Banana sales in the UK grew by just 1.4 per cent in 2003, the lowest percentage hike for a number of years, despite savage price cutting by the major multiples in this country.
In a year when the effects of 30 per cent deflation on loose bananas were being felt at all stages of the supply chain, the lack of price sensitivity among consumers of the fruit has become all too apparent.
David Read, chairman of the Banana Group, said this week: “We know from our own Banana group research, undertaken several years ago, that over a given time period, a drop in retail prices does not cause an increase in purchases. Rather, price fluctuations can cause sales to stagnate.
“People are not motivated into continual additional purchase simply by a low price message. Without a doubt it is the perceived energy-vale benefits that drive consumers to ensure bananas are a ‘must buy’ weekly shopping choice,” he said.
The Banana Group and its members believe there is still potential for significant volume sales growth for the fruit in the UK and will be celebrating its 20th year in 2004 by continuing its drive to maintain media profile for the banana. Sales of bananas have surged by 150 per cent since the group’s inception, transforming the fruit into the UK supermarket sector’s biggest single line while the rest of the produce world staggered in its wake.
More on Banana Group plans for 2004 next week.
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