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a large organic traffic, it will be in certain sec- tions. Organic product is merchandised in an organic Publix GreenWise area, so customers know exactly where to go and can shop within that area.
The majority of what you’ll see is in line with the other products, because organic has become a lifestyle. It’s not a fad. More cus- tomers are looking to find that balance to be able to make those purchases easily, not to have to go to a particular section, but to be able to travel through the store, and it really is about balance.
Just because our customers are living healthier lifestyle, doesn’t mean they’re not going to want to eat the pastries. It just means that they’ll eat the pastries in moderation.
It goes back to the same thing about trans- fat. We talk about transfat being one of the things that was really high on our customers’ satisfaction. But when you do a transfat-free donut, it doesn’t really have the same affect. We’re always mindful that we listen to cus- tomers, but then we also do the research and say, “Here’s what you asked for because it may have sounded good. Here’s what the end result will be like. Now, tell us, where do we go on this?” It’s not that it’s impossible to do, but if you’re going to eat a donut, you’re eat- ing it for the transfat that’s in the donut, not because it’s transfat-free.
Those are all the things that we keep in context in really understanding that our job, as a grocer of choice, is to provide options for customers and allow them to make the best decisions for their families. For some cus- tomers, price point may be the decision factor, so private label is important. For others, it might be a belief in a more holistic, organic lifestyle. For others, it may be the product makes a contribution to the community, so let me go with this product because of the impact that it has from a social economic perspective.
The other part that we can’t forget is the tough economy. Decisions change in a tough economy. What some customers may have chosen in a vibrant economy changes, and they’re making different decisions today. There’s something for everyone. You have to balance the options.
And, we don’t take anything and general- ize. We don’t make assumptions. Our private label organic is less expensive traditionally than an organic product would be. Publix GreenWise tends to be less expensive because we have the buying power of 1,002 stores.
So, there are trade-offs. I may be willing to buy this in a particular brand, but I’m not going to compromise my produce. I may be solely committed to buying organic produce based on what I’ve read. But, that’s really up to each and every customer to make that determination.
Mira Slott: I’m just following up on your comments about educating consumers and offering choices, and not making too many judgments. I don’t know if we’re sidetracking, but on your Web site, Publix discusses certifica- tion and labeling concerns regarding seafood. I was wondering whether there were some paral- lels to how you were labeling in produce as well. Could you discuss what’s happening in that seafood category, and then apply it in broader terms?
Michael Hewitt: Well, seafood is a great example where we are partnering with other retailers and suppliers to try to do better in labeling, and to improve those certification programs. Because as we discuss on our Web site, many of those certification programs can be confusing to the customer.
Maria Brous: And conflicting.
Michael Hewitt: Depending on whom you talk to, one item may be from a sustain- able fishery. Someone else may say that it’s not. So, we’re listening to our customers. We know that they’re concerned about this issue. We are working hard on this issue all the time, and you’ll find some very frank language on
our sustainable Web site about that. And, that again is part of the transparency of our sus- tainability program.
We’re trying to be as open and as transpar- ent as possible with our customers, with our suppliers, and even with our competitors so that together, we can all do better.
CORPORATE CULTURE
Ken Whitacre: Are there certain bench- marks that you are trying to achieve over the years? I would say this is all a gigantic work in process that probably will never end. But, do you have certain benchmarks that you’ve estab- lished — let’s say for example a certain percent- age of local or a percentage of organic at cer- tain times, or a percentage of wax-alternative packaging. Is that already 100 percent or do you have numbers that you try to look at and see where your goals are in the future?
Michael Hewitt:Well sustainability is not a destination; it’s a journey. So, it’s not some- thing that we’re going to be working on this year, and next year decide well, we’re done. We’re on to the next thing. Sustainability is really a philosophy that’s been with Publix
Exposed produce refrigeration ducts efficiently re-circulate the heat, which is then used to warm the building’s water systems.
34 PRODUCE BUSINESS • MAY 2009