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organic shortage holds back high-potential market, analyst
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europe's first whole foods market is set to open in london in two weeks' time, but the vast potential of the organic market is being curtailed by a shortage of organic produce, according to organic monitor. the us company currently has 193 outlets in its home country and in the uk, including its five fresh and wild stores in the uk. the new 80,000 sq ft store, which will take up two floors of a former department store, will open to much fan-fare on june 6. the opening was initially planned for august 2006, but was then postponed to february 2007. organic monitor analyst amarjit sahota told foodnavigator.com that one of the major reasons behind the nine-month delay was the shortage of organic supplies. wfm simply could not fill its shelves. he said that even before wfm retailers were grappling with a shortfall in organic produce. quite simply, not enough organic fruit, vegetables, grains and dairy are being produced in the uk - and the same is true all across europe. this is a problem not only for retailers, who look to sell organic produce in its natural form, but also for food manufacturers looking to develop food products using organic ingredients. for instance, sainsbury's is selling 'transitional organic' milk, as it cannot source enough organic milk form the uk. tesco and asda, on the other hand, have sought to get around the problem by sourcing dairy from mainland europe, according to sahota. there is certainly potential for the uk organic market to grow. organic monitor estimates that the uk organic food & drink market grew by an impressive 25 per cent last year to £1.97bn (c€2.9bn). the shortage of organic produce to meet demand could curb development of the market in general. the uk's soil association has also expressed concern over the organic supply. in march it criticised the government's decision to end funding for organic vegetable and potato trial, calling the decision a potential threat to the sector. on the positive side, and presuming it can keep its shelves replete, sahota said that the advent of wfm will be a "real boost for the uk organics market". of course, one store alone will have a big impact. but if this proves a success, wfm will look to open 40 stores in the uk alone, after which it may turn its attention to mainland europe. but sahota thinks that european expansion is still a few yeas off. "europe is more fragmented than the us, and us companies commonly make this mistake." the superstore is renowned for selling at competitive process, and will make organic foods more widely available. prices are not as high as in existing, smaller organic food shops in the uk, such as planet organic, which can only buy in stocks in smaller volumes. wfm will be able to buy in bulk so its prices will be more on a par with mainstream supermarkets. but while organics take up only a small proportion of the shelf space in mainstream supermarkets, wfm is entirely dedicated to organic and natural products. wfm has clearly chosen the location of its first store carefully. the typical wfm customer is educated, middle-class and has purchasing power - a good match with south kensington demographic slant. but sahota said that although such stores will not be frequented by all consumer groups, mainstreaming of organics is already happening. for instance, tesco has reported that 80 per cent of its customers buy at least one organic product, he said. asda, which typically positions in a low-cost platform, recently announced a range of organic ready meals for children - a first amongst the big-5.
Source :Food Ingredients Food Science - Additives, Flavours, Starch
Date :
25
May
2007
Category :
restaurants and Food industrie
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consumer interest in eating locally-sourced produce is encouraging food manufacturers to develop ready-meals made with ingredients sourced from the same region in which the product is sold, says analyst datamonitor. the swift increase in farmers' markets bears testament to the rise of interest in eating local produce, as opposed to that flown in from different corners of the globe and sold on supermarket shelves year-round.
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operating overview strong performance in bakery with sales and margin progression frozen re-focused on core product strengths chilled sales growth driven by sandwiches & salads; change programme in ready meals to strengthen operating position investing for growth: brands: goodfella’s pizza re-launch during h1 2010/11 future cost efficiencies: major biscuits investment (project golden) on track with the majority of spend during h1 2010/11 new customers: commenced 10 year british airways supply contract; secured new costa coffee business stefan barden, chief executive, said: \" northern foods has traded solidly in challenging market condtions.
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while recent years have seen food snobs protest about their usage in modern day recipes, new research from mintel finds hot canned meat is well and truly back on the menu, as britain rediscovers the joys of this store cupboard staple.sales of hot canned meats* are steaming. in the last two years alone, sales have grown by a hearty 12%, compared to cold canned meats which grew just 4%. continued promotional activity has helped hot canned meats to grow its share of the canned meat market at the expense of cold meats by attracting new users.
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synergy is launching new range of dairy ingredients for savoury foods intended to help control formulation cost issues and improve the sensory appeal of better-for-you products. as food costs come under scrutiny in the recession, food firms have to perform a balancing act between offering products that are value for money but still address the need for healthier products with less fat, sugar and salt, and the desire for clean label.
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the image of grains needs a fundamental makeover in order to encourage consumption globally, according to the r&d director of pasta firm barilla, who said the enduring perception of grains as 'empty' energy is the major hurdle that needs to be overcome. this perception, he said, has stayed with consumers since the days of the low-carb craze, and it is up to the grains industry to transform this image to one of 'relevant' and 'good' energy.
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conagra's new 'green is good' marketing campaign for its healthy choice range shows just where food companies are targeting their resources. the campaign, which is aimed at health-conscious consumers, includes television advertising, in-store programs, free-standing inserts in local papers, consumer promotions and coupon sampling. "green is good," said bill partyka, vice president, healthy choice marketing for conagra foods frozen foods.
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warranted or not, it comes as no surprise to learn that there is growing concern among uk consumers over food safety. according to new research from mintel, 41 per cent of adults were concerned about the safety of food in 1997, while in 2002 this figure has risen to 44 per cent of consumers. the report revealed that there is a considerable difference in attitude between men and women with over half of women (51 per cent) worried about food safety, compared to just 36 per cent of men.
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