**5. Results**

Hence, the objectives of the research are:

**•** Build a local food products marketing model.

shaping the local foods market;

local food consumers; and

10 Food Production and Industry

**4.2. Conceptual framework**

**Figure 1.** Conceptual Framework

**4.3. Design and procedure**

Figure 1).

**•** Assess the importance of local foods production and distribution systems in creating and

**•** Understand the motives and concerns, product preferences, and consumption patterns of

To address the abovementioned objectives, a conceptual framework has been developed (cf.

It shows the value delivery network that will be assessed in this study. Basically consumers are assumed to have requests regarding food quality, freshness, environmental and economic impacts, and healthiness. This is assumed to depict a certain size of operations (large versus small). This in turn will impact the type of channels member involved in these operations. It is assumed here that the distribution channels are very short, counting a maximum of 2 members: 1 producer/farmer and 1 distributor (if there are any). These channels create certain values that are logically different depending on the point of sale. Lastly, depending on the market coverage and the channel size, farmers, producers, or distributors will have a market‐

To address the abovementioned objectives, a mixed design has been used to assess the added values of the production and distribution systems in Canada. The supply side situation was assessed by conducting personal in-depth interviews with alternative food producers and market intermediaries. 60 in-depth interviews were conducted in Ontario and Quebec, Canada, in Fall 2013 and Winter 2014. These interviews were based on an interview guide that lasted about 30 to 45 minutes. The guide probes respondents in the local food products value delivery network to discuss the actual structure of their distribution channel and their

ing approach adapted to the value offered to the target market.

## **5.1. Production and distribution of local foods**

## *5.1.1. Themes generation*

In-depth interviews took place in Ontario and Quebec, Canada. It targeted four cities selected as follow: 1 city and 1 community in each province, and 15 channel members in each location for a total of 60 in-depth interviews. The following channel member categories were targeted: small producers, community farmers, farmers' market, community groceries, specialty stores, and community chain stores. This provides a representative image of the different distribution systems based on city size and culture (French and English) and helps to uncover how producers/distributors develop marketing approaches to target this market niche. Content analysis of in-depth interviews was conducted. Results of the interviews analysis generated four main theme categories: local foods market, local foods definition, marketing issues, and strategies/approaches developed by distributors/producers (cf. Table 1). All themes are derived from the first research objective and clearly reflect the spirit of the interviews.


**Table 1.** List of Generated Themes

## *5.1.2. Local foods value delivery*

Farmers, producers, and distributors have consistent perceptions of the distribution system and the distribution structure. The respondents interviewed for this study generally agree that the local foods market is growing slowly with a solid base of knowledgeable consumers. This market shows also substantial opportunities. More specifically they mentioned an increasing diversification of local food products and a conservative expansion in the type of distribution channels. This new type of offering is mainly derived from the "failure" of the conventional foods system to offer embeddedness. Producers and distributors argue – almost unanimously – that the market is asking for alternative way of producing, distributing and eating. This makes more sense when considering that the organic market went mainstream and failed on several aspect of the value chain and value delivery network.

Arguments put forward by these respondents were related mainly to (i) food mileage and (ii) industrialization of the distribution. Organic food products have failed to carry out value mainly on the second dimension, namely industrialization, and sometimes on both dimensions (food mileage and industrialization). Further, all interviewees from various channels agree to say that consumers are becoming more educated and make smarter food choices. However, it is clear that there are fundamental differences in their purchasing and consumption patterns. Short channels members, such as farmers selling at farms gate, stated that consumers buying at their point of sale are very knowledgeable and are looking for more than a standard purchase. The derived value is based on building a long lasting relationship with the farmer/ producer. Conversely consumers buying from more conventional channels, such as special‐ ized stores, are looking for a different purchasing and consumption value. They are also looking for convenience.

for a total of 60 in-depth interviews. The following channel member categories were targeted: small producers, community farmers, farmers' market, community groceries, specialty stores, and community chain stores. This provides a representative image of the different distribution systems based on city size and culture (French and English) and helps to uncover how producers/distributors develop marketing approaches to target this market niche. Content analysis of in-depth interviews was conducted. Results of the interviews analysis generated four main theme categories: local foods market, local foods definition, marketing issues, and strategies/approaches developed by distributors/producers (cf. Table 1). All themes are derived from the first research objective and clearly reflect the spirit of the interviews.

**Theme categories Theme Definition**

**Table 1.** List of Generated Themes

12 Food Production and Industry

*5.1.2. Local foods value delivery*

Local foods market Trend New type of consumers: localvores

Market forces Supply Driven by demand

Local food definition Local Local foods product most important attributes

Marketing issues Price Pricing issues related to local food production

Strategies and approaches Communication One to one relationship or individual marketing

several aspect of the value chain and value delivery network.

Education Consumer's education about benefit of alternative foods

Distribution Main store categories where local food products are usually

Definition Confusion regarding organic/natural/local

sold and channel length Product Local foods product most important attributes

Network System of action to develop and enhance the offering

Farmers, producers, and distributors have consistent perceptions of the distribution system and the distribution structure. The respondents interviewed for this study generally agree that the local foods market is growing slowly with a solid base of knowledgeable consumers. This market shows also substantial opportunities. More specifically they mentioned an increasing diversification of local food products and a conservative expansion in the type of distribution channels. This new type of offering is mainly derived from the "failure" of the conventional foods system to offer embeddedness. Producers and distributors argue – almost unanimously – that the market is asking for alternative way of producing, distributing and eating. This makes more sense when considering that the organic market went mainstream and failed on

Arguments put forward by these respondents were related mainly to (i) food mileage and (ii) industrialization of the distribution. Organic food products have failed to carry out value mainly on the second dimension, namely industrialization, and sometimes on both dimensions

Depending on the type of distribution channel considered, findings clearly highlight factors and dimensions that influence consumers' trust when making local food products purchases.

*Specialty Stores:* As far as specialty stores perspective goes (independent stores as well as community specialty chain stores), the corresponding market shows limited growth in terms of variety, price and quality. These stores are able to provide consumers with a relatively larger variety and convenience whereas larger grocery stores are not differentiating their offering. This is mainly related to the value offered in these longer channels: price is crucial; quality being downgraded for competitive economies of scales. Specialty stores managers indicate that it is obvious and clear that the product label is important. Target consumers feel very comfortable knowing what to buy and finding all information they look for. Conversely, the brand name is not important. Consequently, consumers are not looking for an *industrial* or *conventional* value, rather they are looking for a – convenient – *embedded* value.

*Community Grocery Stores:* For community grocery store managers, consumers are less inclined to buy local food branded products or packaged local food products. This is probably more related to the combination of embeddedness, sustainability, and food mileage. Conversely, some consumers are explicitly looking for local food products, as they know that store managers are more approachable. This is a guarantee for quality and counterbalances the lack of brand effect. Here, the value is mainly based on the relationship with the manager.

*Producers/Farmers Market:* When it comes to producers and farmers' markets, interestingly enough, all of them acknowledge that consumer do not trust any labels. They say that consumers would like to get information regarding the products they buy but when they interact with the farmers/producers and discuss the production methods with them, they build a trust relationship that offsets the label value. Hence, the value is based on the production methods. Lastly, most producers and farmers are increasing their local food products sales using traditional sales approaches to market their offering. Farmers and producers do not like to talk about marketing of local foods; this has an *industrial* connotation. Further, being able to expand supply is a big dilemma that translates into controlled supply and limited growth rates. With the growth in popularity of the slow food movement and organic food products, community producers and farmers with small to medium size farms, are managing and controlling this new market niche. It is becoming a sustainable and fair source of revenue. Further, several farmers and producers are selling at farms gate, which considerably lowers their selling price; distribution cost being reduced to zero.

To recapitulate, there is a thin distinction between local food products producers and distrib‐ utors in terms of production and distribution processes, marketing approaches, and market perception of the value offered. Brands definitely do not add any value whatever the type of distribution channel whereas the product label may play a substantial role for some distribu‐ tors. Furthermore, store managers as well as the production methods contribute in creating and communicating the embedded value to localvores.

## **5.2. Consumers' market value**
