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, 2018 @profdavidhughes www.supermarketsinyourpocket.com
Highly Successful Food-to-Go Specialist Pret a Manger is Opening Meatless Fruit & Vegie Prets in the UK
Value Share of the UK Retail Fruit Bowl*. 2007 versus 2017 Retail Fruit Value 2007 3,671 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 2017 5,679 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 2017 +54% Increase Over 2007 Source: Kantar Worldpanel UK * Does not include retail value of cut fruit est. 350 million RSV 2017
Volume Share of the UK Retail Fruit Bowl. 2007 versus 2017 Retail Fruit Volume 2007 2,320,000 tonnes Retail Fruit Volume 2017 2,670,000 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
Cautionary Tale: Don t Fall into the UK Banana Commodity Market Trap! The KVI* Conundrum! UK Retail Market for Bananas 2007 and 2017 2007 2017 Inc./dec. 2017 v 2007 Value 577 million 594 million +2.9 Volume 563,000 tonnes 723,000 tonnes +28.4 Av. RSP** 1.02 kg. 0.82 kg***. -19.4 Per. Capita Consumption 9.2 kg. 10.9 kg. % * Source: Kantar Worldpanel * KVI Key Value Item ** RSP Retail Selling Price *** A$1.50/kg.
The Rise and Rise of Fresh Berries in the UK Market Berries Rewarded with More Prime Shelf Space
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$500,000
The Waitrose Orange Category: A Wall of Orange! (14 skus) Monmouth, UK February 23 rd, 2018 Result: Befuddled Shoppers!
Tangerines Easy peel Mandarin with green leaf Waitrose Orange Citrus Category Seedless easy peelers sweet Mandarin (boxed) Nadorcott easy peeler Seedless easy peeler Clementines Mini easy peelers Ippolito oranges Large Navels Large oranges Extra large oranges Essential oranges Blush oranges Seville oranges (for marmalade) Juicing oranges Feb 23 rd, 2018 Price range: 1.40-4.15 / kg A$ 2.50 A$ 7.20 / kg This Range was in My Local Store in Small Town Wales.
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
Mum s Day in UK Sunday, March 11 th 2018
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
Farmers are Fashionable! Consumers Want to Know Who Grows Their Food and How They Grow the Food
It They re Snacks, Put Them in the Snacking Section!
For Fresh Produce, We Have a Huge Stage for Great Theatre For Ambient Processed and Frozen Much More Challenging
Barrow Boy Fruit Sellers Have a Thriving Trade on the Streets of London: Location Convenience Quality Longevity Good Humour Price
We re a Little Embarrassed About Our Oranges But, If You Want Some, Then Get On Your Knees!
Branding Citrus: It s Got To Be More Than a Sticky Label!
PRIDE OF AUSTRALIA
Strong Growth in Club Varieties of Fresh Produce Around the Globe
Best in Class: R&D partnership with PFR consumer focus in Asia supply chain management brand development
Dominating Global Fresh NPD for Kiwifruit Through Smart R&D
Zespri: Best Practice in Branding Fresh Produce
Don t Be Shy Shouting About the Health Benefits of Your Product (Or Knocking the Competition IF You Have a Story to Tell!)
Don t Be Shy Shouting About the Health Benefits of Your Product (Or Knocking the Competition IF You Have a Story to Tell!)
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
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!
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!)
A$630 per Kg*. (and they spelt it wrong!) * or A$125 for a 200 grm. steak before you add the fries!
e-mail: CONTACT POINTS: profdavidhughes@aol.com Telephone contact: mobile +44(0)7798 558276 @ProfDavidHughes Retail Blog: www.supermarketsinyourpocket.com