Consumer Attitudes Towards and Usage of Fruit, Vegetables and Potatoes. May 2010

Consumer Attitudes Towards and Usage of Fruit, Vegetables and Potatoes May 2010 Produced by: Lorcan Bourke, Horticulture Department, Bord Bia Date: 1/5/2010

Table of Contents Page No. 1. Introduction 1. 2. Research Objectives 2. 3. Research Methodology 3. 4. Main Findings: 4.1 Fresh Produce Consumption 4. 4.2 Daily Portions of Fresh Produce 9. 4.3 Fresh Produce Shopping Behaviour 15. 4.4 Fresh Produce: Attitudes to Irish & Organic Produce 23. 4.5 Perception of Fresh Produce & Alternative Categories 28. 4.6 General Attitudes 33.

1. Introduction Bord Bia conducts consumer market research into behaviour and attitude trends, in relation to fruit, vegetables, and potatoes on an ongoing basis. The research outlined in this document is an update on research carried out in 2006, and is intended to gauge changes in consumers attitudes and behaviour, in respect to purchase and consumption of fresh produce over that time period. Of particular interest in this review were changes in behaviours and attitudes between 2006 Celtic Tiger Ireland and the unfolding and deepening recession of 2010. The report is written up not only to present key research findings, but also to present an analysis of the implications of the research, in so doing hopefully presenting opportunities for suppliers and retailers of fresh produce in Ireland. For further information on this research report contact: Lorcan Bourke, Horticulture Department, Bord Bia, Clanwilliam Court, Dublin 2. E-Mail: lorcan.bourke@bordbia.ie. Phone: 01-6685155 1

2. Research Objectives The research objectives for this project can be segmented into two distinct categories: Research Objectives and Marketing Objectives, were set as follows: Research Objective To assess the behaviour of the Irish population and their attitudes in relation to the purchasing, consumption and usage patterns of fruits, vegetables, potatoes, chilled salads and related substitute markets. this first objective then informing the marketing objective; Marketing Objective To communicate trends to growers, packers and other stakeholders to plan promotional campaigns to ultimately drive increases in sales. The research objective can be further distilled into three key areas where an information requirement exists: 1. Consumption levels of fresh produce (Food Horticulture Produce) 2. Perception of fresh produce (Food Horticulture) Produce Category 3. Perception & Consumption of Competing/Substitute products 2

3. Research Methodology Bord Bia engaged Amárach Research (market research consultants) to undertake this ad hoc market research survey on their behalf. In total, 796 Irish consumers were administered a 20 minute face-to-face questionnaire, which was completed in the respondent s own home by fully trained Amarach Research interviewers. The fieldwork was conducted in March 2010. The research was conducted among a representative sample of adults aged 18+ in the Republic of Ireland. Quotas sampling was utilised to ensure a nationally representative sample of all adults were interviewed, quotas being set on gender, age, social class and regional basis to ensure representativeness. Weighting was employed to correct for any sampling error that occurred in the base population. The results are written up and presented in terms of all consumers and grocery shoppers. 66 of all adults surveyed were either primarily or jointly responsible for grocery shopping in their household. These grocery shoppers were asked a number of questions relating to their shopping behaviour for fruit, vegetables, and potatoes. As such, some parts of this report will refer to all consumers other findings will relate to the sub-sample of grocery shoppers only. The distinction will be highlighted between this sub-sample and all consumers. 3

4. 1 Fresh Produce Consumption What consumers are eating? An extensive list of different fresh produce items, complementary items and substitute products were shown to consumers, and they were asked how frequently they consumed each of these products. The scale of frequency focused on trial of specific food categories as well as consumers typical food consumption, both on a daily and weekly basis. The full list segmented into three groupings based on consumers trial (i.e. ever consuming), the table below illustrating: High incidence of consumption (85+) Fresh fruit Fresh potatoes Fresh vegetables Casserole/stew Salad (from scratch) Rice Frozen chips/ wedges/waffles Fresh fruit juice Frozen vegetables Yoghurt (with fruit) Sandwiches/ wraps/ paninis Medium incidence of consumption (70-84) Baked goods (fruit filling) Packet vegetable soup Low incidence of consumption (40-69) Fresh vegetable soup Pizza Pasta/Noodles Stir fry (no meat) Tinned vegetables Probiotic drink Chilled wet salads Smoothies Stir fry (meat) Tinned fruit Chilled leafy salads Fajitas/Tortillas Prepared vegetables Prepared chilled potatoes Pre-packed chilled tray/ bowl salads Prepared chilled fresh fruit Speciality chilled potatoes Frozen fruit As is evident, fresh produce dominates the high incidence group, suggesting they are staples of the Irish diet. The two key exceptions included in the consideration set are frozen vegetables and frozen chips. Indeed, the incidence of consuming frozen vegetables is currently at 88, up 10 from three years ago. This suggests that consumers are increasing their trial of fresh produce substitutes, possibly seeking a more convenient product. Trial of these substitutes may continue to increase, as consumers become increasingly aware of the options available to them. Conversely, pre-prepared fresh produce and processed foods dominate the medium and low incidence consumption groups. This suggests that Irish consumers prefer to make their meals from scratch, using fresh produce wherever possible but do utilise alternatives on a regular basis. The incidence of smoothie s consumption is currently 72, up 14 from three years ago, again convenience would appear to have played a part in this increase, however the primary driver appears to be health reasons. Irish consumers are becoming more aware of healthy options, and smoothies enable them to consume a healthy drink conveniently. As a general trend products that offer health and convenience to consumers are those winning out in the marketplace. 4

Frequency of Consumption of Food Types 15 (Base: All adults 18+) Primary Fresh fruit Daily 43 4-5 times weekly+ 79 Weekly+ 94 Ever Eaten 98 Fresh potatoes 47 81 94 98 Fresh vegetables 48 83 95 97 Fruit juice 26 60 80 91 Casserole/stew 1 10 72 90 Frozen vegetables 2 11 57 88 Salad (from scratch) 4 21 60 87 Yoghurt with Fruit Rice Sandwiches/wraps/paninis Frozen chips/wedges waffles 14 2 13 7 1 10 36 43 49 56 63 70 88 86 85 84 The weekly consumption of fresh produce is nearly ubiquitous, unsurprisingly given its versatility. Encouragingly, fresh produce is becoming increasingly integrated into the Irish diet with 48 of consumers now eating fresh vegetables on a daily basis, up 7 from three years ago, while 47 eat fresh potatoes and 43 eat fresh fruit daily, both showing a 3 increase on three years ago. Fresh potatoes remain the dominant form of carbohydrate in the Irish diet: only 2 of consumers eat rice on a daily basis, the same for pasta. Considering the daily consumption of fresh vegetables and potatoes, it is likely that a large number of meals eaten by Irish consumers still follow the meat and two veg tradition, suggesting potatoes and one other vegetable accompany the main meal of the day. Casserole and stew are also popular dishes, though they are by no means staples: with most consumers only eating them once a week. Though daily fruit consumption is high at 43, consumers are also consuming fruit in different forms; 26 of consumers drink fruit juice on a daily basis, while 14 eat yoghurt. A further 12 drink probiotic drinks on a daily basis. Again, these levels of daily consumption are likely to be driven by health reasons. When consumers are unable to consume fresh fruit, they may switch to these alternative forms, which they perceive provide them with health benefits but are also more convenient. 5

How has consumption of food categories changed in the past three years? Changes in Consumption of Food Categories Versus 3 Years Ago 18 (Base: All adults 18+) Fresh fruit Less More 3 24 Remain The Same Do Not Eat Net Gain Loss 2010 Net Gain Loss 2006 72 1 +21 +16 Fresh vegetables 2 22 75 1 +20 +13 Salads 3 17 73 7 +14 +13 Pasta 4 14 66 16 +10 +10 Rice 3 15 70 11 +12 +8 Fresh whole potatoes 6 10 82 1 +4 +4 Frozen chips/wedges/waffles 13 7 64 15-6 -14 Pre prepared chilled potatoes 7 4 52 35-3 N/A Consumers were asked if their frequency of consuming key food categories had increased, decreased, or remained the same versus three years ago. Consumers claim to be eating more fresh produce compared to three years ago; 24 of consumers claim to be eating more fruit now, similar to 22 three years ago. Also, 22 of consumers claim to be eating more fresh vegetables, compared to 18 three years ago. However, the growth in potato consumption remains static: 10 claimed to eat more potatoes, but 6 are eating less. This static growth in potato consumption may be underpinned by growth in claimed consumption of alternative carbohydrates: 15 of consumers claim to be eating more rice, 14 for pasta. Though both rice and pasta are still far behind potatoes in overall consumption, their growth in popularity may impact on potato consumption in the next few years. Frozen potatoes variants are showing the highest number of consumers claiming to be cutting back at 13. 6

Rationalised Reasons for Eating More Fruit, Vegetables, Salads, Potatoes 19 (Base: All adults eating more of specific food type) Fruit (23) Vegetables (22) Salads (17) Fresh whole potatoes (10) Good for health/ Healthy alternative 71 68 59 56 Like the taste 41 32 31 36 Good value for money 26 23 22 26 Improved quality available 21 19 19 19 More availability all year round 18 20 21 18 Easy to prepare/cook 13 20 29 25 Already prepared 11 6 14 6 Cheaper now 8 7 10 9 Convenient packaging 8 8 10 6 Change in life stage/situation changed 7 11 11 7 (Q.9) For those who are eating more fresh fruit and vegetables, roughly 70 claim they do so for the health benefits. 41 of those eating more fruit do so because they enjoy the taste, suggesting fruit may be considered a healthy treat by consumers: instead of having a chocolate bar, some consumers may have a piece of fruit. 26 of consumers also consider fruit as good value for money, with the same for fresh potatoes. 25 of those eating more potatoes claim they do so, because they are easy to prepare and cook. Very few consumers are eating less fresh produce. For those that are eating less fresh fruit and vegetables, reasons cited include simply not thinking about including fresh produce as part of the diet and for some not enjoying the taste. 7

Reasons for Reduced/Non Consumption of Fresh Whole Potatoes 23 (Base: All adults eating less fresh whole potato/do not eat 52 people)* Any Mentions 7 Preparation Takes too long to cook 52 77 Carbohydrate replacement/preference I eat more pasta/rice/noodles 63 58 Pasta/rice/noodles cook faster Take a lot of work to prepare I don't know how to cook them properly Health issues They are fattening Not healthy 18 49 47 48 70 67 My children prefer pasta/rice/noodles I eat more frozen potato variants My children prefer frozen potato variants Expense/price/waste Bag size are too big/waste More expensive than rice/pasta/noodles Reject taste 23 17 16 29 18 18 29 Particular focus was given to potatoes given the growth of alternative carbohydrates product options in the Irish diet. For those consumers eating less fresh whole potatoes versus three years ago and those who do not eat potatoes, a specific question was asked regarding their lower consumption. For this group, in contrast to fresh fruit and vegetables, taste was not the issue. Rather, these consumers had weight management and some health concerns: for this small group within the overall sample, potatoes were considered too fattening and less healthy than other foods. These consumers also felt that potatoes took a lot of time and work to prepare and cook, with many saying that pasta, rice and noodles cook faster. Implications It is encouraging to see that fresh produce is a staple of the Irish diet but work is required to maintain this momentum in the market to encourage continued growth. Though fresh produce makes up the majority of food consumed, convenience oriented alternatives to fresh produce, such as frozen vegetables, frozen potato products (chips/waffles), rice, and pasta are becoming more popular with consumers. As diets become more varied, it is vital to draw consumers back to traditional fresh potatoes and associated vegetables. This can be done through promotion or providing recipes that utilise fresh produce in novel ways, and by highlighting the health and energy benefits of fresh fruit, vegetables and potatoes, a key factor for consumers. While the consumption level of fresh fruit continues to increase, the increase will be influenced by the consumption of alternative forms of fruit, such as juice and yoghurts. These products have a valuable convenience factor for consumers, so will continue to be popular with consumers. There will be a potential opportunity for growers and packers to expand their operation, providing fresh, locally produced juice to consumers. This could also be supported by messaging to encourage consumers to buy fruit for the purposes of making juice, smoothies and fruit desserts at home, with freshness and price being key considerations here. 8

4.2 Daily Portions of Fresh Produce Do consumers understand portion size? Consumers looked at a number of photographs showing a variety of fresh produce portions, and were asked to identify the correct portion size for vegetables, fruit, and potatoes. Opinion on Definition of Portion Size 28 (Base: All adults 18+) Q. Looking at this card, there are different examples of portion sizes shown which example would you consider to represent one portion? Fruit Vegetable Potato 2010 2006 2010 2006 2010 2006 12 14 18 15 11 6 45 75 75 58 63 62 46 Can t say 23 20 25 12 8 1 3 Can t say 1 2 Can t say 2 3 Three in four Irish consumers indentified the correct portion size for fruit, the same as three years ago. 62 of consumers indentified the correct portion size for potatoes, an increase of 17 () = on 2006three years ago. This is likely driven by consumers health concerns: consumers have increasingly become aware of health issues over the last three years and have factored these into their diet. Only 58 of consumers indentified the correct portion size for vegetables, a decrease of 5 on three years ago. Implications Though concerns on weight management may have increased the accuracy of judging the correct potato portion, the positive health attributes of vegetables may have caused confusion when viewed in relation to portion size. It is postulated that some consumers may select a smaller portion size of potatoes, hoping to reduce the amount of food consumed, while some consumers may select a larger portion sizes of vegetables, thinking they should eat as much fresh vegetables as possible. This offers great opportunity for improved communication, with plenty of room for education in this area, particularly to communicate the fact that potatoes are virtually fat free. It is important for consumers to recognise the correct portion size of fresh produce, so that they can effectively include fresh fruit, vegetables and potatoes in their diet. 9

How many portions are consumers eating? Ideal Versus Actual Fruit & Vegetables Portion Consumption per Day Actual Numbers 103 (Base: All adults 18+) Six+ Ideal Fruit & Veg Actual Fruit & Veg 2010 2006 2010 2006 8 8 5 11 Six+ 20 50 Five 34 14 Five 70 Four 16 24 Four Three One-two None Average no. of portions 14 Three 9 19 Two 16 8 12 5 9 One 4 1 3 * * None 4.7 4.2 3.9 3.2 70 of consumers correctly identify that five portions of fruit and vegetables a day is the recommended number, this represents an increase of 20 on three years ago. In total, 78 of consumers said 5 or more was the recommended daily amount, this compares to 45 of consumers who claimed to actually eat 5 or more portions of fruit and vegetables a day, an increase of 20 on three years ago. 19 22 10

Reasons for Not Eating Recommended 5 Portions of Fruit & Vegetables a Day 32 (Base: All not eating 5+ portions of fruit & veg per day 55) Didn t realise I was not eating enough 33 Prefer other foods Forget/don t remember to eat fruit and vegetables Don t like eating fruit Don't like eating vegetables Don't have the time Fruit & vegetable storage leads to waste Expensive/poor value for money Too difficult to prepare Limited Cooking skill 23 14 13 10 9 6 5 5 4 Those that are eating less than five portions a day were slightly more likely to be male and from a lower socio economic background. A third of consumers who are eating less than five portions a day, say they didn t realise they were not eating enough, while 23 say they prefer other foods. Only 5 say fresh produce is too expensive and 5 say they are too difficult to prepare. 11

Actual Potato Portion Consumption 103 (Base: All adults 18+) 2010 2006 Four Three 4 6 11 7 Two 31 21 One 52 63 None Average no. of portions 2 3 1.6 1.5 With regards to potatoes, 52 of consumers eat one portion a day, while 31 eat two portions a day. This is a marked increase on three years ago, when 63 of consumers ate one portion a day, while only 21 ate two portions a day. Implications Positively, the awareness of the five-or-more a day message is increasing. The five-a-day message has been very successful in raising both awareness and consumption of fresh produce. However, 33 of consumers are still unaware of the message. Ongoing communication of the five-a-day message and branding fresh produce with one of your five daily portions per day, can help keep the message in consumers minds. Although 76 of consumers recognise the need for eating the recommended portions, 48 are still knowingly eating less than what they consider to be ideal. Though these consumers are knowingly eating less, that does not mean they wilfully choose to eat less. More likely, there is an inherent desire to eat more. The continued advertising of the five-a-day message can provide consumers with suggestions on how best to incorporate these portions into their daily diet. Recipes and alternative ways to use fresh produce can be provided, to encourage trial and consumption among those consumers who prefer other foods. 31 of consumers are now eating two portions of potatoes a day, compared to 21 of consumers three years ago. Those eating only one portion of potatoes are likely doing so at dinner, so the increase to two portions suggests potatoes are increasingly being considered as an option for lunch. Simple recipe ideas such as the baked potato may be driving this increase. It should be possible to further capitalise on the lunchtime meal and particularly quick snacks for kids displacing the role of frozen chips and waffles. Consumers need to be reminded that potatoes can offer a quick, healthy meal option, especially for growing children. This opportunity can be exploited by providing simple recipes specifically tailored for cooking in work, or on the run while at home (for example, using the microwave). 12

Neither price nor convenience appears to be major barriers for increasing consumption of fresh fruit and vegetables. Instead, further increasing awareness and putting produce top of mind or within the people s mind frame is vital. All opportunities must be used to put fresh produce ideas and recipes in front of consumers and refresh their memory as to how healthy and good value it really is. The latter point in terms of its value has to be presented to the public as good value for money, which is particularly important in recessionary Ireland. Availability of fresh produce is also an important sales opportunity; ensuring stores have ample supplies of excellent quality fresh produce on their shelves and making sure shelves are stocked at all times with this produce. Attractive point of sale material can stimulate consumers to think beyond their normal shopping experience of the fixture and should be used where permitted, but refreshed periodically. 13

Reported Perceived Number of Portions Consumed versus Perceived Recommended Number of Portions of Fruit and Vegetables 104 Consumed less than perceived ideal 48 2010 11 41 Consumption equals perceived ideal Consumed less than perceived ideal 60 2006 8 32 Consumption equals perceived ideal Consumed more than perceived ideal Consumed more than perceived ideal Regardless of the recommended five portions a day, 41 of consumers are eating what they consider to be the ideal number of portions, while 11 eat more and almost half knowingly eat less than they believe to be the recommended number. Three years ago, only a third ate what they considered to be ideal, with only 8 eating more and 60 eating less. Again, this highlights that consumers are becoming more mindful of their diet and the food they eat on a daily basis. 14

4.3 Fresh Produce Shopping Behaviour In this section different aspects of grocery shopper s behaviour and attitude towards the fresh produce section are reported on. 66 of all adults surveyed were either completely or jointly responsible for grocery shopping in their household, these individuals were asked a series of questions regarding shopping for fruit, vegetables and potatoes. Where are grocery shoppers buying fresh produce? In all 90 of Irish grocery shoppers purchase fruit, vegetables or potatoes from a mainstream supermarket, by far the most popular channel for purchasing. The second most visited channel now is discounters (Aldi, Lidl); 45 of shoppers visit them to purchase fresh produce. In 2006, 28 of shoppers claimed to purchase from discounters. There has been an increase of 17 points over the two periods of the research. New store openings, in the intervening time period, have assisted their increased market share. Incidence of purchase by Channel/Location 40 (Base: All grocery shoppers 66) Supermarket 2010 90 2006 83 Discounter 45 28 + 17pts Green grocers 28 29 Convenience store 28 34 Direct from farm/farmers market/box scheme 19 10 + 9pts Just over a quarter of grocery shoppers purchase fruit, vegetables or potatoes from a green grocers, the incidence consistent with that seen in 2006; these shoppers are more likely to be female and also those who eat their five-a-day. The incidence of shoppers purchasing from Convenience Stores has fallen back by 6 points over the past three years, potentially driven by the change in consumer s discretionary spending power, with keen pricing being an ongoing concern for consumers in the current economic climate. However, as in 2006 the profile of the convenience store purchaser is more likely to be male and/or shoppers with no children in the household. 15

With the growth in recent years, in the trend of Keep It Real as identified in Bord Bia s Consumer Lifestyle trends research, consumers are looking to purchase items that are real and authentic, because they have stood the test of time and remained true to their heritage. Shoppers are attracted to products and produce that have continuity with the past, which offer a real and valued experience, and convey to the consumer a sense of celebrating tradition. Suppliers must therefore display a pride and interest in the craft involved in producing fresh produce, from the farm onwards. The incidence of those purchasing directly from the farm or from farmers market has almost doubled in the past three years, now one in five shoppers purchasing from this channel. How much is purchased by each channel? Volume of Produce Purchased by Channel/Location 41 (Base: All grocery shoppers 66) Supermarket 59 Discounter Greengrocers Convenience store Direct from farm/farmers market/box scheme Other 17 8 8 6 3 Higher for over 55 yr olds and ABC1F50+ households. Significantly higher for male shoppers. The volume of produce purchased by channel is reflected in the incidence of purchase, with supermarkets being the primary channel accounting for 59 of all produce purchased, one third of shoppers buy all of their fresh produce exclusively from supermarkets. Discounters claim a 17 share of the market, however only 2 of shoppers buy all their fresh produce requirements here suggesting consumers cherry pick what they buy, instead of them fulfilling all their fresh produce shopping needs. The more traditional channels such as greengrocers and direct from farms/farmers markets account a lower share of the market - there are definite demographic groups opting for these channels. Greengrocers volume is more likely to come from older and more affluent grocery shoppers. 16

Implications Given the prominence of supermarkets in the fresh produce market, this channel provides a key focus for marketing activity in this sector. 90 of shoppers purchase fresh fruit and vegetables through supermarkets, thus the channel offers the greatest exposure to the Irish grocery shopper than any other. Successful category management of the fresh produce department in all supermarkets is vital to increasing industry sales. Maximising the market share of locally grown fruit, vegetables and potatoes either within their season or from storage is critical for the sustainable growth of the domestic fresh produce industry going forward. Aldi and Lidl s growth in share in this sector over the past number of years is not surprising given the economic strain the recession has placed on the available spend of grocery shoppers. The profile of this shopper shows no sweeping demographic skews, which imply the discounters are now becoming part of the average shoppers shopping experience. How consumers shop the fresh produce section? Grocery shoppers were asked about the different factors influencing how they were purchasing fruit and vegetables, the results remarkably similar to each other. When compared with the 2006 findings, it was found that the display/or in-store influence has diminished somewhat, with planned purchasing and price being more influential overall now. Fruit Vegetables 2010 2006 2010 2006 Planned 33 30 Planned 36 31 +5 pts Display 46 51-5 pts Display 45 51-6 pts Price 21 19 Price 21 18 In 2010, 33 of the consumer decision to buy fruit is pre-planned and 36 for vegetables. In all approximately 45 of the decision is accounted for by the display and this is down by 5 and 6 points on (2006) respectively for fruit and vegetables on the 2006 findings. Availability of quality produce on display is the largest influencing factor in generating sales in the category (i.e. consumers making choice by looking to see what is available). The fresh 17

appearance of produce is also a key consideration - with 16 of influence being attributed to this aspect. Implications Irish grocery shoppers are considering all aspects of their purchases more now than they did in 2006 as manifest by the fact that planned purchasing and pricing, now account for more of the purchase influence than the in-store display. Both of these factors under-pins the shift in grocery shoppers available spend in this period. More shoppers are being influenced by the promotions and deals available and are planning their purchases using shopping lists, etc. as a means to control their spend. Even though in-store display has reduced in influence, it still accounts for 45 and is the largest influencing factor on sales. This offers an opportunity for retailers to drive sales by tuning into the aspects that are growing in importance for shoppers, like utilising displays to instil messaging surrounding price and planning. For example, meal ideas or recipe plans meal deal promotions (e.g. potatoes plus two vegetables,) link promotions to other categories, etc. 18

What are grocery shoppers spending on fresh produce? On average Irish grocery shoppers claim to be spending 26 per week on fruit, vegetables and potatoes. This is in line with the claimed spend reported in 2006, however with an increase in the number of portions being consumed this would suggest that price is falling at retail level. Fruit and vegetables each account for 10 of the overall spend, with potatoes less so, at just under 6, - this has fallen slightly versus the 2006 figure at over 7. Two in five shoppers spend 10 or more on fruit in an average week, the same proportion for vegetables. Overall spend shows some differences by demographic groups; those with children in the household spend on average 29, whereas households with no children spend 21. Dublin shoppers are also spending slightly higher than the norm at almost 30. Consumers who eat their required 5 or more portions a day also spent more on produce. What formats are they purchasing? When it comes to the format Irish grocery shoppers purchase their fruit and vegetables in, fresh is by far the preferred option. 82 of all the fruit types purchased are fresh, canned fruit accounts for 11 and frozen 7. For vegetables, frozen and canned claim a higher share at 30 but fresh still remains the most purchased. These shares are broadly in line with 2006, however fresh has grown marginally at the expensive of canned. Fruit Vegetables Fresh 7 82 11 Frozen Canned Fresh 70 18 12 Frozen Canned In 2010, a new question was added with respect to potatoes and what formats consumers are purchasing them in. On average consumers purchase two potatoes items in their weekly shop, one of these items being fresh potatoes, but frozen and chilled potatoes account for 44 of the products purchased. 19

34 Frozen Potatoes Fresh 56 10 Canned Frozen potatoes such as chips, waffles and wedges accounted for one in three potato items purchased, with chilled in the minority at only 10, both formats appease consumers need for convenient products. Implications Fresh whole potatoes are a staple in the Irish diet but a significant threat is posed to the Irish growing industry by the increased market share of frozen branded imported potato products. Some consumers perceive convenience issues with fresh potatoes and are therefore turning to frozen products as a substitute. However, if developed further the chilled category could potentially offer the convenience advantages of the frozen segment but the health credentials of fresh. It is also a category that Irish retailers and producers could look to increase share against frozen formats. 20

How many different types do they purchase? The average shopper is purchasing five different types of fruit in their weekly shop and six types of vegetables (these include all types; fresh, frozen and canned). Both of these numbers have increased versus 2006 with fresh formats, the segment showing growth. Irish grocery shoppers appear to be somewhat regimented in the range of fruit and vegetables they purchase in their shop, 83 agreeing with the statement I more or less buy the same range of fruit and vegetables every week for my household. Agree strongly Agree slightly 43 47 30 19 40 32 29 37 More or less buy the same range of fruit and veg each week I buy a broad range of fruit and veg regularly I like to experiment with new fruit and veg item I enjoy browsing the fruit and veg section 79 claim they purchase from a wide range of produce regularly, but a similar proportion agrees that they do purchase a few key vegetables, the same ones each week. For the majority of grocery shoppers (2 in 3) browsing the fruit and vegetable aisle is a pleasurable experience: female shoppers, shoppers from more affluent socio-economic households and those who eat their recommended five proportions per day were more likely to agree with this statement. Just under half of grocery shoppers enjoy experimenting with new types of fruit and vegetables, 19 agreeing strongly with this statement. Grocery shoppers were asked what factors would encourage them to broaden the repertoire of the types of fruit and vegetables they were buying. Unsurprisingly, in the current economic climate price emerged as the biggest factor for both. However, other aspects including availability of Irish produce types and information on new fruit and vegetable types including sampling also featured. 21

Factors to Encourage Increased Variety Purchase of Fruits and Vegetables (Base: All grocery shoppers 66) 48 Cheaper prices Fruit 71 Vegetables 68 Greater availability of Irish varieties 37 36 Awareness of other varieties 35 36 Free sampling in store 30 28 Availability of info on other varieties/ranges/types Recipes using other varieties/ranges/types 24 29 28 26 Implications In the economic downturn price is undoubtedly a hugely important criteria to Irish grocery shoppers. Although price appears to be the clear driver in broadening produce repertoire, education is fundamental in encouraging shoppers to trial different types of produce - given there is a high level of favourability shown towards the fruit and vegetable aisle and as almost half the purchase decision is actually made in store. Therefore the point of purchase is the optimum location to provide information and education on produce. In store sampling and demonstrations of new types/varieties of produce, or new recipe ideas, for either established or niche produce will aid in their inclusion in more shopping baskets. 22

4.4 Fresh Produce: Attitudes to Irish & Organic Produce This section of the report looks at grocery shoppers attitudes to buying Irish produce and organic produce, it also deals with the general public s attitude to Irish produce. What consumers think about Irish produce? Opinions and Attitudes Towards Fresh Produce 54 (Base: All grocery shoppers 66) I would prefer to only buy Irish grown fresh produce I pay no attention to where the fresh produce I buy comes from (7) 7 47 (39) +8 pts I buy produce based on quality and price, regardless of country of origin# 16 (27) 29 (27) 76 I prefer to buy Irish grown fresh produce, but I am prepared to buy imported if it is cheaper () = 2006 # statement slightly altered vs. 2006 Almost half (47) of Irish grocery shoppers prefer to buy only Irish grown fresh produce, this figure up 8 on the 2006 findings. This sentiment is strongest amongst older shoppers (55 years and older) and also those from a farming background. For almost a third of shoppers, they do profess a desire to buy Irish, but price is also an influencing factor for them. Therefore country of origin is an issue to varying degrees, for 76 of Irish grocery shoppers. 23

Environment Health Economy What would make Irish consumers purchase Irish products? Preference for Irish produce is being driven by the current recession; with 84 of consumers saying that Irish fruit and vegetables grown by skilled farmers provide sustainable jobs in the economy would make them more likely to buy Irish products. It appears consumers are keen to support the Irish potato, fruit and vegetable industry particularly as a result of the current challenging economic times as they recognise that the support of their spend can offer to employment within the country. Impact of Messages on Likelihood to Purchase Irish Products 55 (Base: All adults 18+) Irish fruit and vegetables grown by skilled farmers provide sustainable jobs in the economy It is important to have an Irish fruit and vegetable industry to ensure we have security of food here Increase Likelihood to buy 84 82 Irish fruit and vegetables have a higher nutritional content because they take less time to get from the farm to me 77 Irish fruit and vegetables are a more sustainable choice and are better for the environment Irish fruit and vegetables have a lower carbon foot print and are therefore better for the environment Irish fruit and vegetables are better for the environment because of lower food miles 74 72 72 Again, health also emerges as an important concern for consumers: 77 said that the message Irish fruit and vegetables have a higher nutritional content because they take less time to get from the farm to me would make them more likely to buy Irish products. The greater environmental credentials of Irish grown potatoes, fruit and vegetables, also affected consumer s likelihood to buy Irish products compared to imports. Roughly 70 of consumers agreed with various statements on the more positive environmental criteria of Irish grown produce i.e. they are a more sustainable choice, they have a lower carbon footprint and they involve lower food miles. 24

What impact the Bord Bia Quality Mark has on purchase? Consumers were positive towards the Bord Bia Quality Mark, with 65 saying the presence of the mark would increase their likelihood to buy a product. Effect of Bord Bia Quality Assurance Mark on Purchase Decisions 59 (Base: All adults 18+) Higher likelihood Much more likely (5) 31 Older (45 yrs+) 70 65 ABC1F50+ 68 Slightly more likely (4) 34 Eating 5+ a day 68 Makes no difference (3) 30 Little less likely (2) Mean Score: 3.9 2 In general, consumers are quite aware of where their produce comes from, and only 7 of shoppers pay no attention to where their fresh produce comes from. The Bord Bia Quality Mark is an effective way of communicating both the local nature/origin and quality assurance aspects of fresh produce. Implications Consumers are very positive about finding and identifying Irish produce with the Bord Bia Quality Mark. Retailers, produce packers and growers need to capitalise further on this positive sentiment. Consumers respond very well to produce clearly identified as Irish and carrying the Bord Bia Quality Mark. Supermarket aisles and fresh produce shelves throughout the store should highlight that produce in their supermarkets carries the Bord Bia Quality Mark and all produce should be labelled accordingly by growers and packers. This provides consumers with a simple cue to identify Irish grown produce, grown to Bord Bia s quality standards. Bord Bia promotions of their Quality Mark has built consumer trust and awareness across a wide range of products in store. The positive consumer sentiment towards Irish produce is in part driven by consumers desire to support the Irish economy. The contributions of farming and the horticultural food industry to the Irish economy as a whole needs to be continuously highlighted. Growers and packers can further attract the loyalty of some consumers by working with the retailers to highlight the local nature or regional aspect of their farm and produce - bringing an important personal, unique touch to their produce. 25

How frequently Organic Food purchased? Frequency of Buying Organic Food 93 (Base: All adults 18+) Every week 8 Every month Every three months Every six months Less often 12 7 3 17 27 Frequent purchasers of Organic Food (3 monthly +) Females 30 Rest of Leinster 39 Aged 34-44 years 33 ABC1/F50+ 32 Never 52 Those that eat 5+ portions of fruit/vegetables daily 34 In terms of the frequency of purchase of buying organic food, only 27 of consumers claim they have bought organic food in the last three months - the same incidence as three years ago. This shows static growth in the organic market over the last three years, which can be attributed to its higher price in a recessionary environment. Furthermore, a large cohort of people exists who still do not buy into the organic food market. 52 of survey respondents claimed they have never bought organic food. However, consumers who regularly eat five portions of fruit and vegetables a day have a slightly higher purchase rate of organic food: 34 of whom bought organic food in the last three months. 26

Secondary Primary Why consumers purchase organic food? Ranked importance of benefits of Organic Food (Base: All adults who have ever purchased organic food 48) 95 1st 1st 3rd 1st 1st 3rd Healthier for my body 30 62 Is better for my physical appearance 3 9 Does not have added chemicals or pesticides 27 55 Guaranteed to be made in Ireland 2 13 More natural 9 40 Supports the local community 2 10 Tastes better 9 39 Helps me avoid allergies 2 7 Fresher Good for the environment/nature 5 4 14 27 Uses less energy for production Conveys a certain status 1 5 3 Good for animal welfare 3 8 62 of consumers listed healthier for my body as one of the top three reasons for buying organic food, while 55 mentioned does not have added chemicals or pesticides. With consumers becoming increasingly aware of health and environmental issues, these are key strengths of organic food, which may lead to growth in the market over the next few years. 40 of consumers also listed more natural as on the top three benefits of organic foods, while 39 listed that it tastes better. Implications Though growth in the organic food market has been somewhat static over the last three years, organic food has a strong image among customers who have bought it: they see it as healthier, more natural, and better tasting. For those consumers who buy into organic food they have many strong non-price reasons to support their purchase behaviour, in particular its free-from health benefits. Retailers can exploit this positive image by running taste tests in store, to raise awareness and get consumers talking about organic food. At the moment, consumers who regularly eat five portions of fruit and vegetables a day are more likely to purchase organic food. Retailers may be able to target this segment immediately, by offering complementary offers of five portions of organic fruit and vegetables linked to organic food sales. Offering different selections in the deals may encourage consumers to purchase more, as they seek variety in their fruit and vegetable intake. 27

4.5 Perception of Fresh Produce & Alternative Categories Consumers were asked their opinion on the different food categories: fresh vegetables, fresh fruit, fresh potatoes, salads, rice, pasta, and chips/waffles. Attitudes Towards Food Categories Health Benefits & Weight Management (Base: All adults 18+) 1 Fresh Fruit Fresh Veg. Fresh Potatoes Salads Pasta Rice Chips/Waffles/ Wedges Healthy/good for you 85 77 46 58 23 26 2 Good nutritional value 65 69 42 44 20 23 2 Part of a healthy/ Health balanced diet benefits 71 73 43 53 19 21 3 Suitable for those who are weight conscious 56 56 16 65 13 18 1 Weight Management Low in fat Fattening 2 60 3 61 27 21 4 54 12 29 18 15 1 72 Consumer s rate fresh produce, such as vegetables and fruit, significantly higher on health and nutritional factors: 85 consider fruit healthy while 77 consider vegetables healthy. Processed foods perform poorly: only 2 of consumers consider frozen chips healthy, 23 for pasta. This is a real strength for fresh produce as consumers continue to become more aware of health issues. As more consumers become more conscious of all the foods in their diet, this can help drive increased consumption of fresh produce. Fresh potatoes were perceived to be the healthiest and most nutritional of the main carbohydrates, in a direct comparison with pasta and rice. However, there continues to persist the misconception that potatoes contain the highest fat levels (and are therefore fattening) of the three main carbohydrates when then have in fact the least fat content. This major misconception needs to be addressed by the industry. 28

Attitudes Towards Food Categories Preparation & Cooking (Base: All adults 18+) 2 Preparation & Cooking Quick and easy to prepare Fresh Fruit 49 Fresh Veg. 46 Fresh Potatoes 33 Salads 41 Pasta Rice Chips/Waffles/ Wedges 35 30 18 Convenient 50 44 36 31 29 27 18 Versatile 15 41 56 17 32 26 4 Good for imaginative/ adventurous cooking 16 36 37 23 36 31 5 Takes too much time and effort to prepare/cook 4 19 19 8 7 8 9 Ideal for quick meals/snacks for younger children 34 15 11 17 36 21 33 When considering preparation and cooking, 56 of consumers consider fresh potatoes to be the most versatile food. Potatoes were also considered good for imaginative cooking, along with pasta and rice. Conversely, only 15 of consumers consider fresh fruit to be versatile, while only 16 consider it good for adventurous cooking. This suggests that consumers are primarily eating fruit raw and not incorporating it to any great degree into their cooking or baking. Historically, baked fruit was a key component of the family meal, but increasingly it has been replaced in desserts by bakery and dairy items e.g. cakes, biscuits and yogurts. Pasta and frozen chips are considered the best choice for a quick meal for children, with potatoes and vegetables not contesting strongly on this point. Though health factors are important for consumers today, it appears convenience can plays a huge role when preparing meals for children. Parents can readily justify choosing the higher nutritional worth of potatoes and vegetables in a trade off for speed of preparation and convenience. 29

Attitudes Towards Food Categories Price, Consumption & Trends (Base: All adults 18+) 3 Price Good value for money Fresh Fruit 40 Fresh Veg. 46 Fresh Potatoes 44 Salads 23 Pasta Rice Chips/Waffles/ Wedges 27 24 7 Expensive 25 22 15 21 10 8 23 Good promotions/ special offers 31 37 24 14 14 11 7 Safe to eat Consumption 67 68 59 52 38 38 19 Tasty/delicious 51 45 43 29 24 20 19 Trends Becoming more popular Fashionable/a new trend Popular amongst teens/young adults 27 13 15 24 13 9 17 12 8 25 22 11 37 47 51 29 29 29 12 12 49 44 of consumers consider potatoes to be the best value for money, while frozen chips and waffles are considered the most expensive. Indeed, consumers correctly appreciate that fresh foods are better value for money, and that they must pay a premium for processed and prepared foods such as frozen chips and salads. They clearly understand that convenience costs money. Fresh produce is seen as very traditional and not very exciting: it greatly underperforms on trendy and popularity factors. Consumers consider pasta and rice (and salads to a lesser, but significant degree) to be trendy and fashionable. Indeed, this finding is backed up by the purchasing figures, which shows a large increase in the consumption of pasta and rice over the last three years. The huge popularity of frozen potato products (chips/waffles) amongst teens/young adults was also established in our findings 30

2010 2006 The best taste The most calories The healthiest The highest in fat Most expensive Is the most convenient Highest Association Facts: (per 100g cooked weight) Perceptions Regarding Potato s Health Credentials Versus Pasta & Rice s N/A N/A (Base: All adults 18+) Potatoes Rice Pasta 69 13 11 66 11 16 28 24 45 45 46 41 38 52 15 14 18 25 Fat (g) 0.1 1.3 0.5 Calories (kcal) 72 138 86 N/A N/A 23 28 40 37 7 pts N/A N/A 11 19 17 29 36 39-8 pts 47 48 98 With regards to the specific health credentials of the main carbohydrates, 69 of consumers agree that potatoes are the best tasting, compared to only 13 for rice and 11 for pasta. Despite rice having the most calories, only 15 of consumers recognised this: 36 believed pasta has the most calories while, 45 believe potatoes have the most calories despite them having the least. Despite being considered the carbohydrate with the most calories, 46 of consumers consider potatoes the healthiest carbohydrate, up 5 on three years ago. This compares to 40 for rice and only 11 for pasta. Furthermore, all carbohydrates perform poorly on weight management factors. Potatoes in themselves are not considered highest in fat by consumers (pasta been perceived as higher). In fact, rice has the highest calories and the highest fat content but is perceived by consumers to be lowest in both calories and fat. Overall potatoes are considered the healthy carbohydrate (46), but are challenged on this front by rice - helped by misconceptions surrounding rice s health credentials (40). 31

Perception of food categories Implications Although consumers perceive fruit as less popular and trendy, the consumption figures do not reflect these perceptions. Despite the current economic difficulties, claimed spend on fruit has risen 9 over the last three years, from 9.27 to 10.10 per week. Consumers have a real appetite for buying fruit: both growers and retailers can capitalise on this interest by offering new or exotic fruit varieties to consumers. Indeed, taste is a key reason why consumers enjoy fruit. New flavours and varieties are likely to appeal to them, further increasing the average spend on fruit. Fruit is also mainly being eaten raw, so there is potential to drive sales further by informing consumers on how fruit can be incorporated into cooking and baking. Fruit needs to be promoted to reclaim the dessert eating occasion at family meals. There is also potential for retailers to offer dessert/snack deals centred on fruit, e.g. strawberries and cream, or apples and pastry, this can help encourage consumers to use fruit in novel ways. It can also be pointed out to consumers that this is an avenue to help them increase their portions of fruit per day to reach the 5-a-day target. Though 41 of consumers see fresh vegetables as it being versatile, only 15 consider vegetables to be good as a snack or for a quick meal for young children; it may have a great health impact in years to come, as parents exclude vegetables from quick meals and many children grow up without vegetables as part of their regular diet. It is critical to address this potential problem now. It is important to work with schools to educate both children and their parents in the benefits of eating fresh vegetables. Providing simple, tasty recipes and broader nutritional educational material can encourage parents to incorporate vegetables into their children s meals. Children may also become more interested in vegetables if they are encouraged to grow their own either at home or in their school. Consumers perception of potatoes is mixed. Though potatoes are considered to be the healthiest carbohydrate, consumers also believe they have the most calories. Furthermore, consumers consider rice to have the lowest calorie and fat content, when in fact it has the highest. These are key misconceptions which may cause negative feelings by consumers in relation to their opinion of potatoes. 32