Schnucks doubles down on sourcing local produce

Dive Brief:

Schnucks has launched a partnership with logistics and marketing firm Foodshed.io to expand existing relationships with local farmers and establish new ones, according to a press release. The grocer and Foodshed.io will also work together to make sure the products meet Schnucks’ quality standards.
The program is intended to help Schnucks reach its 2020 goal of buying more than $5 million worth of local produce and goods from farmers who live and work in communities no more than a five-hour drive from any one of its store locations.
Foodshed.io participated in the Yield Lab Incubator in St. Louis, which is a part of the Ag Tech Innovation Fund. The company uses blockchain technology to provide shoppers with information about foods, such as an item's origin and its harvest date, according to the firm's website.

Dive Insight:

With COVID-19 heavily impacting farmers and interrupting supply chains, Schnucks has leaned further into its goal of local sourcing with the Foodshed.io partnership. In addition to its 2020 goal, the grocer announced just last month that it is developing a new natural foods concept that will be focused on natural, organic and locally sourced products. In 2017, Schnucks also launched its Double Up Food Bucks in 2017, which doubled the value of SNAP benefits for all local produce purchases.

Both Schnucks and Foodshed.io have ties to St. Louis. In 2018, the food retailer expanded its footprint in the city with its purchase of 19 St. Louis-area Shop n’ Save locations from Supervalu. As for the tech company, while it began in New York City, the company moved its base to St. Louis

Foodshed.io helps retailers source produce from local and independent farms, and performs quality control checks. The company told the St. Louis Business Journal that although its business would do fine if it had no ties to the city, Yield Lab has solidified its future and made the company more aware of St. Louis’ role in agriculture. The company plans to grow its footprint to retailers nationwide.

By partnering with an outside tech company that specializes in sourcing from local farms, Schnucks might have an easier time reaching its $5 million goal.