Publications
Mar 23, 2016

Customers' desire for health and wellbeing drives supermarket’s organic offer


Needs relating to health, wellbeing, lifestyle, personal interests and how Kiwis want to be perceived by others are driving consumer demand for organics, says Market Report Gold sponsor, Foodstuffs.

Category: General
Posted by: oanz

It’s a tongue-twister of a word but “premiumisation” – consumer demand for basic foods with added value – perfectly encapsulates Foodstuffs’ growing investment in organics.

“Organics is about consumers wanting to ensure chemicals are not in the essential products they buy each day,” explains Foodstuffs New Zealand Ltd’s Group General Manager Marketing, Steve Bayliss.

 “We are seeing clear needs emerging,” says Bayliss. “Needs that directly relate to health and wellbeing, lifestyle, personal interests, and how Kiwis like to be perceived by their friends and family.”New World shoppers

 Foodstuffs’ research has found that among consumers who highly value organic products are individuals who like to exert “control” over their diet. This control may be borne out of a desire to consume products with a known provenance, and that are chemical-free, but also in many cases health issues such as gluten and dairy intolerances drive the customers’ need to control the type of food that is being consumed. Others place value on “wellbeing”, which means the food they consume must be better for their body as well as the environment, while some customers see the decision to buy organic simply as the “sophisticated” choice.

 Key factors driving the buying choices of these often interrelated groups include greater health consciousness, ever-increasing environmental awareness, and a basic human desire to trust the food they're eating and know what went into it before it reached the supermarket shelves.

 Bayliss says Foodstuffs is committed to providing customers with choice, and although demand for organics varies from store to store, the flexibility of the owner-operator model and the co-operative’s ability to source locally means the group is well-placed to deliver a wide range of organic options to its New World and PAK’nSAVE customers.

 “Our owner-operators are predominately local guys and girls who speak daily with their customers to learn about what they want. Our buyers work hard to identify good quality products across fresh and grocery to meet these needs.”

 Up till the last couple of years organic growth was steady, however, we are now seeing significant growth in this area. For example Upper North Island PAK’nSAVE stores are reporting sales growth in grocery of 24%.