Global Foodservice Trends Bulletin
- incorporating implications for Irish foodservice suppliers
Issue one – August 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
Welcome to the first edition of Bord Bia’s Global
Foodservice Trends Bulletin. The bulletin has
been designed to provide insight and inspiration
to Irish foodservice suppliers by identifying key
global market trends which may spark new
thinking and new directions – be they strategic,
service or product based.
The bulletin will be updated and circulated three
times per annum. Each publication will look at
global foodservice trends taking place at a
product, consumer and operator level and
examine the implications of these trends for Irish
suppliers.
We hope that you will find the information
beneficial. Your feedback is most welcome,
please feel free to email any thoughts and /or
suggestions to maureen.gahan@bordbia.ie
Growing the success of Irish food & horticulture
CONTENTS
Product trends and implications
What’s hot today
What could be hot tomorrow
Consumer trends and implications
Obesity: food’s global endemic
Food concerns
Operator trends and implications
Foodservice going green
Chain development
What’s hot in global foodservice today?
Asian fusion has become ethnic fusion

Asian fusion is the combination of different Pacific cuisines, this has now extended to the fusion of other
“national” cooking styles – often with ethnic heritages.
Healthy fast food is on the upturn – look at the UK concepts - Pod, Sumo Salad, Leon, Chop’d, Wasabi, Itsu and Ping
Pong.
Food fashions follow the tourism trail – the current global hot spots are south-east Asian (Thai, Vietnamese, Burmese,
Indonesian, Malay) and Peruvian.
Super healthy – best exemplified by super fruits (acai, goji berry, mangosteen).
Super authentic – sourcing is moving from a retail to a foodservice issue:- salmon has become “North Atlantic
Salmon” other seafood is “line caught”.
Bakeries and delis have led the way in outlets that combine foodservice with retail – anticipate further growth and
development.
Events – be they business meetings or rock concerts, have become one of the most dynamic new foodservice
channels.
Growing the success of Irish food & horticulture
What could be hot tomorrow?
Minorities become mainstream cuisine, for example –

Allergy related (gluten-free, lactose free)

Vegan

Anything organic.
Extremes (modern and ancient) – Chefs are exploring all sorts of “new” cooking techniques and also looking at “old” foods ,
for example:


Molecular gastronomy (see http://khymos.org/recipe.php)
Traditional ingredients: Oats has been the historic success story. Kamult, an ancient grain (close relative to
durum wheat) is considered nutritionally superior. Spelt is another ancient grain, related to wheat and with
health benefits. Game, in particular venison, is an example of a traditional food that is likely to feature more on
menus of the future.
Health hits – an extension of the “energy” foods and drinks concept.
These are
already appearing in the form of small cans of energy drinks and are likely to evolve
in the form of on-the-go products that can provide short, healthy snacks.
Nomad consumption – “I want what I want, when and where I want it!”
Growing the success of Irish food & horticulture
Product trend implications for Irish suppliers
Implications: Use trends to build product advantage
1. Menu trends: In a world in which everything is accessible to consumers, food is a price based commodity and value is added
through “values beyond food.” For yesterday’s foodservice this was found in either consumer convenience or indulgence.
Irish suppliers need to seek relevant values beyond food to differentiate their products in the eyes of both consumers and
foodservice operators. Think about:
2.
•
Sustainable seafood where the benefit beyond food is ethical feel-good.
•
Innocent smoothies where it is an ethical, convenient health fix .
•
Local sourcing where it is environmental and local economy.
Hot trends: Think about what is happening elsewhere, could it come to Ireland and in what form? Use it to build operator
relationships, or as platforms for NPD. Think:
•
Today’s value added is tomorrow’s price driven. Innovation has to be a way of life.
Growing the success of Irish food & horticulture
Obesity: food’s global endemic
“Obesity is primarily a US issue and affluence driven?”

Wrong, two emerging economies have the 2nd and 4th highest rates in the world.

Despite their healthy diet, nearly one-in-ten Italians is now obese.

Obesity rates in the UK and Australia have tripled in the past three years.
Obesity is driving a global chain reaction.
Mexico seeks to
ban junk food and
drinks in its schools.
Pepsicoisisreducing
reducingthe
the
Pepsico
sodium,fat
fatand
andsugar
sugar
sodium,
levelsininits
itsproducts
productsand
and
levels
increasingwhole
wholegrains,
grains,
increasing
fruits,vegetables,
vegetables,nuts,
nuts,
fruits,
seedsand
andlow
lowfat
fatdairy
dairy.
seeds
Colour coded labels
in
in the
the UK.
UK
Compulsory
Health departments globally
disclosure of
are developing new methods
calories on New
to reduce consumption of
York menus.
Growing
thesalt
success
of Irish food & horticulture
saturated
fats,
and sugar.
Smaller portions and
Smaller
portions
andare
balanced
nutrition
balanced
nutrition
are
among the
hot menu
among
hot menu
trends the
in North
America.
trends in North America
Food concerns are a growing issue globally
Concern over food nutrition, health and animal welfare is increasing
and driving food regulation – everywhere.
US restaurant
chains need to
include calories on
menus.
Chile proposes a tax
on food with excess
fat or salt.
Mexican food must
display nutritional
information.
Russia plans tax benefits
for companies providing
full employee nutrition at
work.
South Africa regulate
trans fats.
In-flight meals in Brazil will
have to display nutritional
information.
Growing the success of Irish food & horticulture
Some celebrities are
taking on food concerns,
which have become the
new “fur”.
Consumer trend implications for Irish suppliers
Implications: Respond, you have no choice
1. Obesity: According to the OECD, Ireland is a mid ranking country in terms of obesity with 13% of its adult population
obese – some way behind the UK’s 24% (and heading in that direction), but way ahead of Japan’s 3%. Obesity will be an
issue in Irish foodservice. In certain channels (schools and health) restrictions will be applied. In others (QSR) there will
be adverse publicity and campaigns. Suppliers should start thinking now and at a minimum have in place a fall back
position. At best, they need to be ahead of the game and use it to both protect and differentiate products. Think about:
•
Reducing trans fats, sodium, salt and sugar.
•
Channels that will be impacted most.
•
The Weight Watcher logo is appearing on McDonalds menu boards in New Zealand.
“The Restaurants Association of
Ireland is delighted to support the
annual Happy Heart Eat Out
Campaign”
2.
Food regulation: Learn to live with it and even love it because it will not go away. However the focus is moving from
HACCP type production-issues relating to hygiene and safety, to product focused nutrition, health and welfare issues.
Control over these fields is moving from influence-able consumers to intractable regulators. Get ahead of the game,
benefit from being a leader and if others follow it delays the imposition of increased regulation. Think:
•
Excellence in nutrition, health and welfare has to become a core company competence.
Growing the success of Irish food & horticulture
Operators and suppliers are going green
Among UK consumers, the three main ethical concerns are:
1. Ethical trading
2. Animal welfare
3. Environmental impact
Concerned consumers are driving green companies
McDonalds
•82% of packaging from renewables.
•Recycling rates of over 90%.
•80% of cooking oil goes into biofuels, of
which 30% used in McDonalds trucks.
•Eco friendly outlet roll-out.
Growing the success of Irish food & horticulture
Conagra foods
•Reducing greenhouse gases, water use,
packaging and solid wastes.
•Supply chain improvements in energy, material
and agricultural practices.
The trend towards chains
Foodservice chains, particularly international chains, outperform
both their smaller rivals and the market through the recession and
beyond.
Chains will dominate the
mainstream foodservice segments
in most countries.
They will be the key customer.
Q1 2010 revenue growth
9%
8%
7%
6%
5%
4%
3%
2%
1%
0%
Growing the success
of Irish foodYum!
& horticulture
Starbucks
Brands
McDonalds
Compass
Operator trend implications for Irish suppliers
Implications: it’s customers, customers, customers
Respond to emerging needs of both foodservice operators and consumers.
1.
Going green: Today’s consumers are concerned consumers – be it health, environmental or ethical concern.
They are also informed consumers able to access and act on information – 73% of US consumers use social
media and 39% of these use them for restaurant reviews. Foodservice operators will increasingly only use
companies that stand out on consumer concerns. Early starters will have the opportunity to differentiate their
products, late starters will risk becoming excluded. Think:
•
Green is a fact of life, short term it can be used to get advantage, long term you have no choice.
It’s time to move beyond wholesale.
2.
Key foodservice customers: Ireland today is a very traditional foodservice market, with 86% of value in
independent outlets supplied by wholesalers. This is low, in France foodservice chains hold 22% of the market,
Germany 26%, in the UK it is 44%. Ireland will follow this pattern with growing operator chains increasingly
dealing direct with suppliers. Food suppliers need to identify the growing and embryonic companies and build
caste iron relationships. Think:
•
I need to move along the value chain, engage operators and “involve” consumers without antagonising
wholesalers.
Growing the success of Irish food & horticulture
Global Foodservice Trends Bulletin
- incorporating implications for Irish foodservice suppliers
Issue one – August 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