Britain’s farm retail trade generates £1.4bn/$1.74bn per yr, based on 2022 analysis carried out by Harper Adams College and funded by the Farm Retail Affiliation. There are greater than 1,500 farm retailers nationwide, a 3rd of which have opened within the final decade. Regardless of the financial uncertainty triggered by the pandemic, the overwhelming majority of shops (89%) have skilled a rise in gross sales since 2019.
Brexit and meals safety issues have pushed shoppers in the direction of shopping for extra locally-produced meals – based on Statista, the share of home meals consumed nationwide rose to a brand new excessive of 58% in 2021, up from 54% in 2020. Procuring attitudes have additionally shifted in favor of native shops – Statista reveals that round 40% of grownup shoppers meant to extend purchases from native shops in 2019, versus 60% in 2020.
The pandemic additionally influenced shopper conduct, with extra youthful shoppers visiting farm and speciality meals shops in 2020, whereas over 55s – essentially the most frequent customers of such shops pre-pandemic – are opting to buy on-line.
This conduct pattern has influenced product and model growth within the final two years. Daring messaging round sustainability was evident throughout lots of the stalls we visited at this yr’s Speciality & Positive Meals Honest as producers promoted choices designed to enchantment to a youthful demographic.
Cheesemakers rebrand with louder branding and sustainability messaging
Farmer-owned co-operative Natural Herd, which rebranded from Omsco in August 2023, introduced for the primary time its vary of 14 new merchandise of flavored and conventional butters, consuming chocolate, chocolate bars, and cheese. Wrapped in colourful packaging – from magenta and teal to navy and yellow – emblazoned with a playful typeface, the consumer-facing vary is prepared to enter delis and farm retailers nationwide. Venture supervisor Richard Lakeman advised DairyReporter that one of many co-op’s priorities is to get its message in regards to the significance of natural farming via to shoppers – particularly youthful ones. “We try to be disruptive,” he advised us. “Organics have been undervalued within the UK, and we wish to get shoppers to consider how we farm.”
Pointing in the direction of the ‘How We Farm Issues’ badge splashed throughout the entrance label of every merchandise, he added that the vary might enchantment to those that purchase into the co-op’s values and are climate-conscious. “Our cows are grass-fed and in addition free vary, and our farmers don’t use herbicides, which helps with biodiversity within the areas the place they farm,” Lakeman mentioned. “This launch is so thrilling for them as a result of it actually brings one thing new to the desk – and all earnings will profit the identical farmers who make them.”
Requested in regards to the shopper group the co-op is focusing on, Lakeman mentioned it’s the youthful demographic, together with Gen Z. “That is the problem we have now at our arms, convincing the youthful consumers who’re extra involved about their influence on the atmosphere to purchase into the natural ethos.”
This sentiment was shared by the crew at Golden Hooves, the buyer model of dairy co-operative First Milk. Leona McDonald, enterprise unit director at First Milk, advised us it was necessary to get throughout the message about regenerative agriculture and the way the co-op’s farmers are making a distinction via actions reminiscent of soil carbon sequestration. “It’s a mindset and it by no means stops,” she advised us. The co-op’s deal with regenerative ag is hoped to assist appeal to youthful consumers to Golden Hooves’ vary of cheddars – which now features a Classic Cheddar which was introduced on the tradeshow alongside the model’s Mature Cheddar product. “We’re undoubtedly seeing extra younger folks in farm retailers than we did earlier than,” McDonald advised us. “They care extra in regards to the atmosphere and the place their meals comes from. So we wish to faucet into that emotional facet. And it helps that our cheese tastes good!”
Somerset-based natural cheddar producer Godminster additionally underwent a rebrand not too long ago. Based in 1993 and right now providing a variety of flavored and conventional cheddars in varied styles and sizes, the corporate’s new branding took two years to be realized and presents throwbacks to the area’s wealthy historical past and, effectively, traditions in dairy farming and cheesemaking.
One other British cheese producer current on the present, the Cheshire Cheese Firm – which was acquired by Joseph Heler final yr – additionally revealed new branding in 2023, giving its cheeses ‘a recent look’ with the hope this might create a ‘cohesive first impression’ to new prospects.
Cheesemakers need Gen Z to take word – however what do younger consumers need?
Convincing climate-conscious millennials and Gen Z consumers to buy dairy merchandise via style and sustainability messaging is an apparent avenue to pursue, however as with every enterprise enterprise, there are dangers.
Whereas millennials seemed to be ‘the largest advocates’ for purchasing at farm retailers (41%), based on 2021 analysis by HGEM, all different age teams favored premium supermarkets.
Whereas there’s been a development within the variety of youthful shoppers visiting speciality and farm retailers in recent times, older, wealthier demographics nonetheless kind a big a part of the buyer base. Youthful consumers are additionally more and more eager about dairy alternate options, with 49% of Gen Zers stating they ‘felt ashamed’ to order dairy in public.
However there are different elements that make this demographic unpredictable. Ayisha Koyenikan, affiliate director at Mintel, was among the many panelists throughout a dialogue entitled Exploring the Energy of Insights for NPD held on the present. She revealed that Gen Zers worth affordability and style above all else. “For those who consider the media, you’d suppose Gen Z are sober, tremendous health-conscious, eco-warriors, all their actions result in saving the planet. However there’s a large hole between their aspirations and their behaviors.
“For those who ask Gen Z what their priorities are about food and drinks, ethics comes up to now down the size.” – Ayisha Koyenikan, Mintel
“Lots of them nonetheless dwell with their dad and mom – they don’t have the cash to purchase essentially the most moral or the healthiest merchandise. For those who consider the hype and don’t persuade them that your product is tasty and it’s good worth for cash, you will fail.”
DairyReporter requested Koyenikan if dairy producers we noticed on the present had been taking too huge a danger with product strains designed to enchantment to the youthful technology, notably Gen Z. “What we have to keep in mind is that Gen Z isn’t monolithic,” she advised us. “There are Gen Zers to whom these merchandise would enchantment, reminiscent of those that are older and who’ve the disposable earnings and the curiosity in attempting one thing new and indulgent.
“However then [producers] must deal with values, on getting their messaging throughout. And in addition be aware of issues like packaging selections or portion sizes and codecs that will enchantment to that demographic.”
