Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Monday, April 21, 2008

Frozen resurgence?

Are frozen foods poised to make new inroads because of food inflation? Andrew Phipps of the UK makes a solid case for that outcome in this opinion piece called "Is this the true cost of food?" found at this link on www.talkingretail.com. From the piece:

It's no great secret the hard discounters in the UK are starting to see some traction across their estate; Aldi and Lidl are offering good quality at a good price and people are willing to go a little out of their way to buy into that cheaper way of living.
This time last year the focus of supermarkets was how to make as much money as possible out of the premium lines in store and this contributed to the increases we saw towards the end of 2007.It is likely that while premium ranges remain important, the growth this year may well come from the other end of the offering, the value lines.Meeting the needs of customers by enhancing the offer is going to reap dividends for retailers, particularly in some of the 'forgotten' categories like frozen.This year will see a big comeback for the frozen aisle as people remember the value of buying something, defrosting what you want and saving the rest – the ultimate in portion control.The role of shoppers is to look at what they are buying and using.The fact is that according to recent government figures food accounts for 20% of all domestic waste, food worth in excess of £8bn is thrown away, the vast majority of this still in edible condition. If an average household spends £100 a week on food, that is the equivalent to throwing away over a £1,000 a year. Why would anyone do that? The saving to be made in reducing food waste will offset the increased food costs we are seeing in the UK.The next year or so is going to be tough; prices will continue to rise at a faster rate than income levels.
To retain the shopper of today retailers need to understand how their needs will change in a different market climate with differing dynamics.
The adage 'the cost of a meal can be judged by the cleanliness of a plate' holds true; retailers need to sell what customers want and shoppers have to buy what they need.

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