Grocery Roundup: Food Supply Under Federal Review

The events of the past year have showcased many businesses’ resilience, but not all were able to make it through unscathed. Businesses have collapsed, jobs have been lost, stores have closed and salaries have been cut. When it came to food production, the supply chain was impacted at every level, highlighting just how unprepared the industry was for such a crisis.

Now, to prepare the industry for future crises and address vulnerabilities in the system, the presidential administration is ordering a review of the supply chain. On Wednesday (Feb. 24), President Biden signed an executive order that, according to the White House statement, “launches a comprehensive review of U.S. supply chains and directs federal departments and agencies to identify ways to secure U.S. supply chains against a wide range of risks and vulnerabilities.”

The six sectors named in this order include agricultural commodities and food production. The order calls upon federal agencies to “make specific policy recommendations to address risks, as well as proposals for new research and development activities.” It requires a year-long, comprehensive review that will identify points of vulnerability and will involve consultations with “outside stakeholders, such as those in industry, academia, non-governmental organizations, communities, labor unions and state, local, territorial and tribal governments.” The review could help prevent the sort of grocery store shortages experienced early on in the pandemic.

Gelson’s Markets To Be Acquired By Multibillion-Dollar Japanese Retail Group

Gelson’s Markets, a high-end grocery store in Southern California, will be acquired by Pan Pacific International Holdings (PPIH), a Tokyo-based company that operates 638 stores internationally. The deal will likely close in the second quarter of the year, reports Progressive Grocer. PPIH, which most recently reported US$15.8 billion in yearly revenue, operates, among others, Japan’s famous Don Quijote discount department stores. Several of its chains have expanded into the U.S., with locations in Hawaii and California. Gelson’s is being sold by private equity firm TPG Capital, which acquired the chain in 2014.

“As we look to the future, we are excited about opportunities for new growth and partnerships under PPIH, while remaining focused on our longtime commitment to the highest standards of quality, value and unsurpassed customer service,” Gelson’s President and CEO Rob McDougall said in a statement excerpted in Progressive Grocer. “PPIH leadership has visited every one of our locations and has been incredibly complimentary of our stores and teams, as well as our customer service philosophy.”

PPIH President and CEO Naoki Yoshida added that PPIH looks forward to “satisfying customers who value quality products, cleanliness, convenience and personal service.”

Publix Incentivizes Employee Vaccinations With Gift Cards

Several grocery stores are offering to compensate employees for the time it takes to get the COVID-19 vaccine, incentivizing them to stay safe and to help build herd immunity. Kroger is providing a flat $100 payment, Instacart is offering a $25 stipend, and Trader Joe’s and Target are incentivizing employees with an additional four hours’ pay.

Now, Publix Super Markets is getting into the incentives game with a higher value but more limited offer — eligible employees who show proof that they have been inoculated will receive a $125 Publix gift card, reports Supermarket News. Publix also offers the vaccine in several states, though employees are eligible for the gift card whether or not they receive their vaccines at a Publix pharmacy.

Perhaps a gift card that can only be used at one’s workplace is not the most exciting reward, but the value is significantly higher than even the more generous vaccination bonuses offered by competitors — and, of course, the gift cards will be convenient to redeem. Unfortunately for these employees, there is no employee discount at Publix, according to Indeed, so the $125 value will not be compounded by additional offers.

Walmart Pilots Bagless Initiative In Vermont

As consumers increasingly factor retailer values into their buying decisions, plastic waste has become a hot-button issue for eco-minded shoppers. In light of the increased attention placed on this waste, Walmart has been announcing initiatives to reduce its environmental footprint. Now, according to a company blog post on Monday (Feb. 22), the superstore is piloting a “bagless” program in Vermont.

This bagless initiative does not actually eliminate the retailer’s use of disposable bags. Rather, it requires that any bags given out by the company be paper rather than plastic. As the post states: “Key learnings from the final outcome of the pilot will be used to determine the future direction for our company’s bagless efforts.”

Meanwhile, all of Walmart Mexico y Centroamerica is going entirely bag-free. By the end of 2020, almost three-quarters of the stores in the region did not provide disposable bags. The post explains, “instead of offering yet another single-use solution, we made the decision to go fully bagless and encourage our customers to look to reusable bags.”

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