Transcript
Page 1: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Dr. David HughesEmeritus Professor of Food Marketing

Asian Food & Agribusiness Conference:

Smart Food Value Chains

Asian Productivity Organization

Holiday Inn, Silom, Bangkok

Wednesday, June 12th, 2019

Establishing Value Chain Ecology for

Regionally-Produced Foods:

Partnerships with Local SMEs

@profdavidhughes

www.supermarketsinyourpocket.com

Page 2: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value
Page 3: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value
Page 4: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Popping Into the Sweetie

& Toy Shop to Buy a Treat

Using Alipay and Watch!

Page 5: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Solo Karaoke-ing

It’s a Slippery Slope!

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Kimbal

Musk

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Financially-Backed

By Jeff Bezos

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Hydroponic Businesses

Popular in Singapore

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Source: IGD UK, “Shoppers of the Future”, June 27th, 2018

Page 10: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value
Page 11: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value
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Social Media Accelerates the Exchange of Information Around the World

Not Least on Food Trends and Between Gen. Z and Millennial Consumers

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Page 14: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

In Vietnam …..

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Professor Chris Tomazou’s

DNA Nudge device uses

Smartphone technology to

advise consumers whether

particular food products are

healthy for them or not.

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Page 18: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value
Page 19: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value
Page 20: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Value Share of the UK Retail Fruit Bowl 2007 versus 2019

Retail Fruit Value 2007

£3,671 million

Retail Fruit Value 2019

£5,791 million

Apples 18.7 Berries 24.2

Berries 18.3 Apples 16.3

Bananas 15.7 Citrus 14.4

Citrus 14.2 Grapes 14.1

Grapes 12.5 Bananas 10.2

Tropical Fruit 9.2 Tropical Fruit 10.0

Stone Fruit 6.8 Stone Fruit 7.0

Pears 4.6 Pears 3.8

Average Weekly Household

Spend £2.81

Average Weekly Household

Spend £4.00

% of Total

Source: Kantar Worldpanel, UK

* Does not include cut fruit £420 million 2018

Page 21: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Berries Rewarded with More Prime Shelf Space

The Rise and Rise of Fresh Berries in the UK Market

Domestic (Local) Season for Fresh Berries Extended to 8 Months in Year Via Tunnels

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Page 23: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Gave Berry Gardens Growers a 5 Year Lead on Premium Raspberries

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February 6th, 2019

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Dingley Dell Pork Exports in 2018

Source: Dingley Dell via Professor Andrew Fearne (£1=US$1.27 so av. export price was US$6.08 in 2018)

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Joint Venture Between Zespri and Plant & Food Research: Best Practice in Adding Value for Producers

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Dominating Global Fresh NPD for Kiwifruit Through Smart R&D

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Best in Class:

• R&D partnership with PFR

• consumer focus in Asia

• supply chain management

• Supply control

• brand development

Delivering Grower Premiums

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Green Kiwis $2.49 Gold Kiwis $4.99 Red Kiwis $7.99

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Retail Theatre for Fresh Produce in Asia Often Much Better

than in Most Stores In North America & Europe

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Page 33: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

None of the UK Major Supermarkets Score Well on Retail Theatre

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April 26th, 2019

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Zespri: Famous for Persimmons!

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Sharing Stories

And Values with

Your Customers

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Transparency and Traceability

Through the Supply Chain Key

Reflecting Consumer Concerns

About Food Integrity in Countries

Right Across the World.

This is Great News for Raw Material

Suppliers Around the World who have

Production Bases and Supply Chains

Of Impeccable Integrity.

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The Number 1 Global Mega Consumer Trend is the

Increasing Concern About The Health of the Family

and The Health of the Planet. When Food Shopping,

Drives Shoppers Towards “Mindful Choices”*

And a Widespread View that Big Food, Big Business, Big Government

are Part of the Problem NOT Part of the Solution

“Mindful Choices” top food trend for 2018, Innova Market Insights, Nov. 2017

“What I Eat is Good for Me and My Family.”

“I Feel Good About What I Eat.”

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The “Blue Planet II Factor”

Suppliers, Retailers & Consumers

Will Change Radically & Quickly

Their Use of Plastic Packaging

May 28th, 2018

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August 13th, 2019

HUGE Opportunities

For Cellulose-Based

Food & Drink Packaging

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January 5th, 2019

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May 13th, 2019

December, 2018

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Global Brands Pushed to Implement “One Size Fits All”

Food Industry Social Policies

Page 49: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

Social Pressures Dictating Choice

Remind Me Again What We Can’t Eat?:

• Anything with palm oil as an ingredient

• Chicken that’s been fed soy from Brazil

• Shrimps caught by “slave labour” in Asia

• Beef that has destroyed the Amazon

• Anything with GMOs

• Anything in a non-recyclable pack

• ………….. etc.

BUT How Relevant are These Issues in Asian Markets?

Any Issues for Your Products:

• Child labour

• Environment (e.g. tunnels, water usage, air freight)

• and much more!

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May 10th, 2018

April 12th, 2018

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There’s a New Marketing Mantra:

Start Doubling Up on the Five Ps

Source: Marketers Need to Stop Focusing On Loyalty and Start Thinking About Relevance

Zealley, Wollan & Bellin, HBR, March 21st, 2018

Page 53: Establishing Value Chain Ecology for Regionally-Produced ... · Value Share of the UK Retail Fruit Bowl 2007 versus 2019 Retail Fruit Value 2007 £3,671 million Retail Fruit Value

CONTACT POINTS:

e-mail:

[email protected]

Telephone contact:

mobile +44(0)7798 558276

@ProfDavidHughes

Retail Blog: www.supermarketsinyourpocket.com


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