Incentivizing Fruit and Vegetable Purchases at NYC Supermarkets:

A Pilot Project

Nicole Andersen, MS, RDHealth Bucks Project ManagerNYC Department of Health and Mental Hygiene

Agenda

o Background

o Program overview and status

o What’s next and early learnings

Background: Food Insecurity in NYCo Over 1.6 million SNAP participants in NYC

(1 in 5 residents) 1

o On average, NYC adults eat 2.3 servings of fruits and vegetables per day2

o Residents of very high-poverty neighborhoods consume nearly 1 serving less than those in low-poverty neighborhoods (2.0 vs. 2.7)2

1 New York City Department of Social Services Human Resources Administration, HRA Fact Sheet, Sept. 2017.2 New York City Department of Health and Mental Hygiene, Community Health Survey, 2016.

USDA Food Insecurity Nutrition Incentive Grant

o Awarded 4-year (May 2016 – April 2020) USDA grant to expand fruit and vegetable incentives for SNAP participants in NYC

o Grant activities:

▪ Extend Health Bucks SNAP incentive distribution from 5 to 12 months

▪ Participate in a nationwide study comparing the effectiveness of different incentive levels on fruit and vegetable purchases and consumption

▪ Pilot a fruit and vegetable prescription program for SNAP participants at independent pharmacies

▪ Pilot a retail-based fruit and vegetable incentive program for SNAP participants

Retail Incentive Program Overviewo Goal: Increase SNAP participants’ purchase and

consumption of fruits and vegetables

o Program plan

▪ Partner with up to 4 supermarkets to offer SNAP customers incentives on fresh, frozen and canned fruits and vegetables without added sugar, salt or fat and on dried beans and lentils

▪ For every $1 spent on eligible fruits, vegetables, beans and lentils, SNAP customers will receive $0.40 to purchase more of those items

▪ Work with stores’ POS vendor to develop an electronic system for distributing and redeeming incentives utilizing customer loyalty program technology

Request for Proposalso Issued a request for proposals to identify retailers. Eligibility criteria included:

▪ Food retailer with a maximum of 50,000 square feet of retail space

▪ Located in a NYC zip code where at least 20% of the population lives below the federal poverty level

▪ Authorized to accept SNAP and had a least $10K in SNAP sales the prior year

▪ Have at least 50% of retail space for food products intended for home preparation

▪ Sell at least 7 varieties of produce such as fresh, frozen and canned fruits and vegetables and dried legumes

▪ Do not sell or market tobacco products

▪ Use a POS system to process customer transactions and in partnership with the retailer’s POS system vendor, have the capacity to create an electronic system for distributing and redeeming incentives

Store Selectiono Four stores applied to participate in

the program

o Three met the eligibility criteria and were selected

o Stores located in:

▪ Mott Haven, Bronx

▪ Jamaica, Queens

▪ Sunset Park, Brooklyn

Next Steps and Early Learningso Next steps

▪ Execute contracts with stores and their POS vendors

▪ Develop system for electronically distributing and redeeming incentives

▪ Identify items eligible for incentives

▪ Finalize promotional materials

▪ Launch and evaluate program

o Learnings

▪ Work directly with POS vendors

▪ Budget for POS system changes

▪ Be patient

Questions?