Authenticity and Success in Marketing “Local” in Retail Grocery Settings

BFBL has found that as demand for “local” has increased, farmers have had to compete with products that are not “truly local” (or in the spirit of the local foods movement). To be competitive in this market and to prove to consumers that their products are “the real thing” they have instituted a set of criteria for all farmers/producers wishing to use the label. It requires farmers to:

1. 
   Grow products within a 200 mile radius of the Kansas City Metro Area. Foods not locally available will be sourced as close to Kansas City as possible.
   
2. 
   Grow on small family size farms.
   
3. 
   Grow using environmentally sustainable methods with minimal use of pesticides.
   
4. 
   Raise animals free-range without the use of growth hormones and sub-therapeutic antibiotics.
   
5. 
   Use no genetically modified seed varieties or livestock breeds.
   
6. 
   Process locally using traditional handcrafted artesian methods with no or minimal use of artificial ingredients or preservatives.  The main ingredient must be locally grown or produced.  
   
7. 
   Enhance the environment, reduce pollution, and practice social responsibility.
   
8. 
   Sell only at locally owned and operated markets.
   
9. 
   Stimulate and support local and rural economies
   
10. 
    Use the breeds and varieties best suited to produce the highest quality products for the Kansas City Metro area.
    

It is also notable that FoodRoutes originally conducted market research in order to name their campaign and settled on “Buy Fresh, By Local” after finding it was the most compelling to American consumers across various regions (cited in Hinrichs article discussed above).

GNFF is an alliance of 150+ small farmers and businesses around Kansas City that are working to get local products to more of the public. Their successes include getting products into Ball Grocery stores and sold under the “Buy Fresh, Buy Local” program (based in Pennsylvania and with chapters in a variety of states). Through a Kellogg grant they are also working to get food into school lunches, in good food boxes (distributed to faith-based communities), and in Wellness Corporate CSAs (getting food to people in the workplace).

Marketing includes the BFBL label, banner and signage in Balls Food around GNFF items and Farmers’ Table promotions, which bring growers into stores.

Dreier, Shonna & Taheri, Minoo. 2008. “Innovative Models: Small Grower and Retailer Collaborations: Good Natured Family Farms and Balls Foods Stores.” Wallace Center, Winrock International. http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5091495

This case study explains the experience of Good Natured Family Farmers and Balls Food Stores. GNFF is a cooperative of farmers that provides an umbrella brand for a suite of local products and caters to the two mainstream grocery chains owned by Balls Food stores. By organizing into a cooperative (that also shares some processing facilities) more local food can be funneled into the mainstream grocery stores. To assure the brand’s reputation and quality, members of the co-op have to sign an affidavit that their products meet a certain set of standards (their products also meet the criteria of the Food Route’s Buy Fresh Buy Local Standards). The project has found success in co-branding products (with GNFF, the local farm, and Buy Fresh Buy Local as well). To increase consumer awareness, the stores use in-store promotions (and there is a “Good Demonstration Practices” set of guidelines that prepare demonstrators). GNFF also works with employees so that they are able to discuss the brand with customers and build awareness.

Key “innovations” that the grocery retailer has made include forming strong relationships with suppliers (and being willing to expedite payments); working with a third party that labels local food; promoting locally grown food to increase overall sales; making operational changes to support local foods sales.

In marketing efforts the stores advertise “meet the grower” events in major newspapers and advertise cheap lunches ($1.01 for all natural hotdog, chips and drink) on the radio – which gives more overall exposure for the store. Additionally they launched local TV commercial that feature local products and in which the owner states “Shop Hen House Markets where you will find a farmers’ market 7 days a week.” It also advertises in a local publication geared toward foodies.

Takeaway: Increasing marketing/advertising efforts helps…. And selling local food can lead to increases in overall sales

New Seasons Market, Portland

This 12-store chain in Portland, Oregon has prioritized local sourcing from its inception (in 2000). They are also a registered “B-Corporation,” which means that their business success is measured by adherence to their values and standards rather than capital growth (putting them in a unique place to support local, etc.) The store uses a “Home Grown” logo to market local products.

Red Tomato is a “middle man” non-profit marketing organization with the goal of getting more of regional farmers’ produce into stores at a fair price. It operates in the northeast and mid Atlantic. The organization has proven that creating a well known, umbrella brand for local food can increase positive reaction and purchasing habits. The branding strategy centers around the farmers’ stories. Red Tomato works exclusively with farms that they consider to be family-scale and ecological.

RT delivers produce to stores within two days of harvest – allowing for fresher produce and skipping the conventional distributing channels that delay the process. They also provide stores with promotional materials (e.g. point-of-sale signs and posters) that help stores to “tell the farmer’s story” and advertise the items. In addition to the general Red Tomato logo and brand, the organization has two additional branding programs. The Eco Apple program packages apples in paper tote bags that are customized with information about specific farmers/farms. The “Born and Raised Here” program includes customized cardboard baskets, master trays, and plastic bags for romaine lettuce hearts that draw attention to the items’ local status.

Takeaway: An umbrella brand for local produce can help consumers recognize and trust items. Including informative packaging and point-of-sale signs that tell the story of the farmer and farm from which items came is successful in marketing produce.

Wegman’s

King, Robert et al.. (?) “Can Local Food Go Mainstream?” Choices Magazine. http://www.choicesmagazine.org/magazine/article.php?article=111

Wegman’s is a grocery chain with stores in New York, New Jersey, Maryland and Pennsylvania. Its “Locally Grown Produce Program” is responsible for increasing local sales to 30% of produce when products are in season. The stores promote local growers actively and occasionally host in-store tastings. The company uses its website to communicate what local products are available at the current time and to share information about local family farms.

NC Growing Together is funded by the United States Department of Agriculture, National Institute of Food and Agriculture, grant #2012-68004-20363.