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GOURMET NEWS JUNE 2016 www.gourmetnews.com Retailer News RETAILER NEWS 1 3 BRIEFS Kaune's Neighborhood Market: Balancing Specialty Foods and Staples in Historical Santa Fe Anyone who wants to learn how to bal- ance specialty foods or prepared foods and staples under one roof should visit with Cheryl Pick Sommer, owner of Kaune's Neighborhood Market in Santa Fe, New Mexico. She could write a book on the subject. Kaune's (pronounced KAH nees) sits across the street from the New Mexico state Capitol. The 7,500 square foot inte- rior features wide aisles, wooden displays and soft lighting. "Three years ago, we de- cided to remodel and we closed the store," Pick Sommer says. "Our plan was to close for three weeks and remodel the interior completely. We ended up closing for five weeks. We opened back up hoping cus- tomers would remember us and show up." Sommer undertook the renovation to optimize her usable space for new pre- pared food and expanded fine food sec- tions. The new floor plan balanced specialty foods, prepared food and every- day staples in way she thought would ap- peal to her broad range of customers and produce new revenue and profits to spur growth. "We wanted to grow our prepared foods. And we created what we call the 'Neighborhood Chop' as part of that," she says. "It's a service chopped salad bar. The customer walks up to the bar, picks out their lettuce, plus five or six ingredients, we put it in a bowl for them and off they go. It's been a big success." Sommer also expanded sandwich making, added rotis- serie chickens, and enlarged the cheese, wine, beer and spirits sections. "We're about 45 percent basic groceries, and about 55 percent specialty items," she says. "The fine cheese department is nicely profitable, as well as wine and spe- cialty grocery. In the world of Total Wine and other large competitors, and people ordering on-line, you still have to be com- petitive on pricing for wine." Customers can choose from almost 200 wine SKUs, from a Calina Chardonnay from Chile for $8.99, to a Vilmart & Cie Grand Premier Cru Champagne for $85.00. The cheese selection includes everything from a domestic pepper jack for $6.99 a pound to a Cashel Irish Blue Cheese for $20.99 a pound. In specialty foods, a shopper can select from a Rising Moon Butternut Squash Ravioli for $5.59 or Urbani Tartufi Summer Truffles for $84.00 for seven ounces."We try to re- main competitively priced on grocery sta- ples, on things you can find everywhere," Sommer says. "We work hard to find items the other stores aren't carrying, so we have a niche through our product of- fering, as well as the service we offer from our staff." Sommer travels New Mexico back roads to find growers and producers who can provide the best local products. The cheese section includes chevre made at a nearby Santa Fe ranch. The produce area features fresh herbs, including dill, mint and thyme from an area farm. And in condiments, she offers a green chile fla- vored ketchup called Hatchup Katchup. In terms of sales and growth, Sommer is projecting an increase of eight to 10 percent for 2016, with that same rate of growth continuing for the next five years as well. "Yes, I think it's doable, and we're working at it," she says. Kaune's decades of service to the com- munity inspired the 2016 Award for Best Grocer/Retailer given by Edible Santa Fe magazine readers. "Cheryl has been a pil- lar in the Santa Fe grocery scene for many years," Stephanie Cameron, Edible's Pub- lisher says. "She has elevated Kaune's to a comfortable, upscale market that offers the basics, as well as new and unusual food products." GN ALDI Quickly Grows California Footprint ALDI took its California footprint from zero to 25 stores in less than three months with the grand opening of seven new locations in San Diego, Kern and Imperial Counties on Thursday, May 19. The company plans to operate approximately 45 California stores by the end of 2016, and more than 2,000 stores nationwide by the end of 2018. Currently, the grocer operates more than 1,500 stores in 33 states and serves 30 million customers each month. Gelson's Donates Brown-Bag Fees to Environmental Groups To celebrate Earth Day, Gelson's donated $5,000 each to four environmental organizations – Heal the Bay, Tree People, Grades of Green and San Dieguito River Valley Conservancy – in order to support their missions. The donation to these four nonprofits is funded by brown bag fees, collected throughout the year in 14 of 23 Gelson's stores as mandated by local legislation. The 10-cent per bag fee is charged to customers who opt to buy paper bags, rather than supply their own reusable bags, in communities Successful Tender Offer for The Fresh Market, Inc. Certain funds affiliated with Apollo Global Management, LLC announced the successful completion of a cash tender offer for all of the outstanding shares of common stock of The Fresh Market, Inc. The tender offer, which was made pursuant to the agreement and plan of merger entered into by certain affiliates of Apollo and The Fresh Market on March 11, 2016, expired as scheduled on April 21, 2016. A total of 32,103,659 shares of common stock of The Fresh Market, representing approximately 68.2 percent of the outstanding shares, were tendered into and not withdrawn from the tender offer. As a result of the tender offer and the merger, The Fresh Market will become a privately-held, indirect wholly- owned subsidiary of the Apollo funds and certain other investors. Albertsons Companies Receives EPA Award The U.S. Environmental Protection Agency has named Albertsons Companies (Albert- sons) winner of its Safer Choice Partner of the Year Award for the company's commitment to increasing awareness of the EPA's Safer Choice Program for sustainable products. The Safer Choice Partner of the Year Award recognizes businesses and organizations that advance the goal of chemical safety through exemplary participation in or promotion of the Safer Choice Program. Albertsons was recognized in the "Retailer" category and dis- plays the Safer Choice logo on its Bright Green line of earth-friendlier private-label products as well as promotes the Safer Choice Program in stores, advertising and online messaging. "It is an honor to receive this recognition from the EPA for our commitment to the Safer Choice Program and for selling prod- ucts that are safer for families, communities and the environment," said Jonathan Mayes, Senior Vice President of Corporate Social Re- sponsibility, Public Affairs, Government Re- lations and Philanthropy. The Safer Choice Program, formerly known as the Design for the Environment (DfE) Safer Product Labeling Program, was developed in 1997 and draws upon chemical and environmental expertise from across the EPA. Safer Choice uses the technical tools and expertise of the EPA's New Chemicals Program to evaluate the environmental and human health impacts of every chemical in- gredient in a product, allowing only the safest ingredients in labeled products. As a volun- tary partnership program, Safer Choice brings all interested parties together to advance sus- tainability in chemical products. More than 2,000 products currently qualify to carry the Safer Choice label. Albertsons' Bright Green Glass & Window Cleaner and Bright Green Rinse Aid, sold in stores nationwide, are the first of the com- pany's Bright Green line of sustainable home care and paper products to display the Safer Choice label. More Bright Green products will be added to the program in coming months in addition to other national brand Safer Choice products. "Safer Choice commends Albertsons Com- panies for its prominent use of the Safer Choice label on its private-label products and its continued efforts to expand its offering of Safer Choice-labeled products to consumers," the EPA wrote in the award announcement. Introduced in 2008, the Bright Green line includes cleaning products made with non- toxic and biodegradable ingredients, paper products made from at least 50 percent recy- cled content, and compact fluorescent light bulbs. All Bright Green products have been evaluated by a third-party agency which an- alyzes the product's life cycle and ensures that the benefits are not accompanied by hidden negative environmental impacts. The product line is a small part of Albert- sons' commitment to minimizing its impact on the planet. The company is also working on waste reduction initiatives for all of its fa- cilities, including 30 distribution centers and 21 manufacturing plants. In 2015, the facili- ties and stores recycled more than 22 million tons of soft plastic. Water- and emissions-re- duction programs are helping to further re- duce the company's environmental footprint. In addition, Albertsons has committed to sourcing certified sustainable palm oil for use in its private-label products. More information about the EPA's Safer Choice Partner of the Year Awards and Safer Choice Program can be found at https://www.epa.gov/saferchoice/safer-choice- partner-year-awards. GN BJ's Wholesale Club Introduces New Pick Up & Pay Service BJ's Wholesale Club announced that its members now have the option to pick up and pay at all of its 213 locations along the East Coast. This new service is aimed at Members who prefer to shop online, but favor the convenience and immediacy of in-club pick up. Grocery Shopping and Delivery Service Company Expands To Nashville WeGoShop.com continues to expand its grocery shopping and delivery service, now to include Nashville and surrounding areas. Associate Owner Adrienne Lovett will oversee the local operations.

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