Report: Locally Sourced Foods - UK

Issues in the Market
Key themes
Definitions
Market in Brief
Unstoppable growth
Independents lead in market share
Low food miles boost the sector
Market potential
' Local' claims multiply in marketing
The future
Internal Market Environment
Key points
Provenance takes centre stage
- Figure 1: Agreement with selected lifestyle statements, 2003-07
Farmers' markets and shops multiply
' Pick your own' farms pick up trade
' Fresh' perception boosts local food sales
- Figure 2: Agreement with selected lifestyle statements, 2003-07
Exploitation of the local sourcing hook
Spreading the word for local producers
SALSA offers cost effective accreditation
Broader Market Environment
Key points
Shoppers consider food miles
- Figure 3: Agreement with selected lifestyle statements, 2003-07
Will ethics win out over economics?
- Figure 4: Ways of saving money when doing grocery shopping in the last 12 months, September 2008
Affluent ABs will propel local food sales
- Figure 5: Implications of changing demographics of the UK population for locally sourced foods, 2008
Younger shoppers offer a challenge
Post-FMD funding drove sector growth
Beleaguered retailers' high hopes for Sustainable Communities Bill
EU schemes raise the profile of regional foods
Competitive Context
Key points
Eating becomes a moral act
Organic too expensive for most
- Figure 6: Importance of selected factors when buying food, July 2008
Provenance: a successful marketing tool
' Local' leads ethical drivers but ' welfare' is growing
- Figure 7: Summary of market strategies in other specialist food markets, 2008
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
Fearful shoppers rally around local producers
- Figure 8: UK retail sales of locally sourced foods, by value, 2003-08
The future
Forecast
Healthy growth set to continue
- Figure 9: Forecast of uk retail sales of locally sourced foods, by value, 2003-13
Demographic changes to promote further growth
Supermarkets to aid further growth
Slower growth for 2008
Products Locally Sourced
Key points
' Local' products are hard to pin down
- Figure 10: Breakdown of English quality regional food market by producer numbers in food categories, 2007
Animal diseases boost locally sourced meat markets
Revival in traditional bakery goods boosts local angle
Multiples roll out local milk schemes
Demand high for fresh produce but many are growing their own
Product Positioning
Key points
Local pulls in the premiums
- Figure 11: Price positioning on a range of food products by both provenance (local/regional/british) and retail channel, South east of England, September 2008
Regional variations are likely to apply
Pick-your-own: fresh and affordable
Companies and Products
Regional initiatives
RFGs promote small companies in England
Taste of the West
Food and drink from the South East
Tastes of Anglia
Heart of England Fine Foods (West Midlands)
The Regional Food Group for Yorkshire & Humber
East Midlands Fine Foods
Northumbria Larder (North East)
Food Northwest
London
Regional branding by country
Major manufacturers
Allied Bakeries
2 Sisters Food Group
Müler Dairy UK
Communication and Promotional Activities
Key points
Below-the-line activity dominates local foods sector
Producers go for the local angle
Waitrose targets leading role with big promotional push
Retailers go for earthy image with meet with the farmer events
Bringing the countryside into schools and vice versa
Branding local producers as heroes
Food festivals champion local produce
Channels to Market
Key points
Farmers: beleaguered no more
- Figure 12: UK retail sales of locally sourced foods in value market share, by channel, 2007
Supermarkets get serious
Tesco
Asda
Sainsbury' s
Morrisons
The Co-op
Waitrose
Farmers' markets punch above their weight
Farm shops represent fastest growing retail sector
Box and pick-your-own schemes multiply
Limited uptake by convenience stores
Support prompts revival of independents
The Consumer -- Where Do People Shop?
Key points
Multiples maintain dominance
- Figure 13: Where adults shop for food and drink and how often, 2007
Specialist grocers attract the elderly and ABs
- Figure 14: Where adults shop for food and drink and how often, 2007
Disparate profiles for local outlets
The Consumer -- What Does ' Locally Sourced' Mean?
Key points
Firm but disparate views emerge over interpretation
- Figure 15: Definition of ' locally sourced' , May 2008
Local sourcing advocates apply 30-mile radius
- Figure 16: Definition of locally sourced, by age group, May 2008
Young and less affluent link ' local' with ' British'
Appendix
Abbreviations
Appendix: Internal market environment
- Figure 24: Agreement with selected lifestyle statements, by demographic sub-group, 2007
Appendix: Internal market environment
- Figure 25: Agreement with selected lifestyle statements, by demographic sub-group, 2007
Appendix: The Consumer -- Where do People Shop?
- Figure 26: How often adults shop for food and drink at out of town supermarkets, by demographics, 2007
- Figure 27: How often adults shop for food and drink at supermarkets in high street/town centres, by demographics, 2007
- Figure 28: How often adults shop for food and drink at convenience stores, by demographics, 2007
- Figure 29: How often adults shop at a butchers, by demographics, 2007
- Figure 30: How often adults shop at a greengrocers, by demographics, 2007
- Figure 31: How often adults shop at bakeries, by demographics, 2007
- Figure 32: How often adults shop at fishmongers, by demographics, 2007
- Figure 33: How often adults shop at local markets, by demographics, 2007
- Figure 34: How often adults shop at farmer' s markets, by demographics, 2007
Appendix: The Consumer -- What does ' Locally Sourced' Mean?
- Figure 35: Definition of ' locally sourced' , by detailed demographics, May 2008
- Figure 36: What does "locally sourced" mean NETS, May 2008

Locally Sourced Foods - UK - September 2008

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