Global Foodservice Trends Bulletin
- incorporating implications for Irish foodservice suppliers
Issue two – December 2010
Prepared for Bord Bia by
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009
Introduction
CONTENTS
While the Irish economy continues to suffer,
other countries are recovering and growing. Product trends and implications
Opportunities exist for those suppliers who:
 What’s hot today: the low price
• Study and learn from these trends;
challenge.
• Relate them to their customer base;
What could be hot tomorrow:
• Work closely with their foodservice
regaining premium foodservice.
customers to put them into action;
• Partner with their customers to monitor
any innovations and adapt them, or
Consumer trends and implications
extend them.
 Sustainable and organic food: the Irish
advantage.
 Food traceability gains pace in
foodservice.
Premium fish and chips ?
How far will traceability go?
Route to Market trends and implications
Changing role of the wholesaler?
Cash & Carries benefit in the recession.
Death of the wholesaler?
C&C helped by recession
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What’s hot in global foodservice today ?
The low price challenge: ―Value‖ food ensures
consumers can still afford the eating out experience and
affects the formats of operators and the food they
require.
•
•
•
Lower priced menu items that offer value (as opposed to
cheap).
Fish and chips £11.95 London
Staple menu items (often bakery-based), that are
enhanced by presentation and cooking style
e.g. Fish and chips, sausages, meatballs.
“One course all you can eat specials” that are even
cheaper than set menus. Encourages traffic and attracts
complementary purchases (extra courses/other diners).
Flams ―All you can eat‖ buffet in Paris from €15
Sausages and mash
€10.95 Germany
IKEA meatballs USA
Giant bowl of noodles
£9.95 London
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What’s hot in global foodservice today ?
―Portable food‖ is the fastest growing element in
foodservice globally:
•
•
•
Busy lives mean the decline of traditional meal times
and situations.
Food in foodservice is increasingly bought to be
consumed “on the go”.
Giant Wraps. Chamonix €4.95
Food “on the go” must be handheld, compact and
usually bakery-based…wraps/tortillas, sandwiches,
pasties and rolls. Recipes are increasingly taken from
exotic locations such as Mexico.
Yuca portable
tortillas
Mexico $2
Tiny‘s giant
sandwich
New York $6.99
Handmade Gourmet
‗Pie to Go‘
£4.95 London
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What could be hot tomorrow?
Regaining premium foodservice - just hoping to
increase prices when things improve is not an option,
look at lessons from other countries.
• Many will concentrate on improving the experience of
diners to justify premium prices.
• Establish the premium position now, even if prices must be
kept down in the short term.
• Prices will not just go up when the economy recovers. The
Cooking Lessons within a restaurant in Italy
customer will want more if they are paying more:
•
•
Offering cooking lessons to patrons.
Taking award winning dishes from national
competitions to small independent restaurants.
A good place to start is the award winners at the
prestigious “Bocuse D’Or” held in Lyons each
January. The culinary equivalent of the Olympic
Games !!
Award winners at the Bocuse D‘Or
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Product trend implications for Irish suppliers
Implications:
•
•
•
Look abroad for ideas and inspiration, don‘t be afraid to copy!
Look for what‘s happening at the outlet level.
How can you support your wholesaler customers in
these initiatives?
•
•
•
•
Plan initiatives with your customers
Think about premium pies and sausages with added value ingredients aimed at affordable
price points.
Plan an “all you can eat package” around your products. You should consider cooperation
with complimentary product suppliers for your wholesale customer to achieve a total range.
Sponsor with wholesaler customers “in-restaurant” cooking lessons using mainly (but not
exclusively) your product ingredients.
Study the Bocuse D’Or winners in January 2011 in Lyons. Plan a menu for your wholesale
customers based on your products around these award winners at value prices.
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Sustainable and organic foods
“Ireland is known for natural organic sustainable food” : Dutch foodservice wholesaler
A lesson from USA; Earthbound farms
Earthbound‘s mantra
Earthbound farms has now expanded into foodservice
In Europe :
• 83% of consumers consider it is important to eat healthily;
• 58% are more conscious of environmental issues in their choice of products today;
• 56% prefer to buy from companies that are aware of the impact of environmental issues.
Growing the success of Irish food & horticulture
Food traceability gains pace in foodservice
Broad acceptance of traceability
Mc Donalds has committed to it internationally
"McDonald's believes that a
robust traceability system is
critical to ensuring consumer
confidence and building brand
trust in the beef industry."
Growing the success of Irish food & horticulture
Consumer trend implications for Irish suppliers
Move away from commodities: turning sustainability, organic, provenance and
artisan into profits.
• Companies that sell commodities typically must offer low prices and deal with slim
margins.
• Why? Because the customers’ perception of the product or service is one of
ambivalence. In the customers’ mind, the product or service is just like everyone
else’s, so there’s no reason to pay more for it.
• Organic, sustainable, provenance and artisan however, do command a premium.
Ireland has an
advantage.
If you‘ve got it—flaunt it!
Help customers build sustainability
into concepts.
Growing the success of Irish food & horticulture
The ―organic‖
logo will be standard
in EU.
Consumer trend implications for Irish suppliers
How far do you go ?
Understand how your product needs to deliver
from a traceability point of view.
How explicit should you be?
Traceability in coffee
Traceable salads in USA
Growing the success of Irish food & horticulture
Changing role of the Wholesaler ?
Chain % value in Foodservice: 2010
100
90
80
70
60
50
40
30
20
10
0
• Chains in foodservice are increasingly looking to deal
direct with producers, using wholesalers only for logistics.
• However, while it is true that chains are increasing their
importance in foodservice, independent operators still
dominate the market throughout Europe (as the chart
shows).
• Independent foodservice relies on delivered
wholesale and Cash and Carry, and always will do.
Manufacturers such as Davigel in France are vertically
integrated from product source through direct wholesaler
delivery of fully finished product and are unashamedly
targeting the independents.
% Chains
UK Ger Ire Fra
It
Sp
% Independent
Growing the success of Irish food & horticulture
Cash & Carries benefit in the recession
•
•
Until recently, Cash & Carry growth was restricted, and
its customer base of independents was shrinking.
Now Cash & Carry operators lead the growth in UK
wholesaling in 2010, outperforming competitors in
delivered foodservice.
Why is this?
•
•
Small independent operators are still the majority within
the foodservice market. They look to cut cost wherever
they can. This increasingly means visiting the Cash &
Carry (or even the supermarket) where there are lower
prices.
Cash & Carries in the Netherlands see the retailer and
not the wholesaler as their main competitor. They are
currently in a price war with many items, such as coffee,
which is sold at a considerable loss to encourage traffic.
Growing the success of Irish food & horticulture
Route to Market trend implications for Irish
suppliers
Partner with wholesalers and cash & carry – they are still the
most cost effective route to market for most foodservice
suppliers.
The wholesaler requires a partnership, not just a buyer/seller stand-off.
•
•
•
A partnership can include customer tastings and events.
Understanding your customer’s customer (i.e. the operator)
will allow suppliers to become more focussed.
Customise your product to foodservice requirements – format
and packaging are crucial.
The Cash & Carry should be treated much like a retailer.
•
•
•
Packaging should be visible and enhance the product on
display, but do not just use retail packaging.
Instructions should be detailed for the foodservice
professional, not for the general public.
The product in Cash & Carry sells on eye appeal just as much
as in retail.
Growing the success of Irish food & horticulture
Global Foodservice Trends Bulletin
- incorporating implications for Irish foodservice suppliers
Issue two – December 2010
Prepared for Bord Bia by
Growing the success of Irish food & horticulture
AIDAN COTTER
Growing
the success
CHIEF
EXECUTIVE
BORD BIA
of Irish28food
& horticulture
JANUARY
2009