Page 58 - Index

MARKET PROFILE
Midwest Markets Re ect Trends
Marketplace presents demographic changes that favor more produce consumption.
TBy Jodean Robbins
he Des Moines-St. Louis-Kansas City region represents a unique produce market because of its growing diversity. Historically considered mid-America, these Midwestern
cities are growing and transforming, according to Brendan Comito, chief operations o cer at Capital City Fruit in Norwalk, IA. “Des Moines has double the growth of most regional cities thanks to its a ordability, low crime and attractiveness to Millennials,” he says.
e Greater Des Moines Partnership reports median household income has grown at a rate of 24.9% since 2007, while per capita income growth has grown at a pace of 25.5% since 2007. In 2017, the most persons of all races belonged in the 30-34 age category, followed closely by the 35-39 age group and then the 25-29 age group.
ese three major cities represent signif- icant population centers totaling more than 5.6 million people, according to estimates from the U.S. Census Bureau. e greater Des Moines area embraces a population of 645,911; the greater St. Louis area more than 2.8 million people; and metro Kansas City, MO, more than 2.1 million people.
As the region experiences growth, its major population centers are diversifying. “For example, 70 languages are spoken in Des Moines Public Schools,” says Comito. “A plethora of ethnic restaurants has emerged over the past 15 years, vastly expanding tastes and exposing native Iowans to many fruits and vegetables they have never experienced before.”
e region’s changing demographics and location led to a competitive produce envi- ronment. “Wholesalers ght for customers, and produce consumption continues to grow,” says Ron Petersen, president of Summertime Potato Company in Des Moines, IA.
Jimmy DeMatteis, president and chief executive at Des Moines Truck Brokers in Des Moines, IA, describes his town as a good produce environment. “Due to our geograph-
58 / AUGUST 2019 / PRODUCE BUSINESS
ical location, it is virtually at the crossroads of America,” he says. “With the city’s growth, many good restaurants have opened. e popularity of food and self-diagnosed foodies has created a bigger demand for produce diversity.”
BOUNTIFUL MARKETPLACE
e region boasts a number of signi cant regional and national retailers. “ e retail environment is upscale and competitive,” says Nick Conforti, vice president of C&C Produce in Kansas City, MO. “We have Whole Foods, Hy-Vee and Hen House, as well as SunFresh and Aldi. Quality is the biggest criteria. In the old days, someone might sacri ce some quality for a deal, but now it’s all about getting the best quality and best service.”
Regional chain Hy-Vee dominates the Des Moines market with a 34.9% market share according to the Chain Store Guide, followed by Walmart at 17.6% and Fairway at 11.7%. DGS Foods, Sams Club, Costco, Target, Whole Foods, Aldi, Dollar General and Trader Joe’s, among others, divvy the rest of the market up.
In St. Louis, Schnuck Markets controls 23.2% of market share followed closely by Walmart with 20%. Supervalu’s Shop n’ Save (at 11.9%), Dierbergs (at 9.6%) and Sam’s Club (at 7%) are also active players. A retail variety of chains, including Kroger, Costco, Aldi, Target, Dollar General, Save-A-Lot and Trader Joe’s, shares the remainder of the market.
Schnucks is a dominant retail presence in the St. Louis marketplace, says Vince Pupillo, owner of VMP Produce in St. Louis. “ ey continue to grow having just purchased more stores,” he says. “ ey support some of the wholesalers here on the market.”
Walmart controls 21.4% of the Kansas City market. Yet, Four B Corporation, with Price Chopper & Hen House banners (at 12.6%), Hy-Vee (at 11.4%) and Cosentino’s (at 11.4%) remain strong competitors. e rest of the market is broken up among many players, including Costco, Sam’s, Target, Aldi, Dollar General, Whole Foods, Sprouts and Save-A-Lot.
Comito notes there are not as many inde- pendents in this part of the country as other areas. “Here, we have mostly the regional and national retail chains,” he says. “We are seeing a lot more C-stores get into merchandising produce. e C-stores are the independent grocers of yesterday.”
However, rural Iowa’s independent stores remain crucial to their communities. “ ese rural independents are strong and growing,” says Petersen. “ ey t a certain niche. Rural areas are very di erent than metro areas. A grocery store in a small town means a lot.”
A number of farmers markets are scat- tered throughout the region and thriving. e oldest in Kansas City is the City Market, not far from the Missouri River. Since its incep- tion in 1857, the City Market has been one of the largest and most enduring public farmers markets in the Midwest, linking growers and small businesses to the Kansas City commu-
DES MOINES • ST.LOUIS • KANSAS CITY