MONEY

Shoppers trade in big food brands for local, organic

Karen Roberts kroberts@lohud.com

Mike Zollner was headed down the road toward high cholesterol and blood pressure. Then he lost 50 pounds. His answer? Twice-a-week trips to farmers markets.

Mike Zollner and his wife Peilin Zollner from Port Chester shop for cherries at the Mead Orchards booth at the Pleasantville Farmer's Market, June 20, 2015. In the summertime, he buys about 85% of his food items at various farmer's markets in the region.

"I talk to farmers in the markets about what's in season and make delicious healthy food," said Zollner, who is 36 and lives in Port Chester. "I didn't want to go on any medication so I decided to do this on my own."

He's not the only one. In the David and Goliath battle of small and sustainable versus big and corporate, today's food shoppers are spending their money on healthy and fresh, not packaged and processed. The Lower Hudson Valley has seen an increase in farmers markets — 30 in Westchester, Rockland and Putnam this year, up from 10 in 2001, the first year The Journal News started keeping track.Global food companies like Kraft Foods, which has offices in Tarrytown, and Mondelez International, a snack brand company formerly part of Kraft, are feeling the pinch. This week, General Mills made the decision to remove artificial flavors and colors from the last 40 percent of their packaged cereals in response to customer demands.

A June quarterly earnings report from S&P Capital IQ (with data analysis by USA Today) showed a drop in revenue numbers for packaged food and beverage companies in the past year. Companies included in the Russell 3000 index were analyzed showing lower profits than in 2013, in the U.S. and Canadian marketplace. Mondelez was at the top of the list with a 10.2 percent loss.

"I think there's so much more coverage of what's in our food and GMO scandals people are unsure of the bigger packaged food companies," said Suzanne Barish of Rockland Farm Alliance, a group dedicated to preserving Rockland farmland. "I think five years ago people weren't aware of organic and sustainable, but now there's a cultural shift."

Mondelez International spokesman Michael Mitchell said part of the loss in revenue comes from a strong dollar — 80 percent of sales come from outside North America, so a strong economy means a decline in reported revenues. But at the same time, Mondelez is introducing healthier versions of their cookie and cracker products, which include Triscuit, Wheat Thins and Nabisco.

The company has also acquired smaller food producers with brand-name recognition, like Enjoy Life Food featuring Amy's Kitchen, an organic convenience food company, to build on the "good for you" trend.

"We are always looking at the changing needs of our customers," Mitchell said. "And we want to make the products in our portfolio good for you."

Cora Greenberg from Pleasantville looks over the produce at the Little Seed Gardens booth at the Pleasantville Farmer's Market, June 20, 2015. In the summertime, she buys over 50% of her food including meat, chicken and fish, at the markets.

Kraft Foods, too, is trying to woo healthy-minded customers, by taking out the artificial colors from the well-known brand of boxed macaroni and cheese. General Mills is switching to 100 percent whole grains in breakfast cereals.

Peter Rogovin operates Pleasantville Farmers Market. With over 55 vendors, it's the largest farmers market in Westchester and Rockland. He sees the shift in a smarter consumer wanting to know the origins of their food sources. "Farmers markets have created a forum where questions about food can be answered, and it makes people think more about their food," Rogovin said.

But with an issue like local versus conventional food buying—it isn't all black and white. There's no regulation in the local food market.

"Buying local is very difficult to track, because there's no way to aggregate the numbers," said Liana Hoodes, the founding director of National Organic Coalition (NOC), a national alliance supporting farmers, ranchers, environmentalists and consumers involved in organic agriculture. "It's because anyone can call themselves local."

Hoodes said her organization has been following the growth of organic over conventional produce and products since the USDA began labeling organic products in 2002.

"There has been double-digit growth each year, except during the economic downturn in 2008," she said.

The Organic Trade Association (OTA) represents more than 8,500 organic businesses in every state, and tracks the numbers in this growing field. According to the OTA, in 2014 U.S. sales of organic products topped $39.1 billion, up from $31.5 billion the previous year. Conventional food products, by contrast were $718 billion in 2013 (the most recent year available) up from $697 billion in 2012, according to the United States Department of Agriculture (USDA).

"Our latest industry data show robust demand and great opportunity for the organic sector," said Laura Batcha, CEO and Executive Director of Organic Trade Association.

Recent data compiled by SPINS, a market research firm for the organic and natural industry, shows New York City leading the sales number with $847 million in organic sales, with smaller markets like Raleigh, North Carolina totaling $112 million. The growth trend for organic measures almost five percent, outpacing the three percent growth for the total food industry.

"OTA's consumer survey has already found that organic doesn't have any demographic; regional or partisan boundaries," Batcha said.

Zollner, the farmers market shopper, said sure — he pays a little more. But the tradeoff of his good health and the bonus of tasty food is priceless. "The only way to sway big business is by shopping at these smaller markets and every dollar counts. Bigger is not always better."

Twitter: @krhudsonvalley

Mike Zollner from Port Chester checks out the garlic at the Mead Orchards booth at the Pleasantville Farmer's Market, June 20, 2015. In the summertime, he buys about 85% of his food items at various farmer's markets in the region.

Going organic

Farmers markets in the lower Hudson Valley:

2001 - 10

2015 - 30

U.S. sales of organic products

2013 - $31.5 billion

2014 - $39.1 billion