At the beginning of the month, the markets seemed to echo the gloomy, rain soaked weather. But by month’s end, fine weather helped restore spirits
The market was just recovering from horse-meat, poultry, bovine TB and other scandals, so the hot weather across most of Europe, increasing BBQ meat sales, has been a welcome blessing. Sales of sausages and other meats used for outdoor cooking have soared; with the normally tight-lipped Waitrose even admitting a 70% increase in burger sales. So retailers can breath sighs of relief; Sainsbury’s has sold 200,000 bags of charcoal on which to cook all those burgers and BBQ meats, Marks and Spencer has sold 4 million sausages, and the latest in the upmarket stakes is gourmet burgers with which to impress your neighbors. Unlike their customers, supermarket chiefs are delighted with the hot weather forecast, and the promise of increased high temperatures in normally temperate northern European countries.
Recession encourages rise in sausage sales
Weschenfelder, makers of sausage assembling machinery, say “recent figures confirm that sausage sales in the UK have risen again year on year even in the thick of the recession”. And interestingly, they say that the premium end of the market is performing really well; this confirms that sausages are now seen as a quality product, and not just the cheap ‘banger’ or staple food, of 20 years ago. Consumers are economizing by choosing sausages rather than lamb chops or steak, but staying with premium up-market sausages that will feed and satisfy the whole family. “What the sausage industry now needs is sunshine, and lots of it, so every BBQ in the land can be brushed down and brought back to life!” And trying to prove that you can have the best sausages, without too many calories, Weightwatchers now make a range supplying ‘Premium’ sausages!
Taxing chicken
Chicken sales looked poised to take over much of lost meat sales, but weren’t helped by a new tax ruling in Britain. The UK Government, desperate to increase tax income, now class in-store Rotisserie or spit roasted chicken as ‘take-away food’. This makes it liable to value-added tax, thereby increasing the cost of the hot in-store roasted chicken by an average 90p (1 Euro) per bird. Morrisons, with many outlets offering Rotisserie-roasted ready-cooked chicken, started a petition for customers to say “hands off”, arguing that they believe customers buy these cooked chickens as part of a meal, which is then assembled for home consumption; but weren’t able to stem the introduction of the tax, even through they managed to stave off introducing this for pies and sausages. They reckon that since the tax was introduced sales have fallen by 18%.
Partnership boosts free-range chicken sales
However, for ordinary uncooked chicken sales, customers are seen to increasingly want to know where their birds have been raised. Waitrose are hoping they have come up with a solution. This month’s Farmers Weekly magazine reports that half-brothers Tim Bailey and Charlie Woodford have been working in partnership with other farms, including Waitrose’s own Leckford Estate, for some time. Bailey and Woodford is a family-run farm business that champions free range and promotes the benefits of locally-produced chicken. The business consists of two major farm units: Oakley Farm (rearing) and East Clyffe Farm (finishing), supplying extra-large Wiltshire Free Range Chicken, exclusively for Waitrose. “I have worked in poultry farming since the mid-1980s, but it was in the mid-1990s the business eventually established a significant contract with Waitrose,” says Mr Bailey. “I actually read an article in Poultry World that detailed an open day being held by Waitrose who were looking for commercial farmers to work with. I went along and the rest is history.”
Their business involves rearing broiler birds both for their own farm and for the Leckford Estate, supplying about two-thirds of all free-range birds for Waitrose. “We have a maximum capacity of 36,000 birds; however we are currently operating at close to 30,000 with an output of 7,500 birds a week,” says Mr. Bailey. “We are busy rearing the next crop, while the previous flock is being finished. Combined with stringent biosecurity measures this allows for a maximum output from our farm. Each individual shed will then have a 10-day break before the next crop arrives to reinforce the biosecurity.” “Bird welfare is an incredibly important part of what we do,” he continues. “Free range has always has been our preferred farming system. It is more open to the elements, with the weather and seasonality playing a greater role, and many additional challenges to overcome. “We have recently installed meshed ramps by the pop holes on the finishing sheds to help keep the house clean and allow easier access for the birds. We keep sheep on the perimeter of the range and ensure a good covering of grass. And we are in the process of planting apple trees, not only to offer the birds shelter, but also to bring back various varieties of apple that are not readily available due to the dwindling number of orchards in the UK.” So Waitrose customers, who are most likely to support the British variety apple such as Coxes, might see more available in their local store!
Good news for some
The horsemeat scandal, and others, has meant a rise in Scottish meat sales, recently announced by the Environment Minister, Richard Lochhead. He said there was no evidence the scandal had adversely affected sales in Scotland. Scottish meat sales have increased since the start of the horsemeat scandal because of its reputation for quality. He says sales at some butchers were up by more than a fifth, while processing firms had reported increased orders. After Opposition parties raised concern over a drop in inspection officers, Mr. Lochhead also told the Scottish parliament there was no evidence the scandal was an issue in Scotland, with strict checks under way to keep horsemeat out of the food chain. The latest development has seen Nestle, the world’s biggest food company, remove beef pasta meals from shelves in Italy and Spain after tests revealed traces of horse DNA.
However, it was emphasized that the real issue here is the loss of trust the consumer now has in what was supposed to be a robust food chain. As Lochhead said: “There’s clear evidence that people are looking for provenance in the Scotch brand, which is associated with traceability and quality. Some butchers are reporting sales up by more than a fifth since this crisis started and meat processing companies in Scotland are also reporting increased orders for Scotch beef. “We have farmers with traceability systems for their meat through the Scotch label, and that’s why many customers are realizing they can trust the Scotch label when buying meat.” This is the season for the large Agriculture Shows that are held across Britain in summer and early autumn. Talking to farmers attending the shows, they were quietly confident the market was recovering, rather being the traditional pessimists – it was reckoned that in Scotland, as there is no slaughtering of horses for human consumption, no food manufacturing firm has been implicated in the horsemeat scandal. And to reassure the buyers even more, the Scottish government said it was continuing to advance plans for a stand-alone, Scottish food standards body.
Vegetarians and Vegans
Both are non-meat eaters, but to go further, vegans won’t touch anything derived from animals, such as dairy products. The horsemeat scandal sparked a rise in sales of vegetarian alternatives, although most customers seem to eventually go back to traditional meat as the main ingredient. Quorn, the UK’s biggest vegetarian ready-meal brand, is among firms reporting sales growth after recent meat scares, and say many Britons are turning to Quorn’s vegetarian alternatives. Quorn said it had seen sales growth of more than double, as shoppers snapped up its burgers, mince and sausages, made from what is a form of fungus; the company is increasing the number of shifts at its fermenting plant to cope with demand. Other specialist brands have also enjoyed a surge in sales since January when regulators found horsemeat in ready-made burgers sold in supermarkets. Asda said sales of meat-free foods had been booming in recent weeks as the scandal widened to include well-known brands such as Findus and Birds Eye. One outlet that isn’t normally associated with food sales is the Holland and Barrett vitamin and supplement chain.
Fry’s, a South African brand which sells frozen vegetarian sausages and pies mainly to health foods shops, said its sales there had risen 30% since the beginning of February, three times the pace of its growth over the last few years. Cauldron Foods is another brand owned by Quorn, which includes specialist vegetarian options, such as tofu, as well as vegetarian sausages, has seen sales rise 6% after months without growth. Meanwhile, VeggieDay, a German brand recently launched in Co-op stores, has seen sales greater than forecast, and it had a burst of interest from retailers. “We have responded to the growth in consumer interest by bringing forward our product development schedule by approximately six months,” the company said. High beef prices are thought to have been a key factor behind the contamination of ready meals with cheaper horsemeat. Kevin Brennan, the chief executive of Quorn, says the horsemeat scandal had served to highlight the rising cost of meat protein, particularly beef, and estimated that cost pressures could mean more customers in future looking for alternatives. With Beef prices expected to continue to rise, the future seems bright for these alternatives; over time beef is going to become more of a luxury. Still, meat-free ready meals have some way to go.
A YouGov poll recently commissioned by Quorn, found that just 15% of those questioned were more likely to consider an alternative to meat as a result of the horsemeat saga. And spokesman from Fry’s, being realistic, said “a minority might think what’s happened is awful, and people have definitely been put off buying more processed foods, but most will carry on eating without looking to see what’s in it.” Asda echoes this, and say that while Quorn sales were still up, overall sales of meat-free products were beginning to plateau. Amy Price, senior food retail analyst at research firm Mintel, said just 6% of the UK population were vegetarians, although a further 13% choose to avoid red meat. Others will choose just to eat fish (a popular choice), or white meat such as chicken and turkey. And Price reckons “a third say they don’t know how to cook with meat alternatives.” She added that publicity from those retailers who had worked hard to protect their meat supply chain from contamination, by using British farmers whom they worked with closely, were also comforting shoppers. Waitrose and Morrisons have both publicized their championing of British farmers, while last week Tesco said it would try to source more meat in the UK and Ireland as a result of horsemeat being found in some of its food.
Jamie Oliver – housewives perennial favorite
Of all celebrity chefs, Jamie Oliver still seems to be looked up to by the public. While many of his rivals have seen their popularity plummet, the cheeky chappie Oliver is still a favorite, even though he has cut down on TV appearances. However, the ‘Jamie factor’ means shoppers opting to buy free-range eggs and chickens, and sales continue to increase. Now, what’s holding back expansion is difficulties with supply, meaning supermarkets having problem being able to offer enough free-range reared birds for sale. Waitrose still has to go to great lengths to publicize its ‘British’ chicken, and other brand names, to disguise there isn’t enough free range on offer for its up-market clientele. So they must be hoping that with their latest initiative they will be ahead of the game.