The report revealed that the UK foodservice market in 2002 was the fourth biggest consumer market with an estimated 264,000 outlets (compared with an estimated 3,000 in UK retail). The market was worth £22.89 billion in sales a year (Foodservice Intelligence 2001) and could be worth an estimated £38bn by 2010 (IGD 2000).
“Highly competitive, the market faces continuous pressure from imports especially due to current favourable exchange rates. Political, social and technological factors are continually changing, exerting pressure on this market and hence provide opportunities and threats for key players in it,” the report said. The accession of 10 new member states into the European Union has, of course, made this observation even more relevant.
Foodservice is split into two distinct sections: profit and cost. The cost sector is expected to decline in value, while the profit sector will grow in value. However the number of meals served within the cost sector means it is important contributor to the volume of meals served in the total foodservice market.
At the time of the report, the chipped potato market was worth the most in terms of value, £279.95m, but the fish and chip shop sector consumed the most in terms of volume - 782,758 tonnes of fresh with skins (this does not include fast food and travel sectors). Merchant/growers were the primary distributors of fresh with skins while frozen food wholesalers remained the most popular route to market for chipped and other potato products.
Key changes over the five years to 2002 within the potato market included a 15 per cent rise in the usage of potatoes by pubs. The volume of potato products increased significantly, by 20 per cent. Innovation and new product development in this area, particularly the frozen variety, enables foodservice operators to serve food that is both appealing to their customers and quick and easy to provide. “Calculating the percentage of imported product into the foodservice market is difficult, however it is clear that imports are a threat for domestic potato production,” said the report.
Recommendations for the BPC’s activities in this area concentrated on three specific sectors: fish and chip shop trade, school meals catering sector and developing a further understanding into six key operators buying habits.
The BPC has acted upon all three, but as far as fish and chip shops are concerned, the BPC has made impressive strides in the short time since the report.
National Chip Week is now a part of the promotional calendar, with this year’s event seeing Great Britain’s fish and chip shops urging customers to ‘go on, give into the taste’ of their chips from February 16 to 22.
They offered customers the chance to win a TV DVD home cinema system or concert tickets or best of all delicious, free chips.
The fun, week-long promotion was organised by the BPC. Marketing manager Kathryn Race says: “Our love affair with chips continues. Consumers of all ages tell us chips provide comfort and remind them of childhood experiences. Chips are definitely a popular way of eating potatoes as one in four of all potatoes grown by British farmers are eaten as chips.”
Chips can form part of a balanced diet too, she told consumers. For instance, an average portion of cod and chips contains at least half the fat and fewer calories than a serving of either chicken tikka masala and pilau rice, or sweet and sour pork and egg-fried rice
The campaign was supported by thousands of fish and chip shops across Great Britain, all displaying the ‘Love Chips’ slogan and who, between them, served up around four million chip portions during the week.
Consumption figures show that chips remain a popular choice of eating potatoes with around 38,000t of potatoes in the UK used to make chips every week. As well as chip shops, potato merchants, processors, caterers, retailers and many third parties all took part in the high profile consumer promotion.
Major retailers Tesco, Sainsbury’s, Safeway, Asda, Somerfield, Morrisons, Waitrose and Harrods carried out in-store promotions linked to chips and potatoes. Eleven commercial radio stations ran promotions during National Chip Week reaching an audience of four million listeners. The BPC delivered freshly cooked chips to news editors and programme presenters during prime time slots at hundreds of TV, radio and newspaper offices. In addition, the News of the World offered its readers free chips from Harry Ramsdens restaurants and many national and regional consumer media carried features and articles linked to National Chip Week and the popularity of chips.
Chip Week generated press and media coverage valued way above the industry’s initial investment, explains Race. “Retailers reported an increase in sales and thousands of fish and chip shops, caterers and pubs saw demand for chips swell weeks after the promotion.”
The BPC has also lent its support to the British Quality Chip Charter (BQCC), which aims to defend the UK market for fresh potatoes and provide a better return for growers and merchants.
Managed and run by the British Potato Marketing Association (BPMA) and approved by the National Federation of Fish Friers (NFFF) and the BPC, the scheme aims to supply fish & chip shops with potatoes that are of a consistent quality standard. Potatoes that have met that standard will carry a distinctive BQCC logo on their bags.
The BQCC was launched in 2003 and merchants supplying under the scheme are required to meet certain specifications with regards to dry matter, size, fry colour and defect levels of the potatoes supplied.
The BPC website - www.britishpotato.co.uk - sets out how the BQCC scheme can benefit businesses in the sector:
• With increasing amounts of par-fried product being marketed as a convenient and consistent alternative to fresh potatoes the BQCC label offers the opportunity to develop confidence amongst friers that fresh British potatoes and their suppliers can meet friers requirements;
• The scheme aims to target those friers who are interested in paying for consistent quality potatoes. These friers recognise the additional profits to be made from the benefits identified within the specification;
• Establishing a consistent quality supply develops more customer loyalty, and therefore repeat business;
• By supplying on a regular basis to a consistent quality, merchants will be in a much stronger position in the future to agree contract prices with friers.
It may be just one area of the BPC’s focus, but chipping away at a well-established and lucrative market is bringing consistent returns.
No comments yet