This time of year, fresh produce production is abundant in most U.S. states, with the North arriving to the party little later than those below the Mason Dixon line.
While retailers know how to source, merchandise and market locally grown programs, engaging consumers in a locally grown program can prove to be trickier than in the past. But there are a lot of opportunities.
What is local?
Everyone has a definition of local, but most retailers consider local within the state or sometimes even bordering states. Others use a mileage radius to determine what’s considered local. And yet consumers have a much different definition. Some believe local is their town, while others consider Grown in the USA, locally grown. Seriously, I have seen surveys that show this consumer sentiment. So, making sense of what local means can be a challenge if there is no plan.
The plan
A plan to promote local must start with your objective: to sell local produce and make an extra margin; to compete with another retailer; to differentiate; to reduce the cost of goods; to support local farmers; or all the above. These are all good strategies, but given the times we are in today, I believe it is time to peel back the onion on what impact buying and selling locally grown produce has on the local economy and the environment.
First things first
One of the biggest barriers for retailers is maintaining a consistent supply of local product with farmer documentation proving their farming practices meet your company standards, including food safety. These are critical steps that the farmer must develop with assurances and tracking methods in place so that all retailer expectations are met product procurement. I remember having to cull some long-time local farmer partners because they did not have — or did not want to have — the proper documents and practices in place to give us confidence what we were selling was safe. From a liability standpoint, it simply was not worth the risk.
Local is premium
This may be controversial, but from my many experiences, there is a value-add to locally grown produce. Most local farmers do not have the tools and resources of large farming operations, so their operating costs per volume are often higher. But the buyer saves on the transport cost, so use this as a strategy to promote high-quality locally grown fresh produce. Unique, hard-to-source products even more so should be a value-add — not a true price-point offering. Make it special, as we used to say.
Messaging local
The produce is local: What else can beat that? Well, plenty if the message is simply “locally grown.” The term is everywhere, on a host of categories, so it must be more. The message must have purpose.
Consider these ideas for your message about your local program this summer:
- Tell the story of the farmer. Consumers more than ever want to know where their food is from and who is producing it. When possible, have local farmers make appearances to speak directly to your customers. It is a powerful experience. Retailers should stop worrying about another retailer taking their local producers away. Stop hiding the story and blast it! Your customers will thank you.
- Sustainability is everywhere today, and there is a story to tell about how locally grown is improving sustainability. It reduces transport times and helps the atmosphere in carbon emissions and collection. Consumers will eat this up if done correctly and with consistency.
- Pay it forward. Develop a charitable strategy by supporting a local charity through a portion of proceeds from all locally grown produce sold in your stores. Again, it’s about connecting with consumers and making them feel part of the success and solution, while supporting your store and local producers alike.
What’s in it for the customer
When consumers feel good about their purchases and the good that it does, their loyalty to your business grows. You have created a champion for your store. In all the years I bought and sold locally grown fruits and vegetables, I never had a customer complain about supporting local. They relished being a part of a success story, not specifically for our business, but for the farmer and helping them sustain their business. It is truly a win-win with consumers.
What’s in it for the retailer
Retailers benefit when they’re viewed as a supporter of local businesses, a supermarket that gives back to the community through locally produced fresh fruits and vegetables. Also, being purpose-driven is an important recruiting tool for today’s younger generations in the workforce. And what could be more purpose-driven than locally grown fruits and vegetables?
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Joe Watson is vice president of retail, foodservice and wholesale for the International Fresh Produce Association. He spent 30-plus years as the director of produce for Rouses Markets and was named PMG’s Produce Retailer of the Year in 2014.