Fresh Produce Paradise

When it comes to Georgia and its largest city, Atlanta, one might say their respective economies are peachy.

The state is ranked top in the nation for overall business by CNBC, while Atlanta is one of MSN Money’s 15 hottest U.S. cities and Fitch Ratings, Inc. called it an ‘anchor’ of “one of the largest and fastest growing regional economies in the country.” So, yes, Atlanta business is buzzing—and this is very good news for retail grocers and the fresh produce industry that supplies them.

A COMPETITIVE MARKET
The Metro Atlanta (comprised of Atlanta, Sandy Springs, and Roswell) supermarket scene has had a surge of new entrants and store openings in the past few years, making a crowded field even more competitive and driving some stores out of the market. During the past decade, downtown Atlanta lost Winn-Dixie, Food Lion, and Ingles supermarkets.

Like other cities around the country, among the biggest trends are the consumer quest for organic, ethnic, and fresh locally grown foods. “Atlanta has a very competitive grocery retail market,” comments Brenda Reid, media and community relations manager for Lakeland, FL-based Publix. “We’ve seen new stores enter the market with a farmers’ market appearance, designed to appeal to customers looking for a homegrown products experience.” Reid says small, ethnic stores like bodegas are popping up as well, appealing to Latino customers. And, she adds, “there is no shortage of national chain grocers and big box operators.”

The influx of new stores to the area has been very positive on the produce business as well as for consumers, notes Andrew Scott, director of marketing and business development at Nickey Gregory Company, LLC, which has distribution centers in both Atlanta and Miami. “Shoppers have a lot of options in Atlanta, including a large number of independent Asian supermarkets.” Additionally, he says, “New companies like Sprouts Farmers Market are making positive inroads in Atlanta and the Southeast,” and independent retailers like Food Depot are holding their own.

The biggest trend seen at Nickey Gregory is the demand for locally grown produce, though the Miami location has seen tremendous growth in organics. The company sources in-season fruits and vegetables from local growers in both Georgia and Florida, and Scott deems ‘local’ produce as items supplied from the state in which you conduct business. 

THE BIG THREE
Kroger, Publix, and Walmart rule the roost in Georgia’s $13 billion grocery industry, accounting for about 80 percent of the state’s grocery stores. The three also dominate in Metro Atlanta, where each jockeys for position, holding about a 25-percent market share.

Walmart
Walmart is the low-price leader of the Big Three, and though some analysts believe food and produce sales are falling, the nation’s top bricks-and-mortar retailer is not resting on its laurels. Amidst research that mighty millennials are much less likely to shop for produce at supercenters and clubs, Walmart is evolving.