When Nick Bertram resigned as president of The Giant Company (TGC) last August, the quick street speculation was that he was leaving for a better job. Multiple sources claimed he was staying in the industry -“He’s leaving to take the Wakefern job” (to potentially fill the void of current president Joe Sheridan, who is slated to retire in October). While others opined that “He’s going to be named CEO of PECO (Philadelphia Electric Co.),” where Bertram currently serves on that utility’s board.
Of course, neither of those possible destinations proved to be accurate, and a few days after the announcement of his imminent departure from the Carlisle, PA-based brand of Ahold Delhaize USA, I had a candid conversation with the youthful executive.
“I’m not going anywhere,” he explained, noting that he was surprised by all the presumed new jobs he was offered. “I haven’t spoken to anybody about a new job because I wanted to spend more time with my family and recharge my batteries.”
And even though he didn’t say it directly, I could sense that Bertram was looking for a different type of opportunity where his humanity and spirituality would play a larger role in his future.
With his batteries clearly recharged, that opportunity presented itself earlier this month when Bertram agreed to become president and COO of Toronto-based Flashfood, a digital marketplace where retailers can present shoppers with an opportunity to purchase short-coded grocery and perishables products in the stores they would normally shop.
Here’s how it works: using the Flashfood app enables consumers to browse deals – directly from their phone – as a way to save up to 50 percent on high-quality items nearing their “best-by” date. Once the short-coded items are specifically identified (by store) through the Flashfood app on their mobile phones, then order pickup is available in the designated “Flashfood Zone” located inside the individual stores of participating retailers.
Grocery chains currently working with Flashfood include TGC, Meijer, Loblaw (Flashflood’s first participating retailer), Martin’s Markets, VG’s, Family Fare, Save A Lot, Giant Eagle, Food Lion, Stop & Shop and Giant Food (the latter three are all Ahold Delhaize USA brands),
Flashfood said it had just completed a historic year having diverted more than 65 million pounds of food from landfills – a milestone achieved following the company’s rapid expansion to over 1,550 grocery stores across North America. In addition to providing consumers and retailers with a simple solution to reduce food waste, Flashfood estimates that it has saved shoppers more than $150 million on grocery bills during a time when food costs are rising more than 11 percent.
“Nick brings an unprecedented level of first-hand leadership experience with some of the biggest names in the retail sector,” said Flashfood founder and CEO, Josh Domingues. “His vision and successes around sustainable retailing align perfectly with our company’s mission to reduce food that is wasted throughout the retail sector. Nick has seen how the level of waste experienced by grocers represents billions of dollars in lost revenue and understands the massive impact this also has on our planet. More importantly, he understands how this food could have helped families which is a shared passion he brings to Flashfood that will help fuel our next phase of growth.”
In his new role, Bertram will be tasked to accelerate Flashfood’s growth, working closely with Domingues and internal department leaders to further develop capabilities and innovation that impacts the connected problems of food insecurity and food waste.
“I have never been more excited about the collective impact the food industry, sustainability-minded investors and technology companies like Flashfood can have on our future,” said the Kentucky native who has also worked for JC Penney, Jewel-Osco and Walmart in a grocery career that began when he was 16. “Josh and the rest of the board of directors have given me an amazing opportunity to join at this stage, with such a talented team and unique product. Together with its retail partners, Flashfood is already making huge inroads in reducing food waste while helping consumers save money – and now is the right time to accelerate this bold work,” Bertram noted.
In another food waste initiative, last month Bertram was named founding member of the advisory board of Divert, Inc., a West Concord, MA-based tech company that creates infrastructure to eliminate waste. Divert works with five Fortune 100 companies and nearly 5,400 retail stores across the U.S., helping food merchants reach their sustainability goals.
If you’ve ever spent time with Bertram, you can feel his passion and tenacity when he believes strongly in an objective or mission.
At only 42, he’s had a quick rise and a great run in a career that’s still on the upswing. Working for a company that’s still in its infancy while also being in a position where he feels he can make a difference in food waste seems like a great fit. We wish him well.
‘Round The Trade
Multiple reports indicate that Kroger and Albertsons are beginning intensive talks to get an early jump on a potential Federal Trade Commission (FTC) ruling that will undoubtedly call for the combined entity to shed overlapping stores. Reuters reported that the two chains are focusing on selling 250 to 300 stores that could reap more than $1 billion in returns. Whoa! Slow down. There’s nothing wrong with pre-planning, but to think that the divestment “number” will only be 300 stores is a pipedream. And so is SpinCo, the yet-to-be-created publicly-traded company that Albertsons plans to form for those stores that aren’t sold even after a divestiture ruling by the FTC. Here’s my take: if the FTC ultimately does approve the merger (DC-based research firm Washington Analysis places the odds of approval at 35 percent), it’s not inconceivable that 1,000 stores might be in the divestment pile (500 stores would be a minimum). And SpinCo is even harder to perceive as reality thinking. Let’s see, we have 300 “orphan” stores that either came in second to the Kroger and Albertsons stores the new company elected to keep; or those supermarkets have other tangible issues such as location desirability or size restrictions. And then, we’re going to re-banner these stores (with an unfamiliar name) and create a new operating company (by launching an IPO) to run them. If I were selling stores, I’d rather have a poorly run Amazon Fresh store than an underperforming 35,000-square-foot Jewel unit on the South Side of Chicago. Fairy tales aside, the biggest problem remains the FTC and its very, very left-leaning chairwoman, the aforementioned Lina Khan, 33, who is an acknowledged mega-merger hater (she’s already blocked seven proposed mergers in her 20-month tenure on the job). Khan’s strident anti-big business posture is the reason that Christine Wilson, one of two Republicans on the five-member panel, said she would soon resign due to Khan’s “lawlessness.” “My fundamental concern with her leadership of the commission pertains to the willful disregard of congressionally imposed limits on agency jurisdiction, her defiance of legal precedent and her abuse of power to achieve desired outcomes,” said the antitrust lawyer who was appointed to the FTC by Donald Trump in 2018…Ahold Delhaize posted exceptional numbers in its fourth quarter and fiscal year 2022 (ended December 31). At its 2,051 U.S. stores, comp stores sales increased 9.3 percent (excluding fuel) and U.S. operating profit rose 16 percent in the quarter to $857 million in the 13-week period. Digital sales in the U.S. also fared well with ADUSA’s stores increasing online revenue by 17.3 percent to $1.2 billion. Ahold Delhaize CEO Frans Muller singled out Food Lion and Hannaford as strong performers and also noted gains made by Stop & Shop (the retailer’s largest U.S. brand) in New York Metro where it spent $140 million remodeling part of its 25-store fleet late last year. Plans call for eight more New York Metro stores to be upgraded in Q1 of this year. During Ahold Delhaize’s analyst conference call, Muller said that inflation is likely to mitigate to some degree later this year but will remain at “elevated levels.” He added that he expects vendors to provide more promotional funding by creating more opportunities to offer lower prices. However, based on my conversations last month at FMI Midwinter with about 30 senior-level retailers and manufacturers, I’m not sure I’m getting the same vibe as Muller when it comes to suppliers opening up their pocketbooks.…also talking about needing more vendor “help” was Alyssa Vescio, senior VP-center store merchandising for Whole Foods…in its latest report, which was released in mid-February, the Bureau of Labor Statistics’ Consumer Price Index (CPI) continued to provide the best inflation news in more than a year. However, food price inflation once again remained a concern when compared against all other economic indicators. The overall inflation rate declined 0.1 percent to 6.4 percent year-over-year in January. Food prices, while decreasing to 10.1 percent growth last month (down from 10.4 percent in December still remain too high). Four of the six major food measuring groups showed modest declines when compared to a year ago. Those declining categories included: cereal/bakery products (+15.6 percent); fruits and vegetables (+7.2 percent); dairy (+14.0 percent); and other food at home (+13.2 percent). Two other categories experienced continuing price increases – meat/poultry/seafood/eggs (+8.1 percent) and non-alcoholic beverages (+13.1 percent)…as far as monthly online grocery revenue goes, according to research firm Brick Meets Click/Mercatus, total U.S. online grocery sales decreased slightly in January 2023 from a year ago. However, that decline – 1.2 percent – came from the “ship-to-home” segment which declined 15 percent. Overall, digitally sourced grocery purchases now comprise about 12 percent of the total grocery pie. Moreover, the survey noted that, for January, the likelihood that a customer will use the same service within the next 30 days decreased two percentage points versus 60 percent last year. “The large gap in repeat intent is concerning and should raise a red flag for conventional grocers. While our monthly research didn’t examine the causes for the variations between grocery and mass, it could be associated with a number of variables, including product pricing, service-related costs, or differences in customer experience, so grocers may want to analyze what are the main culprits driving their respective rates lower,” said David Bishop, a Brick Meets Click partner and co-founder. In a separate report, Brick Meets Click/Mercatus predicted that U.S. online grocery sales would grow at a compound annual growth rate (CAGR) of 11.7 percent over the next five years, which would increase digital grocery share from 11.1 percent to 13.6 percent. I’d say that those who made predictions that online grocery sales would grow to nearly 25 percent of the total pie by 2025 might have been a wee bit optimistic or they were projecting that inflated number through COVID-tinted glasses…according to research firm Coresight, retailers will triple the number of physical stores they open this year compared to 2022. However, the bulk of those ribbon cuttings will continue to be smaller-box, discount merchants, not supermarkets or mass merchants. Last year, the fastest growing retailers (in terms of adding stores) were Dollar General, Dollar Tree, Five Below, TJX Cos. and Aldi…OK, this isn’t supposed to be funny, but why can’t I stop chuckling every time somebody mentions the Mars Wrigley chocolate-covered men incident? You know, the one where two employees fell into a vat of chocolate at the candymaker’s Elizabethtown, PA factory last June. Earlier this month, the Occupational Safety and Health Administration (OSHA) fined the company $14,500 (a mere pittance) and said the two workers (who were actually outside contractors hired by the company’s M&M/Mars division) were not authorized to work in the tanks and had not been trained on the proper safety procedures for the equipment. Maybe Mars Wrigley should have hired Lucille Ball? Or better yet, Bill Murray!
Local Notes
As many of our retail readers know, on March 1 SNAP emergency allotment benefits will end. At that point, the federal monthly benefit will revert back to pre-COVID levels when the minimum allocation was $23. Earlier this month, New Jersey, which had been receiving an additional $75 million monthly contribution (totaling more than $2 billion since 2020) from the Department of Homeland Security, announced that it will contribute state funds to help those who would be devastated by a return to 2019 levels. However, a new law signed by Governor Phillip Murphy will now provide all households eligible for SNAP with a minimum $95 monthly benefit. With this action, 46,000 New Jersey households will receive the new minimum benefit amount beginning in March. New Jersey is the first state to increase the minimum SNAP benefit. The increased funding will also help food merchants whose strong top-line sales over the past three years have been partially aided by those increased food assistance dollars…The Giant Company (TGC) earlier this month announced that four electric vehicles will join its fleet of 164 delivery vehicles. The electric vans will be utilized to serve TGC’s Giant Direct online delivery customers in the Philadelphia area. According to the Carlisle, PA-based ADUSA brand, the new mini-fleet will save the company almost 9,000 gallons of gas annually, will travel 108 miles before a recharge is needed and will reduce the retailer’s environmental footprint by preventing 171,963 pounds of greenhouse gas emissions annually. TGC said it plans to add more all-electric vehicles to its fleet over the next few years.
From the Taking Stock obituary desk: Just before presstime, we learned of the death of Raquel Welch, 82. The San Diego native was a much underrated performer, particularly as a comic actress, as could be seen in such films as “The Magic Christian” (1969) portraying the Mistress of the Whip and “The Three Musketeers” (1973) in which she played a ditzy Frenchwoman. Arguably, her best role came in one of the worst films over the past 60 years – “Myra Breckinridge” (1970) – in which she played the title role in what might have been the first transgender role in movie history. While the movie, based on a Gore Vidal novel, was really horrific, Welch played the over-the-top leading character in fine fashion. All told, she appeared in 73 movie and TV roles from 1966-2017. And before there were Farrah Fawcett posters in the mid-1970s there were Raquel Welch posters. And if you’re an old dinosaur like me, I’ll take the doeskin bikini worn by Ms. Welch in the 1966 classic “One Million Years B.C.” any day. Of course, I was 15 at the time so pardon my retro-chauvinism.
Also, the incredible Burt Bacharach, 94, has passed. Aside from The Beatles, can you name a better pop/rock songwriter over the past 75 years? The classically-trained musician co-wrote many of his hit songs with lyricist Hal David, but also collaborated with other wordsmiths like Carole Bayer Sager (his ex-wife) and Paul Anka. And to prove my point, here are a dozen of the most popular Bacharach songs, along with the artists who sang them (and gained greater career fame from them): “Baby It’s You” (1961 – The Shirelles); “What The World Needs Now Is Love (1965 – Jackie DeShannon); “Walk On By: (1963), “Anyone Who Had A Heart” (1963), “I Say A Little Prayer” (1967), “Do You Know the Way To San Jose?” (1967), “I’ll Never Fall in Love Again” (1969) and “That’s What Friends Are For” (1982) (all by Dionne Warwick with a shout out to Aretha Franklin for her version of “Prayer”); “This Guy’s In Love With You” (1968 – Herb Alpert); Raindrops Keep Fallin’ On My Head” (1969 – BJ Thomas); “(They Long To Be) Close To You” (1970 – Carpenters); and Arthur’s Theme (Best You Can Do” (1981 – Christopher Cross). And I could have picked a dozen more and still had room left over. And if there’s one album I’d choose from the large Bacharach discography, I’d pick his 1998 “Painted From Memory” record with another great artist, Elvis Costello. On paper, the two would seemingly have nothing musically in common. That would be incorrect. Listen to that 12-song disc – you’ll feel the magic almost immediately. Burt Bacharach was a once-in-a-lifetime talent!
