local organic y’all cfsa 2016

Local Organic Y’AllA New Kind of Food Advocacy or Food Movement 4.0

LOCAL ORGANIC Y'ALL

OUR MISSIONExpand access to & increase

benefits from locally-grown organic foods

by engaging with the mainstream supermarket and wholesale food

industries.

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• THE PROBLEM• OUR STRATEGY• “MANY MILES TO GO”• HOW YOU CAN HELP

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THE PROBLEM

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# 7 nationally in growth of farmers markets

2004 2010 20140

50

100

150

200

250

300Farmers Markets in

NC

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$39 Billion

in the USA

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Salinas Valleymonocrops

Horizon mega dairy

Horizon mega dairy

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Eating Out $16 Billion

Supermarkets $7 Billion

Other $2 B Farmers markets $30 million

Total Food Spending, NC, 2014

Every time someone spends $1 at a NC farmers market, $832 is spent on food from the industrial system.

$25B

The demand…

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The supply…

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$2.9 billion $4.8 billion

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Can supermarkets be a part of the solution?

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“Organic, natural and free-from are big business and trends that grocers can continue to leverage for the foreseeable future.” -- Jim Dudlicek, Editor

Progressive Grocer

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“A key driver of why consumers shop a particular supermarket, the produce department is a crucial part of the decision-making process for grocery shoppers. When executed successfully, the produce department exudes quality, freshness, convenience and a healthy lifestyle, and it’s where shoppers want to be.”

-- Progressive Grocer’s 2016 Retail Produce & Floral Review

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GREEN-WASHINGfalsely appearing to be eco to sell stuff

LOCAL-WASHINGfalsely appearing to be local to sell stuff

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THE PRICE AND AFFORDABILITY ISSUESupermarkets price their products based on all kinds of factors including the wholesale cost, the retail price potential, set margins, loss leader needs or even the strategy to temporarily lower all their prices to bring in new customers or raise them to increase margins. The pricing of local organic foods is unpredictable and driven by many possible factors.

LOCAL ORGANIC Y'ALLeducating the consumer

LOCAL ORGANIC Y'ALL Source: Consumer Reports’ “From Crop to Table”

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How do we define “local”?

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HYPER-LOCAL?

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STRATEGY

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Local Organic Y’All• Address the private sector rather than public policy (CFSA)• Address big money part of food system • Address companies that have public brands that they care deeply about, such as supermarkets•Make a big ask

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Build on existing partnerships.Refine and expand them.

farmer-buyer meet-up

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• Independent project -- no university or government ties•No corporate funding• Abundance Foundation is fiscal sponsor to facilitate small donors (crowd sourcing)• Low overhead

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Protect the

brand!

Facebook is scary!

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Encourage supermarkets and wholesalers to adopt best practices

1. Plans, goals, internal procedures2. Corporate and store liaison, staff

training & farmer networking3. Accurate and ample labeling &

signs4. Address meat, eggs and dairy5. Invest in local food infrastructure

BEST PRACTICES

THE BIG ASK

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Real investment by the S&W industriesinto local-organic food infrastructure/training.

$25M

One day’s profits =

$1,000 per store

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$1,000 per storeX

961 stores statewide=

$961,000 per year

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From Bill Moyer:“Doing Democracy”

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“MANY MILES TO GO”

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A report card…

LOCAL ORGANIC Y'ALLRankings can create influence, which is power.

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LOCAL ORGANIC Y'ALL

Research method

1. Visited stores2. Reviewed company

websites3. Tracked news media4. Contacted companies

directly

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Aldi KrogerBI-LO Lowes FoodsCostco Piggly-WigglyEarth Fare PublixFood Lion TargetThe Fresh Market Trader Joe’sHarris Teeter WalmartIngles Whole Foods Market

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Appearing soon…

Lidl Sprouts Wegman’s

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Test your supermarket IQ

Which supermarket company has the most grocery stores in North Carolina?

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A: Food Lion (225 stores)

runner up: Kroger/HT (144 stores)

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Which supermarket company is the most concentrated in North Carolina?

(NC stores/total USA stores)

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A: Lowes Foods (73%)

runner up: Ingles (36%)

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LET’S TAKE A TRIP THROUGH NORTH CAROLINA’S SUPERMARKETS

LOCAL ORGANIC Y'ALL WalMart

Fresh Market

Costco

Weaver Street Market

Durham Co-op Market

Durham Farmers Market

1

1

1

1

1

3

4

4

5

7

28

36

local organic PRODUCE items Oct 201536

287

5

4

3

1

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Not much local in those boxes

• NC stores/US stores: 59/1,400

• HQ: Chicago/Germany, private

• No local focus, one of the world’s largest private companies. Not their business model.

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Local foods don’t exist

• NC stores: 49/1,800

• HQ: Minneapolis, public

• Have talked about upping their produce offerings; as yet, most generic experience possible.

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The bell is not ringing for local

• NC stores: 9/450

• HQ: Los Angeles/Germany, private

• Secretive supply chains; very little local on offer -- not their business model.

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Celebrity chefs & not much product


• HQ: Florida, private

• Making an effort but information in the stores is confusing and there is little local product.

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The “buy local” memo got to marketing, not the buyers

• NC stores: 16/1,120

• HQ: Florida, private

• New entry to NC with a reputation for excellence. Very little local.

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With so little local, is it fresh?


• HQ: Greensboro, private

• Little local; could easily be doing more considering customer base. Take-over target. Accurate signage.

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Big organic packages


• HQ: Washington state, public

• Need tighter definitions for local. Local is not their business model.

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Lathem Farms is 5 hours, 330 miles away.

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Don’t stick with the pig if you like local


• HQ: NH, private

• Local milk, but little local produce, few organics, little info.

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Plenty of room for improvement

• NC stores: 14/2,800

• HQ: Ohio, public

• Big unsubstantiated claims, not much product. Parent of Harris Teeter.

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K

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It’s about price, not place

• NC stores: 170/11,500

• HQ: Arkansas, public

• Big public commitment to buy local, but where’s the product? Generic stores with weak signage.

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43 miles away

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No lying -- not much product either

• NC stores: 225/1089

• HQ: Salisbury/Brussels, private

• Modest store offerings, fair and attractive labeling and signs. Lots of room to grow.(most NC stores)

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Oops!

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“Local” on the door, not in the store

• NC stores: 9/36

• HQ: Asheville, private

• Tons of organic, good meat & dairy, but local produce is just not there. Take-over target.

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Not bad, but not a “farmers market”

• NC stores: 130/242*

• HQ: Charlotte/Cincinnati, public (*owned by Kroger)

• Kudos on local supply and labeling. “Farmers market” logo should go.

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LOCAL ORGANIC Y'ALL

Sincere effort that needs crafting


• HQ: Black Mountain, private

• Works with ASAP. Promising local sourcing, but sloppy presentation.

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LOCAL ORGANIC Y'ALL

A local food marketing explosion


• HQ: Winston-Salem, private

• Works with CEFS. Promising local sourcing, but product can’t keep up with hype.

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Doing well and could do better


• HQ: Austin, TX, public

• Lots of organic, good meat & dairy and promising local products with rich/clear signage in spots.

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Report conclusion Lots of opportunity for improvement. Lots of angles for food activists, farmers and local suppliers to approach stores.

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HOW YOU CAN HELP

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Spread the word• Tell friends, family and colleagues about our project and its research• Facebook• Twitter• Link to your website• Follow our project blog

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Contact supermarkets• Talk with an in store manager•Write to the contact page on supermarket websites• Post on supermarket Facebook pages• Contact them old school: letters, calls, email

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Support our work• Donate money• Connect us with other small donors• Send us your comments, strategy ideas and observations• Create content on this topic

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Let’s use our power!

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www.localorganicyall.org