Retail Value Chain Contact

3.  Retail Value Chain Program

Fresh food innovation in retail requires every link in the chain to become part of the value-added process. The retailer is an active participant and is key to the fresh food innovation process. It is retailers who mostly determine the role of the supplier and the rate of innovation in fresh food chains. Additionally, the retailer plays a role in the product idea, product development, and launch cycles in fresh food innovation.


Benefits to the retailer encompass:

• Being first to market with product innovations
• Having limited exclusive listing on new products
• Providing a test market for product and process innovations that drive category growth
• Securing sustainable supplies for the entire chain 
• Benefiting from locally-sponsored advertising that supports local growers/producers
• Applying the cost savings to the bottom line, and applying the value chain to other category procurement

Goal: Category Leadership in the marketplace. There is great potential to add value and profitability to new categories through merchandising and value-added products. Value Chain projects are the beginning of a closer and smarter working relationship between the retailer and identified suppliers. Each project has the potential to grow into a long-term relationship. The goal of these relationships is to provide a win for the stores, a win for the supplier, and a win for the consumer.


Program:

• Assist Alberta processors and producers to diagnose and manage strategic relationships in developing their value chain with the retail customer
• Develop retail value chain champions within each major grocery retail chain
• Assist companies to conceptualize strategic projects supporting both product and process innovations
• Provide a link between private sector needs and public sector resources, such as the use of Ministry scientists and the Leduc Food Processing Centre

To view the Fresh Food Innovation Paper that the Alberta Value Chain Initiative was involved in creating, click here.