1. Developing Local Food Paul Mayfield Food Marketing, SAC Consulting

2. Outline Food Trends Future Market Changes Food Networks

3. Changing 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

4. Emerging Trends - Health Most important global trend – more so in UK Consumer response Eating healthier food Eating functional food Eating wholegrain Examining our diet

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

6. Drivers – health Q3, Base: All main shoppersSource: IGD Shopper Trends 2010 % Fat contentSugar contentSalt content No artificial colours or flavours 20062007200820092010

7. Emerging Trends - Convenience Now moving towards ‘home assembly’ Has slipped to 2 nd 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

8. Ethical Options * Included from 2008 Q6, Base: All main shoppersSource: IGD Shopper Trends 2010 % Locally produced Fairtrade High animal welfare Organic Environmentally friendly* 20062007200820092010

9. Retailer Response Retailers - Future focus of commercial discussions Trading Relationship most important areas in next 3 years? Source: IGD

10. 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

11. Food as Entertainment

12. Consumer Response Source: IGD Consumer Unit, 2009

13. Reasons to cook from scratch 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%).

14. Promotions and the Recession

15. Recession - the market response?

16. Market 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

17. Producer 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

18. Examples of Adding Value

19. 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

20. % of all respondents who agree to the Statement ‘I Try To Buy Local Produce Whenever I Can’ TNS Worldpanel – 52 W/E 9 th September 2007 () - % change v 2006 Buying local now (X10)

21. Reasons for buying local food

22. Helping 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.

25. Taste of Arran

27. Savour the Flavours

29. Argyll & Bute Agricultural Forum

33. Skye & Lochalsh Food Link

39. Orkney Quality Food & Drink

41. Resources Thank You Your questions & comments?