© IGD 2010 Michael Freedman, Senior Consumer Analyst, 13 May 2010.

© IGD 2010

Michael Freedman, Senior Consumer Analyst, 13 May 2010

© IGD 2010

• Over 700 members from across the international supply chain, including farming

• At the heart of the industry for 100 years• Total supply chain perspective• In-house team of 100

– Over 30 analysts with relevant industry experience

• Well connected– Board and operational level links throughout the chain– Reliable source for government departments and MPC– Strong engagement with leading think tanks

• Funding– 20% Subscriptions , 80% Trading company

Who we are

© IGD 2010

Supporting farmers and small businesses

• IGD is proud to support UK farmers and small food businesses

• We provide a series of free shopper trend reports on key commodities– Lamb– Potatoes– Beef

• We have trained hundreds of farmers on shopper trends and consumer marketing

• Fully funded ‘Centenary Scholarships’ to our postgraduate course for many small food businesses in 2009/10

© IGD 2010

An introduction to Shopper Insight from IGD

• Proprietary research programme to provide a landscape perspective of shopper behaviour

– Plus client-specific, customised projects for a ‘deep dive’

• Primary GB shopper research methodology

– Mixture of both qualitative and quantitative research

– Feedback from 1,000+ GB shoppers, including accompanied shopper trips,

depth interviews, focus groups and national surveys

• All research undertaken by IGD in-house team

– Our consumer analysts also conduct the primary research, to provide the

highest quality insight

© IGD 2010Source: ONS, December 2009 - Shows measure IHYQ

5 consecutive quarters of economic contraction. Recession is severe

- a sudden downturn Deep economic contraction

© IGD 2010

Impact of the recession on shopping behaviour

Changed for good - made changes and will stick with them

Changed for now - expect to go back to normal

Expect to cut back if it gets worse

As normal and don’t expect to change

77% of those who have made changes expect to stick with them

+8%

-5%

Source: IGD Consumer Unit

© IGD 2010

2012 expectations – careful without compromise


Price of food

Approach to shopping

Quality of food

© IGD 2010

Shoppers are even more focussed on price


Store choice Product choice Improvements

1.Price

2.Layout

3.Accessible

4.Parking

1.Price

2. Ingredients

3.Fat content

4.Brand

1.Price

2.Local foods

3.Promotions

4.Farm shops/mrkts

+11%

© IGD 2010

Increased promotional activity

© IGD 2010

Want multi-buys on everything

Want multi-buys only on fresh not on ambient products

Want multi-buys on ambient but not fresh products

Don’t like multi-buys at all

Don't know

Split opinion on fresh food multi-buys


Yes 54%

BUY ONE GET ONE FREE

No 40%

© IGD 2010

A focus on reducing food waste

I used to go shopping once a week and buy fruit and

veg on offers and throw half of it away. We now shop more frequently and buy

less on each trip..

I have always been conscious of waste. Multi-buys on fresh produce are not ideal unless you are a

big family.

Sheffield, Post family, C2D

Sheffield, With young children, C2D


© IGD 2010

Shoppers are looking for value and values

Value Values

Heritage

Provenance

Pack size

EthicsSustainability

Performance

Promotions

Price

© IGD 2010

Waitrose – focus on sustainability

Source: www.waitrose.com

© IGD 2010

‘Ethical’ products bought in the last month

Locally produced Fairtrade High animal welfare Organic Environmentally

friendly*


2006 2007 2008 2009 2010%

© IGD 2010

What are shoppers prepared to pay a bit extra for? 2005 2007 2010

High quality ingredients Free range Locally produced Fairtrade


© IGD 2010

Local or regional foods

Foods with high animal welfare claims

Fairtrade foods

Organic foods

These trends are expected to accelerate by 2012


© IGD 2010

Shoppers would like more local food


No price increases for the food I buy

More locally produced foods available in the supermarket

More special price promotions available in the store

A farmers’ market or farm shop in the area

More discount stores in the area

1

2

3

4

5

Improvements shoppers want to see:

© IGD 2010Source: IGD Consumer Unit

Important to identify local food shoppers

Uncommitted

Non local3%

Choosers

Activists

Don’t know

© IGD 2010

Opportunities for local fruit and vegetable growth


© IGD 2010

Meeting different shopper needs for more local food


© IGD 2010

Promote the key benefits of local food


2006 2008 2010

Support local producers Support local retailers Keeps jobs inthis area

© IGD 2010

Overlap between working conditions and local sourcing

63% It is more important to use British suppliers

69% It is more important for companies to

provide good pay and conditions to workers in poorer nations

10% 53% 16%


© IGD 2010

Local food is about juggling priorities

Price

Animal welfare

Organic

Seasonality

Year round availability

QualityFreshness


© IGD 2010

Implications

• Appetite for more locally produced food remains strong

• Understand your shoppers

• Reinforce importance of supporting local economy

• Focus on ‘value’ and ‘values’

• Make choices easier

© IGD 2010

Thank you

Michael Freedman

Senior Consumer Analyst, IGD

[email protected]

+44 (0)1923 851 913

www.igd.com

© IGD 2010 Michael Freedman, Senior Consumer Analyst, 13 May 2010.

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