Are Large Grocers Connecting With Locavores?

Accounts of grocery chains proclaiming their links to local producers abound and have for several years although consumer confidence — and conviction — varies.

According to AT Kearney's report, Buying into the Local Food Movement, demand for local food "is spreading — from rural farm market stands to supermarket shelves." But, they ask, are large grocery retailers capturing the growing "locavore" market?

Researchers used an online survey to question some 1,300 Americans last November. Of those, 69 percent were their household's primary grocery shopper. Respondents across all income groups said they were prepared to pay premium prices for local food, one possible reason chains want their market share. Kearney points to Walmart's intention of increasing its proportion of local produce to nine percent by 2015 as well as Supervalu's estimate that "it buys 25-40 percent of its produce locally."

Kroger linked up with Michigan State University (MSU) Product Center in 2010 to promote products made and grown in Michigan. Walmart tested a similar partnership in Oklahoma the same year.

Annisa Farese of neat-os.com published a convenient roundup on her blog in April. Sprouts Farmers Market, she says, specializes in "seasonal produce from local and regional farms." Wegmans has its own farms while Whole Foods Market is launching a "commercial scale greenhouse with its own retail grocery space" in partnership with Gotham Greens.

Miles matter, particularly because produce can be harvested and sold in a shorter time span. Defining "local" is an important issue that chains struggle with in terms of communications, operations and profit. Shoppers gave Kearney different interpretations, ranging from 100 miles from the store (64 percent) to grown within the same state (37 percent). Ranked by trust, online grocers came in last but only just behind national supermarkets and big box retailers.

The Kearney report did suggest possible improvements. As perceptions of quality and affordability are low, emphasizing freshness and quality are "paramount." Displays, information and "co-marketing" with local producers would help build trust, the authors say. Digital media could also facilitate access to information about local suppliers, sometimes directly from grocers' websites.

• Buying into the local food movement - AT Kearney
• Got Michigan? Kroger joins with Pure Michigan to push local groceries - ClawsonPatch
• Pure Michigan: MSU product center and Kroger team up to showcase Michigan food - ANR Communications
• Made in Oklahoma coalition partners with Wal-Mart to promote local products - MIO
• When food miles become food footsteps; the movement for grocery stores to sell local product - neat-os