The Institute of Grocery Distribution (IGD) believes that the British public is responding to the credit crunch by increasing its support for locally produced food.
Sales of home-sourced food and drink have grown by an estimated 15 per cent in the last three years, to £4.3 billion, and think tank the IGD believes this figure could rise to as much as £5.7bn by 2012.
Tesco alone expects to rake in £500 million from sales of locally produced food and drink this year, and intends to double that by 2011.
Willie Hamilton, commercial director of Tesco Local, said: “People are cash-strapped but our numbers are bang on target. Some 84 per cent of our customers are saying that they would like to buy local lines. It’s a fantastic opportunity and that is why we’re investing so much.” Tesco’s high-street rivals have all attempted to raise their profile with domestic producers, in the hope of securing their slice of the expanding sector.
Demand for local lines is highest in the South West, East Anglia and Scotland, but two-thirds of London consumers claim to want to buy more local food and drink.
Joanne Denney-Finch, ceo of the IGD, said: “The economy is affecting most people’s food choices, but not just in a simple and obvious way. In these tough conditions, many people are keener than ever to support nearby jobs through their spending choices.”
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