Indiana Grocers Adapt To Growing Demand For Local, Organic Food – Indiana Public Media

Posted: February 25, 2017 at 1:42 pm


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Demand for organic food has grown exponentially in the United States over the past decade.

Grocery stores are adapting the products they offer to keep up with growing demand for organic and local food.

According to the Organic Trade Association, the amount of money Americans spend on organic food has more than doubled in the past decade, to more than $43 billion in 2015.

Hoosier grocers are responding to a demand for organic and local food by opening more stores and offering more products. Its a good thing for consumers, but its a gamble for some stores as they work to differentiate themselves from their competition and earn consumer business.

Marissa Foosaner shops at Bloomingfoods for most of her groceries. She says she likes the personalized feel of a co-op.

I think Bloomingfoods is special because it has so many organic products and its a more intimate store, Foosaner says. Kroger and all the other ones are so big that its hard to find everything. Everyone here is so nice and helpful.

Bloomingfoods also recognizes the importance of its relationship with customers.

Everybody that contacts me gets an answer or a phone call or a discussion because we care, says Bloomingfoods General Manager Tony Alongi. And Ive had people contact me: Please stop selling this product, please bring in this product, I dont like this policy. Everybody gets kinda personal attention.

But now other stores are starting to recognize the value of specialty products, and theyre beginning to implement them as well.

Kroger, for example, is beginning to move toward a more specialized approach with its products. The chain has 8.5 million customers everyday across the country, but each persons voice is still important.

I would say more and more is based on customer feedback, says Krogers manager of public affairs Eric Halvorson. We try to be open and if somebody wants to come in and say, Wed really like to see that, well listen. So I think its amazing how influential a few phone calls can be.

Along with more organic produce, Kroger stores have begun to carry more specialized products, just like Bloomingfoods has for years. That includes everything from coffee beans to organic soaps that are made in Indiana.

This reflects the growing need for organic products: a demand that grows 4to 8 percenteach year.

Organic Trade Association by Indiana Public Media News on Scribd

Along with a demand for organic products comes a demand for local products. Producers and retailers have even begun to affix Indiana Grown labels to their products to make it easier for customers to identify things that are local.

Ted McKinney, the director of the Indiana State Department Of Agriculture, says the need for local products is on the rise.

There is a desire on the part of many consumers to support that local farmer in his or her products. And I tell ya, its heartwarming to see that.

Ted McKinney, Ind. Dept. of Agriculture Director

There is a desire on the part of many consumers to support that local farmer in his or her products, McKinney said. And I tell ya, its heartwarming to see that.

Workers are finishing up construction on a Fresh Thyme store, opening in Bloomington next month. The store will specialize in local, organic food.

Then, a 365 by Whole Foods will open this fall within walking distance of Bloomingfoods flagship store.

Its a familiar situation for Bloomingfoods. Luckys, another specialized grocer that opened in Bloomington in 2015, siphoned a lot of business away from Bloomingfoods forcing the co-op to close the doors at its Elm Heights location the following Spring.

Bloomingfoods execs are taking a more aggressive stance this time. A group flew to Portland recently to see what theyre up against when Whole Foods opens.

So we wanted to get a jump on what the store was, what its gonna be, what might we need to do to compete better against that? Alongi says. So no, its not something we can wait. I think in fairness if you look at what happened when Luckys opened in town, we waited. And were not in a position to do that anymore.

The future, McKinney says, is about diversification. He thinks theres room for everyone because he doesnt anticipate demand slowing down.

The whole movement toward niche markets continues to grow nationwide and the same goes for here in Indiana, he says.

Excerpt from:

Indiana Grocers Adapt To Growing Demand For Local, Organic Food - Indiana Public Media

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February 25th, 2017 at 1:42 pm

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