NGA SHOW: Local eclipses organic in some markets

NGA SHOW: Local eclipses organic in some markets

by Greg Johnson, Feb 17, 2017

LAS VEGAS – Some smaller independent retail chains are finding local produce connects better with consumers than organic.

At the Feb. 12-15 National Grocers Association convention, Steve Lutz, vice president of marketing for Wenatchee, Wash.-based CMI Orchards, said smaller chains are able to communicate with customers in a more personal way than larger chains.

A major way is through offering local fruits and vegetables.

“Six years ago, organic was the gold standard, but now that’s changing over to local,” Lutz says. “There are more benefits with local that don’t apply to organic.”

Nick Lenzi, senior vice president of operations for Busch’s Inc., a 15-store chain in Michigan, says total produce sales at the company is down 0.4% from a year ago, but local produce sales are up 19.5% in the same time.

He says Busch’s has partnerships with many Michigan growers, and some are so small that they market their fruits and vegetables in store “while supplies last,” which creates consumer urgency.

“For us, organic is getting smaller as local rises,” Lenzi says. “Organic certification isn’t worth it for some smaller growers.”

Rudy Dory, president of single store Newport Avenue Market in Bend, Ore., says about 25% of his produce is organic, but what really excites customers is the product from Bend-based Volcano Veggies, an aquaponics operation that sells organic salad greens and basil with plans to expand into spinach, strawberries and tomatoes.

He says local pride seems to trump every other demand.









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