has gone Mainstream What is meant by Mainstream? What is a Niche Market? Growing Consumer Demand now mainstream even though there is limited capacity

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1 Local and Regional Food has gone Mainstream What is meant by Mainstream? Products and services which are readily available to, and appealing to the general public, as opposed to being of interest only to a very specific subset of the public. What is a Niche Market? A niche market is a focused, targetable portion of a market. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. You can think of a niche market as a narrowly defined group of potential customers. Growing Consumer Demand for Local and Regional Food is now mainstream even though there is limited capacity 1

2 Multiple market outlets to source local food Supermarkets Restaurants Colleges & Universities Farmers Markets Community Supported Agriculture (CSA s) Consumers visiting farms Agri tourism Market Shaping Dynamics Food safety scares Many consumers are three generations from knowing where food comes from Consumers want to know where their food comes from Consumers are redefining their relationship with food Other Market Shaping Dynamics It s important that consumers feel as though they re supporting a family farm, even if it isn t in their back yards. Transparency will net both trust and sales The story must also talk about freshness and food safety but, perhaps most importantly, it must include real people telling the story. 2

3 Consumers want taste. They want it now, and they want it year round. Definition of Local Food There is no consensus on a definition of local or local food systems in terms of the geographic distance between production and consumption. Definition of Local Food Food production, processing, distribution, and consumption of locally grown or raised products within a specific geographical area Advocacy However, there is a growing population of folks that philosophically believe that producing food on a small scale and within close proximity to markets is better for the environment. (There is no sound evidence to support their claims.) 3

4 What is on the mind of most traditonal food outlets? Food Safety. Food Safety. Food Safety Food bourne outbreaks Getting the phone call Crisis management Media management Lawsuit(s) The blame game Protecting reputation Challenges Come With Newfound Opportunities Are consumers ready for imperfect looking product??? New revenue stream, but it is not a year around Just because it s grown in state does not mean it is safer What s taking shape throughout the country and Illinois? Policies & Actions New Federal Dietary Guidelines: MyPlate Healthy, Hunger Free Kids Act of 2010 First Lady Michelle Obama s Lets Move Initiative Know Your Farmer, Know Your Food Food Modernization Act Illinois Food, Farms and Job Act Illinois Cottage Food law Illinois Farmers Market Task Force 4

5 Shifts in the Industry 90% of supermarkets offer prepared foods by , national organic standards were fully implemented, USDA Certified Organic appeared on shelves for the first time Mandatory country of origin labeling for produce, meat, seafood and peanuts is enacted as part of the Farm Bill Consumers want to know where their food comes from According to U.S. Grocery Shopper Trends: Consumers want to support the local economy but, they are more interested in the freshness of their produce. Key Trends Demand for Local & Regional Foods Backyard Gardens Sustainable Food Packaging Sodium Red Flag A New Emphasis on Healthier Foods Whole Foods Over Processed More Key Trends High tech meets food and nutrition Home cooking Convenience Probiotics madness Inherent goodness Sweet, natural alternatives 5

6 Fruit and Vegetable Industry $122 billion sold through all marketing channels 56% sold through retail 42% sold through foodservice 2% sold direct to consumer Cooking at Home Seven out of ten meals are now prepared in the home In 2010, more than half (55%) of grocery shoppers prepared more meals at home than in 2009, approaching a 20 year high. (FMI, 2010) America s Appetite for Locally Grown More than half (53%) of supermarkets offered locally grown, raised, or processed foods in Area meetings to meet local farmers Direct store & distribution center delivery options Promotes local farmers within the stores 6

7 Increased the amount of locally grown produce by 97 percent. Accounts for more than 10 percent of all produce sold in their U.S. stores. Define locally grown as "grown and sold" in the same state. Goal, set in 2010, to double the amount of locally grown produce sold in the U.S. by the end of Schnucks will accept direct store deliveries Features local in stores Attending farmer meetings to build relationships Plans to purchase $10 million in local produce In 2010, increased local food purchases by 5% o Along with launching the new logo, the Illinois Department of Agriculture announced the Buy Illinois Challenge o We are challenging every Illinois household to dedicate $10 of their existing weekly grocery budget to the purchase of Illinois Products o This would mean $2.4 billion would be re invested in the Illinois economy annually 7

8 What s Hot in Restaurants? #1 Locally sourced meats & seafood #2 Locally grown produce #3 Healthy kids meals #4 Environmental sustainability #5 Children s nutrition as a culinary theme Menus Farm fresh, farmer s market, and farmgrown claims have grown 80% on menus over the past three years. Food Sales Direct to consumer food sales grew 37% between 1997 and In the last ten years, it grew 104.7%! Direct to Consumer Farmers Markets Road Side Stands On farm stores CSA s Direct from the Farm 8

9 Popularity of Farmers Markets Growing States with the Most Farmers Markets California New York Michigan Illinois Ohio Total annual sales at U.S. farmers' markets are estimated at $1 billion! Two years ago, there were 270 farmers markets in Illinois. Last year, there were 300 farmers markets. Currently, there are over 350. Cynthia Haskins Manager of Business Development and Compliance Illinois Farm Bureau (309)

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