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Fresh produce leaders from three of the nations’ largest and most recognized grocery operations gathered on stage for a Retailer Roundtable at the third annual Organic Produce Summit, July 12 in Monterey, CA.
Roger Harkrider, director of produce for Meijer, Inc.; Ron McCormick, senior director of global produce sourcing at Walmart Stores, Inc.; and Randy Riley, director of produce merchandising for The Kroger Co. fielded questions on some of the biggest challenges facing the organic sector. Tonya Antle, co-founder of the Organic Produce Network (OPN) served as moderator for the lively discussion.
(L-R) Roger Harkrider, director of produce for Meijer, Inc.; Randy Riley, director of produce merchandising for The Kroger Co.; Ron McCormick, senior director of global produce sourcing at Walmart Stores, Inc.; and ; Tonya Antle, co-founder of the Organic Produce Network
Walmart’s McCormick started the discussion by applauding how far the organic fresh produce industry has moved into the mainstream, describing that growth as a three wave phenomenon fueled first by retailers looking for something new and then by experts urging retailers to go bigger.
“Unfortunately, after those first big surges we saw a dramatic drop off in consumption,” McCormick said, “but in my view, dramatic differences in the marketplace today will mean this third wave will be very different. Organic products now have better quality, better consistency and better flavor. The other big difference is the demand today is customer driven.”
McCormick’s counterparts on stage echoed his optimism on organics’ current marketplace position and the potential for future growth, especially with millennials. Meijer’s Harkrider sees the millennial demographic - a lot of young families – associating health with the organic brand and also caring about sustainability and GMOs. “The organic space is such a great place for us with the millennials,” he said, adding, “and as they get established and grow in their buying habits, we believe we have a huge opportunity ahead of us.”
Ron McCormick, senior director of global produce sourcing at Walmart Stores, Inc.
From communicating the message to customer buying habits to organic integrity, the three retail leaders see big challenges ahead. McCormick said social media is becoming increasingly important in telling the story of organic and communicating directly with the customer. “Consumers prefer to hear recommendations from friends and family and influencers and not from experts or retailers. There is a buzz, a conversation and an education on social media that is driving consumption,” he said.
How and where customers buy is also evolving with the advent of online grocery shopping, which is becoming increasingly popular with younger consumers familiar and comfortable with technology. Kroger’s Riley said after some misgiving from consumers leery of others selecting their produce to be delivered to their home, the tide has shifted.
“There was an initial apprehension when the digital space began to grow that the produce customer would not engage digitally because of the feeling that they would want to see it, touch it and feel it. But that is not what we’re seeing,” said Riley.
Randy Riley, director of produce merchandising for The Kroger Co.
All three companies now offer some form of online shopping. McCormick put it simply, "Its just important that we give the customer what they want, when they want it and how they want to buy it.”
In a convention hall packed with organic and conventional produce farmers there were inevitable questions about how the two segments will co-exist in the future, but the retail leaders downplayed the idea of one over the other.
Roger Harkrider, director of produce for Meijer, Inc.; Randy Riley, director of produce merchandising for The Kroger Co.; Ron McCormick, senior director of global produce sourcing at Walmart Stores, Inc.
“Consumers want great products, and they want choice,” said Riley. Walmart’s McCormick also reiterated his company’s commitment to both. “Initially, we thought there were items where we could just carry the organic version and simplify things for the customer but what our customers told us was they wanted the reassurance that they could make the judgement on the price,” he said.
Looking to the future, the three industry leaders urged producers at the Organic Produce Summit to continue to innovate, ensure quality and consistency, and continue to refine and communicate their message.
