Local Food Marketplace foodhubs - Wisconsin Local Food … e-commerce and supply chain technology company serving food hubs local food ... 2013 by Local Food Marketplace, LLC. ... of local food is sold via . B2B

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An e-commerce and supply chain technology company serving food hubs & local food distributors Laura Theis laura@localfoodmarketplace.com © 2013 by Local Food Marketplace,…

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An e-commerce and supply chain technology company serving food hubs & local food distributors Laura Theis laura@localfoodmarketplace.com © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. mailto:laura@localfoodmarketplace.com Overview Introduction Overview & Potential of Food Hubs Current Landscape Food Hub Lessons © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. About Local Food Marketplace E-commerce storefront & branded mobile app Customized website & content management system Supply & distribution management solution © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. LFM: Now serving over 60 customers in 20+ states • Team of food hub veterans including founders • Serve 60+ online markets & food hubs in 20+ states • Helped 40+ new markets launch © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Growing Demand for Local Food • 10‒15% growth in local food per year • Current local food sales = ~$10B • Unmet local food demand ~ $70B • 75% of local food is sold via B2B * All figures from USDA or research derived from USDA data © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Challenges in local food systems Grocers & large scale buyers need consistent and reliable suppliers © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Challenges in local food systems Grocers & large scale buyers need consistent and reliable suppliers © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Challenges in local food systems Small and medium suppliers offer inconsistent supply © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Challenges in local food systems Small and medium suppliers offer inconsistent supply © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Challenges in local food systems Or they have everything ready at once © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Challenges in local food systems Or they have everything ready at once © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Unmet local food demand Summary Excess food during oversupply Unstable prices Profits decrease Problems of inconsistent supply lead to: Shortages during undersupply © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. What Food Hubs Provide Food Hubs build the “connection” through four core activities: • Aggregation • Distribution • Storage • Processing © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. What food hubs provide Consistent supply that meets demand Prices are stable Profits increase © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Average annual sales Number Characteristics Small & Startup Food Hubs Under $100k ? Lots! • B2C or startup B2B • JIT inventory • Minimal infrastructure Medium & Large Food Hubs $3.7M 236 • B2B • Production planning • Food safety traceability • Warehouses & trucks Food Hubs - Types © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Food Hubs – Sales Channels • Most larger food hubs serve wholesale • Multi-channel sales are a big expansion opportunity Source: internal research by LFM 2013 B2B 42% B2C 36% both 22% Food Hubs by Market Model B2B B2C both © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Food Hub Lessons © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Food Hub Lessons Start-Up Stage • Building Relationships getting buy-in from producers! networking with customers • Use Existing Resources work with partners in the local community seek advice from other startups and networks © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Food Hub Lessons Medium Size • Maintaining Relationships continuing to check in on producers assessing customer satisfaction • Managing Resources focus on your core business pay attention to employee turnover • Streamline your operations expanding requires new technology, equipment, infrastructure to manage growth © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Food Hub Lessons Large Operations • Accessing multiple channels segment the customer base diversify & add services • Increasing employee efficiency coordinate closely with your staff duplicate resources where necessary © 2013 by Local Food Marketplace, LLC. All rights reserved. No part of this document may be reproduced or transmitted without prior written consent of Local Food Marketplace, LLC. Slide Number 1 Overview About Local Food Marketplace LFM: Now serving over 60 customers� in 20+ states Growing Demand for Local Food Challenges in local food systems Challenges in local food systems Challenges in local food systems Challenges in local food systems Challenges in local food systems Challenges in local food systems Summary What Food Hubs Provide What food hubs provide Food Hubs - Types Food Hubs – Sales Channels Food Hub Lessons Food Hub Lessons �Start-Up Stage Food Hub Lessons �Medium Size Food Hub Lessons �Large Operations