Sales decline flattens on organics as interest rises

It’s no secret that the organics category suffered more than most during the recession, with impulse buyers in many cases turning their backs entirely on the range and the various messages behind the movement failing to help it maintain the support enjoyed by offers such as Fairtrade, local or free range.

However, last month, Soil Association director Patrick Holden told FPJ that the sales decline in the organics category was flattening out, after admitting that sales declined by 13-14 per cent over the past 12 months as the category suffered in comparison to other “ethical” shopping movements. Holden told FPJ that he believed the “systemic approach” of organics - which covers the environment, sustainability, ethics and health - had not held up so well.

However, he threw down the gauntlet for the sector to continue to try to gets its message across to consumers. The Organic Trade Board’s (OTB) new website will attempt to fulfil just that role.

The site - www.whyiloveorganic.co.uk aims to provide clear advice for consumers on the benefits of organic products. The new website will form an anchor for a UK-based PR campaign and aims to become the destination site for both organic supporters and interested consumers. In addition, social networking activity on Facebook and Twitter will continually update members on news from the organic industry.

The new site will showcase the results of recent research commissioned by the OTB, looking into current consumer attitudes in the UK to organic food. The research focuses on key areas of consumer confusion such as elitism, price, taste and wellbeing.

The website will also feature links to key organic bloggers, as well as sections entitled Unravelling Organic and Reasons to Love Organic. In addition, a News and Updates section will regularly be refreshed with content and news from the organic industry, to keep the site relevant and up to date.

The new website hopes to help clarify some of the myths and confusion that surround organic food and farming.

Finn Cottle is a trade consultant at the Soil Association who is working with the OTB. She tells FPJ: “The new website is the anchor and backbone to the campaign that the organics industry has kick-started this year to revitalise interest in organics and remind consumers about organic food and drink. The tone and style [of the website] is hopefully one of communicating organics as something that is accessible for everyone, making it easy to understand and giving clear messages. We want to engage more and more and communicate our message in a simple language.”

Cottle believes that the message on organics is not confused, but that consumers are bombarded with so much information about food that simple ideas just aren’t getting through.

“One-dimensional messages are easier to take on board,” she tells FPJ. “But the beauty of organics is that it answers on so many levels. It is a lot to ask a consumer to take so many messages on board, but organics is complex and not a singular message - hence why it is hard for some consumers to pick up. The new website will aim to facilitate decisions and help them decide which motivator for purchasing organics is theirs.

“The core online message, which we will use in some of the advertorials coming up in The Guardian this month, is that there are many different reasons why people buy organic - some buy it for the environment, some for animal welfare, some for wellbeing, etc… The online message is definitely about the spread of different people buying organics.”

The OTB is made up of a group of key organic companies and organisations. In the autumn, the consortium will launch a major integrated marketing campaign in a bid to grow organic sales by 15 per cent over the next three years. There are now more than 65 pledgors involved in the campaign, as well as Tesco and Waitrose.

Cottle says: “We have come past the big dip [on organics] that everyone experienced in the summer and the retailers have refocused their energy on organic ranges, especially in ensuring that they have the right choice of organics in the fresh produce fixture…

“The decline [in sales] is decreasing, which is fantastic,” says Cottle.

“The retailers have restated their support for organics - not all, but some - and we have definitely seen the category re-energised since the start of the year. There are already promotions on organics helping drive consumers and there is noticeable interest on shelf.”

Cottle believes that the focus on value over the last 12 months has shifted and that attention has now been returned to organics. “We hope the campaign and education programme will complement the rising sales figures,” she adds. “The organic consumer is still there and still wants that choice.”

EU ORGANIC LOGO SPARKS DEBATE

The European Commission’s winning design for the new EU organic logo, unveiled at the start of February, has caused consternation in the UK industry, discovers Laura Gould.

A pan-European contest to select a new EU organic logo saw a new “Euro-leaf” design selected last month.

The new logo will be obligatory on all pre-packaged organic products that have been produced in any of the EU member states and meet the necessary standards from 1 July. It will be optional for imported products.

Other private, regional or national logos will be allowed to appear alongside the EU label and the organic farming regulation will be amended in the coming weeks to introduce the new logo.

Mariann Fischer Boel, commissioner for agriculture and rural development, said: “I’m delighted that we now have a fresh EU organic food logo.

“This exercise has raised the profile of organic food and we now have a logo that everyone will be able to identify with.”

But the UK industry sees the move as yet another layer of bureaucracy that could further confuse consumers, when there is already ample signage to indicate if a product is organic or not.

Fresh Produce Consortium (FPC) chief executive Nigel Jenney tells FPJ: “Our understanding is that the European Community wished to help consumers by strengthening the identity of organic products produced within EU member states.

“It’s important that consumers can identify clearly the products they seek. However, there are already well-established logos used in the UK to identify organic produce. Without significant EU investment in its promotion, this one is likely to be ignored or cause more confusion among consumers.”

The Soil Association, which certifies 80 per cent of the organic produce sold in the UK, has also questioned the point of the new Europe-wide logo. Molly Conisbee, director of communications and campaigns at the Soil Association, tells FPJ: “The Soil Association doesn’t believe the EU logo will address the desire of consumers to know more about the provenance of their food and its journey from the farm to plate, or help to develop a connection between food producer and eater.

“We don’t think people who buy organic food are concerned about EU origins, as much as that it was produced to high environmental and animal welfare standards, and is free from GM and harmful additives.”

The logo will be mandatory, as is the Soil Association logo, so any products certified by the latter will carry both marques.

The FPC’s concerns go even further, with the trade association worried about the practicalities of applying the logo in certain examples.

“There are problems with regard to fitting the logo, even at its permitted reduced size, on certain packaging,” explains Jenney. “For example, the lack of space on a quick-lock tag on organic spring onions, leeks and bunched beetroot makes it very difficult to accommodate the logo. We have requested a derogation where the type of packaging and available space is insufficient/unable to carry the logo, even at its permissible reduced size.

“We have also asked for further clarification with regard to the position of loose fresh produce, which is not referred to specifically in the draft regulation.”

According to the original regulation, article 23, the EU organic logo is voluntary for such produce.

Jenney adds: “The FPC consulted its members, which include suppliers of organic produce, and they raised concerns with regard to the application of this logo and whether it would benefit the consumer. We strongly believe that this logo will lead to further confusion among consumers regarding organic standards, particularly as the selected design does not immediately associate itself with ‘organic’.

“We also commented that the chosen design for the EU organic logo does bear a resemblance to the LEAF marque, which is carried on products in the UK and could lead to confusion.”

The FPC has requested feedback from DEFRA and is waiting to advise its members further.

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