Corporations co-opt the local angle

Hoping to capitalize on growing public enthusiasm for all things local, some of the world's biggest corporations are brashly laying claim to the word "local."

This new variation on corporate greenwashing — local washing — is, like the buy-local movement itself, most advanced in the context of food. Hellmann's, the mayonnaise brand owned by the processed-food giant Unilever, has a "Eat Real, Eat Local.” The ad campaign seems aimed partly at enhancing the brand by simply associating Hellmann's with local food. But it also makes the claim that Hellmann's is local, because most of its ingredients come from North America.

It's not the only industrial food company muscling in on local. Frito-Lay's television commercials use farmers as pitchmen to position the company's potato chips as local food, while Foster Farms, one of the largest producers of poultry products in the country, is labeling packages of chicken and turkey "locally grown."

Barnes & Noble, the world's top seller of books, has launched a video blog site under the banner, "All bookselling is local." The site, which features "local book news" and recommendations from employees of stores in such evocative-sounding locales as Surprise, Arizona, and Wauwatosa, Wisconsin, seems designed to disguise what Barnes & Noble is — a highly centralized corporation where decisions about what books to stock and feature are made by a handful of buyers — and to present the chain instead as a collection of independent-minded booksellers.

Across the country, scores of shopping malls, chambers of commerce, and economic development agencies are also appropriating the phrase "buy local" to urge consumers to patronize nearby malls and big-box stores.

The Real Buy Local Movement

In one way, all of this corporate local-washing is good news for local economy advocates: It represents the best empirical evidence yet that the grassroots movement for locally produced goods and independently owned businesses now sweeping the country is having a measurable impact on the choices people make.

"Think of the millions of dollars these big companies spend on research and focus groups. They wouldn't be doing this on a hunch," observed Dan Cullen of the American Booksellers Association (ABA), a trade group which represents some 1,700 independent bookstores and last year launched IndieBound, an initiative that helps locally owned businesses communicate their independence and community roots.

Signs that consumer preferences are trending local abound. Locally grown food has soared in popularity. The U.S. is now home to 4,385 active farmers markets, one out of every three of which was started since 2000. Food co-ops and neighborhood greengrocers are on the rise. Driving is down, while data from several metropolitan regions show that houses located within walking distance of small neighborhood stores have held value better than those isolated in the suburbs where the nearest gallon of milk is a five-mile drive to Target.

In city after city, independent businesses are organizing and creating the beginnings of what could become a powerful counterweight to the big business lobbies that have long dominated public policy.

Surveys and anecdotal reports from business owners suggest that these initiatives are in fact changing spending patterns. A survey of 1,100 independent retailers conducted in January by the Institute for Local Self-Reliance (where I work) found that, amid the worst economic downturn since the Depression, buy-local sentiment is giving local businesses an edge over their chain competitors.

While the Commerce Department reported that overall retail sales plunged almost 10 percent over the 2008 holidays, the survey found that independent retailers in cities with buy-local campaigns saw sales drop an average of just 3 percent from the previous year.

Corporations Take Note

None of this has slipped the notice of corporate executives and the consumer research firms that advise them. Several of these firms have begun to track the localization trend. In its annual consumer survey, the New York-based branding firm BBMG found that the number of people reporting that it was "very important" to them whether a product was grown or produced locally jumped from 26 to 32 percent in the last year alone.
"It's not just a small cadre of consumers anymore," said founding partner Mitch Baranowski.

"Food is one of the biggest gateways, but we're seeing this idea of 'local' spread across other categories and sectors," said Michelle Barry, senior vice president of the Hartman Group. A report published by Hartman last year noted, "There is a belief that you can only be local if you are a small and authentic brand. This isn't necessarily true; big brands can use the notion of local to their advantage as well." Barry explains: "Big companies have to be much more creative in how they articulate local … It's a different way of thinking about local that is not quite as literal."

Wal-Mart, like other chains, has learned that, with consumers increasingly motivated to support companies they perceive to be acting responsibility, tossing around the word "local" is a far less expensive way to convey civic virtue than the alternatives. "Local is one of the lower-hanging fruits in terms of sustainability," explains Barry. "It's easier for companies to do than to improve how their employees are treated or adopt a specific sustainability practice around their carbon footprint, for example."

Rather than making direct claims using the word "local," some companies are pushing marketing messages that work by association. One example that caught Dan Cullen's eye was a CVS television commercial that begins in a Main Street bookshop, following the owner around as she tends to her customers. The bookshop then transforms into a CVS. The bookshop owner is now the customer. The feel is still very much Main Street. "Suddenly the kind of unique, enjoyable, grassroots bookstore experience morphs into a CVS experience," said Cullen. "There's a Potemkin façade that a lot of chains are trying to put up because consumers now want something other than a cookie-cutter experience."

Will Big Local Triumph?

Can corporations succeed in co-opting "local" — or at least so muddling the term that it no longer has meaning? The Hartman Group's Barry thinks that's possible. "For many consumers, these things are not being called into question much. They say, Hey, it's my local Wal-Mart or my local Frito-Lay truck. It depends where you are on the continuum and how you define local, which is a term that is really up for grabs."
Milchen is less concerned about what he calls faux-local campaigns in cities where there is already a strong local business organization.

"It's more of an educational opportunity than a problem, so long as they respond to it," he said. But in places where local enterprises are not organized, he fears these corporate campaigns may succeed in permanently defining "local" for their own benefit. Michelle Long shares that concern:

"That's my fear. People are going to do diluted versions and hold the space so that real campaigns don't get started."

But perhaps local-washing will ultimately make corporations even more suspect and further the case for shifting our economy more in the direction of small-scale, local, and independent.

"I think the fact that the chains are trying to play the local card, in a way makes it easier for us," said the ABA's Cullen. "I think people are going to recognize that these aren't authentic and that's going to make the real thing all the more powerful."

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Stacy Mitchell is a senior researcher with the New Rules Project (www.newrules.org) and author of Big-Box Swindle: The True Cost of Mega-Retailers and the Fight for America's Independent Businesses (Beacon, 2006). Send your examples of local-washing to her at smitchell@ilsr.org.