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Ted Mininni Ted Mininni   Bio
09.03.08

Wegman’s Going Local

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Wegman’s Food Markets have quietly expanded on the privately owned grocery chain’s “Locally Grown” program, according to a recent article in Progressive Grocer. The two-decades-old program now comprises a network of over 800 growers.

Better yet, these family farmers are able to bring myriad selections of fresh fruits and vegetables to Wegman’s customers, going directly to the stores and bypassing distribution centers and warehouses. That means, consumers can purchase fresh produce within hours of being picked.

Not only that, customers can go to Wegman’s web site to learn more. The home page features information on Locally Grown Sustainable Produce that enables Wegman customers to learn more about the actual growers in each region where the retailer has its stores.

In the article, “Wegman’s Touts ‘Locally Grown’ Program,” this quote sums up the entire venture very nicely: “According to Wegman’s, such an initiative is good for the environment because it reduces fuel costs, which helps the grocer offer competitive prices to shoppers”. Sounds like a win for everybody concerned: local growers, retailer and consumers, and wait: the environment.

Of course, on the down side, locally grown produce is not available in the winter, but the retailer’s produce coordinators and managers work with local growers during this “down time” to plan on new varieties for the upcoming growing season. This enables them to offer consumers hybrid and heirloom varieties of fruits and veggies with more flavor and nicer color. According to Wegman’s: “The growers like trying something new, and we like giving customers more choice”.

Wegman’s has also worked with its suppliers on environmental and food safety issues. Growers are encouraged to either use recyclable cardboard boxes to deliver their produce, or sturdy, washable and reusable plastic boxes. Growers are also encouraged to deliver to a number of Wegman’s stores in one day to save fuel and time.

This year, Wegman’s is requesting that its farmer partners seek certification in Good Agricultural Practices (GAP), which sets standards on the use of water, fertilizers, manure and pesticides.

The Rochester NY based Wegman’s chain currently owns and operates 71 stores in New York, Pennsylvania, New Jersey, Virginia and Maryland.

Questions:
• As one of the best food retailers in the country, do you think the Wegman’s local farm to fork model should be followed by all grocers across the country as much as possible?
• Are you aware of food retailers that purchase locally grown products where you live?
• Do you think grocery stores have an opportunity to not only educate the public, but to also reinforce public perceptions of quality, source information and accountability, and food safety?
• How much do trust, transparency and traceability matter to you when you purchase food?

I’d love to hear from you.



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Comments

Hi Ted, two comments.

First, many moons ago I worked in a produce dept of a national grocery chain. We would often buy/supplement orders with local produce. The difference was that we didn't highlight this fact--and maybe should have?

Second, I also read recently of school districts contracting with local farmers to bring fresh produce to schools, thus bypassing the distributor.

Back to the main topic, will grocery stores become the local farmers market? Should they?

Posted by: Paul Barsch | 09.03.08

After seeing "main stream", traditional grocery stores attempt to cover off on the organic-side of the food aisle in response to Whole Foods, I guess it's not surprising that one is now trying to copy what I think is a far more powerful attribute--"locally grown."

It certainly has a nice halo effect--supporting local farmers, fresher (at least in theory) produce, sustainable--and I'd think would have a bigger positive impact on sales and brand equity than just offering an aisle or two of "organic" animal crackers and mac and cheese.

Posted by: Ami Bowen | 09.03.08

Interesting comments, Paul. To answer your first point: timing is everything in marketing, as you well know. I'm not sure that supermarkets' touting they worked with local suppliers to buy locally grown produce would have resonated as much a few years ago. With fuel costs soaring, and the green movement growing, this seems to have more impetus now.

Second point: I like the idea of school districts also getting into the act and purchasing locally grown produce. It's far more nutritious for our kids, far fresher and responds to parents' increasing concerns about school lunch program menus. Great stuff! Let's hope this catches on.

Do I think supermarkets should become farmers' markets? That certainly would be doable in California where you live and where growers can bring fresh produce to market virtually year-round. Not likely to happen in our part of the country, since we have seasonal issues. I don't think it's necessary for supermarkets to become farmers' markets but to continue to buy as much as they can from local growers when and where they can. It's great to support the local economy, family farms and to provide the best product mix for their customers, after all.

Thanks for weighing in, Paul. I sincerely appreciate your comments.

Posted by: Ted Mininni | 09.03.08

You raise an interesting point about supermarkets, Ami. Some chains, the ones that have commmitted to bringing in organic and natural foods, have done a good job in reaching consumers. They are able to successfully counter the Whole Foods effect in some markets. Others just decide to dabble in organics/naturals, and really don't pay much attention to it. As a result, it's fairly meaningless to their overall business. . .and they lose valuable opportunities in today's marketplace.

I like your comments here: "It certainly has a nice halo effect--supporting local farmers, fresher (at least in theory) produce, sustainable--and I'd think would have a bigger positive impact on sales and brand equity than just offering an aisle or two of "organic" animal crackers and mac and cheese." Exactly, Ami. Exactly.

Thanks for posting such articulate comments.

Posted by: Ted Mininni | 09.03.08

With the emergence of so many grocers - it is good for consumers that we are getting more choices, variety and in-turn better prices. This case seems to be better for even the farmers. Good story.

Posted by: Imagine Wellness | 09.03.08

This is a win-win all around as far as I can see, Imagine Wellness. Local producers, consumers and supermarkets all benefit. It's a model of what can be done and operations like Wegman's tend to lead the way when it comes to trailblazing great new ideas in the food industry.

Thanks for your comments, IW. Much appreciated.

Posted by: Ted Mininni | 09.03.08

"• As one of the best food retailers in the country, do you think the Wegman’s local farm to fork model should be followed by all grocers across the country as much as possible?"

Yes, have always wondered why they didn't. Some supermarkets sort of try in their own way, but their programs don't seem quite as comprehensive, or as local (NJ is not the same as that farm in Canton or even Amherst) as Wegman's.

Posted by: Alyssa | 09.03.08

Good comments, Alyssa. I suspect that like everything else, it takes a high level of management commitment and resources to make this work. That is, grocery store managers and buyers have to sit down, plan and work all of this out in advance, and stay on top of this as the program unfolds to make it a success. That takes time and manpower hours. . .a precious commodity in business these days. Still, I have to believe the rewards are worth it for those supermarkets that get behind this.

Thanks for answering one of the questions in my post, Alyssa. I love the input from readers.

Posted by: Ted Mininni | 09.03.08

I think it's a great move. There is a feeling of "depersonalization" that can occur in any big store or chain, and by tapping into local suppliers, that changes the sense toward a more "neighborhood" store feel - great way to distinguish from other chains.

Posted by: Steve Woodruff | 09.03.08

Hi Steve,

I'm not sure about "depersonalization" since most Americans have been shopping in box stores and large grocery stores for decades now. . .I do concur, however, that a great differentiator for stores can come from the addition of locally grown and produced products. It can foster a real sense of community.

BTW: welcome to the Daily Fix. As the owner of a design consultancy who's very hands-on, I don't always get a chance to add comments to many posts on this blog site, but I do enjoy reading my fellow contributors' comments.

Thanks for weighing in here, Steve.

Posted by: Ted Mininni | 09.03.08

If grocery stores increase the amount of local produce they purchase and the produce sells to consumers, local farmers may increase the amount and variety of products they offer.

I lived in Ithaca, N.Y., for 20 years. The farmers' market there is very strong, and after it became established, local growers started getting more creative -- finding ways to grow cool-weather crops like broccoli in the spring for early summer harvest, for instance, or fresh spinach in the fall. A strawberry grower experimented with cold-tolerant strawberry varieties for early season berries and heat-tolerant varieties for late June, so the local strawberry season was longer.

With a wider selection of products to sell and a wider number of outlets, farmers have a better chance of success. If selling local produce in grocery stores keeps local farmland in production and out from under development as housing, I'm all for it. Put the houses on farmland that is marginal for agriculture.

Posted by: Barbara Phillips Long | 09.03.08

• As one of the best food retailers in the country, do you think the Wegman’s local farm to fork model should be followed by all grocers across the country as much as possible?

Yes, whenever possible.

• Are you aware of food retailers that purchase locally grown products where you live?

Yes, Portland's local chain New Seasons' Market does. It is great to know to know what you are eating.

• Do you think grocery stores have an opportunity to not only educate the public, but to also reinforce public perceptions of quality, source information and accountability, and food safety?

Absolutely.

• How much do trust, transparency and traceability matter to you when you purchase food?

It is key for me when I purchase food. Why buy food blind?

Posted by: Neil Anuskiewicz | 09.04.08

Barbara,

Thanks for sharing insights on your local marketplace's offerings. It's also nice to see how extended growing seasons can be planned when farmers know they have a market for their produce, isn't it? Even in a colder climate like the Ithaca NY area, much can be done to ensure consumers eat fresh, locally grown produce for longer periods of the year.

Lastly, I like your thinking about preserving as much local open farmland as possible in many communities. It's great for all of us, isn't it?

Thanks for adding a great deal to this post, Barbara.

Posted by: Ted Mininni | 09.04.08

Neil,

Thank you for taking the time to answer the questions posed in my post. I appreciate it. It looks like you're in good shape in the Porland Oregon market with fresh, locally sourced produce. Good for you!

Do any other Daily Fix readers in various parts of the country have great access to locally grown produce in their area supermarkets?

Posted by: Ted Mininni | 09.04.08

Not in perfect shape though as we have the sort of cold, rainy season where no produce is grown. During that time of year you have to import. I expect that is the case with most places and, frankly, I am grateful for the ability to eat something green when it is gray outside.

Posted by: Neil Anuskiewicz | 09.04.08

Just a thought, Neil, based on your last comment. . .it would be great if local farmers were supported enough to grow even more food since they could sell it all through local supermarkets. Maybe then they'd be able to afford year-round greenhouses to bring more fresh produce to market regardless of season. Wouldn't that be great?

Posted by: Ted Mininni | 09.04.08

That is a *very* interesting idea! That would be absolutely incredible if local farmers could bring fresh produce to market year round. Think of the transport costs, handling, etc., that would be cut and the money would stay in the local economy. And a farmer could work year round could actually make a good living without being a mega farm.

Ted, you are on to something here. I am sure Alice Waters and other pioneers in supporting local farmers are thrilled that things are still moving forward.

Posted by: Neil Anuskiewicz | 09.04.08

Thanks, Neil. I don't know whether this idea is economically viable or not for local farmers, but I'm sure it's worth exploring. As you point out, it's cost effective for grocers and consumers in local areas to support local farmers. Alice Waters was a pioneer of this kind of thinking, Neil, and now numerous chefs of renown are following the example that she set.

Posted by: Ted Mininni | 09.04.08

I wonder if that business model is working anywhere now even on a fairly small scale?

Second, it would be an interesting study for an economist to conduct.

But we may just have to wait and see if consumer decisions and producer decisions makes this happen. Once it happens one place and proves profitable and both producers and consumers see the value in it, then we will see it spread.

Ah yes, Adam Smith's invisible hand at work!

Posted by: Neil Anuskiewicz | 09.04.08

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