1. 1
TRANSLATING THE SUCCESS OF
LOCAL PRODUCE IN THE FROZEN MARKET
May 6, 2016
Why Local
It’s no secret that the consumption of
locally grown produce has increased
rapidly over the past two decades. Since
2002 there has been a 375% increase in
demand for local food generating a local
market of $6 billion USD in total.1
83% of
grocery shoppers express a preference for
locally produced products.
Why do consumers love local?
The top three reasons include freshness,
concern about supporting the local
economy, and superior taste.1
According to
a study that explored the interactions
among multiple attributes of produce, the
willingness to pay for local was higher than
for certified organic, certified fair trade, and
carbon footprint.1
While the
market for local is
large, the produce is
not easily
accessible.
What do consumers like
about locally grown products?1
How can we make this more convenient? Then BrightFarms entered the market.
Case Study: BrightFarms
BrightFarms recognized the demand for easy-to-access
produce grown in the same communities where it’s
consumed. This guiding principle has led to the construction
of greenhouse farms at or near supermarkets that reduces
not only its carbon footprint, but also costs.5
“For parents, feeding our
children healthy food is
always on our minds. I
know for me that the winter
has made it tough to eat as
locally as I'd like.” -Jaclyn2
Limitations of Farmers’ Markets
Farmers’ markets are typically frequented by a narrow
segment of society, especially White and middle to upper
class.1
In addition to this limitation, a study about the most
important reasons for attending farmers’ markets pinpointed
that convenience was ranked last while local food was ranked
first.3
59% of people will travel at most five miles to attend
farmers’ markets.4
People are deterred from attending farmers’ markets because
of the inconvenience.
However, consumers enjoy building relationships with local
farmers at these markets and knowing exactly where their
food comes from. Many are willing to visit the market as early
as January, but due to seasonal factors, most end up only
visiting in May or later.4
Let’s take a look at what’s already been done.
2. 2January 2016
——-
1
"Trends in U.S. Local and Regional Food Systems." International Year Book and Statesmen's Who's Who (2015):
n. pag. United States Department of Agriculture, Jan. 2015. Web. 29 Jan. 2016.
2
Bruntfield, Jaclyn. "Feeding Kids Well Through Community Supported Agriculture." Patch Media, 20 Feb. 2011.
Web. 29 Jan. 2016.
3
Baker, Daniel, Kelly Hamshaw, and Jane Kolodinsky. "Who Shops at the Market? Using Consumer Surveys to
Grow Farmers' Markets: Findings from a Regional Market in Northwestern Vermont." The Journal of Extension
( JOE ). Dec. 2009. Web. 23 Feb. 2011.
4
Conner, David S., Adam D. Montri, Dru N. Montri, and Michael W. Hamm. "Consumer Demand for Local Produce
at Extended Season Farmers’ Markets: Guiding Farmer Marketing Strategies." Renewable Agriculture and Food
Systems, 18 Sept. 2009. Web. 29 Jan. 2016.
5
"BrightFarms." BrightFarms, n.d. Web. 29 Jan. 2016.
6
Dorbian, Iris. "Local produce Grower BrightFarms Nabs $13.65 Mln." The PE HUB Network, 06 Nov. 2015. Web.
29 Jan. 2016.
7
"BrightFarms Closes on New Financing." Supermarket News. Penton, 6 Nov. 2015. Web. 29 Jan. 2016.
8
“Seasonality Chart." (n.d.): n. pag. Durham Farmers' Market. Web. 29 Jan. 2016.
Written by Sneha Venkatraman | Kenan-Flagler Business School
Case Study continued
By developing long-term partnerships with
retailers, cities, capital sources, and
vendors to finance each greenhouse,
BrightFarms has emerged as a thought
leader in the local food movement. Its
sustainable growing methods utilize
considerably less energy, land, and water
than conventional agriculture.6
In addition to its sustainable and cost-
cutting practices, BrightFarms is
committed to improving the health of
society and providing excellent
customer service for its clients.5
By differentiating itself as the first to brand
itself as a company that offers local, year-
round produce, BrightFarms creates value
for its consumers in a previously
undifferentiated market. This has resulted
in brand loyalty, a large amount of seed
funding, and the company’s continued
success.7
Fresh Convenient
All year-round
Convenient
All year-round
Currently, the growing
season for produce is
limited to less than a
3-month window.
NC Fresh Fruit and Vegetable Availability8
Growth Potential
How do you connect consumers with local
farmers while also making locally grown produce
conveniently accessible, all year round?
Similar to the fresh produce market prior to
BrightFarms, the frozen produce market is
undifferentiated. Packaging and branding
can create customer loyalty for locally
grown produce—an untapped aspect in the
frozen produce market.
What if there was a way to bring locally
grown produce from
Farm Freezer?
That’s where Seal the Seasons comes in.
In November 2015, BrightFarms
closed a $13.65 million Series
B-1 financing led by investors
including WP Global Partners
and NGEN Partners.7
How do you translate BrightFarms’s success to the frozen market?