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Food Provenance April 2011.

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Presentation on theme: "Food Provenance April 2011."— Presentation transcript:

1 Food Provenance April 2011

2 Introduction “The provenance of food – the origin of what we eat – remains high on the food manufacturers’ and media’s agenda, also maintaining its visibility among consumers. British and local origin of food are seen as important issues by a minority of around one in three adults. Meanwhile, more than half the population are prioritising value for money over food origin, reflecting the current pressure on consumer incomes. Promisingly for British food however, more than three in four see buying British food as a way to support British businesses, while three in five report preferring to buy British food because it is fresher, suggesting strong grounds for engaging consumers.” Provenance is defined as the origin or source of a product or its ingredients. It is associated with more than just the geographic source of these ingredients, and includes issues such as animal welfare, organic production, food miles and other production techniques. However, the topic is so diverse that, for the purposes of this report, the definition must be narrowed. For this report, therefore, Mintel primarily aims to investigate provenance mainly in terms of geographic sourcing.

3 Half the nation look for UK-made goods
That more people claim to buy domestic goods than pay attention to food origin suggests that theoretical support for British products may not always translate into action. This underlines the need for brands to highlight their domestic credentials to benefit from them. A considerable pool of people appear engaged in cooking, particularly the ABs and year-olds, and thus likely to take an interest in quality, uniqueness and provenance of food. The strong interest in foreign food, enjoyed by three in five adults, could support demand for authentic ethnic foods. However, consumers comfortable with food sourced globally may attach less value on the British origin of food, with greater needs for it to deliver on tangible aspects. Source: GB TGI, Kantar Media UK Ltd Q (Oct-Sep)/Mintel

4 Food budgets under pressure as consumers confidence weakens
Consumer confidence fell at the start of 2011, and the mood looks set to remains cautious, with value for money likely to remain a key choice factor in food in 2011. The strong association between buying British food and supporting British businesses could help brands to connect with consumers, though it remains to be seen whether even this can justify potential price premiums. The high appeal of local and British food to the over-55s bodes well in the short-term, as this group is the least likely to expect cut backs in their food habits in 2011. However, in the longer run, the relative lack of interest in British and local food among the current younger age groups stands to pose a challenge for these sectors. The projected growth in the number of C2s should support demand for British food, as they appear the most engaged in British food among socio-economic groups. The ABs are also expected to gain share in the population. Less likely than average to see British origin as important, they take a keen interest in food originating from where it is traditionally made. Source: Toluna/Mintel

5 British gains steadily in NPD
New product launches featuring the word ‘British’ in the on-pack description in all new product launches , New products labelled as ‘British’ have been steadily gaining share in all food launches. This is likely to be partly in response to the support for British food in the recession, and to media coverage of the short-comings of country of origin labelling. Launches marked as ‘British’ were the most prominent among fish, meat and egg products, these being high profile farming sectors and areas where the major grocers have looked to compete on sourcing. While private label dominates ‘British’ launches, some manufacturers have also pitched their brands as British or regional. Kelly's Ice Cream launched in spring 2010 a marketing campaign focused on its regional provenance, with the tagline “Cornish by Nature”, while bread-maker Hovis rolled out a new Union Jack packaging in March 2010 to highlight its use of British wheat. Source: Mintel GNPD

6 Regional credentials are being leveraged in NPD
Apart from British credentials, regional provenance has forged a niche role as signalling quality. The term ‘region’ or ‘regional’ appeared on 0.5% of new launches in 2010, with respect to British or overseas regional origin. For example, Morrisons The Best Italian Cherry Tomatoes in Rich Tomato Juice are said to be from the Puglia and Campania regions of Italy Gaea Kalamata D.O.P. Extra Virgin Olive Oil is said to be from Kalamata in South Peloponesse. Other products give regional origin details, such as Sainsbury's Taste the Difference Fairtrade Ethiopian Sidamo Coffee, grown in the highlands of the Sidamo region. Some products are referring to regional “inspiration”, rather than ingredients for a similar effect. For example, Waitrose Campania Inspired Pizza is said to be “inspired by the simple, rustic flavours of Italy's Campania region”, with Campanian buffalo mozzarella.

7 Local food forecast to reach £5.8 billion in 2015
Estimated UK retail value sales of locally sourced food, Source: Mintel Growth of 29% to £5.2 billion over is estimated for locally sourced foods, their share in the overall food market remaining modest, at 8%. Growing availability and consumer interest have supported growth in the sector in the longer term. Recent growth has benefited from the leading grocers making local sourcing part of their corporate responsibility agenda.

8 Half of the food consumed in the UK is produced in the UK
Share of food consumed in the UK originating in the UK, Source: Defra/Mintel Food produced in the UK accounts for around half of food consumed here. The long-term downward trend has largely been fuelled by the strength of the Pound, particularly against the Euro, which has hampered the relative competitiveness of UK produce and propped up that of imports. Domestic production falls particularly far short of “new supply” - domestic supply net of imports and exports – in areas like fruit, cheese and butter, and pigs and pigmeat.

9 Animal welfare is top food issue
The British nation comes across as divided on food issues, with none of those on our list chiming with the whole population, or even with the majority. Concern for most issues diminished slightly from last year, likely to signal that as consumer confidence fell in early 2011, interest in such issues suffered. Price, not included here, is likely to have climbed on many shoppers’ agenda. Animal welfare ranks top, helped by the media coverage in 2008 and 2009, such as various celebrity chefs putting the spotlight on poultry and pork farming. 37% see British origin of food as generally important, but only 22% report not preferring British in any product category. The tendency to view British origin as important rises with age, from 20% of year-olds to 43% among the over-55s. Food-related claims seen as important, December 2009 and January 2011  Base: 1,000 internet users aged 16+ Source: Toluna/Mintel

10 British is most wanted in dairy, traditional origin in coffee
Preference for food origin by category, selected categories, January 2011 Base: 1,000 internet users aged 16+ The preference for British is the most pronounced in areas dominated by fresh food. The grocers have looked to compete on their British credentials in these areas, while traditional UK availability, association with farming and importance of freshness are likely to play a role. Traditional origin sparks the highest interest in a mixed set of categories, often traditionally hailing from overseas, and many likely to benefit from their connection with popular ethnic cuisines and the “foodie” trend. A number of more processed, ambient products like cooking and table sauces, seasonings, confectionary and pasta, rice and noodles show the highest share of shoppers paying no attention to product origin. Source: Toluna/Mintel

11 Majority of people rank value over food origin
Reflecting the current pressures on consumer incomes and confidence, more than half of adults view value as more important than food origin. Men, year-olds, C1s, and families with children under-10 are particularly likely to agree. A large minority put tangible measures of quality, such as brand and looks, ahead of origin in navigating choice. This focus on value and tangible qualities was also reflected in our focus group: “I don't look for where food comes from - price and freshness are my main criteria” - Female, 65+, ABC1 Against this background, food origin can only add value if it enjoys a strong image as a guarantee of quality. Attitudes to food origin, January Base: 1,000 internet users aged 16+ Source: Toluna/Mintel

12 Buying British food is seen to support British businesses
Attitudes to British food, January Base: 1,000 internet users aged 16+ Just under two in five see British food as offering better quality in general, posing a challenge for the British proposition. A majority perception of British as fresher provides a positive point of difference for fresh produce. Buying British food is associated by the majority with supporting British businesses, a sentiment most likely reflecting the economic downturn. This suggests opportunities for brands to engage consumers by highlighting not just their British origin, but the people behind the brand. Groups the most likely to see British food in a positive light across the different areas include women, over-55s and C2 socio-economic group. Source: Toluna/Mintel

13 Detailed origin provides stand-out, not tangible value
Qualities associated with food products with detailed origin information, January 2011 Base: 1,000 internet users aged 16+ Only 15% of adults see products with detailed origin information as no different from “normal”. However, only 16% view them as worth paying more for, suggesting that the standout rarely translates into tangible added value. The strong association with distinctive taste suggests potential to tap into the UK consumers’ recent interest in stronger or even extreme flavours. That detailed origin information is associated with premium quality ties in with the common appearance of such details on top-end products. However, as they become increasingly common, appearing on retailers’ standard own-brand pasta and branded breadsticks alike, this association may weaken. Source: Toluna/Mintel

14 One in five consumers are Brit-Lovers
One in five adults stand out as “Brit-lovers”, showing a strong interest in and support for British food. This makes them a core audience for brands looking to leverage their British credentials as a selling point. A strong interest in food that hails from where it's traditionally made marks out one in five adults. Messages based around the 'story' of a product and focused on its origin and heritage look well-placed to chime with this group. One in four adults are mainly driven by practical factors such as value and appearance of food, and brands. Messages based around easy to gauge qualities could help British or local produce engage these “Pragmatists”. Apathy towards food matters marks out one in four adults. While the bias towards higher-income households makes this a potentially lucrative group, their lack of engagement dampens the appeal.

15 Kiti Soininen Senior Food Analyst Tel: +44 207 606 4533


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