Seafood has been at the heart of the program thus far. Not only has Sainsbury’s established itself as the country’s biggest retailer of certified sustainable fish, but its component campaign “Switch the Fish” that encourages consumers to try species beyond the nation’s big five of cod, haddock, tuna, salmon and prawns has resulted in an additional 46 metric tons (MT) of alternative fish being sold over the last year.
The first anniversary of 20x20 has been marked with the publication of a new report, “The Rise of New Fashioned Values,” which explains how the expectations of British shoppers have been undergoing significant change and finds that more than eight in 10 consumers have altered their purchasing behavior in the last year.
Sainsbury’s has found that as consumers’ household budgets continue to be squeezed in unprecedented fashion as a result of the country’s economic woes, they have become more mindful in the food purchasing decisions that they make. They are looking for quality and sustainability, and “they refute the idea” that these values have to sit in a premium price bracket, said the retailer. It added that the result is the emergence of new-fashioned values, where the behaviors of previous generations have again become relevant, and this will be the focus of its future marketing activity.
“The credit crunch has not led to a values crunch. We’re seeing people from all backgrounds rediscovering some of the shopping habits of the past to ensure they can meet the values-driven aspirations of today,” said Sainsbury’s CEO Justin King.
“Although people have less, they actually care more. The downturn has led to a strengthening of values, irrespective of people’s income. We believe this is not a passing phase but a fundamental change that is here to stay.”
Sainsbury’s has sold 8.5 percent more sustainably sourced food in the last 12 months, including a 54 percent increase in its sales of canned tuna and salmon. It also claimed that more than GBP 1 (EUR 1.23, USD 1.61) in every GBP 10 (EUR 12.34, USD 16.13) spent on sustainably-labeled products comes from families on the lowest incomes.
In addition, the study found that Brits have been “recalibrating their spending” to ensure they can still celebrate special occasions and enjoy moments of indulgence but that 22 percent of customers were now creating those special meals at home instead of eating out. This finding echoes the analysis of global market research firm NPD Group, which has determined that the number of restaurant visits per capita has been steadily falling year-on-year.
Paul Pendola, NPD’s client director specializing in U.K. foodservice, confirmed the restaurant market is contracting in the United Kingdom and across Europe, with all countries apart from France posting negative traffic. He said for any U.K. restaurant to get new business, it will have to steal it from elsewhere “because there’s no new traffic coming into the system.”
The trends are for “trade-out,” where more people are eating at home more often, and “trade-down,” whereby consumers are eating at cheaper restaurants. The beneficiary of the latter trend has been quick service, said Pendola.
Typically what has happened post-recession over the last 30 years is that gradually consumers return to their previous levels of spending and eating out, Pendola explained, but he cautioned that the trend probably won’t apply this time around.
The recovery has been long and slow. At the same time, supermarkets and their smaller high street convenience outlets have starting providing direct competition to restaurants, he said.
“When the lights come on this time, everything will be different. If restaurants are looking for things to go back to the way they were, they will have a very long wait.”
But like Sainsbury’s, NPD believes there are consumer trends should be exploited. The fairly new to market “fast casual” is the eat-out sector that is outperforming the market with traffic up 3 percent and sales up 4 percent. Furthermore, the average spend in fast casual is GBP 9 (EUR 11.11/USD 15.42) per head, whereas quick service, which now has 50 percent of the eating out sector, is GBP 5 (EUR 6.17, USD 8.07).
Pendola also believes there are untapped opportunities for seafood, particularly as a valued ingredient rather than as a center of plate meal, whether that’s in a sandwich, salad, burger, etc.
U.K. consumer behavior is clearly changing across the board and looking to 2013 and beyond it’s vital that seafood hangs on to its perception of being good value, while sustainability is a given.
