Tesco introduces local food and drink
August 26, 2008
The supermarket giant Tesco are set to generate £500 million from the sale of locally produced food and drink this year as regional products are in high demand with the British public.
Sales of locally sourced products have risen by 40%, goods such as breads, meat, apples and rape seed oil. The rise has been from this year alone as customers turn their backs on expensive big brands.
Last year Tesco launched its local sourcing initiative and at the moment it stocks 3,000 regional products lines around Britain.
The commercial director for Tesco, Willie Hamilton said “We set ourselves very stretching targets to get to £1 billion in sales of local products by 2011. People are cash-strapped but our numbers are bang on target. Some 84 per cent of our customers are saying that they would like to buy local lines. It’s a fantastic opportunity and that’s why we’re investing so much.”
One company based in Wolverhampton could supply Tesco with a million packets of pork scratchings after they sold out in stores across the midlands in a few weeks. Also a baker from Forres in Scotland supplies four stores with local favourites’ such as softies and butteries, and a farmer on the Isle of Wight sells 1,250 eggs a week, after he walked into his local Tesco and asked them if they wanted “a few”.
The success of Tesco’s locally sourced goods reflects a country-wide boom. An estimate by the Institute of Grocery Distributers (IGD) said the market has grown 15% to £4.3 billion in the past 3 years and it could be worth £5.7 billion by 2012.
Other supermarkets are also jumping on the local produce band wagon. Sainsburys have introduced their Supply Something New campaign with Food from Britain.
The IGD’s senior consumer analyst, Michael Freedman said that most people who buy locally sourced goods believe it to be fresher, supported by local communities and helps the environment by cutting food miles.
He also said that demand for local produce was highest in the South West, East Anglia and Scotland. However, he added two thirds of customers in London claimed they were keen to buy more regional produce.
Joanne Denney-Finch, the chief executive of the IGD, said “The economy is affecting most people’s food choices, but not just in a simple and obvious way. In these tough conditions, many people are keener than ever to support nearby jobs through their spending choices.”
She added “Others are reducing their travel costs by making greater use of shops in the vicinity. Both of these factors favour local food.”
For more information on products from Tesco visit www.tesco.com.
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