Joanne Denney-Finch, chief executive of the Institute of Grocery Distribution (IGD) - the food and grocery think tank - is optimistic about the future for local foods and believes that now is the time to go for growth.
She presented her views at The Regional Food Group for Yorkshire and Humber seminar held at Hazlewood Castle, Tadcaster to over 100 local food and drink producers.
Denney-Finch said “Customers want local foods and local food matters to all the supermarkets. So now is the time for local producers to go for growth because I think the potential market is barely tapped yet. There’s still huge scope for growth.”
The three key reasons for optimism are:
1. Consumers are receptive to local foods. IGD research shows that 96 per cent of consumers believe it is important to have a wide range of English food and 69 per cent say it is very important to them. Also 47 per cent say they buy local food on at least a monthly basis.
2. Retailers need local foods. The UK food and grocery industry is extremely competitive, which is good for shoppers as they get lower prices and better services. But in such a market there is a growing need for retailers to differentiate themselves from one another. Differentiation is essential if retailers are to attract new customers to their stores. Local foods can help do this.
3. Entrepreneurial spirit of local producers. There is a lot of talent, energy, enthusiasm along with determination and most important creativity in small and new food businesses. The UK food and grocery industry has always been good at innovation and this is a great asset.
In her speech Denney-Finch explained what is happening in the market place. She concluded by giving advice on what local producers must do in order to succeed.
• Have a Unique Selling Point (USP). Products must stand out from the competition in at least one of the following criteria: taste, availability, freshness, seasonality, convenience, heritage or a new method of production/ packaging.
• Pricing must match consumers’ expectations; you can not maintain a higher price just because a product is local. It must offer a clear consumer benefit to support a higher price. Therefore producers must be efficient and work in collaboration with the rest of their supply chain to ensure costs are managed and kept as low as possible.
• Understand the needs and working methods of retailers (IGD has produced a free guide offering advice*)
• Make use of the Regional Food groups to help promote your products, to seek advice and guidance and to network
• Understand how regional distribution hubs work. They offer advantages to small producers as they can keep cost down and service levels up.
IGD is hosting events throughout the UK to share best practice with local suppliers.
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