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MARKET PROFILE
Des Moines, Iowa
This capital city is well-positioned
to grow its offerings Tof fruits and vegetables
By Carol M. Bareuther
here’s a long-held observation trends start on the coasts and work their way to the Midwest last.
True or not, Des Moines today is certainly in tune with the latest food scene. Located a little more than 1,100 miles from New York City and a little less than 1,700 miles from Los Angeles, Iowa’s capital and largest city by land area and popu- lation sits nearly in the middle of the nation. Two major interstates, the east-west Route 80 and north-south Route 35, intersect here, meaning Des Moines is easily accessible by land to domestically grown produce as well as coastal ports and international borders for
global imports.
Fueled by a robust economy driven by the
insurance and financial sectors, rising ethnic diversity led by immigrants principally from Mexico, Asia and Eastern Europe and a rela- tively young median age of residents of 35 years, it is understandable to see why U.S. News & World Report ranked Des Moines fourth in its “Best Places to Live in the U.S.” in 2018. All these factors influence what resi- dents want when it comes to fresh fruits and vegetables at retail and restaurants.
“When everyone comes here, they want to see a cornfield,” says Brendan Comito, chief operating officer Capital City Fruit, Inc., a 1949-started, family-owned produce shipper, repacker and distributor headquartered in nearby Norwalk, IA. “They don’t really think of the city as having a James Beard-nomi- nated chef, but that’s what Des Moines’ food scene offers nowadays.”
MARKET SNAPSHOT
Des Moines, founded in 1851, was named after a tributary of the Mississippi, the Des Moines River. The Port of Des Moines today is more an entertainment rather than cargo complex. Highways, and, to a much-lesser extent, rail and air are the chief transport for food products. An estimated 217,521 people call Des Moines home, according to the U.S. Census Bureau, up 6.5 perfect from
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the last official tally in 2010. This makes the city the 104th largest in the nation and 19th most-populated state capital. A little more than three-fourths of residents (77.1 percent) are Caucasian, followed by Hispanic (12.6 percent), African-American (11.0 percent) and Asian (5.5 percent).
“We’re seeing greater demand for a diverse mix of fruits and vegetables such as avocados, mangos, tomatillos, cilantro and a number of pepper varieties,” says James ‘Jimmy’ DeMatteis, president and chief executive of the Norwalk, IA-based Des Moines Truck Brokers, Inc., a full-service, third-party trans- portation logistics provider that specializes in fresh produce. It delivered more than 10,000 loads last year. “This stems on one hand from a downtown revitalization effort started more than a decade ago that now attracts Millennials to restaurants offering a variety of cuisines. At the same time, local retailers have broadened their offerings, and supermar- kets such as Hy-Vee are even hosting events like Hatch chile roastings.”
“Iowa is fortunate to be home base for several major grocery retailers, along with a wide variety of strong independent grocers,” says Michelle Hurd, president of the Iowa Grocery Industry Association (IGIA), in Urbandale, IA. “There has been an influx of specialty stores in Iowa over the past decade, which mirrors the national trend. Whole Foods, Trader Joe’s and Natural Grocers are among those specialty retailers that operate
in the Des Moines area.”
The three supermarkets that collectively
represent two-thirds of retail market share in Des Moines are Hy-Vee (34.9 percent), Walmart (17.6 percent) and Fareway (11.7). Add Des Moines Grocery Stores (DGS) under the Kansas City, MO-headquartered Price Chopper banner, and share from these four is nearly three-fourths (73 percent) of the market. Hy-Vee and Fareway both have been in the Des Moines market since the 1930s, while Walmart entered more recently in the early 1980s. DGS began in 2015, after owners purchased six of seven locations formerly owned by the Dahl’s Food Stores, which went bankrupt three years ago. Other retailers listed by descending market share include Sam’s Club, Costco Wholesale, Super Target, Whole Foods, Aldi, Dollar General, Trader Joe’s, Dollar Tree, Fresh Thyme, Home Town Foods, and others such as the upscale, single-store Gateway Market.
“Consolidation has definitely reduced the number of buyers in this market, as efficiencies are implemented once a retail company has been acquired,” says Brent Addison, director of sales and marketing for Capital City Fruit, Norwalk, IA. “Associated Wholesale Growers’ (AWG) (of which Des Moines Price Chopper and banner stores are members) recent acquisition of Affiliated Foods and acquisition of some of Central Grocer’s customers significantly reduced the number of buyers.”
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