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Small Bites
April 26, 2024
Creating opportunities to amplify Vermont products to buyers in the northeast & beyond through regional relationships while also sharing big picture insights affecting local food sales.
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What's in Store? Seasonal Produce That's For Sure!
Arbor Farm Market in South Hero plays a vital role in the local food economy. They are an outlet for producers across food categories. Farmers are harvesting the early season crops while balancing production for planting future field crops. At Sandy Bottom Farm in Isle La Mott they are now delivering salad greens on a regular basis to Arbor helping get a jump on revenues for the 2024 season.
In every corner of the state growers
are cutting, washing & packing up mustards, arugula, herbs, kale, &
micro greens for early season sales. Some farmers are sharing their bounty with others to sell at farmstands or in early season CSA's.
Fresh greens & young root crops
are a boost for health as "bitters" are tonic for our bodies. The fresh Spring harvest augments the year-round hydro & aqua-production of crops from growers Green Mountain Harvest & Finn & Roots.
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Grading Perfection
Grading is the categorizing of produce according to a set of rules overseen by the USDA. In general terms, grade standards address the appearance of the commodity produce item, including defects (damage, insects, disease), shape, & color. Some defects affect the shelf life & function of produce, including decay & breaks in the skin, while other defects are mainly cosmetic & are of less concern as they travel through the pipeline to stores & shoppers.
Due to extreme waste at multiple
levels of production through to retail, over the past five years there has been
more discussion about the amount of food loss & waste. There is a
multiplier effect of the amount of loss & waste (water, energy, labor, etc). Some have pointed to stringent grade standards as one factor contributing to waste of produce & overuse of pesticides brought to light in 1993.
With more consumer demand for waste reduction & a willingness to purchase “ugly, some say it is time for an adjustment in the standards. Produce buyers have a role in sharing the knowledge of “grades” as do the distributors selling products. Often a special may be for a “lesser grade” product with a reduced pricing attached; this can be favorable to the
store & for the shopper. Think of a count size change: 60 count avocado vs a 48 count; 120 apple vs a 90 ct. The only differentiation may be the size of the item which often translates to lower prices in the department. Other times there may be a run on an item that has some defect, but it is only cosmetic also allowing the store buyer to take advantage of a lower price, while taking the initiative to inform shoppers that their choice to sell the lesser grade reduces waste at the larger macro distribution level.
Fresh cut processing facilities such
as CAE Just Cut & Salvation Farms surplus management &
Gleaning Program “upcycle” lesser grade products. They capture “waste” making the fresh & minimally processed food available to foodservice outlets & food banks & food shelves.
Do you want to know more about how
“good produce” gets rejected? Check out this podcast or read Cornell's resources. Scotty Horner is a produce broker who posts aspects of the "produce industry" on LinkedIn.
The business of selling food
intersecting with food waste comes down to economics & human behavior. Buyers at every level & consumers need to be educated about which "defect" affects food sales & the willingness to buy imperfect produce at a viable price. The USDA grading standards play a role, but so does shifting from decades of cultivating “perfection” in produce departments.
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Stores & PYO Farmstands
Stock Up for Local Seasonal Bevie Sales
(A very short list!)
Green Valley Coconut Water
Herb Craft
Last Resort
Mocha Joe
Cold Brewtus Nitro Brew
Savore
Kingdom Kombucha
Sweetwater Maple Soda
Products are available DSD, along with other distribution options such as Pumpkin Village, VT Roots & non-alcohol bevies through the VT Beer Shepherd
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Stock up
for Seasonal Seasoning Sales!
'And Maple' producer of seasonings suitable to flavor veggie, pork, & chicken dishes without extra salt. & Maple’s Applewood Smoked Dry Rub is a versatile seasoning of a handcrafted blend of aromatic herbs & spices.
Perfect for grilling, roasting, or sautéing. Easily merchandised with seasonal grilling tools & accessories & of course complimentary products on an end cap or in a weekly or seasonal advertised special.
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Defining Local Products
In prior Small Bites, you have seen the clues about what is "local" to Vermont per ACT 129. Here is an example of a complying business:
Made from ingredients not regularly produced in Vermont or not available in sufficient quantities to meet production requirements.
They can still be “Vermont” food when it satisfies the “unique food” criteria. Two or more requirements must be satisfied
•The majority of ingredients (meaning more than 50 percent of all product ingredients by volume, excluding water) are raw agricultural products that are “local” to Vermont;
•Substantial transformation of the ingredients in the product occurred in Vermont; and/or
•The headquarters of the company that manufactures the product is in Vermont
And Maple seasoning rubs are by Vermont definition a "Local" product as they are headquartered & are produced in Vermont with substantial transformation of ingredients. They also incorporate local maple into each SKU. Store POS systems can add the "local" attribute to this product for tracking sales.
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It's that time of year again!
Across the country food manufacturers & store buyers head out to Oregon for the 2024 Good Food Mercantile. This event is a veritable showcase of the best of the best across many food categories. Considered a softer trade show atmosphere it is as much about connecting with other makers as it is with buyers that participate in the Good Food merchant alliance program.
Over the years, Vermont has been very well represented. The show helps
brands gain access to specialty buyers across the nation. It is a who's who of
tasty foods meeting interested buyers & makers meeting makers!
Congratulations to Tavernier Chocolates, Blake Hill Preserves & Woodstock Farmers Market. They are three of our Vermont companies taking in the sights & sounds of the GFA Mercantile.
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The Bigger Picture
Every food manufacturer, store, & distributor is balancing its product mix for optimal sales & profitability. That requires a deep awareness of trends, product availability through operations, capitalization for varying stages of growth (at every stage from farm to retailers), & even the impact of merging businesses.
It may not seem apropos to write about here, but there is a hot button story this week: Five months after announcing a merge in November or 2023 two landmark grocers in Chicago closed their 33 stores with no notice to employees, customers, or vendors shuttering stores in Dallas, Chicago, & Austin.
"Dom’s Kitchen & Market and Foxtrot shuttered Tuesday April 23, 2024 five months after they announced plans to merge, marking an abrupt end to two Chicago-based startups with high hopes for expansion in the upscale specialty grocery market." -Chicago Tribune
An event such as this may focus on the impact of the store employee & customer/shoppers, but for these two grocery chains they had a focus on emerging brands making their vendors suffer too. A closure such as this impacts vendors in a hugely significant way: lack of payment for products sent to the stores, disruption of purchase orders, thwarting current ‘pipeline’ orders impact vendor labor, cashflow upheaval, & supply chain management are all operational struggles. These are very real & pressing concerns for smaller brands running on tight margins. Many emerging food enterprises gained a footing from the store buyers for their niche & often higher price point products.
“They were a very important account for us, & the second retailer to carry our product.”
-Dani Wong, the founder of Señor Mango.
Is there a moral to this story of merging & the wisdom of "industry leaders"?
"Part of the recently merged Outfox Hospitality Group, Foxtrot has raised $194 million to date, according to Pitchbook. Investors include private equity firms Monogram Capital Partners and Lerer Hippeau, as well as Whole Foods co-founder Walter Robb and the celebrity chef
David Chang. " -Forbes
"Monogram was founded in 2014 to help promising consumer and retail brands become category leaders" -MCP website
According to the Federal Trade Commission, over 50% of food retail sales is concentrated at just eight national supermarket chains. For smaller brands, it is notoriously difficult & often prohibitively expensive to sell into stores & to stay on the shelf between production, distribution, sales and marketing costs. Read more from the Forbes article about the impact on the closing on "Up & Coming" brands. And yes, there is a class action lawsuit within hours of the closure. And plenty of Industry chatter.
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It's Happening! Small Group
Warehouse Tour May 16
Have you ever wondered how food really gets from Point A to Point B?
The Farm to Plate Grocers Project
Warehouse Tour is for you! May 16 twelve lucky folks will tour the Provisions International warehouse in West Lebanon, NH. We dive into the complex network of businesses working together to land food on store shelves.
This is a super small group tour of vendors, store buyers, specialty cheese & food makers, & other interested folks, at no cost to you!
After Provisions there is a great chance of a visit & tasting at Blake Hill Preserves in Windsor. This stop depends on variables associated with a new building that is in construction.
Click the registration link for details
Register Here
Space is limited to 12
Didn't get a spot?
Join our waiting list!
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"Value Added"
Distributor Services
You hear it from us all the time that each business providing distribution services is unique in how they operate. They offer "customer service" to stores & vendors supplying them with products.
At Provisions International their
services include promoting products & telling the stories of their vendors.
Stores benefit from this through weekly product exposure via email. They also work closely with vendors, partner organizations, & stores to arrange in-store demos to promote the products stocked through the warehouse. Every time a vendor gets in front of shoppers it is a value to their business. Sales increase at the store with the act of reciprocity through a tangible exchange. Provisions sales reps are a "sweet-spot" mixture of chefs, cheese mongers, & folks with rich backgrounds across the food spectrum. Each rep gets to know their store accounts with regular visits
thereby targeting specific products to specific stores. Their knowledge is key
to the success of this specialty house.
Distributor services can vary; AGNE has a suite of reps overseeing store resets both large & small. The Store
Equipment & Design Services team supports projects to reach the
full potential of sales. As a cooperative, the AG membership services offer financing to assist in launching projects.
They are in contact with vendors to
get the best pricing on equipment such as new freezers, deli slicers, produce cases, or display & merchandising props. Vermont store members have successfully used these services to upgrade old stores, utilize new store designs, craft new visions for in-store layouts, & have participated in updating store features like flooring or shelving.
Distributors are in the business of
logistics & each offers unique services to promote the overall wellbeing of
its store & vendor customers.
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NEFNE Spotlight Regional
Cave to Coop Promotion
Cave to Co-op is a partnership among the Neighboring Food Co-op Association (NFCA), Provisions International, & New England’s abundant artisan cheesemakers.
Through the joint effort & the member food co-ops of the NFCA over the past five years, the program has moved 14 tons of regionally produced cheeses at affordable prices.
The goal of Cave to Co-op is to contribute to a stronger regional food system by introducing local cheese makers to consumers & encouraging them to try their products. Each month, a new cheese is featured accompanied by a newsletter article & promotional materials on the producer. Check out this month’s special here.
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Farmer as Retailer
Farmstands are opening across the state with a variety of greens, meat, dairy, eggs including local & regional products including the mighty donut. Creating a retail footprint can vary depending on many factors, some of which we covered in the Farmer as Retailer Winter Series.
Chandler Farm in Wheelock, known for their grass-fed meat, stocks their farmstand with donuts
made locally by their Amish community. This is an incentive that helps drive sales of their other products. Another incentive for sales is utilizing an online ordering platform in addition to their on-farm sales.
In another far reaching corner from
Chandler is the Dutchess Farm in
Castleton with a differing take on retail with its online Square platform. They have several options to generate sales. Orders can be placed online, through a CSA, or picked up at the farm or at selected Pittsford, Poultney, & Rutland locations.
Folks are working hard on getting
their farmstands up & running for a busy season ahead. Donuts have proven a draw for many farmstands with localized routes serving stores & seasonal stands. Local Donut based out of Woodbury services stores, farmstands. distilleries, & more! When it comes to product mix some stands are purchasing through vendors, distributors, & buying direct through 3rd party platforms including Mable (without having to meet high minimum orders).
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Edible Vermont Spring Issue has hit the stands! Its mission is to focus on the intricate network among farmers & foodies, the restaurant community & home chefs, & to provide nutritional value to readers while supporting food security throughout Vermont.
The independently owned publication
& digital content promotes the local food economy in Vermont with editorial integrity, authenticity & exceptional photography. They welcome advertisers & locations to share the quarterly issues with shoppers.
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Networks Matter
Rhode Island Food Council is part of the NEFNE 30x30 Project They expand sales through various food & farm support services.
Momentum Business Solutions supports a number of "growth" needs. Bookkeeping, HR, taxes, coaching, & MORE!
International Workers Day May 1
Migrant Justice recently traveled to The Netherlands to join a shareholder meeting of Ahold Delhaize (the multinational corporation that owns Hannaford Supermarkets) & for support of Milk with Dignity. They are now prepping for their annual May 1st International Workers Day picket line in support of farmworkers & for Hannaford to commit to Milk with Dignity.
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Business Resources
As your farm & or food business enterprise grows, your need for support services evolves. Consider the new resources & coaching services of the Vermont Sustainable Jobs Fund. A recently released series of Business Sense Briefs is designed to aid the growth of businesses as a one-stop resource to identify current & future needs to address growth.
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Small Bites comes to you via grants & is created for farmers, food manufacturers, distributors, & grocers to increase VT food sales. We support the New England State Food System Planners Partnership effort to strengthen the regional food economy
Special thanks to Matt at And Maple, Seth at Pumpkin Village Foods, Erica at Butterworks Farm, Tony at Salvation Farms
Photo Credit: Terrence Antonio James/Chicago Tribune
Contact: Annie Harlow
smallbites802@gmail.com
All info is subject to change; thank you to all who contributed to this issue.
Created with support from the Canaday Family Charitable Trust
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