**3.1. Food production, operations size and distribution logistics**

It is worth noting that the alternative food *movement*, which began as an alternative style of production among small farms looking to reduce their environmental footprint and to differentiate their products from commercially produced foods, is going mainstream. Produc‐ tion methods, operations size, and distribution are key here. To this end sustainable food production *should* combine best environmental practices, preservation of natural resources, animal welfare standards while ensuring no use of genetic engineering, pesticides, additives, or fertilizers. Overall, sustainable alternative production systems deal with small and control‐ led size farming. This limits the distribution of such productions to the local or regional markets. At this time production of such farms is rather limited amounting to a few hundred tons. Such a volume will be of little interest to mainstream grocery chains. Distribution logistics and costs would consume a significant part of the producers/farmers margins.

Industrial farming addresses efficiently and effectively the challenges related to the cost and logistics of moving produced foods to national and global markets. Conventional food value chain applies an important downward pressure on price leading to the issues of profitability and productivity. As a consequence, some alternative foods such as organics moved slowly toward large-scale operations. This has resulted, for some small farmers concerned with the philosophical aspects of organic production, in diminished credibility of the organic standard and a refusal to participate. It has also hardened the value chain against entry by these small farmers. Hence, the challenge that the alternative food system is facing is a gap that spans between the consumerism/producerism system in place, the current food chain, and the alternative value delivery network/value chain. Therefore, distribution flows and logistics should be explored and studied.

In conventional food systems there exists between producers and consumers of food products a series of handlers involved in the processing and distribution at various stages of the journey from farm to plate. Traditional retail, with its focus on profit, seeks consistent supply of products. Imports from warmer climates offer this consistency. We see California and Mexico lettuce occupying shelves year-round because, for reasons of efficiency, retailers prefer to deal with a single supplier rather than displace the year-round supplier with a seasonally-available product. This is another major factor, and one that could mitigate the seasonality of foods. Large-scale farming is sustained by important economies of scale while small-scale farming involves higher production costs due to limited operations leading to higher selling prices. As a result, there is a wide variety of product classifications depending on the production methods and thus, the operations size. This in turn gives raise to 2 distinct distribution systems. Long channels, eg. retail chains, that add value through price and high distribution intensity, and short channels, eg. direct from producers, that add value through their production methods and sustainable practices. Conventional distribution channels, characterized by a longer channel where consumers do not see and interact with the producer and where the information about food is limited, is targeted toward consumers that look for a one-stop grocery shopping experience [11, 12]. Unlike organic foods, that are observing a decline in consumers' trust, alternative food options are using mechanisms based on small-scale operations and direct channel distribution. Direct channels such as the farmers market is targeted toward consumers that look to interact – socially - with the producers [22], ask them questions about their production methods, food origin and variety, and cooking tips. Distinct trends are thus observed in the alternative food distribution.

## **3.2. Consumer marketing theory and alternative foods**

In an environment of distrust toward the new food chain, addressing the issue of unsustain‐ ability from the demand side by ensuring product quality and product knowledge, labeling or setting proper pricing and communication strategies does not seem to be enough [11, 12]. Conversely, building trust in the food supply requires tools such as quality and non-profita‐ bility-based production processes.

The traditional marketing approach and specifically consumer marketing theory are not sufficiently prepared to handle the advent of new types of consumers such as organic food (OF) consumers, localvores, or slow food movement consumers. These consumers are looking for more than a product, i.e., they are looking for value products [1]. Moreover, the literature to date is of great interest but offers little insight into the motives to buy alternative food products. Growing consumer demand for alternative food products has been attributed to consumers' concerns regarding nutrition, health, the environment, and the quality of their food [8, 14]. Further, various studies conducted in Europe and the US have explored the consumer behavior and have tackled the issue of determining consumers' motivations and preferences for organic food products and local food products [26, 28]. Although some consumers are environmentally conscious, most studies confirm the predominance of egocentric values like health, attitude towards taste, and freshness that influence alternative food choices [8, 28].

Conversely, studies dealing with the concept of environmentally friendly products represent a mature research field covering different aspects of the marketing process namely, consumer behaviour, marketing mix, and marketing strategies. It is also interesting to shed the light on similarities and differences between green products and alternative food products. The issue of psychographic and personal variables in consumer behaviour dealing with environmental or green products has been dealt with by many researchers [2, 3, 5]. Hence, some of the variables that might shape the buying behavior of alternative food products are (i) perceived consumer effectiveness: consumers' believe that the efforts of an individual can make a difference in the solution to environmental problems [2, 3, 5], (ii) ecological concern: consum‐ ers' level of ecological concern is related to their willingness to purchase green products, (iii) locus of control: refers to consumers' perception about the underlying main causes of events in their behavior [21], and (iv) faith in others [3].

## **3.3. Motivations to buy local**

a result, there is a wide variety of product classifications depending on the production methods and thus, the operations size. This in turn gives raise to 2 distinct distribution systems. Long channels, eg. retail chains, that add value through price and high distribution intensity, and short channels, eg. direct from producers, that add value through their production methods and sustainable practices. Conventional distribution channels, characterized by a longer channel where consumers do not see and interact with the producer and where the information about food is limited, is targeted toward consumers that look for a one-stop grocery shopping experience [11, 12]. Unlike organic foods, that are observing a decline in consumers' trust, alternative food options are using mechanisms based on small-scale operations and direct channel distribution. Direct channels such as the farmers market is targeted toward consumers that look to interact – socially - with the producers [22], ask them questions about their production methods, food origin and variety, and cooking tips. Distinct trends are thus

In an environment of distrust toward the new food chain, addressing the issue of unsustain‐ ability from the demand side by ensuring product quality and product knowledge, labeling or setting proper pricing and communication strategies does not seem to be enough [11, 12]. Conversely, building trust in the food supply requires tools such as quality and non-profita‐

The traditional marketing approach and specifically consumer marketing theory are not sufficiently prepared to handle the advent of new types of consumers such as organic food (OF) consumers, localvores, or slow food movement consumers. These consumers are looking for more than a product, i.e., they are looking for value products [1]. Moreover, the literature to date is of great interest but offers little insight into the motives to buy alternative food products. Growing consumer demand for alternative food products has been attributed to consumers' concerns regarding nutrition, health, the environment, and the quality of their food [8, 14]. Further, various studies conducted in Europe and the US have explored the consumer behavior and have tackled the issue of determining consumers' motivations and preferences for organic food products and local food products [26, 28]. Although some consumers are environmentally conscious, most studies confirm the predominance of egocentric values like health, attitude towards taste, and freshness that influence alternative food choices [8, 28].

Conversely, studies dealing with the concept of environmentally friendly products represent a mature research field covering different aspects of the marketing process namely, consumer behaviour, marketing mix, and marketing strategies. It is also interesting to shed the light on similarities and differences between green products and alternative food products. The issue of psychographic and personal variables in consumer behaviour dealing with environmental or green products has been dealt with by many researchers [2, 3, 5]. Hence, some of the variables that might shape the buying behavior of alternative food products are (i) perceived consumer effectiveness: consumers' believe that the efforts of an individual can make a difference in the solution to environmental problems [2, 3, 5], (ii) ecological concern: consum‐ ers' level of ecological concern is related to their willingness to purchase green products, (iii)

observed in the alternative food distribution.

bility-based production processes.

8 Food Production and Industry

**3.2. Consumer marketing theory and alternative foods**

Consumers make personal decisions on food choices every day. Consumer preferences can have both extrinsic and intrinsic values. For example, extrinsic values would include price and brand, whereas intrinsic would include taste, quality, and freshness. In reviewing literature on why individuals buy local food products, there appears to be both private needs and altruistic intentions that motivate an individual to buy local. The three main benefits of local food systems are the environmental, economic and social benefits received. *Environmentally*, local food products' sales reduce greenhouse gases because the food has reduced transporta‐ tion miles (reduced carbon footprint). This also results in better food quality and fresher food availablility. *Economically*, local food systems help create local jobs, stable regional employment and provide better return on products (40-80% increase) through direct marketing at farmers' markets. *Socially*, key benefits are achieved through greater trust and connectedness between consumers and farmers. Many consumers are interested in local food products because of the perceived benefits of freshness, taste, and quality [18]. Because local products can potentially reach their consumers quicker, there is also a perception of a higher nutritional content.

In a study of food marketing consultants (Tellstrom et al. (2006), local food is described as "*an invention to reflect what urban consumers perceive about the idyllic rural countryside*". A common theme however, is the importance of social interactions, as well as food freshness and the ability to support local farmers. Several other factors come into play such as food safety, quality, and health benefits. There is also evidence that some consumers are making civic choices and society-focused statements with their purchase decisions [17]. Rural sociologists argue that some local food consumers are not trading off and transacting on products, but rather they are seeking shared product values and engaging in reciprocal and trustful relationships with farmers and food producers [25]. According to an IPSOS Reid Survey of 2006 at Ontario Farmers Markets revealed that 95% of shoppers felt that "*buying products produced in your community is either very important or moderately important*". More importantly, 91% of the Ontarians surveyed indicated they would buy locally produced food if they could find it in their grocery stores.
