dedicated customers continue to show their support. As the store prepared to celebrate its 100th anniversary in 2019, one longtime customer in his 70s used his own time and money to create a 30-foot anniversary banner—which he promptly climbed up on the roof to install. “I don’t think his wife knew that,” Mike said.

“There is a kinship, a family-friendly mentality here. People know it comes back to that mentality,” James added. 
Pronio’s has about 35 employees who measure their time at the store not by years, Mike said, but by decades. They have served generations of families. When the world flipped upside down in 2020, their loyalty enabled the local market to meet demand and provide a safe shopping experience.

“Business was up 30 to 40%, and people were lined up at the door every morning,” Mike said. “A lot of people wanted to come into a smaller store because it felt safer. And we managed because our employees stuck with us.”

As the area continues to grow and larger businesses pop up along the main roads, Mike knows that in reality, Pronio’s shouldn’t exist. Decades ago, the town was known for farm fields, orchards and small businesses. Today, he is one of few small businesses remaining near the main road. But, James said, their size allows Pronio’s to remain small and agile. Their dedicated staff is productive and efficient. And they work hard to meet customer requests.

“We don’t stray from our values,” James said. “We’re not trying to be the trendiest. We offer solid products. It’s about slow, steady, consistent growth and making sure the customers’ and employees’ needs are met.”

Their success, in large part, comes back to these relationships. 
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“I like the idea of knowing who’s coming through these doors. We talk, we tease. People support this store and want to see it strive and survive,” Mike said.
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He cherishes the chance to continue his family’s legacy and hopes to do so for years to come. “The opportunity was there, and this was the chance of a lifetime,” Mike said of taking on the family business. “I’ve been given a gift, an opportunity no one gets.”
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Pronio’s Market is well known for it’s in-house cut and ground meats.
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A customer worked with Pronio’s to launch new coffee blends, which are named after the family dogs.

Country Fair remains mission driven

4/27/2021

 
It’s been said that you can’t know where you are going if you don’t know where you’ve been. After a tumultuous year in the convenience store industry, it can be challenging to picture what lies ahead. But Paul Rankin, vice president of Country Fair, Inc., said that’s where the company turns back to what it knows best. 
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“The company mission statement is Country Fair Cares,” Rankin said. “We really try to support our team members, our customers and the community. Those are really the focus.”

That focus has helped the company excel. In 2019, Country Fair was named one of Forbes top mid-size companies to work for. Country Fair operates 72 c-stores in Northwestern Pennsylvania, Western New York and Eastern Ohio, and is listed as 16th-largest employer in Erie, Pa. The company also is a huge contributor to the community through its fundraisers and food bank donations. The relationships established with team members, customers and its community have helped Country Fair manage a year like no other.

As the world shut down last March, daily commutes and routines changed. Like the rest of the c-store industry, Rankin said Country Fair experienced a reduction in foot traffic, fuel sales and foodservice. As major employers and schools in the area kept employees and students home, Country Fair took a hit, especially during its busy breakfast traffic.

“We had a significant decline on customer count, which was difficult, because one of our major commodities—foodservice—was reduced significantly. I think for almost any convenience store in Pennsylvania, that’s a large share of their business,” Rankin said. 

According to the Association for Convenience and Fuel Retailing (NACS), fuel sales decreased 26.1 percent from 2019 to 2020 when a quarter of the U.S. workforce began working from home. Prepared food sales decreased 7.4 percent across the industry last year as new pandemic regulations impacted self-serve stations. 
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But there was a bright spot. “We saw wine sales skyrocket, and beer sales did exceptionally well,” Rankin said, noting that PFMA was vital in getting alcohol sales to their stores.

We wanted to comply with all the safety, and that was a great deal that our team members carried out... And they did a great job.
Paul Rankin, vice president, Country Fair, Inc.
To revive foot traffic, Country Fair moved quickly on adapting new safety protocols. “We’ve always believed in a lot of customer interaction,” he said. “The thing we had to do was just concentrate very early on putting plastic shields around our checkout areas, we were early on masking, and we went to almost full sanitation of everything.”

Although these changes provided new challenges for workers, Rankin is proud that the company experienced very little turnover. “We were real happy that we were able to retain our team fairly well. We had our lowest turnover last year of about 40 percent, which, for our business is a pretty low number,” he said. “I was just so pleased that so many of our people believed in us, stayed with us, and dealt with it. …We wanted to comply with all the safety, and that was a great deal that our team members carried out, but boy was that a tough one. And they did a great job.”

Country Fair is now bringing back many of the products and services they had discontinued in 2020, some with modifications. Thankfully, Country Fair’s customer loyalty is helping them to rebound. Its commitment to customers and to the community for the last 56 years is helping immensely, Rankin said.

“We try to do a lot of things for our customers. We’re very customer centric in any way that we can be, and it helped us a lot,” he said. “Obviously, versus 2020, our numbers are great, dealing with what the pandemic is. But 2019 becomes the key number. I think we’re finally hitting 2019 sales again.”

The c-store industry is competitive, and the pandemic has accelerated many conveniences driven by technology. Rankin said they plan to look at incorporating more technology and delivery options in the future. “The phone has become more and more key.”
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For now, Country Fair is concentrating on what makes them different. “Part of what makes us distinct is Country Fair Cares. …Country Fair cares about three things—team members, customers and community­—and that’s what makes us different from other people.”

Committed to the community

In concept, CF Cares is nothing new. The company’s focus on corporate philanthropy has been there from its start 56 years ago, said Paul Rankin, vice president of Country Fair. In 2019, Country Fair formalized its giving program, establishing Country Fair Cares Pump for Charity.

For the program, about 40 stores in Erie County designate special gas pumps for charity. These brightly decorated pumps state that 2 cents from each gallon pumped over a six-month period go toward a pooled fund for local charities.

“We pick local charities—five on an annual basis. We have typically 80 or more that apply,” Rankin said. “We’ve given about $130,000 annually back to local charities in the community.”

As the second Pump for Charity kicked off in 2020, Rankin admitted he did not know what to expect from customers given the impact of the pandemic. But the program surpassed its total from the prior year, raising $142,277. Each of the five chosen charities received more than $28,000.

“Our community once again stepped up to the plate, and we couldn’t be happier with the success of this program.”

Country Fair extended the model to Pump for Hunger in 2020, which involved 29 stores outside of Erie County. Reaching beyond the company’s home base, Pump for Hunger raised more than $78,000 for four food pantries. 
In 2018, Country Fair connected with Second Harvest Food Bank of Northwest Pennsylvania to donate its leftover food to local agencies such as homeless shelters, veterans affairs services or school programs. Country Fair started with three stores and one agency. To date, they have distributed nearly 1 million pounds of food from 41 stores to more than 60 agencies.

Strict policies on food safety require special effort from all employees in order to properly save and donate nutritional food, said Lisa Luben, food service sales manager. “It’s a real team effort. We’ve made it our mission,” she said.
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“We’re the largest contributor to the Northwest food bank in the area—we make a real concerted effort,” Rankin added
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Community is a central part of Country Fair’s mission. The Erie-based convenience store chain established CF Cares in 2019 as a way to support local charities, donating about $130,000 annually.
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Focused on community, Boyer’s looks to the future

3/12/2021

 
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“Cheers” got it right—sometimes you want to go where everybody knows your name. That’s a concept that the Boyer’s family has embraced as a neighborhood grocery store chain, and it’s a feeling that Dean Walker intends to preserve.
It’s been more than two decades since Walker joined the Boyer’s Food Markets family. Walker took the helm as president 10 years ago, and he and his team have worked with Boyer’s to transition ownership over that time. As the remaining Boyers retire, Walker will assume ownership of the supermarket chain this year. He’s positioning Boyer’s for a successful future by balancing its tradition of community with upgrades and modernization of its stores.   

​Boyer’s started as a local corner grocery store in 1949, embracing and maintaining a neighborhood feeling. “Boyer’s operates smaller footprint stores than most of the national competition,” Walker said. “We are in smaller, often rural, communities and need to maintain the identity of the neighborhood grocer as a point of differentiation to the larger national chains.” 

​That neighborhood feeling means focusing on unmatched service. Compared to larger supermarket chains, Boyer’s size might appear to be a disadvantage in some instances, Walker said. But this independent grocer has an edge when it comes to convenience and assistance. “We try to use our size as an

advantage. In and out quick, but your able to get basically everything you want and need in a smaller, more friendly footprint.”
It never stops, we’ll just continue to reinvest constantly to make as many improvements as we can with every resource we have available.

Dean Walker, president, Boyer’s Food Market
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As the chain expands, it’s important to maintain the local feeling. Walker said that’s possible by working closely with the communities they serve. “We’re hiring staff from within these communities, giving the kids in the towns a place to work, working with the local organizations and supporting all of their events. We’re just like one of your neighbors.”  

Walker acknowledged that it can be challenging to keep up with larger companies that have access to more resources. “Customer’s expect the same website experience, the same online ordering experience or the same retail prices as companies that have endlessly larger buying power, staff and resources than we do,” he said. 
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Finding ways to remain competitive and rise above these challenges with the resources they have has helped them maintain success, he said. Another key to their success is keeping their stores current. Walker said Boyer’s regularly refreshes its POS, signage and product and merchandise offerings. These investments provide the stores with a consistently fresh look.

​The renovations extend beyond in-store upgrades, he said. Boyer’s stores are located in small towns and, in some cases, the buildings are pushing 50 or 60 years in age.

“We have an ongoing remodel program, and we reinvest literally every dollar we make back into that program. We’re able to do a major remodel to one or two stores every year, and every store has been touched at least once in the last 10 years. We are already cycling back through stores for a second and third time.”

As Boyer’s continues its rennovation program, its Tamaqua store prepares for a revamp. Altough this location is one of the smaller stores, it is one with high-volume traffic. This is the first store to get more than just equipment and decor upgrades.

“This remodel will include our first-ever building expansion,” Walker said. “A 5,000-square foot addition out the front of the building will allow the entire store to be remerchandised, and every perishable and refrigerated department will be expanded. This will include a brand-new relocated bakery department, produce department and fresh foods to go in the new addition. The entire focus on this remodel and expansion, besides replacing old cases, is to expand perishables and add more fresh food to go.”

Two retail buildings also will be constructed and attached to the store, housing a relocated PA Wine and Spirits store and a proposed beer distributor. The three businesses will all be accessible through the main entrance, creating a convenient, one-stop shopping experience for Tamaqua customers.

The Tamaqua remodel is a huge project for Boyer’s that will require a lot of resources through the spring, Walker said. Once that project is complete, they will shift their focus to the next store on the list. 

”We already have the next stores chosen for upgrades, and once Tamaqua is complete, we’ll begin a smaller project remodel, and a larger one behind that. It never stops, we’ll just continue to reinvest constantly to make as many improvements as we can with every resource we have available.”

​This dedication and commitment to their stores always circles back to Boyer’s first priority—its customers. 
“We pride ourselves on our customer service,” Walker said. “We train on it endlessly—we’ve branded it as ‘Red Shirt Service.’ We hope every customer leaves feeling that we care, they matter, they’re important and that we do everything possible to meet or exceed their expectations. 

Still working hard, still waiting on vaccines

3/11/2021

 
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Masks, vaccinations and sanitization fogging machines had never been concerns for Andrea Karns, vice president of marketing and sales at Karns Quality Foods. Yet 2020 ushered in its own worries and rules.
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“For a grocery retailer, these are conversations and thoughts that we never knew we would be in a position to have,” Karns said.

When COVID-19 hit the scene nearly a year ago, the food retail industry quickly adjusted procedures for customer and employee safety. Deemed essential services, grocery stores remained opened, but faced an unknown battle against a new disease. Workers who have faithfully left their homes to keep supplies and services available to their communities now wait to receive the vaccine.

“We have been able to operate, and I recognize how fortunate we are to have been in that position,” Karns said. “At the same time, the drawback is the same. We have been operating and working to traverse the pandemic at the same time as society. As a company, we had to make decisions for the health and safety of our shoppers as well as our team members during unknown times.”

As the medical community and government worked to develop guidelines and regulations in response to the pandemic, Karns said they were doing the same and looking to other countries or states for additional guidance. Staying proactive allowed Karns to implement temperature testing before it was a state mandate and to quickly order and operate sanitization fogging machines in its stores. Most recently, all Karns locations completed upgrades to their air handling filtration systems, providing additional protection to team members, shoppers and vendors. Even though some practices have been relaxed, Karns said their nine locations continue to monitor customer traffic to ensure it remains appropriate for the size of the store.

“We layered onto the mandates to make sure we were taking every step possible to keep our team members, our shoppers and our vendor partners safe and to keep everyone healthy.”

Since the beginning of the pandemic, Karns said they have maintained staffing. The roles have changed over time, though, to accommodate new rules, for example shifting employees out of salad or hot bar positions to maintenance or cleaning. “We didn’t cut our labor hours, we’ve just shifted those hours into different tasks and duties,” Karns said.

With its quick response to safety and sanitation, Karns Quality Foods, like other grocery stores across the nation, found itself receiving praise for the dedication of its hard-working team. While so many industries went remote this past year, those working in grocery retail continued to leave their homes to provide essential services. Karns said early support for essential workers was welcome, but that seems to have fallen to the wayside in recent months.
Early in the pandemic, essential workers, grocery workers, were being applauded and praised, and there were demands for recognition to be in place.
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Andrea Karns, vice president of marketing and sales, Karns Quality Foods
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Karns believes the state has done its best to recognize and support grocery workers to this point, but the vaccination process has left her “hugely disappointed.”

“Early in the pandemic, essential workers, grocery workers, were being applauded and praised, and there were demands for recognition to be in place,” she said. “The vaccination situation of being in 1B, then being in 1B while other people were expedited into 1A, for a lot of my team members, has been a deflating moment.”

Many of the concerns and questions Karns hears from employees revolve around the availability of vaccines and mask wearing. Many of the answers remain unknown at this point. Karns said her team often asks what vaccination will look like for them, when they can expect to receive a vaccine and if they can anticipate the establishment of a clinic for workers. 

For employees working outside of the home, it is extra challenging to track and schedule vaccination appointments. “That’s not a luxury a lot of our team members have, to be able to have that freedom, that accessibility to the internet and that time,” she said “We are all working, we’re all working outside of our homes in the stores where we can’t just be on our phone refreshing or on a desktop to get these highly coveted appointments.”

Karns Quality Foods does not have pharmacies in its stores. Karns said they are working to connect with local or national chain pharmacies to establish some type of program or clinic for employees. They have shared the estimated number of employees eligible to receive vaccines with several pharmacies, but at this time, pharmacies don’t have enough information about their vaccine supplies to offer such a program. 

When vaccines are available, Karns said the company has established an incentive program to make it easier for team members to take the time needed for vaccination. Employees will receive a $50 payment in total for getting their vaccination, and managers are encouraged to provide flexible scheduling when possible. Karns hopes that this gesture provides a thank you to employees going out of their way to get vaccinated.

“Communities have to come together to make sure folks are able to get it when you have those appointments,” she said.
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In the meantime, Karns looks toward the future with cautious optimism. Even though she foresees the need to continue wearing masks through this year, and essential worker vaccination remains a challenge, she has noticed cooperation from customers as mask mandates and other regulations continue. 
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“The compliance from our shoppers has greatly increased over the last few months. People have come to embrace or surrender—maybe a little bit of both—the best practices of shopping with only one person per family and wearing a mask properly. I’m only hoping that continues to increase.”
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    Liz Kemmery, director of communications

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