Riad Beladi: Thank you for joining us, John. To begin, can you share a bit about Kroger’s approach to sourcing fresh produce?
John Ashley: Absolutely. At Kroger, our approach has always been about ensuring top quality and consistent supply, which is why we use a blend of national and local sourcing. We believe that this balance enables us to offer variety and freshness, as well as build partnerships with regional farms and suppliers that align with our standards.
Riad Beladi: When deciding between national and local sourcing, what factors come into play?
John Ashley: Several factors influence these decisions. For national sourcing, it’s mainly about volume, consistency, and the ability to meet demand across all our stores. But with local suppliers, we focus on unique, regional products that resonate with our customers and provide freshness. Seasonal availability also plays a huge role—when something’s in season locally, we prioritize those suppliers to offer the best quality.
Riad Beladi: Are buying decisions centralized at Kroger, or do individual stores have some autonomy?
John Ashley: Kroger’s buying is generally centralized to maintain consistency and control quality across locations. However, certain regional or seasonal products allow for more localized decisions. For instance, stores in California may carry produce from nearby farms that wouldn’t be available in other states. But overall, the central buying team works hard to ensure each store reflects local tastes within a standardized framework.
Riad Beladi: How do relationships with suppliers influence purchasing decisions?
John Ashley: Relationships are vital. Long-term suppliers know our expectations and share our commitment to quality. For us, it’s about building trust and reliability, especially with national suppliers. With local farms, we engage more directly and often visit to see their practices firsthand. This relationship-based approach helps us maintain high standards and adapt to changes quickly.
Riad Beladi: Lastly, has there been a shift in sourcing strategies in recent years, especially given changes in consumer preferences?
John Ashley: Definitely. Consumers are more conscious of sustainability and where their food comes from, so we’ve focused on expanding our organic and locally-sourced options. We’re also considering carbon footprint, so sourcing closer to store locations when possible is a priority. This shift aligns with Kroger’s sustainability goals and consumer demand for transparency in the supply chain.
Riad Beladi: Thank you for these insights, John. It’s clear that Kroger’s approach to sourcing fresh produce is as thoughtful as it is strategic.