Potato Council chairman and grower Allan Stevenson last week warned the trade about price pressure and promotions devaluing the category, just as the sector is working to build on value and volume growth.
He told the Potato Council Research Conference on 2 February that “contract prices are way, way below market levels at the moment” and was backed by a major retailer, supplier and market analyst.
A spokesperson for Waitrose said: “There are a lot of people out there who are devaluing the category because there are far too many promotions out there.”
Paul Coleman, technical director of Greenvale AP, stressed that retailers need to meet increased growing costs and that “making price comparisons between retailers is killing the industry because retailers don’t want their offer to be more expensive than any of the others”.
Kantar Worldpanel’s Ed Garner warned the multiples not to “give potatoes away”.
He said: “Potatoes are not a price sensitive category. Volume does its own thing and price is not part of the equation - it is not the reason why people buy or don’t buy potatoes.”
AHDB Market Intelligence data showed that the category has enjoyed a boost in 2010, with the 52 weeks to 26 December 2010 seeing both value and volume up 0.3 per cent and figures for the 12 weeks to 26 December 2010 putting value up by six per cent and volume up two per cent.
No comments yet