News Briefs

Member company representatives of FMI – The Food Industry Association are making their way to the nation’s capital today to advocate for legislative solutions to address industry issues and create opportunities for economic growth. Dozens of executives representing food retailers, wholesalers and product suppliers who sit on FMI’s Government Relations Committee are meeting with lawmakers to discuss such key topics as Farm Bill reauthorization, food safety regulations, credit card competition and pharmacy benefits manager (PBM) reform. 

“We are excited to bring FMI members together once again to have important discussions with key elected officials on the industry’s top legislative priorities,” noted Jennifer Hatcher, chief public policy officer at Arlington, Va.-based FMI. “The food industry plays a vital role in supplying more than 100 million American households with the foods and household goods they need every day.” 

Added Hatcher: “Food retailers, wholesalers and product suppliers of all sizes support reauthorization of SNAP, a vital program to so many Americans, and advocate for the continued safety and efficiency of the most abundant food system in the world. Our retailer members are also confronted with ever-increasing credit card swipe fees paid to the largest banks and credit card companies at the expense of communities across our nation. Additionally, our members operate 12,000 pharmacies in diverse communities throughout our country that are seriously threatened by the anticompetitive business practices of the largest PBMs.”

FMI’s 2020 Day in Washington was canceled, and the organization’s 2021 and 2022 D.C. events were held virtually, because of the pandemic, so this year marks the first in-person Day in Washington since 2019.

A new study from Acosta Group affirms that shoppers use trips to drug stores to stock up on everyday essentials, including groceries. According to Acosta’s "Drug Store Channel Shopper Insights Study," released ahead of the upcoming National Association of Chain Drug Stores (NACDS) meeting, 69% of drug store shoppers look for groceries, personal needs items, and other food and nonfood products for themselves or their families. That’s about equal to the 71% who go to those stores to pick up prescriptions and the 70% who shop the pharmacy area for over-the-counter items.

The survey also underscored growth and potential in this retail sector, which gained strength during the pandemic and has been fueled by consumers’ overall interest in health and wellness. "We heard repeatedly from drug store shoppers that convenient location, discounted pricing and one-stop shopping are appealing drivers in choosing drug stores over other retail options," said Kathy Risch, SVP, consumer insights and trends at Jacksonville, Fla.-based Acosta.

In a competitive retail market, brick-and-mortar drug stores are seeing traffic increases. Acosta’s survey showed that 58% of consumers visit drug stores two to three times a month, and a third of younger shoppers have increased their number of trips to such locations.

Younger shoppers, including Millennial and Gen Z customers, are also more likely to place orders on a drug store’s e-commerce site. When buying online, customers of all types are purchasing a variety of products, with 61% of survey respondents reporting that they buy groceries and other household goods from stores’ apps and websites.  

"As we work with our clients, we are focusing on the importance of the omnichannel experience to grow opportunities within small-format retail. Critical to success in drug stores is bridging the gap between the physical and digital shelf to meet the way consumers want to shop this channel," observed Shannon Hodock, SVP, client development at Acosta.

Survey participants also shared areas for improvement at both physical and online drug stores. Among other suggestions, shoppers said they would like to see more staff members, fewer out-of-stocks and more consistent online ordering experiences.

The Fresh Market has launched an in-store fundraiser in states recently affected by devastating tornadoes. Customers can round up their purchases at the register or make a donation from April 19 to May 2 at stores in Alabama, Arkansas, Mississippi, Illinois, Indiana and Tennessee.

Funds raised through the campaign will support Feeding America partner food banks closest to disaster areas in each state, including:

• Alabama: Montgomery Area Food Bank
• Arkansas: Arkansas Foodbank
• Illinois: Northern Illinois Food Bank
• Indiana: Gleaners Food Bank of Indiana
• Mississippi: Mississippi Food Network
• Tennessee: Second Harvest Food Bank of Middle Tennessee

"We are deeply saddened by the destruction and loss of life caused by the recent tornadoes," said Jason Potter, CEO of The Fresh Market. "As a company with a strong commitment to giving back to the communities we serve, we are proud to partner with Feeding America to provide critical food support to people affected by these devastating storms."

"We are grateful for The Fresh Market and their continued partnership during this critical time," said Lauren Biedron, VP of corporate partnerships at Feeding America. "This generous campaign will help provide much-needed assistance to communities put at risk for food insecurity by these devastating tornadoes.”

Based in Greensboro, N.C., The Fresh Market, operating approximately 160 stores in 22 states, is No. 78 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.

Independent halal grocer Mannan Supermarket, located in the New York City borough of Queens, is teaming up with Zara Charitable Foundation to combat food insecurity among local children. The foundation will underwrite the cost of a year’s worth of fresh, culturally appealing products sourced from Mannan to feed 200 diverse families served by The Gaton Foundation, a Jamaica, N.Y.-based nonprofit group that provides proper nutrition and wellness.

According program organizers, the timing of the initiative comes after a rollback of pandemic-era assistance through the Supplemental Nutrition Assistance Program (SNAP) and the Special Supplemental Nutrition Program for Women, Infants and Children (WIC). “Food prices are increasing at the same time inflation is eating away at the value of money at the same time food benefits are vanishing, making it three times more expensive for families to afford to eat healthy,” explained Mannan's Mahinur Rahman. “When Zara suggested we work together to secure fresh, culturally relevant food to help people make ends meet, we were proud to supply the need.”

Added Tony Subraj, managing partner of Jamaica, N.Y.-based Zara Realty and a leader of the Zara Charitable Foundation: “Many families are struggling to put food on the table and, after both SNAP and WIC resources got reduced, we knew how important it was to step up and help hardworking families maintain access to fresh, nutritious food.”

The program kicked off in early March, when a Mannan Supermarket location in the Queens neighborhood of Jamaica donated a variety of foods to feed local families through Richmond Hill High School. Residents received products such as roti, lentils, tortillas, rice, butter, bread and crushed tomatoes.

It’s been a busy week for sustainability news in the food retailing business, as Earth Day has become a touchstone for sharing progress toward environmental, social and governance (ESG) goals. The latest:  United Natural Foods, Inc. (UNFI) has rolled out a new Climate Action Partnership aimed at helping its suppliers make credible climate commitments.

The partnership, an extension of UNFI’s Climate Action Hub and part of its Better for All strategy, is designed to provide UNFI suppliers with resources and tools to “innovate and scale” climate solutions. To become a partner, suppliers must have their climate commitments verified through approved third-party organizations such as the Climate Collaborative, Climate Neutral, The Climate Pledge, the Science Based Targets Initiative or the SME Climate Hub.

According to UFFI, more than 40 suppliers have already joined the partnership following early outreach efforts, including Conagra, Bob’s Red Mill, Dr. Bronner’s, Gaia Herbs, Danone and Lundberg Family Farm. “By encouraging our suppliers to set climate goals, we are also making it easier for our customers to choose products that take action on climate,” said Alisha Real, UNFI’s VP of ESG and social impact. “It’s a win-win for all, and a collective step forward to addressing some of today’s most urgent issues.”

Earlier this month, UNFI revealed that it had completed its largest solar array investment to date at a distribution center in Howell, N.J., reflecting its own credible climate commitments through the Better for All sustainability agenda.

Providence, R.I.-based UNFI delivers a wide variety of products to customer locations throughout North America, including natural product superstores, independent retailers, conventional supermarket chains, e-commerce retailers and foodservice customers. The largest publicly traded grocery distributor in America, the company is No. 49 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.

FreshDirect has launched a one-year pilot program in which the e-grocer will work with emerging and diverse-owned businesses to help them grow their brands.

According to the online food retailer, the FreshDirect Small Business Incubator Program is an opportunity for businesses to adapt strategies for e-commerce success, grow their customer base within the New York metropolitan area, increase diversity within the food system, learn best practices and industry standards, be mentored by a FreshDirect category manager, be included on the FreshDirect website, and cultivate ongoing relationships with FreshDirect, distribution partners, community partners and other emerging entrepreneurs.

This year, FreshDirect aims to debut several new brands at retail as part of its incubator program. Final selections will be limited to one brand per category.

Those interested in applying for the program can do so online. Applications will be accepted through Friday, April 28. 

Bronx, N.Y.-based FreshDirect services the New York City metro area. Parent company Ahold Delhaize USA is No. 10 on The PG 100, Progressive Grocer’s 2022 list of the top food and consumables retailers in North America.