Freshness Meets Quality: How Little Farms’ Cross-Border Supply Chain Fuels Its Competitive Edge in Southeast Asia

SEONWOO LEE
Aug 20
11 min read

*This article was originally published as a contribution to the Dong-A Business Review (DBR) in November 2022.

Article at a Glance

Little Farms is a fast-growing organic grocery distributor based in Singapore, catering to Southeast Asian consumers seeking premium, additive-free, and diet-specific food options. By partnering with artisanal producers across Europe, the US, and Australia, the company has built a cross-border supply chain that meets rising demand for transparency and traceability. Through a hybrid model of offline stores, bakeries, restaurants, and e-commerce, it achieves efficient inventory turnover in a typically unprofitable market. Backed by founders with investment and large-scale retail expertise, Little Farms is expanding its product range via M&A—on its way to becoming the Whole Foods of Southeast Asia.

[Update – July 2025] Little Farms currently operates seven outlets in Singapore and has recently raised a total of US$1.5 million from investors including Heliconia Capital Management. The company has set an official target to double its store count to 14 by 2030, driven by strong demand from younger local consumers and a differentiated “gastro-grocer” concept that blends premium grocery retail with in-store dining.

As of 2022, Singapore’s GDP per capita had reached US$80,000, and consumers in the city-state—as well as those in other leading Southeast Asian capitals¹—have shown a growing appetite for premium products and services. Economic growth has naturally elevated consumption standards across the region. Against this backdrop, a new type of grocery distributor has emerged in Southeast Asia, particularly in Singapore, capturing consumer attention by offering premium food products with a focus on health and sustainability. With its organic-first, differentiated strategy, Little Farms is challenging the long-standing dominance of large retailers such as FairPrice and Cold Storage in Singapore’s grocery landscape.

¹While there is no universally standardised definition, “first-tier cities” in Southeast Asia are typically classified based on factors such as city size, economic scale, and overall business environment. The term generally refers to cities with higher levels of consumer spending and more developed market dynamics.

Founded in 2016 by entrepreneur Joe Stevens, Little Farms was established with a vision to become “a leading distributor and restaurant for natural, fresh, and whole foods that redefines the food experience.” Stevens set out to create an integrated online and offline space where consumers could confidently expect food that retains its natural flavour, freshness, and nutritional integrity—what he calls true “whole foods.”

At the time of its founding, demand for natural and organic food in Singapore was on the rise. However, most fresh produce in the market was grown in contaminated soil or imported under unclear pesticide regulations, making quality assurance difficult. Much of the meat and seafood available contained high levels of growth hormones, antibiotics, and artificial colouring. In addition, long shipping times—especially for sea freight—meant that fruits and vegetables were often harvested early, compromising taste and freshness. Labelling practices were also inconsistent, with unclear indications of origin and quality.

Interior view of Little Farms, an organic grocery retailer based in Singapore (Source: Little Farms)

Through years of investment and operational experience in Asia’s food retail sector, Stevens developed a deep understanding of the regional market. He recognised a growing demand for ethically sourced, high-quality groceries that retain freshness and nutritional value. Based on these insights, he defined a new set of consumer expectations as follows:

Clear Labelling: Consumers increasingly seek transparency in packaging and want to understand what goes into the products they purchase. Clear, informative labels help them make healthier, more informed decisions.

“Free From” Foods: There is growing demand for foods free from additives, preservatives, chemicals, GMOs, animal-derived ingredients, lactose and dairy, gluten, and other common allergens. In particular, alternative products that are dairy-free and gluten-free are seeing a notable rise in popularity.

Superfoods: To improve dietary quality, consumers are gravitating towards so-called “superfoods” such as berries, oily fish, leafy greens, nuts, olive oil, quinoa, yoghurt, and legumes.

특별한 식단(special diets): Interest in specialised diets has surged as more consumers seek to lose weight and improve health. These include: (a) Mediterranean diet – low in saturated fats and high in fibre; (b) Paleo diet – focused on unprocessed foods such as meat, fish, eggs, and vegetables; (c) Low-carb, high-fat (LCHF) diet – often adopted as part of ketogenic nutrition plans.
Traceability: Consumers are placing greater importance on the traceability of food supply chains, driven by growing concerns over farm contamination, pesticide use, and microbiological safety. Today’s shoppers expect full transparency about the origin, producer, production method, and importer of their food.

Based on a clear understanding of evolving consumer needs, Little Farms has grown from a single store in 2016 into a startup operating seven retail outlets and three restaurants across Singapore as of 2022. What, then, sets Little Farms apart from other grocery retailers? Where does its competitive edge lie?

Collaborating with Artisanal Producers & Building a Cross-Border Supply Chain

Consumers who shop at Little Farms expect the highest-quality food—minimally processed, with flavours and aromas preserved in their most natural form. The store’s shelves are lined with items rarely found in other supermarkets in Singapore. These include bright yellow Lady Finger baby bananas, short in length and full of flavour; creamy Shepard avocados that retain their yellow flesh for up to two hours after being cut; and freshly baked sourdough loaves crafted by a former baker from San Francisco’s renowned Tartine Bakery. Many of the products are clearly labelled as organic, natural, or pesticide-free.

What enables Little Farms to offer this level of differentiation is its hands-on approach to sourcing: the company has directly identified and introduced over 3,500 unique products to the Singapore market. Unlike major grocers like FairPrice, which typically rely on centralised supply networks and standardised vendors, Little Farms has forged its own path. Notably, 80% of its sourced products are sold exclusively through Little Farms for a set period of time. By partnering with carefully vetted artisanal producers across Europe, the US, and Australia, Little Farms has opened the door for these brands to enter Singapore and the broader Southeast Asian market—often serving as their first distribution partner in the region.

The aftermath of the UK’s withdrawal from the EU created new challenges for many artisanal producers, who found themselves needing to replace lost customers and explore new markets. This shift presented a timely opportunity for Little Farms. These producers’ products—and their target consumers—aligned closely with Little Farms’ brand identity and customer base. As a result, Little Farms was able to introduce high-quality, innovative natural products to Singapore ahead of the curve.

This deep understanding of food market trends, coupled with a discerning curation strategy, has helped Little Farms build a competitive position that larger retailers struggle to replicate. Today, the company is able to quickly respond to evolving customer needs by offering a carefully selected range of premium fresh produce and natural grocery items. These include high-quality fruits and vegetables, dairy, meat, poultry, and seafood, as well as ready-to-eat meals, baked goods, and a wide array of specialty products—vegan, gluten-free, dairy-free, keto, and other diet-specific items. The selection also extends to natural household and personal care products.

Little Farms showcases its differentiated sourcing capability, having directly introduced over 3,500 unique products to the Singapore market.

Beyond product curation, one of Little Farms’ key strengths lies in its cross-border supply chain strategy. About 70% of its products come from Australia, whose geographic proximity allows for lower freight costs and better preservation of food quality than sourcing from Europe or North America.

Still, Little Farms does not rely solely on Australian suppliers. The company maintains close partnerships with producers across Western Europe and North America to ensure the availability of fresh, seasonal products year-round. For example, once the peach season ends in Australia, sourcing shifts to Europe and the US. Little Farms is also exploring supply chain expansion into Korea and Japan.

To maintain optimal freshness, products are flown into Singapore six to eight times a week via air freight and transported using a cold chain system directly from suppliers to store shelves. The company partners with top-tier international freight forwarders, refrigerated truck fleets, and warehouse operators to ensure consistent quality and temperature control across the entire logistics process.

This flexible, cross-border supply chain model is a core competitive advantage for Little Farms. Its value became particularly evident during the COVID-19 pandemic, when rising freight costs and reduced air cargo capacity disrupted global logistics. Leveraging its diversified sourcing channels, Little Farms began shipping long-shelf-life artisanal products from countries like Italy and the UK by sea. It also strengthened local sourcing, procuring pesticide-free salads from Archisen, a Singapore-based indoor smart farm.

By maintaining a mix of international and domestic supply partners, Little Farms has continued to deliver natural and fresh products to Singaporean consumers.

Building a Loyal Customer Base Through Premium Service

Since opening its first store, Little Farms’ membership programme has grown by more than 40% annually. As of April 2022, the number of paid members had reached nearly 70,000. This loyal customer base—characterised by high repeat purchase rates—has become a key source of competitive advantage, particularly in product sourcing. With stronger bargaining power and greater purchase volumes, Little Farms is better positioned when negotiating with suppliers.

Its customer base primarily consists of the following segments:

Foreign nationals and Singaporeans with overseas study or work experience
Health-conscious consumers who prioritise natural foods and focus on fitness and the wellbeing of themselves and their children
Customers with specific dietary needs or preferences, including gluten-free, dairy-free, vegan, vegetarian, ketogenic, and paleo diets

Given the high expectations of its loyal customers, Little Farms places strong emphasis on premium service and the in-store experience. One of the company’s most distinctive traits is how its staff engage with customers—not only with product knowledge, but with genuine enthusiasm for freshness and quality. In contrast to Singapore’s retail industry, where employee turnover is typically high, Little Farms prioritises staff retention. Many of its team members have worked in-store for several years, enabling them to build trust-based relationships and offer more personalised service. This continuity has played a critical role in fostering a strong, loyalty-driven customer community.

[Update – April 2025] In April 2025, Little Farms partnered with the Tasmanian Government to host an in-store pop-up and tasting event showcasing premium Tasmanian food brands. Featuring nine participating producers, the event introduced Singapore customers to high-quality Australian ingredients and reinforced Little Farms’ role as a launch platform for international artisanal brands entering the Southeast Asian market.

Little Farms leverages its in-store cafés and restaurants to reduce inventory pressure while offering a differentiated customer experience. (Source: Little Farms)

Synergy Across Physical Stores, E-Commerce, and Regional Expansion

Alongside its offline presence, Little Farms launched its e-commerce and delivery service at the time of its founding in 2016. During the COVID-19 period, this channel grew rapidly—reaching up to 20% of total revenue. Thanks to the combined strength of both online and offline operations, Little Farms has become one of the few fresh food retailers in Singapore to achieve over 50% annual growth while remaining profitable, unlike many e-grocers that continue to operate at a loss.

Its physical stores and restaurants also serve as effective channels for inventory management. One of the biggest challenges faced by e-commerce companies is handling excess inventory from direct procurement. Like many retailers, Little Farms invests heavily in demand forecasting and inventory data capabilities to minimise waste—only sourcing volumes that can be sold. Its robust membership programme also drives repeat purchases and enables pre-ordering, which helps further improve forecast accuracy. What differentiates Little Farms is its ability to clear unsold inventory through its physical stores. Unlike online platforms, physical stores can adjust discount rates independently based on sales volume, product condition, and customer response—making them more agile and effective in clearing inventory without loss.

Operating in-house restaurants and cafés also plays a key role in easing inventory pressure. Little Farms runs three health-focused restaurants under the name “Little Farms Bistro,” offering lunch and dinner menus made with the same fresh ingredients sold in its grocery stores. After their meals, customers can immediately purchase these ingredients from the adjacent retail space. This not only helps streamline inventory management, but also creates a unique customer journey—one that inspires meal ideas and encourages the discovery of high-quality food products.

Singapore’s high-end food trends tend to spread quickly to other first-tier cities in Southeast Asia. Take Jakarta, for example—Indonesia’s capital has a per capita GDP of around US$15,000, surpassing that of Malaysia and Brazil. It is also nearly four times wealthier than the national average, and its economic momentum in recent years has significantly strengthened consumer purchasing power. As a result, demand is rising among the middle- and upper-income segments for premium food products and lifestyle options that match their growing expectations. Recognising this shift, Little Farms is planning to expand into first-tier Southeast Asian cities such as Jakarta through a premium branding strategy, in partnership with local distributors. [Update – Strategic Expansion 2025] Building on its Singapore success, the company has confirmed its goal to expand to 14 stores by 2030 and is actively preparing market entries into Jakarta and Bangkok. Stevens emphasised in a recent interview that “local partnerships will be key to navigating cultural nuances, import regulations, and distribution dynamics in each market.”

A Founding Team Backed by Deep Experience in Investment and Major Retail Ventures

Another reason for growing investor interest in Little Farms lies in the calibre of its founding team. CEO Joe Stevens previously led Standard Chartered’s Asia Private Equity division for over a decade, during which he gained extensive experience in the retail and food sectors. Before that, he served for 13 years as Head of Asia Investment Banking and Chief Representative of Goldman Sachs China. Also on Little Farms’ board is Dominique Lecossois, who brings over 30 years of experience in the retail industry. As the former CEO of Carrefour Asia, he was responsible for establishing and managing the company’s operations in Taiwan, China, Malaysia, Singapore, Thailand, South Korea, and Indonesia. He later served in an executive role at Tesco and currently teaches retail management at INSEAD while advising Little Farms’ leadership.

This combination of deep investment and retail expertise has positioned Little Farms to accelerate its growth through mergers and acquisitions. Its first M&A deal came in March 2022 with the acquisition of 100% ownership of Starter Lab Bakery, a boutique artisanal sourdough bakery known for its naturally fermented bread. Starter Lab was founded in 2016 in Bali by Min Siah and her partner, both former bakers at San Francisco’s world-renowned Tartine Bakery. Their commitment to high-quality, handmade sourdough quickly drew word-of-mouth attention, attracting a strong customer base—including frequent visitors from nearby Singapore.

Building on their success in Bali, Min Siah launched Starter Lab Singapore in 2019, introducing 15 types of freshly baked sourdough breads, including their signature country loaf. All products are made using premium natural ingredients and go through a 36-hour wild yeast fermentation process. Backed by a skilled team of bakers working seven days a week, the bakery gained a loyal following and began supplying its bread not only through its own café but also to top-tier cafés and Michelin-starred restaurants across Singapore. In July 2020, the team expanded production capacity by opening a facility capable of handling up to 600 kg of dough per day.

The acquisition has already generated significant synergy. Starter Lab now delivers freshly baked bread to all Little Farms stores, cafés, and restaurants between 7:00 and 8:30 a.m. daily. As a result, Little Farms is able to offer one of Singapore’s best sourdough selections across its network, with Starter Lab products consistently ranking among the top three bestsellers. The acquisition has also improved margins and opened new customer engagement opportunities—for example, Little Farms now offers baking classes led by Starter Lab’s master bakers to its paid members. Building on this successful integration, Stevens is actively pursuing additional acquisitions. Potential targets include a premium fresh food e-commerce platform, a natural meat specialty butcher, and a European gourmet retailer—all designed to expand both product categories and customer touchpoints.

The Future of Little Farms

With a strong foundation in Singapore, Little Farms is now rapidly expanding into other key Southeast Asian cities, including Jakarta in Indonesia and Bangkok in Thailand. Its growth potential is substantial—particularly among Millennial and Gen Z consumers who prioritise health, sustainability, and premium-quality food. In fact, the size of the target customer base in Thailand and Indonesia now exceeds that of Singapore. Consumers in these countries also spend roughly 20% of household income on groceries, a level similar to Singapore. With its global supply chain capabilities and high-touch customer service, Little Farms is well positioned to replicate its successful model in these new markets. That said, cultural differences, import regulations, and local distribution dynamics must be carefully addressed. A market entry strategy that includes local partnerships will likely be the most effective path forward.

The closest global comparison to Little Farms may be Whole Foods Market, which Amazon acquired for US$13.7 billion in August 2017—its largest-ever acquisition. Founded in 1980 as a small natural foods store in Austin, Texas, Whole Foods grew to over 470 locations before the acquisition. Since its inception, Amazon had completed more than 130 M&A transactions, but none on the scale of Whole Foods. The brand earned consumer trust through its philosophy of “Whole Foods, Whole People, Whole Planet” and its commitment to uncompromising quality. Much like how young American consumers embraced Whole Foods for offering healthier, more ethical products—despite the higher prices—a new generation in Southeast Asia is now driving demand for premium food. Little Farms is poised to ride this wave, setting the stage for a new chapter in the region’s grocery retail landscape.

[Update - Funding & Growth] The latest funding round, led by Heliconia Capital Management, reflects strong investor confidence in Little Farms’ high-end organic grocery and restaurant model. This backing is expected to accelerate both its store expansion and cross-border sourcing capabilities over the next five years, solidifying its positioning as the “Whole Foods of Southeast Asia.”