>>producers need to work harder to build desirable local brands

The release in the autumn of a study of the views of 46 senior marketing directors in the food and drink industry will yet again raise the issue of local sourcing.

The study shows what both large and small suppliers in the south west believe to be the most significant trends in how the UK will eat and drink in the next three years. Local versus national has been identified as one of the most important trends.

Nearly half these marketers believe consumers will demand to know more about the products they buy in the future, while a quarter think sourcing locally creates a grassroots emotion that consumers enjoy.

The concept of local sourcing has certainly taken off in the past year, not least because it is politically expedient for supermarkets to show they care about UK farmers and small food producers. Tesco now has more than 7,000 locally sourced lines and makes £975m from local and regional food in Northern Ireland, Scotland and Wales alone, while Waitrose is going a step further with its planned store in Cornwall to showcase local produce.

Now House of Fraser has become the latest retailer to identify speciality food retailing as a growth area. This week The Grocer exclusively reveals its plans to build up to 15 food halls selling premium products primarily sourced from local suppliers (page 6).

But, as our Focus On feature in next week’s issue will show, there are still big challenges facing local suppliers trying to build business with larger retailers. And not all the blame can be laid at the feet of the supermarkets. Producers need to work harder to understand their distribution systems and to build desirable brands.

Retailers like Waitrose and Booths stand out in their commitment to local producers. They are flexible over distribution and price. But if the trend identified by the south west suppliers is truly to become reality, both supermarkets and producers need to do more.

Supermarkets are enormously influential when it comes to what ends up in our fridges and cupboards. They respond to the consumer, for whom price and availability are still key issues. Only when supermarkets and local producers really understand each other will they be able to deliver on these two key issues - and in doing so help drive consumer demand for local products.
local needs more work