Archivo de la categoría: retail

Inglorious fruits and vegetables, I will buy you!

Food waste is a major issue in UK. We throw away 7 million tonnes of food and drink from our homes every year, the majority of which could have been eaten. It’s costing £12.5bn a year and is bad for the environment too.

Loads of not-for-profit organisation are trying to raise awarness of the need to reduce food waste. “Love Food Hate Waste” is one of them (backed by Government funding from England, NI, Scotland and Wales).

The french supermarket “Intermarché” has found an amazing solution: “ugly fruits and vegetables” 30% cheaper. (currently 3 million views)

Supermarkets were always scared to buy “ugly fruits and vegetables”, for risk not being appealing to the shoppers. “Intermarché” sold out of them!

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I cannot wait that at least one of the big four (Tesco, Asda, Morrisons or Sainsbury’s) will follow this mindset. 

Meal deals: selling solutions no stuff

“Our homes may be full of cooking books but we’re nation spending less&Less time in the kitchen” this affirmation from Kantar Worldpanel make think me about my fancy colorful books from Jaime Oliver in kitchen…

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32 minutes is the average of how long we spend cooking the main evening meal.

From “15 minutes” with Jamie Oliver TV program to the growth of “Tesco Finest” ready to cook/eat and “Taste-the-difference” (Sainsbury’s) we have evident changes on the shopping bag for the dinner.

So how the retailers are approaching these changes? They’re selling solutions, they’re becoming the Ikea of the food!

“10£ dinner for two” in Marks&Spencer is a good example as how a retailer can take advantage of a lack of time to cook to upsell products per trip. The meals deals are 1/3 of the revenue in the retailer.

Tesco Finest is another example of the approach to make the preparation of the dinner as fancy and ready as it’s possible.

The discounters and convenience stores are the only faces growing this year, one of the reasons is the change of the habits. I will focus on the convenience store, where we go to buy something fast for dinner.  They have a really good opportunity to grow in the mid-week evening meals. Must probably they can benefit for a switching from the main fast food chains. The clearly response from the retailers is new convenience store: as Morrison has opened 100 M local stores and Tesco 150 Tesco Express.

This open a huge spectrum of possibilities to cross categories in the meal deals to create more occasions to eat some products, for example yoghurt as a dessert if you add 1£ more… give me solution if I haven’t planned a dessert.

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What’s gone wrong with Tesco?

I was pretty concerned by Tesco loss of market share. My first thought was: What’s gone wrong with Tesco?

But Tesco is not having a “bad” performance, they’re growing, but behind the market. The grocery market is growing 3.2% and Tesco 2.1%. Sainsbury’s and the discounters are bringing the growth to the market. So good enough is not enough in the competitive market of the grocery in UK.

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Aldi and Lidl present a double digit growth thanks to the change in the shopper habits that starting to consider the discounters as a place for the weekly shopping. I would like to have this growth without the impact of the sales in the new supermarkets that they’ve opened last year.

The other winner is Sainsbury’s, which has achieved 0.4% market share more than the PY. Thanks to the Paralympics sponsorship, Brand Match and own-label investment.

Tesco have to react very fast, they might invest in the two fastest growing grocery channels: online and convenience. But for now they’re promoting a very similar concept to Carrefour Planet in the rest of Europe. The new Tesco in Watford is the jewel for Tesco’s UK operations. It would be great if they can apply some aspects around the full country as Chirs Bush has noted. They’re having a very good engagement with the customers, please check #watfood in Twitter.

Superfoods and “superseeds” raise in the food market

I’m quite curious about the Superfood concept. If people are paying £20 for a bag with powder seeds I would like to know “why”. I’ve loved the Wikipedia definition of “Superfood is a marketing term used to describe foods with supposed health benefits”

As one day BIO denomination was controlled by EU legislation, now it’s the turn of the Superfood term. The new legislation has banned the use term superfood unless it is accompanied by a specific authorised health claim that explains to consumers why the product is good for their health.

Some say superfoods can protect against cancer and heart disease, but others say there is no evidence for this.

Anyway if we check ACNielsen data we can understand that it’s a very prosperous business. Blueberries, Spinach, Salmon, Green tea or Soy are some of the “superfood” products that they have doubled the sales in the past year.

But I’m really interested on the benefits of the seeds. Companies such as Linwood are growing thanks to the superfood products.

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There is only one way to derive nutrition from seeds and that is to eat them raw because when they are exposed to heat, they produce toxic substances. Following you can find a TOP 10 seeds:

1) CHIA SEEDS

2) HEMP SEEDS: aminoacids and high protein percentage

3) POMEGRANATE SEEDS: antioxidants

4) FLAX SEEDS: suppresse rises in blood levels of lipids after a meal and modulate appetite and reduces cholesterol.

5) PUMPKIN SEEDS: rich in proteins

6) APRICOT SEEDS: contain vitamin B17 that attacks cancer cells

7) SESAME SEEDS:  source of manganese and copper

8) SUNFLOWER SEEDS: contain Vitamin E

9) CUMIN SEEDS: are useful for digestive disorders and even as an antiseptic

10) GRAPE SEEDS: have a great concentration of vitamin E, flavonoids, linoleic acid and  polyphenols

But I will focus in the most trendy and expensive: CHIA SEED

The best of the best, consumption of chia seeds could help reduce joint pain, aid in weight loss, deliver an energy boost and protect against serious ailments such as diabetes and heart disease.

Facts about Chia seeds: 
– 2.5 times more protein than kidney beans
– 3 times the antioxidant strength of blueberries
– 3 times more iron than spinach
– 6 times more calcium than milk
– 7 times more vitamin C than oranges
– 8 times more omega-3 than salmon
– 10 times more fibre than rice
– 15 times more magnesium than broccoli

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For sure with these facts in front of me I cannot say I’m not going to try it… Unfortunately it will be difficult to check the miracle results.

However Mr Chia seed… you win! I will include you in my diet

The fights between online grocery stores and convenience stores

Let me start with a few facts and numbers that Kantar Worldpanel supplied to MarketingWeek.

  • 75% of the money spent by households goes on food to be eaten on the same day or by people doing top up shopping
  • 37% goes to top-up shops

The market interpreted these changes and for this reason the big retailers are focusing on the “convenience” store to satisfy the daily needs of the customers. For example Waitrose opened 10 “Little Waitrose” in London in 2013.

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But if someone really made a difference it is Amazon in US. The new platform AmazonFresh allows people to get groceries sent to them for free on the same day as they ordered ($35 minimum amount).

Until now the promotions seemed to be the only hook to buy online. The number of promotions is one reason why people are stimulated to spend more on their grocery shopping online: 42% online against 38% in-store. Instead Amazon has shown that “placement” can be more important that “price” in the online market.

However I still love to see the food that I’m buying and finding inspiration walking around the aisles for my menus and feeling grateful to find a big offer with a red label.

To close, I would like to quote Phil Dorsett, Kantar Worldpanel expert solutions director, “going to buy groceries is one thing keeping internet grocery relatively small: people like seeing THE FOOD. Convenience will be a source of growth for retailers for a good while”.