As the general manager of Carver’s Harbor Market in Vinalhaven, Renee Jones is used to the high prices charged by her distributors. But even she was shocked when the prices of some food jumped a dollar in the space of a week.
“I had to check the books,” Jones said.
Other island grocers could commiserate. At the Carrying Place Market on Swan’s Island, grocer Sheena Kennedy recently watched the price of a half-gallon of ice cream jump by more than a dollar in a week. It’s not just food, but oil and cigarettes that the grocers sell, as well. At Boathouse Bottle and Beverage on Long Island, Scott Wood has been selling cigarettes for 45 cents below the recommended price, largely because he can’t fathom posting another price increase.
“I’ve been having a hard time going over $5.95,” a pack, Wood said.
Islanders, both grocers and customers, are grappling with the same skyrocketing food prices (and high cigarette taxes) as those on the mainland. But islanders may be feeling it more acutely. Traditionally, island grocers must pay a premium to have food shipped out to their stores; one grocer pegged it at 4 percent. But the price of the diesel fuel used to transport goods to the islands has risen to well over four dollars a gallon on the mainland, and that cost is being passed onto small grocery and convenience stores throughout the Maine islands. A worldwide hike in food prices, due to higher fuel costs and increased production of biofuels, is also impacting islanders.
Island grocers are already starting to notice a change in buying habits among loyal customers. Jones said her customers are buying more generic-brand food, choosing cheaper cuts of meat, and perusing sales fliers with vigor. Kennedy said customers have been stocking up on whatever’s on sale. In fact, Kennedy believes the tendency of many islanders to stock up has temporarily insulated them from the current food crisis: they’re still living on cheaper-priced food.
“I don’t think it really has impacted yet,” she said.
Amie Joseph, executive director of the Maine Grocers Association, said all grocers have been affected by rising food and energy costs, from the chains to the small food stores. But chain stores might be able to weather the storm better. Some, like Hannaford Brothers, have been investing in energy-efficient technology to cut costs (WWF April 2008). They also have greater buying power and the ability to absorb price increases. But smaller grocers don’t have either the buying power or the extra capital to invest in better refrigeration systems, and they’ve been hit hard, said Joseph.
“They’re having trouble staying afloat,” she said.
Island grocers are starting to change their own buying habits. Kennedy said she’s more careful not to overstock, often buying two or three of a given item instead of a whole case. Kennedy also has found that some of the prices for local food haven’t risen as sharply as the price of national brands. In fact, the recent price hikes have narrowed the price gulf between local/organic meats and national meats, prompting adventurous customers to think about going organic for the first time.
“The more local we can stay, the better,” Kennedy said.
Ultimately, higher food costs may drive islanders off-island to shop for basic necessities, but even in this cost-saving venture they will face higher prices; the Maine State Ferry Service has implemented a 12 percent price increase for ferry tickets to the mainland effective June 1, and private ferry services are raising rates just to keep up with high diesel fuel costs.
Grocers don’t like the increased ferry rates any more than anyone else, but they hope it will help people think twice before doing all their shopping off-island. Both Jones and Kennedy said the increased fuel prices and the hassle of shopping on the mainland during the summer season make the savings of mainland shopping not worth it.
But many islanders adamantly disagree, even if some don’t want to go on record to say it. Pete Pedersen, once a year-round islander and now a summer Vinalhaven resident, said he’s always supported island stores, but this year he’s going to make a shopping list of what to bring from the mainland.
“With the prices, I don’t think I could shop exclusively on the island,” he said
Pedersen believes many islanders will shop nearly exclusively on the mainland out of economic necessity, and he fears that will mean some island grocers will close for year-round business. That trend may already have begun. Though not a grocery store, the Port o’ Call general store in Vinalhaven will close during the coming winter for the first time. Store owner Bob Candage said he just can’t compete with mainland big-box stores, and he’s lost business ever since the area Wal-Mart and Lowe’s opened on the mainland.
“It’s been a steady decrease,” he said. “I don’t blame people.”
If the price of food continues to increase, it could pose big trouble for grocers, said Kennedy. Her family opened their store just last year, but if the price increases continue she can’t guarantee the store will remain open.
“You never really know,” she said.
But what may see island grocers through the current food crisis is that islanders’ hunger doesn’t always correspond with ferry schedules, and islanders will want to keep a local grocery store open for just such occasions.
“People will always need food,” Kennedy said.