Stretching SNAP Dollars: How Houchens Food Group is Making Nutritious Milk More Accessible 

In a time when food insecurity continues to challenge communities across the country, Houchens Food Group (HFG) is stepping up with a powerful initiative aimed at making nutritious food more accessible to families in need.

Through a collaborative effort with Auburn University and the USDA, the company is launching a milk discount program, Add Milk!, that offers up to a 50% discount on fat-free and 1% milk to SNAP recipients across its network of stores.

First Steps

The journey to bring this program to life began with a press release from Meijer, a national retailer participating in the same initiative. That press release landed on the desk of Houchens Senior Director of Marketing and Communications Shannon Clark with a simple note: “How can we participate?” From there, the wheels were in motion.

The first step was connecting with the right people. Jimmy Wright, owner of Wright's Market in Opelika, Alabama and IGA retail support specialist, connected Clark with Kara Newby at Auburn University’s Hunger Solutions Institute. Auburn, which administers the USDA-supported Healthy Fluid Milk Incentives (HFMI) program through grant funding, became a key partner in helping Clark navigate the complex application process.

Implementation

"We first partnered with Auburn's Hunger Institute to be written into the FY 2024 grant proposal," Clark explained. "This included providing our location list, drafting a letter of support for the program, and researching SNAP participation. We then heard the good news that Auburn’s proposal had been accepted."

But approval was just the beginning. The next hurdle was technical: integrating the discount into the company’s point-of-sale (POS) systems. With multiple POS platforms across their independent stores, this was no small feat. Thanks to the efforts of IT team members Amanda Benson and Brent Benton, custom code was developed to identify qualifying SNAP transactions and apply the discount automatically.

“It was an amazing example of cross-functional leadership,” Clark shared. “They took time out of their already full plates to make this work.”

Navigating Legal and Logistical Challenges

Another layer of complexity came from state-specific milk laws. In three states, Clark had to contact milk boards to explain the program and ensure it wouldn’t create unfair competition. Once approvals were secured, the team moved into the testing phase, finding pilot stores and launching the program in 25 locations.

The testing phase in the first locations was successful, and HFG then moved forward with their target bringing all stores on board by the end of June.

"Providing opportunities for our customers to stretch their SNAP dollars and access healthy food options is an immense value," Clark explained. "We have ramped up our messaging to customers across our stores and are excited for customer engagement."

Now, after nearly a year of planning, testing, and refining, the program recently went live across all Houchens locations in late June, complete with signage kits.

Houchens Senior Director of Marketing & Communications Shannon Clark, left, stands with International Dairy Foods Association President & CEO Michael Dykes, Senator John Boozeman, and Hunger Solutions Institute Managing Director Alicia Powers (right) in an Arkansas store that implemented the Add Milk! campaign.

Communicating the Program to Customers

To ensure customers are aware of the new benefit, Clark and her team developed a comprehensive communication strategy. This includes taking existing signage from Auburn’s Add Milk! campaign and tailoring it to each store’s layout and equipment. They are also working on a series of ads, social campaigns, and a video to ensure customers are aware of the program.

Looking Ahead: Expansion and Advocacy

For Clark, this initiative is more than just a business decision, it’s personal.

“I’ve known intermittent hunger in my youth,” Clark shared. “So, anything I can do to help relieve hunger, support underserved communities, and help make SNAP dollars stretch further is deeply meaningful to me.”

In addition to her work with Houchens, Clark is also involved with Feeding America Kentucky’s Heartland, further underscoring her commitment to fighting food insecurity.

While the current program covers fat-free and 1% milk, there’s a strong push to expand it to include 2% and whole milk. Senator John Boozman of Arkansas, a key supporter of the USDA funding behind the initiative, has expressed interest in broadening the program to include other dairy products like yogurt and cheese.

Opportunities for Other Retailers

One of the most exciting aspects of the program is its scalability. All independent retailers, even those with just a single store, can potentially participate. Auburn University is open to working with new partners and can help guide them through the application and implementation process. The program under Auburn’s guidance is growing quickly, jumping from 31 participating stores in 2023 to 615 in 2024 — an increase of nearly 1884%!

Clark explained that the Auburn partnership was incredibly helpful with the roll out, noting that Kara Newby and her team “really did the heavy lifting of the grant writing.”

What’s Next?

With the milk program now rolled out, Clark is setting her sights on additional initiatives, including the Double Up Bucks program for produce. While these programs can be more complex to implement, Clark is eager to explore any opportunity that helps customers access healthy food.

“We’re always listening for what’s next,” Clark said. “If there’s a way to bring more value to our customers and help them make their dollars go further, we want to be part of it.”

With the Add Milk! program rolled out across Houchens stores, it promises to make a meaningful difference in the lives of SNAP recipients, helping them access nutritious milk at a more affordable price. And with continued advocacy and support, the hope is that even more families will benefit from similar programs in the future.

If you are an IGA retailer looking to participate in Add Milk! or other grant funding and nutrition incentive programs, please contact IGA Retail Support Specialist Jimmy Wright for more information.