INDIANAPOLIS -- Marsh Supermarkets here has stepped up its efforts to sell locally grown produce and has attracted new customers to its produce departments in turn.
Promoting locally grown produce, said Jim Richter, director of produce merchandising at Marsh, "has allowed us to broaden our sales reach. We're tapping into a group of customers who would have sought home-grown produce from other sources, such as farm stands or farmers' markets. We're definitely adding additional shoppers."
According to Richter, the company, which operates 87 stores in Indiana and Ohio, plans to increase purchases of produce from farmers in the two states by 150% this year. Last year Marsh bought $1 million worth of produce from 100 growers in its marketing region, an increase of 300% from 1992.
He said overall produce sales and customer traffic have increased over the period but couldn't say specifically how much of an increase was attributed to the local program. He said the increase in purchases from local farmers is an indication that "the program has been successful overall."
From a marketing standpoint, Richter said, the locally grown program helps Marsh set itself apart form the competition. "We believe this is a major point of differentiation for us."
He said that some independent supermarkets are promoting locally grown produce, but he knows of no other regional or national chain in Marsh's market that is doing it.
Making the program work didn't come without some challenges, Richter said. Many of the growers that supply Marsh had never sold to supermarkets before. Some didn't understand the nuances of meeting strict specifications and guidelines.
As a result, store-level produce
managers are assigned to work directly with individual growers to ensure their products meet Marsh's specifications. According to Richter, produce managers take on the role of a field buyer, communicating the company's needs directly to the grower.
"Farmers now have become more sophisticated in knowing what it takes to sell their products in supermarkets," he said.
From the consumer's point of view, Richter said, the program adds value to a shopping trip. "It supports the one-stop-shopping concept," he said. "Customers don't have to make an extra stop at a market or farm stand to buy locally grown produce."
He said the company promotes the program through its regular ad circulars as well as with in-store signs, which list the locally grown produce items and the farms where they were grown.
While he declined to say specifically how prices of local produce compare with produce from California or other parts of the country, he said the program allows Marsh to be "very competitive and offer good price impressions.
"We have a good network of farmers who can give the consistency in quality and supply that our stores need," he said.
More than 100 farmers provide products directly to Marsh stores as well as warehouses, he said. Products include sweet corn, green beans, cucumbers, tomatoes, peppers, zucchini, leaf lettuce, cilantro, cantaloupes, watermelons, pumpkins, squash, gourds, apples and cider.
Because of the wide variety of products and harvesting periods, Marsh is able to promote locally grown produce 11 months out of the year.
