Foodservice

Food Deserts Go Private

Latest announcements show corporate investment, "government as catalyst"

WASHINGTON -- First Lady Michelle Obama took the stage on Wednesday with Walgreens, Walmart and Supervalu to announce the latest moves in the fight to eliminate food deserts. The announcements--and her guests at the podium--reflected a shift toward more private initiatives amidst a cash-strapped public sector.

(Watch the video below orclick here for a replay of the event. Andclick here for the full transcript.)

The government is acting as "a catalyst, not a funder of first resort," said Bryan Silbermann, president and CEO of Produce Marketing Association (PMA), who was in attendance at the meeting.

"The fact that they shared the stage with corporations was very significant," he said in a press conference call Thursday. As an example, he pointed to another major announcement made during the meeting: The California Endowment has secured $200 million to finance healthy-food projects through the new FreshWorks Fund. Among the funders: health-care provider Kaiser Permanente, JPMorgan Chase and savings bank NCB.

Such investment surely helps the White House-backed healthy foods initiative, as the Departments of Agriculture, Health and Human Services and Treasury wait to see if their proposed $330 million in grant-based financing will come through in the 2012 budget.

Back on the stage, Supervalu, Walgreens and Walmart as well as regional retailers announced a commitment to open or expand more than 1,500 stores in food deserts. The initiative is estimated to serve approximately 9.5 million people and create tens of thousands of jobs.

The announcement did not include any commitments from c-store retailers, though the first lady did allude to them in her speech: "The commitments we're announcing today have the potential to be a game-changer for kids and communities all across this country," she said. "We can give people all the information and advice in the world about healthy eating and exercise, but if parents can't buy the food they need to prepare those meals because their only options for groceries are the gas station or the local minimart, then all that is just talk."

Among the commitments announced at the meeting:
Supervalu committed to opening 250 Save-A-Lot stores over the next five years; Walmart committed to opening or expanding up to 300 stores by 2016; Walgreens committed to expanding its food offering to include whole fruits and vegetables and other healthy options in at least 1,000 stores. "With more than 45% of our stores located in areas that don't have access to fresh food, Walgreens is uniquely positioned to bring more food options to Americans and also provide needed pharmacy, health and wellness services directly in those communities," president and CEO Greg Wasson said in a separate press statement.

Walgreens began addressing this issue last year when it initially opened 10 food oasis stores in Chicago neighborhoods identified as food deserts. These stores increased their food selection by up to 60% by offering a larger assortment of fresh fruits, vegetables, whole grains, lean protein and other healthy meal components to help address the need for greater access to affordable, nutritious food.

Other regional commitments include two Brown's Super Store ShopRite locations in Pennsylvania, 10 Calhoun Grocer stores in Alabama and Tennessee, and one Klein's Family Markets in Baltimore.

While commitments from Walgreens, Walmart and Supervalu are significant, Silbermann emphasized the importance of the community-based entrepreneur in successfully serving a food desert. He pointed to Jeff Brown of Brown's Super Stores in Pennsylvania. "Modern supermarkets that create a link to the community, tell that story, have made a tremendous impact on the eating habits of urban Americans," he said.

Silbermann also alluded to the importance social media and smartphones will soon play in the educational and awareness component of the initiative.

Currently, 23.5 million Americans--including 6.5 million children--live in low-income areas that lack stores likely to sell affordable and healthy foods. Studies have shown that limited access to healthy food choices can lead to poor diets, higher levels of obesity and other diet-related diseases.

Click hereto read the White House press release on the initiative. Andclick here for the companion release, "Retailers Speak Out about Commitments to Provide Millions of People Access to Healthy, Affordable Food in Underserved Communities."

(And for more details on the problem of food deserts and what convenience and on-the-go food retailers are doing about it, read the cover stories in the June issue CSP magazine and the June/July issue of Fare magazine.)

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