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Combatting organized retail crime

2/18/2023

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Organized crime used to be the stuff made for movies: drug trafficking, money laundering, trafficking firearms and smuggling goods.
Now, it’s a growing problem with basic, daily needs. Shoppers might be surprised to see more items locked down at stores or limited quantities available for items including laundry detergent, energy drinks, medicine and fresh meat.

Organized Retail Crime, or ORC, has been on the rise since the height of the pandemic. In 2021, a National Retail Security Survey reported that ORC was up more than 26 percent, equating to nearly $100 billion in losses. 
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Businesses are left brainstorming ways to keep their goods secure, employees safe and customers satisfied.
J.P. Frattone, director of asset protection and safety at The GIANT Company, said their stores experienced an increase in shoplifting and ORC since the pandemic. These issues are impacting a wider geographical area, Frattone said, with ORC offenders traveling across states and hitting multiple stores in the same market.

“Offenders are taking larger amounts each time,” he said. “At times, we are seeing the criminals become aggressive in the ways which they take goods and toward team members and customers. The same criminals are hitting multiple stores within the same area once they are in a particular market. In the past we would not see traveling crews of ORC activity in the suburbs, but now the crews are impacting those areas.”

Retailers expect a certain amount of shrink each year, but ORC is more than small theft. It carries with it different characteristics. Dawn Roller, director of loss prevention for Brown’s Shoprite Superstores, said offenders are bolder and more brazen. They disguise themselves to avoid facial recognition and can be armed. Frattone said thankfully their stores have not experienced violent behavior, but other retailers have seen increased aggression toward employees and customers.

“The bad actors are becoming bolder in their behavior,” he said.

So what changed? Roller surmises that many existing factors have bubbled to the top since the pandemic: the news cycle, poverty and education issues. Frattone adds that inflation, fewer law enforcement resources, prosecution thresholds and bail reform are impacting higher rates of crime.

The ways that criminals can pawn stolen items also has changed, making ORC easier. “Online marketplaces have been a growing channel as an outlet for retail theft,” he said. “Typically, we would see pawn shops and corner stores as an outlet; however, online marketplaces have grown as an outlet for retail theft.”  

Lisa Dell’Alba, president and CEO of Square One Markets, Inc., and PFMA Board president, said a change or increase in in-store theft is less of a problem for their locations. They still experience petty theft and issues with health and beauty products or items like Advil and Tylenol.

For years, they were combating skimming. “What we see now is not an increase but a shift,” she said. “That shift has gone to people breaking sensors and trying to steal fuel again.”

At Square One locations, more people are attempting to steal and syphon gas. “We’re kind of back to some of the old school stuff, in a way,” Dell’Alba said. 

Employees also have been targeted by gift card scammers. People have called store locations claiming to be Dell’Alba, asking the cashier to purchase $1,000 in gift cards and call back with the card numbers. These scammers are taking advantage of employees who typically work quiet, overnight shifts and don’t know Dell’Alba, the owner, well. 

In grocery stores, ORC is targeting a wide variety of everyday items. Roller said laundry detergent, health and beauty products, fresh meat, seafood and baby formula are popular items. Frattone said their stores experience similar losses, noting that targeted items don’t vary by store location. A recent Business Insider article listed thieves most-wanted items, ranging from appliances to razors to housewares to pet medication.

And theft is one issue, but the effects of ORC are much broader.

“Certainly, this is an impact to everyone who shops and works in our stores. Beyond the potential impact to safety, ORC can also impact pricing, the availability of goods for our customers and the experience they have in stores,” Frattone said.
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Certainly, this is an impact to everyone who shops and works in our stores. Beyond the potential impact to safety, ORC can also impact pricing, the availability of goods for our customers and the experience they have in stores."
Retailers are now tasked with implementing new strategies and technology to combat ORC. Some stores are locking up popular items or putting fewer products on shelves. Others are holding special training for team members. Most have had to invest in new security and technology.

Roller trains her team to be observant and use good customer service. “Customer service is key. If you walk up to someone and ask, ‘Are you finding everything you’re looking for,’ they do not want to be identified. They will leave fast.”

But, she is quick to note, “Don’t be a hero.” Dell’Alba feels the same way. Report what you see, but stay safe. “I can replace a Snickers. I can’t replace a team member,” she said.

On the more technical side, Frattone said GIANT locations have implemented new technology that does not impact customers’ shopping experiences, but helps to keep team members safe. “We also implemented third-party security guards, police officers, anti-theft fixtures and mobile parking lot cameras in select locations,” he said.

In addition to increased training, Roller said their stores have implemented new cart technology and self-checkout intelligence that help to resolve ORC problems at checkout. Roller and Frattone also provide their teams with de-escalation training and resources. 

Another beneficial tool is collaborating with other retailers and working through PFMA, said Roller and Dell’Alba. Building relationships and sharing information play a major role in combating ORC. Frattone added, “We can leverage resources and bring cases together, versus acting as singular entities. This will allow for a more successful outcome on taking down large criminal enterprises.”

Illicit trade and organized retail crime remain PFMA priorities. The association supports federal work on this issue and is encouraging Congress to pass the Inform Act, which aims to address the national issue of reselling illegally obtained goods online. PFMA also is working at the state and local levels on a multi-pronged approach to combatting the problem: strengthening partnerships between retail and law enforcement agencies and helping facilitate open lines of communication to ensure criminal activity is prosecuted in an intelligent and systematic fashion, and also pushing for policy reforms where gaps or deficiencies in current retail theft laws exist. 
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To assist with PFMA’s efforts, or to get involved in the association’s Loss Prevention Committee, email associationservices@pfma.net.
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From pandemic to pup treats: Saint Rocco’s Treats fills the void for fresh & local

11/21/2022

 
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Make no bones about it, Kolby and Kaleb Rush were onto something when they cooked up a unique plan for a pandemic project.

The brothers from Bucks County were in college when COVID-19 hit, sending them home to learn remotely. Both had secured internships, but the pandemic derailed their goals. So, they set new goals. 

“We got sent home from both of our respective campuses,” Kolby said.
"We thought we should probably start doing something because we lost internship opportunities. …We thought starting a business—as small as it might be—would be an awesome resume line.”

That thought has grown into much more than a line on a resume. Today, Kolby and Kaleb Rush co-own Saint Rocco’s Treats, a Perkasie-based, small batch, craft dog treat company. But it didn’t happen overnight.

Kolby and Kaleb chose to focus on familiar territory. At the time, Kaleb had his sights set on a business degree at Temple, eventually settling with an entrepreneurship major and marketing minor. Kolby was in his senior year at Penn State focused on finance. They also had some industry insight.

“We were really fortunate because we’ve grown up, through our dad and grandpa, in the dog treat industry. We worked for our dad directly for a number of years, so we roughly knew how to make up dog treats,” Kolby said. “We knew about the backend of the industry, and we saw there really are no local companies making high-quality, meat-based dog treats.”

From there, the duo worked alongside their dad to craft recipes. (Cooper, the family’s Cavapoo, eagerly agreed to taste test.) Then it was full speed ahead with logo design, social media, website development, door-to-door samples and more. 

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It’s really cool. This isn’t anything out of the ordinary. We’re just doing it the way it should have been done."
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—Kaleb Rush, cofounder, Saint Rocco's Treats
Kolby and Kaleb were confident in the product. From their research and experience, they knew their treats filled an unmet need. They focused on fresh, locally produced, human-quality dog treats. “We really saw the issues within the system. Ultimately, that knowledge led us to what Saint Rocco’s is today and how we differentiate ourselves,” Kaleb said.

The big hurdle was getting others to see and taste the difference in the midst of a pandemic. They cranked out small batches of treats in their family kitchen, then started their masked, door-to-door tour of the neighborhood. As dog owners and lovers, they knew they had to win their neighbors’ hearts and minds.  

“To create something, people have to be aware of it,” Kaleb said. “From there, we went to thousands of homes in our neighborhood, delivering free samples and introducing ourselves.”

Once a furry friend tried the product, the Rushes got nothing but rave reviews. They quickly outgrew their home kitchen operation, relocating to a family member’s barn with a kitchen. What started with a small, countertop meat grinder expanded into a commercial kitchen.

Now about two years into their business, Saint Rocco’s Treats can be found in more than 130 independent retailers. Kolby and Kaleb are gaining plenty of fans by attending local events where they can interact with pet parents and their pups. In October, they hosted a grand opening at their store, providing tours of the facilities, offering dog photographs and partnering with a local brewery for refreshments. 

As new PFMA members, they look forward to connecting with retailers, learning more about distribution and creating greater awareness of their products and brand.

Kolby and Kaleb attribute their success to like-minded customers. “Our mission is to provide the best quality and service for our fury friends and what they deserve,” Kaleb said. “Those like-minded consumers really want to be better for their furry friends.”
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“It’s really cool. This isn’t anything out of the ordinary. We’re just doing it the way it should have been done,” he said. 

Crafting the Saint Rocco’s story

While diving into a new business venture, Kolby and Kaleb Rush knew that it was important to build a strong brand. They knew their customers wanted local, fresh, high-quality dog treats. They also recognized customers valued a local business that invested in its community.

The brothers wanted a brand and a product with meaning. They discovered the lesser-known story of Saint Rocco of France. Born into a wealthy family, Saint Rocco became an orphan at a young age. He distributed his wealth to the poor and, when a terrible disease struck Italy, he traveled there to help heal the sick. When he, too, contracted the disease, he was banished from the city. A dog found Saint Rocco in a cove and faithfully brought him food from a nearby nobleman until the nobleman came to Saint Rocco’s aid and eventually he was cured.
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“This was such a cool representation of love and loyalty,” Kolby said. “Our Saint Rocco’s Treats also give back for love and loyalty.” Saint Rocco’s donates $1 to local dog rescues for every 1 pound of treats sold.
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Preparing for a threat anywhere, anytime

8/30/2022

 
It’s been nearly four months since a shooting at a Tops Friendly Market in Buffalo, N.Y., became the latest high-profile, gun-related incident in a grocery store, killing 10 people and injuring others. 
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A growing number of lone wolf-style attacks across the country have terrorized public places such as schools, churches, movie theaters, nail salons, grocery stores and more. In these situations, preparation is key, said Ashley Bleacher, intelligence analyst supervisor for the Pennsylvania Criminal Intelligence Center (PaCIC).

“The threat posed by terrorism has evolved significantly over the past two decades since 9/11,” she said. “We’re still focused on the threat posed by foreign organizations, of course, but we are equally, if not more focused, on the persistent threat that we’re seeing posed by domestic violent extremists. The incidents over the last couple of years at retail locations have been conducted by domestic United States citizens, in most cases.”

The fusion center concept is one of the developments since September 11, 2001, to help identify and prevent future terror attacks. 

“PaCIC is a Fusion Center, and we are part of a national network of fusion centers,” Bleacher said. “A fusion center is a collaborative effort of two or more agencies. We’re the Pennsylvania State Police, and we bring in other agencies that provide resources, expertise and information into the center. We combine that information with the shared goal of building and maximizing our ability to detect, investigate and respond to any kind of criminal activity or terrorist activity.”

Recently, Bleacher and other officials from PaCIC’s Critical Infrastructure and Key Resource (CIKR) Unit met with members of PFMA’s Loss Prevention Committee to discuss ways that food retailers can identify and report suspicious activity. Grocery stores are essential public places, categorized by the Department of Homeland Security as part of 16 vital sectors to protect against terrorist attacks.

It’s all about gathering and sharing information, Bleacher said. “We bring together multiple agencies and sources of information to really put the pieces of the puzzle together, and then share it back out. That’s our biggest role, really, is sharing that information out and making sure it’s not staying static.”

Here’s how it works: Those working in the food, agriculture and retail industries identify and anonymously share information with PaCIC and local law enforcement agencies that they deem suspicious or a threat. PaCIC sifts through incoming information, analyzes it and determines what to report to law enforcement. Appropriate action is then taken to notify or prepare organizations for any threats or trends that might impact them.

“Because of the nature of the ongoing threat environment and how many incidents have occurred over recent years and months, there is a greater general awareness for the potential of an incident to occur anywhere, anytime,” Bleacher said. 

The CIKR unit produces and shares a monthly cyber report and a quarterly report that touches on major events. They offer suspicious activity training, resources, a listserv and other outreach opportunities to those in the public and private sectors. 

The changing environment has been evident to Dawn Roller, senior manager of Loss Prevention and POS and Brown’s Shoprite Superstores. She also serves as chair of PFMA’s Loss Prevention Committee. “There are so many different variables changing rapidly. We update our policies and procedures as incidents arise, whether that be active shooter, robbery, bomb threats, fires, etc.”

Roller has worked in loss prevention with Wakefern for six years. Brown’s Shoprite Superstores rely on many of the procedures developed by Wakefern, but also produce their own based on local events, she said. 

“I think we are very prepared, but it’s important to have reminders at every level and discuss what the safety topic of the day is,” she said. 

Roller has noticed that since COVID, people seem to be moodier, more aggressive and verbally combative. It’s important to know who to contact when an incident arises and how to deescalate a situation, she said. She encourages employees to watch the news and see what’s happening around the country. “If it’s happening in California, within a week, it goes to the East Coast.”

In 2020, many Brown’s stores experienced civil unrest in Philadelphia. Roller said one of the most beneficial resources to their team was using a closed-circuit television (CCTV). As employees tried to safely exit a store, Roller was able to guide them to the roof and tell them to wait for help. She said it’s important to appoint someone outside of the store who can remotely access the CCTV in an emergency.

“I could tell them the safest place to go is on the roof. That was critical,” she said. “You can remote into your store and see where they are. You can give a description to the police or help your associates.”

Roller also stresses setting up regular safety committee meetings and 5-minute huddles at different points of the day to cover safety topics. Regular reminders are important, she said.

Education is another big piece of the puzzle, Bleacher said. A business should stress topics like cyber hygiene, emergency response plans, familiarity with the facilities, communication plans and regular training for employees at every level of the organization. It’s also important to build relationships with local law enforcement agencies so that they have access to emergency response plans and are familiar with the layout of the facility. 

Roller added that it’s important to work together. “I have a great relationship with my Wakefern partners, and if anyone needs guidance, you can always contact me.” 

Managers, employees and even customers all can anonymously report suspicious activity through text and photos with the See Something, Send Something app—free to Apple and Android users. “That information comes directly to analysts at the fusion center who are here 24/7,” Bleacher said.

It’s better to send anything than to overthink it and send nothing, Bleacher noted. Leave the analysis to PaCIC. “We’d rather look at it and determine it’s nothing. Include as much information as you have,” she said. “Include the address and why it is suspicious. Articulate it—why is the behavior suspicious.”

Roller emphasized this isn’t intended to scare anyone. The point is to be prepared. “If you’re a store owner, it could happen to you. It could happen six doors down from you,” she said. “Don’t panic but have a plan. Be calm and think of the next step.”

Identifying suspicious activity

  • Eliciting information that goes beyond curiosity of business operations, security, floor plans, etc.
  • Testing security by challenging personnel or systems to reveal information
  • Recruiting or gathering contacts, personnel data, banking information, etc. 
  • Photographing or recording facilities, buildings or infrastructure, including infrequently used access points, security, equipment, etc.
  • Observing or surveilling facilities or infrastructure beyond casual interest 
  • Acquiring unusual quantities of materials like cell phones, fuel or timers
  • Acquiring expertise such as obtaining military weapons or conducting military tactics
  • Discovering large amounts of weapons or explosives
  • Creating sector-specific incidents with personnel, facilities, systems or function.

Identifying criminal activity or potential terrorism

  • Intruding or entering restricted areas
  • Misrepresenting an identity or affiliation
  • Stealing or diverting something associated with an organization, such as a uniform, badge or vehicle
  • Damaging a facility or infrastructure
  • Compromising or attempting to compromise an organization’s technology with a cyber attack
  • Threatening the organization verbally or in writing
  • Operating aircraft in a suspicious manner
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Anyone can use the See Something, Send Something app to anonymously report suspicious activity. What’s considered suspicious, criminal or threatening activity? Review the lists above provided by the Pennsylvania Criminal Intelligence Center (PaCIC). Download the app for free on any Apple or Android device.

PaCIC operates a 24 hours/day, 7 days/week Terrorism Tip Line, (888) 292-1919, and email account, tips@pa.gov, to solicit information from the public. The Terrorism Tip Line provides an avenue for individuals to report suspicious activity to law enforcement for follow-up.

The PFMA Loss Prevention Committee will focus on suspicious activity and other key issues at future meetings. Association members are free to join this and other PFMA committees to contribute expertise and stay on top of news and trends. Learn more at pfma.org/committees.  ​

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

1 Comment

 
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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.
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