Richard Shepherd


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Defra Final Exeter Revised Presentation Food Seminar 16th June 2008

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  • Good morning, my name is Richard Shepherd from Agrifood Centre, just to introduce you to the rest of the team here today. Melanie Strickland from SERIO with Rebekah Southern, Project Manager. Ian Whitehead from Sch of Geog-Rural Futures Unit Phil Megicks, Jasmine Williams and Juliet Memery from the Small Business and Services Research Unit The purpose of today’s presentation is to run through the key findings that have been presented in the final report and draw together the conclusions and recommendations which can then be discussed in more detail. The presentation should take around 30 minutes, so it really is top level findings, there is a lot more detail in the report.
  • Richard Shepherd

    1. 1. ‘ Consumer attitudes to Local Food and Drink’ Sandy Park 16th June, 2008
    2. 2. Introduction <ul><li>Aims and Objectives </li></ul><ul><li>Methodology </li></ul><ul><li>The Consumer Element </li></ul><ul><li>The Trade Element </li></ul><ul><li>Conclusions and Recommendations </li></ul><ul><li>Possible Future Work </li></ul>
    3. 3. Aims and Objectives <ul><li>Aim: </li></ul><ul><li>Contribute to knowledge and understanding of factors influencing consumers attitudes and behaviours in the market for local and regional foods in England (PSPI not addressed). </li></ul><ul><li>Objectives: </li></ul><ul><li>To characterise and evaluate the local and regional food industry </li></ul><ul><li>To understand factors influencing purchasing decisions </li></ul><ul><li>To identify and synthesise sources of data relating to consumption and marketing </li></ul><ul><li>To inform future commercial and public policies in the sector </li></ul>
    4. 4. Methodology <ul><li>Secondary Research </li></ul><ul><li>Primary qualitative: </li></ul><ul><li>20 consumer focus groups </li></ul><ul><li>130 in-depth trade interviews </li></ul><ul><li>Primary quantitative: </li></ul><ul><ul><li>1,223 online consumer surveys </li></ul></ul><ul><ul><li>347 self-completion trade surveys </li></ul></ul>
    5. 5. Consumer Element
    6. 6. <ul><li>Defining the concepts of ‘local’ and ‘regional’ food and drink </li></ul><ul><li>Actual and intended buying behaviour (for use at home and eating out) </li></ul><ul><li>Reasons for buying and barriers to purchasing local and regional food and drink </li></ul><ul><li>Factors influencing buying behaviour </li></ul><ul><li>Classification of local and regional food and drink buyers </li></ul>Main Topics
    7. 7. <ul><li>Qualitative: </li></ul><ul><ul><li>20 focus groups across the 9 English regions, urban and rural </li></ul></ul><ul><ul><li>Homogenous by lifestyle, gender and social group </li></ul></ul><ul><li>Quantitative: </li></ul><ul><ul><li>1,223 online respondents </li></ul></ul><ul><ul><li>Interlocking quota sample </li></ul></ul>Research Process
    8. 8. <ul><li>Local </li></ul><ul><li>Local produce generally relates to the immediate vicinity – almost universally associated with rural or close to rural areas </li></ul><ul><li>Regional </li></ul><ul><li>Regional produce defined as coming from specific geographical area – quality and premium associations based on tradition and reputation </li></ul><ul><li>E.g. Welsh Lamb, Kentish strawberries, Devon Cream </li></ul><ul><li>Urban and rural differences </li></ul>Definition of Local & Regional Food & Drink
    9. 9. <ul><ul><li>Local Food and Drink </li></ul></ul><ul><ul><li>Actual and intended purchasing frequency is variable </li></ul></ul><ul><ul><li>Overall quite high when buying for home use </li></ul></ul><ul><ul><li>Not when eating out </li></ul></ul><ul><ul><li>Regional Food and Drink </li></ul></ul><ul><ul><li>Similar pattern, but smaller proportion actually buying </li></ul></ul><ul><ul><li>Types of produce, occasions and outlets </li></ul></ul>Actual and Intended Buying Behaviour
    10. 10. <ul><li>Reasons for buying: </li></ul><ul><ul><li>Support for local economy </li></ul></ul><ul><ul><li>Food and drink characteristics: taste, freshness and provenance </li></ul></ul><ul><ul><li>Sustainability, reduced pollution and food miles </li></ul></ul><ul><ul><li>Barriers include: </li></ul></ul><ul><ul><ul><li>Cost </li></ul></ul></ul><ul><ul><ul><li>Availability, accessibility, and inconvenience </li></ul></ul></ul><ul><ul><ul><li>Limited information and promotion </li></ul></ul></ul><ul><li>Attitudes generally positive when buying for home </li></ul><ul><ul><li>Not always translated into actual buying behaviour </li></ul></ul><ul><li>Negative eating out effects were associated with lack of information and expense </li></ul>Reasons for Buying and Barriers to Purchasing
    11. 11. Classification of Local & Regional Food & Drink Buyers <ul><li>Devotees (23%) </li></ul><ul><li>More women </li></ul><ul><li>More 45+ </li></ul><ul><li>More rural </li></ul><ul><li>Fewer London and NW </li></ul><ul><li>More SW, EA and Y&H </li></ul><ul><li>More married </li></ul><ul><li>More degrees and A levels </li></ul><ul><li>Persisters (25%) </li></ul><ul><li>More men </li></ul><ul><li>More 55+ </li></ul><ul><li>More rural </li></ul><ul><li>Fewer 35-44 </li></ul><ul><li>Fewer London </li></ul><ul><li>More SW and EA </li></ul><ul><li>More £15-25,000 </li></ul><ul><li>Fewer C1 </li></ul><ul><li>Fewer degrees </li></ul><ul><li>Abstainers (36%) </li></ul><ul><li>More women </li></ul><ul><li>More 18-44 </li></ul><ul><li>More urban </li></ul><ul><li>More London, SE and NW </li></ul><ul><li>Fewer SW and EA </li></ul><ul><li>More single </li></ul><ul><li>More inner city and town centre </li></ul><ul><li>More £30-50,000 income </li></ul><ul><li>More C1 </li></ul><ul><li>Cynics (16%) </li></ul><ul><li>More men </li></ul><ul><li>More 55+ and 35-44 </li></ul><ul><li>More urban/inner city </li></ul><ul><li>Fewer SW </li></ul><ul><li>More GCSEs </li></ul>
    12. 12. Trade Element
    13. 13. <ul><li>Current patterns of local and regional food and drink purchasing </li></ul><ul><li>Motivations and barriers to local and regional food and drink purchasing </li></ul><ul><li>Local and regional food and drink buying criteria </li></ul><ul><li>Decision making processes and units </li></ul><ul><li>Planned future for local and regional food and drink </li></ul><ul><li>In the context of: </li></ul><ul><li>General issues with respect to local and regional food and drink </li></ul><ul><li>Specific issues with respect to the respondent’s organisation </li></ul>Main Topics
    14. 14. <ul><li>Face to face interviews included all major retailers, wholesalers, major food service operators, trade associations and individual businesses </li></ul><ul><li>Qualitative - 130 respondents </li></ul><ul><ul><li>30 face-to-face </li></ul></ul><ul><ul><li>100 tele-depth </li></ul></ul><ul><li>Quantitative - 347 respondents </li></ul><ul><ul><li>65% independent retail/foodservice </li></ul></ul><ul><ul><li>35% larger groups </li></ul></ul><ul><ul><li>Roughly split 50% retail, 50% foodservice </li></ul></ul>Research Process
    15. 15. <ul><li>Varies: </li></ul><ul><ul><li>Between 30-50 mile radius/within County for local </li></ul></ul><ul><ul><li>Within Counties or Region for regional e.g. EAFG, ToW, DY/YHRFG </li></ul></ul><ul><li>Function of scale of operation </li></ul><ul><ul><li>Larger = larger radius </li></ul></ul><ul><ul><li>Smaller=smaller radius </li></ul></ul>Definition of Local & Regional Food & Drink
    16. 16. <ul><li>Growing in importance </li></ul><ul><ul><li>Mainly in larger retail/foodservice </li></ul></ul><ul><ul><li>Independents less so </li></ul></ul><ul><li>Growth will continue both for local and regional food and drink </li></ul>Relative Importance of Local & Regional Food & Drink
    17. 17. <ul><li>Qualitative - trust, freshness/quality, environment, provenance, local economy, consumer demand </li></ul><ul><li>Quantitative – local economy, freshness, quality, consumer demand </li></ul><ul><li>Significant changes in purchasing structures for larger retail/foodservice operators </li></ul><ul><li>Concerns over availability, logistics and QA, mainly with the larger operators </li></ul>Purchasing Behaviour: Including Commercial & Non Commercial Drivers
    18. 18. <ul><li>Higher consumer demand </li></ul><ul><li>Lower price of products </li></ul><ul><li>Better quality and range of products </li></ul><ul><li>Support for the local economy </li></ul>Future Purchasing Behaviour
    19. 19. <ul><li>Majority actively promote local food and drink </li></ul><ul><li>Most common methods were in-store/establishment point of sale </li></ul><ul><li>Local offer alongside other brands </li></ul><ul><li>Low awareness from the trade of the RFGs </li></ul><ul><li>Local and regional food and drink tends to be fresh product, veg, dairy and meat and local beers/wines </li></ul><ul><li>Market value estimated to be £4bn with £2.5bn retail/foodservice and £1.5bn farm shops, markets and mail order </li></ul>Marketing and Promotion of Local & Regional Food & Drink
    20. 24. Conclusions, Recommendations and Possible Future Work
    21. 25. <ul><li>Definitions of local and regional similar across consumer and trade </li></ul><ul><li>Growing demand for local and regional food and drink - consumer led, based on positive attitudes towards produce </li></ul><ul><li>But positive attitudes may not always translate into buying behaviour </li></ul><ul><li>Differences between buyers exist </li></ul>Conclusions
    22. 26. <ul><li>Local and regional food purchasers can be classified into four main consumer segments </li></ul><ul><li>Barriers to consumer buying exacerbated by logistical and distribution implications </li></ul><ul><li>Significance of larger trade players for future growth </li></ul><ul><li>Mechanisms needed to support/increase availability </li></ul>Conclusions
    23. 27. <ul><li>Targeted marketing strategy </li></ul><ul><li>Educating consumers </li></ul><ul><li>Marketing support for specialist outlets in urban areas </li></ul><ul><li>Overcoming restrictions in the supply chain and raising awareness of accessibility by large scale food trade (both retail and food service) </li></ul>Recommendations
    24. 28. <ul><li>Potential for further growth evidenced through this research but other areas of research may facilitate further understanding around: </li></ul><ul><ul><li>How consumers make trade off decisions </li></ul></ul><ul><ul><li>Viability of using retailer and food service loyalty scheme databases </li></ul></ul><ul><ul><li>Models for regionally based distribution networks </li></ul></ul>Possible Future Work
    25. 29.