Alex Baloga

STATEHOUSE UPDATE

The food industry has experienced tremendous change and unexpected challenges in 2020. During a worldwide pandemic and in the midst of a presidential election year, it was more important than ever for the Pennsylvania Food Merchants Association to connect our members with leaders in the industry and state and federal government.

This year’s Fall Legislative Conference, held virtually at the end of October, created that opportunity for our members in Pennsylvania’s convenience stores, supermarkets, independent grocers, wholesalers and consumer product vendors. Two days of sessions covered topics on state and federal legislation impacting our industry, the effects of COVID on businesses, disability inclusion, loss prevention and cyber and data security.

Just one week out from the presidential election, we were fortunate to welcome PA House Majority Leader Kerry Benninghoff and PA House Democratic Whip Jordan A. Harris to discuss the timely issues of our state budget, liquor reform, COVID, and more. Three representatives of the U.S. Chamber of Commerce later joined us to speak about federal updates, liability, and tax policy.

Our valued members also took time to share their experience. We were grateful to hear about disability inclusion from James Emmett of James Emmett & Co., loss prevention from Dawn Roller, director of loss prevention and POS at Brown’s Super Stores, and cyber and data security from members of EisnerAmper.

This has been a year of incredible disruption, but our members continue to rise to the challenge and adapt. I’m grateful to our conference speakers for sharing their valuable insights and what the future might hold. This conference is a valuable opportunity to meet with our industry, state and federal partners to discuss pressing issues and collaborate moving forward.

We look forward to gathering in person again in the spring for our annual conference. I appreciate the time and expertise of all of our conference speakers, and I’m grateful to our association sponsors for making the conference possible.

We have a lot of work ahead of us, but the future is bright.

 

STATEHOUSE UPDATE

The Pennsylvania Food Merchants Association held its 2020 Annual Conference virtually due to concerns with the coronavirus.

The online event, from June 22-24, included six educational sessions, a keynote speaker, networking happy hour, live trivia, Board of Directors Meeting, and an Annual Meeting open to all members.

A highlight of the event was PFMA President & CEO Alex Baloga honoring outgoing Board of Directors Chair Jeffrey Brown with a gift as a thank you for his service to the Board and to the food industry as a whole.

“His hard work and his dedication, his loyalty to the organization and to the food industry, has really been unparalleled,” Baloga said. “Across the country from what I’ve seen there really is no finer chairman, so we’ve really been blessed to have him at the helm.”

Brown is President and CEO of Brown’s Super Stores and oversees 10 ShopRites and two Fresh Grocer stores in the Philadelphia region. “He fights for the best outcomes in food retail establishments and really focuses a lot on enhancing the overall communities and helping them prosper through his work in food deserts,” Baloga said. “His advocacy and determination has been a force in the face of extraordinary challenges.”

Earlier in the day, Tom Cormier was promoted from Board Vice Chair to Chair. Cormier is Manager of Government Affairs at Retail Business Services, a subsidiary of Ahold Delhaize USA. Lisa Dell’Alba, president & CEO of Bethlehem, Pa.-based Square One Markets was promoted from Board Treasurer to Vice Chair. Board Member Justin Evans, Director of Development Finance and Government for Giant Eagle, Inc., was elected Treasurer, and Board Secretary Gene Cleary, Senior Director, Independent Sales, retained his officer position.

“Tom, Lisa, Justin, and Gene are all successful professionals in the food industry and we’re confident their experience and diverse set of talents will greatly benefit our organization moving forward,” Baloga said. “At the same time, we want to thank Jeff for his service to the board, his leadership, dedication, and tireless advocacy on behalf of retail food establishments. We are sad that he is stepping down but grateful for all he has done for the food industry and excited for what the future holds.”

The conference included six educational sessions and a keynote session, conducted via Zoom:

  • Enhancing the Customer Shopping Experience. Presenter: Gary Henderson, Facility Cleaning Solutions, LLC
  • Current Federal Issues. Presenter: Jon Taets, National Association of Convenience Stores
  • Financial Planning and Succession Planning in Light of Recent Federal Tax Changes. Presenter: Olga Blyweiss, Mazars USA
  • Liquor/LCB Update. Presenters: Mark Kozar and Stan Wolowski of Flaherty & O’Hara, P.C.
  • Growth Planning 2.0: Scaling your Business with the Zoom Method. Presenter: Jack McCraine, Baker Tilly
  • Pennsylvania Lottery Update. Presenter: Drew Svitko, PA Lottery.
  • Keynote Speaker: Jim Glassman, Chief Economist, J.P. Morgan Chase

You can watch the sessions on our YouTube channel.

PFMA partnered with Socio Events to facilitate the conference and attendees used the Socio app to find the session Zoom links, track the agenda, network and connect, and engage with other users. In all, 176 users logged in and viewed at least one session, with the majority watching on their desktop or laptop.

“In all, we were very happy with how the conference turned out given the challenges of conducting it online,” PFMA Director of Communications Matthew Kemeny said. “The Socio app was extremely helpful in helping users navigate the agenda and find the educational sessions most useful to them and their organizations. We’d really like to thank our attendees, members, speakers, staff, and Corporate Leadership Sponsors for their help in bringing the event together.”

Next up for PFMA is the Fall Legislative Conference, scheduled for October 27-28 at Hershey Country Club in Hershey, Pa. The event will include a golf outing, along with educational sessions focused on legislative activity, cybercrime, workforce inclusion, and other important topics. Save the date and stay tuned in the coming weeks for information on registration and an agenda.

STATEHOUSE UPDATE

In July, I wrote a letter to Pennsylvania’s Democratic members of the House on behalf of the Pennsylvania Food Merchants Association (PFMA) and our members to ask that they urge Speaker Pelosi and House leadership to ratify the United States-Mexico-Canada Agreement (USMCA) as soon as possible. Unfortunately, this modernized North American Free Trade Agreement (NAFTA) remains in Congress and the USMCA does not seem to be a priority before the end of the year. Businesses across the country have made themselves clear – we want to see this deal passed in 2019 and there is no legitimate excuse to push it off to next year or longer.

PFMA represents and advocates for convenience stores, supermarkets, independent grocers, wholesalers and consumer product vendors operating in Pennsylvania. We boast members ranging from national chains to independent retailers, which amounts to over 800 corporate members and 3,500 retail food stores that employ more than 200,000 workers here in the Commonwealth. Convenience and grocery stores benefit when the economy is strong, and people are spending money at their establishments. The USMCA will play a part in putting more money in people’s pockets and our members will benefit.

Most importantly, our members and employees would be negatively impacted if the USMCA were not ratified. Pennsylvania’s economy has been closely linked to Mexico and Canada since NAFTA passed in 1994. Trade with our North American neighbors now supports 477,900 jobs across the Commonwealth and represents $16.8 billion in exports. The USMCA will not only maintain this fruitful relationship, but it will help to raise U.S. real GDP by $68.2 billion and U.S. employment by 176,000 jobs.

Businesses across all industries are voicing their support of the USMCA. From farmers to manufacturers, they have all strongly expressed the need for the passage of this trade deal this year. Last year, Pennsylvania exported 85 percent of preserves and specialty foods and 77 percent of vehicle parts to Mexico and Canada. Clearly, the benefits of this trade deal will be experienced by so many sectors of the Commonwealth’s economy.

What is most disheartening is that all of the members of Congress are aware of the benefits and how this modernized trade deal needs to be passed. It is widely reported that there are enough votes in both the House and the Senate to easily get the USMCA through this year. That is why every member of Congress from Pennsylvania must reach out to Speaker Pelosi and implore her to schedule a vote. From there, the USMCA will easily be ratified and our members, along with all of the other businesses across Pennsylvania, will start to see the benefits.

 

 

STATEHOUSE UPDATE

Soccer practice. Theatre. Band. Aunt Janice’s retirement party.

American families lead busy lives. Even after the traditional 9-5 workday, evening events seem to monopolize the week, leaving little time for family togetherness. Dinners are often rushed, unplanned, and not always healthy.

That’s why, this month, we’d like to challenge families to do something that seems very simple. Have one homecooked meal together as a family, per week, with items purchased from your local grocery store.

Pennsylvania elected officials have endorsed the effort. Gov. Tom Wolf issued a proclamation designating September 2019 as Family Meals Month in Pennsylvania. State Rep. Greg Rothman introduced a resolution (House Resolution 455) making the same designation.

“More than 8 in 10 parents say it is important to eat at home together as a family and, those who miss dinners, in particular, say they are trying to eat with their children more often,” Rep. Rothman said. “This is our mission.”

The national Family Meals Month movement originated several years ago from our partners at the Food Marketing Institute (FMI) Foundation. The goal was, and still is, to encourage families to cook and eat together at home, thus providing more opportunity for bonding.

An FMI study showed that 92 percent of United States consumers say they want to eat healthier meals, yet only 30 percent of American families share dinner every night. Dinnertime conversations establish closer relationships and increase parental involvement. (Just refrain from bringing up politics with distant relatives See: Thanksgiving).

The benefits run even deeper. Studies show that regular family meals are linked to kids earning higher grades, improving self-esteem, and resisting negative peer pressure. Each additional family meal shared per week results in adolescents who are less likely to show symptoms of violence, depression, and suicide, and are less likely to use or abuse drugs or run away.

PFMA member stores have strongly supported the initiative. At Giant Food Stores, for example, nutritionists have highlighted easy meal solutions in-store and in the community, including ideas for eating healthy on a budget, while inspiring families to bring everyone together for one more family meal. Wellness Walks, conducted by Giant nutritionists, offer tips for easy-to-prepare dinners, ready-to-eat choices to help save time and fresh ideas to make mealtime fun.

“Families are always juggling busy schedules and struggling to put a nutritious meal on the table—and Giant can help,” said Matt Simon, Giant VP, marketing. “We believe that bringing families together around the table strengthens the bonds that make up a healthy community.”

Wegman’s has offered strategies to organize family meals, which include filling half your plate with veggies, cook once, eat twice, and theme night — which could include Meatless Mondays or Taco Tuesdays.

“Involve the kids with choosing themes – it gives them a stake in planning, it creates variety and it makes shopping easier, said Wegmans Nutritionist Krystal Register MS, RDN, LDN. “Active time for dinner prep can be 30 minutes or less.”

ShopRite has offered four “chef-inspired, dietitian-approved” meal kits, according to a news release. The kits serve two and cost $11.99.

Get involved in Family Meals Month. Post a photo (selfie or “usie”) of you and your family enjoying a home-cooked meal together, include the hashtag #FamilyMealsMonthPA, and email it to us at [email protected] or tag us and post it to Facebook, Instagram, or Twitter.

We’re thankful to our government leaders, member stores, and industry partners who have recognized the importance of this movement and we hope Pennsylvanians join the effort to eat together as a family this month.

Alex Baloga is President and CEO of the Pennsylvania Food Merchants Association.

STATEHOUSE UPDATE

It never fails to amaze me the lengths our members go to in giving back to the communities in which they serve, as well as donations to national charities that benefit a variety of causes.

In the case of Ray Charley, owner of PFMA member Charley Family Shop N’ Save, that length was exactly 3,048 miles. Ray is 68 years old and in fantastic shape, as evidenced by his recent 48-day bicycle trek from San Diego, Calif. to St. Augustine, Fla.

You can follow Charley Family Shop n’ Save on Facebook to get all the highlights, but the basics are: Ray and his team of cyclers raised more than $73,000 for Feherty’s Troops First Foundation, a Maryland-based nonprofit that provides help and support for veterans wounded in Iraq and Afghanistan.

Feherty as in David Feherty – the witty Irishman, famed broadcaster, and host of Golf Channel’s Emmy-nominated show Feherty. Ray’s remarkable effort not only raised a significant amount of funds but also created awareness for veterans suffering with post-traumatic stress disorder (PTSD).

In the legislative arena, lawmakers continue to wade through budget negotiations at the Capitol and there are a number of measures we are focusing on before the summer break.

Senate Bill 321, sponsored by state Sen. Scott Martin, would allow a municipality to prohibit the location of a video gaming establishment within its borders. This would be detrimental to our members who have invested thousands of dollars in good faith to prepare for a lucrative expansion of operations. It also sets a dangerous precedent by giving broad authority to local government to prohibit legal business activity at any time they choose.

We are strongly supporting House Bill 332 which would allow the Superior Court to create a Commerce Court program modeled after the successful Commerce Case Management Program in Philadelphia.The measure is sponsored by state Rep. Seth Grove. It was already approved in the House and is currently sitting in the Senate Judiciary Committee. The proposal would allow Commerce Court to hear cases on corporate acquisitions, mergers, dissolutions, liquidations, or other matters concerning corporations, limited liability companies, trusts, sole proprietorships, and corporate partnerships.

We would like to congratulate our new Board of Directors members and officers. PFMA President and CEO Alex Baloga and Gene Cleary, Director of Independent Sales for C&S Wholesale Grocers, were added to the Board. Jeff Brown will continue his excellent work as Board Chairman; Board Treasurer Tom Cormier was appointed Vice-Chairman; Board Member Lisa Dell’Alba, president and CEO of Square One Markets, was appointed Board Treasurer, and Cleary was appointed Board Secretary.

Two dedicated officers left our Board due to retirement. We’d like to thank Lou Mola of Wawa, Inc., and Frank Puleo of C&S Wholesale Grocers for their service to the Board.

Finally, thank you to our Corporate Leadership Sponsors and all our attendees at our 2019 Annual Conference, which was held May 28-29 at the Pennsylvania Convention Center in Philadelphia. With topics including digital shopping, alcohol, independent grocers, advocacy and healthcare trends, we believe the educational sessions were extremely valuable to our attendees.

We look forward to seeing you at our 2019 Fall Legislative Conference, which focuses more on political trends, scheduled for Oct. 7-8 at the Radisson Hotel Harrisburg in Camp Hill. Learn more at PFMA.org under Events.

STATEHOUSE UPDATE

The weather is heating up and so is the Pennsylvania legislative session. As lawmakers consider the flurry of bills that cross their desks, the Pennsylvania Food Merchants Association (PFMA) is working hard to get specific legislative measures and policy changes across the finish line in 2019.

Senate Bill 139 — legislation that would provide a long-overdue update to the state’s Price Gouging Act – advanced in the Senate’s Veterans Affairs & Emergency Preparedness Committee in March with only one committee member voting against it. The bi-partisan bill, sponsored by state Sen. Judy Ward, would address price controls in a state of emergency, benefitting both business and consumers. Among other benefits, SB139 limits the duration of pricing restrictions to 15 days (with extensions up to 60 days) and would limit its scope to those goods and services necessary for use or consumption. In addition, it requires the governor to specifically activate pricing restriction when declaring a state of emergency, so they apply only when needed. Other states have similar best practices. Similar legislation was approved by the full State House and Senate last year, but unfortunately, the measure was vetoed by Gov. Tom Wolf at the end of session. PFMA is currently working with the governor’s office to come to an agreement on this important piece of legislation.

In Philadelphia, there’s been movement on the crippling sugar-sweetened beverage tax that has had a devastating impact on neighborhood businesses. Philadelphia City Council approved a resolution in March to study the economic impact of the 1.5-cent-per-ounce tax and to hold hearings on the completed study. You don’t have to search far for an example of the hardship created by the tax. Jeff Brown, president and CEO of PFMA member Brown’s Super Stores Inc. and chairman of the PFMA Board of Directors, announced the closure in January of his Haverford Avenue ShopRite, blaming the closure on the tax saying it caused a 23-percent decline in sales and an annual net loss of more than $1 million. According to the coalition, AxTheBevTax, the levy has “drastically raised prices on thousands of common beverages.” A 6-pack of diet green tea that typically costs $4.99 is now $6.07 with the tax. Price increases add up for families on a fixed income.

On the federal end, we’re pleased with the legislation introduced by Pennsylvania Senator Pat Toomey and Alabama Senator Doug Jones that would correct a provision of the 2017 tax reform bill to allow for retailers to fully expense investments in renovation. We’re also monitoring legislation introduced in the U.S. Senate and House to change the legal age of tobacco sales to 21. We’re paying close attention to the measure to make sure it does not put additional burdens on retailers selling tobacco products.

For more information these issues and more, visit www.pfma.org.