Red Tractor Labelling Audit

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1 Red Tractor Labelling Audit MAY 2012 UPDATE How the Red Tractor logo is currently used on-pack Published by Assured Food Standards

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3 CONTENTS Foreword 3 Introduction 4 Scope and Methodology of Labelling Audit 8 Retail Sales Value of Core Audited Categories 9 Summary and Results of the Audit 10 Overall Summaries by Retailer 11 Fresh and Frozen Produce 12 Fresh and Processed Dairy; Milk/Cream, Yogurt, Butter and Cheese 14 Fresh Meat and Poutry 16 Sliced Cooked Meats, Bacon/Gammon and Sausage 18 Added Value Meat, Frozen Meat, Bread/Flour 20 1

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5 FOREWORD By David Gregory This is the second Red Tractor Labelling Audit and builds on the very successful launch of our first report published in May We ve had some really positive feedback from across the food industry on the content covered and this year s edition is intended to build on that success. When we published last year s Audit I expressed the hope that it would stimulate debate, thought and action; and that it would help food retailers, processors and packers consider how the use of the Red Tractor logo on packaging could be improved. I am delighted to report progress over the last twelve months. Not only has the wholesale value of food packs carrying the Red Tractor logo increased to around 12 billion, but more use has been made of the logo on the front of food packaging as opposed to the rear of packs. In addition we are aware of a number of relabelling exercises on specific categories in certain retailers own-label ranges which are in process at the time of writing. These will further increase the total market value of packs carrying the logo. Thus, use of the Red Tractor logo is maintaining its positive momentum. It is being used on more qualifying products, and in a way which enables shoppers to see it more easily at point of purchase. In our annual research tracking of shoppers awareness of, and attitudes towards, the Red Tractor logo (conducted by YouGov in March 2012) we have seen awareness amongst primary shoppers grow from 55% to 60%; and the proportion of shoppers who claim to look for it on at least some of their food purchases has grown from 19% to 25%. A further 39% support the principle of a cross-sector logo that indicates which foods are assured and British, meaning that altogether 64% of shoppers are supportive of the Red Tractor. Further details of this research are featured in the following pages. This year s Audit Report highlights further opportunities to feature the Red Tractor logo on qualifying packs, and we look forward to working with retailers and packers to exploit these opportunities. The virtuous circle of more widespread use of the logo, leading to even higher levels of familiarity and understanding on the part of shoppers, has a compelling logic. Our assurance schemes are not just about the 78,000 or so farms which are inspected independently, but they include audits of livestock hauliers, livestock markets, processors and packers. We provide the essential due diligence infrastructure which underpins claims of production standards and origin information throughout the whole food production chain, and on which the food industry relies for integrity of supply chain information and traceability. The result is good quality food that is affordable to the vast majority of shoppers and consumers. We are confident that we make a difference and we are proud of what we do. Independent research commissioned by Defra shows that compliance with UK legislation is significantly higher on certified farms. Our schemes include some standards that are higher than UK legislation, which itself is higher in some respects than EU legislation. Our Audit Report this year is presented with results in a category-by-category format, to enable more focused consideration of the role that the Red Tractor logo can play in signposting assured standards and provenance. We look forward to discussing further opportunities with key companies and, as ever, I would welcome your personal feedback, via chairman@assuredfoodstandards.com David Gregory, Chairman, Assured Food Standards (Red Tractor Assurance) 3

6 INTRODUCTION Red Tractor Continues to Grow The Red Tractor logo first appeared on food packaging in In May 2011 Red Tractor Assurance (which is owned by Assured Food Standards and which operates the Red Tractor Assurance schemes across all primary food production sectors), published its first major Labelling Audit review of the use of the Red Tractor logo on supermarket food products. This second Labelling Audit updates the exercise undertaken last year to provide the most accurate assessment of how the Red Tractor logo is currently being used (as at February 2012 when the products were purchased for the audit) to provide consumer confidence. How does a food product qualify to carry the Red Tractor logo? To qualify to carry the Red Tractor logo, the packer of the food product must be licensed by Red Tractor Assurance. Licences are renewed annually. The packer must pack food products which have been farmed or grown in compliance with one of six sector Red Tractor assurance schemes and, in the case of processed products, that such foods have been processed in accordance with Red Tractor standards in each sector. The six sector schemes cover beef/lamb, pig meat, horticulture, dairy, cereals and poultry. In total nearly 80,000 farms are independently audited by accredited certification bodies to check compliance with each sector scheme s standards, supported by audits of processors and packers. These latter audits check traceability control procedures as well as compliance with processing standards. The Union Flag contained within the logo indicates that the product has been farmed, packed and processed in the UK. Red Tractor now appears on approximately 12 billion worth of food The number of packers licensed to use the Red Tractor logo continues to grow, with around 600 plants licensed at the start of Similarly the retail sales value of food products carrying the Red Tractor logo also continues to increase and it is estimated now to be approaching 12 billion per annum. The Red Tractor logo is therefore by far the most widely used assurance mark in the UK market and it is used extensively on qualifying products in all the major UK supermarket chains. In parallel to the increased use of the Red Tractor logo on food products, independent surveys show that shopper awareness of the logo is also increasing. A YouGov survey conducted in March 2012 revealed that 60% of primary shoppers now recognise the logo, compared to 55% in March 2011 (Chart 1). The same research shows a significant shift in terms of the importance given to assurance marks on packaging, when compared to identical research conducted a year earlier. A sample of 1,558 primary shoppers in Britain was asked to rate on a scale of 1 to 5 how important they felt assurance marks on food packaging were (where 1 is Very Important and 5 is Not at all Important ). This year 34% of primary shoppers rated them Very or Quite Important compared to 28% twelve months ago (Chart 2). 4

7 Growth in awareness of Red Tractor logo CHART 1 Awareness of food assurance logos Which if any of the following logos are you aware of/have you seen before? 100 % +1% 90% 91% % 55% 60% +4% 43% +2% -1% 39% 35% 37% 34% 33% 20 +1% -2% -1% 0% % 12% 6% 4% 5% 4% 4% 4% NONE OF THESE Source; YouGov, 1,558 primary shoppers March 2012, 1,461 primary shoppers March 2011 CHART 2 Importance of marks on pack How important to you when selecting food items are assurance marks/logos on pack? % 34% of shoppers consider assurance marks important (up from 28% in 2011) 33% 38% The number of shoppers who do not consider assurance marks to be important has decreased % 21% 21% 17% 19% % 13% 13% Very Important Quite Important Neither Rather Unimportant Not at all Important Source; YouGov, 1,558 primary shoppers March 2012, 1,461 primary shoppers March

8 Red Tractor logo appeals to shoppers across a number of key attributes Previous qualitative research has shown that there are a number of key attributes of the Red Tractor assurance scheme which are motivating to shoppers. Not only does the scheme have appeal for its broad-based coverage of animal welfare and environmental protection standards, but it also appeals because it facilitates food chain traceability and is operated by an independent assurance body. Additionally it holds appeal due to its unequivocal rules regarding origin of farming and processing, as indicated by the flag appended to the logo. CHART 3 Importance of Red Tractor attributes Rate each of the following attributes on a 5 point scale % 69% 68% 67% 70% 71% Ability to trace back to farm of origin Reassurance that the food has been farmed and packed in the UK (i.e. when the Union Flag is used in the logo) Having an independent body which audits the food chain and ensures production standards are being met Reassurance about the food production process all the way from farms to pack Having high standards in each part of the food production process (Number rating each attribute as Very / Quite Important) Source: YouGov, 1558 primary shoppers March

9 25% are proactive Red Tractor shoppers With awareness of the logo apparent amongst the majority of primary supermarket shoppers in the UK it is clear that optimal impact for the Red Tractor logo is achieved by using it on the front or top of food packaging. Two-thirds of the shopper population now support the principle of having a single cross-sector assurance mark, and a quarter say that they look for it on at least some food categories when shopping. Both ratios have increased since last year. CHART 4 Attitude to Red Tractor when shopping Which of these statements best describes your attitude towards the Red Tractor logo? 25% are Proactive Red Tractor Shoppers I actively look for it on food packs when shopping The RT logo positively influences my purchasing of some foods % 4% 17% 21% 39% are Red Tractor Supporters I support the principle of a logo like the RT to identify which foods are assured and British but don t really look for it when shopping % 39% 28% 23% I have no interest in it at all % 17% 2011 None of these 13% 2012 %

10 SCOPE AND METHODOLOGY OF LABELLING AUDIT During February 2012 a pre-determined list of food products was purchased from each of the top eight supermarket retailers who feature the Red Tractor on qualifying own-label food products. The purpose of the survey was not to review sourcing policies, but purely to monitor the way in which the Red Tractor logo is currently being used on packaging in each retailer. The timing of the shopping audit dictated that British-sourced products in some category ranges were absent due to seasonality, but in total 348 products were purchased and analysed. Qualifying products for the shopping audit were deemed to be those that already carried the Red Tractor on pack, or those that appeared to qualify to carry the Red Tractor logo based on other on-pack information. Each product was analysed in terms of exactly where the Red Tractor logo was featured on pack, its size and its relationship with other provenance messages or assurance marks/logos. Photographic records were made of the front and/or back of each pack. It should be noted that Red Tractor Assurance operates a main ingredient policy which allows the Red Tractor logo to be used in cases where the main ingredient of a processed food product is Red Tractor-assured and comprises at least 65% of the final product by weight/ volume. In such cases the Red Tractor logo should specify underneath the main ingredient which is assured. This means that a fruit yogurt product where more than 65% of the ingredients are comprised of British milk can carry the Red Tractor logo with the word Milk underneath (thus clearly denoting that there is no assurance claim being made for the fruit ingredient). On the other hand a steak pie where less than 65% of the product s volume is accounted for by assured beef cannot be licensed to carry the logo. It was apparent from this year s audit that there were some lower value sausage ranges which contained British pork (and carried this information on pack), yet were unable to use the Red Tractor logo because the pork comprised less than 65% of the volume of the total ingredients. TABLE 1 Own-label products purchased where available in each retailer Produce Dairy Meat Bakery Fresh Frozen Fresh Processed Fresh Frozen Processed Pre-packed potatoes (standard + premium), carrots, onions, leeks, mushrooms, cauliflower, greens, apples (all standard) Chips, vegetables Milk, cream Own-label yogurt, butter, cheddar (value + standard + premium), grated cheese, sliced cheese, regional cheese Beef mince, beef sirloin, lamb chops/ steaks, pork loin chops/steaks (all standard + premium), roasting joints (all species), whole chicken (value + standard + premium), chicken cuts (standard + value), turkey fillets Beef mince, chicken (fillets/ diced), burgers Ham (value + standard + premium), other cooked meats, bacon (value + standard + premium), sausage (value + standard + premium), gammon, added value products (e.g. marinated meat, meat in sauce) Sliced bread, flour * *Maximum number of products bought from any one retailer in each category (total 67) 8

11 RETAIL SALES VALUE OF CORE AUDITED CATEGORIES The core food categories on which the Red Tractor has traditionally been used are together worth over 29 billion per annum in terms of retail sales value. Additionally the Red Tractor has more recently been licensed to packers of manufactured products such as breakfast cereals, beers and lagers. TABLE 2 Retail value by category CATEGORY RETAIL SALES VALUE Million per annum Total Fruit 4,294 Total Vegtables 4,866 (Of Which Total Frozen Veg) (1,043) Fresh Milk & Cream 3,234 Yogurt Incl Drinking Yogurt 1,601 Butter 625 Core food categories on which the Red Tractor is traditionally used are together worth over 29 billion Cheese 2,600 (Of Which Own/Private Label) (1,407) Fresh & Frozen Beef 1,954 Fresh & Frozen Lamb 588 Fresh & Frozen Pork 924 Fresh & Frozen Poultry 2,328 Bacon & Gammon 1,348 Sausage 706 Sliced Cooked Meats 2,088 Bread 1,916 (Of Which Own/Private Label Packed Bread) (461) Flour 97 Source: Kantar Worldpanel 52 w/e 18 March 2012 TOTAL CORE CATEGORIES 29,169 9

12 SUMMARY AND RESULTS OF THE AUDIT Of the total of 348 qualifying products purchased in our shopping audit during February 2012, 242 (70%) featured the Red Tractor logo. This represents a welcome upwards improvement from the figure of 66% in the corresponding audit conducted in January/February Of the 242 packs which carried the Red Tractor logo, 166 (69%) featured it on the front/top of pack, compared to 71% in last year s audit. Best front-of-pack use continues to be on products in the fresh meat and poultry category. There remain some significant opportunities for own-label packers to become licensed to use the Red Tractor logo and to incorporate it onto their packaging, particularly in the frozen produce, processed dairy, sliced cooked meats and bread categories. TABLE 3 Results by category RT ON RT ON NO RT TOTAL CATEGORY FRONT REAR/SIDE LOGO QUALIFYING OF PACK OF PACK USED PACKS Fresh Produce Frozen Produce 2 n/a 9 11 Dairy, inc. processed dairy Sliced Cooked Meats Bacon & Sausage Fresh meat (beef, lamb, pork, poultry) Added value & frozen meat Bread/flour 3 n/a 6 9 TOTAL Significant opportunities in fresh produce, dairy, sliced cooked meats and bread 70% of qualifying products featured the Red Tractor logo 10

13 OVERALL SUMMARIES BY RETAILER Three retailers only ever use the Red Tractor on the front of packs across all categories, i.e. they never use it on the side/rear of packs. Two retailers adopt an approach whereby the Red Tractor logo is predominantly used on the side/rear of packaging. Coincidentally these are the two retailers with the highest number of qualifying products purchased in the audit sample, which is indicative of their sourcing policies. Of the 106 missed opportunities to use the Red Tractor logo, we identified some qualifying packs which didn t carry the logo in every retailer. Three retailers only ever use the Red Tractor on front of pack across all categories TABLE 4 Red Tractor usage by retailer FRONT SIDE/REAR TOTAL QUALIFYING TOTAL OF OF N0. OF PACKS WITH QUALIFYING PACK PACK PACKS NO RED PACKS RETAILER USE USE WITH RT TRACTOR LOGO Aldi (64%) Asda (72%) Co-operative (72%) J Sainsbury (66%) Lidl (85%) 4 27 Morrisons (72%) Tesco (89%) 5 46 Waitrose (46%) TOTAL 166 (48%) 76 (22%) 242 (70%) 106 (30%)

14 Fresh and Frozen Produce Lowest overall use of the Red Tractor logo Of the 75 total packs of fresh and frozen produce purchased in the audit sample, the Red Tractor logo was used on the front of pack of 26 of them (35%), on the rear of pack of 15 (20%) and not at all on 34 (45%). Fresh and frozen produce remains the category with the lowest use of the logo on qualifying products. This is a function of seasonality in produce supply, together with the fact that two retailers do not use the Red Tractor logo on produce categories. Front of pack use Four of the retailers surveyed - Asda, Co-op, Lidl, and Morrisons - use the Red Tractor on the front of their fresh produce packaging. Rear of pack use Two retailers, Sainsbury s and Tesco, use the Red Tractor logo on the rear of their fresh produce packaging. In the case of Tesco, its proprietary Nurture logo appears on the front of packs of all produce. 12

15 Opportunities in frozen produce Missed opportunities Two retailers, Aldi and Waitrose, do not use the Red Tractor logo on produce. In the case of Waitrose the house policy is to feature the LEAF logo on the rear of pack. Other examples of qualifying British produce not carrying the Red Tractor logo were evident in cases where the origin was indicated via overprinted information on packaging used for flexibly sourced produce (which is dependent upon seasonality). Frozen Produce Frozen produce generally does not carry the Red Tractor logo in most retailers, although two examples of the Red Tractor being featured on the front of packaging were noted in Co-op and Tesco. Examples of Red Tractor use front of pack on frozen produce Missed opportunities 13

16 Fresh and Processed Dairy; Milk/Cream, Yogurt, Butter and Cheese In total out of 71 fresh dairy and processed dairy products, the logo was used front of pack on 26 products (37%), on the rear of pack on 26 products (37%) and not at all on 19 products (27%). Front of pack use Every retailer uses the Red Tractor logo on containers of fresh milk, usually in the same field of vision as the front of pack product description and most retailers use the logo similarly on fresh cream cartons. In addition some impactful examples were noted of the logo being used on the front of pack of cheese and butter. Some impactful examples of the logo being used front of pack 14

17 Relatively low front of pack use Rear of pack use The Red Tractor logo was noted on more butter and cheese products in this year s audit than in 2011, but it remains house policy for some retailers to apply it on the side or rear of packs rather than the front. Missed opportunities A number of opportunities to include the logo on packaging were noted, where other provenance information is prominent but the Red Tractor logo is not used 15

18 Fresh Meat and Poultry Widespread use of the Red Tractor logo on fresh meat and poultry across all retailers There is widespread use of the Red Tractor on fresh meat and poultry across all retailers, with the logo appearing on 87% of the 108 qualifying products purchased from the fresh beef, lamb, pork and poultry categories. Front of pack use In six of the eight retailers the Red Tractor logo is generally used front of pack on qualifying fresh meat. 16

19 Rear of pack use In both Sainsbury s and Waitrose, use of the Red Tractor on packs of fresh meat is generally on the rear or side of packaging. Missed opportunities A few examples of qualifying fresh meat products not carrying the Red Tractor were noted. In general these were packs where origin information was overprinted on the label, or where other meat assurance marks were used, although there were a very few examples where provenance information alone was used with no supporting assurance logo. 17

20 Sliced Cooked Meats, Bacon/Gammon and Sausage Processed meat products comprised around one-fifth of the shopping sample in this year s audit, but application of the Red Tractor logo to qualifying products remains inconsistent between retailers. In some cases the Red Tractor logo is used in conjunction with the Freedom Foods logo and in others it is absent. Only one retailer (Tesco) exclusively used the Red Tractor logo on the front of all qualifying packs purchased in the audited sample of these categories. Front of pack use Good examples of use of the logo on the front of packaging were noted in the majority of retailers. Rear of pack use Rear of pack use was less common in this category. The logo was noted as being used on the rear of pack on some of the products purchased in three retailers. Overall, application is inconsistent 18

21 Majority of sliced cooked meats which qualified to feature the logo did not carry it Missed opportunities The majority of packs of sliced cooked meats which qualified to feature the logo (17 out of 26) did not carry it. Red Tractor Assurance is aware that some re-labelling exercises are underway during the first half of this year and it is therefore expected that greater use of the logo will be evident on packs in this category during Also noted were some missed opportunities to use the logo on some bacon/gammon and sausage products. NB. We noted that some standard and value tier pork sausage products did not contain enough qualifying pork by volume to pass the 65% main ingredient threshold (see explanation on Page 8) and these products were not recorded in the audit results. 19

22 Added Value and Frozen Meat Variable use of Red Tractor logo Included in the shopping audit were examples of added value meat products (marinated meat, meat in sauce, etc) where the main meat ingredient qualified for use of the Red Tractor and it accounted for more than 65% of the product by volume. Use of the Red Tractor on these products and on frozen meat products was variable, with some admirable front of pack use (6 of 20 products), some rear of pack use (7 of 20 products), and some missed opportunities (7 of 20 products). Front of pack use Rear of pack use Missed opportunities 20

23 Bread/Flour Inconsistent use of Red Tractor logo On own label flour and packed plant bread some front of pack use of the Red Tractor logo was noted, together with some examples of apparent missed opportunities where on-pack claims were made about the provenance of the wheat used. Bread/Flour front of pack use Bread/Flour missed opportunities 21

24 MAY 2012 UPDATE Assured Food Standards (AFS) Europoint, 5-11 Lavington Street, London SE1 0NZ Telephone: Assured Food Standards

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