What’s life like in the prepared trade?
Kate Milligan: The last few months have been good considering the warmer weather in early July being more of a challenge for veg sales.There is growth in the prepared veg market, and that’s good. In fact, prepared veg has remained in growth for the past five years. 2014 was a challenging year with growth levels hitting their lowest point. However, August 2014 saw things start moving again, with growth strengthening every period since, through a rise in penetration and frequency.
- What are the big talking points?
KM: Whereas many wholehead produce categories are already at high penetration levels, until recently the discounters played little to no part in the prepared veg market.However, the past year has seen this change mainly due to the much bigger refrigeration areas being introduced in store – which has helped boost both the penetration and frequency KPIs.
- Have there been any growing/weather issues?
KM: There have been a few challenges, but it’s still early in the UK veg season.
- Why are people consuming more prepared produce?
KM: Busier lifestyles and unpredictable schedules lead to customers planning meals on an ad-hoc basis, and shopping accordingly and seeking solutions to make life easier and save time.The great thing about prepared veg is that it reduces barriers and makes veg that is harder or more fiddly to prepare so much more accessible. For example, on crops such as butternut squash, sweet potato and swede. Also, despite the strong price competition from wholehead price activity, the mixed component products already prepped and ready to cook offer great value for money, and with a more simple pricing hierarchy, customers see this.
- Who is the target market for prepared produce?
KM: Driven by the range being broad, the target market is broad too. From one to two-person households, to families, to the more mature customer – the ease, value for money and pack sizes that are available across the market really open up the customer base.Also, the innovation on offer really helps to encourage and inspire customers to try something a little different – helping to combat any skill gaps in preparation and cooking.
- What are the major innovations in the category to be excited about?
KM: The biggest area of growth for the prepared market at the moment is meal kits. October 2014 saw most of the retailers launch new products in this area, ranging from easy-use vegetable base mixes, to more premium soup mixes and curry kits. Meal kits have just made scratch cooking easier, enabling customers to mix and leapfrog across categories to deliver their meal. Prepared veg with seasoning plus fresh meat plus a can of chopped tomatoes equals a tasty tea. Recent additions in fruit too enable prepared fruit plus lemonade plus Pimm’s to equal a refreshing drink on a summer evening! Other areas to watch are the ever-evolving South American influences, especially with the Rio 2016 Olympics on the horizon, and veg as a substitution for carbs.
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