Uncategorized

Locavore, how behavior is disrupting a Trillion dollar market in food retail

Behavior is the pivot of opportunity and changing behavior disrupts incumbents creating whole new industries.  This is a great opportunity to connect 450m small farmers to mom & pop retailers and then to consumers.

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1. Trust disrupted Organized hospitality – Airbnb

2. eCommerce disrupted Retail – Amazon, eBay, et al

3. Mobile disrupted Online – WhatsApp, Uber

4. Custom disrupted Fixed Menu – Dell

The list is changing very fast as behaviors are changing too.

Locavore  as defined in Wikipedia. “A locavore is a person interested in eating food that is locally produced, not moved long distances to market”http://en.wikipedia.org/wiki/Locavore

Why is Locavore a behavior that is leading to change? The behavior of local is perceived for a causal impact on better quality, better choice and better economics. This is so significant that according to a AT Kearney report the locavore opportunity is significant enough that big retail is looking at this changing behavior as disruptive to the core business.

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http://www.atkearney.com/documents/10192/709903/Buying+into+the+Local+Food+Movement.pdf/68091049-b5c2-4d2a-a770-ee5b703da8fd

From the USDA report “The Role of Food Hubs in Local Food Marketing”, the definition of local food is below.

What is a local food?
The term “local food” is used often, and with various and sometimes contradictory interpretations. The new Oxford American Dictionary defines a “locavore” as a local resident who tries to eat only food grown or produced within a 100-mile radius. Likewise, many consumers and policymakers define local as being within a 100-mile radius of one’s home, while others feel that 200, 300, or 400 miles can still be considered a local food. Eventhe Federal Government varies its definition of local:

• The 2008 Farm Act defines a “locally or regionally produced agricultural food product” as one that is marketed less than 400miles from its origin.”

• The Food Safety Modernization Act, enacted in January 2011, defines local as food purchased within 275 miles or the sameState where it was produced.

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http://www.rurdev.usda.gov/supportdocuments/sr73.pdf

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“Local is the most influential product claim in grocery.” New Hope Natural Media Survey
http://www.ams.usda.gov/AMSv1.0/getfile?dDocName=STELPRDC5106618

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Behavior is a real disruptor. The real behavior is the lack of trust which is seen as trust of produce, convenience and prices which are the real opportunity. Leverage this behavior and you have a disruptive opportunity. We as a team are working on precisely just this at the Stanford Peace Innovation Lab and will keep you updated or just watch this space.

Why is this behavioral change leading to new business models and disrupting profit-pools? It is the small farmers, mom & pop stores and thus consumers, being disaggregated from opportunity for availability, accessibility and affordability.

450M SMALLHOLDER FARMERS AND A $450 BILLION MARKET! IT’S ALL MOBILE, SENSORS, ANALYTICS AND MARKETPLACES.
https://gerardjrego.com/2013/12/03/450m-smallholder-farmers-and-a-450-billion-market-its-all-mobile/

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KILLER APP! FRAGMENTED MARKETS, CROWDSOURCING BUSINESS MODELS AND MOBILITY
Why are fragmented markets the next big thing?
https://gerardjrego.com/2013/10/15/killer-app-fragmented-markets-crowdsourcing-business-models-and-mobility/

THE MOST VALUABLE COMPANIES – MOM AND POP STORES, POSTAL SERVICES AND DABAWALLAS IN MUMBAI
https://gerardjrego.com/2013/12/08/the-most-valuable-companies-mom-pop-stores-postal-services-dabawallas-in-mumbai/

RETAILGRID! BUSINESS PLAN FOR FIRST MILE “COMMERCE” DISRUPTION, IS THIS THE NEXT MILE!
https://gerardjrego.com/2013/09/16/retailgrid-business-plan-for-first-mile-commerce-disruption-is-this-the-next-mile/

Categories: Uncategorized

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