CGA: Bill Singles Out Fresh & Easy

JULIE GALLAGHER

EL SEGUNDO, Calif. — A bill that would force Fresh & Easy Neighborhood Market to introduce manned checkouts or stop selling beer and wine in most stores has reached California Gov. Jerry Brown's desk.

The California Grocers Association is lobbying for the veto of AB 183.

The union-backed measure would prohibit alcoholic beverage sales at self-service checkouts across the state. “This applies equally to union and non-union stores,” explained Michael Henneberry, communications director for the San Jose-based United Food and Commercial Workers Union Local 5.

But opponents contend the proposed law singles out nonunion Fresh & Easy, the only grocer in California to operate a self-serve only checkout model in 130 stores.

“This bill is a solution looking for a problem,” said Ron Fong, president and chief executive officer of the California Grocers Association, Sacramento. “It's aimed directly at Fresh & Easy because [the UFCW] is looking to shut it down.”

Self-serve checkouts are designed to lock up when beer, wine or liquor is scanned for purchase by a shopper. While all stores require employee intervention, some allow for remote overrides from a nearby station. Though it prohibits the sale of alcohol to minors, California law does not mandate ID verification.

In the past, Fresh & Easy allowed for remote overrides but that has changed, spokesman Brendan Wonnacott told SN.

Now it requires face-to-face interaction. Employees are trained to check for signs of intoxication. Age verification is also mandatory for anyone appearing younger than 40. Shoppers who meet the requirements are permitted to proceed, but only after the employee scans a unique barcode.

Supporters of the legislation, including Mothers Against Drunk Driving, say that self-checkouts provide a way for teens to access alcohol since they've figured out how to avoid flagging mechanisms.

Another proponent, the San Diego-based United Methodist Urban Ministry, cited research that shows minors were able to “game” the system 70% of the time. One strategy involves scanning a 12-pack of soda and replacing it on the belt with an equal-weight beverage like a 12-pack of beer.

Fresh & Easy deters such attempts with a safeguard that applies to products that are the same size and weight as the beer and wine it sells, Wonnacott explained.

If a consumer scans a six-pack of Izze Sparkling Juice or Martinelli's apple juice, for instance, the system will require intervention. “When the item is scanned the same protections pop into place so an override has to occur at the check stand,” Wonnacott noted.

What's more, he said, is that records from the California Department of Alcohol Beverage Control indicate that nine out of 10 violations involving teens being sold alcohol between 2008 and 2011 occurred at liquor stores, convenience stores, gas stations and small local markets. Just 3% involved traditional grocers and far fewer took place at the self-checkout only chain.

“Only two violations from the thousands actually happened at Fresh & Easy,” Wonnacott said.

This is the third bill seeking to ban alcohol purchases at self-checkouts in California since 2007. Last year's measure was approved by the Legislature but vetoed by Gov. Arnold Schwarzenegger. Gov. Brown has until Oct. 9 to either sign or veto the proposal.

Its unclear how Fresh & Easy will proceed should the bill become law. “Right now our focus is on making sure the bill gets vetoed,” said Wonnacott. “We'll just have to see how things take shape.”