Local food tops the list
Figure 1 Values in 2006 and 2009
“Local food tops the list of ethical items that consumers mention when they purchase food” says Dr Sam Hoste of Quantech Solutions, an agri-food consultancy firm. “There are two aspects to this data – the percentage of consumers who mention ethical aspects and the change since 2006.” says Dr Sam Hoste.
The change between 2006 and 2009
Figure 1, derived from the new Food Statistics Pocketbook and quoting the IGD Shopper Trends (IGD, 2009), shows that in 2009 27% of consumers mentioned Local food compared with 15% in 2006. Following Local food there are foods that support Fairtrade at 25% in 2009 up from 9% in 2006. The only item to drop back was organic food that increased from 12% in 2006 to 24% in 2008 but dropped back to 19% in 2009. Figure 2 shows that indexing the data since 2006 the significant change has been in Fairtrade with an increase of 177%; followed by Local food, 80%; Animal Welfare, 64%; Organic; 58%; Country of Origin, 44%; and Food miles 43%.
Figure 2 Index changes
Dr Sam Hoste, said “Local food is the single most important ethical driver of the choices that consumers make. The largest change has been in the Fairtrade category which has increased rapidly in importance since 2006 when it was only mentioned in 9% of cases.”
Added value – Services and Ethical drivers
“These ethical drivers are part of the added value that suppliers can provide and surround a core product”, says Dr Hoste. The concept of a core product surrounded by added value services is shown in Figure 3. “Some firms focus on the basic product, but they are missing the broader competitive landscape where they can add significant value for their customers.”
Figure 3 Added value surround
The conceptual model in Figure 3 illustrates that product value can be extended by an additional layer of external drivers that influence consumer choice. These ‘externalities’ are fickle, as different people focus on different drivers. For some people Local food is paramount, whilst for others it is Fairtrade. Across the board however, the IGD data show that consumer’s interest in the ethical aspects of what they purchase is increasing (see Figure 2).
The key for businesses involved in the Local food sector is to combine Local food with a fair trade message. Local food is very much about supporting local producers, the employment of local people, about consumers knowing the people who produce their food and about the affect of food production on the environment. All of these contribute to the fair trade message.