Consumer perceptions that fresh produce is expensive are not a true reflection of the marketplace and must be challenged by the industry, Freshfel has claimed.
Research conducted by the European industry body found that price is ranked by consumers across the continent as one of the top purchase criteria for fresh produce despite the fact that average weekly spend on food in the UK is only 11.5 per cent of total household expenditure and the amount spent on fresh produce is just 1.5 per cent. This is against a backdrop of falling inflation figures published on Tuesday by the Office of National Statistics which show that retailers are keeping shop prices down.
“Looking at all food items over the last couple of years, market observations show that prices are, all in all, rather stable,” said Freshfel president Ramon Rey. “Certain fruit and vegetables are even being sold at the same price for the last couple of years, despite inflation. The price debate around fruit and vegetables is simply irrelevant if it is put in perspective.”
However, changing this consumer perception, which is holding back sales of fresh produce, is a long-term challenge. “When it comes to improving sales, it is a slow journey. We have ripped education on food out of the curriculum and it takes time to get that back,” said David Hughes, emeritus professor of food marketing at Imperial College, London. He added that lower income groups are of particular concern. “Consumer research shows that the perception that fresh produce is expensive is disproportionately taken by those on a low income,” said Hughes. “They are already under-consuming fresh produce and so this is in effect a double-whammy.”
And with processed foods being so aggressively priced it means the fresh produce sector has an even tougher task on its hands despite some good deals on root vegetables and brassicas.
“We have not seen such an aggressive retail environment for a long time and there are some astonishing offers on processed foods - such as pizzas for £1 - so it does not surprise me that consumers will choose, say, a pizza as a low-price alternative to making a stew,” said Hughes.
The answer, he believes, lies in fresh produce modelling itself on what is happening in the FMCG sector. “They sculpt their goods to meet the needs of consumers. It is done very cleverly and the more we do that in fresh produce the more we are likely to succeed.”
Branding has a role to play. Hughes points out Rooster is one that is enjoying particular success in the potato sector, although adds that a proportion of its volume is sold on promotion.
The issue of waste is another area on which fresh produce should fight the battle around perception. “A significant proportion of fresh produce is thrown away,” said Nigel Jenney, CEO of the Fresh Produce Consortium. “If consumers look at home much they spend and how much they throw away then that can make fresh produce look expensive.”
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