Tesco Lotus, the Tesco-owned Thai hypermarket chain operated by Ek-Chai Distribution System, has launched Tesco Lotus Eat Fresh, a new cross-category fresh produce brand it says will meet growing demand in the country for high-quality fresh food.
According to the division, which is Tesco's second-largest international operation, the new brand will be rolled out over the next two years across its entire fruit and vegetable offer.
The brand will focus on freshness, convenience and food safety, backed by a supply chain that involves direct sourcing, incorporates innovative packaging and ensures a reliable level of traceability and food safety.
Mark Murphy, fresh food trading director at Tesco Lotus, said the new range had been developed in response to changing consumer demand.
'The demand of Thai consumers for high-quality and safe fresh food has been growing over the past years,' he commented.
'A health-conscious trend is also driving increased interest in fresh fruit and vegetables. This is why Tesco Lotus has developed a new produce brand 'Tesco Lotus Eat Fresh' - fresh, convenient and safe, with a QR-code label enabling consumers to see the very plots their produce comes from.'
Murphy revealed that Tesco Lotus had added around 50 new product lines in developing the Eat Fresh range, bringing the total above 600 and thereby offering customers more choice.
Much of this would be sourced direct from growers in the country, he added.
'Tesco Lotus has continually increased purchases of fresh fruit and vegetables directly from Thai farmers to bring high-quality fresh produce to consumers.
'The Tesco Lotus team works closely with farmers from choosing seeds, planting and harvesting to quality control and tests for chemical residues under the concept 'Pick up Eat Fresh, pick up Freshness from the Farm'.”
Fresh direction
Tesco Lotus Eat Fresh will be available at what the company described as 'affordable prices' at all 1,500 of its stores in Thailand, as well as via its online shopping service.
The range will be sold in new packaging designed to maintain product freshness and extend shelf-life.
Meanwhile, the QR codes will be placed on 40 of the most popular fruit and vegetable lines, allowing customers to access information about the product's origin and nutritional value, as well as recipe suggestions.
Elsewhere, Tesco Lotus has sought to capitalise on the convenience trend, investing in new processing machinery to create ready-to-cook vegetable packs.
Marketing drive
Tesco Lotus is understood to have set aside a budget of Bt120m (US$3.79m) to fund a far-reaching marketing campaign for Eat Fresh via a number of media channels and other promotional activities.
'Developing the Tesco Lotus Eat Fresh brand will help upgrade Thai farmers to an international level,' Murphy suggested.
'Tesco Lotus works with growers by giving them knowledge about planting and harvesting, packing and transportation to maintain quality and safety from chemical residues according to international standards. The project also helps creating additional distribution channels for Thai farmers.'
Tesco Lotus has committed to continuously increasing the volume of fruit and vegetables it sources from Thai farmers.
Earlier this year, the company set a domestic purchase target of 120,000 tonnes – 45 per cent more than in 2012 – and it has continued to export Thai agricultural products to around 6,500 Tesco Group stores in 12 countries worldwide.
'We hope that consumers will see Tesco Lotus as the destination for high-quality fresh food, with convenience and affordable prices,” Murphy concluded.
