Are Independent Retailers a Viable Distribution Channel for Local Foods? Evidence from Vermont

Building strong local and regional food systems has been suggested as a way to revitalize rural communities, preserve the rural landscape, and improve nutrition of citizens. The challenges of increasing local food consumption focus on key drivers of demand that include geographic proximity, relationships with farmers, and support for local economies. There are also complicated demographic, psychographic and behavioral attributes of local food consumers, and issues of consumer access and affordability. The purported benefits of increasing consumption of locally grown food include improved farm profitability and viability, farmland conservation, improved public health, and closer social ties between farmers and consumers. An online survey of independent grocers was conducted in 2013 to determine the viability of using this retail channel to sell more local food in Vermont. Results show potential for distributing local products through the independent retailer supply chain. The most potential exists for the newer spirits category and the historically profitable local grocery items. There is also potential for increases in sales of prepared foods and meats. And, while there is demand for other product categories, revenue streams are lower. Importantly, the location and size of independent retailers, and population density of these locations, must be considered along with knowledge of demand.