establishing value chain ecology for regionally-produced ... · value share of the uk retail fruit...
TRANSCRIPT
Dr. David HughesEmeritus Professor of Food Marketing
Asian Food & Agribusiness Conference:
Smart Food Value Chains
Asian Productivity Organization
Holiday Inn, Silom, Bangkok
Wednesday, June 12th, 2019
Establishing Value Chain Ecology for
Regionally-Produced Foods:
Partnerships with Local SMEs
@profdavidhughes
www.supermarketsinyourpocket.com
Popping Into the Sweetie
& Toy Shop to Buy a Treat
Using Alipay and Watch!
Solo Karaoke-ing
It’s a Slippery Slope!
Kimbal
Musk
Financially-Backed
By Jeff Bezos
Hydroponic Businesses
Popular in Singapore
Source: IGD UK, “Shoppers of the Future”, June 27th, 2018
Social Media Accelerates the Exchange of Information Around the World
Not Least on Food Trends and Between Gen. Z and Millennial Consumers
In Vietnam …..
Professor Chris Tomazou’s
DNA Nudge device uses
Smartphone technology to
advise consumers whether
particular food products are
healthy for them or not.
Value Share of the UK Retail Fruit Bowl 2007 versus 2019
Retail Fruit Value 2007
£3,671 million
Retail Fruit Value 2019
£5,791 million
Apples 18.7 Berries 24.2
Berries 18.3 Apples 16.3
Bananas 15.7 Citrus 14.4
Citrus 14.2 Grapes 14.1
Grapes 12.5 Bananas 10.2
Tropical Fruit 9.2 Tropical Fruit 10.0
Stone Fruit 6.8 Stone Fruit 7.0
Pears 4.6 Pears 3.8
Average Weekly Household
Spend £2.81
Average Weekly Household
Spend £4.00
% of Total
Source: Kantar Worldpanel, UK
* Does not include cut fruit £420 million 2018
Berries Rewarded with More Prime Shelf Space
The Rise and Rise of Fresh Berries in the UK Market
Domestic (Local) Season for Fresh Berries Extended to 8 Months in Year Via Tunnels
Gave Berry Gardens Growers a 5 Year Lead on Premium Raspberries
February 6th, 2019
Dingley Dell Pork Exports in 2018
Source: Dingley Dell via Professor Andrew Fearne (£1=US$1.27 so av. export price was US$6.08 in 2018)
Joint Venture Between Zespri and Plant & Food Research: Best Practice in Adding Value for Producers
Dominating Global Fresh NPD for Kiwifruit Through Smart R&D
Best in Class:
• R&D partnership with PFR
• consumer focus in Asia
• supply chain management
• Supply control
• brand development
Delivering Grower Premiums
Green Kiwis $2.49 Gold Kiwis $4.99 Red Kiwis $7.99
Retail Theatre for Fresh Produce in Asia Often Much Better
than in Most Stores In North America & Europe
None of the UK Major Supermarkets Score Well on Retail Theatre
April 26th, 2019
Zespri: Famous for Persimmons!
Sharing Stories
And Values with
Your Customers
Transparency and Traceability
Through the Supply Chain Key
Reflecting Consumer Concerns
About Food Integrity in Countries
Right Across the World.
This is Great News for Raw Material
Suppliers Around the World who have
Production Bases and Supply Chains
Of Impeccable Integrity.
The Number 1 Global Mega Consumer Trend is the
Increasing Concern About The Health of the Family
and The Health of the Planet. When Food Shopping,
Drives Shoppers Towards “Mindful Choices”*
And a Widespread View that Big Food, Big Business, Big Government
are Part of the Problem NOT Part of the Solution
“Mindful Choices” top food trend for 2018, Innova Market Insights, Nov. 2017
“What I Eat is Good for Me and My Family.”
“I Feel Good About What I Eat.”
The “Blue Planet II Factor”
Suppliers, Retailers & Consumers
Will Change Radically & Quickly
Their Use of Plastic Packaging
May 28th, 2018
August 13th, 2019
HUGE Opportunities
For Cellulose-Based
Food & Drink Packaging
January 5th, 2019
May 13th, 2019
December, 2018
Global Brands Pushed to Implement “One Size Fits All”
Food Industry Social Policies
Social Pressures Dictating Choice
Remind Me Again What We Can’t Eat?:
• Anything with palm oil as an ingredient
• Chicken that’s been fed soy from Brazil
• Shrimps caught by “slave labour” in Asia
• Beef that has destroyed the Amazon
• Anything with GMOs
• Anything in a non-recyclable pack
• ………….. etc.
BUT How Relevant are These Issues in Asian Markets?
Any Issues for Your Products:
• Child labour
• Environment (e.g. tunnels, water usage, air freight)
• and much more!
May 10th, 2018
April 12th, 2018
There’s a New Marketing Mantra:
Start Doubling Up on the Five Ps
Source: Marketers Need to Stop Focusing On Loyalty and Start Thinking About Relevance
Zealley, Wollan & Bellin, HBR, March 21st, 2018
CONTACT POINTS:
e-mail:
Telephone contact:
mobile +44(0)7798 558276
@ProfDavidHughes
Retail Blog: www.supermarketsinyourpocket.com