attitudes to local a presentation to fdin 16 may 2007

Attitudes toLocalA presentation to FDIN

16 May 2007

© Dragon 1 Craven Hill London W2 3EN +44 (0)20 7262 4488 2

Agenda

• What ‘local’ means to consumers

• How far is local

• Is everything going to ‘go local’?

• The role of local

• Who can do local

• Conclusions

What ‘local’ means


Local is …

• Highly emotive for consumers.

• It the most motivating way of talking about food compared to Fairtrade, organic, sustainable, responsible etc.

• Consumers passionately positive about local and had very little negative to say about it.

• What short comings there are forgiven because they are seen as re-affirming the positive values (short shelf life, muddy, ugly food)

A great way to consumers hearts


Mood Boards

Fresh natural and regional


Local is about taste

• The strongest driver for local is the perception of vastly superior taste

“taste like it should”

“tomatoes taste like tomatoes”

“I make my own juice and I wont use anything except carrots that I’ve bought from a market, otherwise they taste of chemicals not carrots”

“it tastes hugely better”

“it’s like a treat”

Strong consumer benefit


Local is about freshness

• Taste is driven by freshness. Produce is grown closer to home, so consumers assume it has had 48 hours to ripen if bought from a farmers market vs weeks if bought from a supermarket.

“strawberries and raspberries are best if from Kent or Scotland”

“for fresh produce its got to be within 50 miles so its fresher”

• As less transport is required and shelf life is shorter consumers perceive that no pesticides are used.

“its more natural and not covered in chemicals”

Better quality


Local is about regional specialties

• For other products regional specialities and expertise are seen as more important eg. Dorset Blue cheese, West Country farmhouse cheddar, Welsh lamb

“Jersey Royal Potatoes and Welsh Lamb”

“Aberdeen Angus from Scotland is better than Argentinean beef”

• There is an association with the actual location. The experience of eating food from the region in the region is expected to be superior to eating it in London.

“Welsh lamb taste different if you are in Wales”

Connects us to the countryside


Local is about provenance

• On a trust level local food is seen as being traceable.

“during all the BSE stuff I started buying my meat from a butcher, he knew exactly where the meat came from”

• The downsides are just accepted as proof of provenance.

“farmers markets’ veg still has the mud on it, it looks like its been pulled out of the ground and put in a basket vs being sprayed with chemicals and covered in plastic”

Trusted and authentic


Local is about craft

• Consumers romanticise about a time when products were lovingly hand crafted probably to handed down recipe.

• The story behind where a product comes from gives a sense of care and craft and heightens expectations of taste and quality.

Artisanal cues are key


Local has a human face

• Local is more personal

“you probably know the farmer selling it to you”

• It holds communities together

“get the sense that the money is going back in to the local community”

“Tesco is anti-local…they ruin local economies and communities”

• It’s the British version of Fairtrade

“it stops Tesco’s plans for world domination”

Human connection


Local is Romantic

• Local has many romantic and nostalgic associations.

• Consumers appreciate the strong connection with a slower more natural pace of life.

‘It’s a lovely thought to be able to go wander down to a little local store and get some fresh produce”

“If you go down to the Cotswolds its more they live..”

“it makes me think of the Archers and farmhouses”

An antidote to modern life


Local is good for the environment

• Consumers recognise the benefits of not having to transport products long distances but this is not as motivating as the personal benefits of taste and freshness

“its better for the environment as it doesn’t have to go as far”

“there are less food miles aren’t there”

Guilt free

How far is local?


How far is local

50 miles UKTomatoes

Farmers Markets

Meat

Cheese

Jams

Sauces

Vegetables

Fruit

Juices

Baked bread

Grain

Prepared food

eggs

Sausages

Soups

Is everything going to ‘go local?’


Local is expensive

• Local food is adored as a treat but is too expensive and impractical to replace everything

“farmers markets are very nice but more expensive”

“ I couldn’t afford to shop there every week”

A treat but not for everyday


Local can’t provide everything

• Consumers are very attached to some products that can’t be grown in the UK.

“you can’t grow bananas here”

“if I really want strawberries in December then I’ll have them”

“Britain is so multi-cultural now, people come over here and want their products from home and then we all get used to them

• There is a perception that we are not as self sufficient as we were

“We don’t have enough space to grow all of our food here, we have to import some of it”

Foreign produce still has its place


Local isn’t convenient

• Because its seen as fresher and not covered in pesticide its not expected to last as long.

“I’d rather go there and buy 4 carrots rather than a whole kilo that I have to throw away at the end of the week”

• This is fine but it means people will have to do several shops each week instead of one. Some resistance to this.

“I don’t have time to do that all the time I still need the convenient stuff from the supermarket”

Takes time to slow down

The role of local


Should mainstream brands do local?

• There isn’t the expectation for mainstream brands do provide local.We still need convenient everyday foods and foods that can’t be grown in the UK.

• Consumers would like to see local forming a larger part of their weekly shop but there is still a role for the benefits offered by national and international brands.

• Large brands should find other ways of offering some of the benefits that consumers seek.

– How might learnings from a market stall applied to an in-store Dolmio stand help the brand get closer to consumers?

– How could seasonality be brought into the range?

Local isn’t essential. More upside than downside

Who can do local?


Can mainstream brands do local?

• There are some big challenges for brands to deliver the full local experience that consumers get from truly local products. Large brands are almost the antithesis of local

– Depth of provenance, quality, community, story and a human face are all required to a degree that is difficult to do for a large brand.

“No, I don’t see them doing it”

How authentic can you really be?


Can mainstream brands do local?

• Lessons can be learnt but it depends how closely the brand values match those of local and if its relevant.

–McDonalds might use local sourcing as a reassurance of quality and to defend criticism, but its difficult to see the brand sharing the same values

– The Innocent brand could feasibly pursue a local offering but fruits used prevents this.

Practical application


Sourcing strategies

• If a brand’s values do fit with local what how is this supported by the sourcing strategy

– National brands such as Hovis could challenge Warburton’s family baker image by sourcing wheat locally instead of from Canada as Warburton’s do.

– How far might manufacturers go in reconsidering their approach to centralised production? Is there a future for Hovis local bakery franchises?

Forms part of a core strategy


McDonalds sources locally!


Retailers need to take action

• Retailers are best placed to bring local to the masses. Consumers are very positive about the idea of supermarkets providing more more local food.

“That would really appeal to me”

• How do you merchandise differently for local?

– Create a ‘local’ section?

– Recreate the farmers market feel in-store with loose vegetables and stands?

• Some retailers were praised for supporting small suppliers

“Waitrose is using a 15 year old boy to supply them with jam”

The gate keepers


Changing market dynamics

• As new local brands launch how will retailers manage dealing with smaller suppliers.

• How can retailers support smaller suppliers in getting ready to supply a supermarket?

Conclusion or highlight panel


Big opportunity for food service

• For restaurants, hotels and cafes it is a given that they could be benefiting from using locally sourced food.

• Food service organisations also could and should be using locally sourced food.

• The Cornwall Food Programme uses locally sourced food to supply hospitals.

– The programme has been praised for helping the local economy, reducing food miles and providing better quality food to patients

Lots of upside and potentially a driving force

Conclusions


Conclusions

• Very emotive and a rich territory for engagement

• Quality, taste, freshness, community and authenticity

• Not essential for all to get involved - focus on the upsides.

• Lessons to be learnt about connecting with consumers: seasonality, human face, craft

• Food service and retailers have the easiest wins and the biggest role to play in accommodating small suppliers

Get ready for the long tail

Local charm

Luke Vincent [email protected]

Telephone +44 (0)20 7262 4488 www.dragonbrands.com

attitudes to local a presentation to fdin 16 may 2007

Documents

local means

local conclusions

role of local

craven hill london w2

regional slide

consumers hearts slide

authentic slide

countryside slide