Executive Briefing – American Logistics Association

January 14, 2022

.PRESIDENT’S MESSAGE / WASHINGTON UPDATE

2022 resale headwinds and tailwinds There’s no shortage of challenges faced by military resale managers and their industry partners. But these challenges need to be balance with the inherent strengths of the military resale system that have and will sustain these programs going forward. On balance, the system is on a firm foundation and its tailwinds are more than adequate to overcome any headwinds. On balance, if resale programs were publicly traded, it would be a “buy” scenario. Here’s a rundown of the system assets and challenges.

ALA food service conference and expo March 17…companion commissary workshop being discussed for March 18. Virginia State University, Petersburg, Va. ALA is hosting a conference and expo for the military foodservice industry on March 17. We have engaged with DeCA officials to explore the possibility for a companion sales and marketing workshop March 18 to focus on driving customer patronage. Details forthcoming on the ALA site.

DeCA sales directory updated. Attached to this email is the latest DeCA sales team directory …

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.PENTAGON AND MILITARY NEWS

This week in Congress: 2022 starts with leftover work from 2021
Military Times
Both chambers of Congress return to Capitol Hill for the official start of 2022 legislative work, including a host of unresolved budget issues from last year. Lawmakers have until mid-February to agree on a final budget for federal operations in fiscal 2022 (which began last October) or risk triggering a partial government shutdown. Negotiations on that work are expected to resume immediately.

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New in 2022: Unfinished budget work will drag into February
Military Times
February will be a critical month not only for next year’s defense spending plans, but also for the current fiscal year budget as well. Typically, White House officials roll out their budget plans for the next fiscal year in mid-February, giving Congress the bulk of the year to debate funding levels and policy priorities.

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PRODUCT SHOWCASE

Bisek & Company, Inc. Military Resale Distributing Agent and Broker
Understands how important the benefit of the Commissary and Exchange is to the active duty and retired military service personnel. We will work with a manufacturer to bring their variety of products to this unique market. Bisek & Company’s sales team is dedicated to doing what it takes to keep those special shoppers coming back to the Commissaries and Exchanges. Contact Bisek & Company so we may help you better understand what it takes to succeed in expanding your role in this very special benefit. Contact Jennifer Harrell (jennifer@bisek.com) or Laurie Cust (laurie@bisek.com)

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US military elevates coronavirus restrictions in South Korea in wake of latest surge
Stars & Stripes
The latest surge of COVID-19 cases in South Korea has prompted the U.S. military to elevate its health-risk level and enact additional restrictions, including a ban on nonessential travel to Seoul.

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Japan-based troops start two weeks of travel restrictions to curb explosive coronavirus spread
Stars & Stripes
The U.S. military population in Japan is getting re-acquainted with Netflix queues and phrases like “essential services” again after a pandemic stay-at-home order took effect at bases across the country. U.S. Forces Japan and the Japanese government agreed over the weekend to reduce nonessential, off-installation travel by American service members, Defense Department employees and their families for two weeks to curb the spread of COVID-19.

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Service chiefs warn Congress: Full-year stopgap spending will disrupt PCSs, bonuses, training
Military.com
Reenlistment bonuses, permanent change of station moves, training exercises, sexual assault prevention funding and more could all be at risk if Congress doesn’t pass a regular Pentagon spending bill this year, top military officers.

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Biden budget release likely delayed until March: Sources
Roll Call
The White House appears to be aiming for release of President Joe Biden’s fiscal 2023 budget in March, according to multiple sources familiar with the matter, a month after the statutory deadline, which is the first Monday in February.

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WPAFB moves to HPCON Delta
Wright-Patterson AFB
Wright-Patterson Air Force Base transitioned to Health Protection Condition Delta on Friday, with a public health emergency in effect as of noon, due to rising numbers of confirmed COVID-19 “omicron” cases. “The Airmen at Wright-Patterson Air Force Base are our No. 1 priority, and we take every precaution necessary to protect their health and safety,” said Col. Patrick Miller, the 88th Air Base Wing and installation commander. According to Miller, the transition is done in accordance with the secretary of defense’s April 21 memo titled “Guidance for Commanders’ Risk-Based Responses and Implementation of the Health Protection Condition Framework during the Coronavirus Disease 2019 Pandemic.”

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.MILITARY AND RESALE NEWS

Global supply chain slowdown means empty shelves at US military commissaries
Stars & Stripes
Air Force spouse Valerie Jackson shopped the commissary on Wednesday at this Marine Corps installation because the shelves are much emptier at nearby Kadena Air Base. “The Kadena commissary is kind of lacking in supplies and we’re wanting tacos tonight,” Jackson, 31, told Stars and Stripes. “My husband went the other day and said that there was hardly anything left, like milk, sour cream, cheese.”

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Fort Hood celebrates opening of first active-duty on installation VFW post
Killeen Daily Herald
The Veterans of Foreign Wars hosted an installation ceremony for VFW Post 12209 at Fort Hood’s Phantom Warrior Center. The post, officially named CSM A.C. Cotton VFW Post 12209 after the first African-American command sergeant major of the 1st Cavalry Division, is the first VFW on an active-duty installation in the United States. Cotton passed away Sept. 7, 2021 in Killeen.

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Logistics: Are we headed for severe food shortages?
Cape Charles Mirror
Sysco Corp. is among the largest, if not the largest, distributor in the country for the food service industry. The wholesale company distributes food products, kitchen equipment and supplies, such as napkins and cleaning detergents. They are the wholesale food supply chain.

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A look back at 2021 on Wright-Patterson Air Force Base
Yahoo News
Throughout 2021, there were many significant milestones, events, awards and other actions that contributed to overall mission success as Wright-Patterson Air Force Base leaders, Airmen and civilian personnel continued rising above challenges from ongoing COVID-19 restrictions.

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.INDUSTRY NEWS

SpartanNash names Amy McClellan as chief marketing officer
Supermarket News
Amy McClellan, vice president of fresh merchandising for retail at SpartanNash, has been promoted to senior vice president and chief marketing officer. SpartanNash said that McClellan takes over the post effective immediately. In her new role, she will lead the Grand Rapids, Mich.-based grocery distributor and retailer’s marketing function and report to President and CEO Tony Sarsam.

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Retail predictions from 5 years ago: What did we get right?
NRF
A jumble of predictions for the coming year is already beginning to circulate. Prognosticators are weighing in on whether meta will be mega, if 2022 will be a breakout year for NFTs or if this will be the year shopping malls make a comeback. NRF has been publishing predictions annually for nearly two decades. With a practical view steeped in collective knowledge, some might say we have an edge. Still, there will almost always be trends that defy long-range forecasting: Hello, COVID-19.

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Walmart doubles down on delivering groceries straight into your fridge
CNN
Walmart is expanding its push to deliver groceries straight into customers’ kitchen fridges, even when they aren’t home. Walmart said that it plans to make InHome, its $148 annual delivery option, available to 30 million U.S. households by the end of the new year, up from six million today. Walmart will also hire around 3,000 workers to deliver orders for InHome, offering them an extra $1.50 an hour from most store jobs, which begin at $12 an hour.

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.FOOD SERVICE NEWS

New challenges for school nutrition programs
Foodservice News
Planning for the 2021-2022 school year includes preparation for breakfasts and lunches for the state’s pre-K through 12th grade students. After more than a year of working under COVID-19 pandemic constraints, school districts are operating typical summer meal programs and preparing for in-person food service in September. But they do so with growing concern about decreased participation, lower revenues and rising costs.

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From the publisher: ‘The new normal’
Foodservice News
Jared Pfeifer writes: “That’s a cliché I’ve heard many times over the last year. Heck, I’ve used it myself several times. But what is the new normal? Are things really that different now than they were at the start of 2020, or has it just been so long that we don’t know how to feel? I recently attended a conference in Dallas and it was the first business trip — and the first large event — for me since November 2019. While the Delta flight and Uber rides still required face masks and caution was still noticeable, the minute I stepped onto the conference floor that all went away. Hundreds of people filled the room with no masks to be seen and seemingly very little concern for distancing. People were shaking hands, visiting booths and packed together listening to presentations in a large ballroom. Nothing seemed different from how a conference looked back in November 2019. It felt strange. But, it also felt normal.”

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.MARK YOUR CALENDAR

Date	Event	More Information
March 17	Food Service Expo & Conference — Spring 2002	Virginia State University Petersburg, Virginia
June 8	Congressional Caucus and Public Advocacy Conference	Rayburn Bldg. Capitol Hill
May 2 – 6	Exchange Express Conference & Expo 2022	The Rosen Centre Hotel Orlando, FL
Aug. 15-17	25th Anniversary Daniel Akaka Hawaii Conference	Prince Waikiki Hotel Capitol Hill
Oct. 10-13	Annual Meeting	Norfolk Waterside Marriott Orlando, FL

Specific information on upcoming ALA events is posted regularly on the ALA website.

SAVE THE DATE!

EXCHANGE EXPRESS CONFERENCE & EXPO 2022
May 2-6, 2022
The Rosen Centre Hotel, Orlando, FL

ALA Meetings:

Exchange roundtable – Spring 2022 (location TBD—Tidewater area)
Commissary roundtable – Spring 2022 (location TBD—Richmond area)