Regionality on the up

Following organic, ‘regional’ is one of the main criteria for ethically motivated buying behaviour. Whereas the organic sector is well structured thanks to state guidelines, associations, manufacturers and wholesalers, there are practically no overarching regulations for the regional sector. Initiatives at ground level and individual manufacturers have to rely on their own judgement when it comes to marketing. A conference to be held at the end of June in Fulda aims to link the various regional movements and discuss a common logo. A study in Hamburg, that appeared at the beginning of 2011, sets out preconditions and opportunities for improving the marketing of regional products. (Picture: The big R in a store belonging to the cooperative Landwege Genossenschaft in Lübeck stands for Regionality)
In the invitation to the first national meeting of regional marketing initiatives on 29 June 2011, it says: “In the regional sector we’re already seeing the first black sheep who are inflating the concept of ‘regional’ and using it to mislead and are sometimes applying it without any justification, which makes the work of initiatives that have credibility much more difficult. This is why the national association of regional movements is demanding uniform criteria for regionality and the introduction of a regional logo that is recognised nationwide – a kind of regional MOT. This means that regional products would gain in terms of credibility and consumers, and the many regional marketing initiatives that operate with integrity would be protected. The new organization of this emerging sector addresses both organic and conventional businesses, associations and marketers. (Picture: The organic store Marktladen in Tübingen labels regional goods as “from our locality”)

The problem is that there are no legal guidelines controlling the use of the term ‘regional’ in the marketing of food products. Also, the perception of consumers and retailers who sell ‘regional products’ of what actually constitutes ‘regional’ varies hugely. Whereas some people consider a distance of 20 to 50 km to be regional, wholesalers in particular understand regional to mean much bigger areas such as one or several of Germany’s federal states. Consumers have to look at goods very carefully or ask the retailer precisely what is meant. “Because there is no legal basis there is hardly any chance of taking legal action against the misuse of ‘regional’ in advertising,” the regional movement states in its announcement of the conference in Fulda. (Picture: Landmarkt is the name of an initiative in Hessen that markets products via Rewe stores in the Frankfurt area)

A recent study of the Hamburg organic market (Strukturdaten Hamburger Öko-Markt) by Dr Heike Kuhnert, Gesine Behrens and Professor Dr Volker Beusmann – commissioned by Hamburg’s department of economic development – examines the possibilities of targeted political promotion of regional marketing. As the authors say: “The importance of statements in marketing that refer to the region is increasing and it finds expression in the growing use of marketing concepts in the conventional trade whose adverts specifically mention regionality or regional producers.” Examples are Lidl (“A piece of our home region”), Edeka (several concepts in various regions such as “My region” in North-Rhein Westphalia) or Coop (“Our north country”). (Picture: Meat and sausage counter with labelled regional products)

A regional concept that has been successfully used for several years is the organic brand “Von Hier” of the regional chain Feneberg. “Von Hier” food products have to be produced within 100 km (as the crow flies) of Kempten (in the border area decisions are made on a case by case basis). Going beyond the joint regional marketing of the association of wholesalers called Die Regionalen, individual wholefood wholesalers have developed their own regional marketing concepts, examples being the project “Bio Regional” by Ökoring Handels GmbH near Munich or “Bio von Hier” by Kornkraft Naturkost GmbH. (Picture: Feneberg brand “Von Hier”)

The one thing all these concepts have in common is the fact that there is no underlying agreed definition of ‘region’ or ‘regional food’. Only in exceptional cases do we find a definite regional demarcation (in kilometers or a federal state). In contrast, the common factor in a number of concepts – among others “Organic regional is first choice” by the wholsalers association Die Regionalen – is the naming of producers or manufacturers to create transparency through the value added chain. It is then up to the customers to decide whether the products satify their idea of regional origin.

On the basis of the results regarding the concept of regionality from this and preceding studies, the authors conclude that a blanket definition of regional food – similar to a blanket definition of organic food – is not a sensible approach and in practice impossible to implement. As the basis for creating policy in Hamburg they propose a definition of the maximum demarcation for ‘regional food’ as the borders of the northern federal states of Lower Saxony, including Bremen, Schleswig-Holstein and Mecklenburg-Vorpommern. Within these limits the maxim that could apply when it comes to involving interested companies in regional marketing initiatives or projects is “as near as possible”.

Regional trading needs arguments highlighting the benefits: surveys of the sourcing and sales structures of organic players in Hamburg all show that many companies have a good level of regional structures in place. Also, a big majority of those in the survey said that regionality in sourcing and sales was important or very important.

However, regional suppliers or regional products must offer benefits that go beyond simply being of regional origin. Regionality must have a benefit for economic players that outweighs the perceived or actual additional costs or constraints. They range from demand-led arguments about obstacles in organization to the lack of a need to change because of satisfaction with the existing situation. Ultimately, it is very much a question of an entrepreneur’s business orientation and of personal preferences that decide the importance of regionality and whether targeted decisions are taken to go in this direction.

1. Possible benefits of regional marketing:
   

- Strengthening the competitive position of a company (image, entering a market with customers who appreciate regionality)
- Customers willing to pay higher prices
- Shorter distances save costs
- Quality advantages (for example freshness) from shorter distances
- Higher product safety through knowing suppliers personally