The prepared sector continues to be one of the most reliable in the produce category, although the kind of large gains seen in previous quarters have not been replicated this time around.
Value sales have risen some 5.8 per cent in the year to 28 October to £1.1 billion, with an additional £58.9 million injected into the category. This was largely driven by price rises, according to Kantar Worldpanel, with average pack prices rising 4.1 per cent, from £1.16 to £1.21.
However, there has been good news with figures showing that volumes are increasing 1.7 per cent and shoppers have been buying more frequently in the past year.
This has been a strange year for the prepared category, with the collective boost of the Jubilee, Olympics and Euro 2012, events where prepared and convenience foods were expected to prosper, partly dampened by months of disappointing weather. In the bagged salad sector, figures from Nielsen show that the proliferation of brands is helping drive growth in the category, with household penetration for brands increasing by 17 per cent against 0.6 per cent for the category as a whole. Similarly purchase frequency is up 8.1 per cent for brands, compared with 1.9 per cent for the category.
The branded sector, which for years was solely represented by Florette, now has a host of new contenders helping drive incremental growth.
Names such as Lasting Leaf, Fresh & Naked, Steve's Leaves and Jamie Oliver have all found a point of difference to Florette and have firmly established themselves in the market.
Tony Walsh, category manager at Soléco UK, sums up in the mixed mood in the salad category as the year draws to a close: 'While the summer was a bit of a disaster, we're actually in a pretty good place. But it could have been a lot stronger [had the weather been better].'
And Walsh says Florette welcomes the influx of new brands as it helps boost consumer interest in the category as well as adding extra shopper trips.
Another prepared salads specialist says the sector picked up some extra sales on the back of higher prices affecting other produce. 'Salads in general – wholehead and prepared – are having a reasonable run this autumn,' he explains. 'This is in part driven by temperatures as we are experiencing a slightly warmer autumn than last year.
'Also don't forget it has been a challenging year for vegetable growers, particularly brassicas. Mid-year there were some high prices to consumers and this undoubtedly helped salads and moved shoppers into salad eating, and some of them have stayed.'
The convenience factor is also helping, he believes. 'Gone are the days when consumers were happy to waste a proportion of it. Research shows waste messages are getting through and people do not want to waste product. That is one of the reasons why we are seeing fewer BOGOF deals in produce now.'
The recession has in some ways helped the category as it has become more important than ever for products to be relevant, he adds. 'If your product is relevant and adds value then there is a market for it. But if you are not adding the right level of convenience then people won't pick it up. Shoppers are being a lot sharper so you have to explain your convenience and value on pack.'
For the future outlook of the sector, one analyst stresses the weather will continue to have a crucial role to play. 'Prepared vegetable sales have not been doing as well but if we get a cold snap that could shock people back into eating more seasonably, and we'll see prepared veg sales pick up in terms of year-on-year performance,' he says.
'I think there is a still a lot of excitement in the prepared categories. Kantar talks about a two-nation split in the market and I think that is right. Remember there are people who are trading out of going out to a restaurant and buying into the £10 meal deals at supermarkets like Waitrose or M&S, and it is helping the category when you have prepared involved in these meals.' —
THE BILLION POUND CHALLENGE
The prepared salad category has seen good growth in recent years, but as far as Florette is concerned, this is just the tip of the iceberg. Michael Barker reports
lorette has outlined ambitious plans to double the value of the salad category to £1 billion on the back of better understanding of the consumer and an improved fixture in store.
The bagged-salad leader commissioned data experts Kantar Worldpanel to undertake extensive research into the mindset of the modern salad shopper, and aims to use this information to create better, more targeted point of sale information and boost the category.
The research revealed six distinct types of shopper (see page 18), ranging from those that love salad down to those who shun the fixture altogether. Florette's aim for the next 12 months and beyond is to move shoppers up a level to get them buying more often, that's to say turn 'accepters' into 'selectors', 'selectors' into 'adorers' and so on.
'We believe purchase frequency is the key', says Tony Walsh, category manager at Soléco UK. 'We think there is the potential to double the category value to £1 billion. We reckon we can get high-frequency shoppers to buy once a week and infrequent shoppers to buy once a month.'
Enjoyment is going to be key to hitting the target, with the astonishing revelation that as many as 41 per cent of salad shoppers don't really like salad – they are just eating it because they think they should. Inspiring them through recipe ideas and stressing the pleasurable aspects of eating salad is just one way of doing that. 'Some people feel they are not experimenting,' explains Walsh.
A rejuvenation of the look of the fixture is another central plank of the plan, according to Florette, and the company has been visiting retailers to outline its vision of what the salad category of the future should look like.
Food marketing expert Professor David Hughes' comment of a few years ago that the salad category was an impenetrable 'wall of leaves' and Florette has clearly taken this on board with a series of conceptual designs of what a more vibrant, 'easier-to-shop fixture' could look like. So far Walsh reports great feedback and hopes one of the supermarkets will agree to a trial.
Florette believes the category should be segmented 'as the consumer sees it', categorised by different types of leaves such as crunchy salad, single leaf, mixed leaf and salad bowls rather than by brand.
This is backed by lively and colourful shelf barkers, POS recipe information and products such as dressings close at hand. Shop floor staff would also be given extra information to help out the shopper.
It's not necessarily a 'one size fits all approach', and displays and offers could be adapted to meet the specific customer base of each retailer.
It sounds a grand plan, but Florette by no means envisions itself fighting the crusade on its own. 'We want to have a common vision, a shared aim for retailers and producers to buy into,' explains Walsh.
And while it has inevitably been holding discussions from purely a Florette perspective to start with, Walsh hopes that eventually all of the salad industry could get involved and help push the initiative.
It all points to one of the most ambitious plans for category growth anywhere in the fresh produce industry. While Florette won't be drawn on a timescale, it has outlined a series of 'milestones' that it says need to be reached along the way. Currently, the category is worth £549m, with purchase frequency at 14.1 times per year and household penetration at 71.4.
The first milestone will see category value reach £708m and frequency up to 16.5 on the back of lighter shoppers buying more often and a more logical fixture layout. This then progresses to milestone two, where the category hits £825m and frequency 17.4, with NPD, recipe ideas and linked sales abounding.
The ultimate goal of £1bn in sales will be achieved on the back of penetration of 73.1, frequency of 21 and 'adorers' and 'accepters' buying into the category every week, according to Florette's calculations. Even 'avoiders' will buy once a month if this goal is achieved.
Florette says these changes are not just blue sky thinking – the company will 'start talking consumers' language in everything we do' – and is convinced the new approach will bring huge growth to the category. In a sector that is looking for a boost after sustained poor weather, it could be just the strategy the salad industry needs. —
FAST FACTS
The five key questions shoppers ask themselves in the salad fixture:
- What (and when) do I need this for?
- What do I or don't like?
- How fresh does this salad look?
- Is this good value for money?
- Which pack has the longest date?
