Food and Drink Matters

December 2009

Conservationists say Cod off!

 The Marine Conservation Society has said supermarkets could be doing more to save threatened fish stocks by offering a wider variety of seafood, including some less popular species.

Additionally it has recommended that retailers should not buy North Sea cod (they do not include Icelandic and Norwegian cod in this list) along with swordfish and ling.

The MCS says the Co-op group of stores has the best record on sustainability, having eliminated all the fish the society has urged retailers to avoid selling. Other chains which have performed well are Sainsbury's, Marks & Spencer, Waitrose and Morrisons.

 

Cider Press

The news that C&C Group, which owns Magners, is acquiring Constellation's cider estate, including Gaymers, Blackthorn and Olde English, for £45 million, has put the UK cider market back in the headlines.

 According to the National Association of Cider Makers around 13 per cent of UK adults drink cider at least once a month, while 49 per cent drink wine and 51 per cent drink beer. Cider is equally enjoyed by men and women, but women drink half the volume of men.

The volume of cider produced annually in the UK is in excess of 6 million hectolitres or 130 million UK gallons.

Organic ciders are becoming increasingly available in the UK. To be organic the apples must come from orchards in which no pesticides have been used. One major producer has launched a scheme to have as much as 1,000 acres of old traditional orchards registered as organic with the Soil Association.

45 per cent of all the apples grown in the UK are now used here for cider making. A reducing amount of apple juice concentrate from central European countries like Austria, Germany and Italy is required to make up the shortfall and to use in blending for certain styles of cider. The acquisition will enable C&C, based in Ireland, to increase its off-trade cider business in the UK and provides it with established mainstream brands.

Constellation's cider volumes for the year ending February 2009 were 1.5 million hl - almost twice the size of Magners' current UK sales.

 

Fresh Produce Squeezed

More than a quarter of British fruit and vegetable suppliers are now making a loss, hit by recession, rising costs and pressure from supermarkets to cut prices.

Plimsoll, the market research company, found that of 1,000 companies selling fresh fruit, salads and prepared vegetables 288 made a loss in their most recent reported results. For more than half of these companies 2008-09 was the first year in which they made an annual loss; and 131 reported a loss for the second or third year in a row.

The fresh-produce market was thought to be relatively immune to the recession because of the growing focus on healthy eating and because its products are usually out of date within three days.

Those who supply fruit and vegetables to retailers such as Tesco and Asda have come under increasing pressure from buyers to lower prices to sell their goods on promotion. 

Government plans for Britain to become more self-sufficient in food production could be threatened. The UK imports 37 per cent of its food, and the Government has set a target of increasing UK fruit and vegetable production by about 20 per cent.In the long term the focus on cheap fruit and vegetables in shops could affect the UK's supplies from abroad as suppliers get better prices in the US and on the Continent. Imported fruit to the UK accounts for about 60 per cent of world wide sales.

 

Fresh Produce Squeezed

More than a quarter of British fruit and vegetable suppliers are now making a loss, hit by recession, rising costs and pressure from supermarkets to cut prices.

Plimsoll, the market research company, found that of 1,000 companies selling fresh fruit, salads and prepared vegetables 288 made a loss in their most recent reported results. For more than half of these companies 2008-09 was the first year in which they made an annual loss; and 131 reported a loss for the second or third year in a row.

The fresh-produce market was thought to be relatively immune to the recession because of the growing focus on healthy eating and because its products are usually out of date within three days.

Those who supply fruit and vegetables to retailers such as Tesco and Asda have come under increasing pressure from buyers to lower prices to sell their goods on promotion. 

Government plans for Britain to become more self-sufficient in food production could be threatened. The UK imports 37 per cent of its food, and the Government has set a target of increasing UK fruit and vegetable production by about 20 per cent.In the long term the focus on cheap fruit and vegetables in shops could affect the UK's supplies from abroad as suppliers get better prices in the US and on the Continent. Imported fruit to the UK accounts for about 60 per cent of world wide sales.

 

The cows are lowing in Wales

A third of dairy farmers in Wales have quit the industry in the last five years due to poor deals on milk prices, says a report to the Welsh Assembly.

The report, undertaken by the Assembly's rural development sub committee said low returns had put pressure on dairy farmers, forcing large numbers of them to leave the industry.

One of the main reasons for the decline is claimed to be the disparity in payments to farmers for their produce compared with the prices charged by retailers.

Chairman of the sub committee, Alun Davies said, "We urge the Welsh Government to put pressure on the UK Government to establish a UK supermarket ombudsman to protect producers' interests and achieve a fair price."

According to the report, the number of milk producers in Wales fell from 2,845 to 2,149 over five years to 2008.

Welsh dairy farmers needed a dedicated marketing body like that used for Welsh lamb and beef to help boost dairy income or face further falls in producer numbers, it added.

The sub committee also said government bodies should increase the use of Welsh dairy products, for example the army sourcing more of its meat from domestic farms.

Hybu Cig Cymru (Meat Promotion Wales) said while the idea of a dedicated milk promotion campaign might be popular with producers. But securing funding for a campaign could be a major hurdle

 

Kentucky Fried Christmas

Celebrating Christmas Asian and Aussie-style has led to a rather unusual marketing opportunity and booming sales for one of the world's most famous fast food brands - KFC, as well as some other changes to the traditional menu.

 The Japanese love festivals and although Christmas is not an official holiday they tend to celebrate in a big way, especially in the commercial sense. On Christmas Eve, many Japanese eat a 'Christmas Cake', which the father of the family purchases on his way home from work. Stores all over the country carry different versions of this Christmas cake and drop the price of it drastically on December 25 in order to sell stocks by the 26th.

 However in recent years, due to the intense marketing of Kentucky Fried Chicken (KFC), its Christmas Chicken Dinner has become quite popular too. Many Japanese even make advanced reservations for their ‘Christmas Chicken' with customers queuing at outlets to pick up their orders.

According to Euromonitor International as a result of KFC's brilliant advertising campaign, most Japanese now believe that Westerners celebrate Christmas with a chicken dinner instead of the more common ham or turkey.

In Australia the traditional plum pudding has been replaced by Pavlova, thanks in part, to the large indigenous Greek population and they are far more likely to have a barbecue than turkey with all the trimmings, washed down with champagne - from OZ of course!