Getting Closer to The Consumer: Improving Communication On-Pack and Everywhere

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1 Getting Closer to The Consumer: Improving Communication On-Pack and Everywhere Dr. David Hughes Emeritus Professor of Food Marketing Citrus Australia Market Outlook Forum 2018 Australian National Maritime Museum Darling Harbour, Sydney, NSW Thursday, March 15 th,

2 Highly Successful Food-to-Go Specialist Pret a Manger is Opening Meatless Fruit & Vegie Prets in the UK

3 Value Share of the UK Retail Fruit Bowl* versus 2017 Retail Fruit Value ,671 million (A$6.6 bn.) Stone Fruit Tropical 6.8 Fruit 9.2 Grapes 12.5 Citrus 14.2 Pears 4.6 Winners: Berries and Grapes Losers: Bananas and Apples Apples 18.7 Berries 18.3 Bananas 15.7 Pears Stone 4.1 Fruit 7.5 Tropical Fruit 9.6 Grapes 14.6 Citrus 14.4 Retail Fruit Value ,679 million (A$10.1 bn.) Apples 16.3 Bananas 10.5 Berries 22.7 Per Cap. Fruit Spend 2017/07 +43% Av. Household Fresh Fruit Spend/Week 4.25 (A$7.60) in % Increase Over 2007 Source: Kantar Worldpanel UK * Does not include retail value of cut fruit est. 350 million RSV 2017

4 Volume Share of the UK Retail Fruit Bowl versus 2017 Retail Fruit Volume ,320,000 tonnes Retail Fruit Volume ,670,000 tonnes Pears 5.6 Stone Fruit 5.6 Tropical Fruit 12.2 Grapes 8.8 Citrus 15.6 Apples 22.3 Bananas 24.3 Berries 5.6 Pears 4.8 Stone Fruit 6.6 Tropical Fruit 12.1 Grapes 8.7 Citrus 16.1 Apples 17.3 Bananas 27.1 Berries 7.3 Per Cap. Fruit Volume 2017/07 +7% Winners: Berries and Bananas Losers: Apples and Pears Source: Kantar Worldpanel UK

5 Cautionary Tale: Don t Fall into the UK Banana Commodity Market Trap! The KVI* Conundrum! UK Retail Market for Bananas 2007 and Inc./dec v 2007 Value 577 million 594 million +2.9 Volume 563,000 tonnes 723,000 tonnes Av. RSP** 1.02 kg kg*** Per. Capita Consumption 9.2 kg kg. % * Source: Kantar Worldpanel * KVI Key Value Item ** RSP Retail Selling Price *** A$1.50/kg.

6 The Rise and Rise of Fresh Berries in the UK Market Berries Rewarded with More Prime Shelf Space

7 British Summer Fruits Has the Support of the Major Berry Marketing Companies in the UK Berryworld Berry Gardens S&A Produce Total Berry Angus Growers CPM Retail Contributing to a Combined PR Budget of Approx. A$500,000

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15 The Waitrose Orange Category: A Wall of Orange! (14 skus) Monmouth, UK February 23 rd, 2018 Result: Befuddled Shoppers!

16 Tangerines Easy peel Mandarin with green leaf Waitrose Orange Citrus Category Seedless easy peelers sweet Mandarin (boxed) Nadorcott easy peeler Seedless easy peeler Clementines Mini easy peelers Ippolito oranges Large Navels Large oranges Extra large oranges Essential oranges Blush oranges Seville oranges (for marmalade) Juicing oranges Feb 23 rd, 2018 Price range: / kg A$ 2.50 A$ 7.20 / kg This Range was in My Local Store in Small Town Wales.

17 Honey, Pick Up Some Apples When You Are at The Supermarket. Do We Want the $2 or the $5 Ones and What s the Difference Between Them? Work it Out for Yourself! Tauranga, July 31st

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19 Mum s Day in UK Sunday, March 11 th 2018

20 AN ORANGE: It s The NOUN The Margin isn t in the NOUNS! It s in the ADJECTIVES adding Colour to the NOUNS. Blood Oranges Tree-Ripened. Navel Australian Farmer Alveccio s. New Season. Halos

21 Farmers are Fashionable! Consumers Want to Know Who Grows Their Food and How They Grow the Food

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24 It They re Snacks, Put Them in the Snacking Section!

25 For Fresh Produce, We Have a Huge Stage for Great Theatre For Ambient Processed and Frozen Much More Challenging

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28 Barrow Boy Fruit Sellers Have a Thriving Trade on the Streets of London: Location Convenience Quality Longevity Good Humour Price

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31 We re a Little Embarrassed About Our Oranges But, If You Want Some, Then Get On Your Knees!

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35 Branding Citrus: It s Got To Be More Than a Sticky Label!

36 PRIDE OF AUSTRALIA

37 Strong Growth in Club Varieties of Fresh Produce Around the Globe

38 Best in Class: R&D partnership with PFR consumer focus in Asia supply chain management brand development

39 Dominating Global Fresh NPD for Kiwifruit Through Smart R&D

40 Zespri: Best Practice in Branding Fresh Produce

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42 Don t Be Shy Shouting About the Health Benefits of Your Product (Or Knocking the Competition IF You Have a Story to Tell!)

43 Don t Be Shy Shouting About the Health Benefits of Your Product (Or Knocking the Competition IF You Have a Story to Tell!)

44 Point-of-Sale Material in Major Supermarket in Manila. Is it legal within your target market? Probably Not but it s Effective! In Asia. Food and Health Inextricably Linked

45 How Do You Communicate Value for Money? Two Coffees A$9: Routine Daily Purchase I d Buy More Fruit but it s Expensive! Av. Weekly Household Spend on Fruit A$13.56* * Av. Household Fruit Spend in UK is A$7.61 (but fruit s cheaper in the UK!

46 Pick a Name for Your Product That is Consumer-Friendly Is Physalis*: a. A dangerous sexually-transmitted disease? b. A delicious sub-tropical fruit? c. A popular girl s name in Russia? * Also known in Australia as a Bladder Cherry (not much of an improvement!)

47 A$630 per Kg*. (and they spelt it wrong!) * or A$125 for a 200 grm. steak before you add the fries!

48 CONTACT POINTS: Telephone contact: mobile +44(0)7798 Retail Blog: