The Responsibility Deal; a nudge or a shove in a healthier direction?

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2 The Responsibility Deal; a nudge or a shove in a healthier direction? Andrew Lansley has announced that the government s latest health initiative will nudge not nanny the food industry towards healthier formulations. The Responsibility Deal will be a voluntary scheme, but that doesn t mean it has no teeth. The Responsibility Deal will tackle five areas: food, physical activity, alcohol, health at work and behavioural change. The details of the scheme have yet to be unveiled but it is thought that the Health Secretary will emphasize cutting salt, sugar, fat and saturated fat levels and will be targeting foodservice as well as pre-packaged goods. Some have already dubbed the policy a cop-out dismissing it as a tempered nudge rather than the required legislative push. However, just because the policy is voluntary does not necessarily mean it will be ineffectual; a number of companies - including Kellogg s, Kraft and PepsiCo - have already given the scheme their backing. Professor Jeff French, organiser of the World Social Marketing Conference believes that nagging doesn t work when it comes to behavioural change and a co-operative approach might be more productive. However, the Responsibility Deal is not all carrot and co-operation; there is a stick, though it is wielded indirectly. Manufacturers that don t sign-up leave themselves open to scrutiny from consumers and the media; both of which are becoming increasingly nutritionally aware. Companies will also reform in order to keep up with competitors or maintain a competitive advantage / Q4 2

3 Products are evolving alongside the public s understanding of nutrition with brands such as Tasty Little Numbers marketing themselves on easy calorie counting; producing 100 calorie chocolate bars and 200 calorie snack-pots. It typifies the second half of the Responsibility Deal in that consumers are responsible for what they eat, whilst manufacturers need to ensure they enable consumers to make informed choices....consumers are responsible for what they eat whilst manufacturers need to ensure that the nutritional information is there to allow consumers to make informed choices. The flipside to packaging that gives a clear and helpful message is that which can be considered misleading. This quarter, Diageo won its legal dispute with ICB over the naming of the low abv spirit Vodkat. Smirnoff owner Diageo successfully contended that the name Vodkat was misleading, causing consumers to believe they were buying vodka when they were actually buying vodka flavoured schnapps which has a significantly lower abv. ICB has been ordered to pay all legal costs as well as an undisclosed sum in damages to Diageo. ICB has been forced to change the name of Vodkat and clearly display vodka flavoured schnapps on its packaging. In many cases it is not industry bodies and government departments that will pull businesses up on poor practice. Competitors, consumers and the media can have a more significant impact and it is important to recognise the indirect threat they pose. The following snapshot of notable product launches gives an idea of who s thinking what and why. All information has been sourced from a variety of food trade media / Q4 3

4 Bakery Price promotions in the bakery category have risen by 60% this year. Little Barn is launching a range of ready-to-bake cake mixes that are simple and easier to use. The brownie, sponge and cookie mixes are designed to introduce children to the home baking category. Gü is launching a new range of premium cookies through ASDA s in-store-bakery. A spokesman for Gü explained that the launch was designed to add adult indulgence into a category traditionally aimed at families. McCambridge Foods has relaunched its Soreen malt loaf, emphasising its energy-providing qualities and fruitier taste. Warburtons is changing its logo and dropping its heritage message to give the brand a more contemporary feel. Marketing director Richard Hayes explained that the since 1876 message was not a key sales driver and that the company wanted a simpler more vibrant logo to better stand out on the shelf. Warburtons is set to enter the free-from bread market and has plans to launch a range of gluten-free breads next year. Warburtons is launching a range of flatbreads to cater to health conscious consumers. The flatbreads are billed as a lighter alternative to sandwiches with each square slice containing 100 calories. Flatbreads are growing astronomically in the US and the company is looking to bring the trend to the UK explained marketing director Richard Hayes. The Fabulous Bakin Boys have launched their Fruit n Oat Slices to appeal to health conscious consumers. Each slice contains one portion of your five-a-day. Burton s Foods is looking to revitalise sales of its Jammie Dodgers biscuit brand with a vibrant packaging redesign and new fruit flavours / Q4 4

5 Confectionery & Snacks Glennans has launched a vegetable crisp multipack in order to make the alternative crisp category more accessible. Walkers has launched a new Rainy Days promotion where consumers can win 10 for correctly predicting rainfall. The campaign will be backed by a televised advert featuring Gary Lineker dancing to it s raining 10. Thorntons is focusing on designing more intricate and detailed chocolate products for its Christmas range after the same strategy provided strong sales at Easter. United Biscuits has revamped its Space Raiders crisps range to build on the cult brand s impressive 51% growth. The crisps will now retail at just 20p a packet with new foil packaging to preserve freshness. Mars and Cadbury s are focusing on developing bunny themed chocolate snacks for Easter after they proved to be the most successful novelty chocolate format this year. Nestlé has announced its plans to launch a range of lamb-shaped Aero chocolates next year to compete with Cadbury and Mars animal themed Easter offerings. Swizzels Matlow is to produce Scooby Doo varieties of its existing confectionery ranges, such as Love Hearts, Refreshers and Drumsticks following a licensing agreement with Warner Brothers. Tyrrells is launching a gourmet popcorn range called Proper Popcorn. The company is looking to give popcorn an upmarket appeal. Mars has created a new category with the launch of its Shake n Snack line. The products contain chocolate flavoured milk with a chocolate treat in the lid. The company is hoping the novelty factor will drive sales. Tyrrells has launched a range of premium ridged crisps to compete with Kettle Ridge Chips launched in July. United Biscuits is set to extend its Hobnobs brand with the launch of Hobnob Cookies in January next year. Burts Chips has launched a new brand Anitas Chips featuring Indian flavours to exploit a gap in the market for spicy premium crisps / Q4 5

6 Dairy Magnum has added a new liqueur variant to its Magnum Minis range. The Minis format has grown 32% this year and is now worth 14.8m. Danone is launching a range of yogurts that can be poured over cereals instead of milk. The launch follows Rachel s introduction of its pouring yogurt range in February. Andechser is launching a smoothie made using organic yogurt. Lassi is made using no artificial additives or preservatives and is targeting consumers looking for a wholesome and natural product. Twekkelo yogurts is looking to compete with Rachel s Organic and Yeo Valley in the big pot category with the launch of its Natural Farmhouse yogurt. The pots will emphasise heritage and responsible sourcing to appeal to consumers. Dairy Crest and Diageo are launching a Baileys infused pouring cream to appeal to Christmas consumers. Dairy Crest is giving its Cathedral City range a festive feel in order to stand out from its rivals as consumers stock-up on cheese over the Christmas period. Pilgrims Choice is launching a lighter variety of its Cheddar to compete with Dairy Crest and Milk Link. The cheese will contain less than 30% fat / Q4 6

7 Fresh Produce Frozen & Processed British consumers are increasingly interested in pomegranates with sales of pre-packaged formats rising 20% over the past 12 months. Feasters is repackaging its microwavable snack range, dropping its laddish image in favour of a gourmet menu theme to emphasise quality. Sainsbury s is now stocking a new purple potato variety. The Purple Majesty, produced by Albert Bartlett, takes its colour form naturally occurring flavanoids similar to those found in blueberries. The Department of Health has renewed its pledge to fund the schools fruit and veg scheme until Birds Eye is adding a new zip lock to its frozen pea packs to stop the frozen veg from spilling into the freezer. Ginsters is launching a seasonal range of microwavable snacks to entice Christmas consumers. M&S is launching a new vegetable snack pot to enhance the meat free category. The Lovely Vegetables range uses a layered pack, separating the veg from the sauce so vegetables stay crunchy as they steam. Sustainability and provenance are set to become increasingly important in the fresh produce sector next year according to Kantar Worldpanel / Q4 7

8 Functional Foods Genius is pushing a new marketing campaign to broaden the appeal of its gluten-free bread. The company is hoping to increase its market share of the free-from bakery category from 25% to 40%. Soft Drinks Warburtons has announced its intention to enter the free-from market and intends to launch a range of gluten-free baked goods by the end of the year. Crabbie s is launching a new non-alcoholic variety of its popular ginger beer. The brand is looking to set itself apart from rival brands by having a less spicy and more refreshing taste. Manflu has launched a new comfort drink to help men through their illness. The Lemon and Lime flavoured drink can be drunk on-the-go as a shot or mixed with hot water. Coca-Cola is readying itself for Christmas and is preparing to unveil its Holidays are Coming campaign. Britvic and PepsiCo have launched a joint promotional campaign offering consumers a range of prizes for purchasing their drinks. Consumers can collect promotional codes off of packaging and enter them online to see if they have won. Suppliers are still permitted to make claims pertaining to the benefits of probiotic yogurt even though the EFSA ruled that manufacturers had not yet proven the link between probiotic and gut health. Heinz has overhauled its WeightWatchers range to incorporate the new points system in time for the dieting upsurge in the New Year. Innocent is changing its packaging from Tetra Pak bottles to plastic carafes to enhance its sustainability credentials / Q4 8

9 Meat, Fish & Poultry Bernard Mathews is launching a new range of breaded turkey steaks to encourage consumers to view turkey as a more mainstream meat. The National Beef Association is calling for a beef task force to be set-up in order to help industry stakeholders deal with concerns and ensure that the quality of British beef is more consistent. Pork Whites is to sell plain bags of sausage meat targeting consumers who want to make their own stuffing at Christmas. Tesco is embarking on a complete packaging overhaul for its own-label pre-packed chilled fish to appeal to fine-food shoppers and emphasise quality. Sales of frozen pollock have crashed despite strong endorsement from chefs and the fish industry. Volume sales of pollock have dropped 18.2% by value this year as consumers continue to opt for cod instead. The finishing industry is anticipating a consumer backlash on salmon and tuna following Hugh Fearnley-Whittingstall s Fish Fight documentary set to air in January. Sustainability and catchment methods are becoming increasingly important in the sale of chilled fish. Finn-Arne Egeness, a scientist at Nofima Research Institute, believes that sustainability is now more important to consumers than freshness / Q4 9

10 Alcohol Diageo is expanding its premixed range with the launch of a Smirnoff Vodka & Apple Juice Drink. The premixed category has grown by 47% this year. Tesco is enhancing the quality of own-label alcohol range with the launch of a new Finest line-up. Glenfiddich is dropping its provenance and hertiage message from its advertising campaigns and is looking to focus on lifestlye and tasting notes to attract drinkers to the brand. Sales of own-label spirits have dropped 9.9% by value this year. Greenall s - distiller of 70% of the UK s vodka - believes the drop to be down to aggressive price promotion strategies from branded goods. Fever-Tree is launching a new Mediterranean Tonic Water drink to cater to premium vodka drinkers looking for a premium mixer. After Shock has launched a new Fizzy Orange drink. The 30% abv drink can be used as a mixer or drunk by itself. Babco Europe is launching an ice tea liqueur in the UK to offer consumers a lighter alternative to other spirits. Diageo has won its court case with Vodkat owner ICB over the low abv spirit. Diageo argued that the 22% drink should not be able to advertise itself as vodka as its abv is too low. Vodka now enjoys protected status along with champagne and whisky / Q4 10

11 Miscellaneous Old El Paso is launching a new Family Meal Kit with milder flavours after customer research revealed that many women were deterred from trying Mexican food as they regarded it as too spicy. The government has scrapped plans to introduce legislation requiring the country-of-origin to be listed on packaging. The multiples are battling to increase their market shares before Christmas by ramping up promotional offers. Morrisons has increased its number of better than half price promotions by 300% this year and Tesco launched more than 30 buy-one-get-two-free offers in a single week. Promotional offers rose by 26.6% from September to October as retailers try to steal share from each other in preparation for the golden quarter. Coca-Cola is teaming up with Old El Paso to cross-merchandise soft drinks and food by pairing a Fajita Meal Kit with a 1.25l bottle of Coca-Cola. The multiples are rethinking how they use own label and are developing more premium lines. Weetabix is looking to differentiate itself from its competitors by using high quality wheat in its cereals. The company will source all of its wheat from local producers who have signed-up to protocols guaranteeing the quality of their wheat in return for a premium price for their crop. Research has found that many manufactured goods are misleading, appearing to contain more fruit than they actually do. 18% of products tested contained no fruit at all despite carrying an overt reference to fruit on their packaging. New EU legislation is being proposed to combat the issue. Health Secretary Andrew Lansley has announced plans for a new public health scheme called the Responsibility Deal. The scheme will cover food, alcohol, physical activity, health at work and behavioural change. Lansley has assured the industry that the scheme will be a consultation rather than a red tape fan-fare when it launches next year. PepsiCo is entering the on-the-go breakfast market with the launch of an instant porridge pot product under its Quaker brand. The hot cereal category has grown by 13% in the last year, whilst cereals remain flat. Heinz is launching a new range of baby foods to provide parents with a nutritious but affordable meal option / Q4 11

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