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Small Bites November 10, 2022 Making a difference by creating opportunities to promote & sell more VT products to more buyers in the northeast & beyond

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We all know prices are rising, "competition" is being squeezed in production, distribution, & retail. But few of us understand the costs through the lens of private equity firms. We have mentioned in past Small Bites that acquisitions can lead to closing of businesses, significant changes, or uncertainty (think AIAC & VT Bread Company & Koffee Kup Bakery, remember Dannon? & VT Coffee Company ?) Private equity companies buy & sell companies solely for the return to shareholders, deep returns, or the "competitive image" of lowering prices to increase sales for the consumers' benefit. Vermont companies seeking to scale their businesses to the national level takes significant money, often only available by using private equity acquisition companies.   If any of you want an inside look at how private equity devours companies with long established roots & significant employment opportunities particularly in rural areas. Read this current, topical article which showcases the intersection of laws, of politics, & the need for financial gains in the creation of a system that allows the sabotage of acquired businesses for the sake of making money for a few. Kroger & Albertsons might be the latest regarding the abuse, but it is not a one-off. The article leads us to an understanding that this is a manipulated system for which power may lie in the hands of several states attorneys generals to highlight the need for a system that actually works for the greater benefit of our society.   "But even if $4 billion cash grab isn’t part of a diabolical conspiracy to circumvent antitrust law to force an illegal merger, the D.C. lawsuit maintains, it still, in itself, constitutes an unlawful restraint of trade under Section 1 of the Sherman Act"

Forum: A Resounding Success Last week the 5th Annual Producer Buyer Forum was held at VTC in Randolph. We had a great turnout despite a few last-minute cancellations due to staffing gaps, farm-based quandaries, covid, & other factors.   Each year the Forum brings together the full slate of folks engaged in getting food to markets. This year we had several new Vermont specialty food producers, dairy farmers, regional distributors & store buyers. The way I see it everyone in the room has perspectives & experiences worthy of sharing. That is what makes the event so unique.   Fulfilling the global foods category were Dosa Kitchen & Delna's Kitchen providing cross cultural perspectives. Both of these businesses gained from multiple interactions with attendees while noting key information from a panel of seven speakers. Newly rebranded or introducing new packaging included Vermont Quince & Mixed Up Nut Butter. And for perspective on how a business re-aligns with its mission, Pin Up Pickles spoke to the quandaries of scale, as did Ryan Emmons with Nut Free Chocolates who has a wealth of experience growing specialty food businesses. Buyers from Woodstock Farmers Market, South Royalton Market, Springfield Coop, Brattleboro Coop were some who shared their experiences developing strong local food programs.   All in all, this was a great day of sharing, with more to come through grants from the High Meadows Fund & USDA. Thank you to all who attended (& those who had to cancel last minute, stay tuned for more support services). Esther, recently hired by Farm to Plate attended her first Producer Buyer Forum & was thrilled KIS Kombucha brought samples! Reminder: Harvest of the Month has fabulous recipes & resources to educate staff & shoppers about food choices & varieties Just in Time: All Things Pie Hillside Lane Farm known for their allergen free food lines, are providing local distribution with retail & foodservice Gluten Free Pastry Pie Crusts in 9" tins, Gluten Free Roll-Up Pie Crusts, as well as new flavors. Maple Graham Crust & award winning Brownie Pie Crust made using "upcycled" ingredients trim from their Fudgelicious Chocolate Brownie. Another seasonally timely SKU is the kosher & gluten free Mini Carrot Golden Raisin Mini Bundt Cake. It makes for a perfect grab & go gift for holiday gatherings.   Products are available through Faire, shipped direct to stores, or delivered via PFG & Wilcox. It's that time of year! Stores are partnering with local producers for 4th Q sales through the gift category. Pre-ordered gift boxes became a more viable option for independent stores during earlier days of covid.   Utilizing locally curated products builds trust with shoppers. The Genny in Albany & Craftsbury loves showcasing locally crafted products to their loyal customers & those passing through.   Brownesville Butcher & Pantry goes full tilt with cross-marketing for their customer base which, like many stores in Vermont relay on seasonal customer swings. Think holiday skiers, outdoor adventurers seeking to purchase local gift baskets.   Promotions for these marketing ideas use social media tagging, super targeted emails, & prominent in-house displays round out their strategy to drive sales & can build customer allegiance.  Pro Tip: Pricing-Marketing Mix Fourth Quarters are super busy at stores, distributors, & food manufacturers.   Inflated prices across all cost factors introduce new strategies. Nurturing existing wholesale & retail accounts before the end of the year can be a challenge. Often new companies don't quite understand the 4Q timelines, thereby hindering communication & delaying opportunities.   Seasonal swings require sensitivity to understanding your sales, so do the swings in our economy. Are you keeping pace with your messaging to cover the swings? Part of the formula is price but navigating the conundrum of selling a products’ uniqueness with commensurate packaging sizes & pricing comes into play.   A promotional & pitch strategy can incorporate your use of local ingredients building on your multiplier effect. Also think about how to build relationships with your wholesale & retail allies: ways of getting store staff to be more engaged with your products. Providing samples to delivery drivers, stockers, receivers, & marketing folks are valuable ways to gain visibility.   Decades ago, T&D Willey Farm in the Central Valley built an East Coast allegiance with a creative way to get staff engaged. In their cases, were cartoons, food-jokes, & topical quotes by Wendall Berry & others. This became a fun way to connect with produce stockers across the country. It worked! Their product was top notch quality as was their low-cost marketing. Nurture your wholesale & retail accounts- this can include taking care of drivers who pick up your products all the way through to stockers.  Values-based Messaging Consolidation & globalization in the food industry allow powerful retail brands to leverage their volume purchasing power & benefit from low prices. This creates downward pressure on farmers’ incomes & ultimately, on farmworkers’ wages & working conditions.   Stores & producers can share their values with direct links to value-based companies & consumer initiatives. Milk With Dignity is one working hard in Vermont to improve the living & employment conditions with a focus on dairy farms. Is your dairy-based business, store, or distributor making it clear that you are aligned in your values. And are you sharing your values effectively with your customers? Use tools available to help cross-promote your principles to educate staff & shoppers.  Speaking of consolidation... readers should read about Kroger's & Alberston's & the role of private equity for capitalization.

Good Seasonal News! Our local turkey processors are busy! The flocks look good with larger size birds to meet the demands of more, larger family Thanksgiving gatherings. Misty Knoll Farm, pictured above, is seeing strong sales for stores with pre-orders. Stores   Cranberry Season is here in full swing While not as well-known as Donut Season in Vermont, it is none the less a season of note! I may be wrong, but I think we have one cranberry producer driving the season. Vermont Cranberry Company is shipping through Pumpkin Village Foods. The fresh berries make for the basis of great front of store displays; Healthy Living Market is just one of the many stores taking part in cranberry season. The store has been a longtime supporter introducing its customers to the beauty of this late season berry. The fresh berries ring in Thanksgiving sales while the cranberry juice is a winter elixir restoring vitality & aligning with shoppers' emphasis on healthy food choices for the arrival of winter.  A seasonally appropriate display with squash, cider jack, cranberries. Not too cluttered, easy to shop, & holiday focused. Well done Healthy Living! Forgot to read the previous issue? Catch it here. We resend Bites if you haven't opened it on its first run through. Wrapping Up Sales   Farmstands are wrapping things up & winding down. Several stay open until the end of the year, while others might make it to Thanksgiving. Sweet Roots Market will be focusing on gift sales before they wrap up the farm stores for the season. From local artisans to fine foods, they promote the local economy, as do many farmstands that stay open into the gift giving season.   Though farmstands close, many of our farms offer winter CSA options for winter greens, storage crops, a wide selection of meat, & various add on products. This engages shoppers while also providing cash flow to enter the slowest season of the year for farm sales. FUNJ. Shrooming Company is an urban farm that cultivates delicious sustainably cultivated mushrooms. Their mission is to get delicious fungi onto people’s plates. Among a backdrop of fads they promise to let curiosity lead the way. Their aim is for nothing less than minimal harm & maximal environmental & social sustainability. With farmers markets & direct to store deliveries their mushrooms have cultivated quite a following. Sweet Clover Market & The Village Store of Waterbury are two of the stores generating sales of these premium mushrooms. Besides bulk & retail pack sizes, they also offer a "grow at home kit" perfect as holiday gifts.  Keep your eyes peeled! Clearfield Farm in Granville has partnered with VT Way Foods on a branded potato line. Aligning with VWF they can focus on what they do well in their farm's bottom-land soils: producing high quality potatoes! Vermont Way Foods then works on the packaging & branding.  As food aggregators they are building relationships with distributors to connect retail & institutional partners with source-identified, farm-fresh produce & artisan cheeses. They are currently finalizing steps to get products to market through multiple production & branding partnerships.  West River Provisions in Jamaica is selling pre-ordered Stonewood Farm Turkeys. Time is running out to order. Then comes putting a system in place for pickups! Here are a few tips for "Thanksgiving organizing" for stores to streamline their busy days. Did you know? Vermont’s Weights and Measures Program coordinates inspection & testing of devices & products in commerce, such as scales, & scanners used in retail & farm stores. They produce a seasonal e-news on farm & consumer related issues. Sign up for it here. Questions pertaining to the Weights & Measures Program should be directed to the Vermont Agency of Agriculture, Food & Markets State Metrologist at 802-828-2433 Bennington Community Market is getting closer to opening!   By supporting local farmers & food manufacturers, they will increase access to healthy food for all members of the community while revitalizing downtown Bennington. Many organizations & community leaders have collaborated to fulfill many pressing needs. Stay tuned for the opening date! Attention Food Manufacturers The Vermont Agency of Ag along with the VT Specialty Food Association are hosting "trade show preparation" webinars. This free series with Steve Redmond of Rival Brands teaches ways to freshen up your marketing. Steve has helped many brands grow their sales with his decades of experience. For info on joining this group, contact [email protected]

Word on the street: Mirabelle's pie dough is going to be tight this holiday season. Staffing is cranking to keep up with demand. Lesser Distribution is crisscrossing state delivering dough & feels its going to get really bonkers! Remember that Hillside Lane Farm has pre-made pie shells.

Farm to Plate resources for stores & producers to become better educated on retail variables.

Be in Compliance: Know Vermont's Local Food Definition

Small Bites comes to you via USDA & High Meadows grants. Content is created for farmers, food manufacturers, distributors, grocers to increase VT food sales Contact: Annie H Harlow [email protected]  Unless otherwise noted, photo credits are from company social media, websites or Annie Harlow All info is subject to change; thank you to all who contributed to this issue & attended the Forum!