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PRESIDENT'S MESSAGE

The Process Continues:

This week the legislative process continues with the Senate Personnel Subcommittee and then the full SASC taking up the 2016 NDAA. The details remain cloudy because the exact language is embargoed until the full Committee takes up the "marks" from the various subcommittees but we can see some indications. The HASC in its version of the 2016 NDAA did move forward with some of the Compensation and Retirement modernization proposals that were proposed by the Compensation Commission. They did not however support any changes to the military resale system at this point. I see the SASC supporting many of the changes proposed in the House version and moving out on some actions that will impact military resale.

One recent item of DoD expense that was highlighted in a report on wasteful spending was the cost of shipping produce to the Far East ... something like $48 million in transportation costs to ship $25 million is goods to the commissary. It is likely that there will be proposed action that will impact second destination transportation and if the concept of "goods at cost" is varied then a change to Title X allowing for variable pricing could appear as well. The differences between the HASC and SASC would be ironed out in conference later this year but it appears that military resale will not go untouched.

ALA continues to engage key decision makers to inform them on the impacts both direct and on a second and third level of order if these changes are implemented. These issues will be addressed in detail at the Congressional Caucus scheduled for 10 June in the Rayburn Building. This is a must attend event if you do business in the military resale channel.




Senate panel backs smaller military pay hike, retirement reform
Read the Full Story
Military Times, Leo Shane III
Senate lawmakers shook hopes for a larger military pay raise next year by recommending only a 1.3 percent hike in their draft version of the 2016 defense authorization bill, a move that could further widen the "pay gap" between troops and their civilian counterparts.

Commissaries focus on shoppers amid proposals for change
Read the Full Story
Military Times, Karen Jowers
Amid a swirl of proposals for historic changes to the commissary benefit, the Defense Commissary Agency is dealing with more immediate issues &mdsah; like making sure products get to store shelves.

Defense bill mandates huge cuts in DoD HQ workforces
Read the Full Story
Federal Times, Andy Medici
The Defense Department would be required to cut its headquarters budget and personnel by 20 percent over the next few years, under legislation to be voted on in the House.



Patrick B. Nixon
President, American Logistics Association




WASHINGTON UPDATE


Milley, Richardson tapped for top DoD posts
Defense News
President Barack Obama recently nominated two four-stars to run the Army and Navy.
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HASC's ranking Democrat will oppose its NDAA
Defense News
In a rare move, House Armed Services Committee Ranking Member Adam Smith announced that he will oppose the panel's 2016 Pentagon policy bill.
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Service group: Senate bill 'disappointing' on military benefits
The Hill
A key service organization is criticizing a Senate Armed Services Committee subpanel for its changes to troop pay and benefits in the annual defense policy bill.
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Issue tracker: NDAA hits House floor
Defense News
The House will take up a massive Armed Services Committee-approved Pentagon policy bill that would add billions to a list of Defense Department weapon programs and keep alive some targeted for cuts by the services.
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Thornberry downplays White House veto threat
Defense News
House Armed Services Committee Chairman Mac Thornberry downplayed a White House veto threat of defense legislation that proposes to increase military spending.
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Pentagon's quiet push for military personnel reform
Military Times
Support for far-reaching military personnel reforms that would change some of the most traditional facets of troops' promotions and assignments is taking root at the highest levels inside the Pentagon.
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With Dunford, Obama makes popular choice
Defense News
President Barack Obama's selection of Marine Corps Commandant Gen. Joseph Dunford as the next chairman of the Joint Chiefs of Staff seems to have done the impossible — created consensus in Washington, D.C.
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MARK YOUR CALENDAR

Specific information on upcoming ALA events is posted regularly on the ALA website. To learn more about each event, please click the following links:

Date Event
June 10 2015 Congressional Caucus
Oct. 26-28 68th Annual Convention


COALITION UPDATE


Coalition sends letter to Senate and House Appropriations Committee leaders
Save Our Benefit
The Coalition to Save our Military Shopping Benefits valued associates urge the Senate and House Appropriations Committee Chairmen and Ranking Members to reject DoD's budget proposal to slash $322 million in commissary funding, along with changes to legislation that would enable these cuts. The letter sent last Friday, May 8, 2015 mirrors the Coalition letter sent to leaders of the Senate and House Armed Services Committees in mid April.
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Senate panel backs military retirement change, troop pay raise of 1.3 percent
Military.com
Lawmakers on a Senate panel agreed to overhaul the military retirement system and give troops a less-than-expected pay raise next year. "Troops deserve the 2.3% pay raise," said Joyce Wessel Raezer, executive director of the National Military Family Association. The bill would continue to erode pay and benefits for currently serving members and their families, according to the Military Officers Association of America. "The subcommittee mark is very disappointing," Norb Ryan, the organization's president and chief executive officer, said in a statement.
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Potential defense budget cuts dishonors military personnel
Statesman Journal
Between the FY 2014, FY 2015 and FY 2016 pay caps, the proposed Basic Allowance for Housing reductions, the reductions in commissary savings, and the new TRICARE fee structure, an E-5's family of four would experience a loss of over $5,100 in purchasing power annually ; and an O-3's family of four would experience a loss of over $6,400. These significant pay and benefit cuts are inconsistent with the extreme sacrifices exemplified by the last 13 years of combat duty. The military is the 1 percent that protects our nation and their sacrifice should be honored.
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Study highlights employment problems for veterans
Stars and Stripes
Despite recent national efforts to hire veterans and educate employers, a new report says that vets have trouble finding and keeping jobs and that civilian employers struggle to understand them. Some of the training and indoctrination that serves troops well in war works against them in their job search, according to the report, produced by the University of Southern California and Volunteers of America. It calls for "civilian basic training" as troops transition out of the armed services.
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Search continues for missing U.S. helicopter in Nepal
DoD News, Joint Task Force 505 News Release
The search is continuing for a U.S. Marine Corps UH-1Y Huey helicopter reported missing in Nepal with six U.S. Marines and two Nepalese service members aboard, Joint Task Force 505 officials reported today. The aircraft, which was delivering humanitarian aid to people affected by the recent earthquake and was evacuating casualties back to Kathmandu, went missing yesterday near Charikot, Nepal. Officials said the status of those aboard is unknown.
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COMMISSARY ANNOUNCEMENTS

Commissary Web Posts

The following commissary items were posted to the ALA Website between 10 AM, May 7, 2015 and 10 AM, May 14, 2015:

PROMOTIONS:
- Halloween Promotion, Far East & Alaska Quantities #1.

NOTICES TO TRADE (NTT)
- 15-53, Questions Regarding DeCA NTT 14-75, Expansion of DeCA's Brand Name Swell Allowance Program — Deadline to Negotiate Swell Allowance Rates is June 12, 2015.

MISCELLANEOUS:
- Adds/Changes/Deletes, Week 15-19 and also a Corrected Copy of 15-19.
- 2015 Commissary Roundtable Presentations from IRI and Kantor.
- CRV Values as of May 10, 2015.




FEDERAL BUSINESS OPPORTUNITIES


Shelf Stocking, Custodial and RSHA Operations at the McChord AFB Commissary
FedBizOps.gov
Furnish all supervision, personnel, equipment and supplies necessary to perform shelf stocking, receiving/storage/holding area, and custodial operations for the Defense Commissary Agency (DeCA), McChord AFB Commissary, located at McChord AFB, Washington, in accordance with the Government's Performance Work Statement (PWS).
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Shelf Stocking, Custodial, RSHA and Residual Grocery Operations at Fort Carson Commissary
FedBizOpps.gov
Furnish all supervision, personnel, equipment and supplies necessary to perform shelf stocking, receiving/storage/holding area, custodial and Residual Grocery operations for the Defense Commissary Agency (DeCA), Fort Carson Commissary, located at Fort Carson, Colorado, in accordance with the Government's Performance Work Statement (PWS).
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Looking for more federal business opportunities? Search here.


COMMISSARY NEWS


Enhancing grocers' integrated pest management programs
Progressive Grocer
There's no question that the nature of the grocery industry demands the most stringent standards of quality and hygiene. In this environment, having customers see pest activity and contamination of food from pests is simply unacceptable. As a result, grocery stores have the critical need to remain vigilant and maintain careful records ensuring that pest activity doesn't have a negative impact on public health, or their businesses and reputations.
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FDA inspectors report long list of problems at Blue Bell plants
Food Safety News
Inspection teams from the U.S. Food and Drug Administration reported numerous problems after recent visits to three production facilities owned and operated by Blue Bell Creameries of Brenham, Texas. According to the company's most recent update, its main production plant in Brenham, one in Broken Arrow, Oklahoma, and one in Sylacauga, Alabama, are now closed, and no ice cream is being produced at this time.
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Re-Krafting mac'n cheese: Going 'natural' a matter of survival for food brands?
Refrigerated & Frozen Foods
Building on the success of the 2014 Food Logistics Forum, this year's event will provide two full days of robust educational resources and opportunities for attendees to build new business relationships and share best practices.
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Experts: Grocery industry disruption will profit food producers, processors
Capital Press
Grocers are expecting a disruption from online sales in coming years, but experts say the shift will likely profit farmers and food processors.
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Missed an issue of Executive Briefing? Click here to visit Executive Briefing archive page.


2nd wave of conventional retailers demanding natural, organic, non-GMO
Food Navigator-USA.com
Retailers want growth, and CPG giants are falling behind the companies that can deliver it by supplying natural and organic brands appealing to millennials, said Hain Celestial bosses.
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Natural Grocers to test loyal program, grab-and-go offerings
Supermarket News
As part of its rebranding program, Natural Grocers by Vitamin Cottage will soon start testing its new loyalty program — {N}power — and plans to roll out the program shortly after, said Kemper Isely, chairman and co-president, during a call with analysts. The loyalty program will build off of Natural Grocers' website, which launched last month, the Lakewood, Colorado, company said.
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Kroger could face stiffer competition after huge supermarket merger
Cincinnati Business Courier
Two of the world's biggest supermarket operators are discussing a merger, a move that could have a big impact on Cincinnati-based Kroger Co.
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GMA faces setback in attempt to repeal GMO labeling law
FoodIngredientsFirst.com
A group of leading U.S. food manufacturing associations is seeking a preliminary injunction against a Vermont state law that would force them to label foods that contain GMOs. The Grocery Manufacturers Association, the Snack Food Association, the International Dairy Foods Association and the National Association of Manufacturers are leading the move, which they say is unconstitutional.
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Consumers less confident in safety of food supply, more confused
Farm Futures
A new survey of Americans' food eating and purchasing habits finds consumers are both less confident in the safety of the food supply and more confused about what they should be eating.
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INDUSTRY NEWS


Wal-Mart's mission: Connecting customers with online orders
The Wall Street Journal (tiered subscription model)
Wal-Mart Stores Inc. is experimenting with "click and collect" and focusing on creating more pickup points for goods ordered online.
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Sears future may include slimmed down stores
Chicago Tribune
Eddie Lampert, chairman and CEO of Sears Holdings, said during a company's annual shareholders meeting that the $2.5 billion the company expects to generate from the sale of 254 properties to a real estate investment trust should "put to rest a lot of the doubters and skeptics" wary of the retailer's financial state after years of losses.
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Ex-Apple man wants to send gadget salespeople to your home
WIRED
Ron Johnson helped create the idea of the Apple Store, a store where carefully trained and identically attired people guide you towards the purchase of your next digital gadget. Now, he wants to bring much the same thing into your home, your office and maybe even your local coffee shop.
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Removing the sugar coating
NRF
Going "undercover" helped candy company head see the realities of store processes.
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Kate Spade has invaded your closet
The Washington Post (tiered subscription model)
Fast-moving trends have many retailers struggling to define their identity, but Kate Spade New York is finding a place in affluent women's closets by churning out sleek, functional handbags and whimsical, ladylike clothes that are chic enough for an Upper East Side socialite.
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Missed an issue of Executive Briefing? Click here to visit Executive Briefing archive page.


Macy's Backstage aims to be your new destination for bargains
The Washington Post
Macy's is launching a new fleet of discount stores that it hopes will help it better compete for bargain shoppers.
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Kohl's, Target flex fitness flair
MediaPost
While American women's fondness for yoga pants may seem endless, both Kohl's and Target are guessing that their appetite for $100 versions might be stretching thin.
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Suppliers wonder how they fit in with Target's new priorities
Star Tribune
Some of Target's suppliers are on edge. Since Brian Cornell became its chief executive in 2014, the Minneapolis-based retailer made headlines by closing its Canadian stores and laying off nearly 2,000 corporate employees. He's also leading a re-evaluation of every product Target sells, prioritizing some categories while de-emphasizing others.
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US chains continue to up store opening plans
National Real Estate Investor
U.S. chain retailers have upped their store opening plans ever-so-slightly in April, confirming a positive outlook for the retail real estate sector going forward, according to the National Retailer Demand Monthly report from RBC Capital Markets.
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Costco CEO: Values, culture are key
Supermarket News
No matter how big a company gets, it must maintain its core values and its culture or it could fail, Craig Jelinek, chairman and CEO of Costco Wholesale Corp., said in a recent speech.
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TRENDING ARTICLES
Missed last week's issue? See which articles your colleagues read most.

    Obama Joint Chiefs pick's tough task: Cut pay (POLITICO)
Virginia: 10 things to know around the DOD in May (DVIDS)
DoD rejects Tricare reform, does not oppose military retirement changes (Military Times)
Obama sends pay, retirement commission recommendations to congress (U.S. Department of Defense)
'Ryan-Murray II' might fall to 'cardinals' (Defense News)

Don't be left behind. Click here to see what else you missed.


C-STORE NEWS


Who are consumers favorite retailers?
CSP
And what are the top five consumer drivers in deciding which store to visit?
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Analyst bullish on state of convenience
CSP
Wells Fargo Securities LLC analysts remain bullish on convenience following their review of the NACS State of the Industry Summit that took place recently in Chicago. In a research note, senior analyst Bonnie Herzog said she believes positive trends in the convenience-store sphere will continue as "the industry is embarking on a new era of sophistication and growth."
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Whole Foods to launch 'convenience' stores
CSP
Whole Foods Inc. co-CEO Walter Robb teased during the company's latest earnings call the launch of a "new, uniquely branded store concept unlike anything that currently exists in the marketplace."
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E-cigarette tax bill update
CSP
Since the beginning of this year, 22 states and the District of Columbia have introduced bills that would assess an excise tax on electronic cigarettes and nicotine liquid solutions used in e-cigarettes. With some state legislatures already adjourned and other states moving closer to adjournment for the year, the picture on e-cigarette taxes is becoming clearer.
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Missed an issue of Executive Briefing? Click here to visit Executive Briefing archive page.


The drug store of the future should not compete with C-stores
CSP
Chain drug stores should position themselves for the future by experimenting with paradigm-busting store prototypes that rethink business-as-usual approaches, said Joseph Bona, president of branded environments for brand agency CBX, in a column for Chain Drug Review.
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Dr Pepper Snapple Group buys into Bai brands
CSP
Dr Pepper Snapple Group has taken a minority stake in Bai Brands, the makers of Bai 5, as it often does with its "allied brands," beverage brands that are part of DPSG's distribution system but remained independently owned.
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Wal-Mart to Go gets the gold
CSP
The Association for Retail Environments recently honored api(+), Tampa, Fla., with its gold award in the 2015 ARE Design Awards in the convenience-store category for its design of the Wal-Mart to Go small-format concept.
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MWR NEWS


MWR welcomes new marketing manager
MIssile Ranger
White Sands Missile Range Family Morale Welfare and Recreation welcomes Mark Vest, Family and Morale, Welfare and Recreation's new marketing manager.
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Solicitation for commercial sponsorship and advertising
FedBizOpps.gov
The 66th Force Support Squadron on Hanscom Air Force Base has commercial sponsorship and advertising opportunities available in of support installation Morale, Welfare and Recreation programs. Potential sponsors /advertisers may select from a wide range of installation facilities to advertise.
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Executive Briefing
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