recognizing excellence in the grocery business mi pueblo,...

9
18 • Progressive Grocer • January/February 2009 AHEAD OF WHAT’S NEXT www.progressivegrocer.com Up with people I ’m not in the grocery busi- ness, I’m in the people busi- ness,” says Juvenal Chavez, founder, chairman, and c.e.o. of Mi Pueblo, the 10-store His- panic independent grocer named PROGRESSIVE GRO- CERS Outstanding Commu- nity-Based Retailer. To be sure, Chavez knows how to suc- ceed in the grocery busi- ness; his San Jose, Calif.- based company outperforms his mainstream com- petitors in markets primarily made up of Mexican immigrants. Outstanding Independents Awards Recognizing excellence in the grocery business Mi Pueblo, Roundy’s, and Bozzuto’s harness the human element, both inside their organizations and out in the market, to stay successful in the current climate.

Upload: others

Post on 26-May-2020

1 views

Category:

Documents


0 download

TRANSCRIPT

Page 1: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

18 • Progressive Grocer • January/February 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com

Upwithpeople

I’m not in thegrocery busi-ness, I’m in thepeople busi-ness,” says

Juvenal Chavez, founder,chairman, and c.e.o. of MiPueblo, the 10-store His-panic independent grocernamed PROGRESSIVE GRO-CER’S Outstanding Commu-nity-Based Retailer. To be sure,Chavez knows how to suc-ceed in the grocery busi-ness; his San Jose, Calif.-based companyoutperforms hismainstream com-petitors in marketsprimarily madeup of Mexicanimmigrants.

Outstanding Independents AwardsRecognizing excellence in the grocery business

Mi Pueblo, Roundy’s, and Bozzuto’sharness the human element,

both inside their organizationsand out in the market,

to stay successful in the current climate.

Page 2: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

But like the top managers at PG’sother award winners—OutstandingRegional Retailer Roundy’s and Out-standing Wholesaler Bozzuto’s—Chavez realizes that even in a busi-ness such as grocery, driven in somany ways by the movement ofgoods as efficiently as possible,human assets matter most ofall. These operators have foundsuccess because each in its ownway cultivates and harnesses tal-ent internally, to build therelationships with cus-tomers that are critical forwithstanding times ofeconomic hardship.

“First of all, youhave to value andrespect the shoppers, andrecognize them first as peo-ple before recognizing themas potential customers,”explains Chavez. “A cus-tomer is just a number, a cus-tomer is just a transaction; butbehind that transaction is aface, a body, a soul. It is some-one who is very unique and whowants to be recognized for whohe or she is. That is whatwe are trying to do

here at Mi Pueblo, so everything hasto take that into account, to makesure we create the right environmentfor that important person who comesinto the store, so that he or she feelsthat they are in their environment.

Once they feel that way, they cancontinue with their shopping.”

For Robert Mariano, thechairman and c.e.o. atRoundy’s, the key strategy

has been to fosterthroughout hisorganization a one-customer-at-a-timementality. Forhim, it starts witha crack seniorm a n a g e m e n tteam, one he haspieced together

since taking controlof the company in

2002.“The ability to

assemble and movedirectionally into ashared vision, to pro-duce the types of resultswe’ve been able toachieve, is really a com-

pliment to all of

them,” says the c.e.o. of his team.“And I think what’s helping us getthere is our ability to function as a

strong, powerful merchant andoperating team,” with a collectivefocus “on a customer-centric mar-keting strategy. We have begun agreat deal of infrastructure workwithin the organization to help ourmerchandising and operations teamsfocus on specific groups of cus-tomers. And we believe we will getmuch better at it over time. It’s notsomething that can be done quickly.It’s a fairly long-term point of viewof developing and growing our busi-ness.”

At Bozzuto’s, the family-ownedwholesaler’s compassionate approachto customers, employees, and thesurrounding communities it serves

is the lasting legacy of its founder,Adam J. Bozzuto, whose vaunted“human touch” has resulted in many

loyal, long-term professional associ-ations—and a thriving business.

Notes company s.v.p. SteveHeggelke, “The culture of the Boz-zuto’s organization is rock-solid. Anda big piece of that culture is relation-ships and the personal attention weprovide. It makes us different fromeveryone else. It’s sincere, and it’s notin any way fake.”

Adds Michael Bozzuto, Adam’sson: “His values are what continueto drive the organization. His caringand understanding for people andretail, his commitment to aggrega-tion to achieve better costs for retail-ers—we continue to preach hisphilosophies every day.”

www.progressivegrocer.com A H E A D O F W H AT ’ S N E X T Progressive Grocer • January/February 2009 • 19

The three companies honored this year by PROGRESSIVE GROCER with OutstandingIndependents Awards—Mi Pueblo, Roundy’s, and Bozzuto’s—all have in common a corporate culture that puts people first.

Page 3: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

By Joseph Tarnowski

“I’m not in the grocery business,I’m in the people business,” saysJuvenal Chavez, founder, chair-man, and c.e.o. of Mi Pueblo.Chavez is at the head of a 10-

store, San Jose, Calif.-based Hispanic independentgrocer that outperforms his mainstream competi-tors in markets primarily made up of Mexicanimmigrants. But if you ask him what his core mis-sion is, it hardly even sounds like he runs a super-market business. Chavez says his stock in trade is losvalores de la familia (“family values”), “to helpfamilies continue forward with the tradi-tions and the values of the family thatwe bring here to this country.”

The retail connection is that, for themost part, these family values are learnedand passed on at the dining table, and agood Hispanic grocer plays a key rolein filling up that table with great, authen-tic food, and making shopping for thatfood a satisfying and welcoming experience.

Chavez and his management team have thenuts and bolts of merchandising to Hispanics ofMexican heritage down cold. (For more detail onthose nuts and bolts, see the case study on page 92.)

“It happens in a very informal way,” says Chavez.“Enjoying a meal with the family, or at family reunionsand get-togethers—that’s when we teach and pass on

the values that areimportant to us, whenthe sons and daughtersare around the tableand they talk about life,about behavior, aboutvalues and trust,integrity and commit-ment—all of thosethings we need to suc-ceed in life.

“So if the cus-tomer allows us to bepart of that process—from the time they come intothe store, fill the cart with groceries, go to the cash

register, bag their groceries—it’s really a privi-lege we have to serve them.”

And this is the key reason for hiscompany’s name, Mi Pueblo: in Span-ish it literally means “My Village” or“My Home.” What’s more, thephrase resonates far beyond that strictdefinition to encompass the values,

traditions, nostalgia, and culture of theLatino community, especially the Mex-

ican community that Mi Pueblo serves.“It represents all that, plus the dreams and

the values that we bring with us into this country,”adds Chavez. “No one knows that core customerbetter than us, at Mi Pueblo. Fortunately, we don’thave to go to college or hire consultants to under-stand that core customer. We know it by blood. AtMi Pueblo we are that customer; we come from

the same region, we come to this country for thesame reasons, to achieve our goals and dreams.”

Chavez arrived in the United States on Indepen-dence Day, July 4, 1984. He worked odd jobs—including stints as a janitor and bartender—whiletaking adult education classes in the evenings, startedcollege in 1985, and a year later landed a job at Stan-ford University washing glassware for the labs.

With this job he achieved one of his goals ofproviding a good education for his children, as thefamilies of university employees can attend classesfor free, and Stanford is one of the best, in his opin-ion. But another, quite different path presenteditself to him in short order.

“My brother was operating a mom-and-popmeat store in Redwood City, Calif., and asked if I

22 • Progressive Grocer • January/February 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com

FamilyvaluesMi Pueblo cultivates an environment where Hispanic shoppers can find everything they need for that key place in the home where the culture is transferred from generation to generation—the dining table.

Outstanding Independents AwardsRecognizing excellence in the grocery business

Juvenal Chavez (left), the founder, chairman, and c.e.o. of Mi Pueblo, took a risk in creating a supermarketformat geared especially to shoppers of Mexicandescent—and found his calling.

Page 4: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

24 • Progressive Grocer • January/February 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com

could help him run the business.Since I was working with him on theweekends, I already saw how under-served the Hispanic community was,and believed I could help,” recountsChavez. “So I had a big decision tomake: On the one hand, I could con-tinue at Stanford and know what wasgoing to happen with me for the restof my life. On the other hand, I hadthe curiosity to do something impor-tant, something to which I couldapply my intensity, my abilities, andmy intelligence, but we couldn’t tellwhether it would be successful or not.I decided to toss the coin out thereand see what happened.”

He found his calling in that store,an environment where he discoveredhis ability to see things from otherpeople’s points of view, to learn oftheir wants and needs, and to be ableto anticipate those wants and needsbefore even being asked—a criticalskill for a merchant.

By 1990 he set out to test this abil-ity on his own, opening a 4,000-square-foot store in a rundown neigh-borhood in eastern San Jose. “No onewanted to come there to do business inthose years, and I recall when I had tohand out my business card to any ofmy service providers or people I hadto deal with on a regular basis, theywould ask, ‘Do you expect me to come

out and see you over there?’ Unfortu-nately I didn’t have too many choices atthat time. So when I needed to see myattorney or my accountant, I wouldhave to travel to them.”

But through hard work and acommitment to his mission, the busi-ness was soon thriving.

Keys to success“First of all, you have to value and

respect the shoppers, and recognizethem first as people before recognizingthem as potential customers,” observesChavez. “A customer is just a number,a customer is just a transaction; butbehind that transaction is a face, a body,a soul. It is someone who is very uniqueand who wants to be recognized forwho he or she is. That is what we aretrying to do here at Mi Pueblo, so every-thing has to take that into account, tomake sure we create the right environ-ment for that important person whocomes into the store, so that he or shefeels that they are in their environment.Once they feel that way, they can con-tinue with their shopping.”

In addition to understanding whoits shoppers are by being those shop-pers, the folks at Mi Pueblo want tounderstand each shopper’s uniqueneeds so they can provide quality ontheir customers’ terms. “We want toprovide that customer with the bestshopping experience so they havesomething to remember you by otherthan the groceries they put into theircart,” says Chavez. “I can literallyremove all of the labels from all of the

products that I am selling here, andcan confidently tell my customers thatI am offering them the very best, thatI did my homework, and this is theproper selection. And if this is notwhat you expect, I will do everythingin my capacity to make it what youexpect. After that, the transactionswill take care of themselves.”

Chavez gives an example of howthis trust develops. “Look at all of theoptions that exist for Hispanic meals,”adds Chavez. “Yet a Hispanic con-sumer will drive adistance to a littlerundown store inthe middle ofnowhere to get thatone unique ingredi-ent, a unique pro-duce ingredient orspecialty item thatin some cases willonly cost pennies. And usually, it’s themost important ingredient in theentire meal.”

This is where mainstream grocersgo wrong when addressing the Hispanicmarket, Chavez points out. Most of thetime, he says, they’re purely aboutadding new products—a Hispanic sec-tion in an aisle, or a Hispanic offeringwithin each category, for instance.

“They don’t study such places asthat little rundown store, to learn whythe customers travel so far to go there,what it is offering that the chains arenot, what strategies are needed to cre-ate the proper environment for thiscustomer, aside from just adding some

products,” notes Chavez.“I have to laugh—and sometimes

I get angry—when I see the largechains around here trying to addressthe Hispanic consumer,” he contin-ues. “They play their radio and TVcommercials advertising their offer-ings that they have in their stores. Butwhen you get inside, it’s as if theywant the Hispanic shopper to justpick up these items and get out.”

Still, Chavez understands whythey think in this way, and that each

business has its pri-orities. Mi Pueblois no different.

“I also under-stand that at MiPueblo, we cannotoffer everything toeverybody,” headmits. “We’ll doeverything in our

capacity to provide the very best cus-tomer service and best environment tothose shoppers who are not part ofmy core market, but we have certainlimitations, and we will be very sensi-tive to that.”

And if the mainstream grocers arecontent to continue addressing theHispanic market the way they do cur-rently, that’s fine with Chavez, too,as it will help him grow the businessand expand his store base.

“If they keep acting like that, it’san advantage to me in terms of own-ing the market in this area,” he says.“Their ignorance is helping me growstronger.” n

Outstanding Independents AwardsRecognizing excellence in the grocery business

With such features as an inviting,colorful decor and fun events, Mi Pueblostrives to make all of its customers feel special.

Page 5: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

By Meg Major

R oundy’s Supermarkets, Inc. hasbroken free of its staid formermold of grocery wholesaler,thanks to a business strategycentered on aggressive retail

growth. In just six years the company has trans-formed itself from a wholesale distributor supply-ing 800 varied independent grocery accounts andrunning 53 corporate units, into a leading self-dis-tributed regional chain with 152 stores, and opti-mism to spare.

The most obvious product of this strategictransformation is a fleet of corporately owned

supermarkets under the Pick ’n Save,Copps, Rainbow, and Metro Mar-ket banners in Wisconsin and Min-nesota, which account for nearly allof Milwaukee-based Roundy’s $4billion in sales. (The company stillsupplies four independents

as well.) But at the heart of the extrememakeover is Robert Mariano, thechairman and c.e.o., who took thehelm in June 2002 after 28 suc-cessful years in the industry, mostlywith Chicago-based Dominick’sFiner Foods.

Working his way from deli clerkto the chief executive of Dominick’sprior to the chain’s sale to Safeway in 1998,Mariano earned a reputation as a hands-onmerchant and community servant. Those attributeshave served him well, as he has imbued Roundy’swith a can-do corporate culture, and a retail blueprintfocused on local neighborhoods.

In his first 18 months as c.e.o, Mariano sawRoundy’s growth through new store constructionand acquisition double, with the addition of 59stores. In 2003 Mariano spearheaded the com-pany’s HQ relocation from the suburbs to down-

town Milwaukee, consolidating its operationsfrom three campuses into a cohesive

facility.He also shepherded the estab-

lishment of Roundy’s Foundation,a grant-marking organization thatprovides funding to qualifyingnonprofit organizations dedicatedto enhancing life in the commu-

nities where the grocer’s employ-ees and customers live and work.Roundy’s “has faced numerous chal-

lenges on the road of transformation fromwholesaler to retailer,” Mariano readily acknowl-edges. “As a relatively ‘new’ supermarket chain[that’s] integrated numerous established cultures,one of our most profound challenges is our abil-

26 • Progressive Grocer • January/February 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com

Ready for the Windy City

ROUNDY’S PLANS to open 15 to 25 as-yet-unnamed grocery stores in Chicago in the next several years, a prospect that appeals to its chief executive, Robert Mariano.“We’re really very excited about what we’ve got going on in Chicago,” says Mariano. “We think there are great opportunities for great food retailing in the city limits,

where we’ve got several locations that are in varying stages.” Those stages of development range from signed leases to ongoing negotiations to site selection options.Among the potential sites are the former Carson Pirie Scott & Co. building at 1 South State Strett; another at Monroe and Halsted streets; a location at 1515

North Halsted that will serve as the anchor for the planned New City complex of retail shops, restaurants, and residential buildings at Halsted and Clybourn; and yetanother, at East Lake Shore Drive and Randolph.

At presstime Mariano said that while “plans are still on, they are moving at a somewhat delayed pace, primarily because of the tight economic conditions. The pacehas slowed down, but has not been derailed. Things just take a little longer to get accomplished with developers today.”

Outstanding Independents AwardsRecognizing excellence in the grocery business

Well-rounded andreadyThis once pure-play wholesaler has flourished at retailing, thanks to a customer-centric,one-customer-at-a-time mentality.

Page 6: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

28 • Progressive Grocer • January/February 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com

ity to provide a consistent delivery ofour value proposition across allstores.”

But his company has managed toconsistently improve operating per-formance in the midst of disruptivechange, thanks to a strong new man-agement team now firmly in place,the majority of whom weren’t part ofthe forerunning wholesale organiza-tion. Though a handful of incum-bents remain, Mariano has hand-picked many present senior andmiddle managers from the outside.

“The ability to assemble and movedirectionally into a shared vision, toproduce the types of results we’ve beenable to achieve, is really a complimentto all of them,” says the c.e.o. “And Ithink what’s helping us get there isour ability to function as a strong,powerful merchant and operatingteam,” with a collective focus “on acustomer-centric marketing strategy.We have begun a great deal of infra-structure work within the organiza-tion to help our merchandising andoperations teams focus on specificgroups of customers. And we believewe will get much better at it overtime. It’s not something that can bedone quickly. It’s a fairly long-termpoint of view of developing and grow-ing our business.”

A key to that long-term develop-ment is Roundy’s structure as “a veryflat organization,” energized by“intense communication and ongo-ing dialogue among all levels. It does-n’t take long to get something accom-plished around here. We run a $4billion company like we’ve got onestore,” explains Mariano.

That approach is a testament tothe tutelage of “Mr. D.”—DominickDi Matteo, the legendary son ofDominick’s founder,whom Mariano cred-its with having anenduring influence onhis development as aretailer.

“Mr. D. never sawhimself as operating a115-store chain; hesaw himself operatingone store, 115 times,”explains Mariano. “Ibelieve strongly in thatphilosophy, whichsometimes makesthings a little morecomplicated. But ifyou’re not focusing oneach store, you canreally miss a lot.”

When one employsthat store-level focus,

delivering an exceptional shoppingexperience, day in and day out, is thesingle most important issue. “Ourshoppers expect, and deserve, an expe-rience that varies little from one storelocation to another,” notes Mariano.“Our strength comes from being animble organization that’s able tomove expeditiously to serve cus-tomers’ needs without getting caughtup in a bunch of bureaucracy.”

Instead of needless red tape, Mar-iano relies on ownership, right downthe line. “Providing customer serviceis a full-time responsibility of everyemployee,” he says. “From the cashierto the service meat clerk, eachemployee is accountable to provide aserving and caring experience for ourcustomer.”

To that end, the customer serviceequation, he adds, must evolve. “Theprofile of our customer has changed.Service requirements and expectationshave increased as a result of thischange. It takes the whole store team

working collectively to ensure that acustomer has a successful shoppingexperience.”

A critical element of the equation,continues Mariano, is the “furtherdevelopment and launch of signatureproducts which are uniquelyRoundy’s. These products can be tai-lored through our own commissary,which allows for flavor profiles tomatch those of our local shoppers.”

Roundy’s public faceRoundy’s last February launched

a major media campaign touting thequality/value proposition of itsexpanding private label lines. Thecampaign, headlined by Mariano, or“Chairman Bob,” as he’s known inthe ads, is intended to put adynamic, credible face on Roundy’sprivate label brands, while simultane-ously communicating the grocer’scommitment to quality, freshness,integrity, and value.

The grocer’s 3,200-item signatureproduct line, sold under theRoundy’s Select brand, isstrategically positioned “asa high-quality, value alter-native product to thenational brand,” says Mari-ano. It complements thereputation that Roundy’shas earned for its perishabledestination departments,convenient locations, full-service departments, one-stop shops, and attractivestore-size footprints, he says.

What’s more, Mari-ano’s prominence in the

Outstanding Independents AwardsRecognizing excellence in the grocery business

Roundy’s has earned a well-deserved reputation for the quality of its perishables,including produce.

A plump chef bearing amuffin on a tray highlightsthe quality of Roundy’sfresh baked goods.

Page 7: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

marketing campaign leaves no doubt about who’sbehind the brand. Strengthening the bonds withRoundy’s customer base is of the utmost impor-tance to him. “We strive to strengthen those tiesdaily by giving back to the community on threekey levels: the store level, the corporate level, andthrough our Roundy’s Foundation.”

At store level, he explains, Roundy’s supportscommunities in multiple ways: giving donationsof food and gift cards to charitable organizations,raising money through POS donations or pinupprograms, or selling bratwurst and other food itemsto benefit local charities.

“Increasingly, our employees are volunteering

in their communities as well,” says Mariano. Storesin Madison, Wis., for example, are part of a newpilot program, “Roundy’s Gives Back,” which cre-ates store teams to develop partnerships with theAmerican Family Children’s Hospital in Madison,and to host monthly dinners for patients and theirfamilies at the hospital.

Larger donations, typically handled at the cor-porate level, support organizations with everythingfrom silent-auction items to food donations to tablesponsorships. “Here again, volunteerism is impor-tant,” affirms Mariano, noting the involvement ofemployees at the corporate level.

Chartered in August 2003, Roundy’s Founda-tion “helps us further strengthen our commit-ment to our communities. Through it, we tryto help families with three basic needs: puttingfood on the table, keeping them safe in theirown homes, and making sure they can read sothey can function well in society.” Dedicated tohunger relief, curbing domestic abuse, andadvancing literacy, the foundation provides grantsto food banks, women’s and family violence shel-ters, and literacy programs.

“Our community ties fit right into the part ofour mission that focuses on delivering productsand services in neighborhood stores that offer anengaging, interactive shopping experience on alllevels,” says Mariano. “Nothing is more engagingthan giving back to your community.”

In good companyFor Roundy’s, competing as a regional grocer

“isn’t quite so regional any more”—thanks to thelikes of well-heeled, deep-pocketed global retail-ers. But Mariano tips his hat to the slate of “good,solid, well-run regional independents” in andaround Roundy’s core marketing territory, includ-ing Lund’s and Byerlys, and Festival Foods. Suchrivals, he says, “have always made for a good, com-petitive dynamic.”

He gives a nod as well to Roundy’s suppliers,and speaks of burgeoning opportunities for strate-gic partnerships and collaboration. “First,Roundy’s is a retailer; we are no longer a wholesalerwith limited influence on the store network. Wewant suppliers to recognize that we can determinea strategy, collaborate on a tactical plan, and exe-cute fully. We have strong market shares in all ofour markets, and thus can provide a positive ROI.We look to develop co-marketing opportunitiesthat satisfy the needs of our customers, suppliers,and ourselves.” n

www.progressivegrocer.com

Outstanding Independents AwardsRecognizing excellence in the grocery business

Page 8: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

By Jane Olszeski Tortola

S erving nearly 800 retail storesoperating from Maine to Mary-land, the future for Cheshire,Conn.-based Bozzuto’s, Inc.appears to be as strong as the

foundation on which the company was soundlybuilt.

Established in 1945 by the late Adam J. Boz-zuto, and viewed by many as one of our indus-try’s most respected food suppliers, Bozzuto’s strat-egy for becoming the wholesaler of choice for somany family-owned supermarkets operating inNew England was set forth early on by the com-pany’s beloved founder: “Work together with asso-ciates, retailers, manufacturers, and suppliers whoshare your same values and philosophies. Nurtureand care for one another, and grow the businessone customer at a time.”

“We genuinely care,” says company chairmanMichael Bozzuto, who has worked in the food busi-ness “for as long as he’s known how to walk.” Headds, “We share the same philosophies for ourretailers that they have for their customers, andeach day we are committed to consistently provid-ing the what, when, and how—with no surprises.”

S.v.p. Steve Heggelke, who before joining Boz-zuto’s over a decade ago worked for Great AmericanSupermarkets in upstate New York, concurs. “Theculture of the Bozzuto’s organization is rock-solid,”he says. “And a big piece of that culture is relation-ships and the personal attention we provide. Itmakes us different from everyone else. It’s sincere,

and it’s not in any way fake.”He adds: “Many folks are surprised to learn

that most of the business we do with our cus-tomers is done on a handshake. When our retail-ers experience a problem, they have no doubt whotheir friends are.”

That same sentiment is shared throughout theBozzuto’s organization with 1,700 corporate and1,700 retail associates, who, through an ESOP(employee stock ownership plan) own about 18percent of the company.

“A lot of folks working with us have celebrated25, 30, and even 40 years or more with our family,”confirms Bozzuto.“There’s a lot oflongevity. We’re proudthat some of the first100 people who beganworking with the com-pany when it was orig-inally founded aretoday still employed.”

To that end, Boz-zuto credits his latefather. “His values arewhat continue to drivethe organization,” henotes. “His caring and understanding for peo-ple and retail, his commitment to aggregationto achieve better costs for retailers—we continueto preach his philosophies every day. When all issaid and done, our goal is to speak as one voice—not 800.”

Sharing his own fond memories and admira-tion for Bozzuto’s founder, and his confidence in the

company’s second generation, is the current chair-man of IGA Global, Dr. Tom Haggai. During Hag-gai’s long-term tenure as chairman of the world’slargest voluntary food network, he forged an endur-ing relationship with Adam Bozzuto, which resultedin Bozzuto’s evolving into one of IGA USA’s mostvalued licensed distribution centers.

Strength in numbers“When Adam Bozzuto was barely underway

with his company, a major flood that occurred inWaterbury, Conn., where his operation was thenlocated, could have put a weaker person out of

business,” recountsHaggai. “His singleconcern was that hisretailers were supplied,and this was done byhis going directly to themanufacturers and hisfellow wholesalers forhelp. More important,some of his retailers’operations were badlydamaged, and Adam,even with his limitedmeans at that time in

his life, would not let them be billed until theywere back on their feet. This started the founda-tion of Bozzuto’s—that a retailer could never ques-tion but that Adam maybe cared for them morethan they care for themselves, which meant thathe could be tough when they needed strength andsympathetic when they needed hope.

“That same human touch was passed on to

32 • Progressive Grocer • January/February 2009 A H E A D O F W H AT ’ S N E X T www.progressivegrocer.com

Sharing the

wealth

Outstanding Independents AwardsRecognizing excellence in the grocery business

About Bozzuto’s, Inc.

275 Schoolhouse RoadCheshire, CT 06410Annual sales: Close to $2 billionBanners serviced: IGA, Adam’s, King Kullen, RocheBros., Big Y, Dave’s, and Geisler’s, among others.Bozzuto’s currently services over 800 retailers in11 states.

“Any one of us really wouldn’t be very much ifwe didn’t have everyone else on our team.”

—Michael Bozzuto

A mutually respectful and trusting relationship with customers and associateshas helped this family-owned company, now in its second generation, become

the wholesaler of choice for hundreds of grocers.

Page 9: Recognizing excellence in the grocery business Mi Pueblo, …support.stcr.com/Newsletter/bozzutopdf.pdf · 2009-02-11 · 18 • Progressive Grocer • January/February 2009 AHEAD

Adam’s children, Michael and Jayne,”continues Haggai. “This Christmas,when others were cutting backbecause of the difficult finan-cial times, Michael believed itwas more important that at thefamed Aqua Turf Club, wherewe have gathered probably 100times, they have the bestHanukkah/Christmas dinnerwith the largest attendance inthe history of the company.Other companies canceled theirfestivities, but the Bozzutosknow that in having peopletogether, each is strengthened by thepresence of the others.”

Today, Bozzuto’s strength andhope for the future are alive and well.Through a number of expansions ofexisting facilities over the years and

acquisitions of others, including theconstruction of a new 300,000-square-foot warehouse in New Haven,

Conn. during 2008, significantgrowth has been achieved. Exceedingthe company’s projections, top-linesales during the past year aloneincreased by more than 40 percent.

Without a doubt, Bozzuto and his

team, including Heggelke, and e.v.p.of retail development George Motel,are elated with the extraordinary boost

in sales. At the same time, however,they remain clearly focused on peopleand on providing outstanding serv-ice.

In addition to offering exceptionaladvertising, merchandising, and pro-curement programs, the company willduring the coming months celebratethe opening of a cutting-edge trainingfacility designed to serve both itsretailers and manufacturers.

“We provide everything that ourcustomers need to effectively and effi-ciently manage their businesses,including not only state-of-the arttraining, but store development serv-ices such as engineering, trade andmarketing area analysis, and equip-ment purchases,” notes Heggelke.

Making a differenceAdditionally, the Bozzuto’s organ-

ization is lauded for its ongoing com-mitment to numerous philanthropicefforts.

“Through our Hometown Foun-dation,” explains Bozzuto, “we sup-port and organize a host of commu-nity projects throughout each yearthat involve children, cancer, diabetes,assistance to emergency response per-sonnel, and the military.”

Since 2001, for example, the foun-dation has sponsored the Dream Ride,a charity ride for motorcycles, whichin 2008 was held in conjunction with

the Dream Show, an all-make and-model car show. The annual eventbenefits Special Olympics Connecti-

cut athletes. According to Bozzuto,over 6,000 people participated thisyear.

Ultimately, Bozzuto believes thatpeople come to work and do businesswith his organization because they’regiven the opportunity to make a dif-ference in the company and in theircommunities.

“They grow here and are able tosee the work a little differently,” heemphasizes. “Even in some of thelarger chains that we serve, we encour-age our people to think locally andto conduct business based on the spe-cific needs of each individual neigh-borhood.”

He reflects: “One of the proudestmoments of my career was when acustomer phoned our company lateone evening and was connected toone of the guys in the warehouse. Hetook it upon himself to get the cus-tomer taken care of, and at the endof his shift left us a note explaininghow he assisted the customer. He was-n’t sure that he did every little thingcorrectly, but in the end he assuredus that the customer was happy.

“Usually, when retailers choose tocome to Bozzuto’s, they’re a ‘lifer,’”concludes Bozzuto, “and it’s becauseof experiences like the one I justdescribed that it’s the last wholesalerchoice our retailers ever have tomake.” n

34 • Progressive Grocer • January/February 2009 www.progressivegrocer.com

Outstanding Independents AwardsRecognizing excellence in the grocery business

“Usually, when retailerschoose to come to Bozzuto’s,

they’re a ‘lifer.’”—Michael Bozzuto, Bozzuto’s, Inc.