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Local Food Market Demand Ulupono Presentation Briefing Dec 2011 Report
Local Food Market Demand Ulupono Presentation Briefing Dec 2011 Report
December 2011
Table of Contents
• Goals of the Ulupono Initiative …………………………….. Page 3
• Why conduct a local food market demand study? .. Page 4
• Key study findings ………………………….…………………….. Pages 5 – 6
• Methodology and sample …………………………………….. Page 7
• Local food attitudes ……………………………………………… Pages 8 – 16
• Retailer analysis ……………….………………………………….. Pages 17 – 25
• Why don’t people buy local? …..…….…………………….. Pages 26 – 27
• What would encourage more local purchases? ….… Pages 28 – 29
• Consumer preference survey information ………….… Pages 30 – 34
• Detailed product survey results: …………………………… Pages 35 – 121
– Milk …………………………………………………………….. Pages 35 – 50
– Eggs ……………………………………………………………. Pages 51 – 66
– Bananas ……………………………………………………… Pages 67 – 78
– Tomatoes ……………………………………………………. Pages 79 – 94
– Romaine lettuce …………………………………………. Pages 95 – 106
– Rib-eye steak ………………………………………………. Pages 107 – 121
• Importance of Hawai‘i benefits ……………………………. Pages 122 – 125
• Key findings: ………………………………………………………… Pages 126 – 169
– Informed consumer ……………………………………. Pages 127 – 134
– What people will pay for local food? …………… Pages 135 – 150
– Maximizing revenue ……………………………………. Pages 151 – 153
– Impact on Hawai‘i economy ……………………….. Pages 154 – 156
– Increase availability – local is too hard to find Pages 157 – 161
– Increase branding ……………………………………….. Pages 162 – 165
– Strengthen the Hawai‘i brand ……………………… Pages 166 – 167
– Everyone can play a role ……………………………… Pages 168 – 169
• Local food stakeholder network …..………………………. Page 170
Goals of Ulupono Initiative
3
Why conduct a local food market
demand study?
• When it comes to buying local food, what are consumers thinking and why?
• We found no publicly available quantitative analysis, so we commissioned a
detailed consumer preference survey to drill down through consumer needs and
wants on six local foods
• We hope these findings can serve as a resource for local businesses, officials,
and consumers to help determine the best opportunities for producing more
local food
4
Key study findings
• Survey showed: Consumers across O‘ahu strongly believe local food is important,
they don’t think there’s enough available; and they are willing to pay more for
local food.
• Price is important but not the only thing. Freshness, trust in local businesses,
and convenience in buying are also important.
• Being locally grown was most often the second or third most important quality
that consumers mentioned.
5
An informed buyer is willing to pay more for local
Local Product Uninformed Buyer Informed Buyer Price Premium for
Price Price “Hawai‘i-grown”
over Mainland Avg.
Rib Eye Steak (per Never Reach Parity +$2.13 >$2.13 per pound
pound)
Milk (per quart) -$0.50 +$1.25 $1.75 per quart
• Nearly 1,200 respondents took the online survey from March 14, 2011 to May 31, 2011, a
sample size comparable to a United States presidential poll
• Survey participant requirements: primary shopper in the household, an adult resident of O‘ahu
for at least six months, and not employed by a market research company, advertising agency, or
a public relations company
14% 13%
3% 6%
0% 0% 0% 1% 2%
1 2 3 4 5 6 7 8 9 10
RATING
8
Sample Size: 1,196
Strong support for local food in every region of O‘ahu
REGION
Greater
Central / North Windward
Honolulu (Salt Leeward (‘Ewa Wai‘anae /
Shore (Mililani (Ka‘a‘awa to
Lake to Hawai‘i Beach to ‘Aiea) Greater Kapolei
to Hau‘ula) Waimanalo)
Kai)
Extremely Important
72% 72% 76% 79% 72%
(9 – 10)
Important
26% 25% 20% 18% 23%
(6 – 8)
Not Important
2% 3% 4% 3% 5%
(1 – 5)
9
= Statistically Significant Sample Size: 1,196
Strong support regardless of income and education
Q: If 10 is extremely HOUSEHOLD INCOME
important and 1 is not <$35K $35-$50K $50-$75K $75K+
important at all, how Extremely
important is it that Important 81% 79% 73% 73%
Hawai‘i grow its own (9 – 10)
local foods? Important
17% 18% 25% 24%
(6 – 8)
Not Important
2% 3% 2% 3%
(1 – 5)
Average 9.3 9.2 9.2 9.1
EDUCATION
Some College /
Up to High School College / Post Grad
Training
Extremely
Important 77% 78% 70%
(9 – 10)
Important
19% 19% 27%
(6 – 8)
Not Important
4% 3% 3%
(1 – 5)
Average 9.1 9.2 9.2
10
= Statistically Significant Sample Size: 1,196
Strong support regardless of ethnicity and age
Q: If 10 is extremely ETHNICITY
important and 1 is not Caucasian Japanese Hawaiian Filipino Other
important at all, how Extremely
important is it that Important 70% 72% 83% 74% 74%
Hawai‘i grow its own (9 – 10)
Important
local foods? Other 25% 25% 16% 23% 24%
(6 – 8)
ethnicities include Not Important
5% 3% 1% 3% 2%
Chinese, Korean, (1 – 5)
Mixed, and Other Average 8.9 9.1 9.5 9.1 9.1
YEARS OF AGE
11
= Statistically Significant Sample Size: 1,196
4 of 5 Hawai‘i residents believe there is not enough local food
Too little
81%
12
Sample Size: 1,196
West O‘ahu residents more satisfied with local food options
REGION
Greater
Wai‘anae / Windward
Honolulu (Salt Central / Leeward (‘Ewa
Greater (Ka‘a‘awa to
Lake to North Shore Beach to ‘Aiea)
Kapolei Waimanalo)
Hawai‘i Kai)
Extremely
Satisfied 17% 20% 25% 27% 16%
(9 – 10)
Somewhat
Satisfied 55% 54% 50% 40% 49%
(6 – 8)
Not Satisfied
28% 26% 25% 33% 35%
(1 – 5)
13
= Statistically Significant Sample Size: 1,196
Higher income/education are less satisfied with food choices
Q: In general, on a scale of HOUSEHOLD INCOME
1 to 10 with 10 being <$35K $35-$50K $50-$75K $75K+
extremely satisfied and 1 Extremely
being not satisfied at all, Satisfied 33% 18% 22% 15%
how satisfied are you with (9 – 10)
the availability of foods Somewhat
Satisfied 43% 51% 47% 56%
grown in Hawai‘i? (6 – 8)
Not Satisfied
24% 31% 31% 29%
(1 – 5)
Average 7.2 6.4 6.6 6.4
EDUCATION
Some College /
Up to High School College / Post Grad
Training
Extremely
Satisfied 31% 26% 14%
(9 – 10)
Somewhat
Satisfied 39% 48% 56%
(6 – 8)
Not Satisfied
30% 26% 30%
(1 – 5)
Average 6.9 6.9 6.4
14
= Statistically Significant Sample Size: 1,196
Dissatisfaction crosses age and ethnic groups
Q: In general, on a scale ETHNICITY
of 1 to 10 with 10 being
extremely satisfied and 1 Caucasian Japanese Hawaiian Filipino Other
being not satisfied at all, Extremely
how satisfied are you Satisfied (9 – 14% 17% 32% 35% 19%
10)
with the availability of
Somewhat
foods grown in Hawai‘i? 49% 58% 49% 46% 51%
Satisfied (6 – 8)
Other ethnicities include Not Satisfied
37% 25% 19% 19% 30%
Chinese, Korean, Mixed, (1 – 5)
and Other Average 6.1 6.7 7.3 7.5 6.6
YEARS OF AGE
16
= Statistically Significant
Where do people buy their food?
• Shoppers prefer supermarkets due to convenience, availability of desired brands, and “one-stop
shopping”
• Big-box stores are second in popularity for food shoppers
• Farmers markets are a significant source for produce purchases
Big-Box Store
100%
Supermarket Chain (Safeway, Times, Foodland, etc.)
Farmers Market
80% Never Buy
40% 35%
32% 31%
24% 23% 23%
20% 15% 16%
12%
6% 8% 8% 6%
3% 5%
0% 2% 0%
0%
BEEF EGGS MILK BANANAS TOMATOES ROMAINE
LETTUCE
Q: Do you usually buy the following food products [INSERT ITEM] = Statistically Significant
Safeway 21%
Costco 17%
Times 16%
Military Commissary 9%
Tamura's 5%
Don Quijote 5%
Sam's Club 3%
Down to Earth 1%
Whole Foods 1%
Q: Thinking about grocery shopping, where do you most often buy your groceries?
18
Sample Size: 1,183
People prefer stores near where they live
REGION
Greater
Wai‘anae / Windward
Honolulu (Salt Central / Leeward (‘Ewa
Greater (Ka‘a‘awa to
Lake to North Shore Beach to ‘Aiea)
Kapolei Waimanalo)
Hawai‘i Kai)
Foodland 20% 28% 24% 12% 24%
19
= Statistically Significant Sample Size: 1,196
Foodland / Costco target different customers from Safeway
Q: Thinking about grocery shopping, where do you most often buy your groceries?
HOUSEHOLD INCOME
Tamura's 10% 4% 5% 2%
EDUCATION
Some College / College / Post
Up to High School
Training Grad
Foodland 25% 25% 19%
Tamura's 11% 5% 3%
20
= Statistically Significant
Sample Size: 1,196
Preference: native Hawaiians Foodland; Caucasians Safeway
Q: Thinking about
ETHNICITY
grocery shopping,
where do you most Caucasian Japanese Hawaiian Filipino Other
often buy your Foodland 16% 21% 32% 19% 23%
groceries?
Safeway 33% 18% 12% 15% 18%
Tamura's 2% 3% 13% 9% 4%
YEARS OF AGE
Tamura's 7% 5% 4%
21
= Statistically Significant Sample Size: 1,196
Stores with local products have customers who value local
Q: If 10 is extremely important and 1 is not important at all, how important is it that
Hawai‘i grow its own local foods? AND Thinking about grocery shopping, where do you
most often buy your groceries?
100%
Important Not So Important Unimportant
89%
80% 78%
74% 74%
71%
69%
60%
40%
27%
23% 23% 23%
21%
20%
11%
4% 5%
3% 3%
1% 0%
0%
Total Foodland Safeway Costco Times Tamura's
Foodland and Tamura’s are locally owned and have offered a larger share of local foods 22
= Statistically Significant Sample Size: 1,196
Stores with local products have customers who value local
Q: If 10 is extremely important and 1 is not important at all, how important is it that
Hawai‘i grow its own local foods? AND Thinking about grocery shopping, where do you
most often buy your groceries?
Important Not So Important Unimportant
80%
74% 74% 75%
71%
67%
60%
40%
27% 27%
24% 25%
23%
20%
6%
3% 2% 3%
0%
0%
Total Military Don Quijote Sam's Club Whole Foods
Commissary = Statistically Significant
23
Sample Size: 1,196
Stores not emphasizing local might be losing sales
Q: Is general, how satisfied are you with the availability of foods grown locally in Hawai‘i?
AND Thinking about grocery shopping, where do you most often buy your groceries?
Satisfied (9 - 10 ratings) Dissatisfied (1 - 5 ratings)
40% 38%
37% 37%
29%
27%
25%
21% 21%
20%
20% 19%
16%
13%
0%
Total Foodland Safeway Costco Times Tamura's
Foodland and Tamura’s are locally owned and have offered a larger share of local foods 24
= Statistically Significant Sample Size: 1,196
Stores not emphasizing local might be losing sales
Q: Is general, how satisfied are you with the availability of foods grown locally in Hawai‘i?
AND Thinking about grocery shopping, where do you most often buy your groceries?
Satisfied (9 - 10 ratings) Dissatisfied (1 - 5 ratings)
60%
50%
40%
31%
29%
25%
23%
20% 21% 21%
20%
11%
0%
0%
Total Military Don Quijote Sam's Club Whole Foods
Commissary Whole Foods Sample Size: 12
25
= Statistically Significant Sample Size: 1,196
Reasons vary for consumers who do not buy local
Q: Why don’t you buy these food products in Hawai‘i?
120%
100%
4%
8% 15% 8%
13%
8%
80% 26% 33%
30% 20% 11%
Other
24%
% of Reason
9% No Interest
60% 13% 27%
14% Prefer Non-Hawai‘i
Unaware
22% 8%
32% Availability
14%
40% Cost
20% 25%
55%
20%
37% 35%
30%
25%
21%
0%
Beef Milk Eggs Bananas Romaine Lettuce Tomatoes
*In milk, some Food Product *In romaine lettuce,
were coded for remaining chose don’t know, 26
multiple responses refused, and none.
Sample Size: 1,196
Why don’t you buy these food products grown in Hawai‘i?
• “It is not readily available for me at Safeway or Costco”
• “Too expensive”
• “I buy Costco”
• “Hard to find”
• “Cost, but am looking for a source just to keep local production going in the future”
• “Wouldn’t know what beef is grown in Hawai‘i. Thought everything in the meat department at
this store is Mainland.”
• “I purchase my eggs mainly from Costco and they carry Mainland eggs”
52%
50% 49%
47%
46%
40%
% of Those Surveyed
Lower Cost
30% Quality
27%
Availability
24% 24% 23% Marketing/Brands
22% 22%
21% 21%
20% 20% 18% Other
20%
15%
12%
8%
10%
7%
6%
0%
Beef Dairy Vegetables Fruit
Food Product
28
*Those surveyed could put more than one reason Sample Size: 1,196
What if anything would encourage you to buy more locally grown
food products for your own consumption?
• “Variety, quality, price, consistency (of vegetables and fruits)”
• “Make it available in all supermarkets and big wholesale stores like Costco”
• “I would buy more if it was available at the supermarket for convenience-and not too much
more expensive than the ones shipped from the Mainland”
• “Better labeling so I know it is local and which farm it come from. Sometimes I can’t tell”
• “Little or no pesticides. Fresh, clean and of course, price needs to be right (produce).”
• Detailed findings can help determine best opportunities for increasing local food
• Six products (milk, eggs, bananas, tomato, lettuce, beef) were surveyed in depth.
Of the 1,200 survey takers, each respondent was surveyed about three products.
Then 600 were polled per product. Each were asked to make 10 product decisions
per product. This resulted in 6,000 data points per product.
30
Simulate the Consumer Preference Survey
Yourself…
www.OmniTrakgroup.com/solutions/
highlights.html#ulupono
31
Consumer preference survey example: eggs
32
Consumer preference survey example: romaine lettuce
33
Consumer preference survey example: beef
34
MILK
Consumer Preference Survey Results
35
Milk: purchase size
Quart Gallon
31% 62%
Half Gallon
7%
36
Sample Size: 1,196
Many consumers buy milk each week
0 0.5
Less than 1 2%
NUMBER OF TIMES PER MONTH
2 26%
Q: In an average month,
3 14%
about how many times do
you buy milk?
4 26%
37
Sample Size: 1,106
Consumers mainly buy milk at supermarkets
Q: Do you usually buy Milk at a [INSERT STORE]?
Supermarket
(Safeway, Times,
Foodland, etc.)
Big-Box Store
61%
31%
Never Buy
8%
Farmers Market
0%
38
Sample Size: 1,195
Many residents believe they are drinking local milk
Q: For milk, does what you buy most often come from the Mainland, Hawai‘i or a foreign
country? AND For milk, have you ever purchased that product grown in Hawai‘i?
Foreign
Country
0%
Hawai‘i
44%
NO
YES 29%
71%
Mainland
51%
Don't
Know
5%
Sample Size: 1,106 Sample Size: 615
*Hawai‘i State sales data indicate
less than 10% of milk is locally grown 39
Most residents believe they are buying local milk
Q: In one month, about what percentage of milk do you buy that are grown in Hawai’i?
Mid-Percentage
(36-70%)
23%
Low-Percentage
(1-35%)
24%
High-Percentage
(71-100%)
53%
40
Sample Size: 699
Income and education do not affect local milk purchases
Q: In one month, about what percentage of milk do you buy that are grown in Hawai‘i?
41
= Statistically Significant Sample Size: 699
Ethnicity, age, & gender don’t affect local milk purchases
Q: In one month, about what percentage of milk do you buy that are grown in Hawai’i?
% of Those Who Buy Locally Grown
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-35%) (36-70%) (71-100%)
Sample Size 1,196 699 169 159 371
ETHNICITY
Caucasian 27% 22% 20% 21% 23%
Japanese 22% 23% 20% 20% 26%
Hawaiian 9% 12% 10% 14% 12%
Filipino 8% 10% 10% 14% 8%
Other 34% 34% 40% 31% 31%
AGE
18-34 13% 16% 15% 16% 17%
35-54 41% 46% 44% 48% 46%
55+ 46% 38% 41% 35% 37%
Average 51.8 49.2 49.6 48.3 49.5
SEX
Male 27% 25% 29% 22% 24%
Female 73% 75% 71% 78% 76%
42
= Statistically Significant Sample Size: 699
Neighborhood does not affect local milk purchases
Q: In one month, about what percentage of milk do you buy that are grown in Hawai’i?
Buyer by Frequency
Low- Mid- High-
Total Sample Buyer Percentage Percentage Percentage
(1-35%) (36-70%) (71-100%)
Sample Size 1,196 699 169 159 371
REGION
Greater Honolulu (Salt Lake to
34% 34% 32% 30% 37%
Hawai‘i Kai)
Central / North Shore (Mililani to
17% 16% 20% 18% 14%
Hau‘ula)
Leeward (‘Ewa Beach to ‘Aiea) 20% 20% 20% 19% 21%
43
= Statistically Significant Sample Size: 699
VIVA and Lucerne are the best-known brands
Q: Please check the brands of milk that you’ve seen or heard of, if any?
0% 100%
Viva 87%
Lucerne 84%
Safeway’s Brand
Brand Key
Hawai'i's Fresh 41% Mainland company
*No 1% milk Hawai‘i company
44
Sample Size: 1,196
VIVA and Lucerne are purchased most frequently
Q: Which brand of milk do you purchase most often?
0% 100%
Lucerne 41%
Safeway’s Brand
Viva 40%
Brand Key
Hawai'i's Fresh 19% Mainland company
*No 1% Hawai‘i company
45
Sample Size: 986
VIVA and Lucerne are sampled the most
Q: Please check the brands of milk that you’ve ever purchased, if any?
0% 100%
Viva 64%
Lucerne 61%
Safeway’s Brand
Brand Key
Hawai'i's Fresh 29% Mainland company
*No 1% Hawai‘i company
46
Sample Size: 1,089
Shoppers buy milk brands most commonly found at their
neighborhood supermarkets
Q: Which brand of milk do you purchase most often? By Region
100%
Hawai'i's Fresh Lucerne Viva
80%
• There are more Safeway supermarkets per capita in the Greater Honolulu (Salt Lake
to Hawai‘i Kai) and Windward (Ka‘a‘awa to Waimanalo) regions, demonstrating the
60%
importance of easy access and availability to sales
51% 51%
45% 46%
41% 40% 43%
40% 36% 36% 35%
31% 30%
0%
Total Greater Central / North Leeward Wai‘anae / Windward
Honolulu Shore (‘Ewa Beach to ‘Aiea) Greater Kapolei (Ka‘a‘awa to Waimanalo)
(Salt Lake to Hawai‘i Kai) (Mililani to Hau‘ula)
47
= Statistically Significant Sample Size: 986
Consumers mainly focus on price when buying milk
0 50
Price 43.50
Availability 17.80
Origin 13.50
Taste 7.60
Attributes were determined from focus group results and working with the Ulupono Team
48
Key findings: milk
• Consumers say they buy milk often and they buy a lot of it
• Price is 2.5 times more important than any other factor when buying milk
• Labeling can be confusing. Shoppers may believe they are buying locally grown milk
when they are actually buying imported milk from companies that were once locally
owned.
• Supermarket distribution is most important but big-box stores are also critical
49
Potential opportunities for local milk
Local milk can emphasize:
51
Many consumers buy eggs every other week
Q: In an average month, about how many times do you buy eggs?
1 28%
2 40%
3 12%
4 14%
5 & more 5%
52
Sample Size: 1,163
Consumers mainly buy eggs at supermarkets
Q: Do you usually buy eggs at a [INSERT STORE]?
Supermarket
(Safeway, Times,
Big-Box Store Foodland, etc.)
32% 58%
Never Buy
2%
Farmers Market
8%
53
Sample Size: 1,163
Regional breakdown of egg purchases at farmers markets
Q: Do you usually buy eggs at a…?
Windward
(Ka‘a‘awa to Greater Honolulu
Waimanalo) (Salt Lake to
Wai‘anae / Greater 11% Hawai‘i Kai)
Kapolei 31%
12%
Leeward (‘Ewa
Beach to ‘Aiea)
9%
Central / North
Shore (Mililani to
Hau‘ula)
37%
54
Sample Size: 94
Consumers often buy local eggs
Q: For eggs, does what you buy most often come from the Mainland, Hawai‘i or a foreign
country? AND For eggs, have you ever purchased that product grown in Hawai‘i?
Mainland
33%
YES
86%
Hawai‘i NO
Don't 14%
63% Know
4%
Foreign
Country
0%
55
Most residents believe they buy local eggs
Q: In one month, about what percentage of eggs do you buy that are grown in Hawai’i?
Mid-Percentage
(41-80%)
Low-Percentage 26%
(1-40%)
21%
High-Percentage
(81-100%)
53%
56
Sample Size: 965
Income and education do not affect local egg purchases
Q: In one month, about what percentage of eggs do you buy that are grown in Hawai’i?
57
= Statistically Significant Sample Size: 965
Ethnicity, age, & gender don’t affect local egg purchases
Q: In one month, about what percentage of eggs do you buy that are grown in Hawai’i?
% of Those Who Buy Locally Grown
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-40%) (41-80%) (81-100%)
Sample Size 1,196 965 201 248 516
ETHNICITY
Caucasian 27% 23% 19% 26% 23%
Japanese 22% 23% 24% 18% 25%
Hawaiian 9% 11% 10% 11% 11%
Filipino 8% 9% 9% 10% 8%
Other 34% 34% 38% 35% 32%
AGE
18-34 13% 14% 14% 14% 14%
35-54 41% 43% 39% 47% 44%
55+ 46% 43% 47% 39% 42%
Average 51.8 50.8 51.7 49.8 50.9
SEX
Male 27% 26% 30% 24% 25%
Female 73% 74% 70% 76% 75%
58
= Statistically Significant Sample Size: 965
Neighborhood does not affect local egg purchases
Q: In one month, about what percentage of eggs do you buy that are grown in Hawai’i?
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-40%) (41-80%) (81-100%)
Sample Size 1,196 965 201 248 516
REGION
Greater Honolulu (Salt Lake to
34% 35% 36% 32% 35%
Hawai‘i Kai)
Central / North Shore (Mililani
17% 16% 17% 17% 15%
to Hau‘ula)
Leeward (‘Ewa Beach to ‘Aiea) 20% 20% 20% 16% 22%
59
= Statistically Significant Sample Size: 965
Ka Lei Eggs ranked the best-known brand
Q: Please check the brands of eggs that you’ve seen or heard of, if any?
0% 100%
Ka Lei 88%
Lucerne 66%
Safeway’s Brand
60
Sample Size: 1,196
Ka Lei Eggs are purchased most frequently
Q: Which brand of eggs do you purchase most often?
0% 100%
Ka Lei 57%
Lucerne 22%
Safeway’s Brand
61
Sample Size: 1,067
Ka Lei Eggs are sampled the most
Q: Please check the brands of eggs that you’ve ever purchased, if any?
0% 100%
Ka Lei 78%
Hawaiian
47%
Maid
62
Sample Size: 1,033
Egg farm location influences purchase
Q: Which brand of eggs do you purchase most often? By Region
• Hawaiian Maid is grown in the Wai‘anae region of O‘ahu, which could indicate that if
people see the farms in their neighborhood, they are more likely to buy the product
80%
both due to easier access and desire to support local businesses
62% 62%
59%
60% 57%
50%
43%
40% 34%
30%
21% 22% 23% 22% 24% 24%
20%
16% 17%
20%
14%
0%
Total Wai‘anae / Central / North Windward Greater Leeward
Greater Kapolei Shore (Ka‘a‘awa to Waimanalo) Honolulu (‘Ewa Beach to ‘Aiea)
(Mililani to Hau‘ula) (Salt Lake to Hawai‘i Kai)
63
= Statistically Significant Sample Size: 1,067
Hawai‘i-related egg qualities outweigh price
0 50
Price 31.30
Availability 17.84
Texture 11.04
Attributes were determined from focus group results and working with the Ulupono Team
64
Key findings: eggs
• Price ranks as most important, but other Hawai‘i-related qualities such as place of
origin and chicken-to-shelf time-frame together outweigh price
• Supermarket distribution is most important but big-box stores are also critical
• Ka Lei Eggs has strong brand awareness and market penetration, uses simple
consistent messaging as well as wide distribution. Other local brands could learn
from their success.
65
Potential opportunities for local eggs
Local eggs can emphasize:
66
BANANAS
Consumer Preference Survey Results
67
Many consumers buy bananas each week
Q: In an average month, about how many times do you buy bananas?
1 15%
2 22%
3 14%
4 31%
68
Sample Size: 1,154
People buy bananas at supermarkets & farmers markets
Q: Do you usually buy the bananas at a [INSERT STORE]?
Supermarket
(Safeway, Times,
Foodland, etc.)
58%
Big-Box Store
15%
Never Buy
3%
Farmers Market
24%
69
Sample Size: 1,195
Regional breakdown of banana buying at farmers markets
Q: Do you usually buy bananas at a Farmers Market? By Region
Windward
(Ka‘a‘awa to
Waimanalo) Greater Honolulu
20% (Salt Lake to
Hawai‘i Kai)
41%
Wai‘anae / Greater
Kapolei
12%
Leeward (‘Ewa
Central / North
Beach to ‘Aiea)
Shore (Mililani to
12%
Hau‘ula)
15%
70
Sample Size: 291
Consumers often buy local bananas
Q: For bananas, does what you buy most often come from the Mainland, Hawai‘i or a
foreign country? AND For bananas, have you ever purchased that product grown in
Hawai‘i?
Mainland
11% NO
18%
Don't
Know
7%
71
Most residents believe they buy local bananas
Q: In one month, about what percentage of bananas do you buy that are grown in Hawai’i?
Mid-Percentage
(36-75%)
25%
Low-Percentage
(1-35%)
15%
High-Percentage
(76-100%)
60%
72
Sample Size: 1,040
Income & education do not affect local banana purchases
Q: In one month, about what percentage of bananas do you buy that are grown in Hawai’i?
% of Those Who Buy Locally Grown
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-35%) (36-75%) (76-100%)
Sample Size 1,196 1,040 156 258 626
HOUSEHOLD INCOME
<$25K 8% 8% 7% 8% 8%
$25-$50K 23% 22% 20% 21% 22%
$50-$100K 43% 43% 50% 44% 41%
$100K + 27% 27% 23% 27% 29%
EDUCATION
Less than High School 1% 1% 1% - 1%
High School 12% 12% 11% 11% 12%
Business / Trade School 7% 7% 10% 6% 7%
Some College 25% 25% 25% 25% 25%
College Grad / Post Grad 56% 55% 54% 57% 55%
73
= Statistically Significant Sample Size: 1,040
Ethnicity, age, & gender don’t affect banana purchases
Q: In one month, about what percentage of bananas do you buy that are grown in Hawai’i?
% of Those Who Buy Locally Grown
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-35%) (36-75%) (76-100%)
Sample Size 1,196 1,040 156 258 626
ETHNICITY
Caucasian 27% 25% 25% 25% 26%
Japanese 22% 23% 21% 21% 24%
Hawaiian 9% 10% 9% 11% 10%
Filipino 8% 9% 13% 11% 7%
Other 34% 33% 33% 33% 34%
AGE
18-34 13% 13% 13% 11% 14%
35-54 41% 41% 43% 47% 38%
55+ 46% 46% 44% 42% 48%
Average 51.8 51.7 50.8 51 52.2
SEX
Male 27% 25% 31% 28% 22%
Female 73% 75% 69% 72% 78%
74
= Statistically Significant Sample Size: 1,040
Neighborhood does not affect local banana purchases
Q: In one month, about what percentage of bananas do you buy that are grown in Hawai’i?
Buyer by Frequency
Low- Mid- High-
Total Sample Buyer Percentage Percentage Percentage
(1-35%) (36-75%) (76-100%)
Sample Size 1,196 1,040 156 258 626
REGION
Greater Honolulu (Salt Lake to
34% 35% 31% 37% 35%
Hawai‘i Kai)
Central / North Shore (Mililani to
17% 17% 21% 16% 16%
Hau‘ula)
Leeward (‘Ewa Beach to ‘Aiea) 20% 19% 21% 18% 20%
75
= Statistically Significant Sample Size: 1,040
Price is only one factor when buying bananas
0 50
Price 30.89
Variety 16.75
Availability 14.08
Taste 9.14
Appearance 4.09
Attributes were determined from focus group results and working with the Ulupono Team
76
Key findings: bananas
• Local Hawaiʻi-grown apple bananas have established a distinct and appealing product
identity – residents understand the difference and are willing to pay a premium for
local Hawaiʻi-grown apple bananas over Mainland Williams bananas
• Grown in Hawai‘i is the second most important factor, right behind price
• Supermarket distribution is most important but farmers markets are also critical
77
Potential opportunities for local bananas
Local bananas can emphasize:
79
Many consumers buy tomatoes every other week
Q: In an average month, about how many times do you buy tomatoes?
0% 50%
2 33%
3 15%
4 18%
80
Sample Size: 1,141
Consumers mainly buy tomatoes at supermarkets
Q: Do you usually buy tomatoes at a [INSERT STORE]?
Supermarket
(Safeway, Times,
Foodland, etc.)
60%
Big-Box Store
12%
Never Buy
5%
Farmers Market
23%
81
Sample Size: 1,195
Regional breakdown of tomato buying at farmers markets
Q: Do you usually buy tomatoes at a Farmers Market? By Region
Windward
(Ka‘a‘awa to Greater Honolulu
Waimanalo) (Salt Lake to
20% Hawai‘i Kai)
35%
Wai‘anae / Greater
Kapolei
14% Central / North
Leeward (‘Ewa
Shore (Mililani to
Beach to ‘Aiea)
Hau‘ula)
17%
14%
82
Sample Size: 279
Consumers often buy local tomatoes
Q: For tomatoes, does what you buy most often come from the Mainland, Hawai‘i or a
foreign country? AND For tomatoes, have you ever purchased that product grown in
Hawai‘i?
Mainland
19% YES
81%
NO
19%
Don't
Know
12%
Mid-Percentage
(36-75%)
34%
Low-Percentage
(1-35%)
17%
High-Percentage
(76-100%)
49%
84
Sample Size: 1,025
Income & education do not affect local tomato purchases
Q: In one month, about what percentage of
tomatoes do you buy that are grown in Hawai’i?
85
= Statistically Significant Sample Size: 1,196
Women are more likely to buy local tomatoes
Q: In one month, about what percentage of tomatoes do you buy that are grown in Hawai’i?
% of Those Who Buy Locally Grown
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-35%) (36-75%) (76-100%)
Base 1196 1025 171 349 505
ETHNICITY
Caucasian 27% 26% 25% 23% 29%
Japanese 22% 22% 23% 23% 21%
Hawaiian 9% 10% 10% 10% 11%
Filipino 8% 9% 10% 8% 9%
Other 34% 33% 32% 35% 32%
AGE
18-34 13% 13% 12% 13% 14%
35-54 41% 40% 38% 45% 38%
55+ 46% 47% 50% 43% 48%
Average 51.8 52 52.7 51.4 52.2
SEX
Male 27% 26% 31% 30% 22%
Female 73% 74% 69% 70% 78%
86
= Statistically Significant Sample Size: 1,196
Neighborhood does not affect local tomato purchases
Q: In one month, about what percentage of
tomatoes do you buy that are grown in Hawai’i?
Buyer by Frequency
Low- Mid- High-
Total
Buyer Percentage Percentage Percentage
Sample
(1-35%) (36-75%) (76-100%)
Base 1196 1025 171 349 505
REGION
Greater Honolulu (Salt Lake
34% 34% 30% 34% 35%
to Hawai‘i Kai)
Central / North Shore
17% 17% 22% 16% 16%
(Mililani to Hau‘ula)
Leeward (‘Ewa Beach to
20% 20% 16% 20% 21%
‘Aiea)
Wai‘anae / Greater Kapolei 12% 12% 14% 10% 13%
Windward (Ka‘a‘awa to
17% 18% 18% 21% 16%
Waimanalo)
87
= Statistically Significant Sample Size: 1,196
Kamuela tomatoes ranked the best-known brand
Q: Please check the brands of tomatoes that you’ve seen or heard of, if any?
0% 100%
Kamuela 65%
Hamakua
45%
Springs
Brand Key
Sugarland 19%
Mainland company
Hawai‘i company
88
Sample Size: 1,196
Kamuela tomatoes are purchased most frequently
Q: Which brand of tomatoes do you purchase most often?
0% 100%
Kamuela 59%
Hamakua
32%
Springs
Brand Key
Sugarland 9% Mainland company
Hawai‘i company
89
Sample Size: 829
Kamuela tomatoes are sampled the most
Q: Please check the brands of tomatoes that you’ve ever purchased, if any?
0% 100%
Kamuela 72%
Hamakua
47%
Springs
Brand Key
Sugarland 17% Mainland company
Hawai‘i company
90
Sample Size: 903
Tomato brand preference consistent across neighborhoods
Q: Which brand of tomatoes do you purchase most often? By Region
80%
63% 59%
59% 59%
60% 55% 57%
40%
38% 38%
32%
27% 29%
26%
20% 15%
10% 12%
9% 7% 5%
0%
Total Greater Honolulu Central / North Leeward Wai‘anae / Windward
(Salt Lake to Hawai‘i Kai) Shore (‘Ewa Beach to ‘Aiea) Greater Kapolei (Ka‘a‘awa to Waimanalo)
(Mililani to Hau‘ula)
91
= Statistically Significant Sample Size: 829
Price is only one factor when buying tomatoes
0 50
Price 37.24
Availability 13.39
Texture 9.35
Taste 6.10
Color 3.21
Appearance 3.11
92
Key findings: tomatoes
• Strong name-brand recognition among local farms – Kamuela, Hamakua Springs, and
Sugarland – while Mainland brands are not well-known
• Supermarket distribution is most important but farmers markets are also critical
93
Potential opportunities for local tomatoes
Local tomatoes can emphasize:
• Quality: Local tomatoes usually have a shinier and brighter red outside, thinner
skin, redder and juicier inside, and taste sweeter than Mainland tomatoes
• Freshness: Local tomatoes are picked ripe while Mainland tomatoes are usually
picked before they are ripe due to distance they must travel
94
ROMAINE LETTUCE
Consumer Preference Survey Results
95
Many consumers buy lettuce every other week
Q: In an average month, about how many times do you buy lettuce?
0% 50%
AVERAGE: 2.9
1 23%
2 29%
3 15%
4 19%
96
Sample Size: 1,123
Consumers mainly buy romaine lettuce at supermarkets
Q: Do you usually buy romaine lettuce at a [INSERT STORE]?
Supermarket
(Safeway, Times,
Foodland, etc.)
Big-Box Store 55%
23%
Never Buy
6% Farmers Market
16%
97
Sample Size: 1,195
Regional breakdown of lettuce buying at farmers markets
Q: Do you usually buy romaine lettuce at a Farmers Market? By Region
Windward
(Ka‘a‘awa to
Waimanalo) Greater Honolulu
22% (Salt Lake to
Hawai‘i Kai)
36%
Wai‘anae / Greater
Kapolei
16% Central / North
Leeward (‘Ewa
Shore (Mililani to
Beach to ‘Aiea)
Hau‘ula)
15%
11%
98
Sample Size: 186
Consumers purchase both local and Mainland lettuce
Q: For romaine lettuce, does what you buy most often come from the Mainland, Hawai‘i
or a foreign country? AND For romaine lettuce, have you ever purchased that product
grown in Hawai‘i?
YES
56%
Don't
Know
19%
Mid-Percentage
(36-75%)
Low-Percentage 36%
(1-35%)
23%
High-Percentage
(76-100%)
41%
100
Sample Size: 764
High-income buyers are less likely to purchase local lettuce
Q: In one month, about what percentage of romaine
lettuce do you buy that are grown in Hawai’i?
101
= Statistically Significant Sample Size: 1,196
Women are more likely to buy local lettuce
Q: In one month, % of Those Who Buy Locally Grown
about what Buyer by Frequency
Low- Mid- High-
percentage of Total
Buyer Percentage Percentage Percentage
romaine lettuce Sample
(1-35%) (36-75%) (76-100%)
do you buy that Base 1196 764 176 275 313
are grown in ETHNICITY
Hawai’i? Caucasian 27% 24% 22% 26% 23%
Japanese 22% 22% 24% 20% 22%
Hawaiian 9% 12% 12% 12% 11%
Filipino 8% 9% 11% 10% 7%
Other 34% 34% 32% 32% 36%
AGE
18-34 13% 15% 12% 15% 17%
35-54 41% 43% 42% 45% 41%
55+ 46% 42% 46% 40% 42%
Average 51.8 50.7 51.4 50.6 50.4
SEX
Male 27% 27% 31% 28% 22%
Female 73% 74% 69% 72% 78%
102
= Statistically Significant Sample Size: 1,196
Central O‘ahu less likely to buy local lettuce
Q: In one month, about what percentage of romaine
lettuce do you buy that are grown in Hawai’i?
Buyer by Frequency
Low- Mid- High-
Total Sample Buyer Percentage Percentage Percentage
(1-35%) (36-75%) (76-100%)
Base 1196 764 176 275 313
REGION
Greater Honolulu (Salt Lake to
34% 33% 26% 35% 35%
Hawai‘i Kai)
Central / North Shore (Mililani to
17% 17% 24% 12% 17%
Hau‘ula)
Leeward (‘Ewa Beach to ‘Aiea) 20% 20% 17% 19% 23%
103
= Statistically Significant Sample Size: 1,196
Price is only one factor when buying lettuce
0 50
Price 35.90
Availability 16.76
Taste 11.53
Color 10.60
Attributes were determined from focus group results and working with the Ulupono Team
104
Key findings: lettuce
• Price is almost two times more important than any other factor
• Supermarket distribution is most important but farmers markets are also critical
105
Potential opportunities for local lettuce
Local lettuce can emphasize:
• Quality: Local lettuce is usually a brighter and shinier green plus has a crisp,
sweeter taste than Mainland lettuce
106
RIB-EYE STEAK (BEEF)
Consumer Preference Survey Results
107
Many consumers buy beef every week
Q: In an average month, about how many times do you buy rib-eye steak?
0 0.5
AVERAGE: 3.8
1 15%
2 26%
3 16%
4 20%
108
Sample Size: 1,123
Consumers mainly buy beef at supermarkets
Q: Do you usually buy rib-eye steak at a [INSERT STORE]?
Supermarket
Big-Box Store
(Safeway, Times,
35%
Foodland, etc.)
59%
Never Buy
6%
Farmers Market
0%
109
Sample Size: 1,195
Consumers mostly purchase Mainland beef
Q: For rib-eye steak, does what you buy most often come from the Mainland, Hawai‘i or
a foreign country? AND For rib-eye steak, have you ever purchased that product grown in
Hawai‘i?
Don't
Know
16% YES
52%
Mainland
65%
Low-Percentage
(1-25%)
43%
Mid-Percentage
(26-50%)
31%
High-Percentage
(51-100%)
26%
111
Sample Size: 557
Higher income & education strongly prefer Mainland beef
Q: In one month, about what percentage of rib-eye
steak do you buy that are grown in Hawai’i?
112
= Statistically Significant Sample Size: 1,196
Caucasians, older, & men more likely to buy Mainland beef
113
= Statistically Significant Sample Size: 1,196
Leeward and Windward are more likely to buy local beef
Q: In one month, about what percentage of rib-eye
steak do you buy that are grown in Hawai’i?
Buyer by Frequency
Low- Mid- High-
Total Sample Buyer Percentage Percentage Percentage
(1-25%) (26-50%) (51-100%)
Base 1196 557 239 174 144
REGION
Greater Honolulu (Salt Lake to
34% 34% 37% 27% 36%
Hawai‘i Kai)
Central / North Shore (Mililani to
17% 18% 22% 16% 14%
Hau‘ula)
Leeward (‘Ewa Beach to ‘Aiea) 20% 19% 15% 22% 22%
114
= Statistically Significant Sample Size: 1,196
Times and Costco brands ranked the best-known
Q: Please check the brands of rib-eye steak that you’ve seen or heard of, if any?
0% 100%
Times Sterling
79%
Silver
115
Sample Size: 1,196
Costco Kirkland brand is purchased most frequently
Q: Which brand of rib-eye steak do you purchase most often?
0% 100%
Times Sterling
39%
Silver
Brand Key
Hawai'i Ranchers
13% Mainland company
Beef Hawai‘i company
116
Sample Size: 1,024
Costco and Times beef are sampled the most
Q: Please check the brands of rib-eye steak that you’ve ever purchased, if any?
0% 100%
Times Sterling
65%
Silver
117
Sample Size: 1,089
Shoppers buy beef brands at closest grocery outlets
Q: Which brand of rib-eye steak do you purchase most often? By Region
80%
Costco Kirkland Hawai'i Ranchers Beef Times Sterling Silver
67% There are no Times stores in
the Wai‘anae / Greater
60%
60% Kapolei area, demonstrating
the importance of easy
50% access and availability to
48%
45% sales 44%
42% 42%
40%
40% 38%
29%
20%
20%
13% 14% 13% 14%
11% 12%
0%
Total Greater Central / North Leeward Wai‘anae / Windward
Honolulu Shore Greater
(‘Ewa Beach to ‘Aiea) (Ka‘a‘awa to Waimanalo)
(Salt Lake to Hawai‘i Kai) (Mililani to Hau‘ula)
Kapolei
118
= Statistically Significant Sample Size: 1,024
No hormones and no antibiotics are key selling points
0 50
Price 23.53
Natural 20.36
(No Hormones and No Antibiotics)
Availability 17.01
Texture 16.08
Origin 10.48
Taste 4.21
Attributes were determined from focus group results and working with the Ulupono Team
119
Key findings: beef
• Price ranks as most important, but no hormones and no antibiotics are just as
important to many shoppers
• Majority of beef sold is from the Mainland. Higher-educated, wealthier, older, men,
and Caucasians are more likely demographics to buy Mainland beef
• Costco Kirkland and Times Sterling Silver have the strongest name brands
• Supermarket distribution is most important but big-box stores are also critical
120
Potential opportunities for local beef
Local beef can emphasize:
121
Most important qualities for each product surveyed
100%
3.21
7.60
11.04 10.60
9.35 16.75
90% 20.36
3.11
17.80 11.53
80% 6.10 4.09
17.84
9.14
16.08 13.39
70% 16.76
13.80 Variety
Importance of Product Feature
0%
Beef Egg Milk Tomato Banana Romaine Lettuce
Food Product
122
An “Informed” Consumer Would Know…
• For all products, buyers could identify place of origin: (Mainland / foreign country vs.
Hawai‘i)
Local beef
• Antibiotics and hormones -> no antibiotics and hormones
• Large feedlots -> small ranch
Local milk
• Cow to shelf: 24-30 days (imported) -> 4 days (local)
• Large and controlled cow farm -> small-scale pasture farm
Local eggs
• Chicken to shelf: 2-3 weeks (imported) -> 3-4 days (local)
• Large chicken coops -> small open chicken farms
Local tomatoes
• Picked before ripe -> picked ripe
• Large mechanized farm -> small farm
Variety 16.75 %
Quality Key
Hawai‘i benefit
124
Hawai‘i-based qualities nearly as important as price
50
45
43.50
39.83
40
37.24
35.90
35
30
27.60
25.06 25.21
25
23.53 Price
Hawai‘i
20
14.86
15
10
0
Beef Egg Milk Tomato Banana Romaine Lettuce
Food Product
125
Key Findings
126
Key findings
MEASURABLE
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
127
If prices did not change, but every consumer
knew the “local benefits” of a product…
128
Informed consumer could increase beef market share
Without adjusting price BUT informing customers...
80%
72%
70%
60%
50%
44%
Market Share
43%
40%
Mainland Market Share
Local Market Share
30%
20%
10%
5%
0%
Rib-Eye Steak Rib-Eye Steak with Informed Consumer
Food Product (Uninformed vs. Informed Consumer)
If buyers are informed about local rib-eye steak, then the local
beef industry can increase its market share by 8.84 times.
129
Informed consumer could increase milk market share
Without adjusting price BUT informing customers...
90%
81%
80%
70%
60%
60%
Market Share
50%
20%
10%
4%
0%
Milk Milk with Informed Consumer
Food Product (Uninformed vs. Informed Consumer)
If buyers are informed about local milk, then the local milk
industry can increase its market share by 7.75 times.
130
Informed consumer could increase egg market share
Without adjusting price BUT informing customers...
70%
50%
Market Share
40%
32%
Mainland Market Share
30% Local Market Share
20%
20%
10%
0%
Eggs Eggs with Informed Consumer
Food Product (Uninformed vs. Informed Consumer)
If buyers are informed about local eggs, then the local egg
industry can increase its market share by 2.94 times.
131
Informed consumer could increase tomato market share
Without adjusting price BUT informing customers...
70%
60% 58%
56%
50%
Market Share
40%
36%
33%
Mainland Market Share
30% Local Market Share
20%
10%
0%
Tomatoes Tomatoes with Informed Consumer
Food Product (Uninformed vs. Informed Consumer)
69%
70%
61%
60%
50%
45%
Market Share
41%
40% 37%
Mainland Market Share
20%
10%
4%
0% 0%
0%
Apple Bananas Apple Bananas with Informed Williams Bananas Williams Bananas with Informed
Consumer Consumer
Food Product (Uninformed vs. Informed Consumer)
If buyers are informed about local apple bananas, then If buyers are informed about local Williams bananas, then
the local apple banana industry can increase its market the local Williams banana industry can increase its market
133
share by 1.65 times. share by 11 times.
Informed consumer could increase lettuce market share
Without adjusting price BUT informing customers...
70%
60% 58%
56%
50%
Market Share
40%
36%
33%
Mainland Market Share
30% Local Market Share
20%
10%
0%
Romaine Lettuce Romaine Lettuce with Informed Consumer
Food Product (Uninformed vs. Informed Consumer)
If buyers are informed about local romaine lettuce, then the local
romaine lettuce industry can increase its market share by 1.73 times.
134
Key findings
MEASURABLE
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
135
What people will pay for local food
Uninformed buyer of rib-eye steak
80%
70%
60%
50%
Market Share
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $8.99
136
Premium of Local Product above Mainland = Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of rib-eye steak
70%
If buyers are informed about local beef, then local beef can be priced at
$2.13 more per pound to achieve market share parity with Mainland. If
60%
cheaper than that, the local product will be purchased more than Mainland.
50%
40%
Market Share
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $4.00 $8.99
Premium of Local Product above Mainland
137
= Average Mainland Price (January 2011)
What people will pay for local food
Uninformed buyer of milk – quart
90%
80%
70%
60%
Market Share
50%
If buyers are uninformed about local milk, then
local milk can only achieve market share parity Mainland Market Share
40%
with Mainland if local milk is around $0.50 per Local Market Share
quart cheaper than Mainland.
30%
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $2.39
138
Premium of Local Product above Mainland = Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of milk – quart
80%
60%
50%
Market Share
40%
Mainland Market Share
Local Market Share
30%
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.00 $2.50 $3.00 $3.50 $2.39
Premium of Local Product above Mainland
139
= Average Mainland Price (January 2011)
What people will pay for local food
Uninformed buyer of eggs
70%
60%
50%
If buyers are uninformed about local
eggs, then local eggs can equal market
share parity with Mainland if local eggs
40%
Market Share
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.49
140
Premium of Local Product above Mainland = Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of eggs
100%
60%
Market Share
50%
Mainland Market Share
Local Market Share
40%
30%
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.49
141
Premium of Local Product above Mainland
What people will pay for local food
Uninformed buyer of tomatoes
80%
If buyers are uninformed about local tomatoes, then local
tomatoes can equal market share parity with Mainland if local
70% tomatoes are $0.86 more than Mainland. If cheaper than that,
the local product will be purchased more than Mainland.
60%
50%
Market Share
40%
Mainland Market Share
Local Market Share
30%
20%
10%
0%
$- $0.50 $1.00 $1.50 $2.00 $2.50
Premium of Local Product above Mainland
$1.49
142
= Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of tomatoes
120%
60%
Mainland Market Share
Local Market Share
40%
20%
0%
$- $0.50 $1.00 $1.50 $2.00 $2.50
Premium of Local Product above Mainland
$1.49
143
= Average Mainland Price (January 2011)
What people will pay for local food
Uninformed buyer of apple bananas
70%
If buyers are uninformed about local apple bananas,
then local apple bananas can equal market share
parity with Mainland if local bananas are $0.63 more
60%
per pound than Mainland. If cheaper than that, the
local product will be purchased more than Mainland.
50%
40%
Market Share
20%
10%
0%
$- $0.50 $1.00 $0.59
Premium of Local Product above Mainland
144
= Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of apple bananas
90%
80%
70%
60%
50%
apple bananas can be priced at around $1.75 more per pound
to achieve market share parity with Mainland. If cheaper than Mainland Market Share
40% that, the local product will be purchased more than Mainland.
Local Market Share
30%
20%
10%
0%
$- $0.50 $1.00 $0.59
Premium of Local Product above Mainland
145
= Average Mainland Price (January 2011)
What people will pay for local food
Uninformed buyer of Williams bananas
80%
70%
60%
50%
If buyers are uninformed about local
Market Share
20%
10%
0%
$- $0.50 $1.00
$0.59
Premium of Local Product above Mainland 146
= Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of Williams bananas
70%
If buyers are informed about local Williams bananas,
then local Williams bananas can be priced at around
$0.98 more per pound to achieve market share
60%
parity with Mainland. If cheaper than that, the local
product will be purchased more than Mainland.
50%
40%
Market Share
20%
10%
0%
$- $0.50 $1.00
$0.59
Premium of Local Product above Mainland 147
= Average Mainland Price (January 2011)
What people will pay for local food
Uninformed buyer of romaine lettuce
90%
60%
Market Share
50%
30%
20%
10%
0%
$- $0.50 $1.00 $1.50 $1.49
Premium of Local Product above Mainland
148
= Average Mainland Price (January 2011)
What people will pay for local food
Informed buyer of romaine lettuce
100%
70%
60%
Market Share
50%
Mainland Market Share
Local Market Share
40%
30%
20%
10%
0%
$- $0.50 $1.00 $1.50 $1.49
Premium of Local Product above Mainland
149
= Average Mainland Price (January 2011)
An informed buyer is willing to pay more for local
Local Product Uninformed Buyer Informed Buyer Price Premium for
Price Price “Hawai‘i-grown”
over Mainland Avg.
Rib Eye Steak (per Never Reach Parity +$2.13 >$2.13 per pound
pound)
Milk (per quart) -$0.50 +$1.25 $1.75 per quart
STRATEGIC
151
To increase revenue, educate consumers and adjust prices
• A key business metric is profitability (revenue – costs). But it was beyond the scope
of this study to identify the cost structure of individual businesses. Yet, the study is
able to calculate industry revenue.
• The model that shows the results of the survey responses can take the imported and
local price for each product surveyed and calculate the corresponding expected
market share for imported and local food. By changing whether consumers are able
to identify and are educated about the local benefits, the market share will change
accordingly.
• Since the inputted price multiplied by the corresponding market share can obtain
projected revenue, there can be strategic implications for finding the optimal
revenue.
• In every product case, educating the consumer about the local benefit of a product
brings more revenue to the industry. In some products, the optimal retail price is
higher when consumers are educated.
152
To increase revenue, educate consumers and adjust prices
Revenue Stream (Per 100 People)
$600
Optimal Price
Rib-Eye Apple Williams Romaine
to Maximize Milk Eggs Tomato
Steak Bananas Bananas Lettuce
$516 Revenue
$500 Current Price
(Spring 2011 Market
Prices from Ulupono
$ 10.00 $ 3.20 $ 3.80 $ 2.70 $ 1.60 $ 1.29 $ 2.25
Primary Data Collection)
$400
Optimal Price
(Uninformed $ 9.00 $ 2.40 $ 2.50 $ 1.50 $ 2.00 $ 0.60 $ 1.50
Buyer of Local)
Optimal Price
Revenue
$300
(Informed $ 9.00 $ 2.40 $ 3.00 $ 3.00 $ 2.00 $ 1.50 $ 2.00
Buyer of Local)
$219
Revenue = Price x Implied Market Share
$200 $183
$170
$147 $153 $151
$116 $122
$112 Current Revenue
$102
$100 Optimal Revenue (Uninformed)
$86 $74 $83 $82
$68
$55 Optimal Revenue (Informed)
$23 $22
$10
$0
Rib-Eye Steak Milk Eggs Tomatoes Apple Bananas Williams Romaine Lettuce
Bananas
*Data for current local 153
Local Food Product Williams bananas market
share unavailable
Key findings
MEASURABLE
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
154
Multiplier effect of local food on Hawai‘i’s economy
Local Product Local Market 1% Market Direct, Earnings State Tax Jobs Created
Share Increase Share in Direct Indirect, and (Farmer’s Slice Collections* (per $1M in
Sales* Secondary of Proceeds)* Sales)*
Sales *
Beef (per 5% → 44% $1,128,000 1.90x 0.51x 0.063x 24.20
pound) (+39%, 8.84x)
Williams 4% → 45%
Bananas (per (+41%, 11x) Data for Williams Bananas combined with Apple Bananas
pound)
Williams 4% → 45%
Bananas (per (+41%, 11x) Data for Williams Bananas combined with Apple Bananas
pound)
Romaine 33% → 58% $4,087,525 $8,420,302 $2,207,264 $318,827 108
Lettuce (per (+25%, 1.73x)
pound)
Total: (for the $120,355,335 $229,699,521 $62,022,379 $7,732,590 2,973
6 products) 156 has
Hawai‘i currently
*CTAHR Economic Impacts of Increasing Hawai‘i’s Food Self-Sufficiency (2005), USDA Economic Research Service (2008) 6,500 agriculture jobs
Key findings
MEASURABLE
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
157
Increase availability of local food through greater distribution
• Supermarkets still dominate retail distribution of food in Hawaiʻi, therefore supermarkets play a
critical role in all strategies to increase local food
• The study indicates that consumers strongly want local products and are willing to pay a premium
for them, therefore retailers could have an incentive to source from more local farms and ranches
• Locally owned retailers and those who emphasize their local products have higher satisfaction
ratings from customers who want local
• Foodland has survived significant Mainland competition by branding themselves as local and
consistently providing local products
• Residents often buy produce at farmers markets and items such as beef, milk, and eggs from big-
box stores
158
Food access
on O‘ahu
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
1. Increase availability – local is too hard to find
2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role
162
Strengthen local brands by building customer awareness
• Residents often complained that they cannot distinguish between locally grown food and
Mainland / foreign grown
• Local producers who develop their product brands can charge higher prices with distributors and
retailers
• Clear labeling and strategic displays in supermarkets can be critical. The message can include the
benefits of locally grown food.
• Ka Lei Eggs is a great example of a successful local brand. Their strong brand recognition results
from consistent advertising and wide distribution in supermarkets and restaurants (Zippy’s). Their
eggs are sold in Safeway, Foodland, Times, and Tamura’s. The message is simple: We are local and
our eggs are fresh.
163
Current local marketing techniques
Foodland – Kailua Whole Foods – Kahala Mall
164
Food advertisements are including more local identification
• Retail stores are beginning to identify local items. This may indicate that they understand “local”
has value to shoppers and there might be potential for collaboration. Foodland
165
Times Supermarket Tamura’s
Key findings
MEASURABLE
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
1. Increase availability – local is too hard to find
2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role
166
Hawai‘i brand sells / strengthening the Hawai‘i brand
• Residents place a high value on “grown in Hawai‘i.” In some cases, Hawai‘i-related qualities were
just as important as price. Sellers need to communicate when an item is local.
167
Key findings
MEASURABLE
1. Informed consumer
2. What people will pay for local food
3. Maximizing revenue
4. Impact on Hawai‘i’s Economy
STRATEGIC
1. Increase availability – local is too hard to find
2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role
168
Everyone can play a role
• Farmers and ranchers could increase their profitability by producing more cost-effectively as well
as by adopting marketing and branding strategies
• Distributors and retailers can make it easier for customers to identify local products
• Even with financial and workforce constraints, government may consider developing a state-wide
marketing strategy and enforcing labeling criteria. Partnering with other stakeholders and
organizations could increase impact and reduce costs by pooling resources.
• Consumers highly value local food but need to communicate their wants and needs to
distributors, retailers, restaurants, government, and other key stakeholders to encourage the
market to grow. Consumers have power through their wallets.
• When the many stakeholders communicate and work together, local agriculture can maximize
effectiveness
169
LOCAL FOOD STAKEHOLDER NETWORK