Local heroes

Toronto’s Leslieville neighbourhood offers a vibrant snapshot of the “buy local” movement. Within a block, consumers can shop at Rowe Farms for meats and produce from Ontario farmers, at Leslieville Cheese Market for fine Canadian cheeses and artisanal foods, and at Brick Street Bakery for goods baked on site. Those seeking one-of-a-kind furnishings with a low earth impact stop in at Fred Baron Handmade Cabinets, while clothing boutiques highlight hip Canadian designers. This remarkable array of local products for sale within a few blocks is utopia for a new breed of conscientious consumers. It’s little wonder that people in the area mobilized to quash a plan to open big-box stores nearby—local is where it’s at.

There was a time when big boxes and globalization looked set to conquer all. But a countervailing trend has begun to take hold. Perhaps it was one too many reports of recalls of Chinese-made toys or pet food; or perhaps it was for-lease signs taking over neighbourhood storefronts. Either way, many consumers started asking questions about the toll that supporting suppliers with far-off headquarters and factories is taking on local communities. While the definition of “local” varies—from supporting area businesses to buying made-in-Canada product—it’s a fast-expanding movement spearheaded by a growing number of people who want to feel good about their purchases.

Andrew Heintzman, CEO of Investeco Capital Corp., a Toronto-based private-equity company that invests in green businesses, says buying locally is poised to follow the lead of eco-conscious living, which over the past decade has moved from the fringe to the mainstream. For those who want in on the resulting opportunities, says Heintzman, “The area that’s the most tangible is the food sector.” But there’s also growing interest in sectors as diverse as energy generation, apparel, furniture and cookware. Heintzman says products that combine local with environmental or health benefits are winning propositions.

Businesses rooted in the “buy local” philosophy need not be mom-and-pop operations. The Leslieville outlet of Rowe Farms, a Guelph, Ont.-based seller of eco-friendly, locally grown and antibiotic- and hormone-free products, is one of six in the Toronto area. And Investeco, which has a controlling interest in Rowe, recently raised $1.32 million to fund further growth for the chain.

Rowe CEO James Cooney says the key to making buying local work “comes down to taking control of your supply chain. We seek out elite farmers, build direct relationships and teach them our farming principles. I can tell you where every single chicken in our stores comes from.”

Cooney says communicating Rowe’s principles to customers is essential. Its stores emblazon its “Quality with a conscience” tag line on a mural detailing what Rowe means by phrases such as “locally grown” and “conscientiously farmed.” And a map at the checkouts highlights the name and location of every farmer Rowe buys from.

It’s not just people in trendy big-city neighbourhoods like Leslieville who prefer to buy locally. A study by Coquitlam, B.C.-based Robbins SCE Research found that 74% of Canadians are willing to pay up to 14% more for consumer products made in Canada—all other things being relatively equal.

Isabelle Remy, founder of BuyCanadianFirst.ca cites an Angus Reid survey showing that 43% of respondents want to buy more Canadian-made products but have trouble finding them. Her Montreal-based website addresses this by connecting consumers with 600 member Canadian firms that sell everything from food to rubber boots and electronics. Popular categories on the site include allergy-sensitive foods, apparel and eco-friendly furniture.

“There is fabulous opportunity in anything baby-related because of safety,” says Remy, adding that cookware, dishes and glassware are also popular—due, in part, to concerns about lead and Bisphenol A.

Some observers warn against counting too heavily on “buy local” sentiment. Alan Middleton, a marketing professor at York University’s Schulich School of Business, acknowledges that “local is sexy right now.” But, he says, entrepreneurs’ first task remains developing superior products and services: “Don’t count on [your product or business] being Canadian; count on it being better. Then add ‘Canadianness’ as a support, not a primary selling point.”

But Heintzman is more bullish on the idea of buying local, which he calls “a powerful thing to hang your brand on.” Heintzman sees a bright future for firms that target what he sees as not so much a demographic as a psychographic group.
This psychographic of conscious consumers is alive and spending in Leslieville, where bulging reusable shopping bags illustrate the burgeoning allegiance to local ware and fare.