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are not there yet. Some places in California are easier in regards to sustainability. There are a lot of programs we’re working through to reduce waste. I can talk about goals and objectives in produce, to load all trucks to full capacity. For years we’d have trucks half full. Be sure we’re not wasteful of energy, and increase use of Returnable Plastic Containers (RPCs). RPCs have been around for awhile, and we’ve meddled in it a little bit. As we move forward, RPCs will be a stronger initiative.
PB: How and why? What percentage of produce is shipped via RPCs? Are you considering using RPCs on the retail floor?
Miskimins: We’re looking at options of merchandising with RPCs in stores. We have several pilots going on, along with refriger- ated cases. We’re testing it. We ship roughly 18 to 19 percent of produce in RPCs currently. Obviously, we’re talking about eliminating cardboard waste. It’s a returnable container, so there are a lot of advantages from a social aspect. Also, our goal is deliv- ering fresher product to our consumers and we see RPCs as a tool in that mission.
PB: How important is locally grown produce and how is the concept of local being pursued within the produce department? What are some of the key chal- lenges and opportunities in this area? Do you have any vignettes that you could share with our readers about your experiences with local farmers?
Miskimins: Local is huge. I’ll tell you that. Consumers are asking for it and our job is always to react to consumers. We’re iden- tifying more farmers and suppliers. We try to partner with states; Michigan for blueberries, Olathe corn is a big deal for us, Vidalia onions out of Georgia, to name a few.
We feel we’re only at the tip of
the iceberg on what local will mean to Kroger in the future. We want fresh product, and local res- onates with our customers. Local is dear to my heart. It goes back to the engagement piece. I’ve been in Seattle for the past two years, enjoying the local produce and relishing that northwest fla- vor. If you read and see what’s going on around us, younger gen- erations want to eat healthfully, and they connect fresh and local with that.
PB: Do you face unique issues when procuring local pro- duce? For example, is it more complex to ensure food safety controls? Do you partner with local farmers to create special deals, etc.?
Miskimins: Food safety is always an issue with local farmers. We need to get boots on the ground to determine specs, packing options, how much they can supply, etc. Maybe they can supply 30 stores in Dayton, Ohio, or Nashville, Tennessee, and it means us giving them solid commitments.
PB: How does organic pro- duce fit within the mix? Is there an initiative in Kroger’s produce department to increase organic SKUs? Miskimins: I can tell you organic is extremely important. Are we growing organic? The answer is, absolutely. One initiative is to continue to boost the category. It’s one of the fastest growing cat- egories in the produce department. We need to con- tinue to look at individual stores and expand varieties. Increasing SKUs is part of our objective to grow the organic selection we offer our consumers.
I would tell you if we have eight or 12 feet of organic in a store, we’ll probably have 20 feet in the future. We’re going to be an organic destination. We’re still going to highlight conventional and build our multicultural initiative moving forward. You have to serve the communities.
PB: Let’s revisit the theme of community engagement... you expound on this multicul- tural initiative? Does this involve customizing produce selection, merchandising and marketing based on store locations? Does the employee makeup match those varying customer bases?
Miskimins: We have to know our customers in any given mar- ket. We do a lot of consumer research. Diversity is very true. It’s hitting right in my sweet spot say- ing multicultural. We have different educational programs, but most times associates know their customers, what they buy year in and year out. Our job is making sure we get the right prod- uct selection at the right times and at the right price.
PB: Kroger is a huge corpora- tion. Often, independent stores contrast their cus- tomization and flexibility to big conglomerates mired in layers of bureaucracy and centralized, cookie-cutter buying. Kroger is a mammoth organization, yet seems to have an independent store mentality in many ways. Miskimins:I’vebeeninthiscom- pany 32 years, and I can attest to the fact that most stores are viewed as individual units because the consumer looks at their store as a local store. They don’t see a big corporation. Each of our indi- vidual stores helps meet the needs in that area, but as a big company, we have to be sure we’re leverag- ing that.
PB: By leveraging, are you saying that Kroger can capi- talize on the benefits that a large, sophisticated buying organization can realize, such as economies of scale, a wider supplier base, financial resources for research stud- ies, etc.?
Miskimins: We do have the best of both worlds being able to do some things with scale and
also remain community-based. We have a produce buying organization — Wesco Foods — that we manage from here. Our buying operation is comprised of a very talented group of individ- uals. The divisions know they can call Wesco and get what they need.
We can react to local markets very well, and Wesco is very inter- twined to respond. If someone calls at the last minute, I have four loads that just came in, we can react to that, and take advantage of local deals and market shifts if we choose.
PB: I understand you have a floral background. Would you like to comment about floral and its sustainability efforts, recycling, etc.?
Miskimins: Our floral initiatives are in line with produce opera- tions. Whether it’s recycling buckets or composting, we’re tak- ing the same avenues in floral as in produce. Our floral group attends the same meetings. Sustainability strategies are aligned, staying true to Kroger’s core values.
PB: What most inspires you about Kroger and the pro- duce department in the context of future sustainabil- ity goals? Do you have any insight you could provide industry executives as Kroger looks to reach new plateaus in sustainability?
Miskimins: I would tell you for me, it’s the people that bring me back. I wake up and want to come to work. To be in the pro- duce arena and experience the change of seasons, the colors, the challenges of the perishability side, it really motivates me. I love to go to the stores and talk to produce managers and floral managers. That’s where I learn things. They’re telling me what the customers want, and it is constantly evolving and chang- ing. We are driven on data, but we have to remember to listen to the customer.
MAY 2012 • PRODUCE BUSINESS 45