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Local Food Market Demand

Study of O‘ahu Shoppers

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

• Double the production of local food by 2015.


• Obtain 45 percent of energy from clean sources
by 2020, and 70 percent by 2030.
• Reduce, recycle, or divert waste.
• Investing in a more sustainable Hawai‘i

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

Tomatoes (per +$0.86 +$2.55 $1.69 per pound


pound)
Eggs (per dozen) +$0.31 +$1.75 $1.44 per dozen

Apple Bananas (per +$0.63 +$1.75 $1.12 per pound


pound)
Williams Bananas +$0.00 +$0.98 $0.98 per pound
(per pound)
Romaine Lettuce +$0.67 +$1.60 $0.93 per pound
(per pound) 6
Methodology and sample
• Ulupono hired OmniTrak Group Inc. to conduct a detailed consumer preference study, which
began with focus groups who helped refine the online survey

• Six food products were selected as a representative sample of local foods

• 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

• Residents were targeted to accurately reflect regional population distribution

• 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

REGION SAMPLE SIZE SAMPLING ERROR


GREATER HONOLULU 412 +/-6%
CENTRAL / NORTH SHORE 201 +/-7%
WAI‘ANAE COAST / GREATER KAPOLEI 141 +/-8%
LEEWARD 237 +/-6%
WINDWARD 205 +/-7%
TOTAL 1,196 +/-3%
7
3 of 4 residents believe it is very important that Hawai‘i
grow its own local food
Question: If 10 is extremely important and 1 is not
important at all, how important is it that Hawai‘i grow its
own local foods?
61%

14% 13%
3% 6%
0% 0% 0% 1% 2%

1 2 3 4 5 6 7 8 9 10
RATING

Not Important Extremely


At All
Average: 9.1 Important

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)

Average 9.1 9.1 9.1 9.3 9.1

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?

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

18-34 35-54 55+


Extremely
Important 72% 73% 74%
(9 – 10)
Important
25% 23% 23%
(6 – 8)
Not Important
3% 4% 3%
(1 – 5)
Average 9.1 9.2 9.2

11
= Statistically Significant Sample Size: 1,196
4 of 5 Hawai‘i residents believe there is not enough local food

Q: Do you feel that the amount of food grown in Hawai‘i is…?


About right
18%
Too much
1%

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)

Average 6.6 6.6 6.9 6.6 6.4

Q: In general, on a scale of 1 to 10 with 10 being


extremely satisfied and 1 being not satisfied at all,
how satisfied are you with the availability of foods
grown in Hawai‘i?

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

18-34 35-54 55+


Extremely
27% 17% 20%
Satisfied (9 – 10)
Somewhat
45% 54% 51%
Satisfied (6 – 8)
Not Satisfied
28% 29% 29%
(1 – 5)
Average 6.8 6.5 6.7
15
= Statistically Significant Sample Size: 1,196
Education, income, and region cross-sections

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

59% 61% 60%


60%
58% 58%
55%

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

for cooking at a [INSERT STORE]? 17


Sample Size: 1,195
Food retail preferences
Foodland 22%

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%

Safeway 29% 11% 8% 16% 37%

Costco 16% 24% 12% 30% 9%

Times 19% 11% 23% 2% 15%

Tamura's 0% 10% 0% 23% 1%

Q: Thinking about grocery shopping, where


do you most often buy your groceries?

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

<$35K $35-$50K $50-$75K $75K+

Foodland 31% 22% 23% 18%

Safeway 18% 19% 21% 24%

Costco 14% 17% 16% 20%

Times 14% 19% 17% 14%

Tamura's 10% 4% 5% 2%

EDUCATION
Some College / College / Post
Up to High School
Training Grad
Foodland 25% 25% 19%

Safeway 15% 22% 23%

Costco 23% 19% 16%

Times 12% 14% 17%

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%

Costco 20% 12% 19% 19% 19%

Times 8% 26% 13% 16% 16%

Tamura's 2% 3% 13% 9% 4%

YEARS OF AGE

18-34 35-54 55+

Foodland 23% 24% 19%

Safeway 16% 19% 25%

Costco 13% 18% 19%

Times 19% 14% 16%

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”

• “I don’t really know where they are grown”

• “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”

• “Mainland eggs are cheaper”

• “Haven’t seen any local milk”

• “I usually buy the ones (romaine lettuce) in packages”

• “Rarely see local romaine lettuce at supermarkets” 27


Cost is only half of the picture…
Q: What, if anything, would encourage you to buy more of these locally grown products for
your own consumption?
60%

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”

• “Special area with all produce together and marked”

• “Clear identification as being Hawai‘i grown, and availability where I shop”

• “Freshness, taste, price, and availability”

• “A little better reputation for quality and perhaps, a greater selection”

• “Little or no pesticides. Fresh, clean and of course, price needs to be right (produce).”

• “Freshness, no antibiotics and hormones added and grass-fed (beef)”

• “Wide availability and competitive pricing. No hormones or antibiotics (beef)”


29
Why a consumer preference survey?
• Quantifies how consumers make food purchasing decisions

• Identifies what matters most to consumers

• 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%

Q: Do you purchase milk by the…?

36
Sample Size: 1,196
Many consumers buy milk each week
0 0.5

Less than 1 2%
NUMBER OF TIMES PER MONTH

1 14% AVERAGE: 3.6

2 26%

Q: In an average month,
3 14%
about how many times do
you buy milk?
4 26%

5 & more 18%

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?

BUY MOST OFTEN EVER PURCHASE 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?

% of Those Who Buy Locally Grown


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
HOUSEHOLD INCOME
<$25K 8% 9% 8% 6% 10%
$25-$50K 23% 23% 23% 23% 22%
$50-$100K 43% 42% 42% 41% 42%
$100K + 27% 27% 27% 30% 25%
EDUCATION
Less than High School 1% 0% 0% - 0%
High School 12% 14% 12% 12% 16%
Business / Trade School 7% 8% 9% 9% 8%
Some College 24% 26% 26% 23% 27%
College Grad / Post Grad 56% 51% 53% 56% 49%

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?

% of Those Who Buy Locally Grown

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%

Wai‘anae / Greater Kapolei 12% 14% 15% 11% 14%


Windward (Ka‘a‘awa to
17% 16% 14% 22% 14%
Waimanalo)

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%

19% 19% 21% 19% 19%


20%
18%

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

Milking to Shelf 13.80

Origin 13.50

Taste 7.60

Growing Conditions 3.80

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:

• Freshness: Number of days from milking cows to


stocking shelves at Hawai‘i’s markets: average
Hawai‘i milk 4 days vs. Mainland milk 24-30 days

• Health: Consumers want milk without antibiotics


and hormones

• Quality: Consumers do not know Mainland milk


sold in Hawai‘i is pasteurized twice and this
practice is not permitted in other states

• Farm Location: Local Hawai‘i farmer preferred


over Mainland producer

• Convenience: Supermarket distribution is critical

• Price Premium: If they understood the


difference, consumers would pay $1.25 more per
quart for local milk
50
EGGS
Consumer Preference Survey Results

51
Many consumers buy eggs every other week
Q: In an average month, about how many times do you buy eggs?

0% NUMBER OF TIMES PER MONTH 50%

Less than 1 1% AVERAGE: 2.4

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?

BUY MOST OFTEN EVER PURCHASE GROWN IN


Hawai‘i?

Mainland
33%
YES
86%

Hawai‘i NO
Don't 14%
63% Know
4%
Foreign
Country
0%

Sample Size: 1,164 Sample Size: 430

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?

% 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
HOUSEHOLD INCOME
<$25K 8% 8% 9% 4% 9%
$25-$50K 23% 23% 23% 23% 23%
$50-$100K 43% 42% 37% 45% 43%
$100K + 27% 27% 32% 28% 25%
EDUCATION
Less than High School 1% 0% 1% - -
High School 12% 12% 10% 12% 13%
Business / Trade School 7% 7% 8% 8% 7%
Some College 25% 24% 23% 21% 26%
College Grad / Post Grad 56% 56% 58% 59% 54%

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?

% 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

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%

Wai‘anae / Greater Kapolei 12% 12% 9% 15% 12%


Windward (Ka‘a‘awa to
17% 17% 17% 20% 16%
Waimanalo)

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

Hawaiian Brand Key


60%
Maid Mainland company
Hawai‘i company

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

Hawaiian Brand Key


21% Mainland company
Maid
Hawai‘i company

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

Lucerne 46% Brand Key


Safeway’s Brand
Mainland company
Hawai‘i company

62
Sample Size: 1,033
Egg farm location influences purchase
Q: Which brand of eggs do you purchase most often? By Region

Hawaiian Maid Ka Lei Lucerne


100%

• 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

Place of Origin 18.78

Availability 17.84

Length of Time from Chicken to Shelf 15.65

Texture 11.04

Growing Conditions 5.40

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:

• Freshness: Number of days from chicken to shelf:


average Hawai‘i 3-4 days vs. Mainland 2-3 weeks

• Quality: Local eggs are usually bigger, have


brighter yolks, and hold their texture compared to
Mainland imports. Hawai‘i receives the less
desirable Mainland eggs.

• Farm Location: Local Hawai‘i farmer preferred


over Mainland producer

• Convenience: Ease of availability to consumer is


critical

• Price Premium: If they understood the difference,


consumers were willing to pay over a $1.50 more
per dozen for local eggs

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?

0% NUMBER OF TIMES PER MONTH 50%

Less than 1 2% AVERAGE: 3.4

1 15%

2 22%

3 14%

4 31%

5 & more 16%

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?

BUY MOST OFTEN EVER PURCHASE GROWN IN


Hawai‘i?
Foreign
Hawai‘i Country
73% 9%
YES
82%

Mainland
11% NO
18%
Don't
Know
7%

Sample Size: 1,154 Sample Size: 311

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?

% of Those Who Buy Locally Grown

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%

Wai‘anae / Greater Kapolei 12% 12% 12% 14% 11%


Windward (Ka‘a‘awa to
17% 17% 16% 16% 18%
Waimanalo)

75
= Statistically Significant Sample Size: 1,040
Price is only one factor when buying bananas
0 50

Price 30.89

Place of Origin 21.93

Variety 16.75

Availability 14.08

Taste 9.14

Appearance 4.09

Growing Conditions 3.13

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

• Locally grown Williams bananas are also favored by consumers

• Supermarket distribution is most important but farmers markets are also critical

77
Potential opportunities for local bananas
Local bananas can emphasize:

• Freshness: Number of days from picking to


shelf

• Variety: Potential expanded market for local


Williams bananas

• Apple Bananas: Consumers already express


strong loyalty and taste preference, could
develop stronger brands to build market
share

• Farm Location: Local Hawai‘i farmer


preferred over a Mainland producer

• Convenience: Supermarket and farmers


market distribution are both critical

• Price Premium: If they understood the


difference, consumers were willing to pay
over a $1 more per pound for local bananas 78
TOMATOES
Consumer Preference Survey Results

79
Many consumers buy tomatoes every other week
Q: In an average month, about how many times do you buy tomatoes?

0% 50%

NUMBER OF TIMES PER MONTH


Less than 1 2%
AVERAGE: 2.8
1 22%

2 33%

3 15%

4 18%

5 & more 10%

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?

BUY MOST OFTEN EVER PURCHASE GROWN IN


HAWAI‘I?
Foreign
Country
Hawai'i
1%
68%

Mainland
19% YES
81%

NO
19%
Don't
Know
12%

Sample Size: 1,141 Sample Size: 361


83
Most residents believe they buy local tomatoes
Q: In one month, about what percentage of
tomatoes do you buy that are grown in Hawai’i?

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?

% 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
HOUSEHOLD INCOME
<$25K 8% 7% 7% 5% 8%
$25-$50K 23% 22% 26% 20% 21%
$50-$100K 43% 44% 44% 46% 42%
$100K + 27% 28% 23% 30% 28%
EDUCATION
Less than High School 1% 1% 1% 0% 1%
High School 12% 11% 17% 7% 13%
Business / Trade School 7% 8% 5% 9% 8%
Some College 25% 25% 24% 24% 25%
College Grad / Post Grad 56% 56% 54% 60% 54%

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?

% 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

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

Hamakua Springs Kamuela Sugarland


100%

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

Place of Origin 18.29

Availability 13.39

Texture 9.35

Length of Time from Harvest to Store 6.94

Taste 6.10

Color 3.21

Appearance 3.11

Growing Conditions 2.37


Attributes were determined from focus group results and working with the Ulupono Team

92
Key findings: tomatoes

• Price is two times more important than any other factor

• Majority of tomatoes sold are local

• 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:

• Farm Location: Local Hawai‘i farmer preferred over Mainland producer

• Convenience: Ease of availability to consumer is critical

• Price Premium: If they understood the difference, consumers were willing to


pay over a $2.50 more per pound for local tomatoes

• 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%

Less than 1 4% NUMBER OF TIMES PER MONTH

AVERAGE: 2.9
1 23%

2 29%

3 15%

4 19%

5 & more 11%

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?

BUY MOST OFTEN EVER PURCHASE GROWN IN


HAWAIʻI?
Foreign
Country
1%
Mainland NO
37% 44%
Hawai‘i
43%

YES
56%

Don't
Know
19%

Sample Size: 1,123 Sample Size: 643


99
Most residents believe they buy local lettuce
Q: In one month, about what percentage of romaine
lettuce do you buy that are grown in Hawai’i?

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?

% 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 764 176 275 313
HOUSEHOLD INCOME
<$25K 8% 7% 5% 5% 8%
$25-$50K 23% 23% 20% 22% 27%
$50-$100K 43% 43% 43% 43% 43%
$100K + 27% 27% 32% 28% 22%
EDUCATION
Less than High School 1% 1% 1% - 1%
High School 12% 11% 12% 9% 12%
Business / Trade School 7% 8% 6% 6% 9%
Some College 25% 25% 23% 25% 25%
College Grad / Post Grad 56% 56% 59% 59% 52%

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?

% of Those Who Buy Locally Grown

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%

Wai‘anae / Greater Kapolei 12% 12% 13% 11% 12%


Windward (Ka‘a‘awa to
17% 18% 20% 22% 14%
Waimanalo)

103
= Statistically Significant Sample Size: 1,196
Price is only one factor when buying lettuce
0 50

Price 35.90

Place of origin 21.30

Availability 16.76

Taste 11.53

Color 10.60

Growing Conditions 3.91

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

• Consumers purchase both local and Mainland lettuce

• Women are the most likely to purchase local lettuce

105
Potential opportunities for local lettuce
Local lettuce can emphasize:

• Farm Location: Local Hawai‘i farmer preferred over Mainland producer

• Convenience: Ease of availability to consumer is critical

• Price Premium: If they understood the difference, consumers were willing to


pay over a $1.50 more per pound for local lettuce

• Quality: Local lettuce is usually a brighter and shinier green plus has a crisp,
sweeter taste than Mainland lettuce

• Freshness: Number of days from harvest to shelf

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

Less than 1 1% NUMBER OF TIMES PER MONTH

AVERAGE: 3.8
1 15%

2 26%

3 16%

4 20%

5 & more 22%

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?

BUY MOST OFTEN EVER PURCHASE GROWN IN


HAWAI‘I?
Foreign
Country
Hawai‘i 1%
18% NO
48%

Don't
Know
16% YES
52%
Mainland
65%

Sample Size: 1,123 Sample Size: 920


110
Residents who buy local do not always buy local beef
Q: In one month, about what percentage of rib-eye
steak do you buy that are grown in Hawai’i?

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?

% of Those Who Buy Locally Grown


Buyer by Frequency
Low- Mid- High-
Total Sample Buyer Percentage Percentage Percentage
(1-25%) (26-50%) (51-100%)
Base 1196 557 239 174 144
HOUSEHOLD INCOME
<$25K 8% 9% 5% 10% 16%
$25-$50K 23% 23% 22% 25% 23%
$50-$100K 43% 42% 38% 47% 43%
$100K + 27% 25% 35% 18% 18%
EDUCATION
Less than High School 1% 0% - - 1%
High School 12% 12% 7% 15% 18%
Business / Trade School 7% 8% 5% 12% 8%
Some College 25% 27% 25% 25% 35%
College Grad / Post Grad 56% 52% 63% 48% 38%

112
= Statistically Significant Sample Size: 1,196
Caucasians, older, & men more likely to buy Mainland beef

Q: In one % of Those Who Buy Locally Grown


month, Buyer by Frequency
Low- Mid- High-
about what
Total Sample Buyer Percentage Percentage Percentage
percentage (1-25%) (26-50%) (51-100%)
of rib-eye Base 1196 557 239 174 144
steak do you ETHNICITY
buy that are Caucasian 27% 21% 24% 24% 13%
grown in Japanese 22% 21% 22% 24% 19%
Hawai’i? Hawaiian 9% 14% 14% 12% 17%
Filipino 8% 10% 7% 10% 15%
Other 34% 34% 34% 31% 37%
AGE
18-34 13% 15% 9% 21% 16%
35-54 41% 43% 43% 39% 47%
55+ 46% 43% 48% 40% 37%
Average 51.8 50.9 53.1 49.2 49.4
SEX
Male 27% 28% 33% 29% 20%
Female 73% 72% 67% 72% 80%

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?

% of Those Who Buy Locally Grown

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%

Wai‘anae / Greater Kapolei 12% 14% 9% 14% 20%


Windward (Ka‘a‘awa to
17% 16% 18% 21% 8%
Waimanalo)

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

Costco Kirkland 75%

Hawai'i Ranchers Brand Key


39%
Beef Mainland company
Hawai‘i company

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%

Costco Kirkland 48%

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%

Costco Kirkland 68%

Times Sterling
65%
Silver

Hawai'i Ranchers Brand Key


27%
Beef Mainland company
Hawai‘i company

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

Growing Conditions 4.38

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:

• Natural: Local beef, especially grass-fed, has no hormones and no antibiotics

• Farm Location: Local Hawai‘i farmer preferred over Mainland producer

• Convenience: Ease of availability to consumer is critical

• Price Premium: If they understood the difference, consumers were willing to


pay over a $2.13 more per pound for local rib-eye steak

• Freshness: Fewer days from processing to shelf for local beef

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

15.65 14.08 Color


3.95 6.94
60% 3.91 Natural
3.80
4.21 2.37
3.13 Texture
5.40
50% 13.50 Appearance
17.01 18.29 21.30 Taste

18.78 21.93 Availability


40%
4.38 Length of Time from Farm to Shelf
Growing/Production Conditions
30%
10.48 Place of Origin
Price
43.50
20%
37.24 35.90
31.30 30.89
23.53 Quality Key
10%
Hawai‘i benefit

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

Local apple bananas and local Williams bananas


• Large mechanized plantation -> small farm

Local romaine lettuce


123
• Large mechanized farm -> small farm
Most important qualities for each product surveyed
Romaine
Beef Egg Milk Tomato Banana
Lettuce

Price 23.53 % 31.30 % 43.50 % 37.24 % 30.89 % 35.90 %

Place of Origin 10.48 % 18.78 % 13.50 % 18.29 % 21.93 % 21.30 %

Availability 17.01 % 17.84 % 17.80 % 13.39 % 14.08 % 16.76 %


Growing/Production
Conditions 4.38 % 5.40 % 3.80 % 2.37 % 3.13 % 3.91 %

Taste 4.21 % 7.60 % 6.10 % 9.14 % 11.53 %

Length of Time 15.65 % 13.80 % 6.94 %

Appearance 3.95 % 3.11 % 4.09 %

Texture 16.08 % 11.04 % 9.35 %


(No Hormones and No
Natural Antibiotics) 20.36 %

Color 3.21 % 10.60 %

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

31.30 31.10 30.89


Importance of Product Feature

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

1. Increase availability – local is too hard to find


2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role

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%

Mainland Market Share


40%
Local Market Share
30%
30%

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%

60% 57% 58%

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)

If buyers are informed about local tomatoes, then the local


tomato industry can increase its market share by 1.73 times.
132
Informed consumer could increase banana market share
Without adjusting price BUT informing customers...
80%

69%
70%

61%
60%

50%
45%
Market Share

41%
40% 37%
Mainland Market Share

30% Local 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

1. Increase availability – local is too hard to find


2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role

135
What people will pay for local food
Uninformed buyer of rib-eye steak
80%

70%

60%

50%
Market Share

If buyers are uninformed about local


40%
beef, then local beef cannot achieve Mainland Market Share
market share parity at any price. Local Market Share
30%

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

Mainland Market Share


30% Local 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%

If buyers are informed about local milk, then


70% local milk can be priced at $1.25 more per quart
to achieve market share parity with 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 $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

are $0.31 more per dozen than Mainland.


If cheaper than that, the local product
Mainland Market Share
will be purchased more than Mainland.
30% Local 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%

If buyers are informed about local eggs, then


90% local eggs can be priced at around $1.75 more
per dozen to achieve market share parity with
80% Mainland. If cheaper than that, the local
product will be purchased more than Mainland.
70%

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%

If buyers are informed about local tomatoes,


100% then local tomatoes can be priced at around
$2.55 more to achieve market share parity with
Mainland. If cheaper than that, the local
product will be purchased more than Mainland.
80%
Market Share

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

Mainland Market Share


30% Local 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%

If buyers are informed about local apple bananas, then local


Market Share

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

Williams bananas, then local Williams


40% bananas can equal market share parity Mainland Market Share
with Mainland if they are the same price. Local Market Share
If cheaper than that, the local product
30%
will be purchased more than Mainland.

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

Mainland Market Share


30% Local 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%

If buyers are uninformed about local romaine lettuce, then local


80% romaine lettuce can equal market share parity with Mainland if local
romaine lettuce is $0.67 more per pound than Mainland. If cheaper
70% than that, the local product will be purchased more than Mainland.

60%
Market Share

50%

Mainland Market Share


40%
Local Market Share

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%

If buyers are informed about local romaine lettuce, then local


90%
romaine lettuce can be priced at around $1.60 more per pound
to achieve market share parity with Mainland. If cheaper than
80%
that, the local product will be purchased more than Mainland.

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

Tomatoes (per +$0.86 +$2.55 $1.69 per pound


pound)
Eggs (per dozen) +$0.31 +$1.75 $1.44 per dozen

Apple Bananas (per +$0.63 +$1.75 $1.12 per pound


pound)
Williams Bananas +$0.00 +$0.98 $0.98 per pound
(per pound)
Romaine Lettuce +$0.67 +$1.60 $0.93 per pound
(per pound) 150
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

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

1. Increase availability – local is too hard to find


2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role

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)

Milk (per 4% → 30% $1,838,700 1.90x 0.51x 0.063x 24.20


quart) (+26%, 7.75x)

Eggs (per 20% → 58% $449,000 1.90x 0.51x 0.063x 24.20


dozen) (+38%, 2.94x)

Tomatoes (per 33% → 58% $179,506 1.95x 0.58x 0.075x 31.20


pound) (+25%, 1.73x)

Apple Bananas 37% → 61% $121,665 1.95x 0.58x 0.075x 31.20


(per pound) (+24%, 1.65x)

Williams 4% → 45%
Bananas (per (+41%, 11x) Data for Williams Bananas combined with Apple Bananas
pound)

Romaine 33% → 58% $163,501 2.06x 0.54x 0.078x 26.30


Lettuce (per (+25%, 1.73x)
pound) 155
*CTAHR Economic Impacts of Increasing Hawai‘i’s Food Self-Sufficiency (2005), USDA Economic Research Service (2008)
Investing in local agriculture can help Hawai‘i’s economy
Local Product Local Market Direct Sales Direct, Earnings State Tax Jobs Created
Share Increase Increase from Indirect, and (Farmer’s Slice Collections* (per $1M in
% Market Secondary of Proceeds)* Sales)*
Share Sales *
Increase*
Beef (per 5% → 44% $43,992,000 $83,584,800 $22,435,920 $2,771,496 1,065
pound) (+39%, 8.84x)

Milk (per 4% → 30% $47,806,200 $90,831,780 $24,381,162 $3,011,791 1,157


quart) (+26%, 7.75x)
Eggs (per 20% → 58% $17,062,000 $32,417,800 $8,701,620 $1,074,906 413
dozen) (+38%, 2.94x)
Tomatoes (per 33% → 58% $4,487,650 $8,750,918 $2,602,837 $336,574 140
pound) (+25%, 1.73x)
Apple Bananas 37% → 61% $2,919,960 $5,693,922 $1,693,577 $218,997 91
(per pound) (+24%, 1.65x)

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

1. Increase availability – local is too hard to find


2. Increase branding
3. Strengthen the Hawai‘i brand
4. Everyone can play a role

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

= Supermarkets and Big-Box retail


stores (Foodland, Safeway, Costco,
Times, Military Commissary, Tamura’s,
Don Quijote, Sam’s Club, Down to
Earth, Whole Foods)
Food access
on O‘ahu

= Supermarkets and Big-Box retail


stores (Foodland, Safeway, Costco,
Times, Military Commissary, Tamura’s,
Don Quijote, Sam’s Club, Down to
Earth, Whole Foods)
Major retailer locations on O‘ahu as of December 2011
• Foodland (18):
• Aina Haina, Ala Moana, Beretania, Dillingham, Ewa Beach, Hawai‘i Kai, Kailua, Kaneohe, Laie,
Market City, Mililani, Nanakuli, Pearl City, Pupukea, School Street, Stadium (Salt Lake), Wahiawa,
Waipio Gentry
• Safeway (9):
• ‘Aiea, Ala Lilikoi Street, Beretania, East Manoa Road, Hawai‘i Kai, Kailua, Kapahulu, Keolu Drive,
Pali Highway
• Costco (4):
• Hawai‘i Kai, Iwilei, Kapolei, Waipio Gentry
• Times (14):
• ‘Aiea, Beretania, Kahala, Kailua, Kaimuki, Kaneohe, Kapalama (North School Street), Koolau
(Kaneohe), Liliha, McCully, Mililani, Royal Kunia (Waipahu), Waimalu (near Pearl City), Waipahu
• Military Commissaries (4):
• US Marine Corps Base Kaneohe Bay, Pearl Harbor, Hickam Air Force Base, Schofield Barracks
• Tamura’s – excludes Fine Wine stores (4):
• Hauula, Kalaeloa (Kapolei/Barber’s Point), Wahiawa, Wai‘anae (Tamura Super Market)
• Don Quijote (3):
• Kaheka Street, Pearl City, Waipahu
• Sam’s Club (2):
• Honolulu (Keeaumoku), Pearl City
• Down to Earth (3):
• South King Street, Kailua, ‘Aiea
• Whole Foods (1):
• Kahala
161
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

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

Foodland Farms – ‘Aina Haina Poster at Aloha Salads – Bishop Street

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.

• Whether through legislation, industry agreements on labeling, unified marketing, or other


regulations, it could be valuable to protect the “grown in Hawaiʻi” brand

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

LANDOWNERS RETAIL CHANNELS INFLUENTIAL


(Supermarkets, Big- CONSUMERS
Provide More Ag Land
and Longer Leases Box, & Chinatown) (Foodies, Chefs,
Celebrities,
Encourage Farmers and GOVERNMENT & Advocacy Groups,
DISTRIBUTORS Ranchers to Produce AGRICULTURAL Health
More Local Food
GROUPS Organizations,
Buy More Local Food Media, and etc.)
Encourage Farmers and Encourage Other Encourage Farmers and
Advertise they Carry Ranchers to Produce
FARMERS & Ranchers to Produce
More Local Foods Stakeholders through
RANCHERS More Local Food Funding and Regulations More Local Food

Clearly Label Local Encourage General


Increase Production of Buy More Local Food Establish / Promote One
Section in Stores Public to Purchase and
Food Standard Hawai‘i-grown
Advertise they Carry Label Eat More Local Food
Identify Business
Encourage Better More Local Foods
Branding and Marketing
Opportunities 2 3 4
More Stringent Labeling
Identify Business Laws with Enforcement
Expand Access to Local
Identify Business Opportunities
Food Island-Wide
Opportunities Strengthen the Hawai‘i
1 2 3 Brand
2 4 GENERAL PUBLIC
Increase Funding for
Agriculture Encourage Retailers and
FARMERS MARKETS Government to Make It
Increase Farmers Market Easier to Identify Local
Access Food
TRANSPORTATION RESTAURANTS & Expand Access for EBT Buy More Local Food;
Provide cheaper / bulk FAST FOOD Card Use at Farmers Every Purchase Makes a
shipping 1 2 Markets and CSAs Difference

INSTITUTIONS Learn More about


Benefits of Local Food
STRATEGIC RECOMMENDATIONS (Hotels, Schools,
Hospitals, Airlines, Support Your Local
1. Increase Availability Military, Non- Farmers and Ranchers
2. Increase Branding Profits) 3 4
3. Strengthen the Hawai‘i’s Brand
4. Everyone Can Play a Role 1 3 4

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