The world of food revolves around what customers want.
A demand for locally sourced food that is produced sustainably and has less packaging has forced retailers to change how they do business, said Paul Uys, formerly with Loblaws and now part of the University of Guelph’s Food Institute.
Suppliers are feeling more pressure from retailers, non-governmental organizations and consumers.
“Never before in the 40 years I was involved in food retail are the consumers setting the pace of where we are going,” Uys said at a food innovations conference in Calgary May 27.
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Sysco Foods, North America’s largest food distributor, has had similar experiences as customers demand local, source verified products, said Carmen Gunthorpe, who is part of the company’s Alberta network.
Sysco supplies restaurants, hotels and institutions such as hospitals or nursing homes. Its customers demand high levels of food safety and traceability so that it knows where to start the investigation if a recall happens.
“If we have a recall on spinach that could have gone out to 3,000 customers, it is our responsibility as a company to let each one of those know that they can pull it off the shelf,” she said.
A Loblaws survey of 1,000 customers found that nearly half of the grocery store chain’s shoppers were interested in locally sourced product and healthier choices. One-third wanted less packaging and waste reduction, while one-quarter said they wanted sustainable seafood, environmentally friendly foods, organic and were concerned about animal welfare.
Retailers are starting to look at the entire food chain, including back to the farm, and companies are involved in sustainable sourcing programs for seafood, beef, palm oil, cocoa, coffee and tea.
Customers are also making their preferences known in other ways.
“Canadians are focused on discounts,” Uys said.
“They want to pay next to nothing for everyday products, but when you get into lifestyle products, we are prepared to pay a premium.”
More consumers are moving toward “free from” products because they do not want artificial flavours, colours or antibiotics in their food.
Loblaws’ organic product line has been successful everywhere in the store but the meat case. Instead, the company introduced beef and pork containing no added hormones or antibiotics.
A picture of a farmer on a package of beef or pork can be successful be-cause customers think the producer is trustworthy.