richard shepherd

SERIO, 16 Portland Villas, University of Plymouth, Drake Circus, Plymouth, PL4 8AA Tel:01752 232747

‘Consumer attitudes to

Local Food and Drink’ Sandy Park 16th June, 2008


Introduction Aims and ObjectivesMethodologyThe Consumer ElementThe Trade ElementConclusions and RecommendationsPossible Future Work


Aims and Objectives Aim: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).

Objectives:To characterise and evaluate the local and regional food industryTo understand factors influencing purchasing decisionsTo identify and synthesise sources of data relating to consumption and marketingTo inform future commercial and public policies in the sector


Methodology Secondary ResearchPrimary qualitative:20 consumer focus groups130 in-depth trade interviewsPrimary quantitative:

1,223 online consumer surveys347 self-completion trade surveys


Consumer Element


Defining the concepts of ‘local’ and ‘regional’ food and drink Actual and intended buying behaviour (for use at home and eating out)Reasons for buying and barriers to purchasing local and regional food and drinkFactors influencing buying behaviourClassification of local and regional food and drink buyers

Main Topics


Qualitative:20 focus groups across the 9 English regions, urban and ruralHomogenous by lifestyle, gender and social group

Quantitative:1,223 online respondentsInterlocking quota sample

Research Process


LocalLocal produce generally relates to the immediate vicinity – almost universally associated with rural or close to rural areas

RegionalRegional produce defined as coming from specific geographical area – quality and premium associations based on tradition and reputationE.g. Welsh Lamb, Kentish strawberries, Devon Cream

Urban and rural differences

Definition of Local & Regional Food & Drink


Local Food and DrinkActual and intended purchasing frequency is variableOverall quite high when buying for home useNot when eating out

Regional Food and DrinkSimilar pattern, but smaller proportion actually buying

Types of produce, occasions and outlets

Actual and Intended Buying Behaviour


Reasons for buying:Support for local economyFood and drink characteristics: taste, freshness and provenanceSustainability, reduced pollution and food miles

Barriers include:CostAvailability, accessibility, and inconvenienceLimited information and promotion

Attitudes generally positive when buying for homeNot always translated into actual buying behaviour

Negative eating out effects were associated with lack of information and expense

Reasons for Buying and Barriers to Purchasing

Devotees (23%)More womenMore 45+More ruralFewer London and NWMore SW, EA and Y&HMore marriedMore degrees and A levels

Persisters (25%)More menMore 55+More ruralFewer 35-44Fewer LondonMore SW and EAMore £15-25,000Fewer C1Fewer degrees

Abstainers (36%)More womenMore 18-44More urbanMore London, SE and NWFewer SW and EAMore singleMore inner city and town centreMore £30-50,000 incomeMore C1

Cynics (16%)More menMore 55+ and 35-44More urban/inner cityFewer SWMore GCSEs

Classification of Local & Regional Food & Drink Buyers


Trade Element


Current patterns of local and regional food and drink purchasingMotivations and barriers to local and regional food and drink purchasingLocal and regional food and drink buying criteriaDecision making processes and unitsPlanned future for local and regional food and drink

In the context of:General issues with respect to local and regional food and drinkSpecific issues with respect to the respondent’s organisation

Main Topics


Face to face interviews included all major retailers, wholesalers, major food service operators, trade associations and individual businessesQualitative - 130 respondents

30 face-to-face100 tele-depth

Quantitative - 347 respondents65% independent retail/foodservice35% larger groupsRoughly split 50% retail, 50% foodservice

Research Process


Varies:Between 30-50 mile radius/within County for localWithin Counties or Region for regional e.g. EAFG, ToW, DY/YHRFG

Function of scale of operationLarger = larger radiusSmaller=smaller radius

Definition of Local & Regional Food & Drink


Growing in importanceMainly in larger retail/foodserviceIndependents less so

Growth will continue both for local and regional food and drink

Relative Importance of Local & Regional Food & Drink


Qualitative - trust, freshness/quality, environment, provenance, local economy, consumer demandQuantitative – local economy, freshness, quality, consumer demandSignificant changes in purchasing structures for larger retail/foodservice operatorsConcerns over availability, logistics and QA, mainly with the larger operators

Purchasing Behaviour: Including Commercial & Non Commercial Drivers


Higher consumer demandLower price of productsBetter quality and range of productsSupport for the local economy

Future Purchasing Behaviour


Majority actively promote local food and drinkMost common methods were in-store/establishment point of saleLocal offer alongside other brandsLow awareness from the trade of the RFGsLocal and regional food and drink tends to be fresh product, veg, dairy and meat and local beers/winesMarket value estimated to be £4bn with £2.5bn retail/foodservice and £1.5bn farm shops, markets and mail order

Marketing and Promotion of Local & Regional Food & Drink


Conclusions, Recommendations and Possible Future Work


Definitions of local and regional similar across consumer and tradeGrowing demand for local and regional food and drink

- consumer led, based on positive attitudes towards produceBut positive attitudes may not always translate into buying behaviourDifferences between buyers exist

Conclusions


Local and regional food purchasers can be classified into four main consumer segmentsBarriers to consumer buying exacerbated by logistical and distribution implicationsSignificance of larger trade players for future growthMechanisms needed to support/increase availability

Conclusions


Targeted marketing strategyEducating consumersMarketing support for specialist outlets in urban areasOvercoming restrictions in the supply chain and raising awareness of accessibility by large scale food trade (both retail and food service)

Recommendations


Potential for further growth evidenced through this research but other areas of research may facilitate further understanding around:

How consumers make trade off decisionsViability of using retailer and food service loyalty scheme databasesModels for regionally based distribution networks

Possible Future Work

richard shepherd

Business