few months after the introduction of laser labelling for their organic avocados and sweet potatoes back in December, Peter Hägg from ICA Sweden said that the program is going well.Out of the 70 pallets of avocados going to the retailer each week, the lasered avocados still only make up around 6% of the volume.
"The laser branding has been well received by consumers and the media attention that they have been receiving has also helped boost consumer awareness. However, there have been some teething problems with the stores. The laser branded avocados are organic, but we have had some issues with cashiers ringing them up as conventional." shared Peter.
This has resulted in stores not getting their full money back for the avocados. Peter said that they are working closely with the stores to solve the issue and that he has seen that the situation is improving. However, he said that with 1,300 stores, with around 20 cashiers per location, there have been a lot of people to educate.
"We plan on continuing the laser labelling program and will start with butternut squash in May and organic melons from Spain, once their season starts. I think that we will see even more success with these products because we won't have the bag issue like we due with avocados, purely due to their size. The melons and squash will be a lot easier to distinguish between organic and conventional." said Peter.
High prices not deterring consumers
Avocado volumes in Sweden are up by 15-20% and show no signs of slowing. A historic volume was sold in 2016, despite the prices continuing to rise.
"We kept on expecting to see a slowdown in sales with each price increase, but the consumers seem to be more than willing to pay more and continue to buy more and more avocados." said Peter.
Prices are expected to increase again this week with the late start of avocados from South Africa, Peru and Columbia, after cold and wet weather caused delays. Up until this time, ICA Sweden has been sourcing from Spain. An increase in sales is expected around the Easter holiday, but this is true of most items. Peter did say that the avocado might benefit a bit more than others because it is a special product that fits well into a holiday meal. Apart from holidays, year round demand is stable for avocados because most consumers are buying them for their health benefits.
"The natural branding is just a small part of what we are doing here at ICA in terms of sustainability. We are looking into changing our packaging across the board, from plastic to fibre for example, along with other forms of wrapping which is better for the environment. We are also tackling food waste in our warehouses and stores, with in-store programs, like making juices from the fruit and vegetables which are no longer able to be sold as fresh." Peter emphasized.
Fo
r more information:Peter Hägg
ICA
Tel: +46 (0)10 422 5252
Email: PeterHagg@ica.se
icagruppen.se