Here is our 2016 report, our first attempt at understanding and influencing the supermarket industry in our state.
You can read the full 33 page report, "Many Miles To Go," at the link below, or start with the Executive Summary on this page. Here is the press release.
You can read the full 33 page report, "Many Miles To Go," at the link below, or start with the Executive Summary on this page. Here is the press release.
| many_miles_to_go.pdf |
--------------------------------------------------------------------- "MANY MILES TO GO:
LOCALLY-GROWN ORGANICS IN NC SUPERMARKETS"
EXECUTIVE SUMMARY
They have a ways to travel. No, we don’t mean the produce, meat, dairy and eggs in your supermarket (although these are mostly from far away.) Based on our research, the food retailers themselves have a ways to go if they are to meet growing customer demand for organic and sustainably-grown food that is produced locally or even regionally. The companies also have a distance to travel to achieve stronger communication about farms and farmers in their stores and on their websites. Today, with a few exceptions, company performance does not match the marketing.
Background
Demand for locally-grown and sustainably-produced food is growing. Studies have shown that shoppers of all demographics are willing to pay a premium for this type of food. While farmers markets have built up the market, supermarkets represent the places where the most affordable and convenient access to this food might be found.
Sixteen companies or brands are operating over 950 food stores in North Carolina. This represents an estimated $7 billion in annual food sales and millions in profits. Eight of these companies are privately-held and eight are public.
The study established a 100 point ranking scale to estimate the local-organic performance of the sixteen companies. The ranking is based on our five best practices for local-organic procurement and marketing.
Best practices include:
1. establishing concrete goals, plans and procedures;
2. staff training, company liaison with farmers and buyer-farmer networking;
3. accurate and rich in-store labeling of a reasonable variety and volume of product;
4. special attention to the challenges of sourcing high quality local eggs, meat and dairy;
5. investment in rebuilding the local and organic food infrastructure.
Key Findings
Only one company, Whole Foods Market, was given a passing grade of 72 out of 100 points, based on strong in-store local-organic performance and longstanding relations with local farm groups. This leadership may be waning amidst WFM’s financial struggles. Two other companies, Lowes Foods and Ingles, are engaged with local foods in a meaningful way, building on the assistance of local sourcing programs. Their in-store performance reflected this work.
Walmart and BI-LO show corporate leadership and planning, but weaker in-store performance, which hopefully will improve soon. Harris-Teeter demonstrates innovative marketing, but needs to build stronger relations with the farm community.
Seven companies could not muster a dozen points out of 100 (ALDI, Costco, Piggly-Wiggly, Publix, Target, The Fresh Market and Trader Joe’s.)
Kroger and Earth Fare have very little local on the shelves, despite making local claims. Kroger, we believe, is poised to move in a better direction. None of the sixteen retailers was completely immune from the temptation to stretch their marketing somewhat.
Sloppy and incomplete signage is the rule, not the exception. Smart technology has not yet been employed to simplify and enhance the tracking and communication of local and organic product information.
There exist opportunities for partnership with an eager and organized local and organic food movement, especially university and non-profit programs. So far, these are being greatly under-utilized.
An investment of just one day's profits from supermarkets in the state into local food infrastructure and training could produce as much as $1 million per year, and could leverage an additional $4 million. Such investment could serve to greatly grow the existing local-organic product for sale at food retailers, increasing their profits.
Recommendations
Supermarket chains and food retailers can:
> work individually and collectively to more fully adopt the five best practices regarding goals, planning and procedures; training and networking; labeling; eggs, meat and dairy; and food infrastructure investment.
> more fully embrace the connection between local and organic, understanding that local is more than a marketing gimmick. This would meet the desire of the growing group of their customers for sustainably-grown, healthy food that is also contributing to the local economy, protecting nearby open space and water quality, and is grown by farmers that are near enough to know and visit.
> create standard language and labels for “local,” either one by one or together as an industry, and stop a race to the bottom.
> focus energy on the well-known lists of non-organic fruits and vegetables that are likely to have pesticide residue and prioritize those for developing local supply that is organic. (Consumer Reports and the Environmental Working Group have complimentary lists.) Items on these lists will likely see continued market growth. Examples include strawberries, leafy greens, green beans, cucumbers, tomatoes, peppers and carrots.
> communicate to their customers better about seasonality issues, taking advantage of season extension opportunities and climate differences in our state to source more local product, while at the same time moving customers away from items that are completely out of season like the tasteless winter tomato.
> explore advanced technology to increase supply chain transparency and traceability. This can help grocers to better organize information and communicate with customers, while driving down costs for that effort. (We are not advocating ubiquitous QR codes or an end to paper signs, but rather appropriate learning from technology like airport timetables and convention center virtual kiosks.)
> explore opportunities for supporting the growth of locally-processed canned and frozen foods, and the acceptance of “ugly” produce, all part of a greater local food supply than might otherwise be thought possible.
> team up with local chefs and cooking teachers to spread cooking knowledge about seasonal foods, including providing cooking spaces in stores and compensation for training.
> introduce more locally-grown organic items into prepared foods.
The food movement can:
> recognize and praise the local-organic efforts that some food retail companies have already made and encourage those that are starting to do more.
> enthusiastically buy local-organic product as it becomes more available in stores.
> celebrate home cooking, by encouraging smart grocery shopping for seasonal, locally-grown organic ingredients, and spreading traditional cooking knowledge.
> continue to train farmers to understand the constraints of large retailers around issues like GAPs, insurance, volume and pricing, and help them to overcome these hurdles where possible.
> support programs that are partnering with farmers and supermarkets like Carolina Farm Stewardship Association, the Center for Environmental Farming System’s NC Growing Together project, Got to Be NC and the Appalachian Sustainable Agriculture Project.