This story was originally published in October in SeafoodSource’s Key Buyer 2023 Industry Update – Fall Edition.
In an effort to maintain a steady presence of local and sustainable products on shelves amid a global pandemic, several significant players within the North American grocery space began rolling out virtual pitch events and accelerator programs to engage underrepresented suppliers. In 2021, for example, Cincinnati, Ohio, U.S.A.-headquartered Kroger launched its Go Fresh & Local Supplier Accelerator, taking another step toward its overarching goal of investing USD 10 billion (EUR 9.5 billion) in diverse suppliers by 2030.
“Kroger is fully committed to supporting a diverse group of innovative, local suppliers who can bring a great assortment of fresh products to our customers,” Kroger Chief Merchant and Marketing Officer Stuart Aitken said at the time.
These programs seem poised to stick around post-pandemic. In fact, many of them are branching out.
Last year, Austin, Texas, U.S.A.-based Whole Foods Market debuted its Local and Emerging Accelerator Program (LEAP), an initiative designed to support the company’s “longstanding core value of seeking win-win partnerships with local suppliers.” The retailer has since expanded LEAP to include two tracks: Early Growth and On the Verge.
Participants in the Early Growth track will be eligible to receive a USD 25,000 (EUR 23,440) equity investment from a donor-advised fund managed by the Austin Community Foundation, according to Whole Foods. Of the 1,000-plus applications received for the program, 10 innovative food brands not yet sold on the retailer’s shelves have been chosen for the Early Growth 2023 cohort, including Seed to Surf, a plant-based seafood analog provider. The company’s portfolio of products currently includes mushroom snow crab and celery root smoked whitefish.
“By preserving and preparing them just right, we’ve discovered that whole vegetables can offer intriguing new takes on the premium tinned seafood you’d find at top restaurants and high-end grocers. These alternatives aren’t a compromise; they’re a fresh reinterpretation of seafood that highlights the potential of plants,” Seed to Surf’s website states.
Once the 12-week LEAP: Early Growth curriculum is completed, each suppliers’ products will be considered for placement on the shelves of Whole Foods Market stores in their home city or region, the retailer said.
Meanwhile, the On the Verge track is a new creation geared at expanding the LEAP opportunity to current local and emerging Whole Foods Market suppliers, the company said.
“These suppliers are currently sold in select stores, already demonstrate strong growth potential, and are poised for success. On the Verge brands are also considered innovative in trends, flavors, community engagement or sustainability, and demonstrate mission and values which align with Whole Foods Market’s own core values,” Whole Foods said in August 2023.
Whole Foods Market Merchants and Foragers selected the 10 On the Verge brands undergoing the 2023 curriculum, with kelp chip brand 12 Tides among them. The California, U.S.A.-based organic kelp snacks innovator sells a variety of flavors of puffed kelp chips, including truffle and pepper, vegan cheddar, chili pepper, everything, and sea salt.
“We’re creating a food system that heals our oceans, starting with the most climatepositive food out there – kelp. We believe that kelp will play a key role in turning the tides against climate change and restoring the health of our oceans,” 12 Tides said on its website. In November 2022, the firm sold its millionth bag of kelp chips.
Whole Foods Market Senior Vice President of Merchandising Alyssa Vescio said the On the Verge track “will help brands explore the next stage of their growth potential, providing mentorship from both Whole Foods Market team members as well as industry peers and experts.”
“LEAP has been one of the most rewarding ways to support the local and emerging brands that bring incredible products and innovation not only to Whole Foods Market stores, but to our broader communities. These are truly the brands to watch,” Vescio added.
In October 2023, Grand Rapids, Michigan, U.S.A.-based Meijer will be virtually hosting its second Sustainability Summit, an event meant “to give even more vendors nationwide the opportunity to showcase their environmentally-focused products for Meijer merchants to consider offering on shelves,” the U.S. chain – which operates over 250 stores in the U.S. Midwest – said in August 2023.
The retail company is seeking Best Aquaculture Practice (BAP)-certified seafood and other sustainable products via the summit, which ran from 11 to 13 October.
“The Meijer Sustainability Summit aims to build relationships with environmentally conscious suppliers to expand its sustainable product offerings in categories storewide,” the retailer said. “In order to meet its sustainability standards, Meijer merchants are targeting 38 different certifications on vendor products or their manufacturing and procurement processes. For example, seafood merchants are looking at vendors following the Best Aquaculture Practices, and toy merchants are interested in vendors that have Ecologo certifications to ensure products are made without harmful chemicals. Meanwhile, the retailer’s grocery and consumable merchants are looking for vendors who participate in the Rainforest Alliance certification program that validates standards on forests, climate, human rights and livelihoods. Meijer is also seeking products across all categories with sustainable packaging attributes.”
Meijer is partnering with Efficient Collaborative Retail Marketing (ECRM) and its subsidiary product discovery tool, RangeMe, for the event, which will be hosted through the company’s ECRM Connect virtual platform. The grocer accepted product applications through 25 August; once Meijer has reviewed the applications, it plans to select and invite specific vendors to the virtual summit for further interaction. Suppliers not chosen for the event, however, will still be accessible through the RangeMe registration tool, where Meijer merchants can revisit their bids in the future as business needs change, the retailer said.
“At Meijer, we understand that to be a good company, we must be a good neighbor, which is why we’re interested in meeting new vendors to further integrate sustainability attributes into our product offerings and daily operations,” Meijer Chief Merchandising and Marketing Officer Dan Sanderson said. “We want to provide our customers with the great products they’re looking for while also being mindful of the impact those products make within our communities and the world around us.”
Walmart, too, is looking to engage entrepreneurs and small business owners in 2023 with its annual open call event. The hybrid-style product pitch event will take place online and in tandem with a month-long, countrywide touring initiative, which features a two-day gathering in Walmart’s Bentonville, Arkansas, U.S.A.-based headquarters from 24 to 25 October.
Small suppliers and innovators were encouraged to apply by 18 August for the chance to gain shelf space at Walmart, Sam’s Club stores, or on Walmart.com. Chosen finalists will receive mentoring sessions with Walmart leaders, as well as a one-on-one pitch meeting with Walmart or Sam’s Club merchants, the enterprise said.
In 2022, more than 1,100 U.S. businesses participated in the program, with 350 pitches resulting in “golden tickets,” or opportunities for suppliers to sell their products via Walmart and the Walmart-owned Sam’s Club retail chain.
“Investing in U.S. manufacturing is not only the right thing to do for the country’s long-term economic health, it’s the right thing to do for customers today who are dealing with historic inflation,” Walmart President and CEO Doug McMillon said. “We’re excited that more and more great products at strong price points are being produced in the U.S. Our USD 350 billion [EUR 320 billion] investment in items made, grown, or assembled in the U.S. helps deliver our customers the goods they need, when they need them, at affordable prices, while supporting the creation of more than 750,000 jobs.”
Like Meijer, Walmart is partnering with RangeMe for the event. For 2023, the company has added a “Lead with Local Snacks” initiative – promoting locally made snack foods at 130 U.S. stores – to its open call.
“Through this initiative, Walmart sells locally made snacks prominently in stores, connecting customers to products from businesses in their hometowns,” Walmart Senior Vice President of Supplier Development Jason Fremstad said.
Southeastern Grocers (SEG) collected applications through 11 September for its virtual Local and Diverse Supplier Connect event aimed at collaborating with “underrepresented suppliers, and in turn, [providing] stores with an expanded variety of locally relevant and diverse products.” The annual forum, which took place in November, is intended to help SEG further expand its sourcing in these key areas. The retailer already works with 300 diverse and local suppliers operating across the U.S. states of Alabama, Florida, Georgia, Louisiana, and Mississippi, but is looking for more connections, it said.
“During the upcoming [event], participants will have the opportunity to engage with SEG buyers and category managers to share their company background, product information, and marketing plans,” the retailer said.
Photo courtesy of Meijer
