While some other categories struggle, prepared produce bucks the trend and continues to gain popularity among consumers.
Currently valued at £988.8 million, the prepared produce market has seen value growth of 7.2 per cent, alongside a volume growth of 4.1 per cent [Kantar Worldpanel]. Over the last year 220,000 tonnes of prepared produce were sold across the country.
These figures were due to several factors but, crucially, some £34.5m worth of value growth was driven through shoppers increasing their average household expenditure on the category.
All of the retailers that are overtrading delivered an annual overperformance. However, the hard discounters also achieved 18.6 per cent growth from a position of undertrade, which is a clear indication that the stores are in a strong position to win more market share throughout the year. Notably, 17 per cent of all prepared-produce expenditure can be sourced back to fruit. The sector grew at 19.2 per cent over the last year. Leafy salads and vegetables represent more market share but they have grown behind the market rate and lost share to fruit.
At Sainsbury’s, for example, 300g packs of mixed berries (stawberries, blueberries and blackberries) are back on the shelves and currently priced at £3.50 on promotion.
The product, described as “a selection of juicy, fragrant berries, ideal as a part of a luxurious dessert,” is exactly the kind of easy-to-grab prepared mix that appeals to time-poor consumers who are looking for a simple way to add a summery touch to the dinner table or picnic hamper.
So what is behind the category’s success? Simon Martin, group sales and marketing director of QV Foods, thinks it’s due to the industry’s ability to respond to consumer demand for premium, added-value products. “For several years now the prepared produce category has survived on simple low cost cut-and-shaped vegetables, but now, to generate repeat purchase you have to catch the consumer imagination as well and these numbers would indicate that the industry has stepped up to the mark,” he says.
“With value growth outstripping volume growth, this is a clear indication that the recent trend for more premium prepared products has delivered what the consumer was looking for,” he continues. “The trend suggested that the consumer wanted more creative and innovative products but at the same time would be prepared to pay a little more for that extra quality. The growth of value over volume endorses this and the idea that consumers now are more discerning than ever in terms of prepared produce purchases.”
For that reason, Martin thinks retailers and foodservice outlets will respond to the current market trend by pushing the creative approach even further. “The introduction of a more knowledgeable and discerning consumer has given retail and foodservice outlets the opportunity to be more creative and at the same time add some much needed value to the category and this will be one they will be keen to push on and maximise,” he says.
In terms of current price levels and promotions, Martin is of the opinion that the price inflation the category has recently seen has been “much needed”, adding that it has been justified with an increase in the quality of product on offer. “The coming months will be interesting; potential drought issues and the knock-on effect on produce could put some of this natural price inflation and/or creativity under pressure,” he says.
Still, he thinks the category will continue to perform in the future. “This trend for more inspired premium products will continue, consumers have more “food knowledge” than ever before but by the same token have less time than ever,” he says. “This allows developers to be more innovative and creative with their concepts, which is leading to some really exciting developments in ingredients, flavours and formats.”-
FLORETTE'S FEELGOOD FACTOR
Florette has signed up three Olympic champions to spearhead its promotional plans in its Summer of Feelgood campaign. Lisa Kjellsson reports
With a record marketing and advertising warchest of £5 million for the year, Florette has some pretty big plans for 2012. The company is investing heavily in TV ads and also a viral campaign featuring former Olympic champion Roger Black. In the tongue-in-cheek spoof confessional videos, Black admits to an addiction, which is later revealed to be an obsession with salad.
The Olympics and the Queen’s Diamond Jubilee are two big events that have been identified as important opportunities for the company to drive sales. “The brands that are latching on to the Olympics are not necessarily the healthiest, so we think there is a huge opportunity there,” a spokeswoman for Florette said. “These events cross over with our key season of June to September, which is the barbecue season, and 90 per cent of consumers have a salad at these parties.”
Florette’s 2012 summer campaign, Summer of Feelgood, is designed to harness all the emotion of sport and celebration and build a connection with salad shoppers. The campaign kicks off on 28 May and will see Florette working with sporting ambassadors Roger Black, Sally Gunnell and Colin Jackson. An on-pack promotion will be featured on 15 million bags of Florette salad, enabling shoppers to ‘bag a day’ with one of the sporting heroes.
The brand leader is also investing in a heavyweight package of digital support, including advertising, social media engagement and viral seeding, to further extend the campaign reach by building an engaging digital dialogue with consumers. TV and print advertising will also amplify the campaign.
Along with the headline sporting hero day, which can be won by an individual, family or community, the promotion has a supporting tier of prizes giving customers the chance to nurture their sporting talent or just ‘feel good’ with a spectrum of prizes from sailing and snowboard lessons through to spa days and shopping experiences.
Florette has worked with Raymond Blanc in the past, but this is the first time the company has launched an on-pack promotion featuring a celebrity.
Florette commercial director Sandy Sewell said: “We are all set for an exciting summer of sport packed full of celebratory occasions and landmark events that will provide extensive opportunities to inspire consumers.
“The Florette brand has a track record of creating motivating messages to engage with new and existing consumers alike, injecting personality, innovation and interest to the fixture, and this summer will be a shining example of how we can extend the category’s peak season right through the summer and deliver substantial growth.” -
