Incorporating businesses owned by underrepresented groups and emerging brands into buying plans is an important area of focus for retailers and distributors alike. Lori Rodriques, supplier diversity manager at UNFI, and Carla Hendon, director of supplier diversity at Meijer, spoke about the strategies their respective companies implement to introduce and uplift diverse-owned brands during SFA’s Buyers’ Market webinar, “Diversity Buying: How it Works.”
“The exciting thing about diverse suppliers is the innovation that they bring to the table,” said Hendon. Rodriques agreed, adding that the consumer is demanding diversely owned products and the innovation that goes with them. They want to know the stories behind the makers that craft the products, and retailers and distributors must answer the call.
Hendon shared Meijer’s stance on diverse buying: “Our mission is to enrich the lives of the communities we serve, and supplier diversity is a vital part of that mission for us. For 2023 our focus is to continue the work we began—to continue to grow and develop our diverse partners.”
She explained that supplier diversity has evolved over the years. In 2020 it centralized its supplier diversity and data-gathering efforts into one department, rather than each diversity initiative being operated by a different team. That year, it also launched its first vendor summit to source from diverse suppliers. Fast forward to this year, the vendor summit has transformed to also target local, diverse suppliers that operate in the chain’s footprint.
Hendon shared that the category review process for diverse suppliers can take anywhere from four to 12 months, and often begins with the company’s Road Map to Retail Education Series, which outlines everything a brand needs to know to get approved and stocked by Meijer. After that, brands are required to be registered in RangeMe and eventually meet with a buyer, if selected.
Rodriques also shared UNFI’s vision for supplier diversity.
“UNFI is on a journey of building a foundation for a best-in-class program for supplier diversity,” Rodriques said. “Our ultimate goal is to be in the billion-dollar round table,” a recognition that honors corporations that spend at least $1 billion with diverse-owned suppliers.
To achieve this goal, the company has worked over the last two years on various projects to include more diverse-owned businesses. Once brands join the company, they are given many free opportunities to be featured and advertised, such as in Supplier Spotlights on social media or ads, inclusion in a supplier diversity sell sheet, and promotional opportunities to make them attractive to UNFI’s customers.
Hendon and Rodriques stressed the importance of diverse certifications. Where the certification comes from can also be important as diverse buying programs vary in which certifications they will accept in their program. Although it isn’t required to get onto shelves, it can help make the journey easier.
To learn more about diversity buying, watch on demand in the SFA’s Learning Center.
Related: Diversity Buying 101: Q&A With UNFI's Rodriques; PepsiCo Launches Hispanic-Owned Brand Accelerator