Camden Food Economy Strategy October 25, 2013 Campbell Soup

Camden Food Economy Strategy
October 25, 2013
Campbell Soup Company
The Reinvestment Fund
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in community investments
$700 million
in capital
under management
800
individual & institutional
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New Jersey Food Access Initiative
TRF organizes & manages publicprivate partnerships to improve
access to fresh foods in
underserved communities
Public Policy Advocacy
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Improve access to healthy
foods
Foster better health
outcomes
Support small business
development
Create & retain jobs
Revitalize communities
Contribute to local food
system development
Incent public-private
partnerships
Healthy Food
Financing Initiative
A National Campaign
Research & Analysis
• Economic Impacts of
Supermarkets
• FFFI Rural Grocery Case
Study
• Limited Supermarket
Access (LSA) Study
• Food Systems Research
Building Capacity
www.healthyfoodaccess.org
Camden’s Institutional Food Sourcing
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Food Service Industry Timeline
Selection of Institutions
Interview Topics
Key Findings
Food Vendors and Managers
Recommendations for Policy and Planning
Camden’s Institutional Food Sourcing
Food Service Distribution
 Created in response to The National School Lunch Act
(1946) – known as “institutional distribution”
 Restaurant growth further expanded distribution: 25% of
food dollars in 1950s to 49% today
 Sysco was formed in 1970 by 10 independent distributors
with a broad geographic scope
 Industry is now an oligopoly due to economies of scale in
warehousing and transportation
 Technology is the new “economies of scale” – real time
inventory, long-term delivery and supply chain schedules,
computerized transportation routing, and even apps…
Selection of Institutions and Vendors
 Selected 12 institutions from DVRPC’s Stakeholder
Analysis
 Hospitals (3), primary and secondary education (4),
higher education (3), and two others
 Responses from the first 5 institutions revealed
additional food supply networks
 Exploring rabbit holes…
Interview Topics
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Primary food sources
Interest in purchasing regional foods
Options to purchase regional foods
Barriers to purchasing regional foods
Interest in collective purchasing with other
Camden institutions
Key Findings
Interest in Regional Foods
 Strong interest, but significant barriers
 Sometimes part of organizational mission
 Driven by health, regional economy, sustainability,
and consumer preference
“There is no lack of interest in purchasing local foods, but
someone needs to make it easy. Even if it costs more.”
Key Findings: Primary Food Sources
National Managers
 Aramark
 Sodexo
National Vendors
 Sysco
 US Foods
 Compass
Regional Vendors and Distributors
 Common Market
 Ambrogi Foods
 Nu-Way
 Novick Brothers
Prepared Meals
 Local catering companies
 Revolution Foods
Key Findings
Options to purchase regional foods
 National managers offer fewer regional options – they control the
entire process (Aramark, Sodexo)
 National vendors are more committed to regional options – customer
demand and regional offices (Sysco, Compass, US Foods)
 Small to medium size regional vendors are the most likely to sell
regional foods – fits their supply chain and scale
 Dairy and grains are almost universally sourced from regional
producers, even by national managers
 Proteins are the most difficult to source regionally
Key Findings
Barriers to purchasing regional foods
 Cost
o Schools are limited by federal reimbursement
o Hospitals and Universities are less constrained, but still cost conscious
 Ease of acquisition
o Many respondents cited this as the largest barrier
o Having more than one or two vendors requires too much time
 Seasonal production
o Menus are often planned quarterly, requiring steady supplies
o Northeast is a higher-cost market for regional foods due to limited growing
 Safety and quality
o Hospitals and educational institutions are especially concerned about safety
o Consistent quality is important when planning menus far in advance
Key Findings
Interest in Collective Purchasing
 Smaller organizations are interested, but wary of
scheduling conflicts, choice, and bureaucracy
 Larger institutions are less interested, as they tend to use
food managers
 Some institutions participate in group purchasing
organizations (GPO)
 GPOs are often associated with specific vendors or
industries
o Sysco and Compass have dedicated GPOs
o HealthTrust GPO represents 1,400 hospitals
Independent Food Vendors
Common Market
 Common Market sources local and regional produce and sells to
a wide range of organizations and institutions, including schools,
hospitals, and grocers
 Full product line, with seasonal variation
Nu-Way
 NJ-based distributor to childcare centers and charter schools
 Full product line with both regional and international sourcing
Novick Brothers
 Philadelphia-based distributor to childcare centers, independent
institutions, and restaurants throughout Mid-Atlantic
 Full product line with both regional and international sourcing,
including paper goods and cleaning supplies
Sysco
Recommended Strategies
 Develop a food inventory system that coordinates the collection
and distribution of regionally produced and processed foods –
the inventory system would be more logistical than physical
 Work with Sysco to make the Camden region one of its test
markets for regional food sourcing (Grand Rapids, Kansas City,
and Chicago are current test markets)
 Explore the potential for creating a Camden group purchasing
organization (GPO) that represents a wide variety of institutions,
regardless of their services.
 When creating regional food strategies, focus more on the
region’s producers and processors of livestock, poultry, and
seafood – distributors and interest groups seem overly focused
on the region’s capacity for fruits and vegetables
Supply Chain Matrix
Contact Information
TRF Policy Solutions
Lance Loethen
Research Associate
TRF Policy Solutions
[email protected]