1. FDIN Second Organics Summit From Fringe To Mainstream Simon Wright, O&F Consulting Overview and Setting The Scene May 14th 2008

2. Today’s Presentation 1.Introduction to O&F Consulting 2.The first FDIN Organic Summit - what did we say ? 3.The Changing World (or Why Aren’t We All Rich Yet?) 4. The Day Ahead

3. 1. Simon Wright - O&F Consulting Working with Organic and Fairtrade Food since 1986. Examples of clients include; Sainsbury’s Supermarkets (multiple retailer) Glisten plc (food on the move) Planet Organic Ltd (independent retailer) Green & Black’s (chocolate) Rachel’s (dairy) The Organic Spirits Company (gin, vodka, rum) Information / contact www.organicandfair.com www.organicandfair.com

4. ADVERTISEMENT ! The Handbook of Organic and Fair Trade Marketing Published February 19th 2007 by Blackwells First ever book on this subject Edited by Simon Wright and Diane McCrea More information at www.blackwellfood.comwww.blackwellfood.com Written by industry experts - covers UK, Germany, Italy and the USA Case histories on the success of key brands such as Green & Black’s, Yeo Valley, Clipper, Duchy Originals, Abel & Cole

5. 2. The First FDIN Organic Summit 1.Held in Daventry, May 2006 2.150 people generating their own agenda via Open Space techniques 3.17 key themes identified many of which resonate today eg protecting organics from GM, supply-side challenges, organic certification symbols, getting the organic message across to consumers 4.Desire to set up an organic trade group. This now exists and it is called the Organic Trade Group, chaired by Lizzie Vann

6. 3. The Changing World (or Why Aren’t We All Rich Yet?) 1.Consumer awareness about sustainability, climate change and environmental issues has moved on in the last 2 years 2.Organic food continues to do well (£2billion at retail, 22% year-on-year growth) 3.Despite this there is widespread confusion throughout the industry and with consumers as to what organics represents - “food without pesticides” is only a part of it! 4.A potential economic downturn makes it essential for organics to get its message across in order to justify the organic premium

7. 3. The Changing World (or Why Aren’t We All Rich Yet?) IGD Consumer Unit Research (March 2008) Shopper Types Conscience Casuals 21% (no interest in ethical shopping) Blinkered Believers 16% (focussed on single issue) Aspiring Activists 21% (express their interest in many more ethical issues than they currently buy into) Focussed Followers 27% (made steps into ethical shopping but pick and choose areas of interest) Ethical Evangelists 15% (buy across broad spectrum of ethical issues)

8. 3. The Changing World (or Why Aren’t We All Rich Yet?) IGD Consumer Unit Research (March 2008) Which Of These Are You Interested In ? Animal Welfare69% (free range / not tested on animals) Local/British55% Environmentally Friendly53% (recycled / biodegradeable / sustainable / not by air) Fairly traded48% Organic products32%

9. 3. The Changing World (or Why Aren’t We All Rich Yet?) IGD Consumer Unit Research (March 2008) What Are The Barriers To Ethical Shopping? Too expensive*52% Unavailable / can’t find them31% Lack trust14% Education11% No barriers17% Not important to me10% * 10% oncost for organic products cited as acceptable

10. 3. The Changing World (or Why Aren’t We All Rich Yet?) IGD Consumer Unit Research (March 2008) Who Do You Trust To Give A Balanced View? Documentaries/consumer groups30% FSA29% News programmes24% Charities23% Assurance schemes / labels22% Celebrity chefs19% Newspapers14% Farmers13% Supermarkets10% Government7% Food manufacturers5%

11. 3. The Changing World (or Why Aren’t We All Rich Yet?) Conclusions There is increasing competition for the ethical pound One-third of UK consumers are interested in buying more organic products But they think they are too expensive Because they don’t understand the benefits And they don’t trust us when we explain the benefits!

12. 3. The Day Ahead Morning Themes Organic Policy - Peter Melchett Organic Market - David Jago Organic Consumer - Luke Vincent Organic Trade Group - Lizzie Vann Future Plans - Organic Fortnight 2008 (Helen Taylor, Suzy Madigan)

13. 3. The Day Ahead (continued) Afternoon Themes Routes To Market: Consumer Direct (Ella Heeks) Organics To Go (Patrick O’Flaherty, Chantelle Ludski) Organic Supply Chains (Russell Smart) The Health Food Trade (Cliff Moss) Final Q&A and Summing Up

14. Today’s Presentation 1.Introduction to O&F Consulting 2.The first FDIN Organic Summit - what did we say ? 3.The Changing World (or Why Aren’t We All Rich Yet?) 4. The Day Ahead