It has now become a well-trodden argument that the organic sector lacks the clarity of message to fully hit home why the premium is worth paying.
The various messages relating to sustainability, the environment and healthy eating are seen as confusing for a modern consumer too busy whipping down the supermarket aisles to take in any further information. It is campaigns such as Organic Fortnight in September, run by the Soil Association, that can engage and inform consumers in a more relaxed environment and fully get the message across. A number of events including a large-scale food festival at Bristol’s Harbourside, which drew in passing trade and events at more than 100 farms, saw some considerable success.
Sales of organic food and drink through supermarkets reached £82 million during September, an increase of 15.5 per cent on the previous four weeks, data from Kantar Worldpanel shows.
This is the highest increase of four-weekly sales in the last 18 months - surpassing sales of organic products during Christmas in 2008 and 2009.
“The organic market experienced a substantial increase in value during September, bringing sales back to a level last experienced in late 2008,” Soil Association trading director Finn Cottle tells FPJ.
“This improvement was fuelled by the success of the Soil Association’s Organic Fortnight in the first two weeks of the month and the support given by retailers and brands. The decline in the market has now reached two per cent for the rolling 12-week period to 3 October 2010. Confidence in the market appears to be high and consumers are returning to more premium food - during Organic Fortnight, there was a significant amount of promotional activity within the produce sector, and specifically Tesco complemented the offers with dedicated point of sale [material], highlighting the benefits of organic. Waitrose was also very active in communicating the message about the fortnight as it coincided with the relaunch of the Duchy from Waitrose brand.”
Another interesting move of late came earlier this month with the announcement that the US organic food retailer Whole Foods Market is to open an outlet outside of London in the UK for the first time. The retailer has announced it is to open a store in Giffnock in Glasgow as well as a sixth London outlet in Richmond upon Thames. Organics businesses will be watching the move with interest as a bias towards London and the South East is prevalent in large-scale organic retailing in the UK. Cottle says: “This is a good move for them but it is far too early to comment as the site will not be up and running for a number of years - organic purchasing does have a much higher concentration in London and the South East, partly due to the concentration of supermarket availability and concentration of consumers.
“The profile of the organic consumer is more weighted towards ABC1, although there is still a third of organic sales purchased by the lower socio-economic groups. If there was more robust data available that included sales through independent stores, farm shops, box schemes etc, then the pattern may look less pronounced in the South East and show the high level of support within rural communities in other areas.”
Few would argue that the organic market is looking more healthy in the last few months and many believe that the market is now stabilising and will experience a conservative level of growth in the next year. Organic brands are performing well and certain sectors have been much more resilient throughout the economic downturn, proving that consumer loyalty to certain products, rather than organics as a whole, is still strong. The Soil Association’s objective is now to reach those consumers who have lapsed and to encourage loyal consumers to buy more and more often.
Wight Salads, which is one of the leading organic tomato suppliers in the UK, suffered as demand for organics nosedived in the recession. The company admitted having to sell a large quantity of organically grown fruit as conventional product, which hit margins.
The recent success of Abel & Cole will have proved encouraging for many. Following a financial restructure, it has been reported that weekly sales are up 15 per cent on last year. The company claims to be on track to post sales of £32m-£33m for next year and aims to hit £50m in the next five years.
CERTIFICATION SOLUTION NEARS FOR ORGANIC GLASSHOUSE GROWERS
Wight Salads Group has been expanding its organic range over the last 12 years and now around a third of its production is organic. Agronomy and technical manager and organic glasshouse production specialist Dr Philip Morley gives an insight into the group’s work in the sector and the development of standards.
We have come a long way in the last decade, developing our own unique methods and techniques to deliver the best product to our demanding supermarket customers. As well as optimisation of our biological methods of growing, we have been working with the Soil Association to help develop organic glasshouse standards in the UK. We also regularly meet with ECOCERT, which is our certification body in Portugal.
Much of our success in organic production is due to the exceptional quality of our growers. Organic production is far more complex and difficult than conventional, chemical fertiliser-based production. Top quality applied research is also a major factor and it has been a real pleasure to work with some of the industry’s top researchers. Over the last five years, I have participated in research funded by the Horticultural Development Company worth in excess of £400,000 and much of it is directly applicable to the organic methods used at Wight Salads.
Indeed, developments made in organic production can be used to improve conventional production as well. And looking to the future, I believe the biggest gains over the next decade will be made in developing a deeper understanding of the biological aspects of soil, both in organic and conventional situations. This deeper understanding of the complexity of soil and the interactions between plant and soil will be fundamental to the sustainable future of crop production.
In the early 1990s, when the original organic standards (EC2092/91) were drafted there was an obvious lack of detail relating to glasshouse production. The standards often needed significant interpretation to make them applicable to this unique situation.
In 1999, I worked with colleagues from other UK companies to set up the UK Glasshouse Organic Standards Working Group, which meets regularly with the Soil Association to discuss the detail of organic standards and the need for specifics applicable to protected cropping.
Earlier this year, the long awaited consultation of EU Organic Glasshouse Standards began. And we are now entering the final stages of a full EU consultation of the review of glasshouse regulations in the EU and expect a final draft to be published in 2011.
Consultations in the UK have been extensive and have aimed to involve as many interested parties as possible. Organisations such as the excellent Organic Growers Alliance have put forward representations from small and large growers alike. The conclusions to that consultation are currently being discussed by the Soil Association’s horticultural standards committee for submission to the EU body tasked with developing the standard.
The challenge for the organic movement over the coming decade is to maintain the separation between organic and conventional production and assure the integrity of organic production from wherever it is sourced. Moreover, if we are to continue the expansion and availability of organic products as well as demand, we will need to make sure as many people, both consumers and producers, are involved in the conversation developing the way ahead. The Soil Association is doing a fantastic job in educating consumers on the benefits of organic production, but we as growers can perhaps do more. Our passion has always been to produce the best tasting, most nutritious food using organic methods.
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