The Shelby Report recently checked in with Lindsey Kueffner, executive director of the Carolinas Food Industry Council, to learn about the key issues poised to impact the region in the coming months.
The populations of North Carolina and South Carolina continue to grow. With that, so does the number of grocery stores. Most food retailers are keeping pace with population growth and entering communities with new housing developments, rather than opening stores in areas that have reached saturation, according to Kueffner.
“Many of the people that move here are from different regions of the country and therefore they don’t have pre-existing loyalty to any one store,” she said. “Retailers looking to build their customer base are finding those folks are fair game.”
Describing the market as “incredibly diverse,” Kueffner noted the best-in-class grocery retailers in the region are the ones that listen to their customers and lean into what they want.
“Depending on the retailer and the community, serving different products or services can really help move the needle,” she said.
Kueffner listed several examples of that differentiation, ranging from a well-supplied grab-and-go section and cashiers who seem to know everyone in the community to stocking different international products and offering premium online shopping and fulfillment.
“Grinding their own sausage in-store or even a great check-cashing service can really help a retailer differentiate themselves from the competition,” she said.
In addition, retailers in the region remain steadfast in their commitment to support charitable causes in North and South Carolina. According to the CFIC, grocers are the single biggest contributors to food banks and give back to schools, little leagues and other charities through in-kind contributions and financial support.
Local continues to be a huge emphasis for the CFIC, whose board of directors recently created a Carolinas Supplier of the Year Award. In addition to recognizing a national supplier (this year, Chobani was selected), the board chose Effingham, South Carolina-based McCall Farms as the first recipient of the Carolinas Supplier of the Year.
Legislative news
First among the legislative news she noted was the work the council is doing to enable ready-to-drink cocktails to be sold in North Carolina grocery stores.
“Because our liquor system is under the control of local ABC boards, many in the legislature think that allowing RTDs in grocery stores is the camel’s nose under the tent that would lead to privatization. This is one of two areas where the adult beverage category is growing and retailers are missing out on being able to capture this segment,” Kueffner said.
The other area of growth for the adult beverage category is hemp/CBD-based beverages. However, Kueffner said state and federal laws are not clear on whether these products can legally be sold in grocery stores.
“This is another area that we are pursuing, as the industry continues to innovate, and the law hasn’t kept pace,” she explained.
Next, Kueffner pointed out a new legal development regarding split case fees. Calling it a “major win,” she said a Wake County Superior Court judge ruled that the fee – in either a per bottle or per case form – is an illegal quantity discount under the North Carolina ABC Commission’s Administrative rules. The judge “granted the relief sought by the retailers and denied the relief sought by the wholesalers.”
[RELATED: Taste Of The Southeast: Why The Grocery Landscape Stands Out In This Area]
Big political year
Politically, the Carolinas are far more different than their shared name would suggest. As a swing state, Kueffner said there is a tremendous amount of attention being focused on North Carolina and a substantial amount of money being spent at the top of the ticket.
“This tends to drown out other important races, like the Council of State, judicial and state legislative races, which can be just as important to a grocer’s operations and bottom line … [and all] are up for re-election this year. While there is a Republican supermajority in both chambers, plenty of voters split their ticket in this state,” she said.
Conversely, Kueffner noted South Carolina is decidedly not a swing state.
“It has strong Republican supermajorities in both chambers and only one of seven members of Congress is a Democrat … and there is no U.S. Senate race or race for governor or other cabinet positions,” she said.
As both states’ legislatures gear up for their respective sessions in January, Kueffner emphasized that CFIC’s team will be in Raleigh, North Carolina, and Columbia, South Carolina, from day one, representing the interests of this industry.
