In the Cart – August 2017 Compilation
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Here’s a compilation of some of the biggest stories affecting grocers for April 2017.
Meat Grinding Log Fines Begin
USDA FSIS (Food Safety Inspection Service) has begun enforcing penalties for supermarkets that are in violation of the new meat grinding log regulation. The rule became effective on June 20, 2016, and enforcement began on October 1, 2016. The Department decided not to enforce any penalties for the first six months of the rule’s effective date, through March 31, 2017. NGA (National Grocers Association) has been in touch with FSIS and hopes to have more information soon regarding what they have decided to do regarding penalties for non-compliance. On an NGA webinar last summer, FSIS staff indicated that the Office of Investigation, Enforcement and Audit would re-evaluate enforcement next steps on April 1, 2017. NGA is seeking more information on penalties that they can share with industry soon.. The constituent update from FSIS announcing plans for inspectors to begin to verify compliance on April 1, 2017. Review their announcement by clicking here.
Food Safety Modernization Act (FSMA) Update
With the implementation deadline just weeks away for the Food and Drug Administration’s (FDA) menu labeling regulation, National Grocers Association (NGA) sent a letter to the acting FDA Commissioner, Stephen Ostroff, requesting that the deadline be delayed due to the significant amount of confusion that remains around the rule. The rule is set to be implemented on May 5, 2017. NGA continues to reach out to the FDA in the hopes of obtaining written confirmation that licensors and marketing alliances will not be covered under the regulation.
In addition, NGA continues to implore the Health and Human Services Department to suspend the rule and allow the FDA to reexamine the regulation and incorporate the Common Sense Nutrition Disclosure Act of 2017 (CSNDA) into the new writing, while maintaining our support for the CSNDA and pushing for its consideration in the House and Senate.
NGA will continue to monitor the issue and in the meantime, if you have any questions regarding Menu Labeling regulations or about the Common Sense Nutrition Disclosure Act, please reach out to Matt Foley with NGA.
Annual Refresher Training Required for all SNAP Authorized Retailers
As an authorized SNAP retailer, USDA (United States Department of Agriculture) expects all authorized SNAP vendors to be able to demonstrate that they maintain an established operational compliance policy and program to prevent SNAP violations from occurring. Training is required for new owners AND new employees within 30 days of employment. USDA FNS also requires refresher training to be conducted once a year. Should a SNAP violation occur, it’s very important that the retailer can show documentation of the training for both new employees and the annual refresher training.
To review UDSA’s training expectation, Click Here. You can also copy a list of FNS (Food & Nutrition Services) Retailers Store Training Information by Clicking Here.
Many WIC Vendors in Texas have now been certified by Texas WIC Program to start approving Split Tender transactions for WIC participates. USDA (United States Department of Agriculture) had mandated states require their WIC Vendors to allow Split Tender transactions by October 1, 2016. The states and territories that use a Smart Card/Chip Card (sometimes referred to as eWIC) process ran into difficulty with software and system provider companies due to the transition in the US from mag stripe to chip card technology for credit/debit cardholders and the changes to update systems that were required in retail locations for the software and chip card readers. USDA allowed Texas and the other eWIC states a waiver until October1, 2017. Texas WIC wants to allow their participants the opportunity to maximize their “Cash Value Voucher” (CVV) benefits and are allowing WIC Venders to start approving Split Tender transactions as soon as their system is certified by Texas WIC. As of March 1, there were 280 WIC Outlets processing Split Tender transactions for their WIC customers in Texas. If you aren’t yet certified or have questions about the Split Tender process please contact Jarrett Morgan- TX WIC Food Redemptions Branch Manager, Jarrett.morgan@dshs.state.tx.us or reach him at 512-341-4750.
A Split Tender transaction is when a WIC participant who is using her “Cash Value Voucher” (CVV) for fruits and vegetable purchases and exceeds her CVV balance on her WIC Smart Card. For example, the WIC participant has a CVV benefit of $16.00. Her purchases for fruits and vegetables total $16.50. Prior to the development of Split Tender transaction process, the clerk would have deducted or removed the last fruit and vegetable purchase made by the participant (tomatoes that cost $1.14) therefore readjusting the CVV purchase down to $15.36 and then the merchant would have deducted the $15.36 from the participants card balance for CVV of $16.00. This would leave the participant with a balance of .64 cents. In most cases, participants wouldn’t try to purchase any qualifying fruits or vegetables and would wait until new benefits were loaded on their account. The approval of Split Tender process now allows the participants to purchase those tomatoes and her balance to pay at the end of the transaction would be the .50 cents in cash, check, or a credit or debit card. This will help the participants maximize the fruit and vegetable benefits designed for them by WIC Nutritionists.
SNAP Program participation is showing very slight decrease from January to February so far in 2017. The twelve month rolling average shows very slight change of what we have seen so far in the first two months. In addition, a look back to last year comparing February to March shows very little change. Texas isn’t showing the recovery as a majority of the country is. Enrollment and participation in the states where Oil and Gas are major factors in the state’s economy continue to show no growth to continuing growth in enrollment in benefit programs. Nationally SNAP Program enrollment as well as benefit dollars continue to decline from five percent to approaching six percent from a year ago. Thought it would also be interesting to see how some of our neighboring states SNAP participation and benefits compare to Texas.
TEXAS Current/Past Results
Month Cases Participates Total Dollars Ave. $ per case
Jan 17 1,648,030 3,811,968 $443,969,497.00 $269.00
Feb 17 1,630,846 3,847,537 $442,386,110.00 $271.00
Twelve Month Rolling Average
Jan-Feb17 1,636,558 3,882,481 $445,417,618.00 $272.00
Look back-Last Year- 2015
Feb 16 1,600,141 3,796,125 $436,228,019.00 $273.00
Mar 16 1,596,574 3,783,594 $432,416,142.00 $271.00
National Numbers
Nov 15-Nov 16 Cases Participants Benefits
Nationwide (-05.0%) (-03.2%) (-05.8%)
Texas +03.4% +03.8% +03.2%
Louisiana +09.6% +11.6% +10.0%
Arkansas (-11.8%) (-15.4%) (-16.4%)
Oklahoma +0.5% +0.7% +1.7%
Here’s a compilation of some of the biggest stories affecting grocers for February 2017.
New Rules from TX Department of State Health Services on Food Handlers
Texas Food Establishment Rules adopted this past year (September 2016) have several new requirements for retail establishments. One of those areas of rule change is in article 228.33 (click here to review regulations) that now require a Certified Food Protection Manager on duty at all times when the store is open for business. In addition, an individual working with unpackaged food, food equipment or utensils, or food-contact surfaces is required to take an accredited Food Handler training class.
Information on both Certified Food Protection Manager and Food Handler’s training classes is available at https://tx.foodprotectiontaskforce.com/.
Texas Department of Agriculture Fuel Calibration Regulation Takes Effect Jan. 1 2018
This past year, the Texas Department of Agriculture (TDA) adopted new regulations regarding retail motor fuel dispensers (gas pumps). Retail motor fuel dispensers must be on a maintenance program where they are calibrated every two years by a certified service technician registered with TDA. The new regulation and compliance enforcement goes into effect January 1, 2018. The compliance penalties can be severe if your fuel dispensers aren’t calibrated, certified by registered technician and sent to TDA. Click here (see enclosure-Texas Dept of Ag ) to access the new regulation from TDA.
FMI Action Regarding Release of Individual Retailer SNAP Redemption Data
Judge grants stay and FMI’s motion to intervene. In late January, FMI (Food Marketing Institute) filed a motion to intervene in the Argus Leader court case, so that FMI could have the opportunity to appeal the November 30, 2016, decision on its own behalf. The motion was filed in the United States District Court for the District of South Dakota by local counsel. FMI has announced that the court granted their motion in its entirety. The court has allowed FMI to intervene, granted a stay of its judgment, and has given FMI 15 days to file its notice of appeal.
Following the appeal by FMI, they then received confirmation from an attorney representing USDA, that USDA will not release the SNAP retail data until the appeal is resolved. The stay will remain in place until an appeal decision is issued. We will continue to monitor the appeal and report any movement on the case.
Texas WIC Program Starts Process to Move to Three Year Renewal Contract
This past December, Texas WIC sent out renewal packets to approximately one-third of their WIC Vendor Community. Due to several issues regarding the length of time to review and process the packets per individual location, Texas WIC was instructed to send out the packets in mid-December with a return date of January 12, 2017. In the future, WIC will not have to go out this early, and this was a one-time process in order to get the system set up, reviews handled, and technology in place. We can expect that the agency will be required to follow a timeline of starting the contract renewal process in May, possibly June, for the contract renewals for October 1, 2018 through September 30, 2019. Texas WIC is currently developing a Web Portal that would allow WIC Vendors to log on and correct information on each individual account, when needed. That is expected to be in place by 2018.
It is critical that Texas WIC has a key contact that includes correct e-mail address, office and cell phone numbers!
Reach out to Texas WIC Vendor Relations Outreach Team at wicvendorrelations@dshs.state.tx.us or you can contact the Vendor Relations Team Lead- Bessie Felton at Bessie.felton@dshs.state.tx.us or 512-341-4779.
SNAP Program Statistics Update
SNAP Program participation is showing very slight decrease from December to January in the new year. We’ve also enclosed the comparison last year from February 16 to March 16 as well as twelve month rolling average to give you some idea of what is expected in the next couple of months. Nationally SNAP Program enrollment as well as benefit dollars continue to decline from five percent to approaching six percent from last year. Enclosed are the latest numbers from USDA on our neighboring states.
TEXAS Current/Past Results
Month Cases Participates Total Dollars Ave. $ per case
Dec 16 1,654,411 3,912,257 $448,725,497.00 $271.00
Jan 17 1,648,030 3,811,968 $443,969,497.00 $269.00
Twelve Month Rolling Average
Dec-Jan 17 1,636,999 3,878,197 $444,904,444.00 $272.00
Look back-Last Year- 2015
Feb 16 1,600,141 3,796,125 $436,228,019.00 $273.00
Mar 16 1,596,574 3,783,594 $432,416,142.00 $271.00
National Numbers
NOV 16– Cases Participants Benefits
Nation (-04.9%) (-05.0%) (-05.8%)
Texas +03.8% +03.4% +03.2%
Louisiana +11.6% +09.6% +10.0%
Arkansas (-15.4%) (-11.8%) (-16.4%)
Oklahoma +0.7% +0.5% +1.7%
Menu Labeling Update
NGA (National Grocers Association (NGA) reports in their January Newsletter that there is discussion of proposed new legislation to change current regulatory requirements for the FDA’s Menu Labeling regulation which is set to become effective May 5, 2017. Members of the House and Senate are expected to reintroduce legislation in the coming weeks that will allow for common-sense changes designed to make the regulation more suitable for various business formats. For more information on the expected legislation and background on the menu labeling issue, please click (NGA Menu Labeling Brief 2017) to view NGA’s issue brief on the topic.
Food Modernization Act Update
Texas Department of State Health Services (DSHS) has announced that you can log onto their web site at http://www.dshs.texas.gov/foods/default.aspx and you can enroll for a variety of email alerts from DSHS that they will send out regarding updates on DSHS rules, Federal Preventive control Rules, and/or information regarding the Food Safety Modernization Act activities in Texas. If you are interested in just the Food Modernization Act Alerts, log on at: http://www.dshs.texas.gov/foods/fsma/Training.aspx.
Texas (DSHS) Retail Foods Policy Update
The Texas Food Establishment Rules (TFER) requires that a retail food establishment must have available the most recent inspection report available upon request by posting a sign, placard or other approved method by the regulatory authority. Under the new training guidelines taught by TX DSHS (Department of State Health Services), if the food establishment chooses to post their most current inspection report instead of or with either posting a sign, placard, or just the most current inspection report that action meets the requirement of notification as well. To review the Regulatory Alert posted by TX Department of State Health Services, please click here: TX DSHS Regulatory Update January 2017
University of Houston Downtown Announces Retailing Career Fair
The Center for Retail Management and the University of Houston Downtown invite your company to participate in a career/job fair for the retail industry on Thursday, March 23, 2017. Only retail organizations are invited to participate in this exclusive event. All students attending the University of Houston Downtown will be invited to participate in this career fair.
As a participant, you will have a complementary table for displaying information about your company and the job opportunities available. You are encouraged to promote all aspects of retailing including support services, such as accounting and human resources, to operations at the store, district or regional offices. You may recruit for full time, part time or internship positions. The goal is to showcase the breadth and depth of job opportunities in the retail sector. Your participation contributes to the achievement of that goal.
To reserve a table at this event, please click here to complete the online Registration Form.
In addition to review details of the UHD Retailing Career Fair, please click here: UHD 2017 Retailing Career Fair
With the holidays ramping up and seasonal shopping in full swing, criminals are also gearing up for a busy season. Cyber criminals don’t take the holidays off. In fact, they’re especially busy trying to steal your money and personal information. Shoppers should be more vigilant than ever for scams designed to steal their money and personal information. Though criminals are often aggressive and creative in their efforts, there are certain red flags and common schemes holiday shoppers can guard against this holiday season. Please click here to review Federal Bureau of Investigation (FBI) article on holiday scams.
The National Grocers Association (NGA), along with other merchant organizations and payment systems stakeholders, raised concerns this year to both the Federal Reserve Board of Governors and the Federal Trade Commission (FTC) over Visa’s actions that were deployed as part of EMV migration upgrades. As you may recall, retailers began seeing new screens shown on PIN Pad terminals, often after EMV updates, that gave consumers the option to choose “Visa Debit” or “US Debit.” Visa debit routed the transaction via Visa’s debit network, violating the Durbin Amendment that gave merchants the choice which network to route the transaction. Last week, NGA and other merchant trade groups sent a letter to Visa calling for the company to eliminate any operating rule that violates federal law. Visa’s response to NGA can be found HERE. Following an investigation by the FTC and a ruling by the Federal Reserve, Visa announced this week that it will no longer use EMV technology and rules to inhibit merchant routing choice. Click HERE to read more about Visa’s modified debit routing policies.