Local and Fresh Foods in the U.S.

Table of Contents

Chapter 1: Executive Summary

• Scope and Methodology
  • Scope of Report
  • Definition of “Fresh Foods”
  • Definition of “Local Foods”
  • Report Methodology
• Market Overview
  • History of the Local Foods Movement
  • Media Spreads Global Green Culture
  • Retail Sales of Fresh Foods Total $230 Billion
  • New Sales Tracking Estimates Perishables Department Sales at $87 Billion
  • Table 1-1: U.S. Retail Sales of Perishable Products by Category, 2006 (in millions of dollars)
  • Market Size and Growth of Local Foods
  • Consumers Equate Freshness with Higher Quality
  • “Freshness” also the Top Reason Consumers Buy Local Foods
  • Consumer Attitudes Toward Fresh Ingredients
• Straight from the Farm
  • Smallest Scale Farms on the Ups
  • Figure 1-1: Share of U.S. Farm Production: 1997 vs. 2003 (percent) Organic Farming
  • Farmers Band Together to Market Their Products
  • Farmers Pursue Direct-to-Consumer Sales
  • Farmers' Markets Are Flourishing
• Retail Channels
  • Fresh Foods Showing Up in All Retail Channels
  • Local: The Next (Challenging) Step
  • Supermarkets Looking to the Perimeter
  • Supermarkets Shifting to Fresh Foods Formats
  • Convenience Stores Get Fresh
• Foodservice Channels
  • “Fresh” and “Local” Also Important in Restaurants
  • Fresh and Local Cross All Levels
  • Institutional Foodservice: The New Frontier of Sustainable Dining
  • School Foodservice a Growing Market
• Trends in Fresh Packaged Foods
  • Market Leaders Include Major Conglomerates
  • Smaller Marketers Also Find a Place at the Table
  • Natural, Fresh, and Organic Among Top Packaged Food Claims
  • Figure 1-2: Number of New “Natural,” “Fresh,” and “Organic” Packaged Food Introductions by Package Tag/Claim, 2004-2006
  • Branding Adds Cachet to Commodity Products
  • Pre-Prepared Products
  • Better-for-You Products
  • Getting Kids to Eat More Fruits and Veggies
• Looking Ahead
  • Trends and Opportunities

Chapter 2: Market Overview

• Scope of Report
• Focus on Four Key Areas
• What Is “Fresh”?
• Definition of Local Foods and History of the Movement
• How Local Is “Local”?
• Local Also Embodies Seasonal
• Media Spreads Global Green Culture
• It' s Hard to Be a Locavore
• Is “Locally Grown” the Next “Organic”?
• The “Food Miles” Concept
• Backlash to Bottled Water
• The Slow Food Trend

• Market Trends
  • Retail Sales of Fresh Foods Total $230 Billion
  • Fresh Foods Make Up 43% of the Supermarket Basket
  • Tracked Perishable Foods Sales $66.5 Billion in 2006
  • Table 2-1: IRI-Tracked Sales of Perishable Foods Categories, 2002-2006 (in millions of dollars)
  • Fast-Growing Fresh and Refrigerated Categories in Mass-Market Channels
  • Table 2-2: Highest-Growth Perishable Foods Categories by IRI-Tracked Sales Gains, 2002-2006 (in millions of dollars)
  • New Sales Tracking Estimates Perishables Department Sales at $87 Billion
  • Table 2-3: U.S. Retail Sales of Perishable Products by Category, 2006 (in millions of dollars)
  • Packaged Salads Lead Produce Department Sales
  • Figure 2-1: Top 10 Produce Department Categories, 2006 (% share of dollar sales)
  • Beef Accounts for Over Half of Fresh Meat Sales
  • Figure 2-2: Top Meat Department Categories, 2006 (% share of dollar sales)
  • Entrees Are 30% of Prepared Deli Sales
  • Breads Are 27% of In-Store Bakery Sales
  • Seafood Includes Both Fresh and Frozen Products
  • Market Size and Growth of Local Foods
  • Figure 2-3: U.S. Retail Sales of Locally Grown Foods: 2002, 2007, and 2011 (in billions of dollars)
  • A Broad Spectrum of Distribution Channels
  • Consumers Equate Freshness with Higher Quality
  • Freshness as a Perception
  • “Freshness” also the Top Reason Consumers Buy Local Foods
  • Benefits of Buying Local Foods
  • A Way of Romancing Food
  • Fresh and Local Foods as a Competitive Strategy
  • Retailers Shifting to “Fresh Format” Stores
  • Are Consumers “Fresh Stressed”?
  • Consumers Still Shopping Organic
  • The Wellness Factor
  • Food Safety Under Fire
  • Repercussions from the E. Coli Outbreak
  • Controversy Over Raw Milk
  • Farmers' Markets Also Under Scrutiny
  • States Lend Marketing Support to Local Foods Movement
• The Consumer
  • Simmons Consumer Data
  • Consumer Attitudes Toward Fresh Ingredients
  • Homemakers Most Likely to Seek Fresh Ingredients
  • One Out of Four Shoppers Seek Both Fresh and Organic/Natural
  • Figure 2-4: Top 10 Demographic Groups Who Look for Both the Freshest Ingredients and Organic/Natural Foods When They Cook, 2006 (index)
  • Table 2-4: Shopper Indexes by Retail Channel: Look for the Freshest Ingredients When They Cook, 2006 (U.S. adults)
  • Table 2-5: Shopper Indexes by Retail Channel: “Agree a Lot” That They Look for the Freshest Ingredients When They Cook, 2006 (U.S. adults)
  • Table 2-6: Demographic Overview of Consumers Who Agree That They Look for the Freshest Ingredients When They Cook, 2006 (U.S. adults)
  • Consumer Shopping Behavior
  • Consumers Scout Around for Fresh Produce
  • Table 2-7: Consumer Preferences for Food Purchasing Locations, 2006 (U.S. adults)

Chapter 3: Straight from the Farm

• Local Farms and Farmers' Markets
  • Smallest Scale Farms on the Ups
  • Table 3-1: Number and Share of U.S. Farms by Type: 1995 vs. 2003
  • Figure 3-1: Share of U.S. Farm Production: 1997 vs. 2003 (percent)
  • Organic Farming
  • Farmers Band Together to Market Their Products
  • Farmers Pursue Direct-to-Consumer Sales
  • USDA Adds Support
  • Farmers' Markets Are Flourishing
  • Figure 3-2: Growth in Number of Farmers' Markets, 1994-2006
  • Two Types of Farmers' Markets
  • Farmers' Markets Benefit Consumers, Farmers, and the Community
  • Benefits to Consumers
  • Benefits to Farmers and Small Producers
  • Benefits to the Community
  • The Markets in Off-Season
  • Farmers' Markets Face a Crop of Challenges
  • Whole Foods: If You Can' t Lick ' Em, Join ' Em
  • Trend Profile: NYC' s Greenmarket
  • Trend Profile: Seattle' s Pike Place Market
  • Community Supported Agriculture Programs (CSAs)
  • Organic Buying Clubs

Chapter 4: Retail Channels

• The Competitive Landscape
  • Fresh Foods Showing Up in All Retail Channels
  • Local: The Next (Challenging) Step
• Focus on Supermarkets
  • Supermarkets Looking to the Perimeter
  • Table 4-1: Top-Index Supermarket/Food Store Chains for Consumer Agreement with Statement: I Look for the Freshest Ingredients When I Cook, 2006 (U.S. adults)
  • Supermarkets Shifting to Fresh Foods Formats
  • Trend Profile: Safeway
  • Other Chains Also Following the Fresh Format Path
  • Independents Have Local Advantages
  • Key Perishables Departments Are Signatures for Supermarkets
  • Fresh Produce Produces
  • Meating Expectations
  • In-Store Bakeries
  • Dairy and Baked Goods Aisles
  • Deli Is Hot, as Supermarkets Build Up Takeout
  • Turning Grocery Stores into Restaurants
  • Table 4-2: Shopping Patterns by Supermarket/Food Store Chain by Agreement with Statement: I Look for the Freshest Ingredients When I Cook, 2006 (U.S. adults)
• Focus on Natural Food Stores
  • Natural Foods Tap the Mainstream Consumer
  • Trend Profile: Whole Foods Market
  • Aggressive Expansion Spearheads Growth
  • Criticism Moves Retailer Toward Locally Grown Foods
  • Corporate Drawbacks to “Buying Local”
  • Local Initiatives Are Competition Driven
  • Wild Oats Also Emphasizing “Local”
• Focus on Specialty Food Stores
  • Many Stores a Natural for Fresh, Local Appeal
  • Trend Profile: Stew Leonard' s
• Focus on Value Players
  • Supercenters and Mass Merchandisers
  • Trend Profile: Wal-Mart Stores Go Upscale and Local
  • Wal-Mart Goes Local
  • Target Emphasizing Fresh, Organics, and Meal Solutions
• Focus on Warehouse Clubs
  • Warehouse Club Units Proliferating Rapidly
  • Costco the Strongest Player in Fresh Foods
• Focus on Convenience Stores
  • Convenience Stores Get Fresh
  • Fresh Food Challenges
  • Emerging Competition from Britain and Japan
  • Trend Profile: 7-Eleven
  • Trend Profile: NexStore Marketplace
• Focus on the Internet
  • A Renaissance for Online Grocers
  • Trend Profile: FreshDirect

Chapter 5: Foodservice Channels

• Restaurants
  • “Fresh” and “Local” Are Important Marketing Attributes
  • Fresh and Local Cross All Levels
  • In the Restaurants
  • Chez Panisse and Alice Waters
  • Blue Hill and Dan Barber
  • Frontera Grill and Rick Bayless
  • Wolfgang Puck
  • Lettuce Entertain You
  • Ruby Tuesday
  • Chipotle Mexican Grill
  • Buying Local Is Challenging But Beneficial
  • Report Highlights Drawbacks and Advantages to Foodservice Sourcing of Locally Grown Products
  • Trend Profile: Burgerville
  • Table 5-1: Restaurant Chain Usage by Agreement with Statement: I Look for the Freshest Ingredients When I Cook, 2006 (U.S. adults)
• Institutional Foodservice
  • The New Frontier of Sustainable Dining
  • Trend Profile: Bon Appétit Management Co.
  • Trend Profile: Google' s Café 150
  • Trend Profile: Kaiser Permanente
• School Foodservice
  • A Growing Market
  • Trend Profile: Yale University

Chapter 6: Trends in Fresh Packaged Foods

• Overview
  • Market Leaders Include Many Major Conglomerates
  • Smaller Marketers Also Find a Place at the Table
  • Natural, Fresh, and Organic Among Top Packaged Food Claims
  • Figure 6-1: Number of New “Natural,” “Fresh,” and “Organic” Packaged Food Introductions by Package Tag/Claim: 2004-2006
  • Branding Adds Cachet to Commodity Products
  • Pre-Prepared Products
  • Better-for-You Products
  • Getting Kids to Eat More Fruits and Veggies
  • Package Sizes Suit Different Family Sizes and Channels
  • Trends in Fresh Produce
  • Salad Days
  • Ready-to-Cook Vegetables Use Advanced Packaging Technologies
  • Other New Produce Items
  • Pre-Cut Fruit
  • Superpremium Fresh Juices
  • Meat and Poultry
  • Deli Department
  • Deli Meats Go Natural
  • More Marketers Offering Refrigerated Side Dishes
  • Dairy Department
  • Yogurt
  • Cheese
  • Refrigerated Make-it-Yourself Pizza
  • Eggs
  • Orange Juice
  • Bakery Department
• Trend Profiles
  • Casa Sanchez
  • Chiquita Brands International
  • Kraft Foods
  • Fresh Salads a Fresh Focus
  • Oscar Mayer Extending its Lunch Equity to Adults
  • Jazzing Up Cheese and Dairy Products
  • La Brea Bakery

Chapter 7: Looking Ahead

• Freshness Is Crucial for the Food Industry
• Reorganizing the Store for Fresh Foods
• “Eating Local”: Trend or Fad?
• How to “Go Local”
• Targeting Hispanic Consumers
• Meal Preparation Stores: Cooking Out-Eating In
• Gunning for Whole Foods
• Advances in Technology Will Aid Freshness

Appendix: Addresses of Selected Marketers, Retailers, and Restaurants and Foodservice Providers