Back in 2005, as part of our shopper research, we asked British shoppers what makes them buy a product.

Shoppers had to choose from a series of factors such as price, origin, animal welfare amongst others and decide what was most likely to influence their decision to purchase.

The results of this survey showed that only 1 in 10 shoppers considered the origin of a product to be important to them and instead, other factors such as taste, sell-by-date, brand and price were more influential.
 

A shift in attitudes

Over time, we have seen a gradual shift in shopper attitudes, and our latest research shows how the importance of local sourcing has grown in shoppers' minds. Despite the recession, 30% of British shoppers now say that they buy locally produced food every month, double the number in 2006.

Percentage of shoppers purchasing 'ethical' options (source: IGD)

Why do people support local?

By far the most commonly cited primary driver of local food is perceptions of product freshness, mentioned by almost half (48%) of all local food shoppers as their first motivation. Shoppers perceive local food to be fresher because it hasn’t had to travel as far.

But economic factors now make up three of the top five reasons for choosing local. Nearly twice as many shoppers quote economic factors as drivers compared to four years ago.

• Over half (54%) are motivated to support local producers
• A third (34%) are drawn to support local retailers
• Keeping jobs in the area is in the top five, mentioned by three in ten (29%)

Supporting the local economy is a particular motivation of the more up market and older (aged 35+) shoppers.

Tesco stock approximately 3,000 local lines and work with over 480 local and national suppliers. In 2008, local produce accounted for £624m or 2.2% of UK sales, compared with 1.7% the previous year. This is a 30% increase in sales compared to 2007.     Tesco CSR Report 2009

Protection against imitation

Within Europe, a legal framework exists through the EU Protected Food Name Scheme which identifies regional and traditional foods whose authenticity and origin can be guaranteed. Under this system a named food or drink (separate arrangements exist for wines and spirits) registered at a European level will be given legal protection against imitation throughout the EU.

Around 800 products are registered by the EU, though Italy and France have considerably more registrations than any other member state. Six countries (Italy, France, Spain, Portugal, Greece and Germany) account for almost 90% of all registrations.

	Stilton cheese is one of many UK foods under the EU Protected Food Name Scheme

With growing shopper demand for local products there has been increasing interest from UK producers to go through the application process.

Cornish Sardines became the 40th UK product to be recognised under this scheme because of the way sardines are caught and the historical link attached to the fishing of sardines in Cornish waters. Other UK products include Stilton Cheese, Melton Mowbray Pork Pies, Scotch Beef and Lamb and Grimsby Smoked Fish.

However, shopper recognition of these products across the EU is low compared with Fairtrade or Organic products.

Recent research by London Economics indicates that there is confusion around the meaning of the different registration symbols that can be used on product packs. As a result, it would be difficult to claim that providing legal protection increases either shoppers awareness or confidence in products.

In other parts of the world there has been increasing interest in European developments. It can be difficult for small food businesses to undertake the necessary research without the help of bodies like the Nuffield Farming Scholarships Trust, established by William Morris (Lord Nuffield).
 

Jane's story

One such Nuffield Scholar is Jane Bennett from Tasmania. Jane, with support from the Rabobank, has compiled a report on the role of regionality in the marketing and branding of food.

Jane aimed to understand the components of regionality that are valued by consumers in different parts of the world in order to help farmers and small food producers improve their returns. Her studies took her to the US, Canada as well as the UK where she found a wide range of farmers using origin as a marketing tool.

Jane concluded that for these products to be successful outside their region in national and international markets they have a number of common elements.

• Identifiable geographic boundaries
• Sense of common unity in residents
• Champions (including celebrities) Vibrant arts culture
• Food production focus
• Tourism icons

Re-connecting with consumers

In 2001 the 'Curry Commission' called for farming to reconnect with consumers. One outcome of this has been to establish new services to small food producers. IGD has been working in partnership with Kent Business School and the NFU to provide farmers with free data on consumer trends which is some of the best of its type available anywhere.

	Growing sales - free information for producers
	A range of resources to help producers increase sales by understanding market trends and allowing them to make the most of consumer information.

More information:

IGD runs a one-day course on marketing for small food producers and farmers in conjunction with NFU and Kent Business School. For more information contact Clare Smith on 024 7685 8642.

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