Coop Denmark, April 2015 What can consumers and retailers expect from the market? Coop Danmark A/S Category Group Manager, Food Esben Meier
1 COOP AND ANIMAL WELFARE 2 CONSUMERS AND ANIMAL WELFARE 3 ROLES AND THE WAY FORWARD
Products must have good eating quality and leave a good taste in your Klik mouth. for Coop at redigere will offer consumers i masteren more products, produced with respect for people, animals and the environment. Proactive food safety We will start looking inside Coop Animal Welfare Increased food transparency CSR & Brands Initiativ 1 Initiativ 2 Initiativ 3 Initiativ 1 Initiativ 2 Initiativ 3 Offer choice of animal welfare products in all Fresh Meat categories Increase the share of organic Fresh Meat Initiativ 1 Initiativ 2 Initiativ 3 Initiativ 1 Initiativ 2 Initiativ 3 Increase share of eggs from non caged hens
Coops ambition: Organic sales growing from 7 to 15 percent of total FMCG Increase the number of animals living a life with better animal welfare by 1 million per annum
Current AW initiatives in Coop Every Day Low Price launch of organic products across categories from January 2015 60% share of free range or organic Fresh Meat sold in the Irma chain Tredje by 2020 niveau Partnership with Sødam Danish Free Range Chickens No eggs from Caged Hens in Irma branded products Free Range Pigs launched in Kvickly (autumn 2014) Free Range Pigs currently testing in Fakta (20 stores) Organic Chicken and Free Range Chicken launched in Fakta more to be announced
Coops Food Policy starts with the consumer... Klik Positive for at criteria: redigere teksttypografierne i masteren - Motivational factors Grow them! Negative criteria: - Hygiene factors / expected standards - New normal for Food safety, transparency, animal welfare etc. Fix them!
1 COOP AND ANIMAL WELFARE 2 CONSUMERS AND ANIMAL WELFARE 3 ROLES AND THE WAY FORWARD
Animal welfare is important for consumers (Coop Consumer Insight survey March 2015 N=1701) Which of the following issues should Coop focus on? Choose up to 3 issues Reduce food waste Ensure development of quality products produced in Denmark 53% 52% Keeping / growing Danish workplaces 47% Increase animal welfare 36% Strenghten local society 28% Increased environmental protection 26% Increase Food safety inspections 20% Ensure dairy farmers a better price 18% None of these 1% 0% 10% 20% 30% 40% 50% 60%
Animal welfare is important for consumers (Coop Consumer Insight survey March 2015 N=1701) Klik for at suppliers redigere? Choose up to 3 teksttypografierne i masteren Is there any of the following issues where you think Coop should work closer with farmers and Better animal welfare 55% Increase sustainability in food production 53% Increase organic production 48% Strengthening local society 37% Ensuring diversity by using old crops and races 22% Better nature protection 22% Increase efficency in agriculture/food production 13% None of these 2% 0% 10% 20% 30% 40% 50% 60%
What s animal welfare for a consumer? 1. Animals must be able to have natural behavior 2. Animals must have low medication 3. Animals must have short transport to abattoir *Source: Animal Welfare, Coop Analyse October 2013 (2000 respondents)
Klik for at redigere teksttypografierne Danes prefer Danish i masteren origin Positive criteria: -Motivational factors Negative criteria: Hygiene factors What's animal welfare for a consumer... *Source: Animal Welfare, Coop Analyse 2013, Coop Consumer Insight-surveys 2014/2015 Good eating quality Animals that can have natural behavior Low medical treatment Short transport time Organic / Free range Recommended by Dyrenes Beskyttelse Farm & Production Management Mortality Castration Wounds/injury Fixation Tail docking Ulcer Etc..
1 COOP AND ANIMAL WELFARE 2 CONSUMERS AND ANIMAL WELFARE 3 ROLES AND THE WAY FORWARD
Balancing supply and demand EU Pork production Roles, responsibility, and effect on animal welfare Fresh Meat 5%** Domestic market Danish Pig production* 95% Export ~1%*** Coop Other retail Catering Standard Special Animal Welfare Source: *L&F statistik 2013 ca. 30 millioner, **information from Danish Crown,** Coop volume converted
We have a positive market situation Consumers are asking for products with better animal welfare but fairly prized Retailers are asking for a market where supply and demand is balanced
The way forward - as we see it... Klik for at Cooperation redigere is teksttypografierne the way forward be specific i masteren on the roles and responsibility in the value chain Avoid unintended effects on the competition in the market Strenghten organic and free range production Focus on long term improvements for animals, industry, trade, consumers and farmers