Over the past 18 months, one of the trends considered most remarkable, and which was started by Intermarché in France, has been the sale of less than perfect produce, which is “rebranded and sold to consumers at a reduced price. Programmes like this have expanded across the globe, with retailers and suppliers alike joining together,” he explains, describing it as an example of great marketing, managing to turn a defect product into an opportunity.
Mr Worthington, taking part in the presentation to provide the Australian perspective to some of the topics addressed, assured that “we’ve picked up on this trend probably as quickly as everyone else in the world,” with both small and large retailers trying to capitalise on it. In fact, “Harris Farm Markets last year was the winner of our Marketer of the Year Award for their campaign ‘Imperfect Picks’ and over the last 12 months they have doubled their shelf space in this area.”
This actually serves as a metaphor for other trends, as according to Mr Silbermann, “a key trend that we’ve seen is a growing intersection and collaboration between agriculture, technology and capital investment.” To illustrate this, he mentions that “in 2014, 2.3 billion dollars were invested in agricultural technology, and this doubled to 4.6 billion last year,” with all sectors involved. In Japan, for instance, they introduced ‘talking vegetables’ in grocery stores, which “use the farmer’s voice when a customer reaches out and touches a product.”
This move also has a lot to do with transparency, as by providing more information about how the product was grown, you are likely to improve consumer trust. At the same time, “it gives the customers a chance to learn about farming and give them a bit of unique fun when going to shop. Consequently, sales at some stores increased by as much as 250%,” he states. It is clear that “consumers are interested to learn more about how their food is grown and who grows it,” he affirms.
In Australia, Mr Worthington explains that this technological trend has been more influential on the primary than on the retail sector, with labour being one of the major issues. “We have also seen a lot of investment in protected cropping. “I think that, in about ten years’ time, we’ll be looking at a completely different world in terms of how these technologies are actually used on a large scale in our industry.”
Technological resources, according to Mr Silbermann, are also aiming to tackle water shortage issues. “We are seeing plenty of investment in water recycling, filtration, precision application and evaporation control.” An example of this is the dew harvesting greenhouse designed in Ethiopia, “so that farmers don’t have to rely on outside water supplies, and this is just one of the many ideas that are forcing our industry to adapt to changes in both the consumer and technology environments.”
This connects into another increasingly important consumer trend, which is sustainability, “which has resulted in the general redefinition of the word ‘health’,” states Mr Silbermann. “If we look at how we used to define the healthfulness of produce, it was really all about nutrition, but more consumers, especially the younger ones, are looking more holistically at healthy eating. [They look at both] the product’s health and the impact that its production and distribution has on the health of our planet, and this is leading to changes in their diets.”
This trend, according to Mr Silbermann, “forces us to look at how we are marketing our fresh produce. It is also big in the foodservice, with restaurants responding to those consumer desires. This is going beyond the strictly vegetarian options, with more costly proteins now being used as garnish rather than centre of the plate.” It is also boosting profitability, as chefs are finding ways to make use of what otherwise would become food waste.
Not surprisingly, given this focus on health, fruit and vegetables are currently one of the major snacking alternatives in all world regions. “Fruit has the highest snack use in Europe, Asia Pacific and the Middle East/Africa, while in the Americas it ranks in the top five, while vegetables have the highest snack ranking in Asia Pacific and Europe,” reports Mr Silbermann. “This will be attributed to innovations in packaging, as well as marketing partnerships between retailers and suppliers.”
When marketing produce, it is worth taking into account that millennials make a deep use of technology, such as tablets and apps. “As for centennials, they are also likely to purchase items that are described as fresh, natural and local, and they love to cook from scratch, so whether you’re telling your sustainability story or integrating demographic research into your market strategies, these are aspects for you to consider,” states Mr Silbermann.
In this sense, Mr Worthington affirms that “trying to get millennials and centennials involved in our industry, attracting talents to run our businesses, as well as to influence our strategies, is just as important as marketing our products. We need to change our own stereotypes about how these groups approach a career,” and this includes enhancing the value of diversity of opinions, with “86% of millennials [feeling] that differences of opinion allow teams to excel in the business place.”
The innovation that millennials can bring will, in fact, become an essential tool to face the challenges ahead. “By 2050, 70% of the world’s population will be living in cities, and in our industry, claiming a portion of the increasing need for fresh food is both daunting and exciting for innovators,” affirms Mr Silbermann. “The good news for us is that fresh produce is playing a key role for many meal kit providers.”
As regards data, it has been reported that “by 2020, there will be 50 billion digital generators in the supply chain, broadcasting data that can be effectively used to more effectively market our products and assets. Data, I believe, is what’s going to drive our business in the future,” and it can be applied to many aspects, including predictions on production, food safety risks, supply chain needs or consumer demands.
Food safety, for example, is an aspect in which plenty of resources are being invested and which provides great value to the industry, but what’s most important, according to Mr Worthington, is to “have one place where everyone: industry, governments, researchers, organizations, (etc.), can get together and focus on the areas that are key to everyone. In Australia and New Zealand, we have a reputation for safe and quality food and we want to do anything within our power to protect that.”
In this regard, genomics has become a great tool for the improvement of food safety, and Mr Silbermann argues that this same tool should also serve to give a boost to other aspects, namely flavour. “In the next 5 to 10 years, [genomics] will have a great impact on variety development and in the way we unlock the convergence of flavour and fragrance. Some tomatoes, for example, taste better because of their aroma, and not their sugar levels [and] I suggest that we are uniquely positioned to capitalise on lessons like this to create and intensify brand personalities for our products.”
In conclusion, “we need to approach marketing as a discipline and to design products that meet demands and specific needs. We firmly believe that we need to stop framing the challenges ahead as ‘either or…’, and instead start treating them as both, [with] plenty of room for individual brands and for universal category movements. [Ultimately], marketing is what will drive consumption in the future and help reframe fruits and vegetables in the minds of consumers,” states Mr Silbermann.