developing local food paul mayfield food marketing, sac consulting

Developing Local FoodDeveloping Local Food

Paul MayfieldFood Marketing, SAC Consulting

OutlineOutline

• Food Trends

• Future Market Changes

• Food Networks

Changing EnvironmentChanging Environment

• Price Stabilising

– Price inflation is now slowing and consumer spending

recovering

• Shoppers interest split between higher quality products

and a focus on price

– Freshness, authenticity, origin, perceived healthiness,

environmental impact, animal welfare

Emerging Trends - HealthEmerging Trends - Health

• Most important global trend – more so in UK

• Consumer response• Eating healthier food• Eating functional food• Eating wholegrain• Examining our diet

Less of what?Less of what?

Prevalence of obesity (BMI > 30) in UK women 1994 - 2002Tackling Obesities: Future Choices http://www.foresight.gov.uk 2007

Drivers – healthDrivers – health

Q3, Base: All main shoppers Source: IGD Shopper Trends 2010

%

Fat content Sugar content Salt contentNo artificialcolours orflavours

2006 2007 2008 2009 2010

Emerging Trends - ConvenienceEmerging Trends - Convenience

• Now moving towards ‘home assembly’

• Has slipped to 2nd place• Doesn’t always meet

healthier criteria• Consumers moving to more

cooking – especially in recession

• Opposition in terms of movements like ‘slow food’

• Average food preparation times have slowed– 1 hour in 1980– 12 minutes 2002– 17 minutes 2007

Ethical OptionsEthical Options

* Included from 2008Q6, Base: All main shoppers Source: IGD Shopper Trends 2010

%

Locally produced

FairtradeHigh animal

welfareOrganic

Environmentally friendly*

2006 2007 2008 2009 2010

Retailer ResponseRetailer Response

• Retailers - Future focus of commercial discussionsTrading Relationship most important areas in next 3 years?

Source: IGD

Demonstrating social responsibility Demonstrating social responsibility

Waitrose supports South African fruit producers through the Waitrose Foundation

– A proportion of the profits are passed back to South African communities

Waitrose staff at each brand nominate three local charities to support

Shoppers are involved by placing a token in the box every time they visit the store

Source: IGD Consumer Unit, 2009

Sainsbury’s have had a longstanding involvement with Comic Relief, helping to engage shoppers with Red Nose Day

Food as EntertainmentFood as Entertainment

Consumer ResponseConsumer Response

49

37

36

24

23

18

16

15

14

11

5

4

43

29

27

14

23

18

19

13

3

5

17

14

0% 10% 20% 30% 40% 50% 60%

Better food planning

Resealable packaging

Smaller portion sizes

Recipe ideas to use leftovers

Longer shelf life on food

Advice on how to tell if food is still okay to eat

Food recycling schemes

Incentives to compost food

Temperature sensitive labels

Food tags which sound when food is near bestbefore/use by date

Charging according to the amount thrown away

Food prices increasing

% main shoppers (all mentions)

2009 2007Source: IGD Consumer Unit, 2009

Reasons to cook from scratchReasons to cook from scratch

32

29

25

24

21

21

19

18

16

13

11

33

29

25

19

18

9

14

12

21

15

22

0% 10% 20% 30% 40%

I enjoy cooking

I t is healthy

I get the taste I like

Value for money

I know the ingredients

Ingredients are fresh

I have the time

I t is quick and easy

Like experimenting

Satisfying to cook for others

Lots of variety

% main shoppers (all mentions)

2009 2004

The main reason mentioned in favour of cooking from scratch is the enjoyment factor (32%). Almost three in ten (29%) are motivated by health while a quarter (25%) cooked from scratch to achieve good tasting food.

There has been a significant increase in the numbers of shoppers who believe that cooking from scratch provides value for money (increasing from 19% in 2004 to 24%).

Promotions and the RecessionPromotions and the Recession

Recession - the market response?Recession - the market response?

Market Trends: SummaryMarket Trends: Summary

• Consumers are looking for Value but not neglecting their Values

• Many of the Values are intangible

• Price is important but not the only factor

• Values need to be communicated – the story

• Emerging signs of recovery

Producer ResponseProducer Response

“The increase in worth of a product or service as a result of a particular activity.”Chartered Institute of Marketing

“Value is the benefit for which consumers are willing to sacrifice price.”

– Benefits > sacrifice = Good value

– Sacrifice > benefits = poor value

Adding Value

Examples of Adding ValueExamples of Adding Value

What Value Can Food Have?What Value Can Food Have?

• Texture, taste and aroma• Convenience• Shape, size and flexibility• Packaging• Service• Information and advice• Reassurance and traceability• Local production• Storability (e.g. shelf life, freezability)• Animal welfare• Nutritional content

% of all respondents who agree to the Statement ‘I Try To Buy Local Produce Whenever I Can’

TNS Worldpanel – 52 W/E 9th September 2007

() - % change v 2006

Buying local nowBuying local now

32.7

36.837.6

31.9

36.738.1

20

22

24

26

28

30

32

34

36

38

40

52 w/e 13 Aug 06 52 w/e 12 Aug 07 52 w/e 10 Aug 08

Total UK Scotland

(X10)

Reasons for buying local foodReasons for buying local food

Reasons w hy it is important to buy local foods, FSA 2007

0% 10% 20% 30% 40% 50% 60%

Supports local businesses

I know w here producers are

Supports local area / community

Less air miles

It’s safer

Less pollution

Fresher

It’s cheaper

Quality / better food

Tastes better

Other

Don’t know

Helping the ConsumerHelping the Consumer

• Helping to reduce food waste, • Provide recipe suggestions - encourage shoppers to use

leftovers• Make it as quick and easy as possible• Help the resurgence in home cooking.• Focus on the price conscious yet ethical and health

focussed shopper.

Taste of ArranTaste of Arran

Savour the FlavoursSavour the Flavours

Savour the Flavours

Argyll & Bute Agricultural ForumArgyll & Bute Agricultural Forum

Skye & Lochalsh Food LinkSkye & Lochalsh Food Link

Orkney Quality Food & DrinkOrkney Quality Food & Drink

Orkney Quality Food & DrinkOrkney Quality Food & Drink

ResourcesResources

Thank You

Your questions & comments?