Supervalu & Organic Growers: partnering up

Is this, finally, a little bit of the farmers' market spirit right in the centre of the supermarket? Is this some sort of a solution to the imponderable of supermarket dominance and a lack of significantly penetrating alternatives, especially in the UK or Ireland (well, really the whole English speaking world, where supermarkets have a hegemony when compared to mainland Europe)

And does SuperValu's franchise structure actively allow for such a thing to develop?

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Organic vegetable sales up 150% for the retailer and twice the area planted for the grower. That, in straightforward terms, is what has happened in Glanmire thanks to the new arrangement SuperValu have with organic growers.

Walking into the Glanmire Supervalu, you cannot fail to be impressed by what is Ireland's largest Supervalu store. What's more impressive, from an organic perspective, is the dedicated island one organic vegetable grower, Colum O Regan, has all to himself.

Supervalu's fresh fruit and veg people have a direct, one-to-one relationship with organic growers all over Ireland, and it is, if you will, a growing phenomenon.

(Pic: Una Ni Broin of Beechlawn house, one of the Enterprises that initiated the SuperValu organic growers initiative)

Rather than centralised distribution and anonymous placement within the rows and rows of various vegetables, Colum O Regan's veg has its own display area out on its own, with dedicated blackboards, Specially commissioned photographs, and even regular appearances by the man himself at stacking time.

These islands act as a little organic oasis amid rows and rows of self-same produce.

I asked Emma Rochford of Musgraves about this recent departure for their SuperValu stores. �To allow us to differentiate from other multiplies in the market, we have decided to work with local organic growers, bringing them into our stores and giving their product treatment in a different way.�

�We treat the local organic growers differently in that we guarantee them a particular space in the store in which to merchandise their product. This area or section will be dedicated to them. We then support them by providing the growers with complementary bespoke point of sale materials � blackboards on which to write their name and key offer, and personalised communications � so we have their image on the posters or shelf talkers, allowing locals to really identify the growers�

She continues �SuperValu recruits growers to come on board and helps to get them retail ready. The arrangements however are made solely between the individual stores and growers in question. We issue a number of guidelines or recommendations but between them the retailers and growers come to their own agreements on price, delivery dates, range of products supplied and so on. There is no fee or charge to the growers for supplying the stores.�

�They do really know what they are doing� according to Colum. �When they give you advice on how to sell more of this or that, through better use of your display area, it works�. He cites highlighting a round figure value offer on the blackboard as an example: �when you put the beetroot at a 2E deal, and put this on the blackboard, the customer really goes for it.�

It all began with Padraig Fahy and Una Ni Bhroin in east Galway in early 2009, who supplied 6 SuperValu stores in the region. Receiving various supports (e.g. grants for packaging and chilled delivery) and training, the couple initially road tested just two varieties. Now, they stock 15 seasonal lines.

According to Emma �Last year in 2010 we worked with 8 growers who supplied 20 of our stores. Our aim would be to have growers supplying 50 stores this summer. We currently expect to work with 14 growers over this summer season but are actively seeking more growers. Our aim would be to continue to grow the project year on year and to be in a position to have this initiative in 100 stores by 2013.�

According to Colum O 'Regan, the growers who supply Supervalu have started to �get together to swap knowledge informally�: �its very precise, even down to the pure agronomy of the whole thing. How do you supply a tonne of carrots every week? Two tonnes, ten tonnes, what ever it is. And at a good quality.�

Nevertheless, the numbers Supervalu are aiming for are ambitious. Already they are talking to growers who are in conversion about future opportunities.

�There are Supervalus in many towns in Ireland, and there might not be the grower there, yet, to supply to the required volume�. �But� he adds, �this sort of set-up might give them the confidence to start�.