By Kathie Canning
Through a special arrangement, what follows is an excerpt of a current article from Refrigerated & Frozen Foods Retailer magazine, presented here for discussion.
Food Lion, Supervalu, Wal-Mart, Kroger - and scores of other retailers - have formal programs designed to maximize opportunities for minority- and women-owned business enterprises (MBEs and WBEs). Such programs, at least in theory, promote the growth and development of MBEs and WBEs.
For suppliers, however, certification is no magic bullet.
"The only expectation that minority businesses should have through these programs is that they will have a chance to seek and learn and understand," said Fred Ruiz, chairman and CEO of Ruiz Foods. "If they create products and services that meet what they've learned and what they've been told about these companies, they have a chance to be successful."
Such initiatives don't always pan out as planned, however, said Ricardo Rodriguez, vice president of sales and marketing for SimplyFresco, LLC.
"Being a certified MBE has not played a major role in helping our company get any business," he contends. "We have come to the conclusion that it is more critical to sell on the basis of our quality, and the MBE designation is almost like icing on the cake."
Retailers can improve relationships with MBEs, said Mr. Rodriguez, by making the information exchange more fluid, establishing a long-term partnership, reducing financial barriers to entry, fostering a cross-cultural exchange, and educating their organizations about the benefits of supplier diversity.
For many, the initial certification process itself can be extremely difficult.
But retailers themselves stand to reap rewards in terms of product diversity and more.
"Most CPGs are focused on mainstream items," said Mr. Rodriguez. "MBEs tend to have a closer-to-home approach, and many times the products are a reflection of that dynamic."
Mr. Ruiz believes minority vendors bring more authentic foods to the table because they understand the cultural flavors and profiles for these particular customers.
"We also can help retailers better focus some of their promotional programs to these specific consumers because we know who they are," he stresses. "We try to be a resource to these specific consumers
Woman-owned businesses, too, bring a differentiating factor.
"It's still generally women out there who are buying the food," said Ellen Meyer, president of Great American Appetizers. "And the food industry has typically been very male in the way of buyers and manufacturers. I think women have helped to bring about positive changes such as [elimination of] trans fats. I know certainly that was important for me to bring to the company."
Linda Taylor, president of La Petite Foods, contends that woman-owned companies have much to offer retailers in terms of products and consumer insights, but that they still have to work much harder than others to get a foot in the door.
"It is truly a man's world, no matter how you slice it or dice it," said Ms. Taylor, who is not yet WBE certified.
Discussion Questions: What do you think is the overall value of MBE or WBE retail programs? Do you believe they provide a benefit for retailers beyond creating a more level playing field for minorities or women in business? Do you have any ideas for enhancing such programs?