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MP15051
MAPS TRENDS IN FOOD SHOPPING JULY 2001
Overview

Editor: Simon Taylor
ISBN: 1-86111-367-6

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TABLE OF CONTENTS

Executive Summary


1. Introduction


2. Definition

Choice and availability of produce
Lifestyle
Health Issues
Environmental concerns
Marketing Methods
Choice of Supply Points


3. Strategic Overview

Consumer Expenditure
Expenditure
Expenditure on Type of Food
Table 2: Consumer Expenditure on Food by Sector (£m at Current Prices), 1996-2000
Figure 1: Consumer Expenditure on Food by Sector (£m at Current Prices), 1996-2000
Meat
Poultry
Fish
Fruit and Vegetables
Processed Food
Dairy Produce
Bread and Cereals
Expenditure on Types of Food by percentage
percentage of Total Consumer Expenditure on Food ( percent), 1990 and 2000
percentage of Total Consumer Expenditure on Food ( percent), 1990 and 2000
Quarters (£m at Current Prices), 1990 and 2000
Growth Markets
Convenience Food
Organic Food
Vegetarianism
Ethnic Food
Reduced-Fat Food
Factors Affecting food Shopping habits
Lifestyle
Type and Number of Households
Eating Habits
Time Poor, Money Rich
Working Women
Ownership of Certain Durable Goods
Attitudes Towards Expenditure
Availability of Produce
Location of Store
Health Issues
BSE
Genetically Modified Food
Food Unsuitable for Human Consumption Entering the Food Chain
Foot and Mouth Disease
Chemically-Enhanced Food and Artificial Additives and Colourings
Food Poisoning
Obesity
Food Allergies
Irradiation
Functional Foods
Positive Effects of Different Foods
Ethical Considerations
Compassion in Farming
Fair Trade
Environmental Concerns
Marketing
Loyalty Schemes
‘Buy One, Get One Free’ and Other Volume Discounts
Branding
Generic Marketing


4. Consumer Issues

Household Expenditure
1994-1995, 1998-1999 and 1999-2000
Table 6: Average Weekly Household Expenditure on Food by Category of Food (£), 1995-1996 and 1999-2000
National Food Survey
Expenditure
Consumption
Where Households Choose to Shop
National Opinion Poll
Choice ( percent of respondents), 2001
Low Prices
Wide Range of Choice
Car Parking and Petrol ( percent of respondents), 2001
Proximity or Location of Retailer
Availability of Car Parking and/or Petrol Facilities
Schemes On a Public Transport Route ( percent of respondents), 2001
Promotions and Loyalty Schemes
On a Public Transport Route
Large and Varied Selection of Organic Foods ( percent of respondents), 2001
Availability of Cash Machines
Large and Varied Selection of Organic Foods
Other Reasons
Informing and protecting the Consumer
The Ministry of Agriculture, Fisheries and Food
Food Standards Agency
European Food Authority
The Food Commission (UK) Ltd
The Soil Association
Food Labelling


5. Supplier Issues

Background
Current Issues
Local Retailing Fights Back
Sunday Trading and 24-Hour Opening
Accusations of Profiteering
Production Practices
GM-Free Produce
The Effect of Foot and Mouth Disease on Meat Prices
Supplier Profiles
J.Sainsbury PLC
Table 11: J Sainsbury PLC Financial Summary† (£m and percent), 1999 and 2000
Tesco PLC
Table 12: Tesco PLC Financial Summary† (£m), 1999 and 2000
Safeway PLC
Table 13: Safeway PLC Financial Summary† (£m and percent),1999 and 2000
Asda Group Ltd
1999 and 2000
Somerfield PLC
1999 and 2000
Marks and Spencer PLC
(£m and percent), 1999 and 2000
Iceland Group PLC
(£m and percent), 1999 and 2000
William Morrison Supermarkets PLC
1999 and 2000
Other supplier news
S & A Foods
Ethnic Cuisine
Discovery Foods
Go Organic
Colman's French Mustard
New Product Launch Information
Yo to Go Sushi
Heinz Baked Beans
Nescafé Coffee
Gold Top Milk
Unattended Delivery Unit
Promotion
Current Promotions
J Sainsbury PLC
'Give me Five'
Tesco PLC


6. Distribution

Distribution of different products
Purchase ( percent), 1999-2000
type of shop
Supermarkets
Convenience Stores
Warehouse Clubs
The High Street
Farm Shops and Market Gardens
Home Shopping
Online Suppliers
Television Shopping


7. Future Prospects

Expenditure
Expenditure (£m), 2001-2005
Expenditure (£m), 2001-2005
Competition
Products
and processors
From gate to plate


8. Further Sources

Trade Publications
Company Report and Accounts
Government Sources
Other/Miscellaneous
Bonnier Information Sources
Government and Official Sources
Other Sources

Key Note Research

The Key Note Range of Reports

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EXECUTIVE SUMMARY

Changing lifestyles mean that eating habits, and consequently food shopping habits, are altering. Factors such as access to a car, ease of public transport, ownership of appliances including microwaves and deep freezers, and availability and prioritising of time all affect the way we shop.

Post-war Britain was accustomed to stretching meagre supplies, as many foodstuffs remained in short supply. Feeding the family was a labour-intensive occupation with a greater degree of self-sufficiency. Now, the dramatic increase in the number of working women and in the number of single households has changed the pattern of daily life. Recent research suggests that we have become a nation of 'grazers' rather than sitting down to set, regular family meals. An extensive market has thus emerged for snack food and preferably snacks that can be eaten 'on the hoof' at that.

While many shoppers will do a weekly bulk shop from the supermarket, there is still a demand for top-up shopping from convenience stores. In fact, such is the demand for ready prepared meals and snacks that the main supermarket chains, once primarily associated with out-of-town superstores, are returning to High Street sites, selling sandwiches and snacks at lunchtime before changing the stock to ready meals and wine as workers head home.

A proliferation of cookery books and 'celebrity' chef programmes might have us believe that we have become a nation of food lovers. We are, however, curiously reluctant to pay for it, spending less of our disposable income on food than ever and less than our European counterparts. On the one hand, shoppers in the UK happily pay over the odds for products saving time and effort, with ready-washed, mixed salads and peeled vegetables being prime examples, yet on the other are relentlessly seeking out supermarkets' value lines.

However, a National Opinion Poll commissioned for this report detects a slight shift in opinion, with more respondents saying that a wide range of choice of products is more important than low prices. A previous survey undertaken in 1998 found that 71 percent of respondents tended to shop where they were assured of low prices, while 69 percent cited a wide choice as important. The survey carried out for this report concluded that 60 percent felt choice important and that the percentage of those governed by low price had fallen to 57 percent.

The retail grocery market is fiercely competitive and has been accused of squeezing farmers and suppliers to keep its own margins intact as it offers cheap food to shoppers. There have been accusations of profiteering from the foot and mouth crisis, with the Prime Minister accusing supermarkets of having farmers in an 'armlock.

Food safety scares have provoked people to turn to organic food that, being more expensive, grows market value. However, even the organic movement has recently been tainted with bad publicity with a ruling by the Advertising Standards Authority that its claim to be free from artificial pesticides and fertilisers is illegal. Additionally, no effective European Union (EU) system is in place to check on the origins and authenticity of organic food and, because so much is imported, there have inevitably been reports of bogus organic food reaching our shops.

Certainly, there is now an impressive choice of products with endless different varieties of, for example, fruit and vegetables. In fact, there is a school of thought that blames the increasing incidence of food allergies on the fact that our diet is so varied and includes exotic produce that is not natural to our immediate environment.

The major grocery chains may have been cleared of operating a cartel but their power is indisputable. They offer us the cheap food we have come to expect but, in the light of so many disturbing facts about intensive food production and in a current wave of sympathy towards the farming industry, it is likely that at least some of us will learn that good food must be paid for and will make an effort to buy directly from source. The growth in popularity of farmers' markets would seem to stand testament to this and the Internet offers suppliers and producers easy access to their end-user, knocking out the profits of retailers.

Text © 2001 MAPS

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Last updated by Paul Tucker 22nd August 2001