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Much Going on Locally, Nationally, Internationally & Beyond

The start of the new year always has a period of retooling with reflection, planning, & projections. It happens for businesses, organizations, & at the personal level. It is happening this week with our storms caused through human evolution. The status quo has reached a new point. Perhaps a turning point to address what we collectively call "resilience" as we continuously respond to the now ever-present disrupted impacts on the climate.

Only nine days into the new year & a ferocious storm blew through the entire East Coast with highs winds taxing our Vermont electrical grid upon which society is fully reliant to support our farms, food manufacturers, distributors & of course stores. Another is arriving tonight. As we look to what's in store for '24, more preparation to adapt to the new normal of uncertainty will become necessary. 2023 was confirmed as the warmest calendar year in global record keeping data since 1850.

Climate scientists predict this year will beat out 2023 as the hottest on record with ocean temperatures rising furthering the destruction of coastal communities. Just this week, the working seacoast of New England, &

especially in Maine, was decimated by tidal surge wreaking havoc on lobster

industry from boats through to processing & distribution. The lobster industry is primarily serving Japan & Las Vegas with little impact directly in Vermont. However, this storm damage will have ripple effect on the adjacent businesses in the supply chain. As seafood has shifted from seasonality & multi species to high tech-lobstering the multiple ripples are less impacting to the region that it once was.

So how do we keep on keeping on as business as usual in this new period of uncertainty? How useful are our plans, projections & reflections as we grapple with & test our unrelenting resiliency? Our collective spirits are breaking, lessening the “power” of resilience. And yet, everything is intrinsic and tied to capitalism. Our food system is a high-energy user currently reliant on fossil fuels. The incentives for full-scale change are not coming fast enough to keep up with our need to respond, repair, & recover from each storm. Reducing the “resilience” we so admirably and so often lay claim to.

All that said, there is a lot of good info included in this issue. Read on & remember to share things of interest.  

“The fact that we are in uncharted territory, we don’t actually know what will happen next,” said Carlo Buontempo, director of the European Union’s Copernicus Climate Change Service per WAPO 1/2/2024

"Don't Tell This Town

Ain't Got No Heart"

To all the Lincoln Community and the far-reaching friends of The Lincoln Store,

It is both bittersweet and exciting to share the news of the sale of The Lincoln General Store. As you know, this store is about much much more than its ownership. In so many ways, it is the heart of our amazing town. It has been the honor of my life to own and run this store and to serve this community I love so much. I will miss the early morning coffees with so many of you and seeing the kids when they get off the bus each afternoon, but it’s the right time for me to step down and focus on my health and family.

Not to worry though, The Lincoln General Store is in good hands. Jen Smith who you all know well will take over and serve as General Manager. She’ll be responsible for every aspect of its operations. The impressive staff that you all know and love will stay together and continue keeping things humming. Kyle and Katie Clark will purchase the store.

I want to thank Jen, the whole entire team as well as the Clarks for stepping up. It is such a relief to know that the store will be loved and cared for. I hope you will join me in continuing to support the store as much as you can. I guess all that’s left to say is THANK YOU to all of you. I love this town so much and it has been a gift to share life and all its ups and downs together. - Vaneasa and Dan

Community Stores: Lifelines

As we have seen over the years, our small rural stores are the pulse & the thread of the community in which they reside. Think of all the hard work done in reclaiming old stores in Elmore & Calais. Or the rave results at the two Genny stores in Craftsbury & Albany, the Pratt’s in Bridport, & the Wood Meadow Market in Enosburg. The list goes on, & on & on.

Veneasa said, it is the "honor of her life" to serve the community as it truly is more than food (or more than food & a post office!). This is a tough business to make money, the competition is tough, balancing the tasks & money are ever present. But so too are the joys of being the center of a town that loves what you do. We have them across the state, in every valley & as in Lincoln, up the river road into the mountains.

Rural stores are often hard to add to

a distributor’s route due to the remote nature or the "off the beaten

path" for efficiency. That however, does not preclude new owners exploring potential new suppliers.

It is not only rural stores that are tied to their communities. Our urban neighborhood stores offer similar connections. Seven Days has a great article to check out about the uniqueness of the urban corner store.

In Burlington each neighborhood store has its own angle. At Bessery's Butcher Shoppe they retooled focusing on meat & a delicatessen. While Momo's Market, one of the 15 corner stores is supporting its neighborhood with a range of VT products & some fun for its daily customers.

"Momo's Market owner Erin Malone claims to host "the only Valentine's Day card-making party in the history of the world at a convenience store."

Hot food is back being served at CVM

Community Support (Always)

Cambridge Village Market was hard hit in July's flood & just this week narrowly dodged another

significant episode. With the wind storm an accident took place when cars tangled with wires & a power outage occurred at the "Wrong Way Bridge". Fortunately the coolers & freezers held their temperatures as power was restored before claims would have had to be made. They narrowly averted late December flooding too!

"We hope everyone is safe and warm & a HUGE thank you to all of the lineman, first responders, road crew and everyone who has been working nonstop. We appreciate you all so very much!" CVM

Delis & Prepared Foods

Prepared foods departments do a brisk business & add much to our community stores. Many of our local food manufacturers produce pack sizes to accommodate this sector. Each business create sizes that add cost efficiencies to their line, while also offering lower "plate costs' for prepped foods. Increase your local foods by incorporating VT food service into your menu planning!

These VSFA members showcase the range of food service pack sizes & a sneak peak into some of their distribution options.

Joe's Kitchen maker of fabulous soups ships through Upper Valley Produce, Farm Connex, Food Connects & DSD via their own truck route.

Mountain Cider offers spiced cider concentrate via Upper Valley Produce, Sysco Albany, & UPS Ground.

Nutty Life can help make a custom blend for your business! Shipped nationally via 3rd party trucking services.

Dosa Kitchen provides Dosa batter in 1 gallon containers shipped through Food Connects & in Massachusetts shipping through Marty's Local

Tipsy Pickle is working on 5 gallon packs for restaurants & food service. Stay tuned for details on distribution!

Defining Local Products

In prior Small Bites, you have seen the clues about what is "local" to Vermont per ACT 129. Here is an example of a complying business:

The majority of ingredients (meaning more than 50 percent of all product ingredients by volume, excluding water) are raw agricultural products that are “local” to Vermont; AND

The product was either processed in Vermont OR the food manufacturer is headquartered in Vermont (or both are true).

1. Whenever it is not a raw agricultural product, but processed foods also include raw agricultural products that have been subject to processing, such as canning, cooking, dehydrating, milling, or the addition of other ingredients.
2. Processed foods include dairy, meat, maple products, beverages, fruit, or vegetables that have been subject to processing, baked, or modified into a value-added or unique food product.

Joe's Kitchen passes the VT Local Food Test! And they have a large multiplier footprint!

Product Mix

Every store is looking to match its product mix with its customer base. Which of course is an ever-changing mix of variables that include population changes, food & product category trends, new products, pricing, changes to distributor product mix, & distributor consolidation.

Stores can use data to gauge current

sales & use it to analyze fast movers, high margin product gains & revealing the ubiquitous "dog items of the universe". Defined as a product that under performs taking up shelf space but doesn't return strong sales or margin. It might be because one person in the community likes it, but it just takes up space on the shelf.

Stores rely on inventory turnover . Some stores consider customer habits by purchasing special orders &/or holding a small stash of slow sellers in the back. These special arrangements support their customers but do not take up excess shelf space allowing for better product turnover. 

2023 was great year at Buffalo Mountain Coop's community market. They tightened up their local food attributes in their POS system & began running & analyzing product reports.

25 % of their mix is VT Local! The coop sent a team to the November Small, Yet Mighty workshop hosted by the Farm to Plate Grocers Project. One of the takeaways was using the power of data to tighten up sales AND explore product, category, & department margins. The s data can be used in further analysis helping inventory turns & product mix assessment, as well as in marketing. Here's for more in '24!

Inventory Turnover Formula

COGS: $100,000

Starting Inventory : $35,000

Ending Inventory : $15,000

The Average Inventory Value would be equal to : (35,000 + 15,000) / 2 = $25,000

The Inventory Turnover Ratio would be equal to : $100,000 / $25,000 = 4

Associated Buyers Sells to Rainforest Distribution

Rainforest Distribution in New Jersey announced on January 2, 2024 a definitive agreement to acquire the assets of Associated Buyers.

Associated Buyers became a mainstay in the New England regional natural food economy for over 40 years, offering bulk goods, global flavors, small batch & hand-crafted specialty foods. Under the leadership of Karta Owen, it helped build the regional food economy supporting & nurturing emerging brands & offering sales & service to stores.

“Our goals have always been to be honorable, respectful, kind, and equitable with our industry partners, and we have shared in the successes and challenges of our valued suppliers and customers over the years. We are proud to have been the jumping off point for so many unique producers and brands, and to have seen communities grow up around the stores and restaurants we supplied. -Karta Owens, President of AB

At Rainforest, there will be a shifting of products & vendors. Vendors will be deciding if they can scale to what is expected to increased capacity to the wider Northeast & mid-Atlantic region. There will be more competition for our brands as Rainforest has an existing vibrant product line potentially in competition with our regional brands. Where our Vermont & New England brands land in this consolidation will be determined later in ’24.

In the changing distribution environment, it becomes harder & harder for "small" distributors to maintain viability. Pressure from large national retail & distribution chains, online options, & changing technology are just a few factors leading to businesses selling.

“Rainforest welcomes the customers, suppliers, & team members of Associated Buyers to the Rainforest Team.”

Rainforest will begin directly servicing the existing customers of Associated Buyers on February 28, 2024.

Read the Press Release here.

In 2022 INFRA & Rainforest Distribution entered into a National Pricing Agreement to increase access to innovative local & regional products for INFRA Member stores in the Northeast & Mid-Atlantic regions. Rainforest also expanded distribution & infrastructure capacity with the $24.3 million dollar purchase of a Bayonne, NJ facility to stage for & meet its expansion goals.

What's on the Horizon?

Private Equity That's What

Do you ever wonder how decisions are made & if in the business of "acquisitions" what the outcome will be? When the goal is to make money by "investing ' in a company how does it really work for workers, the environment, climate impact, cows? When you think about the "product mix" of private equity firms, what really happens? Are we to think this is all good? In the age of climate disruption can the status quo at Platinum Equity sustain? *



Our current portfolio of ~50 companies operate in a

diverse range of industry sectors, generates $89B+ in aggregate revenue & employs ~200,000 people around the world. *

Horizon Dairy, owned by Danone of France is being sold to Platinum for an undisclosed amount. As the largest certified organic dairy brand in the world, it has become a part of a "portfolio" to build capital. You may remember in 2021 Danone terminated contracts with Vermont family farms along with other

organic dairies in the northeast while focusing on "sustainable milk".

As a product in a portfolio, size matters. In essence, scale matters. CAFO "win" out over smaller family farm operations as global profit centers. Cows lose, competition lose, family brands lose. Companies as commodities "win" (whatever that means as we face a world needing to rethink capitalism, fossil fuel reliance, & consolidation through investment structures.)

More on Distribution

Vermont Roots based in Rutland is a woman owned, local business helping grow specialty food brands. She draws much of her inventory from VT producers but is always on the lookout for regional brands.

The VT Roots team provides a very

niche service in this day & age: stocking shelves at stores to help

maintain inventory & merchandising the product for optimal sales. Large

stores including Hannaford & even small farmstands are an important client base for our food companies to access accounts.

The VT Roots trucks crisscross

Vermont with local products while also bringing in regional brands looking to expand to Vermont accounts. A new item with a regional footprint & based in the soils of Maine is Fox Family Chips.  The potatoes are grown at Double G Farms, a business partner of Fox Family. As the chip company expands beyond Maine, they are meeting the pressures of expansion & capacity building.

There are currently five flavors in several pack sizes. Vermonters can have these "real potato flavor" chips as a customer of Vermont Roots. Perfect for grab & go food service operations, farmstands, & ag tourism sites as well as stores.

Find the Helpers

In Franklin County, Wood Meadow Market on Main Street in Enosburg is one of the helpers in the local food scene. Over their many years Pat & Kirsten have helped buying clubs, acted as a 'cross-dock' for local vendors & worked with customers, farmers, & distributors to help with the 'last mile' in this rural part of Vermont. YAY for your ethos of becoming helpers in your community at many levels!

Farmers as Retailer Series Returns!

An online series addressing many retail related topics starts in February!

Farmers with existing operations and

those new to selling through your farmstand/farm store are encouraged to learn AND share your insights. From permits to POS & cash-out, merchandising to buying from distributors there is much to cover.

The series will be Wednesday

mornings beginning February 7th via Zoom. Sign up is coming up soon. Want to know about details & registration? email me . Info will be shared through VVBGA, NOFA, & Farm to Plate.

Farmer as Retail (FaR) Listserv

I set up a listserv with past FaR attendees. I wonder. should we build this out as a wider resource for the farming community? LMK if you are interested in farmer2farmer retail focused dialogue that covers

operations, product mix, pricing & customer engagement. margins, & distribution options such as through ACORN Food Hub.

Farmers Take Note

2024 is the year of micro distribution! Vermont Farmers Food Center serving Rutland & the Upper Mettawee Valley is gearing up to service more farmstands. As you plan your retail market in this slow period, more VT products across categories are available through emerging food hubs. Collaboration between VFFC & ACORN expands the possibilities.

Sandy Bottom Farm in Isle La Motte was vandalized on January 2. Significant damage was done to their greenhouses as well as their sense of safety. The local community rallied in support of them flying their Pride Flag. A gofundme was created with support from our diverse population & any money raised above costs will be donated to outrightVT

"Thousands of dollars of damage because someone didn't like that we had a flag flying? What a coward.+ SBF

Good News for the Environment

From Progressive Grocer:

Discount grocer ALDI has a goal to be most sustainable grocers in the country. They met their goal to remove all plastic shopping bags from its more than 2,300 stores by the end of 2023. It is the first major U.S. retailer to eliminate plastic shopping bags. Removing plastic shopping bags will prevent nearly 4,400 tons, or nearly 9 million pounds of plastic, from going into circulation each year. 

ALDI also unveiled a new goal to transition to natural refrigerants across all U.S. stores before the end of 2035. As ALDI continues to grow, natural refrigerants will keep its products fresh while supporting a healthier planet. This new goal builds on the grocer’s use of environmentally friendly refrigerants in more than 600 stores, helping ALDI save nearly 60% of potential carbon emissions each year. 

With at least 66 stores in the six New England states, this is good news.

A few more things for 2024

Vermont Vegetable & Berry Growers Annual Meeting Tuesday, January 30, 2024

New location: Double Tree Conference Center in South Burlington

February 17 & 18 NOFA Winter Conference

Small Bites comes to you via grants & is created for farmers, food manufacturers, distributors, & grocers to increase VT food sales. We support the New England State Food System Planners Partnership effort to strengthen the regional food economy

Unless otherwise noted, photo credits are from company social media, websites or Annie Harlow

Line workers courtesy of VT Digger

Thanks to everyone who shared this month including Lesser Distribution, Seth MacCausland of Pumpkin Village Foods & Kim Crosby of VT Roots & VSFA members!

Contact: Annie Harlow

smallbites802@gmail.com

All info is subject to change; thank you to all who contributed to this issue

With support from the Canaday Family Charitable Trust