26 January 2015 | Online since 2003



28 January 2013|Arable,Market Reports,News

Fresh potato outlook 2013: A shopper's perspective


Caroline Evans

2012 was a challenging growing season, with exceptional weather conditions impacting on the GB crop’s size and quality.

Shoppers have seen price rises in store and there have been many stories about the cost of food within the media. Even in this difficult season, eight out of ten shoppers (78%) would rather buy British potatoes.

A key opportunity for 2013 is giving shoppers a clear reason to buy a specific line; building loyalty and encouraging trading up.



A segment of shoppers are willing to pay more if it benefits them. Shoppers see potatoes as healthy, but there is still a lack of knowledge about their nutritional benefits and these messages are important to give them a reason to buy.

Market performance

In 2012 the market has remained stable, with a marginal volume decline year-on-year of 1.1%. Price inflation has been a major driver for the increase in the overall value of the fresh potato category, which has grown 4.3%2. The average price per kg is now £0.702 compared to £0.64p3 a year ago.

As shoppers’ finances are stretched they buy cheaper lines. Economy potatoes now make up about one in every twenty 2 (5.6%) packs purchased, which is up 12.3%2 in 2012.

However, results for the quarter show a marked drop in sales of these lines, while whites recorded significant growth. If shoppers have a clear reason to buy they are willing to pay more, chilled potato sales continue to grow at an average price of £3.53 per kg2.

Role of promotions

28.8% of potato volumes were sold on promotion in 2012, which is 9.5% lower than in 2011. The most common promotion is a price reduction on a specific line.

Shoppers see potatoes as a staple, so tend to look at relative price. Three in ten shoppers (30%) say they would just buy the bag on offer, however, four in ten (43%) express a preference to use a specific variety. Promotions can be an important shopper marketing tool when used to deliver a defined objective, such as encouraging trial of a new line.

Potential to pay more, if there’s a real benefit

Despite the fact that higher food prices, and in particular the cost of potatoes, have been hitting the headlines, there is still the potential to encourage shoppers to trade up. Four in every ten (39%)1 shoppers say they would pay more for better cooking results.

This presents a significant opportunity to drive value for the category; a move from whites to a named variety such as Maris Piper could equate to an additional £56m4 per annum.

In 2013 the challenge is to give shoppers a clear reason to buy mid-tier named varieties.

Potato Council research has identified better signposting as a real opportunity to build shopper understanding; using simple intuitive terms, emotive food photography and suggested usages.

Capitalising on health credentials

There remains a small group (5%) who do not think potatoes are healthy, but the vast majority of shoppers do.

There is an opportunity to build on this positive base, by improving understanding of their credentials and debunking the myth that potatoes make you fat, which is still believed by a third (33%)5 of shoppers.

In June this year health will be the headline message of the EU co-financed Many Faces of Potatoes campaign that will include PR activity, a TV advert and roadshows. This will focus on potatoes as naturally fat free and as a source of vitamin C.

Download



Comments


No comments posted yet. Be the first to post a comment

To post comment without approval login or register

Display name

Please enter your name

Email (optional)
Comment

Please enter your comment

Post Comment

Your comment submitted successfully.Please wait for admin approval.

Some error on your process.Please try one more time.



Jobs


14 January 2015
Senior Automation Engineer, (Python or .Net), up to £43k
You will be required to understand both the technical specification of our products, and customer usage models, and from that...

17 January 2015
Senior Chef
Denstone Hall Farm Shop & Café is an award winning farm shop and café producing a high standard of food using fresh ingre...

5 January 2015
CHESHIRE: SENIOR AGRICULTURAL SOLICITOR
You will already be in a similar role with over 5PQE experience and be au fait with all agriculture matters to include commer...

12 January 2015
Senior Marketing Executive (maternity cover) 1450296
Being the main marketing contact for a list of journals in the Environment and Agriculture subject area. Senior Marketing Exe...

19 January 2015
Carer ( Personal Assistant - Health Care Assistant )
Due to the success of our recent recruitment campaign we only have one position left for a local Carer. Are you the Carer we ...




Top stories you may have missed
12 November 2014 | Arable
GM crops 'good for farmers and the envir...

GM crops 'good for farmers and the envir...

GM crops are good for the economy and can reduce the amount of pesticides u...


6 November 2014 | Cattle
Smaller European markets drive beef expo...

Smaller European markets drive beef expo...

Demand from smaller European markets has helped drive strong growth for UK ...


6 November 2014 | Agri Safety
Lack of engineers a 'ticking time bomb' ...

Lack of engineers a 'ticking time bomb' ...

A lack of engineers, not enough people promoting the land-based industries ...


4 November 2014 | Bees and Beekeeping
Bee action plan due: Last chance for bee...

Bee action plan due: Last chance for bee...

Environment Secretary Elizabeth Truss is launching the National Pollinator ...


4 November 2014 | Arable
Experts welcome financial boost for youn...

Experts welcome financial boost for youn...

Agricultural specialists have welcomed a potential financial boost for youn...


3 November 2014 | News
Supermarket competition on prices 'risks...

Supermarket competition on prices 'risks...

As retailers continue to participate in a highly competitive race to the bo...


31 October 2014 | Arable
New Defra farm figures 'underline volati...

New Defra farm figures 'underline volati...

New farm business income data from Defra, which focus on income from March ...


30 October 2014 | Agri Safety
Agriculture remains one of UK's most dan...

Agriculture remains one of UK's most dan...

Agriculture has remained one of the industries in which workers are most li...


29 October 2014 | Finance
UK farmland prices see 'substantial grow...

UK farmland prices see 'substantial grow...

Prime arable land in the UK has seen a substantial year-on-year growth in p...


27 October 2014 | Arable
Satellites to help farmers pinpoint dise...

Satellites to help farmers pinpoint dise...

A new mobile app for farmers able to pinpoint and identify disease, pests a...