Local sourcing, a key part of our approach to responsible sourcing, supports the local economy, which in turn is what our customers rely on for their livelihood. Demonstrating to customers that we support our communities through local sourcing also helps us build trust and loyalty. Providing opportunities to local suppliers also makes our associates feel proud to work for us.

In the longer term, we also see local sourcing as one of the key parts of our strategy to secure our supply chains. Closer relationships with suppliers mean we get better quality products, more responsive suppliers and when weather adversely affects crop yields, we are in some cases the priority customer.

Because we are a global business, the definition for ‘local’ differs across the Group. Our operating companies set their own strategies and work with small to medium-sized enterprises to find the best local products and promote them appropriately. Because of this, we have a wide range of examples from across our business.

More local products on the shelves

All of our operating companies increased their local assortment and invested in promoting local products in their stores in 2010. Following are some highlights:

• Mega Image launched their first range of local private brand products called Gusturi Romanesti, which are certified as following traditional Romanian recipes.

 
• Alfa Beta saw its Close to Greek Nature products sales increase by 7% since 2009.

 
• Super Indo increased their sourcing of fruits from local farmers.

 
• Sweetbay developed a new program focused on locally grown, raised, caught and made products with a continued focus on specific produce, such as strawberries and Florida peaches. The program earned the top rating from the state of Florida for the most frequent use of the 'Fresh from Florida' logo.

More local impact in our communities

We are proud of the partnerships we build with local farmers, which are based on building win-win relationships. Following are examples of impacts we have in local communities:

• Delhaize Belgium

  In 2010, Delhaize Belgium started a collaboration with Milcobel, a Belgian cooperative comprised of more than 3 000 milk producers (approx. one-third of all Belgian producers), to support local sustainable milk production. Delhaize Belgium began sourcing one specific milk product (semi-skimmed AA label) at a fixed price through this cooperative to ensure a better remuneration to the producers and enable re-investment in local production.

  AA label means best nutritional value, quality and safety as well as respect for animal welfare and the environment. If this collaboration with the cooperative proves beneficial for all involved, Delhaize Belgium envisions additional product collaboration with more cooperatives.

• Hannaford

  

  Hannaford’s sourcing from local farmers helped preserve a total of nearly
  25 000 acres (a little over 1 million square meters) of agricultural land and open space in the northeastern U.S. while also reducing pollution from transportation.

  Hannaford buys a large volume of produce from Backyard Farms, a company that operates a world class greenhouse in Madison, Maine. This greenhouse employs 200 local full time workers and for every three jobs at the greenhouse, one is also created in the community. Together they have drastically reduced the unemployment rate in surrounding communities.

  Nine organic dairy farmers from some of the most economically depressed areas of Maine formed a cooperative, MOOMilk, after a large milk processor suddenly stopped buying their milk. Hannaford partnered with the cooperative to help them get their milk to market and has sold their milk in most of its Maine stores since early 2010. Without Hannaford’s support, MOOMilk most likely would not have survived 2010.

   

• Sweetbay

  

  Sweetbay has been partners with Astin Farms, a strawberry and vegetable grower in Florida, for more than seven years. This partnership provides significant benefits to both companies. Sweetbay is able to locally source the best products at the best prices and Astin Farms is able to sell its products in volume in the local area. Sweetbay is also first in line to get products when weather related issues are having negative effects on production.

Being acknowledged for our positive impact

Hannaford won the 2010 Champion of Economic Development award from the Maine Development Foundation, a non-profit organization that promotes long-term sustainable development and protecting the environment. Hannaford was recognized for its job creation and capital investment in the area, support to local agriculture and suppliers, working towards improving education and health care and its and efforts to protect the environment.

Find Out More

Ask us a question