Insights from Forum Panel on Local Sourcing by Retailers

Naturally Chicago’s Pitch Event and Forum on June 2 featured an expert panel on How Retailers Approach Local. From right, moderator Katie Paul of KeHE and panelists Rebecca Stephens of Fresh Thyme Market, Joe Fulco of Fruitful Yield, Margie Omastiak of Whole Foods Market; Travis Reams of Meijer; and Amanda Puck of Mariano’s/Roundy’s, who also served as the event’s emcee. Photo by Bob Benenson

While Naturally Chicago’s Pitch Slam is a dynamic showcase for rising-star natural products brands, the panels at our annual Pitch Event and Forum on June 2 provided business-building expertise for the audience of entrepreneurs, executives, and financiers. Both panels focused on how buyers connect with emerging brands.

The first was titled “How Retailers Approach Local” and featured leaders from five major grocery companies:

· Rebecca Stephens, Fresh Thyme Market’s Local Program Manager

· Joe Fulco, Fruitful Yield President

· Margie Omastiak, Whole Foods Market Senior Forager for Local and Emerging Brands

· Travis Reams, Meijer’s Manager of Supplier Relationship Management

· Amanda Puck, Mariano’s/Roundy’s Vice President of Communications and Brand Development, who also served as emcee of the Pitch Event and Forum.

Katie Paul, KeHE’s Senior Vice President for Merchandising, served as moderator. She kicked off the conversation by asking the panelists how they define local and how they approach local brands.

Margie Omastiak of Whole Foods Market. Photo by Bob Benenson

Omastiak said at Whole Foods, “It's in our best interest to be able to support local brands in the geography where we're staged, allowing us to be able to be in touch with local in terms of what it means to our customers. How do how do our communities feel about the products that are out there?” She also cited Whole Foods LEAP (Local and Emerging Accelerator Program), which helps guide brands to grow to be considered for expansion.

Rebecca Stephens of Fresh Thyme Market. Photo by Bob Benenson

Next up was Stephens of Fresh Thyme, the first grocery chain to partner with Naturally Chicago on its Locally Made program that connects brands with retailers. She said that there’s never going to be a universally accepted definition of what makes a brand local. At Fresh Thyme, “We define it as being made and based in the city or state” where the brand is being placed.

Stephens continued, “For the Illinois local program, we want that brand to be based in Illinois as well as manufactured in Illinois.” Stephens added that Fresh Thyme looks closely at consumer trends, noting, “We're focused on functional beverages and global flavors as two really high-growing segments.”

Joe Fulco of Fruitful Yield. Photo by Bob Benenson

Fulco described Fruitful Yield as a “small, specialty grocer,” which provides “the privilege to really get into understanding what the customer wants. It's all about being clean, it's all about being non-GMO, and if we can be as organic as possible, that's we look to do.”

“Our mission,” he continued, “is how do we follow products in the public's eye and create a partnership.”

Travis Reams of Meijer. Photo by Bob Benenson

Meijer’s Reams was next up. The Meijer chain is based in Grand Rapids, Michigan and 124 of its stores — nearly half the total — are in that state. But its beachhead in Illinois is 26 and growing. Paul asked Reams how Meijer differentiates between what local food consumers want in Detroit versus those in Chicago.

Reams replied, “One key thing we wanted to do is make sure that we empower our store directors to help build their storefronts. Through those partnerships, our store directors were able to actually make product recommendations on what they want for their specific store.”

He added, “We offer free demoing to the to the vendors that are part of local programs to really help build your footprint with our customer and get those that product in people's hands and in people's mouths so they can fall in love with it like we have.”

Amanda Puck of Mariano’s/Roundy’s. Photo by Bob Benenson

Mariano’s, like Fresh Thyme, is actively engaged with Locally Made. Puck said, “It's easy to get in if you're a local brand, believe it or not, but it's harder to actually stay in the stores.” She continued, “Demos are the best way to get your customers really interested in your product and build velocity. You can't really stress it enough.”

Puck added that she loves working with new brands. “The hustle is real,” she said, “and you are all out there selling product and hand selling, which we really take very seriously.”

Paul set up the next discussion by saying there’s a consensus that a product has to be amazing, and asked Omastiak to follow up on a previous conversation in which she said local is just an attribute, just as organic is an attribute.

Omastiak said, “The customers want to know that you're local. They want to know that they can pick those products that perhaps come directly from the area in which they're shopping. They appreciate that piece, but it's not the end of the piece, right?... What makes it different? What makes it more important for me as a consumer or all of our customers to make that decision and that purchase?

Stephens said Fresh Thyme relies on store directors and assistant store directors to know what products really resonate in their own neighborhood. “We encourage them to go out to farmers markets to help scout for local, as well as a nearby co-op that tends to specialize more in local products.”

Reams provided a personal example of brand foragers can take product search into their own hands. He grew up in southern Louisiana with a love for its regional cuisine. When he moved to Michigan and couldn’t find products with an authentic Louisiana flair, he paid a

visit back home, went to a grocery store, and found a brand (Jambalaya Girl) that hit the spot. Meijer started stocking its products and, Reams said, “It has been on our shelves for the last five years as one of our top selling diverse brands.”

He continued, “My team is out looking for new emerging brands, they are keeping the customer first. And our team can find those best authentic flavors, regardless of whether they're from the Midwest or from across the country.”

Naturally Chicago thanks all participants in the Retail panel for sharing their expertise and insights. If you are interested in learning more about our Locally Made program and how it helps emerging brands connect with retailers, please contact Naturally Chicago Senior Strategist Greg Keller at greg@naturallychicago.org.