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PRESIDENT'S MESSAGE

CALL TO ACTION ALERT

Attention Executive Briefing Subscribers:

The Senate Armed Services Committee's version of the Defense bill drastically cuts critical commissary funding and makes legislative changes enabling these cuts ... and goes further in setting in motion privatization of these operations.

Attacking this benefit is just plain wrong! This benefit is important to military families. They save on average 30 percent on their groceries, and at some locations as much as 50 percent or even higher. It is critical to helping military families make ends meet while providing their families with wholesome and healthy food.

The Senate Committee's actions will destroy this benefit that the military has provided for more than 100 years, putting thousands of military family members out of work at the same time the Administration and the Department of Defense is instituting programs to get more family members and veterans hired.

The Committee also plans to privatize the stores to outside profit making grocery chains, squandering billions of dollars worth of commissary stores that military families have paid for out of their own pockets. We fear private industry will cherry-pick the larger military grocery stores and set the smaller ones adrift, disrupting the existing supply chain that anchors support for overseas and remote U.S. stores.

We understand the need to reduce costs and commissaries have done just that — reducing the cost of operations nearly 40 percent. If all Defense programs were this efficient, we wouldn't have a budget problem.

The Committee action ignores and is in direct opposition to a Commission that the Committee itself authorized to look at the problem just over one year ago, and after thorough analysis concluded that the benefit was valued and worth preserving.

The cuts occur without the benefit of a report that the Committee itself requested and hasn't yet been provided to Congress.

The Committee actions also threaten the financial viability of exchange operations, which will see a near 75 percent drop in earnings and a $200 million drop in dividends — affecting their ability to finance a multitude of military community support programs.

We continue to urge Congress to study the facts and assess the broad range of direct and indirect consequences before allowing radical and irreversible changes to these critical EARNED benefits!

Please urge your Senators to:
  • Maintain commissary funding at its current level and reject the plan for privatizing the commissary system and pilot program.
  • Support Senator Inhofe and Senator Mikulski's amendment calling for a report to assess the viability of privatizing the commissary system prior to the development of any plans to pilot programs to privatize commissaries without careful analysis.
We've written the letters for you and it only takes 60 seconds. Every voice counts!


Take Action Today!


It is your right and duty as an American to let our elected officials know your views on their proposed actions. Just click on the take action button above and you will be taken to The Coalition to Save Our Military Shopping Benefits page to send a letter to the Senate expressing your views. Make your voice count!



Patrick B. Nixon
President, American Logistics Association






WASHINGTON UPDATE


Commissaries would be fully funded under House bill
Military Times
Battle lines may be forming between the House and the Senate over the future of commissaries.
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Commissary privatization stokes concern among critics
Military Times
The Obama administration has joined the growing chorus of critics of a Senate proposal that takes steps to privatize commissaries.
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$579 billion defense bill passed by House panel
Military Times
House appropriators advanced a $579 billion defense budget bill for fiscal 2016 that Republicans lauded as a responsible step toward funding national security and Democrats decried as another step toward fiscal chaos.
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Senate plowing ahead on $612 billion defense policy bill
The Associated Press
The GOP-led Senate plowed ahead on a $612 billion annual defense policy bill despite a White House veto threat and the Democratic leader's claim that it is an exercise in futility.
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Cut 'pure overhead,' Navy secretary Mabus says: DFAS, DLA, DOT&E
Breaking Defense
In what looks very much like an opening shot in a fundamental fiscal battle between the four armed services and the Office of Secretary of Defense, Navy Secretary Ray Mabus came right out and said we should preserve fighting forces by cutting Defense Department agencies that are "pure overhead."
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Military retirement reform gets Pentagon support
Military Times
The effort to overhaul the military retirement system is entering its final phase after the Pentagon's top brass has offered a detailed critique of the legislation that is winding its way through Congress.
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House panel schedules DoD spending markup
Defense News
The House Appropriations Committee will take up its nearly $600 billion 2016 defense spending bill next week.
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McCain's NDAA: It's Complicated
Defense News
Sen. John McCain's first defense policy bill is a reflection of the Armed Services Committee chairman: bold and complicated. It is the kind of legislation that in one breath proposes lower aircraft carrier cost caps but in the next flirts with potentially costly design changes.
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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
June 15 ALA NY Chapter 2015 West Point Charity Golf Outing
June 18 2015 Hampton Roads Luau & Golf
June 26 Europe Chapter Charity Golf
Oct. 26-28 68th Annual Convention


MILITARY RESALE STUDY


Eligible military resale customer:

If you are an eligible patron to your local commissary and military exchange, we would greatly appreciate your participation in a 20-25 minute survey being conducted to better understand your grocery shopping habits. This work is part of a study commissioned by the National Defense Authorization Act for 2015 and is a critical component of maintaining and expanding the important benefits of the military resale system. Your input will ultimately be an important component to a study that will go to Congress later this year on the best direction to take the military resale system. In addition to your opinion, we would appreciate the input of any other members of your family that use Commissaries or military exchanges as your dependent, so please forward this email and link to any eligible family members as well. If you choose to participate in this voluntary survey, your answers will be completely anonymous and analyzed in combination with other members' responses, so please give us your candid feedback. This survey will be open through this week, and you will be able to respond any time day or night. We greatly appreciate your time and input. Thank you in advance for your participation!

Link HERE to access the survey website.

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COALITION UPDATE


National Military Family Association supports amendment to protect commissaries from privatization
NMFA
The National Military Family Association has long been an advocate for improving the quality of life of service members and their families, who have sacrificed greatly in support of our Nation. One of our highest priorities is protecting military families' earned benefits, including the savings achieved by shopping at the commissary. For this reason, we support your amendment to S. 1376, the National Defense Authorization Act for Fiscal Year 2016, which would require a report assessing the viability of privatizing the commissary system before implementing any such changes ... Thank you for introducing this important legislation to protect the quality of life of military families.
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American Military Retirees Association supports Inhofe-Mikulski amendment
AMRA
The American Military Retirees Association thanks you for introducing an amendment to H.R. 1735 which proposed an alternative to Section 652, relating to a plan to privatize the defense commissary system ... Like you, the American Military Retirees Association believes that privatization provides the potential for negative impacts on military service members, family members and retirees and that the risks of such change are too great to implement without further analysis and study.
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National Military and Veterans Alliance opposes commissary cuts, privatization
NMVA
We strongly oppose the Senate Armed Services Committee's FY16 National Defense Authorization Act, which mirrors the administration's budget proposal to slash critical commissary funding, makes legislative changes enabling these cuts and goes further in setting in motion privatization of these operations. We urge the Senate to reject these actions, which will destroy the commissary benefit, raising prices 25 to 30 percent and breaking faith with our service members and their families. NMVA also opposes the report on privatizing the Defense Commissary Agency, and the pilot program on commissary privatization. At the very least, this will fragment a well functioning system, and would take a non-profit entity and turn it over to grocery chains at the expense of military families relied upon savings.
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Coalition warns Senate against radical, irreversible changes to critical benefits
The Coalition to Save Our Military Shopping Benefits
We strongly urge the Senate to roll back multiple attacks on the commissary benefit proposed by the Pentagon and passed by the Senate Armed Services Committee in the Committee's version of the FY16 National Defense Authorization Act. We also strongly oppose the Committee proposal that directs the Department of Defense to conduct a report on commissary privatization and the two-year pilot program on five major installations. Privatizing commissaries to outside profit making grocery chains places military families' relied-upon savings at the whim of private industry and squanders billions of dollars worth of commissary stores that military families have paid for out of their own pockets.
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Coalition launches call to action urging members to write their Senators
The Coalition to Save Our Military Shopping Benefits
The Senate Armed Services Committee's version of the Defense bill drastically cuts critical commissary funding and makes legislative changes enabling these cuts ... and goes further in setting in motion privatization of these operations. Please urge your Senators to: Maintain commissary funding at its current level and reject the plan for privatizing the commissary system and pilot program; Support Senator Inhofe's amendment calling for a report to assess the viability of privatizing the commissary system prior to the development of any plans to pilot programs to privatize commissaries without careful analysis.
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Coalition urges Facebook followers to take action
Save Our Benefit
This week, the U.S. Senate is debating amendments that can severely impact or destroy EARNED commissary benefits. We can not over emphasize the importance of taking action and your voice counts! Don't assume someone else is speaking up. We've already written the letter. It'll take just 60 seconds for you to email it to your Senators. Once you've sent the email, come back, share with your friends, get them to send letters and then comment on this post.
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Joining Forces announces new executive director
White House
On behalf of first Lady Michelle Obama and Dr. Jill Biden, we are pleased to welcome United States Air Force Colonel, select, Nicole Malachowski, as the new Executive Director of Joining Forces. We are excited to have Nicole as part of the Joining Forces team, where she will continue the initiative's work to support our veterans, service members and military families. Nicole is the first woman to serve as the Executive Director of Joining Forces.
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Sen. Graham to retire from Air Force Reserve
The Hill
Sen. Lindsey Graham, R-S.C., plans to retire from the Air Force Reserve, having served more than three decades in the military. Graham's military service includes active-duty stints in the Air Force, the South Carolina Air National Guard and the U.S. Air Force Reserve. Graham will soon hit the mandatory retirement age of 60 will now be part of the retired reserves.
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COMMISSARY ANNOUNCEMENTS

Commissary Web Posts

The following commissary items were posted to the ALA Website between 10 AM, May 28, 2015 and 10 AM, June 4, 2015:

PROMOTIONS:
- DP #14, Alaska Promotion and Shipper/Pallet/OTB Quantities.
- DP #18, Publishing of Shippers, Pallets, OTB Early.
- 2015 Cookies/Crackers/Fruitcake Seasonal Package.
- 2015 Ham Seasonal Package.
- 2015 Baking Seasonal Package.

NOTICES TO TRADE (NTT)
- None Received.

MISCELLANEOUS:
- Adds/Changes/Deletes, Week 15-22.
- CRV Values as of May 31, 2015.
- DeCA April 2015 Sales Data.
- DeCA CONUS Guard/Reserve On-Site Sale Schedule, June 3, 2015.




FEDERAL BUSINESS OPPORTUNITIES


Miscellaneous Operating Supplies and Paper Bags for CONUS, Puerto Rico, Alaska, Hawaii, and the Pacific Theater
FedBizOpps.gov
The Defense Commissary Agency (DeCA) has a requirement for miscellaneous commercial operating supplies and paper grocery bags necessary to operate a retail grocery chain.
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Shelf Stocking, Receiving/Storage/Holding Area (RSHA), and Custodial Services
FedBizOpps.gov
Solicitation Number: HDEC08-15-R-0015. Agency: Other Defense Agencies. Office: Defense Commissary Agency. Location: Contracting Bus Unit/Commercial Activities (HDEC08).
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Shelf Stocking, Receiving/Storage/Holding Area and Custodial Operations at the Fort Stewart Commissary for the Defense Commissary Agency located at Fort Stewart, GA.
FedBizOpps.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, Fort Stewart Commissary, located at Fort Stewart, Georgia, in accordance with the Government's Performance Work Statement (PWS).
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Material Handling Equipment Maintenance and Repair Services
FedBizOpps.gov
Solicitation Number: HDEC04-15-R-0026. Agency: Other Defense Agencies. Office: Defense Commissary Agency. Location: Contracting Business Unit/Equip, & Maint Div (HDEC04).
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Looking for more federal business opportunities? Search here.


COMMISSARY NEWS


Hector Granado named new DeCA East Area director effective May 31
EPR Retail News
Hector Granado is the new DeCA East Area director, taking the reins of DeCA's top area in terms of sales effective May 31. "With his wealth of experience and personal accomplishments both in the field and at headquarters, Hector brings a level of expertise and leadership qualities that will ensure the continued success of the East Area," said Keith Hagenbuch, executive director of DeCA's Store Operations Group.
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Produce firms awarded supply contracts
The Packer
Several produce firms were awarded multimillion dollar contracts to provide fresh fruits and vegetables to the Defense Commissary Agency.
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PMA weighs in on FDA's FSMA implementation plans
Progressive Grocer
The Produce Marketing Association once again made a case for increased funding of the federal food safety budget, including the appropriation of an additional $110 million, in written comments submitted to the Food and Drug Administration's proposed Food Safety Modernization Act.
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Flowers Foods to focus on breakfast, specialty breads
FoodNavigator-USA
Flowers Foods is planning to expand beyond its traditional white bread market to offer breakfast and specialty breads to appeal to changing consumer tastes, CEO Allen Shiver said. Growth in these categories would come organically and through acquisitions, said Shiver, who declined to comment on rumors that that company is eying Hostess as a potential acquisition.
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This country just banned grocery stores from throwing out food
ThinkProgress
Food waste costs countries around the world billions of dollars each year and is a significant contributor to greenhouse gas emissions, but France's action was spurred by another type of crisis. Mired in an economic slump, France has seen an growing number of people living off food scavenged from waste bins outside grocery stores, which has prompted an outcry from aid workers and activists.
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US consumers prefer brick-and-mortar shopping
Candy & Snack Today
A survey from Nielsen indicates that 57 percent of U.S. shoppers view brick-and-mortar shopping as a fun day with the family, and many prefer visiting physical stores to shopping online. Comparatively, 60 percent of Asia-Pacific and Latin American countries express an interest in future online shopping, 52 percent do in North America and 45 percent do in Europe.
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Whole Foods is innovating in the wrong direction
Forbes
Whole Foods Market plans to start a new store format to appeal to the "millennial generation." Co-CEO John Mackey describes the yet-to-be-named concept as a "streamlined, hip, cool, technology-oriented store that has lower capital, perhaps a little less labor cost and lower prices." Most of the coverage of the announcement has expressed concerns that value-oriented stores will cannibalize existing Whole Foods stores and damage value perceptions of the brand.
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9 natural food trends influencing CPG brands in 2015
FoodNavigator-USA
Nine natural food trends will drive innovation in the consumer packaged goods and food service industries this year, according to Sterling-Rice Group, including hemp protein, optimized milk and other dairy products, produce and vitamin powders, turmeric, mushrooms and roots, nut grains, nut-based dairy-free cheeses, sustainable packaging and bold global flavors.
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Totally no recall of food recalls
The Packer
The Food Safety Modernization Act states that retailers should notify consumers when there is a food recall, but there is a difference of opinion on how that should be done. The Center for Science in the Public has insisted that the Food and Drug Administration immediately require retailers to alert consumers at store level about food recalls.
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EXCHANGE ANNOUNCEMENTS


Speed Commerce partners with Veterans Canteen Service to provide end-to-end e-commerce
Congoo
Speed Commerce Inc., a leading provider of e-commerce technology and omnichannel solutions for retailers, has partnered with the Veterans Canteen Service, the resale entity for the Department of Veterans Affairs, to build and operate a direct-to-consumer e-commerce solution, including order management, fulfillment and customized customer care.
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INDUSTRY NEWS


Amazon launches free same-day delivery for Prime members in select areas
Chain Store Age
Amazon is upping the ante with physical retailers with its launch of free same-day delivery for orders of more than $35 to members of its Prime program.
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Lilly Pulitzer's Target disaster was actually a success
Harvard Business Review
At first blush, the recent rapid sell-out of the new "Lilly Pulitzer for Target" line — and the backlash it generated from disappointed customers — seems like a major screw-up by both companies. But it actually contains the keys to successful expansion for other high-end brands and designer labels and to improved brand perceptions for other mass retailers.
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Michael Kors' weak sales suggest it's falling out of fashion
Fortune
The once red-hot fashion brand reported a surprisingly sharp decline in comparable sales, suggesting its aggressive expansion is hurting Kors' luxury aura.
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Costco Q3 profit up, sales down
Chain Store Age
Costco Wholesale Corp. reported rising profit in the third quarter of fiscal 2015. But a surging dollar and low gas prices resulted in sluggish sales growth and an unusual same-store sales decline, the company's first quarterly drop since 2009.
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Big data brings relief to allergy medicine supply chains
The Wall Street Journal (tiered subscription model)
Allergy sufferers in the U.S. have had a particularly rough time this spring, with April and May pollen levels in New York frequently surging 25 percent or more above the monthly average for the last three years, according to data from IMS Health Inc.
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Union dockworkers ratify labor contract for US West Coast ports
Reuters
Union dockworkers at all 29 U.S. West Coast ports have voted overwhelmingly to ratify a contract agreement reached in February with shipping companies and terminal operators to end months of labor strife that snarled trans-Pacific trade.
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Sears reborn: Spinoff company eyes Milwaukee market for 'store within a store' concept
Milwaukee Business Journal
A "store within a store" concept meant to fill the gaps left by Sears closings could be coming to the Milwaukee market, with locations around southeast Wisconsin under consideration.
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J. Crew is alienating its most important customers
Business Insider
J. Crew is losing the young, professional women who used to be the brand's biggest cheerleaders. The brand's sales are tanking as shoppers turn elsewhere, writes Elizabeth Holmes at The Wall Street Journal.
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Wal-Mart expands its commitment to hiring veterans
NRF
Two years ago, Wal-Mart made a commitment to hire 100,000 military veterans by 2018. The Veterans Welcome Home Commitment guarantees a job offer to any U.S. veteran who has been honorably discharged from active duty since the program's launch. Under the guidance of Senior Director of Military Programs Gary M. Profit, the company has hired more than 92,000 veterans since their pledge in 2013 and has decided to expand their program to hire 250,000 veterans by the end of 2020, which would make veterans close to 20 percent of its U.S. workforce.
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TRENDING ARTICLES
Missed last week's issue? See which articles your colleagues read most.

    Maryland: AAFES deputy director visits post Exchange (Fort Meade Soundoff)
Campbell Soup still struggling to gain momentum (Food Business News)
Providing for the living honors the dead (The Gazette)
Special report: The war on big food (Fortune)
Issue tracker: Appropriations season (Defense News)

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


C-STORE NEWS


Reynolds-Lorillard wins FTC approval with 3-to-2 vote
CSP
Reynolds American Inc. and Lorillard Inc. announced that the U.S. Federal Trade Commission has accepted, by a 3-to-2 vote, a proposed consent agreement authorizing Reynolds American to close its proposed acquisition of Lorillard.
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New Convenience-Store Roundup for April 2015
CSP
This edition of New C-Store Roundup features new convenience-store openings, sales, acquisitions and store closings with listings for the month of March.
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Expert insight: Where are gas prices headed?
CSP
After a dramatic six-month decline in fuel prices and with the price at the pump peaking for the year this Memorial Day Weekend, CSP Daily News asked oil analyst Walter Zimmermann for his take on where things will go from here. Here is his exclusive analysis.
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7-Eleven takes its place in global retail ranking
CSP
For the first time, 7-Eleven Inc. joined BrandZ's 10th annual list of the most valuable global brands for 2015, the only convenience-store chain to make the list. While it did not rank in the overall Top 100 Most Valuable Global Brands 2015, it took the No. 17 spot on the retail category list, valued at $7.49 billion
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Beer losing share to wine in C-stores?
CSP
The beer category eked out just a 0.7 percent increase in case sales in convenience stores in 2014, according to IRI data, and a new survey shows growing evidence that consumers — from baby boomers to millennials — are continuing to move from beer to wine as part of a growing interest in better health.
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Taking heat for bad goods
CSP
Vases made so thin they break when picked up, recliners that flip over backwards or even baby cribs painted in lead have all been part of recent liability actions taken against retailers caught selling those products, according to speakers at a recent CSP forum on reducing risk.
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MWR NEWS


New director offers fresh take on JBLM sports programs
Northwest Guardian
Aaron Jones might not have worked in the downrange field as a member of the armed forces, but he can relate to some of the stresses of being a service member after spending more than six years at various Army installations working in athletic programs.
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