“Each of us were able to bring something different to the table – the things that worked and those that didn’t – so we were able to learn a lot from one another. It made us all more efficient,” said Violette, who also serves on ROFDA’s board.

Nearly two years into the pandemic, he sees the topics of these calls shifting away from safety protocols and moving toward supply chain challenges such as inventory levels and driver shortages. 

When it comes to the possibility of inviting independent retailers to participate in the ROFDA conference, Violette sees it as a great opportunity to collaborate on a new level.

“The share groups have always been an integral part of ROFDA, so we’re excited to include our retailers within that network, too,” he said. “This will give them insight into what others are doing across the country, as well as provide a support system of sorts as they move forward.” 

In discussing the supply chain disruptions among members, Violette views it as a way to better gauge their severity and implications.  

“Even though we’re in the same industry and face many of the same obstacles, they can often be to varying degrees,” he said. “It’s helpful to talk these through with each other because then we get to hear real-life anecdotes as opposed to simply assuming what may be going on elsewhere.” 

In explaining the value of ROFDA programs, Violette referenced the power of the collective. 

“Aggregating our resources and purchasing power makes us considerably stronger as a whole than we would be as individuals,” he said. “Not only does it give us a financial advantage, but the wealth of knowledge and shared experiences that go hand-in-hand with it is truly priceless.

“These programs save money for our retailers, too, whether it be through special promotions or purchase incentives themselves. By working together, it helps all of us grow sales.”

For more information, visit rofda.com.

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Board member Michael Violette, president and CEO of AG New England, praised the value of ROFDA’s share groups, which represent various departments from each wholesaler within the organization. Among them are finance, human resources, information technology, marketing/advertising/retail, services/business development, operations, perishables and procurement.

Fellow board member Ray Sprinkle, president and CEO of URM Stores in Spokane, Washington, was equally effusive of the groups. 

“When I had the opportunity to visit with our senior management team and have the ability to attend these types of meetings, they come back charged up with a list of new items that somebody is doing somewhere in the country, or has triggered a thought maybe we ought to be doing something different,” he said. 

Bob Obray, a ROFDA board member and CEO of Salt Lake City-based Associated Food Stores, spoke to the importance of relationships for continued success. “We have these peer relationships. We have relationships with all of you. And that’s really a significant part of the presence of ROFDA,” he said. “So how can we expand that? 

“How can we take something that’s already good and make it better – whether it’s learning about our industry, learning about challenges that we face together, learning about how we can serve our retail customers better? That’s a great opportunity for us.”

ROFDA’s directors envision being more inclusive, which likely will mean getting independent retailers involved. 

“The first word to who we are is retail. I’ve always felt that retailers should be part of what we do, should be part of this conference,” said board member Randy Arceneaux, president and CEO of Affiliated Foods Inc. and Amarillo, Texas. “Because at the end of the day, our whole focus is helping the retailer survive in this marketplace.” 

Board member Amy Niemetscheck, president and CEO of Madison, Wisconsin-based CERTCO Inc., noted that ROFDA vets its sponsors, providing an exclusive feeling to members. “We want to try and not bring in your closest competitor once you’re in the circle, the ROFDA family,” she said. 

Turning to supplier partners, Arceneux said the No. 1 expectation is opportunity, specifically having a seat at the table. “That’s what I’ve always felt at these conferences is that you want to be heard, you want an opportunity to be heard,” he said. “And I think at the same time, you do want to build relationships with everyone. 

“We keep talking about relationships and family. Well, that’s the truth. That’s really who we are.”

Obray added that share groups plan to start meeting more frequently by phone and visiting each other’s facilities. 

“But [it’s us] as the CEOs who really have to push that engagement and make sure that it doesn’t stop,” he said. “I can look at our team over there and I know they’re not going to stop. I know they’re going to be committed and engaged in the process.

Violette said leadership needs to know if “we’re not providing them with the resources. I think a big part of our jobs as CEOs is getting the right people together and giving them the resources that they need to make things happen.”

Sprinkle described ROFDA’s future as bright. “We need to advocate, we need to face ROFDA to make sure that we are meeting not only the needs of the independent retailers, our associates, but also our member warehouses,” he said.

For more information, visit rofda.com.

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“It’s there that we find ways to tackle common problems that we have in our industry and our respective businesses, and we can learn from each other instead of each organization working on the same issues independently. We also have transparency between our companies and our groups. Our leadership teams are all very close to each other,” Smith said.

“And they feel comfortable reaching out to their peers that are facing those same challenges. That collectively helps each of our companies, as the relationships have become a real force multiplier.”

Smith thinks ROFDA has been relatively successful in establishing collaboration between the wholesaler companies within ROFDA and vendor and supplier partners that work with them. But he said there is still room for improvement.

“What we haven’t done yet, is we haven’t combined that share group and joint problem-solving process,” Smith said. “So the opportunity is with establishing meaningful interaction, collaboration and joint problem-solving that involves vendors and suppliers as true partners in the process.

“When we come together at ROFDA, our efforts have been around share groups, which was one-to-one interaction between the cooperatives. And we made connections with the vendors and suppliers.”

But Smith went on to say there needs to be collaboration toward problem-solving and peer learning among cooperatives, vendors and suppliers. ROFDA plans to expand this and intends to use it as an accelerator to add value to all ROFDA companies and RAC (ROFDA Advisory Council) members and all of their associates involved.

Historically, wholesale food cooperatives have been the only wholesale members participating in ROFDA. But Smith sees many innovative wholesalers across the country that are also philosophically aligned with ROFDA member companies and prioritize being the best supply source they can be for independent grocers.

“And since we’re all in the roles to support and help the independent grow and prosper, we believe that there are also companies that haven’t formally been a part of ROFDA that can join with us that share the same common purpose,” he said. “And we think that has some value and can add some perpetuity to our purpose through ROFDA.”

Thoughts on new president

Smith sees many benefits with bringing on a president, Jeff Pedersen, who will be able to dedicate his full time to the interests of ROFDA. 

“I think that our supplier companies participating in ROFDA, especially the RAC group and the supplier vendor partners, all have a strong desire to have someone that represents ROFDA that they can go to on a day-to-day basis that represents ROFDA and understands our collective needs,” he said.

“That’ll help bring us together as a more focused and successful organization of companies with a common purpose. Our new CEO clearly understands our businesses, as he has decades of experience in it and the challenges and needs of those we serve and has a heart for serving the independent grocer. He also has a proven track record of being able to bring together companies that, in many ways, compete with each other, to focus on achieving the common good.”

In discussing how this role plays into relationships with the vendor community, having a single point of contact will facilitate the start of new and more meaningful dialogues. “The CPG companies, the vendors, suppliers and service providers – they’re looking for a way to engage with the independent sector,” Smith said.

“In this post-COVID world, supplier companies see that independent’s market share and appeal is on the rise, so they are anxious to engage and work on win-win strategies to grow within this important sector. And since the ROFDA group is solely focused on the independent, they want to figure out how they can align their programs and become the provider of choice for those independents with those associated companies. Our role is to vet those companies to find the ones that we know are reliable and provide good products and good services.

“As it’s challenging to try to reach out to all the different ROFDA companies individually, having that leader for ROFDA gives them a single point of contact that brings that group together and starts to establish that dialogue to build and develop those strategic alignments between those companies and providers.”

Where ROFDA is today

“I think early on, for many of us in this generation of ROFDA members, there was some level of frustration over the lack of progress from procurement initiatives. I think there was a widely held belief that we should buy together, I mean, physically buying truckloads of a product together,” Smith said. 

“I don’t think that the vendors ever believed it, but somehow we as the wholesalers thought that. And at the end of the day, it proved out that it just wasn’t feasible. It didn’t make sense. The timing and the different needs and tastes – just didn’t work. There were no real opportunities to centralize procurement activities across our companies.”

Sitting down with RAC this year, it became more apparent to ROFDA wholesalers that they needed to do more of what they were good at, building out more capacities around sharing helping independent retailers, vendors and supplier partners to achieve a common purpose.

“We also thought that this exclusive nature of being limited to cooperatives only also was holding us back from being able to achieve more,” Smith said. “I think that it gave us a better calibration around what our key objectives should be. Since it now feels like these are things that we are highly competent in accomplishing, I think members all feel better about our purpose.”

For more information, visit rofda.com.

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Pope was part of the first executive staff that ROFDA hired in 1990. Through the three presidencies since then, she has always been in the mix. 

“My responsibilities have changed multiple times over the years and those various experiences have been invaluable in preparing me for today’s ROFDA,” she said. 

David Smith, board member, praised Pope’s dedication. 

“Over the past two years, Teresa has been the glue that held ROFDA together as an organization as she effectively managed all operational aspects of the day-to-day as well as our conferences and meetings – an incredible feat,” he said. “The future of ROFDA is bright due to the incredible combination of Teresa’s experience and knowledge and Jeff Pedersen’s passion and leadership.”

Asked how she’s been able to maintain operations during the president vacancy, Pope said “with a lot of prayer and hard work.”

“ROFDA’s chairman of the board changes every two years. I have depended on the sitting chair for direction and guidance,” Pope said. “There’s been two since we’ve been without a president and both have been great and gracious with their time. The entire ROFDA board of directors have been very supportive, and I’m grateful to them all.”  

Amy Niemetscheck, board member, marveled at Pope’s versatility. 

“I have seen a few people over the course of my career who I admire because they can wear multiple hats and do it well. Teresa is one of those few people, wow,” she said. 

“From working on the virtual conferences with the planning committee during the height of COVID, to watching and monitoring our ROFDA programs, to planning the live conference this past fall. She moves from a bookkeeper to an event planner, to a marketing guru, to a facilitator seamlessly. Teresa, you amaze the board with your passion for this organization, and we know you will continue to do so. We are so lucky to have you.”

In reflecting on the past two years, Pope said each ROFDA member took on a certain responsibility for the organization’s different initiatives.  

“I served as the administrative ‘hub’ and would involve the member who was assigned to a particular task,” she said. “It was hugely comforting to know members were available when uncertainty existed while navigating day-to-day activities. I wish to express my appreciation to them all.”

 During the early stages of COVID, conferences were virtual and the board formed a conference planning team. 

“Going virtual was a new endeavor for everyone. To meet the challenge, I had an awesome team of five people (employed with two of our members) who were focused and ready for the mission,” Pope said. “In addition to their ‘paying jobs,’ they worked diligently to ensure ROFDA did not skip a beat.”

Board member Mike Violette described Pope as “the rock of ROFDA.” 

“As the organization has evolved, she remains to be the one constant,” he said. “She worked extremely closely with the conference planning committee and the entire board during these last two years to keep ROFDA strong – amidst a pandemic no less – hosting two very successful virtual conferences and our most recent in-person event in Alabama. 

“Teresa’s handled every change with grace and positivity, and we look forward to her continued support and guidance through this next chapter.”

Pope is excited to have Jeff Pedersen on board as the new president.

“I look forward to the ‘next chapter’ under his leadership,” she said. “Jeff is familiar with ROFDA and its mission from his employment with AWG. I firmly believe we will get stronger with Jeff at the reins. Exciting times are here.”

Pope enjoys spending her free time with family. She has three grandsons and will be welcoming a fourth in May. “My two adult children and their spouses, and soon to be four grandsons, keep me pretty busy. I do enjoy a good hike, Alabama football and softball and the Atlanta Braves,” she said.

For more information, visit rofda.com.

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“Across the industry, whether it’s with other cooperative members or vendors, service providers…it’s about relationships. And I think this kind of reinvention, revitalization, whatever you want to call it, ROFDA gives us an opportunity to expand and extend that philosophy of deeper relationships, supporting each other in a more aligned and organized way.”

In the last five years, Obray has seen ROFDA reach its mission by creating a forum where members can share ideas, direction, solutions and innovations. Obray is the president and CEO of Associated Food Stores, based in Salt Lake City, Utah. 

“The cooperative companies that currently comprise ROFDA, I think that’s the future,” he said. “It’s building upon something that’s already proven. It’s already good and making it even better, and then probably even adapting it to a changing environment. We’ve historically focused on a lot of supply-type issues – cost of goods and product selection – the tangible part of our business.”

Obray has seen the non-tangible components of the grocery business becoming more important in the past several years, such as connections with customers, e-commerce, loyalty programs and digital advertising. 

“If we can take ROFDA to not just being focused on product but making ROFDA help us become better at those connections and interactions with our retail customers, we can remain relevant,” he said. 

Obray is interested by the fact that ROFDA members are all at different levels and sectors of the grocery industry, which helps with the variety of share groups. ROFDA currently has share groups for: finance; human resources; information technology; marketing/advertising/retail services/business development; operations; perishables; and procurement.

“Some are more focused on center store supply, others are focused on fresh, and there’s always something that somebody is doing better. It gives us an opportunity to share innovative solutions,” Obray said. “I grew up in the finance share group – my previous position was CFO. We always had good interactions there, trying to develop some things that we could work on together.”

With supply and labor continuing to be a challenge for grocers, Obray feels ROFDA has excelled in working with share groups and other connections to consult and collaborate on everyday issues. 

“That’s the biggest benefit to me of ROFDA – just having a group of companies out there that we can bounce ideas off of, that we can learn from, that we can share with, that we can build upon concepts together to make them better,” he said. 

He’s also excited for share groups meeting more often. Obray thinks part of that effectiveness is going to be conditioned upon having the right people.

“The people who are really the subject matter experts, the ones that are making the decisions and the ones that will benefit directly from being involved, I’m excited about their participation in the share groups,” he said.

Growing and being more inclusive to wholesalers that aren’t retailer owned gets him excited as well. 

“The more perspectives, opinions, views, solutions, innovative contributions we can get the better. And we kind of limited ROFDA to retailer owned…there’s some large wholesalers out there that are not retailer owned who are challenged by some of the same things we’re challenged with,” he said. 

“Let’s bring them to the table because they’ve probably got some things to share and some things to gain from the interaction…and let’s make it even more appealing for vendors and service providers to come. Because they know there’s a broader variety of wholesalers there who they can interface with and connect with…to me, that’s a no brainer.”

For more information, visit afstores.com.

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With a new president and CEO at ROFDA and a drive to bring change, ROFDA board member Randy Arceneaux, who is also president and CEO of Affiliated Foods in Amarillo, Texas, is delighted for what’s ahead. 

“We as a board and the ROFDA Advisory Council team will all be 100 percent committed to the revival of ROFDA moving forward,” Arceneaux said. “Having a president back at the helm will set us up for the stability I think our members and partners are looking for.”

[In January], ROFDA announced the addition of AWG veteran executive Jeff Pederson as its new president.

Arceneaux is looking forward to returning to in-person conferences, as well as having retailers represented from prospective warehouses. He recommends that retailers who attend the ROFDA show should take this chance to share information and programs. “For our retailers, this is an opportunity to be with other co-op retailers that all have an understanding of our mission as a team,” he said. 

Looking back on 2021, Arceneaux said the most valuable thing he gained from ROFDA was the share groups. 

“As our share groups grow and develop personal relationships between the groups – they are really bringing great ideas and ways for us to work together and actually get things done as a group and not just meet,” he said. 

Share groups also will offer an opportunity to strategize on supply chain disruptions and labor force shortages. 

“As our teams on share groups come together, working and sharing ways to work with the vendor community, we are finding solutions that will benefit all of us in the future,” he said. 

E-commerce continues to be a talking point for the future of the grocery industry, and Arceneaux sees this as a focus trend for ROFDA.

“All of us are working on e-commerce platforms, and I think a major focus is the work our procurement team is working together to partner with our vendor partners to develop go-forward opportunities as we all continue to deal with supply chain issues and how we can all come together to find solutions,” he said. 

Arceneaux served as chairman of ROFDA’s board of directors from 2017-19.

“At that time, we were looking at being something much different than where we are now going. My challenge was to unwind ROFDA as we knew it at that time, and now we have made a full circle to building back ROFDA, which would be more fun to do.”

Arceneaux expressed his confidence in Ray Sprinkle taking over as chairman. 

“Ray and I go way back in our careers. Ray has always been a great leader in all roles he has been in,” he said. “Being chairman of ROFDA is no different for Ray. He is the right person at the right time for us to move forward with new direction.”

For more information, visit rofda.com.

For more stories from The Shelby Report, click here.

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This donation was procured through the sponsorships of each company attending ROFDA’s first virtual conference this past November.

ROFDA is an organization built on integrity, unity and strength and these values are ever-present throughout all aspects of operation. ROFDA’s fall conference was certainly different, but it provided a streamlined program offering direct interaction with ROFDA’s CEOs, a live Q&A-style update from the ROFDA Advisory Council (RAC) and a new opportunity to speak openly with its seven share groups.

These groups consist of executive-level representatives from each ROFDA house that work directly within a respective field (i.e. procurement, retail operations, etc.), allowing each attendee to maximize value and efficiency in delivering their message to the right people.

The heart of ROFDA has always been its relationships and thus it is vital to keep the existing lines of communication and collaboration open as well as establish new ones. ROFDA’s planning team has worked diligently to incorporate as much one-on-one interaction within the virtual format of the new world, including a Zoom cocktail party where the ROFDA family was able to connect in a more informal manner post-meetings. Overall, the conference surpassed all expectations and proved to be a success, solidifying ROFDA’s resilience and adaptability.

The Spring Virtual Conference is scheduled for May 12-13. It will be a very similar format as last November, but with some additional surprises. Save-the-dates have been emailed and more details will be coming soon, via email and on the web portal (rofda.com).

ROFDA was established in 1962 by a group of retailer-owned distributors referred to then as Southeastern Food Cooperative Associates (SFCA). Today, ROFDA operates across the United States as a cooperative and serves its Members and Associates through a shared purpose and mission.

The American Red Cross prevents and alleviates human suffering in the face of emergencies by mobilizing the power of volunteers and the generosity of donors.​

ROFDA Chairman David Bullard recently talked to The Shelby Report about what 2021 may hold for independent grocers. See story, here.

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by Mary Margaret Stewart, staff writer 

With 2021 in full swing, ROFDA Chairman David Bullard said the association’s membership has expressed three major concerns.

“One is the labor problem. Finding enough quality workers with a good work ethic gets harder and harder to do. Labor challenges are consistent from one end of the supply chain to the other,” Bullard explained.

“Next, is the continued shortage of product from manufacturers. Consumer demand has greatly increased during the pandemic while the supply chain has been tremendously challenged.  Though it has improved, continued shortage of product keeps us from meeting those demands.

“Additionally, the ROFDA members acknowledge that in many cases the largest chains get priority in fulfillment, at the expense of the cooperatives. We all fully support the work done by NGA in moving forward with anti-trust efforts to rectify this problem.

“Finally, though we may see the light at the end of the pandemic tunnel, we are still in the midst of it. Many states are at record highs of positive cases, even while the vaccine is beginning to be distributed. Thus, the uncertainty that comes with the pandemic will continue to be present well into 2021.”

However, Bullard pointed to an under-reported challenge that grocers are facing.

“When the pandemic hit us initially, the importance of the local grocer became magnified,” he said. “They, and others in the supply chain, were recognized as “essential” workers. They were given a lot of credit that they deserved.

“As time has passed, less attention has been paid to the grocery store associate. You hear less and less about them being ‘essential’ workers. They should be recognized as ‘frontline workers’ and put in one of the higher priority tiers for the vaccine.”

And with COVID cases rising, Bullard said many more operators are recognizing what will stick around in 2021.

“They realize that if they do not embrace the realities of online shopping, pickup and delivery, they will be left behind,” he said.

“Additionally, you will continue to see acceleration in the importance of the perishable departments and the store’s perimeter. Though grocery items have been hard to get, produce and meat supply has held up really well. Independents have performed much better than the larger chains in these areas.

“As more people have become accustomed to eating at home, it is the perishable areas that will mark the success of the store. It is these areas that the independent grocer has always differentiated itself from the larger chains, and they should certainly be able to continue to do so.”

So what’s the biggest takeaway to date from the pandemic? It all comes back to independents, Bullard said.

“I believe the legacy of the pandemic in our industry will be the spirit and dedication shown by our independent retailers and their associates,” he said. “They have stood tall and met the challenges of the pandemic.

“Independents are about community. They have served their communities very, very well. They have demonstrated how important they are in their communities. I also believe their efforts will build customer loyalty that will serve them well for many years into the future.”

Organization’s work stands tall

ROFDA is a group of members, associates and suppliers dedicated to helping each other and independent retail grocers achieve advantages, growth and success. And ROFDA did just that throughout 2020.

“The board members of ROFDA have communicated more than ever, and shared information with each other that has helped us serve our retailers during the pandemic,” Bullard said.

“ROFDA has become a leaner, more efficient organization. We were very pleased with the Virtual ROFDA Conference held recently. It proved to be an effective and efficient way to bring value to both our associates, as well as our warehouses. We plan on another virtual conference in the spring and then we hope to have an in-person conference in the fall.

“We have markedly improved the participation of our share groups. They are meeting virtually every quarter to share information and to bring opportunities to our retailers.”

Associated Food Stores CEO Bob O’Bray is the newest ROFDA board member, effective Dec. 31, filling the vacancy created by the retirement of Neal Berube. But while he is new to his current positions, O’Bray has been with Associated since 2004 as well as affiliated with ROFDA for several years.

“I really, strongly believe in ROFDA…what it means, what its mission is, how it brings us together as cooperatives, as grocers throughout the United States, how it gives us a platform to share, to collaborate, to aggregate, to learn from each other, to associate,” O’Bray said.

“Probably what makes me the most excited is the opportunity to work more closely with great men and women throughout our industry – both other CEOs, other executives from companies that are members of ROFDA, but also the vendors and service providers that support us through ROFDA. Just to be able to deepen relationships and, hopefully, make a bigger impact on our cause, our mission, our purpose.”

And this mission, as Bullard has pointed to, has proven essential amidst the ever-present pandemic.

“Some of [independents’] best sources of learning, of improvement, of knowledge gaining, come from other companies like ROFDA. We’re essentially traveling down the same roads, maybe just a different geography,” O’Bray said.

“If there are things that we’re doing that are similar, let’s share best practices. Let’s share successes and failures. Let’s collaborate to the extent we can. Let’s share resources. Let’s bind together and be stronger and more united.

“It’s usually through a crisis or struggle, when you’re working with somebody, you strengthen relationships, maybe your vulnerabilities are exposed a little bit, you get to know each other better in a different way. Hopefully, that’s how it occurred. I think that will have a lasting impact on our relationships.”

And to put 2021 in greater context, O’Bray also hopes ROFDA’s work can help to move the nation out of a discordant time.

“We’re fortunate to live in a great country, and I think the division that exists right now is having an effect on us. But if we change our perspective and find some positive out there, some things that can bring us together and give us hope for a better future, we’re all going to be better,” he said.

“And that’s my hope, as a leader in the industry, is that we can be a bright spot. We can be positive.”

The post Labor, Product Shortages And Uncertainty Among Top Concerns for ROFDA appeared first on Shelby Report.

As far as Randy Arceneaux is concerned, Affiliated Foods Inc. of Amarillo’s retail partners have been the frontline heroes throughout the coronavirus pandemic.

“They are taking care of feeding America,” said Arceneaux, the company’s president and CEO. “All of the protocols they had to put in place in order to even begin to service the consumer was an astronomical feat in itself, not to mention seeing 40 and 50 percent increases in volume overnight.

“The way the independent operator came to the table, the way they took the task at hand and outperformed beyond expectations, I think is something to be very proud of.”

And some of the changes that the industry at large has had to make could very well be permanent, according to Arceneaux. He foresees SKU rationalization taking place at retail, starting with the manufacturers.

“Kraft has discontinued over 120 SKUs of product that they’re no longer going to produce,” he said. “And during this whole pandemic, there was a lack of being able to produce everything that the consumer wanted because of the incredible high demand for product.

“As the old saying goes, as the cream rises to the top, so the items that sold the most still continue to be the 80/20 rule – 20 percent of the items do 80 percent of the business.”

And a behind-the-scenes glance into the supply chain for wholesalers like AFI can be grim, always in an allocation battle.

“We are still challenged with certain CPG companies today…trying to fight for our fair share of product allocation, even to this day,” Arceneaux said. “Like many other wholesalers, we feel that some of the bigger box operators and retailers in this country may have gotten an allocation process more beneficial to their operations than to the ones we’re receiving.”

And that’s not something new. Arceneaux said that there’s unfairness among different classes of trade. His hope, though, is that COVID-19 has shed light on some of the issues with some CPG companies’ go-to-market strategy.

“For the last 10 years, all CPG companies in this country have gone through consolidation, meaning they may have closed two plants and consolidated volume into three when they had five – for efficiency and profitability,” he said.

“When all of these CPG companies start going in that area, and you get a pandemic that hits…no matter what you do, you can never get caught up. And then most of those companies had a COVID outbreak in the production line and had to shut down for seven to 10 days, and they were put in even in more of a tailspin.”

Nonetheless, AFI members had an advantage over other stores, especially chains, when it came to stock. When the pandemic first hit, milk and bread were flying off of shelves everywhere. But AFI customers “never missed a beat on milk and bread.”

“We have our own bakery and own dairy, so we just ramped up production on bread and milk to where our customers had bread and milk when many of their competitors had none on the shelf. That was definitely an advantage,” Arceneaux said.

“In milk alone, we had a 40 percent increase in production to administer within a week, and we were able to do that. In that first week, we produced over a million gallons of milk. It was an ace card for us to have in our deck, no doubt – for our membership to get critical key items in a shortage throughout the country.”

And when another shortage rolled around in the meat industry, AFI was again set to serve its retailers.

“We have our own meatpacking plant, and we were able to fill the gap for our customers,” he said. “Again, when you have an uptick of a 40 percent increase in a retail store, your meat department folks have a hard time keeping the case full and keeping on top of the demand.

“As a case-ready program, we allow our customers to order case-ready product from us and fill their rack in the morning…to keep ahead of the curve throughout the day and keep their case full.”

On the wholesaler side, AFI directly responded to the demand that was felt in its retailers’ stores, with business going up by 40 percent in one week, which proved difficult.

“At the beginning, our folks in the warehouse – our order selectors, our loaders – they were working 18-hour days for two weeks, trying to get ahead of the curve on all this extra volume,” Arceneaux said.

And like all wholesalers, it had to place allocations on items, but one thing implemented was partnerships with other third-party carriers.

“Our third-party carrier that we’re teamed up with went above and beyond and got some other carriers…we were able to hire these other third-party guys and get some additional trucks to be able to haul loads.”

All in all, Arceneaux can say with pride that AFI is coming out of the pandemic with stronger relationships.

“In a pandemic, it really made you realize that it’s all for one. We all got to come together as one.”

Coming together was something that Arceneaux has been able to do with his peers on the ROFDA board, too, to talk through what they were dealing with.

“We had twice-a-week conference calls that drew us together closer, especially in the cooperative world, because we were all living in the same situation,” he said. “I will tell you that helped us to build an even closer bond, working together.”

In Arceneaux’s eyes, some of the good that came from the virus was found in looking at people “as people, not retailers.”

“When was the last time you saw families eat dinner together and playing with their kids in the yard? When was the last time everybody really focused on family?” he asked.

“I think that’s the same way the consumers looked at our independent operators, especially in these rural communities. They stayed open, and they did everything they could to keep their people safe and healthy inside the store…making the relationship with the supermarket guy even closer.”

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Across the landscape of 2020 – COVID and all – Manard Lagasse Jr. is proudest of retailers’ consistent approach to business through such a difficult time.

“We’re in a lot of small communities, and their customers rely on their local grocery stores. Our retailers did everything they could to service the needs of their customers,” he said.

Associated Grocers provides resources and support for more than 200 independent grocers in Louisiana, Mississippi and Texas. But as Lagasse, the president and CEO points out, there was a surge throughout the entire grocery segment.

While the supply chain hasn’t been in the best shape, these grocers have handled things well, attributing their job well-done to independents’ “ability to move much more quickly in those situations,” in comparison with big chains.

And on the wholesaler side of things, Lagasse acknowledged how smoothly AGBR navigated the pandemic, too.

“We were very, very fortunate that our workforce remained healthy, and they did an outstanding job,” he said. “The team rallied together to do an exceptional job to service the needs of our independent retailers. It was amazing – it really was.

“We had the majority of our field team, plus additional employees out in the stores helping to get things done, which is something that we’re still doing…We’re very service-oriented, and we’ll continue to be that way.”

When it comes to predictions for what the “new normal” will be, Lagasse foresees that there likely will be some permanent changes in the industry, whether that’s the production of products or company protocol – “everybody’s going to have to reassess how it all works,” he said.

“The variety won’t be there because some of the companies have had to focus on their better sellers to make sure they can meet the demand,” he said. “And I think there’s going to continue to be some reduction in SKUs.

Weather is a component of safety, too, which has been thrown into the mix with coronavirus this fall.

“With the climate these days, it has been interesting, to say the least,” Lagasse said. “And, unfortunately, we’ve had to deal with multiple storms this hurricane season. We certainly hope that this year ends quietly…but living in South Louisiana, we do have to deal with hurricanes.

“We have a tremendous amount of experience,” he said. “We do have retailers who unfortunately have issues after storms, and we do everything we can to help them to get back on their feet as quickly as possible, but we are dealing with Mother Nature, and sometimes things do happen.”

As for his vision for AGBR over the next five years, Lagasse strives to ensure that the wholesaler is providing retailers with all of the tools and technologies they need to compete. Or in other words, “Take the burden off of them – we want to be more of a partner than we do a distributor,” he said.

Another partner of AGBR is ROFDA, and Lagasse recently joined the ROFDA board as one of its eight CEOs, which proved helpful during the unprecedented nature of 2020.

“ROFDA is a good group to work with, and they really do some outstanding things,” he said. “And quite frankly, the leadership on the ROFDA board is top notch.”

And top-notch leadership is exactly how Lagasse with AGBR navigated the pandemic. He banded together with his peers on the board to capitalize on all of their industry knowledge and efficiently handle situations that arose.

But it all comes back to the people on the ground for Lagasse.

“I think for me personally, the most important CEO perspective is, personally, I’m so thankful for the dedication and commitment from our employees to continue to deliver the services that we provide,” he said. “It’s more than just getting groceries to a retailer.

“From a grocery store standpoint, we will continue to see growth. I am optimistic. I believe there is a good future ahead for the independent grocer.”

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