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1 FO0438 [FFG 1104] - YBR0876E REVIEW OF FACTORS AFFECTING FRUIT AND VEGETABLE DEMAND Terry, L. A.*, Medina, A., Foukaraki, S. and Whitehead, P. (2013)

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FO0438 [FFG 1104] - YBR0876EREVIEW OF FACTORS AFFECTING FRUIT AND VEGETABLE DEMAND

Terry, L. A.*, Medina, A., Foukaraki, S. and Whitehead, P. (2013)

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This report is submitted by Cranfield University to Defra

YBR0876E_FO0438 [FFG 1104] final version

Project manager

Prof. Leon A. Terry

Plant Science Laboratory, Cranfield University

Signature: .........................

31st May, 2013

Approved

Martin Ellis

Head of Finance

Cranfield Health

Signature:

..........................

31st May, 2013

*Corresponding and senior author:Prof. Leon A. Terry BSc (Hons) ARCS MSc PhDProfessor of Plant SciencesHead of Plant Science LaboratoryHead of the Cranfield Soil and AgriFood InstituteVincent Building, Cranfield UniversityBedfordshire, MK43 0AL, UKTel.: 07500 766490Email: [email protected]

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Executive summary and recommendations

The review set out to better understand the drivers that affect fruit and vegetable demand through structured

interviews with UK retailers, wholesalers, suppliers and others, and used data supplied by Kantar on estimated

UK expenditure and volume at retail for ten selected fruit and vegetables between 2003 and 2011 for the three

recognised quality tiers (premium, standard and value) to look at trends in purchasing behaviour. The research

revealed that data from Family Food used by Defra and others does not fully match data provided by Kantar;

the latter being principally used by industry.

Through structured questionnaires, retailers ranked price, promotion and availability as the three most important

drivers of fruit and vegetable demand in the market, respectively. However, the research has shown that the

demand drivers for individual fruit and vegetable are very different and produce specific. Results from the

current research have shown that some suppliers feared that promotions are being overused in the current

climate such that consumers are suffering from ‘promotion fatigue’ and are confused over the basis of some

such offers. Some feared that the overuse of promotions (e.g. up to 50 - 80% for some categories now sold) is

destroying the price structure of the whole fresh produce category and actually making promotions less

effective. It was also believed that multi-buys promotions and changing pack sizes across a range of categories

may be confusing consumers. It is now unclear whether consumers understand promotions and indeed the true

price of different fruit and vegetable lines as they have little to properly benchmark prices against. This

problem represents a real risk and one which should be addressed in future research.

In general, no retailers supported an even lower quality tier than that which already exists in the industry and

suggested that it would devalue the category. This is despite the universally agreed belief that the introduction

of the lower tier in 2008 was recognised as being a success for most fruit and vegetable lines in terms of crop

utilisation, reducing waste and sales. Most of the suppliers interviewed in this study also refuted that there was

any prospect of successfully introducing a lower quality tier. These views represent a real barrier to introducing

a lower quality tier than that which already exists for both home-grown and imported fresh produce and that

markets which are too price sensitive risk not being fully focussed on delivering value such that the continuity

in supply may suffer irreparably.

Additional Kantar data was used to investigate the impact of employment status, region, age, gender and social

economic grouping on purchasing behaviour of apple, potato and strawberry and showed unexpected results for

factors which might have been assumed to influence fruit and vegetable demand. Overall data provided

evidence that employment status has a significant effect on fruit and vegetable purchasing yet those working

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‘Under 8 hrs’, ‘Unemployed’ or in ‘Full time Education’ purchased significantly lower amounts of standard and

value lines compared to those in full time employment or retired groups. Indeed, the purchasing of lower tier

fruit and vegetables tended to not be as influenced by socioeconomic grouping as expected and indicates that

increasing availability of lower quality fresh produce may not affect purchasing behaviour or consumption for

vulnerable groups. Generally, region had a minimal effect on purchasing behaviour across quality tiers whilst

those on the extremities of age groupings (‘80 and over’ and ‘under 30’ age groups) tended to purchase less

fruit and vegetables in the lower quality tiers. Overall the percentage of standard products purchased was

always the greatest.

Respondents in this research were asked whether the recent change to the EU marketing Standards for Fresh

Horticultural Produce Regulation (543/2011) which allowed for a lower quality standard for home processing of

fruit and vegetables have impacted their approach to quality. Most respondents stated that the changes have had

no effect and if anything that it would be best to flex the current low tier. There may however be opportunities

for better crop utilisation through the home processing derogation.

The present research has established that the fresh produce industry generally believes that the 5 A DAY

message has had little to no impact alone on fruit and vegetable demand and that in store promotions and use of

celebrity chefs in campaigns has had more of an effect on encouraging increased consumption in some market

segments.

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Recommendations for future research:

1. Reconcile the overall markets trends shown by the different data sources (e.g. Family Food versus

Kantar).

2. Conduct further analysis to understand how temporal fluxes in volume and spend of specific fresh

produce types reflect changes in consumer attitudes or preference and whether they are related to

availability, seasonality and product differentiation (quality tiers).

3. To complement data on purchasing behaviour additional consumer research should be conducted on

establishing the intrinsic quality, perception and preferences with reference to different segmentation

(especially ethnicity/food culture, age, gender and socio-economic grouping) for individual fruit and

vegetable species.

4. Review the workings of the EU Regulations with a view to simplification.

5. Review the impact, mechanics and sustainability of promotions from both an industry and consumer

perspective.

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Table of Contents

Executive summary and recommendations 3Recommendations for future research 5Acknowledgements 81. Aim and objectives 92. Approach and scope 10

2.1 Questionnaire design 102.2 Kantar Data and analysis 102.3 Limitations of the research 112.4 Confidentiality 12

3. Markets for fruit and vegetables 133.1 Introduction 133.2 Retail channels 133.3 Retail quality tiers 133.4 Foodservice channels 143.5 Foodservice quality tiers 153.6 Supply chains 15

4. Supply and quality specifications 174.1 Introduction 174.2 Retail specifications 18

4.2.1 Strawberry 19

4.2.2 Apple 214.2.3 Lettuce 224.2.4 Potato 22

4.3 Wholesaler specifications 225. Purchasing trends 23

5.1 Introduction 235.2 Retail 235.3 Trends in quality 265.4 Foodservice 31

6. Drivers and determinants of demand for fresh produce 336.1 Introduction 336.2 Commercial approaches 33

6.2.1 Example of consumer analysis – potato demand drivers 346.3 Analytical approaches 366.4 Discussion of key drivers of fruit and vegetable demand 36

6.4.1 Price 376.4.2 Impact of household incomes on purchasing of quality tiers 386.4.3 Impact of employment status and socioeconomic grouping (SEG) on

purchasing of quality tiers[potato, apple and strawberry] 40

1.2.3.4.5.6.

6.46.4.4 Impact of region on purchasing of quality tiers [potato, apple and strawberry] 416.4.5 Impact of age, gender and ethnicity on purchasing of quality tiers

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[potato, apple and strawberry] 416.4.6 Promotions 436.4.7 Seasonality 46

7. Prospects for a lower quality tier 487.1 Retailers 477.2 Suppliers 497.3 Wholesalers 507.4 Consumers 51

8. Other considerations 528.1 Regulation and EU marketing standards for fresh produce 528.2 Five-A-Day targets and influence of media 548.3 Fruit and vegetable waste 56

9. Recommendations for further research 57References 58Appendices 59Annex 1-12 63Notes 96

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Acknowledgements

The authors wish to firstly thank Defra for funding this research and the IGD for assisting Cranfield University (CU) with data collection. The Fresh Produce Consortium is thanked for their support in arranging the on-line survey and publicising this project. The authors are also grateful for those individuals and organisations who so willingly participated in the structured interviews and the on line survey.

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1. Aim and objectives

This review was commissioned by Defra in late 2011 to understand the drivers of fruit and vegetable

consumption (including potatoes); specifically how factors like price, packaging, taste, appearance and

marketing for example affect demand. The review also examined how these factors interact with income levels

and other socio-economic variables. The review is confined to the UK market, but clearly takes account of the

influence of fruit and vegetable imports. The review was first submitted in May 2012 and then additional data

included in January 2013,May 2013 and October 2013.

A further aim of the review was to investigate demand for different quality requirements, more specifically:

i. Whether there are UK markets for a variety of different quality tiers for fruit and vegetables and how

these compare in terms of value for money, accessibility for those on lower incomes, throughput and

opportunities for growers

ii. What are the key drivers and barriers affecting the demand for different quality requirements of fruit and

vegetables e.g. price, packaging, presentation, appearance, reason for purchase such as to eat fresh

immediately, to keep ‘till ripe, to use in cooking, demographics, seasonality, logistics, retailers and

farming practices?

iii. The impacts of consumers having increased access to lower quality fruit and vegetables

iv. Whether the revised EU marketing standards for fruit and vegetables has had any impact on the

availability of lower quality produce

In addition the review also considered:

v. Potential impacts of changes in availability of fruit and vegetables with different quality standards on

consumption and 5-a-day targets

vi. Whether the same constraints apply to home produced and imported fruit and vegetables, for example

local and in-season produce

vii. The impact and potential barriers in the supply chain

viii. Impacts on wholesale and processing industries and alternative waste streams i.e. animal feed

ix. Socio-economic barriers including consumer education and affordability

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2. Approach and scope

2.1 Questionnaire design

In addition to published data streams (e.g. Family Food 2009) a series of structured interview questionnaires

(agreed by Defra) were conducted with leading members (e.g. Technical Director level) of the UK fresh

produce industry including many of the leading retailers (n = 5), wholesalers (n = 3), fresh produce suppliers (n

= 11) and other interest groups (e.g. charities, government agencies; n = 4). A different questionnaire design

was used for retailers, wholesalers (Appendix I) and the rest (including suppliers; Appendix II). Only fresh

produce suppliers who specialised in one of the following ten (10) produce types viz. apples, bananas,

strawberries, grapes, onions, potatoes [fresh not processed], tomatoes, cabbage, lettuce, and carrots were

approached. This selection was based on the importance in sales and whether the product(s) has seen

substantive change in consumption since 2003 according to Family Food 2009. Interviews started in October

2011 and were completed in January 2012. Interviews were conducted by at least two members of the

consortium including at least one or both Prof. Leon A. Terry of Cranfield University or Dr Peter Whitehead of

the IGD. Interviews lasted for one hour or longer and were conducted either face-to-face or over the telephone.

Detailed notes were taken from each interview, yet the anonymity of each individual and the organisation which

they represented was assured.

In addition, an online copy of the supplier questionnaire was posted on line by The Fresh Produce Consortium

and competed by additional suppliers (n = 52) and was publicised in the Fresh Produce Journal on 4th November

2011. In summary, a total of 75 respondents either took part in the questionnaires or completed the online

survey.

2.2 Kantar Data and analysis

Weekly, monthly and yearly data were supplied by Kantar (through Defra) on the estimated UK expenditure

and volume at retail purchased from January 2003 to Sept 2011 for the following ten (10) produce types were

includes viz. apples, bananas, strawberries, grapes, onions, potatoes, tomatoes, cabbage, lettuce, and carrots.

Data were further split each into the three quality tiers (premium, standard and value) since quality is not

covered in Family Food or other UK Government surveys. An additional 2011 data set, also supplied by Kantar,

was used to evaluate volume purchased of specific fresh produce [apple, potato and strawberry] according to

employment, social economic grouping, region, gender and age.

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For comparisons across age, region, employment status and socio economic grouping three independent

variables for each product were created. Each of these was used to find out the proportion of ‘value’, ‘standard’

or ‘premium’ product purchased, as a percentage, out of the total product purchased for each household. Each

household was then assigned the result of the independent variable for each quality tier and the socioeconomic

dependant variables (e.g. age range, employment status and socio-economic grouping). For each dependent

variable, the results were averaged across all samples and histograms produced showing the percentage of

product purchased out of the total annual purchases to observe trends. For apples, 2887 households provided the

necessary data and were considered. For potatoes and strawberries 3072 and 2688 were considered,

respectively. In order to study differences among the dependant variable levels, and due to the nature of the data

sets (non-parametric), several transformations were assessed in order to improve normality and

homoscedasticity with no success. Finally, 1-way non-parametric ANOVA using ranks was performed

(Kruskal-Wallis) in order to identify statistical significant differences between different levels of the

socioeconomic variables. Non parametric each pair comparison using the Wilcoxon method was performed

when differences were found and tables with the correspondent p-values are shown in Annexes 7-9 and 11. In

all cases comparisons were considered significant when at p<0.05. Analyses were performed using JMP 9 (SAS

Institute) and SPSS v.20 (IBM Corporation) statistical packages.

When comparing between sexes two levels were available (Annex 10). Moreover the number of cases for each

level was unbalanced as much more shopping was carried out by females compared to males. For this reason

and to understand their shopping behaviour with regard to each of the quality tiers the total percentage of

purchases was compared in each quality tier for each sex. Comparisons have been made taking the standard

tiers as reference.

To study the total amount of each product purchased per person (as a mean) in households, the total volume of

product purchased was used, and divided by the number of people in the household. All households that did not

buy a certain product were removed. Each dataset was averaged for each of the dependent variable levels (age,

socioeconomic grouping or employment status). The standard error of the mean was computed and plotted.

Statistical analysis was performed using non-parametric ANOVA as described before. Non-parametric each pair

comparisons using the Wilcoxon method p-value tables are shown in Annex 12.

2.3 Limitations of the research

Although most of the major retailers took part in the questionnaire, there was understandably a divergence in

the openness of some with regards to providing detailed information which they deemed to be too commercially

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sensitive in nature. In addition, the survey set out to collect data from suppliers who specialised in one of the ten

(10) produce types. However, and even though a wide selection of suppliers were contacted and invited to take

part, certain produce types were over-represented as compared to others, reflecting the different willingness of

participants viz. potatoes, apples, strawberries, onions and lettuce suppliers were over represented. No

information was collected from grapes, cabbage or banana suppliers.

The Kantar data on expenditure were not corrected for inflation or population changes.

No consumer research was conducted as part of this work and thus views from retailers, suppliers and other

members of the industry predominate. Data from Kantar and the Food and Expenditure Survey on purchasing

behaviour of different socioeconomic groups, age, gender and region was considered.

2.4 Confidentiality

The identity of interviewees and participants in the on line survey are to remain confidential. Data on identity

of interviewees will be securely held by Cranfield University for a period of two years where upon the

transcripts will be destroyed. The information is thus not available to other parties.

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3. Markets for fruit and vegetables

3.1 Introduction

Households will choose fresh fruit, vegetables and potatoes in varying quantities for both in and out of home

consumption. In and out of home consumption are distinct markets; in the former, demand is generally direct as

individuals chose fruit and vegetables, whereas in the eating out market demand is indirect because individuals

chose meals in which fruits and vegetables may be components.

In the out of home market and indeed for the increasing ‘ready meal’ market it is not possible to establish with

any ease the purchasing trends for fresh fruit and vegetables. Because the demand for fresh fruit and vegetables

out of home is indirect it is also not possible to identify the main drivers of demand because these will relate to

the whole meal, not its components.

3.2 Retail channels

Products purchased for in-home consumption are generally bought from retailers (a minor quantity is home-

grown). IGD estimate there are 91,509 grocery stores in the UK of which the majority (53%) are convenience

stores. Around 78% of fruit and vegetable purchases come from supermarkets (including hypermarkets and

superstores). The five major multiple retailers: Tesco, Asda, Sainsbury’s, Morrisons and the Co-Op dominate

with over 82% of the ‘major’ retailer market. Other major retailers include Marks & Spencer and Waitrose who

are often considered ‘Premium’ retailers and Aldi and Lidl who are termed ‘Discounters’.

Convenience stores, with sales areas of less than 3000 sq ft also provide fruit and vegetables though these

products account for less than 6% of sales. It is possible to divide the convenience sector into those owned by

the multiple retailers, symbol groups, forecourts and independents. Beyond these it is possible to recognise

traditional retailers (including green grocers), ethnic markets, on-line sales, Farm Shops and Farmers’ Markets.

Together these account for a minor source of fruit and vegetable retail purchases

3.3 Retail quality tiers

There is no uniform approach to quality in the retail market (cf. Annex 1 for more detailed analysis of the term

‘quality’). Instead, each of the multiple retailers has developed a ‘quality position’ in terms of the products they

sell as well as the shopping experience they provide. The retailers will use their ‘quality position’ to

differentiate themselves from each other, to attract particular types of customer to their stores and to develop

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specifications for their suppliers. These specifications are particularly important for the retailers ‘own label’

ranges including the majority of fruit and vegetables1.

The five major multiple retailers have developed three quality tiers for their fruit and vegetables. These have

various names depending on the retailer (cf. Annex 1) but can be broadly categorised as follows: Premium,

Standard and Basic/Value. These three tiers provide a basis for understanding fruit and vegetable quality across

large parts of the retail market but cannot be applied in every case. It is important to note that some retailers do

not recognise three quality tiers, for example Marks & Spencer and Aldi have just one offer; in this case

positioned at different ends of the quality spectrum.

Even in the retailers that recognise three quality tiers it does not follow that all fruit and vegetables are offered

at every quality level, for example typically bananas are just offered as a standard or value range whereas apples

are commonly sold at all three levels. Indeed, some products may be offered in the Premium tier for only

certain periods because they depend on a particular cultivar (variety) being available in the season.

Some fruit and vegetables have additional branding like Organic or Fair Trade or carry a carbon label or some

other differentiator for example ‘Red Tractor’. These types of branding are not generally used as a quality

attribute, that is the presence or absence of one or another mark does not lead the retailer to automatically assign

that product to a particular quality tier. In other words these attributes have only a secondary influence on the

retailers’ quality positioning for fruit and vegetables.

In the convenience sector (and through internet delivery) the three tier approach to quality is not widely applied

outside of those stores owned by the multiple retailers. All of the major multiples have developed a

convenience offer (or are in the process of doing so) for example Tesco Express/Metro in which they provide

products in each of the three tiers. However, significant differences arise in terms of the ranges and pack-sizes

that are provided. Loose products typically are not sold in these convenience stores. In other parts of the

convenience sector and the remaining retailers, there is little evidence that quality is differentiated in the same

way. Generally, these retailers will rely on the shopping experience or indications that the product is grown

locally, for example, as apparent claims for quality.

3.4 Foodservice channels

Fruit and vegetables eaten out of the home are consumed in a wide range of foodservice outlets but mostly as

part of a meal (and more typically in processed form). The foodservice market is more fragmented than the

retail market with some 259,054 outlets compared to 91,509 grocery stores2. It is usual to break down the 14

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foodservice market into the private and public sector. The private sector is further subdivided into restaurants,

Quick Service Restaurants (QSR), Public houses, Hotels, Leisure and Staff Catering while the public sector is

further divided into Health care, Education and Services3. QSR have 26% of all foodservice sales and thereby

are the largest single sector recognised by Horizons. Pubs and Hotels have broadly similar numbers of outlets

(around 45,000 each) but together their market share is only slightly higher than that for QSR. The public sector

has around 26% of all outlets. ‘Take-aways’, where products are purchased from foodservice outlets but eaten

in the home or car are not major sources of fresh fruit, vegetables.

3.5 Foodservice quality tiers

Fruit and vegetables are typically eaten as components of a meal and in processed form. This means that

foodservice operators have more tolerance over the specifications they require, especially for products which

are peeled and where visual appearance has no impact on eating quality. But the nature of this market for

example in terms of consistency and uniformity in relation to menu requirements that can be fixed for periods of

time does lead to specific preferences in respect of size and continuity of supply. However, the three tier

approach to quality that applies in retail is not used in the foodservice market. Instead quality in foodservice is

largely determined by ‘brand positioning’. Brand positioning will include a range of factors including service

levels, outlet type and meal pricing policy.

3.6 Supply chains

The large multiple retailers source the majority of fresh fruit and vegetables (including potatoes) direct from

suppliers. The concentration of fruit and vegetable suppliers has increased over recent years as supermarkets

have endeavoured to vertically integrate their supply chains and reduce cost. There is an increasing trend for

‘direct sourcing’ by some UK retailers where they will procure fresh produce directly from overseas growers

with a view to by-passing UK importers.

There are about 1,200 commercial horticulture growers and about 2,300 potato growers in the UK. These are

generally organised into larger packing/marketing businesses that specialise in particular product types of which

Fresca, G’s Fresh and Produce World are amongst the largest. Some of these businesses own land outside the

UK in order to better provide customers with an all year round supply.

Independent retailers and the majority of foodservice outlets will source their fruit and vegetables from

wholesalers. According to National Association of British Marketing Authorities (NABMA) there are 26

wholesale markets in the UK including a number of specialist fruit and vegetable wholesalers viz. New Covent

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Garden and New Spitalfields in London. New Spitalfields for example is an important supplier for independent

retailers and a large proportionate of customers are Chinese, Turkish, Asian or other ethnic minorities groups

buying fruit and vegetables for their particular shops and restaurants. In addition there are wholesalers that

supply all types of grocery products and which can be generally split into ‘cash and carry’4 and ‘delivered

wholesale’. Booker is the largest cash and carry wholesaler, others include Bestway, Makro and Costco. Brakes

and 3663 are key delivered foodservice wholesalers while P & H McLane, for example concentrate on

delivering to retailers.

Foodservice chains such as Pret a Manger, Ask, Eat, McDonald’s, and KFC have generally adopted similar

procurement practices to those used by the multiple retailers (centralised buying and distribution). However,

these chains typically work with large, delivered wholesalers to manage their raw material needs.

Many Institutional foodservice suppliers such as schools, prisons, hospitals and aged care facilities have also

by-passed the wholesale markets and focus on delivered wholesalers to provide their raw material requirements.

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4. Supply and quality specifications

4.1. Introduction

In the fresh produce industry, there are few truly dedicated supply chains; instead the major growers/suppliers

tend to have multiple customers. The advantage of this approach is that it ensures the crop is better utilised.

Typically the way this works is that suppliers have multiple primary customers among the major retailers (and

in some cases foodservice operators). Specific crops and varieties will be grown for a specific primary customer

according to pre-determined planting programmes which are where possible agreed ahead of the season and are

informed by historic data on consumption and other market intelligence. For products where demand is

predictable and is less affected by weather or where extended storage can better ensure extended availability

(e.g. apples, onions and potatoes) these procurement programmes tend to work well. For products where

demand is more volatile then there is an increase risk that procurement programmes fail. Growers reported that

they will usually over programme to ensure that product can always be supplied in full and this may have an

influence on crop utilisation and waste (Terry et al., 2011). One supplier stated that “excess volume is in [their]

commercial interest and that [they] must fulfil orders or risk losing business”. There was a recognition that

over programming can result in increased waste. N.B. that retailer/ supplier comments are anonymous and in italics

Procurement programmes are influenced by planned promotional activity. For strawberries, retailers determine

promotional campaigns and these plans are discussed with suppliers, yet they are based on key dates, e.g. events

in the social calendar viz. Wimbledon and predictable crop flushes and are aimed to maximise crop utilisation.

As the season progresses and crops near maturity allocations can be made between quality tiers and customers.

For example, if a crop grown for the Premium tier fails to meet the desired specification then it may be switched

to the Standard or even Value tier. However, this practise can undermine the differentiation between the quality

tier offerings if noticed or understood by consumers. When a crop does not meet a specification and where there

are limited alternatives for downgrading or alternative sourcing then specifications can be relaxed. One supplier

stated that “the difference between tiers is largely subjective and will vary from time to time” and “variety, sizes

and pack formats can determine tiers”. “[the industry] will shift crop around between tiers depending on

shortage/surplus position” and “specifications will differ by tier but can be fairly flexible depending on volumes

available” and “fruit ‘tiering’ is more resilient as based on variety whereas vegetables and salads are more

difficult to tier though some lend themselves better – asparagus [for example has] no tier[ing]”. One retailer

commented that “lower tier lines are often out-grades from standard lines because of size”.

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Although specifications are regarded by all retailers as key to defining and differentiating apparent product

quality and are stringently adhered to, there is still some degree of plasticity when availability is stretched (i.e.

as seen in 2011 and 2012 as a result of the poor weather conditions). The advantage of the three tier system

allows for some degree of product differentiation. If the crop does not meet the specification of any primary

customer then it is usually switched to processing or wholesale markets (though increasingly both these

‘secondary’ markets also require products grown to a specification). An example is very large carrots that are

‘out-graded’ from retail but are very suitable for the wholesale/foodservice markets.

It is inevitable that there will be product that does not meet any market specification. The amounts will vary

product by product and season by season (Terry et al., 2011). These products will suffer quality defects

including disease that may make them unsuitable for the human consumption market. These products will be

variously used for animal feed, as feedstock for anaerobic digester (AD) plants and as soil amendments to land.

It is clear from the research that no successful grower intentionally grows lower grade products as the returns

are much less and they will endeavour to utilise crop where there is an economic gain in doing so.

4.2. Retail specifications

Underpinning each of quality tier is a specification which is usually much more detailed than the EU marketing

standards (cf. section 8.1). These specifications are commercially sensitive and retailers have mostly refused to

provide copies for this research. Inevitably, there is often some degree of commonality between specifications

used by many retailers, especially when considering a specific product in a single quality tier. Indeed, many of

the suppliers interviewed supply more than one retailer and the differentiation between specifications is less

than might be assumed. In the main, interviewees reported that specifications are fundamentally based on visual

appearance (e.g. size, shape and colour uniformity) and freedom from defects (e.g. disease, blemish, bruising or

even susceptibility to bruising physiological disorder); however variety and other attributes such as taste and

flavour which are also related to consumer preference (for some products) are also important e.g. apples

attaining threshold firmness and total soluble solids content. One retailer commented that they “will flex

[specifications] on size and other visuals but not on taste”. Specifications are enforced by internal quality

control inspections by suppliers and retail customers. This said, the statistical validity of these inspections is

questionable. Although objective tests are carried out to assess that specifications are being adhered to some

retailers carry out “regular staff blind taste tests and benchmark products against other retailers”. There is

typically little tolerance for severe aesthetic defects even for value lines as it is generally acknowledged that

most consumers are still sensitive when appearance does not meet a minimum threshold level.

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It is easy to criticise specifications, but it should be acknowledged that non-adherence to most specifications can

markedly influence consumer preference and purchasing decisions. Customer complaints and increasingly other

feedback mechanisms are used to judge whether specifications reflect consumer purchasing behaviour. The

main customer complaints reported by retailers in this research were product and packaging defects, foreign

bodies (e.g. stones in potato packs or caterpillars in broccoli), disease, physiological disorders, product not

lasting its shelf life, and dissatisfaction over flavour not meeting expectations. Many retailers and indeed

suppliers commented that the accuracy of customer complaints was questionable.

Specifications determine the assignment of products to each quality tier, yet it is true that some specifications

for certain product types are solely based on physical attributes such as appearance. This does not mean that

these specifications are not useful as the importance of appearance should not be underestimated (cf. section 7)

Specific examples of interviewees’ comments relating to specifications and UK consumer preferences for

strawberry, apple and lettuce and potato are detailed below. N.B. that suppliers comments are anonymous and in italics

4.2.1 Strawberry

Strawberry specifications are determined by visual appearance (size, shape, fruit colour, glossiness, calyx

condition) and freedom from deflects (incidence of mould, misshapenness, wet and dry bruising) and total

soluble solids (TSS%; often referred to (mistakenly) as Brix). TSS is used by some retailers to differentiate

between premium and standard lines and “indeed breeding programmes have delivered varieties with lower

acid and higher sugar profiles which reflect what consumers want”. Premium lines will usually have higher

TSS values as compared to standard lines. However, it is clear that the objective quality control measurements

used by the UK soft fruit industry are fairly rudimentary (Terry, 2012) and it is “accepted by most retailers that

Brix [TSS%] is not a good measure for flavour”. Acidity, which is an important component of taste is not

measured objectively. Significant change has occurred recently whereby “the different demand drivers for each

quality tier used to be based on variety, but over the last year standard varieties are being switched to premium

when they are eating well. For instance, the variety Jubilee [which is known to have high sugar content (Giné

Bordonaba and Terry, 2009)] is always top tier and Sweet Eve standard, yet when Sweet Eve delivers the same

eating experience as Jubilee then it is switched to top tier”. This statement demonstrates that for strawberries

the division between quality tiers is not just based on appearance and freedom from defects but also on

perceived sweetness. Another supplier stated that “for premium it used to be about berry size and aesthetics but

now is more about variety and sweet flavour, but small berries from premium varieties will be put into standard

range or special packs” and “there is an approved variety list for all quality tiers”. Another supplier reiterated

some of these comments and stated that “variety performance is key to the three tiers and that specifications 19

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don’t differ markedly” and that the key demand drivers for premium and value are “eating quality” and “price”,

respectively. This demonstrates that promotional activity which is centred on value is intimately coupled to

demand.

Despite the acknowledgement that attitudes may be changing, price and visual appearance are still critical. One

interviewee reported that “standard [lines] are driven by offers” and “quality is a given [and there] has to be a

promotion to drive sales e.g. half price/two for/ low price (i.e. smaller punnet size)” and that “sales decline

when product is not on offer”.

At the start of the UK season a small proportion of fruit is misshapen. This coincides with primary fruit

especially on the primary truss of cv. Elsanta (still the UK’s main variety) being very prone to being misshapen.

This ‘defect’ has no effect on shelf life or taste and is just a result of problems encountered during fertilisation

of the pistils during flowering, yet the non-uniformity conveys to the consumer that there is a problem with the

fruit. One respondent stated that there may be “market potential [for these misshapen fruit] but only for a short

time period” yet acknowledged that there was a problem in “how to position [these fruit] to the retailers”.

However, another supplier stated that “the lower tier was very tough on quality specifications and that they

were not class II but ‘class 1 ½’” yet “the cv. Elsanta was still the main variety for the standard tier but

misshapen (about 10%) could go into basic tier”. Thus, there seems to be recognition by some retailers that

small or non-uniformly shaped strawberry fruit can be utilised as long as there is clear communication on the

pack e.g. ‘all shapes and sizes’.

UK consumers recognise that visual appearance of strawberry fruit does not always signify good eating quality.

One respondent stated that “some US varieties grown in Spain/Morocco are fine visually but don’t eat well” and

that “UK consumer preference is for softer and sweeter fruit”. This preference differs from some other EU

nations whereby the “German market is very different and consumers are price driven”. This leads to “big

swings in prices and poor continuity for suppliers” such that “[they] don’t work on a programme basis with

German retailers”. These statements may add weight to the argument that where markets are too price sensitive

and not focussed on delivering value, the quality and continuity of supply suffers irreparably.

Consumer attitudes to quality tiers are multifaceted. One interviewee stated that “consumer research suggests

that shoppers believe that value ranges [of strawberries] won’t last shelf life …. fruit will go off”. There

appears, therefore, to be a belief by some consumers that Value lines may be inferior in terms of longevity/shelf

life and may impact home waste. There is, however, no scientific basis for this perception since smaller fruit,

which tend to be assigned to the value ranges, will have a similar shelf life to their larger counterparts. It may be

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that a campaign convincing customers that Value lines do not mean sub-standard is needed, but it is unclear

whether promoting value lines would be economically sensible for suppliers and retailers alike since the profit

margins are much lower. Promoting Value lines may inevitably cannibalise Standard lines. One respondent

stated that “usually 2-10% of strawberries picked don’t make the quality grade and are dumped on farm. The

reasons for out grading products was that if fruit were damaged or weak i.e. back end of the season then they

won’t make shelf life and [they] want to give consumers 3 days of shelf life (no moulds during that time)”.

4.2.2 Apple

Apple specifications are principally determined by visual appearance (size, shape, fruit colour), internal

condition, TSS and firmness. Interviewees stated that “specifications [for apples] have not changed radically

for a long time and is driven by fruit condition – crispness and juiciness”. The main change has been supplying

firmer apples and this has been demand driven by both consumers and retailers. “Consumers want crunchy and

juicy apples and retailers value firmer apples as it helps prevent in-store waste”. Evidence from the academic

literature has long confirmed that apple firmness is strongly correlated to perceived quality (cf. Johnson et al.,

2002).

Specifications do differ across the three quality tiers for apples sold in the UK. Premium apples are commonly

sold in tray packs, whilst standard and value ranges are sold either loose, prepacked or in polythene bags,

respectively. One respondent stated that “premium and standard lines are all class I at retail, whilst value

apples are not class II but ‘class 1.5’” such that there was “little opportunity for class II fruit and that these

were better assigned for juicing”. Another supplier explained that “quality specifications were not chased

massively between 2008-2009 for value apple lines which were introduced in 2008” and that there “is greater

tolerance on colour and softness for value lines, but no tolerance for visual defects”. All suppliers stated that

premium lines tended to be higher in TSS, were variety specific and were chased by “discerning consumers who

buy according to variety” but that “consumers who chose standard and value lines were not very variety loyal”.

It is clear that skin blemishes on apples do not affect fruit taste and flavour but may affect consumer preferences

and judgement of quality. Specifications tend to be very strict across all tiers for visual appearance. This said,

occasionally specifications have been relaxed in order to increase crop utilisation. For instance, in November

2011 a number of UK apples cv. Cox consignments which were particularly affected by frost in May and

subsequently developed frost-induced skin blemishes when sold (Waitrose, 2011). The fact that they were

‘ugly’ was celebrated and the price reduced, however, it is unclear whether this reaction could be sustained.

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This said, in 2012-2013 season many retailers lowered specification thresholds. The fact that the price was

reduced reflects that the apples needed to be promoted to be sold.

4.2.3 Lettuce

Specifications for lettuce and other salad crops are principally centred on physical parameters such as size,

shape, density, outer leaf finish and soiling. Respondents commented that “eating quality is not measurable

and photographs support key aspects e.g. internal density” and that “30% variation in head weight was

acceptable to some customers”.

4.2.4 Potato

The quality specifications for fresh potatoes are mainly based on visual appearance viz. size and absence of

defects (skin finish, incidence of sprouting, greening and disease). All suppliers work to an agreed varietal list

with the retailers. Consumer research by the Potato Council found that the appearance of fresh potatoes was the

second most important purchasing priority after price (c.f. Annex 1). Indeed, in the research herein all potato

suppliers interviewed stated that there was a strong and increasing preference by consumers for washed versus

unwashed tubers which demonstrates that perceived quality is related to visual appearance. One supplier

commented that “customers do not complain about skin finish – don’t like it then they don’t buy it – but they do

complain about excessive sprouting/ greening/ wet rots and eating quality”. Skin quality drives waste in store –

retailer target 2% (includes waste and markdowns)”. The importance of visual appearance for potatoes in

determining potato purchase decisions was also confirmed by additional consumer research (Pritchard et al.,

2011). Here, consumers were reported to be put off buying a particular bag of potatoes if there was evidence of

rots, sprouting, and greening. The influence of washing was not tested. Respondents in the aforementioned

WRAP-funded research were also shown images of potatoes with varying degrees of defect (e.g. greening, rot,

scurf, sprouting). This research showed that sprouted potatoes and those with poor skin finish seemed more

likely to be thrown away even though these ‘defects’ have little to no effect on eating quality. This research

confirms, despite popular belief, that many specifications used by retailers do actually reflect consumer

preferences even though they do not affect potato eating quality.

4.3 Wholesaler specifications

Wholesaler markets tend to not enforce specifications like mainstream retail, but still supply a range of

customers demanding a range of fresh produce qualities including: high end customer base (e.g. restaurants),

independent retailers, traditional street markets and ethnic communities.

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5. Purchasing Trends

5.1 Introduction

. In this report it has not been possible to verify or quantify the fresh component of the total market. There are

good data on retail purchases but for out of home purchases it is not possible to disaggregate the fruit and

vegetable element because these products are bought as part of a meal. Indeed, it is even more difficult to

estimate the proportion that is consumed out of the home.

Overall and in value terms Family Food (2011) estimate that 26% of total food spend (excluding alcoholic

drinks) is on out of the home consumption. However, the volume of fresh fruit, vegetables consumed out of the

home is likely to be significantly less. Horizons suggest that for an ‘average’ product foodservice purchases are

17-18% of retail purchases. Analysis of Family Food data suggests that the volume of fresh fruit and vegetables

consumed out of the home might be closer to 3%. However, such estimates are fraught with difficulty because:

It would be necessary to separate out the components of composite meals like sandwiches;

Data would be required from large institutional caterers;

5.2 Retail

ONS data on household final consumption shows that the UK spent £73.5bn on food in 2010 of which £6.4bn

was spent on fruit (8.8%) and £11.4bn on vegetables (15.5%). Since 2000 the proportion spent on fruit has

increased from 7.6% while the proportion spent on vegetables has fallen from 16.3%.

There are two main data-sources on food purchases. These are discussed more fully in Annex 2. One-off reports

for example from Mintel are also available. Yet, there appears to be a dichotomy between different data sources

on whether fruit and vegetable consumption is actually static or in decline as indicted by Family Food. In this

study, we had access to Kantar data as described in Section 2. Data is as follows and suggests that for some

fruit and vegetables expenditure and volume have either remained stable or even occasionally increased since

2003 to 2011 (Figures 1-3 [data not corrected for inflation or population growth]). As stated, this contradicts

much of the Family Food 2009 data and thus this apparent conflict requires further study and analysis. The

effect of seasonality and thus temporal changes in demand are not fully accounted for in Family Food data.

Family Food data tends to be used by government whereas industry uses Kantar (or similar) as sources of data

(Annex 2). Data do show that the economic crisis in 2008 did have a marked effect, albeit transient, on some

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quality tiers for some fruits and vegetables, but it is likely that this change was a response from mainstream

retailers against the threat from the ‘rise of the discounters’ (e.g. Aldi).

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Figure 1b: Yearly volume of selected fruits and vegetables consumed in all tiers (premium, standard and value) between 2003 and 2011. (redrawn using Kantar data) [NB y axis are different]

Yearly spend for fruit and vegetables has increased between 2003 and 2011 but has stabilised for

premium and value lines.

Yearly volume for fruit and vegetables has steadily increased between 2003 and 2009 but then

stabilised. A large fall was observed for standard lines around the start of the economic crisis

whereupon a rebound effect was evident in 2010. The volume of value lines increased until 2009 but

then stabilised. 24

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Time (years)

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Yearly spend for all selected fruit increased between 2003 and 2011 although there were discrepancies

amongst the premium and lower quality tiers for certain lines. For example, premium tomato lines

increased until the economic crisis whereupon they declined. Value lines for selected fruit increased in

response to the economic crisis but then stabilised in 2009.25

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Yearly volume for all selected fruit has remained relatively stable between 2003 and 2011 even through

some value lines have increased. A steep decline was observed for apples in response to the economic

crisis but volumes then recovered in 2010.

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Figure 3: Yearly volume of selected vegetables [onions, potatoes, cabbage, lettuce and carrots] consumed in all

tiers (premium, standard and value) between 2003 and 2011. (redrawn using Kantar data) [NB y axis are

different]

Yearly volumes for selected vegetables has remained relatively stable between 2003 and 2011 but there

have been marked changes in premium and value tiers for certain categories. For example, both the

premium and value lines for potatoes have increased from 2006 and 2008, respectively. There has been

no substantial penetration for lettuce in the value tier.

5.3 Trends in quality

Most respondents in this research agreed that there was a real shift in demand for different tiers since the

economic downturn and subsequent recession. A representative comment from one supplier was as follows

who stated that there was a “real polarisation of the market taking place whereby most lines are drifting down

towards the more basic quality tier but [that the] premium tier was also doing well”. Kantar data supports this

view and shows that distinct changes in demand for all three quality tiers (premium, standard and value) for

fruit and vegetables (Figs. 2 and 3). Overall, value lines have tended to take market share away from standard

lines since their wholesale introduction in 2007 - 2009. Premium lines have remained static since 2008 but

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have held there position for most produce types. They still however represent a minor share of the whole

category. One potato supplier stated that “there has been market polarisation since 2008: general lines have

been declining while value and premium lines are both increasing” and “value increasing due to economy and

premium increase reflects consumers treating themselves rather than eating out”. However, the same supplier

stated that the “net effect has been to de-value the potato category over the last three years”. Specifically

consumers tend to purchase more premium lines for the weekend period whereas basic lines tend to be steady

across the week. This pattern in purchasing behaviour is recognised in some promotions and may reflect the

belief that consumers treat themselves at the weekend and thus are more willing to ‘upgrade’.

For specific fresh produce types the dynamics between the three tiers system for volume and spend have

fluctuated considerably (Figs. 4 and 5). For apples and tomatoes the demand for Value lines has steadily

increased at the expense of Standard lines as shoppers have downgraded and mainstream supermarkets have

responded to the rise in discount supermarkets offerings. For apple, the volume of premium lines peaked in

2008 yet has remained flat thereafter. This indicates the continued willingness of some consumers to purchase

apple fruit which are differentiated from standard lines on the bases of larger fruit size and higher total soluble

solids (TSS) content (cf. section 4.2.2) In contrast, for premium lines of tomato volumes peaked in 2008 and

have now declined to 2006 levels; this perhaps being a reflection of both the economic recession and extended

downturn and also the improvement in quality of value lines.

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The evidence gathered suggests that further analysis is required to fully understand how temporal

fluxes in volume and spend of specific fresh produce types reflect changes in consumer attitudes or

preference and whether they are related to availability, seasonality and product differentiation

(quality tiers).

5.4 Foodservice

According to Horizons the value of sales in the UK’s foodservice sector in 2011 was £42bn, a figure that has

remained the same in real terms since 2008. While sales of food and beverage for out of home consumption

have risen since 2003, after taking account of inflation there had been a real decline which is likely to continue

into at least 2012.

Data from Family Food shows that the amount of food eaten out is on a long term downward trend (Family

Food data are not comparable with Horizons data for example the former excludes institutional caterers but

includes meals eaten in other households). Measured in grams, the amount of eating out was 15% lower in 2009

than in 2006. In terms of money spent in actual prices (not adjusted for inflation) it was 1.8% lower at £11.33

per person per week for all food and alcoholic drinks.

It is not possible to directly compare retail and foodservice trends for fresh fruit and vegetables because of the

large component of processed food and composite meals eaten out of the home. However, the Table below

shows category data and illustrates the declining market.

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Table 1: UK eating out purchased quantities of fruit and vegetables (grams per person per week)

Category 2006 2007 2008 2009 % change 2006-2009

Fresh and processed potatoes

72 67 66 65 -10.4

Fresh and processed fruit 15 14 13 12 -20.0

Vegetables 30 29 29 28 -7.1

Salads 19 17 19 17 -12.2

Source: Family Food, 2009

More recent information from the on sector trends, which take account of the continued economic downturn, are

contained in commercial reports. The evidence gathered suggests:

Takeaways and fast food outlets are faring better than other types of consumer foodservice by providing

convenience at lower prices;

Bars/pubs face changes in consumer habits on drinking and many have introduced more food to reduce

dependency on drink sales;

Independent and chained restaurants have been hardest hit with reduced footfall and increased costs

leading to more promotions particular from the chains though certain niches including ‘top end’

restaurants are doing better.

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6. Drivers and determinants of demand for fresh produce

6.1 Introduction

There are two general approaches that are used to understand the factors which drive or inhibit demand for fresh

fruit and vegetables: we have termed these commercial and analytical. Commercial approaches generally start

from understanding consumer behaviour using omnibus surveys, focus groups and other methods. The aim by

those who undertake the work is to sell more by developing more targeted/segmented marketing. Such

approaches will use current data and are generally confidential to the retailers and suppliers conducting the

work. Analytical approaches include all academic analyses which generally use published or survey data that

could be designed to test particular consumption theories or support policy development. These approaches tend

to use national statistics and make the results publicly available.

6.2 Commercial approaches

Marketing approaches aimed at understanding demand generally aim to identify who is buying what products

and what drives their purchasing decisions. For fresh fruit and vegetables this can only be done for the retail

market. The main commercial approach is to divide the market up into different segments. There are many

different ways to segment a market for example using life-styles (for example ‘price sensitive’, ‘convenience’,

‘healthy’) or life-stages (for example ‘young adults’, ‘families’, ‘pensioners’) and such approaches are used

variously by businesses involved in the marketing of these products.

The focus of the present study was on ten (10) products and to properly understand the drivers of demand, each

should be considered in turn because they may be bought by different people for different reasons in different

ways. For example, some products may appeal to elderly people while others more to families; some products

may be bought as part of a weekly shop while others are bought on impulse or according to changes in seasonal

eating habits and availability. These studies might also try to understand the way shoppers shop, the changing

composition of their ‘shopping basket’, and the impact of various in-store influences.

There is a considerable amount of shopper-based research that is publicly available. The majority of this

research is ‘generic’ in nature because it focuses on understanding aggregate choices across all grocery

products. A summary of this research is included at Annex 3. Not surprisingly shoppers say that price is

currently the most important driver of product choice.

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A more detailed and category specific examination of fresh fruit and vegetable demand has been published by

Mintel in early 2011. This work focused on the performance of the market rather than understanding demand

drivers but showed:

The vast majority of consumers choose fresh (as opposed to tinned or frozen) fruit and vegetables

seeing a 23% growth between 2005 and 2010;

Male consumers feel pressurised into eating fruit and vegetables while female consumers eat fruit and

vegetables as an alternative to snacks such as chocolate;

Promotional activity is a driver for most consumers especially those in larger households.

6.2.1 Example of consumer analysis - potato demand drivers

The most detailed consumer analysis for any fresh produce type was published by the Potato Council (2011).

The summary below is derived from reports and presentations which they have provided and for which the

research team gratefully acknowledge. No other evidence-based consumer research is available for other fresh

produce types.

Potato market performance

The fresh potato market is worth around £1 billion. This market grew in value by 1.5% between

February 2010/2011 but volumes fell by -0.9% (Kantar). Potatoes are bought by 96% of households.

Fresh potatoes are dominated by the pre-packed format. Loose potatoes are bought by less than half of

all households. Pre-packed white varieties dominate and have grown their volume share to over 61% of

fresh potatoes.

The pre-pack main crop accounts for more than 60% of the volume of the fresh potato sector but only

just over half of the value. Pre-pack new potatoes and pre-pack bakers are the other main types.

Premium potato sales held up well over the recession and during the later months of 2010 sales growth

was greater than the Basic tier. Sales of the Basic tier declined during 2009 and the early months of 2010

but are increasing again. This is confirmed by more recent Kantar data (Figs. 3 and 5)

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Shopper priorities when purchasing potatoes

The main purchase priority is stated as price followed by appearance, variety and pack size.

Source: Potato Council 2010

Shoppers aged over 45 accounted for almost half of all potato purchases. This is corroborated in section

6.4.5 and Annex 11-2. Younger age groups under-index on potatoes compared with the main grocery

shop

The main motivators driving potato consumption include a) Favourite, health and naturally complementing food

and b) Filling, quick to cook and being eaten for habit

When shoppers buy potatoes there are discernible and different shopping missions behind their choices.

When it comes to the point of decision-making, four in every 10 shoppers decide to buy potatoes only

after they have entered the store with a further three out of 10 making their minds up to buy potatoes

only on the day of purchase.

Standard everyday potatoes are often bought at the main shop. Baking potatoes feature when shoppers

are buying to eat them on the day of purchase while new potatoes or salad potatoes are bought when

there is a special occasion – the likelihood being they can be bought as much in a supermarket as in a

convenience store.

Value not price drive potato purchase decisions

Half of shoppers don’t know how much they pay for potatoes when they have just bought them. This

applies across all retail formats and it applies similarly by life-stage.

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In the past two years (2010-2011) there has been a significant decline in the volume of potatoes sold on

promotion – less than 40% in 2010 compared with about half of total volumes in 2008. The most

significant reduction has been in the amount of potatoes sold under temporary price reduction

promotions.

The evidence over the last four years suggests that both main crop and new potatoes are not price

sensitive. Shoppers say that if potatoes were cheaper they would be unlikely to buy more.

For the Premium tier more could be made of provenance. In the Standard tier consumers can be

encouraged to trade up from ‘generic’ whites as 81% of shoppers say they want to know more about

different varieties of potatoes.

6.3 Analytical approaches

Academic research has focused on analysing the determinants of fruit and vegetable intake by individuals or

households. These have attempted to relate intakes to socio-demographic, socio-economic, psychological or

sensory variables or more restrictively to compare consumption across demographic or socio-economic groups.

More sophisticated work has been undertaken to identify sources of independent variation in fruit and vegetable

consumption and to quantify the magnitude of the effect exerted by a particular causal variable. The most recent

published analytical work and that from the Food and Expenditure Survey to identify variables that drive fresh

fruit and vegetable demand shows that:

Women consume more fruit and vegetables than men and maybe are attitudinally better disposed to

incorporating fruit and vegetables in their diets;

Black and Asian ethnic groups consume more fruit and vegetables than the general population;

Increased household size is found to negatively impact fruit and vegetable consumption.

Food and Expenditure Survey shows that increased income and educational attainment also boosted fruit and

vegetable consumption although the income effect appears small. However the research found that the influence

of these variables is generally weak at lower levels of intake. Although economic circumstances have changed

considerably in recent years the conclusions from this work provide a useful reference point.

6.4 Discussion of key drivers of fruit and vegetable demand

Shopper studies identify price as the key driver while academic work stresses demographics and life-styles over

income and education. Neither approach sheds light on how these drivers affect the demand for different quality

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tiers. Each of these drivers can be considered in more detail in order to understand the strength of their

respective influence.

Retailers were asked to rank in order of importance the top drivers of fruit and vegetable demand in the market

and generally ranked price, promotion and availability as the three most important, respectively. However, other

factors were also considered important including the “positive effect that celebrity chefs might make in

promoting/endorsing a product or meal [often colloquially coined the Delia or Oliver effect], although this

could be being overdone” and “the negative effect of food scares like the 2011 German E. coli crisis”. Premium

end retailers and those referring to premium lines tended to report that flavour and taste were more important

than price and “eating quality and deals [promotions] drive demand as it ensures that customers return” and

that “when eating quality falls e.g. shoulder of the season or adverse weather conditions then sales drop”. One

retailer suggested that “tomatoes, apples, bananas and potatoes are the four key high penetration areas that

customers generally use as a barometer of quality”

6.4.1 Price

It is recognised that since about 2006 food has become less affordable in household budgets; that is food prices

have increased faster than the general rate of inflation as measured by the CPI. Taking 2005 as the base

(CPI=100) it can be seen that food has become relatively more expensive (an index of 128.1 for food compared

with an index of 114.5 for all items) but within food, fruit is relatively less expensive while vegetables have

become relatively more expensive (Table 2). The most significant increase in the price of fruit occurred

between 2009 and 2010 while the most significant increase in the price of vegetables occurred between 2007

and 2008. Both the increase in prices and their relative shifts could impact demand. Economists use the term

elasticity to measure the responsiveness of demand to changes in price or incomes. The available, though

somewhat dated evidence, suggest that price increases will lead to small reductions in demand while increases

in incomes lead to small increases in demand. It could be argued that fruit and some salads are more responsive

to price changes than vegetables and that different fruits and vegetables will react very differently – but the

econometric evidence to back this up has not been carried out. One respondent suggested that “demand for

fruits and vegetables is elastic and inelastic, respectively. So discount price of some fruit will increase sales

significantly as most fruit is aspirational. So discount vegetables then no sales response – consumers trade out

of Class I”. If true, then this statement reveals that the demand for fruits versus vegetables may be very

different such that this dichotomy could be further investigated.

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If shoppers are strongly influenced by prices then when prices increase it is expected that demand will reduce.

Over the period 2000-2005 purchases of fruit and vegetables in general increased (though not every single fruit

or vegetable did so). Fruit was relatively more expensive in 2002-3 than food in general but this did not impact

purchases. This suggests that while there might be a relationship between price and demand it has not been

straightforward and that other factors can also exert a strong if not more powerful influence. Changing

household incomes may be one of these factors.

Table 2: Changes in the CPI from 2000 to 2010 for all items compared with food, fruit and vegetables (source:

ONS).

Reports in ‘The Grocer’ (March 2011) referring to the Mintel research indicates that 70% of consumers across

all age and income groups have noticed that fruit and vegetable prices are going up. According to Mintel,

‘shoppers were cutting back on fruit and vegetable consumption due to a combination of real price increases

and a difficult to shift perception that fresh produce was pricey’. Indeed, one respondent stated that “price is an

issue for all retailers and they benchmark themselves against each other but [that it was] difficult to know who

is a price setter” and “that during periods in this summer [2011] some retailers sold products at a less price

paid”.

6.4.2 Impact of household incomes on purchasing of quality tiers

Research by the IFS indicates that in the three years from 2008 to 2011 real household incomes have fallen by

1.6%. According to the IFS, this represents the first time that incomes have fallen over a three year period since

the three years from 1990 to 1993 and the biggest drop in living standards since 1980-83. The most important

contributory factors are the failure of earnings to keep pace with inflation and lower than usual interest received 38

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from savings. The research expects household incomes to be below their 2008 level in 2013. Other evidence

supports the view that consumer spending power has been declining at least since late 2009 and this may have

had an effect on the observed rise in sales of value lines for some fruits and vegetables (Figs. 1-5).

Consumers can adjust to reduced incomes in a variety of ways but until very recently have continued to buy the

same quantity of food largely because it is regarded as a necessity with few if any alternatives, though in 2011 a

decline in the volume of food purchased has been reported. Individuals are changing their behaviours in respect

of food in a number of important ways. The following trends are evident since 2009 which will impact on fruit

and vegetable purchases.

Some shoppers have switched part or all of their purchases from the major multiple retailers in favour of

the ‘Discounters’ like Aldi and Lidl who have seen their overall share of the market grow. IGD research

suggests that shoppers perceive the Discounters fresh produce range to be limited though of high quality

and low price and that permanent special offers were a particular attraction.

In response to the increasing market share of the Discounters the major multiple retailers have increased

the number of promotions and introduced value lines (Figs. 2 & 3) for a wide range of products (a

response also adopted by the ‘high end’ retailers, for example Waitrose ‘Essential’ lines). However, the

impact of promotions on fruit and vegetable demand is difficult to determine (see below).

Shoppers have changed the composition of their shopping baskets to cheaper items, fewer items and

smaller pack sizes. This manifests itself in a variety of ways including trading down from higher value

to lower value products of the same type (for example a tomato on the vine to a loose one – Standard to

Value; Figs. 4 and 5) to switching products from a more to a less expensive type. Some shoppers will

have also substituted products outside of the fresh categories (e.g. fresh potatoes to processed potatoes).

Shoppers report that they are more likely to search for bargains and take advantage of ‘offers’; to swap to

cheaper or supermarket own brands and to change where they buy food from. These shifts in shopping

behaviour that have come about because of the squeeze on household incomes might not in themselves cause a

reduction in fruit and vegetable purchases. On the other hand, shoppers responses to rising fuel costs for

example which have benefited convenience retailers might result in decreased demand because shopper

perceive the convenience offer to be limited and of poorer quality. Likewise, the impact of internet shopping on

fruit and vegetable purchasing behaviour needs further research.

Reductions in household incomes cannot explain the observed falls in fresh fruit and vegetable consumption as

reported by Family Food. For example the evidence shows that there has been a long term decline in purchases 39

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of fresh green vegetables and fresh potatoes for periods during which household incomes were rising. Within

the apple fruit category a long term decline has been seen (though the overall consumption of fruit has

increased) and this trend also cannot be explained by changes in household incomes or by the price of apples.

The decline in mainstay fresh produce types (e.g. potatoes and apples) is likely to be as a result of increase

choice within the entire fresh produce category and substitutions outside the category.

Contrary to that previously reported in Family Food and Food and Expenditure survey where

consumption of fruit and vegetables declined with lower social economic groupings, additional

2011 Kantar data analysis in this report demonstrated that employment status, region and social

economic groupings (SEG) seem to have affected some but not all purchasing behaviour across

tiers for apple (Annex 7-1, 8-1, 9-1, 10, 11-1, 12-1), potato (Annex 7-2, 8-2, 9-2, 10, 11-2, 12-2) and

even strawberry (7-3, 8-3, 9-3, 10, 11-3, 12-3).

Note: Social economic groupings (SEG) classifications are based on the occupation of the head of the

household as described by the National Statistics Socio-economic Classification (NS-SEC) as follows: (A)

Higher managerial, administrative or professional; (B) Intermediate managerial, administrative or

professional; (C1) Supervisory or clerical and junior managerial, administrative or professional; (C2)

Skilled manual workers; (D) Semi and unskilled manual workers; (E) Casual or lowest grade workers,

pensioners, and others who depend on the welfare state for their income, this also includes students.

6.4.3 Impact of employment status and socioeconomic grouping (SEG) on purchasing of quality tiers [potato,

apple and strawberry]

Employment status and SEG not only affect household income and dietary culture, but also the opportunities to

purchase fruit and vegetables due to time constraints. Drawing on Kantar 2011 data analysis the following were

discovered:

For apple, significantly higher purchases in both standard and value tiers were observed for the ‘over 30

hrs’ and ‘retired’ groups followed by people working ‘8-29Hrs’ and ‘Not working’. All other groups

(‘Under 8 hrs’, ‘Unemployed’ and ‘Full time Education’) purchased significantly lower amounts (Annex

7-1).

For potato and strawberry, significantly higher purchases in all tiers were observed for the ‘over 30 hrs’

and ‘retired’ groups followed by people working ‘8-29Hrs’ and ‘Not working’. ‘Under 8 hrs’,

‘Unemployed’ and ‘Full time Education’ groups purchased significantly lower amounts (Annex 7-2 and

7-3).

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Across all quality tiers SEG-A and C1s purchased significantly the lowest and highest amounts of

apples, potatoes and strawberries, respectively (Annex 8-1, 8-2 and 8-3).

There was no significant difference between C2, B, D, E for lower tier potatoes and strawberries.

(Annex 8-2 and 8-3). For apples lower tier, SEG-B and C2 were significantly lower than C1 but

significantly higher than D and E (Annex 8-1).

Overall this data provides evidence that employment status has a significant effect on fruit and vegetable

purchasing with those working ‘Under 8 hrs’, ‘Unemployed’ or in ‘Full time Education’ purchasing

significantly lower amounts of standard and value lines compared to those in full time employment or

retired groups. With regard to the premium tier significant differences were only found for

‘Unemployed’ or in ‘Full time Education’; again both groups purchasing significantly the lowest

amounts. However, the purchasing of lower tier fruit and vegetables tended to not be as influenced by

SEG and no clear differences in purchase trends between tiers was observed.

6.4.4 Impact of region on purchasing of quality tiers [potato, apple and strawberry]

The region within which a household resides will influence household income, social economic grouping,

availability to fresh produce (urban vs. rural) and dietary culture. Drawing on Kantar 2011 data analysis the

following were discovered:

For apples and potatoes, there were little differences in purchasing behaviour between regions across

quality tiers (Annex 9-1 and 9-2).

In all tiers significantly higher percentages of apples, potatoes and strawberries were purchased in the

London and Midlands (Annex 9-1, 9-2 and 9-3).

In all tiers lower percentages of apples and potatoes were purchased in the North East and South West

regions (Annex 9-1 and 9-2).

A slight increase in the purchase of premium apples was observed in Scotland and South regions when

comparing with the other tiers (Annex 9-1).

For strawberries, the lowest proportion of value strawberries when compared to standard and premium

lines was observed in Scotland whilst the purchase of premium strawberries was lower in Yorkshire,

Lancashire and Wales and Southwest (Annex 9-3).

Overall this data provides evidence that region had a minimal effect on purchasing behaviour across

quality tiers.

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6.4.5 Impact of age, gender and ethnicity on purchasing of quality tiers [potato, apple and strawberry]

Population growth has increased by 9% between 1983 and 2008. At the same time life expectancy has increased

with the result that the population contains a higher proportion of elderly people and has become substantially

more diverse comprising a greater mix of ethnic groups. Natural change was more important than migration for

population growth in the years to 1999 but from 2000 to 2007 net immigration was the biggest driver of

population change. In addition, more people are also choosing to live in single person households the number of

which has risen by 73%. According to Family Food 2009: i) Purchases of fruit increase with age – with the

average varying from 1.3 to 2.4 portions per person per day depending on age, ii) purchases of vegetables

increase with age up to seventy years old, iii) Single person households have high purchases at 180 grams of

fruit per person per day, 50% more than any other household composition, iv) households with three or more

adults and no children purchase on average less than one portion of fruit per person per day. When apple,

strawberry and potato were analysed individually using Kantar 2011 data the following were discovered

For apples, potatoes and strawberries the lowest average purchases for lower and standard lines were

registered for the ‘80 and over’ and then ‘under 30’ age groups (Annex 11-1, 11-2 and 11-3)

For apples, purchasing behaviour of different age groups did not significant differ across all quality tiers

with the lowest average purchases again registered for the ‘80 and over’ and ‘under 30’ age groups

(Annex 11-1)

For potatoes, the ‘50-59’ and ‘60-69’ age groups purchased significantly more premium potatoes

compared to all other age ranges (Annex 11-2)

For strawberries, purchases of value lines were significantly higher for the ’40-49’ age group and

progressively decreased with youth and age, respectively. (Annex 11-3)

Male shoppers bought 2.09% less premium and 1.32% more value apples, respectively than female

consumers [taking as reference the standard quality tier].

In contrast, male shoppers bought 0.85% more premium and 2.24% less value potatoes.

For strawberries, male consumers purchased 4.63% more premium fruit compared to standard lines.

Overall this data provides evidence that those on the extremities of age groupings ( ‘80 and over’ and

‘under 30’ age groups) tended to purchase less fruit and vegetables in the lower quality tiers and that

male shoppers’ behaviour was more driven by premium lines for certain fresh produce types.

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From the structured questionnaire one wholesaler commented that “shoppers from ethnic minorities tended to

be less influenced by visual appearance [than the mainstream population] and valued intrinsic attributes more -

like flavour and taste”.

The discrepancy in demand drivers for fruit and vegetables amongst different ethnic groups may

warrant further research as it may be related to a more matriarchal control of food purchases

within an extended family and minorities not being targeted, exposed or influenced as much by

strategic marketing campaigns instigated by multiple retailers.

6.4.6 Promotions

Promotions are being used widely by retailers to increase the affordability of fruit and vegetables as well as

attract new customers (and stop customer defecting to other stores). In this sense they are part of the discussion

about price/value and can increase footfall.

UK grocery retailing has become significantly more promotional since 2008. According to IGD the proportion

of promotions in the value of sales has risen from 31% in the year to January 2009 to 34% in the year to January

2010. Data on the extent of promotions and their type by different retailers is shown in Figure 6. The high levels

of promotional activity at the end of 2009 have also been sustained into 2010. Although it is difficult to

distinguish the categories for which promotional activity is greatest it is clear that the general trends shown

below applies equally to fruit and vegetables.

43 Tesco Asda Sainsbury’s Morrisons Somerfield Waitrose Cooperative Iceland

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Figure 6: Percentage change in promotions and their type by different retailers [Source: Kantar Jan 2009 - Jan

2010]

‘The Grocer’ article referred to the above and reported that its own research has shown that the big four

retailers and Waitrose were on average running nearly 40% more fresh produce promotions in 2010 than in

2008 (Table 3).

Table 3: Evidence of promotional increase by major retailer

Supermarket 2008 2010 % change

Asda 338 812 140

Morrisons 93 474 410

Sainsbury’s 927 1121 21

Tesco 934 1000 2

Waitrose 271 511 89

Source: Mail On-line quoting Mintel Research

The promotional mix has also changed with the emphasis shifting towards price reduction mechanics and away

from ‘buy one get one frees’ (BOGOFS) and multi-buys promotions (Terry et al., 2011). Retailers continue to

employ a wide variety of promotions and innovate with new offer types to target specific shopper requirements.

However, within the current research there was some discrepancy between suppliers on whether decisions on

promotions were jointly made between the retailer and supplier or were imposed solely by the retailer. It was

also clear that in times of unforeseen abundance of a product line the retailer will be pushed by the supplier to

instigate a promotional activity. Since most grower and suppliers understand their cropping and availability

profiles then they in conjunction with retailers produce pre-season marketing plans with retailers based on

projected availability of product. Yet, it was recognised that some retailers were able to respond more quickly

and be more amenable than others to promotion requests made by suppliers. Indeed, there was frustration

voiced by some suppliers over the reluctance or inability of some retailers to turn off promotions when

availability was becoming limited. It is likely that the success or otherwise of a promotional campaign may be

more problematic for some products (e.g. strawberries and lettuce) if demand drivers such as weather are not

forecasted accurately such that they do not coincide with promotional campaigns.

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The effectiveness of fruit and vegetable promotions on demand is difficult to analyse. For example, promotions

are usually time limited and are traditionally used to celebrate the season and clear ‘gluts’. Where flushes or

gluts are predictable (e.g. release of end of storage cv. Queen Cox apples) then they can perform a valuable role

in promoting greater product utilisation and decreased waste, but even so may not increase demand overall.

Another possible impact is that consumers simply switch away from a product that is not being promoted to one

that is and if both are fruits, for example, then there is no overall increase in fruit purchases – a process known

as product ‘cannibalisation’. Some interviewees reported that promotions can have other unforeseen

consequences that may not be accounted for in forecasting. For instance, where a promotion works too well

then this may lead to the necessity to supply product from a lesser standard or different quality tier so as not to

fall short (e.g. “not satisfactory conditioning potatoes before packing [which can increase waste]” or “using

premium potato variety in a lower tier”). When customers over-purchase as a result of being tempted by

promotions then complaints can increase not only because of the pressure to deliver in full, but also because

consumers may store more product at home, often under sub-optimal storage conditions, and be disappointed

when they attempt to consume the product beyond its inherent home-life. This can have knock on effects by

increasing waste in the home and/or depress future sales due to customer dissatisfaction.

Results from the current research have shown that some suppliers interviewed feared that promotions are being

overused in the current climate such that consumers are suffering from ‘promotion fatigue’ and are confused

over the basis of some such offers. Some feared that the overuse of promotions (e.g. up to 50 - 80% for some

categories now sold) is destroying the price structure of the whole fresh produce category and actually making

promotions less effective. It was also noted that more seasonal products tend to be promoted (e.g. strawberries,

lettuce) to drive demand in certain periods.

It was highlighted by Terry et al. (2011) that the impact and mechanics of promotions should be better

understood from both an industry and consumer perspective and this recommendation still holds. Although the

vast majority of promotions are collectively agreed between retailers and suppliers, there are some which are

imposed with little thought on availability. It was reported by many suppliers that the frequency and timing of

some promotions is being governed more by retailer positioning rather than by being aligned to

oversupply/availability or even recognised seasonal demand (e.g. “promoting new potatoes out of season at

Christmas or Guy Fawkes night leading to increase imports”). There was some frustration amongst some

suppliers that promotions “used to be done in agreement based on crop flushes but changed over the last three

years and were now done corporately – dictated to buyers by the Centre, based on how many premium products

should be promoted /how many products on promotion at any one time and types of promotion. No flexibility or

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common-sense approach”. It was also believed that retailer lead multi-buys promotions and changing pack

sizes across a range of categories may be confusing consumers. It is now unclear whether consumers

understand promotions and indeed the true price of different fruit and vegetable lines as they have little to

benchmark prices against. This represents a real risk and one which should be addressed in future research.

6.4.7 Seasonality

Availability is affected by seasonality, storage and supply chain management. Overall demand for many fresh

produce types is relatively predictable across years reflecting changes in eating habits, availability/price across

the season (Figure 7 and Annexes 4, 5 and 6). For example, the consumption of strawberry fruit increases

dramatically during the summer months when availability of UK fruit is high and costs are correspondingly

lower. Demand for premium potatoes [smaller salad and new potatoes] increases during the summer months.

In summary, although there has been some change in proportions of specific fruits and vegetables

sold across different quality tiers, the demand drivers and the pattern of volume sales are very

much affected by seasonality, availability (including storage) and are thus truly product specific.

More research is required to investigate further how seasonality and availability affect temporal

changes in demand across quality tiers and whether this is sustainable.

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7. Prospects for a lower quality tier

7.1 Retailers

In general, no retailers supported an even lower quality tier than that which already exists in the industry and

suggested that it would devalue the category. This is despite the universally agreed belief that the introduction

of the lower tier in 2008 is recognised by most as being a success for most fruit and vegetable products in terms

of crop utilisation and sales. However, it was agreed by a minority of retailers that there may be some potential

in extending the lower range e.g. selling mark downs for home processing and introducing a ‘basic/value’ tier

for previously ‘non-basic/value’ products. One retailer cautioned that “risk for retailers on this [on the

consequences of supplying a lower quality tier] as would encourage ‘trading down’ and that best approach was

to spread out existing lower tier by tweaking minor attributes to reflect crop yields”. It was reported by some

respondents where they had looked at extending the lower value tier that there was no appetite by consumers for

a lower than existing tier, however it may be that brand positioning will limit any introduction of a lower quality

tier than that already available. One retailer insisted that they would like “to extend their lower tier but that this

was confounded by EU legislation” (cf. Section 8).

Despite various public campaigns to encourage consumers to ignore or place less emphasis on fruit and

vegetable aesthetics (e.g. The Sun Newspaper’s Wonky Veg Pledge) retailer specifications for fruit and

vegetables are principally governed by visual appearance (cf. Section 4). This is even true for products for

which the skin is not eaten and has no effect of taste, flavour or nutritional content. However, retailer

specifications may be a reflection of real consumer preferences. Consumer research is required to evaluate

whether attitudes might be changed or whether specifications have been created by a ‘self-fulfilling prophecy’.

That is, if consumers are continually exposed to produce which is increasingly aesthetically perfect then this is

what they will increasingly demand. Anything that deviates from this notion of quality will be adjudged by

many consumers (especially those who have little experience of fruit and vegetable purchasing outside main

retail) as being defective and sub-standard. Thus continual aesthetic ‘improvement’ will reinforce the

importance and value of specifications. One charity commented that “customers have been conditioned to visual

perfection” and that “retailers’ lower tier should be what it says but specifications are too high and retailers

could flex shape and size”.

Retailers in the main agreed that customers would be willing to forego cosmetic/ visual appearance and shape;

yet many still have strict specifications on visual appearance. One retailer stated that “visual defects are

becoming more into ‘reality’ as the customer is learning and have more experience on what affects the ‘eating’

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of the produce” The same respondent also commented that “the specifications will relax [in the future] on

progressive defects (visual/shape) in a process where the customer feels confident that ‘defects’ such as

scarring, misshapenness are not affecting the organoleptic experience. Also the customer will start to

differentiate the aim of the produce purchased i.e. misshape carrots are not important when preparing a stew”.

Concerns were raised that the introduction of a lower than existing tier may reduce margins to a critical

threshold whereby farmers would switch from horticultural to arable farming. This possible threat to

horticulture might be compounded by the increased global food prices for arable commodities. Indeed one

retailer respondent suggested that “introducing of a lower specification i.e. producing a product which is below

a given threshold will backfire as you are encouraging growers to produce more waste. If you set out to

produce a lower quality tier you are going against every principle of agricultural production. The solution is to

breakdown the elements of waste [within the supply chain]”. An example of this was to “recognise that 25% of

irrigation for potatoes is used to reduce common [potato] scab. Therefore, if the specifications on scab are

relaxed then there would be increased sustainability”.

7.2 Suppliers

In the main, most of the suppliers interviewed in this study refuted that there was any prospect of successfully

introducing a lower quality tier and that it may not be in their interest as it could potentially devalue the

category since the margins on the current lowest tier are already minimal. This view was ubiquitous across the

category, but was especially the case for short shelf-life products which are intrinsically prone to disease or

senescence such that the strength of the opposition to an even lower tier did differ across produce type. All

respondents in the strawberry and lettuce industry categorically stated that there was no market for supplying a

lower quality that that which already exists and that “in reality the economics would not stack up” and that

“ugly product would have to be sold loose and it would be picked over [in store] and damaged leading to more

waste” For salads one respondent stated that “the target is 85% field yield (will vary and could be as high as

95%) so 15% is too small, too big, damaged or diseased. Product (whole field exceptionally) will not be

harvested – plough in instead if market is awash. Ploughing in is the cheapest form of management”. A

consensus view from respondents was that growers do not set out to grow low quality produce.

Apple suppliers stated that there was little appetite for a lower quality tier as there was “no or little margin for

most retailers” and “little opportunity for premium retailers”. One supplier reported that “because of price

pressure it would be difficult to make money if you were an apple grower and that there was currently no

strategy about how supplying a lower quality tier could be achieved”. The same respondent did however state

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that “new varieties could hit price points that were attractive” and that “breeders could specifically breed for

smaller apples to market apples more successfully to children”.

Potato suppliers reported that when they have tried to introduce a lower tier category then either sales are

negatively affected (e.g. packing dirty potatoes in value tier) or customer complaints increase (e.g. moving

quality specification). One supplier commented that “consumers will not go back 10 years as skin finish is

critical [cf. Section 4] and that “consumers will not accept poor quality even in basics tier”. This was supported

by another potato supplier’s comment that consumers upgraded to standard lines when they purposely supplied

low tier potatoes that were not washed. This consumer reaction adds weight to the argument that price is in fact

not always the principal driver of demand (cf. section 6.2.1). Concerns were also raised that “anything that

downgraded consistency of potatoes could lead consumers to defect and buy non UK alternatives (e.g. rice and

pasta) and that by and large potatoes are not branded and have to combat large branded campaigns”.

All strawberry suppliers interviewed did not believe that there was a market for lower quality tier strawberries.

One stated that “individual growers have tried to make products from out grades but without success”. These

negative attitudes towards alternative markets for low grade fruit were mirrored by all other principal

strawberry suppliers and thus reflect the overall attitude of the sector that there is no market for lower grade

fruit as “rots and moulds are the only reasons for downgrades – so not acceptable to customers”. The

consequences of supplying a lower quality tier than that which already exists was reported to result in “big

wastage in store/at home” and that “fruit that didn’t last would have to go through the supply chain more

quickly [which would present] logistics issues” and “one day off shelf life can increase waste from 5% to 15%”.

The UK strawberry industry “will aim to sell as much of the crop as possible and the proportion of out grade

depends on season. Class I out-grade can vary between 65-95% depending on variety”. From these and other

comments it could be argued that although class II strawberry fruit were not being utilised by the retail sector, it

would be difficult for them to do so due to the limitations of logistics and supply chain management of such a

short shelf product. Increasing the shelf life of strawberry fruit and other short shelf life products through using

novel postharvest technologies may allow for class II to be better utilised, yet implementing such technologies

may be difficult in an increasingly price sensitive retail climate.

7.3 Wholesalers

The wholesale supply chain is already a key channel for lower grade fresh produce; yet, one wholesaler had

reservations about extending the lower tier since the margins might be too restrictive. Another wholesaler

stated that they “can see an opportunity but visual only. Could develop [lower tier] based on customer needs

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e.g. chefs different specification/size requirements – but [they] do this already” Another respondent commented

that “some chefs (high end restaurants) want to see perfect product. Shift in expectations has taken place

towards perfection yet there is a market for lower quality (especially amongst ethnic communities with lower

disposal income) – size and shape maybe irrelevant if taste is acceptable”.

7.4 Consumers

Additional Kantar data was used to investigate the impact of employment status, region, age, gender and social

economic grouping on purchasing behaviour of apple, potato and strawberry and showed unexpected results for

factors which might have been assumed to influence fruit and vegetable demand (cf. Section 6.4). Overall data

provided evidence that employment status has a significant effect on fruit and vegetable purchasing yet those

working ‘Under 8 hrs’, ‘Unemployed’ or in ‘Full time Education’ purchased significantly lower amounts of

standard and value lines compared to those in full time employment or retired groups. Indeed, the purchasing of

lower tier fruit and vegetables tended to not be as influenced by socioeconomic grouping as expected and

indicates that increasing availability of lower quality fresh produce may not affect purchasing behaviour or

consumption for vulnerable groups. Generally, region had a minimal effect on purchasing behaviour across

quality tiers whilst those on the extremities of age groupings (‘80 and over’ and ‘under 30’ age groups) tended

to purchase less fruit and vegetables in the lower quality tiers.

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8. Other considerations

8.1 Regulation and EU marketing standards for fresh produce

There has been continuing debate on the merits or otherwise of minimum standards for fruit and vegetables

since work by Price (1967) and Bowbrick (1977). The revised EU Marketing Standards were introduced in July

2009, aiming to ‘harmonise, consolidate, simplify and deregulate’ the existing standards for fresh produce. The

regulation reduced the number of commodities with specific marketing standards to ten products, selected on

the basis of being the top ten produced commodities in the EU.

There were concerns that rather than simplifying regulation the new Standards would introduce additional

layers of bureaucracy, complexity and cost to the fresh produce industry. The removal of prescriptive standards

for 26 types of produce was put forward as benefit to the industry.

There was a concern that instead of delivering a clear simplified set of regulations, these proposals would lead

to even greater proliferation of diverse requirements being set for the majority of produce not included among

the Specific Marketing Standards. UK customers (retailers) tend set their own quality standards for suppliers,

which can be over and above the regulatory standards. In effect, detailed standards still exist, although they are

not a requirement under the EU Marketing Standards.

One of the objectives of the introduction of the EU Marketing Standards was to benefit consumers by providing

produce which at that time was not currently available to the consumer as suitable for ‘home processing’.

The UK Government had a high expectation that there would be significant commercial benefits for the industry

with the derogation to allow ‘home processing’, allowing sales of produce at a lower quality. In addition it was

felt that there would be a significant impact on waste reduction, both within the food supply chain, although

alternative outlets are already in place for produce not meeting the existing Marketing Standards, or within the

home. Whilst this flexibility could be used by suppliers, there is no evidence that a significant increase of

products available to the consumer would be observed, although the current economic climate has seen the

development of more retailer value ranges to meet the needs of consumers.

The Fresh Produce Consortium has called on UK Government to ensure that standards are applied consistently

across all EU member states and that the UK industry is not placed at a competitive disadvantage owing to

differing interpretations of the General Marketing Standard. The Fresh Produce Consortium believes that

consistent application across the EU of the regulation and a thorough review in consultation with the industry

will be essential to evaluate the impact of the regulations on consumers and across the food supply chain before 52

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any further significant changes are put in place. In addition, the industry is interested in removing the remaining

ten specific marketing standards.

Respondents in this research were asked whether the recent change to the EU marketing Standards for Fresh

Horticultural Produce Regulation (543/2011) have impacted their approach to quality (Appendix I and II). In

the main most respondents stated that the changes have had no effect. In contrast an HMI inspector agreed, but

stated that “I do not believe that the changes have had the impact that the Commission was expecting, especially

in the area of home processing derogation” and that “it has exposed a lack of consistency in the wider General

Marketing Standard protocol”.

Most suppliers, wholesalers and retailers commented that “specifications were key not the legal floor” that

“customers don’t understand [the standards]” that their approach to quality “was driven by retailer

specifications” and that “EU class system does not match what customers want because it excludes flavour and

taste – e.g. Class II Florida grapefruit taste better but looks worse than Class 1 Spanish”. One wholesaler

commented that “the economic climate might be right (as very price driven) for supplying a lower quality tier

but margins may not be enough to make it worthwhile”.

The strength of opinion against the relevance of the EU standards (not just specifically 543/2011) was

dependent on product type. For instance, one strawberry supplier commented that the regulations were “not far

from being totally irrelevant” and the regulations were “out of touch with consumer requirements”. Even

though the revised regulations do not apply directly to potatoes they have has an impact in that one supplier

stated that “the change from predetermined weights has now allowed suppliers to sell potato polybags at 2.3 kg

as before this would have been prohibited as only multiples of 0.5kg were allowed. Adjusting weights can be

important to make price points for example in a promotion”. For apples it was reported that although the

change in marketing standards has had little change a subtle change from size grading to weight grading has

helped increase available product. This has enhanced grade out for certain varieties. Also increase value of

fruit by shifting product out of pre-pack to loose. For onions one supplier stated that the “only impact has been

size banding – no need to label 20 mm difference. + sell <45 mm. more tolerance for broader size range”.

One supplier commented that “the change in standards was a good idea but that retailers would not move on

quality and that there was reluctance from retailers to take the risk in such a competitive climate”. In contrast,

one retailer stated that “changes [in legislation] led them to review specifications and make some minor

amendments” and that they were “also looking at ‘home processing’ derogation in the EU standards. It could

relate to anything on shelf [they] wished to reduce to clear rather than waste. If decide to do this then not a

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separate tier but used on ‘mark-downs’ only. So better to sell as reduced to clear than go to waste e.g. one

bruised apple in a bag or seven – waste all seven or reduce to clear. RPA currently do not recognise the validity

of this approach – that a price reduction is a derogation”. Another retailer agreed that “Defra were not clear

about what can be packed at the lower tier level” This statement suggests that a lower than existing tier if used

for mark downs could reduce waste.

8.2 Five-A-Day targets and influence of media

Following the 5 A DAY advice leads to a recommended daily consumption of a minimum of 400 grams of fruit

and vegetables (excluding potatoes), although there has been some criticism over the scheme in that it equates

all fruit and vegetables (Terry, 2011). This said, according to the Department of Health’s 2008 Health Survey

for England, women aged 16 and over consumed an average of 3.8 portions (80g) per day, whilst men aged 16

and over consumed an average of 3.5 portions per day. Reported daily consumption of five or more portions of

fruit and vegetables increased between 2001 and 2006 but has since fallen back to 25% for men and 29% for

women in 2008.

The 2007 Lower Income Diet and Nutrition Survey recorded intake of fruit and vegetables by the most

materially deprived households in the UK. Only 8% of men and 9% of women met 5 portions of fruit and

vegetables a day, with a fifth of men and women consuming on average less than one portion per day. During

the four dietary recall days of the survey, a substantial proportion of participants consumed no fruit; this

included 36% of men, 28% of women, 32% of boys and 18% of girls.

Results from the first two years of the National Diet and Nutrition Survey (NDNS) rolling programme (2008/09

-2009/10) and which now includes fruit and vegetables from composite meals, show that adults (aged 19 to 64

years) consumed on average, 4.2 portions per day and older adults (aged 65 years and over) consumed 4.4

portions. Thirty per cent of adults and 37 per cent of older adults met the ‘five-a-day’ recommendation. Boys

aged 11-18 years, consumed on average 3.1 portions per day and 13 per cent met the ‘five a day’

recommendation. Girls in the same age group consumed 2.7 portions per day and 7 per cent met the

recommendation.

Dieticians work closely with clients and patients to advise on dietary requirements and encourage healthy

eating. This group of healthcare professionals therefore has a good understanding of attitudes to fruit and

vegetable consumption and the barriers that exist. IGD conducted an online survey of dieticians in 2011 to

obtain their views on aspects of fruit and vegetable consumption amongst their clients. Asked about the main

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barriers to their clients reaching 5 A DAY, the top response was dislike of fruit and vegetables (79%), followed

by cost (65%), not knowing what constitutes a portion (59%) and preparation time (58%). Although cost was

mentioned as being a barrier to fruit and vegetable consumption it is unclear whether there was any evidence to

back up this assumption.

The present research has established that the fresh produce industry generally believes that the 5 A DAY

message has had little to no impact alone on fruit and vegetable demand and that in store promotions and use of

celebrity chefs in campaigns has had more of an effect on encouraging increased consumption in some market

segments. This said, retailers still promote the 5 A DAY message on some packaging and promotional material

showing that it does have some role. Examples of some pertinent retailers’ comments on whether the 5 A DAY

message or media impact demand for fruits and vegetables were as follows

“The 5 A DAY [campaign] has made no difference”

“customer buy on promotions, not on 5 A DAY”

“influence of celebrity chefs has had a greater impact [than on 5 A DAY], but may be being overdone”.

“customers don’t like being told to eat more fruit and vegetables but respond to new varieties [and]

recipe cards” and “customers respond to [in store] taste /health messages”

Analysis of Kantar data [Annex 12-1, 12-2, 12-3] has shown that the amounts of apples, potatoes and

strawberries purchased within a household and then equally divided by those members living in an individual

household is differentially affected by employment status, socioeconomic grouping and age group. Kantar 2011

data contains purchased amount (grams). To perform these analyses, it was assumed that distribution and

consumption between the household members was equal even though it is likely that this would not be the case.

Hence the same wastage levels between groups have been assumed. A summary is as follows:

Retired individuals purchased significantly more strawberries per person per household than all other

employment status groups for which there were significant differences with all groups (Annex 12-3)

Those in full-time education purchased the lowest amounts of potatoes per person per household which

was reflected in age (Annex 12-2) (cf. section 6.2.1)

Socioeconomic grouping has relatively little impact on apples and potatoes purchased per person per

household (Annex 12-1, 12-2). Statistical significant differences were found between SEG-B, C1 and C2

purchasing statistically more than SEG-E for apples and between SEG-B that purchased statistically

more potatoes than SEG-D and E..

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Socioeconomic group D purchased significantly lower amounts of strawberries per person per

household than SEG-A, B, C1 and C2,. However there was no statistical difference between SEG-E and

SEG-A, C2 and D.

Purchasing of apples per person per household increased with age (Annex 12-1)

Purchasing of potatoes and strawberries per person per household increased with age until ‘70 -79

group’ and decreased for the ‘80 and over’ group.(Annex 12-2, 12-3)

8.3 Fruit and vegetable waste

There are many reasons why households waste fresh fruit and vegetables (Terry et al., 2011), for example two

thirds of potatoes are wasted because they are not used before the ‘best before date’. WRAP has looked at the

reasons in more detail why households throw away uncooked potatoes and they include rots, mould, sprouting,

greening, soft and slimy conditions (Pritchard et al., 2011). This research supports the work of the Potato

Council (2010) that showed the importance of appearance as a key driver of purchasing behaviour (cf. section

6.2.1). Interviewees told us that trials had been undertaken within the lower tier in which unwashed or

blemished potatoes had been offered for sale. These led to lost sales or a significant increase in consumer

complaints and therefore were discontinued.

More research is needed on understanding the drivers of waste (other than for potato) and how

these might be affected by consumer buying behaviour and changing purchasing decisions.

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9. Recommendations for further research

1. Reconcile the overall markets trends shown by the different data sources (e.g. Family Food versus

Kantar).

2. Conduct further analysis to understand how temporal fluxes in volume and spend of specific fresh

produce types reflect changes in consumer attitudes or preference and whether they are related to

availability, seasonality and product differentiation (quality tiers).

3. To complement data on purchasing behaviour additional consumer research should be conducted on

establishing the intrinsic quality, perception and preferences with reference to different segmentation

(especially ethnicity/food culture, age, gender and socio-economic grouping) for individual fruit and

vegetable species.

4. Review the workings of the EU Regulations with a view to simplification.

5. Review the impact, mechanics and sustainability of promotions from both an industry and consumer

perspective.

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References

Bowbrick, 1977. The case against compulsory minimum standards. J. Agric. Econ 28, 113-118.

Britain et al., 2010. The economics of food waste. Proceedings of Waste 2010: waste and resource

management – putting strategy into practice. Stratford-upon-Avon, 28-29 Sept.

Giné Bordonaba and Terry, 2009. Development of a glucose biosensor for rapid assessment of strawberry

quality: relationship between biosensor response and fruit composition. J. Agric. Food Chem. 57, 8220-8226.

Johnston et al., 2002. Postharvest softening of apple (Malus domestica) fruit: a review. NZ J. Crop Hort. Sci.

30, 145-160.

Potato Council, 2010. Usage and Attitude Research.

Price (1967). Discarding low quality produce with an elastic demand. J. Fm Econ. 49, 622-632.

Pritchard et al., 2011. Reducing supply chain and consumer potato waste. WRAP Final Report

Terry et al., 2011. Fruit and vegetables resource maps. WRAP Final Report

Terry, 2011. Health Promoting Properties of Fruit and Vegetables. CABI.

Terry, 2012. Soft Fruit In: Crop Postharvest: Science and technology- Perishables. Ed. Rees, Farrell and

Orchard.

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Appendix I: retailer and wholesaler questionnaire

Fruit and Vegetable Demand -----------------------------------------------------------------------------------------------------------------Defra has commissioned Cranfield University, the Fresh Produce Consortium and IGD to conduct research into the demand for different quality tiers of fruit and vegetables. Specifically, Defra wish to understand the impacts and barriers to increasing the availability of lower quality fruit and vegetables to consumers.

Research for this project is being undertaken by questionnaire to retailers, wholesalers and their suppliers. The work will focus on demand overall as well as specifically for the following 10 products: apples, bananas, strawberries, grapes, onions, potatoes, tomatoes, cabbage, lettuce and carrots.

All answers will be ‘in confidence’ and not reported by individual respondent. -----------------------------------------------------------------------------------------------------------------

Retailers and Wholesalers

a) Quality

How do you define quality for fruit and vegetables?

What quality criteria do you use and which dimensions of quality are most important? How are these quality criteria enforced?(Could we have a copy of a sample quality specification)

What products fall into which quality tiers?How is this decided?

What is happening to demand for each quality tier?Are there different demand drivers for each quality tier?Are there significant differences in demand drivers between fruit/vegetables? (and different fruits/vegetables)

Do you think there is demand for a quality tier lower than you currently provide?Which quality criteria do you think consumers would be willing to forego?What are the barriers to supplying a lower quality tier to consumers? What would be the consequences of supplying a lower quality tier market?

Have you tried introducing a lower quality tier? If so, what were the results? Do you have any plans to introduce a lower quality tier?Have you done any market research on the demand for lower quality?

What effective leavers can you pull to increase demand for lower quality tiers?Do you think product specific promotions are more effective than generic campaigns at increasing overall fruit and vegetable consumption?

b) Demand

Please rank in order of importance the top 5 drivers (eg price/packaging) of fruit demand in the market Please rank in order of importance the top 5 drivers (eg price/packaging) of vegetable demand in the market

What are the top three external influences (eg 5 A DAY/Media) that impact demand for fruit and vegetables?

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Do you think these drivers vary greatly product by product? If yes please give details

What are the main customer complaints regarding fruit/vegetables?

To what extent does demand vary during the year? To what extent is demand influenced by ‘Country of origin’?

How will the market for fruit and vegetables develop over the next 2-3 years?

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Appendix II: supplier questionnaire

Fruit and Vegetable Demand

-----------------------------------------------------------------------------------------------------------------Defra has commissioned Cranfield University, the Fresh Produce Consortium and IGD to conduct research into the demand for different quality tiers of fruit and vegetables. Specifically Defra wish to understand the impacts and barriers to increasing the availability of lower quality fruit and vegetables to consumers.

Research for this project is being undertaken by questionnaire to retailers, wholesalers and their suppliers. The work will focus on demand overall as well as specifically for the following 10 products: apples, bananas, strawberries, grapes, onions, potatoes, tomatoes, cabbage, lettuce and carrots.

All answers will be ‘in confidence’ and not reported by individual respondent. -----------------------------------------------------------------------------------------------------------------

Suppliers

a) Quality

What different quality tiers do you recognise?How is quality communicated by your customers’?How is quality determined?(Could we have a sample copy of your quality specifications?)

How is quality enforced?

What is happening to demand for each quality tier?Are there different demand drivers for each quality tier?Are there significant differences between fruit/vegetables? (and different fruits/vegetables)

What happens to products that do not make the top quality tier?What proportion of product is this?

What happens to products that do not make the lowest quality tier?What proportion of product is this?

What proportion of product does not make any quality grade?

What are the most important markets for ‘out-graded’ products? Do these markets specify any quality requirements?How will these markets develop?

Do you think there is a retail/wholesale market for lower quality tier products? If so, describe; if not why What would be the consequences of supplying a lower quality tier market?What are the barriers to supplying a lower quality tier consumer market?

Have you done any market research on the demand for lower quality?

b) Management61

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How is quality communicated to growers?

What happens to products that are grown but fail to meet your quality criteria?

How are production quantities determined? Are growers involved and if so how?

Do you conduct joint planning and forecasting with customers/suppliers?

How are promotions decided?

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ANNEX 1 - Quality

Food quality is the characteristics of food that are acceptable to consumers. This includes external factors as

appearance (size, shape, colour, gloss, and consistency), texture, taste and flavour; factors such as grade

standards and internal (chemical, physical, microbial). Food quality is thereby multi-faceted including intrinsic

product safety and health, sensory properties and shelf life, reliability and convenience as well as extrinsic

production system characteristics and environmental characteristics.

According to the FAO quoting ISO Standard 8402 (1987): quality is ‘the totality of features and characteristics

of a product or service that bears its ability to satisfy stated or implied needs’. This definition implies consumer

satisfaction fulfilling their needs and expectations. It is therefore essential when producing quality products to

know the user(s) of the product and what comprise the specific and constantly changing needs that are being

met. In this sense, quality is very much related to business strategy and marketing.

Grading is fundamental to any analysis of quality and rules relating to fruit and vegetables were in place in the

UK before we joined the EU. Grading implies sorting, classification and labelling and these requirements

feature in the EU Marketing Standards for Fresh Horticultural Produce. The standards are designed to provide a

degree of consumer protection for a sector where most products are highly perishable and serious defects in the

product can develop extremely rapidly. They are also designed to help build consumer and trade confidence in

the quality of produce they buy.

A new EU Regulation (543/2011) on marketing standards for fresh fruit and vegetables applies from 22 June

2011. EU Regulation 543/2011 contains the 10 specific marketing standards applying to Apples, Citrus

(including clementines, satsumas, oranges, lemons and mandarins), Kiwi Fruit, Lettuce (including curled and

broad leaved endives), Peaches and Nectarines, Pears, Strawberries, Sweet Peppers, Table Grapes and

Tomatoes. There is also a general marketing standard that applies to most other fresh fruit and vegetables. All

these standards have been updated and are now as far as possible in line with the internationally agreed UNECE

standards.

The main regulatory amendments include:

No definition of the different quality criteria for the concerned products; which gives a bigger

interpretation margin compared to the situation before July, 1st 2009.

No compulsory reference to the classification, size and the products definition.

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The possibility for the Member States to plan derogations for the products sold unprocessed but marked

with the words “intended for processing”.

These standards are enforced by the Horticultural Marketing Inspectorate (HMI) (part of Defra’s Rural

Payments Agency). The purpose of an HMI inspection is to make sure that products are of an acceptable

standard and that consumers are not being presented with poor quality goods. The rules also cover labelling and

are intended to ensure that fresh produce offered to consumers are labelled accurately. Following an inspection

product can either be accepted, or where applicable, down-graded (from Class 1 to Class 11) or out-graded.

Down-grading or out-grading might result in unpacking or re-shipping to an alternative non-UK market.

Quality checks are conducted by the HMI and in 2008 inspections of imported products resulted in 0.5% being

out-graded and 0.2% were downgraded. Labelling defects amounted to a further two per cent. The main cause

of quality defects is rotting, while the main cause of label defects is failure to state a product class.

An evaluation of the impact of the recent changes to the marketing standards acknowledged that in the UK

marketing standards are defined by multiple retailers. In practice retailers and foodservice operators in the UK

have adopted more stringent quality specifications than those in law to target different shoppers, differentiate

themselves from their competitors as well as provide a point of reference against legal standards.

Fruit and vegetables are rarely branded compared with other grocery products. As a result the overwhelming

majority of fresh fruit and vegetables are sold under the retailers ‘own label’ brand. These products can be

differentiated in many ways, for example loose or pre-pack, variety, size and production standard, for example

‘Leaf’ or organic. Most retailers today recognise the three quality tiers (Table 3).

Table 3: Nomenclature of different quality tiers used by different UK retails

Retailer Premium Standard ValueTesco Finest --- ValueSainsbury’s Taste the Difference --- BasicsAsda Extra Special --- Smart PriceMorrsionsCo-op

The BestTruly Irresistible

------

ValueSimply Value

Waitrose *** --- EssentialsM&S *** --- ---Aldi --- --- ---Lidl --- --- ---

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Underpinning this approach to quality are specifications which retailers use when sourcing products and which

provide a basis by which suppliers’ grade products for their customers. These specifications vary by product

type and by retailer but will cover a range of visual measures like size, shape, colour, rots and bruising as well

as eating quality measures which are based primarily on variety underpinned by taste tests and TSS. Premium

products and those sold as Standard by retailers like M&S are usually differentiated by taste. Some products

grown for the Premium tier may be sold as Standard if they don’t meet visual criteria. Value lines tend to be

differentiated by visual characteristics, for example they are smaller or misshapen compared to Standard lines.

‘Standard’ lines typically have no differentiator on packs while Premium and Value both do.

Organic fruit and vegetables go into Standard, unless they have some kind of premium identifier on it such as

'Tesco Finest Organic Tomatoes' - then it would go into Premium. Other on-pack information including the ‘red

tractor’ logo or any environmental label like carbon amounts are not currently used as quality differentiators.

The three quality tiers presented above have evolved over time. For example it was rare to find as many Value

lines in 2007 as it is today (Figs. 1-3). These lines were introduced by retailers largely in response to the

economic recession during 2008/9 because the Discounters like Aldi and Lidl were increasing their market

share. The increasing quantity of fruit and vegetables sold on promotion is another response adapted by the

major multiples.

The impact of introducing a new quality tier for any product is difficult to predict at the outset. Economists

argue that changing grading specifications will impact the supply and demand functions for the firm that

supplies the product and for the individual who is the final purchaser. For example a change that results in a

different quantity being put into a grade (say a variety of apples being moved from standard to premium lines)

could have several impacts including the following:

There would be an increase in the quantity of premium lines so their price will tend to fall;

Consumers may switch to premium lines raising demand but lowering it for standard lines;

The quantity of standard lines will fall so price will tend to increase;

Standard and premium lines may become closer or less close substitutes for one another or for other

goods affecting their demand;

Customers may switch stores if the costs of selecting premium lines are not outweighed by the benefits

of consumption;

Production and handling costs may change.

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As a result the impact of a grade change on sales will be difficult to predict. One supplier stated that “so flight to

discounters post 2007 led to value lines. These proved popular but no margins so retailers restrict distribution

(e.g. to out of town stores only)”

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ANNEX 2 - Data sources

a) Family Food

Data on purchases and expenditure have been collected by various surveys since 1940. The National Food

Survey was established in July 1940 to provide an assessment of the effectiveness of the national food policy at

the time. The original survey was largely restricted to urban working class households and measured purchases

of food for household stocks. In 1950 the survey was extended to a national sample representing as far as

possible a complete cross section of the Great British population.

In 2001 the National Food Survey (NFS) was merged with the Family Expenditure Survey (FES) to form the

Expenditure and Food Survey (EFS). The Expenditure and Food Survey was an extended Family Expenditure

Survey, extended to incorporate the National Food Survey requirement. This extension is now known as the

Family Food Module.

The Family Food Module provides:

long terms trends with much data going back to 1974 and some data going back as far as 1940;

household food purchases recorded with minimal under-reporting since they are based on information

on attached till receipts ;

an annual sample size sufficient to allow analysis by Government Office Region and demographic

characteristics;

trends in eating out, defined as food and drink not brought into the household. NB. Data in Family Food conforms fully to National Statistics standards

b) Commercial tracking services

Purchasing data can be obtained from companies like Kantar, A C Neilson and Dunnhumby Ltd who run

commercial sales tracking services primarily for retailers and their suppliers.

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ANNEX 3 - Findings from Shopper research

For some time shoppers have indicated a strong desire to increases their fruit and vegetable consumption. IGD

research in 2009 asked shoppers how they thought their diets would change over the next few years. The results

show a marked similarity to those from a year previous, namely that over one-third (36%) of shoppers expected

to be buying more fruit and vegetables in the coming year. This rises to 41% among those with young children

aged 0-15 years. Yet, according to Family Food Survey 2009 purchases have been falling. This decline is not

evident from the Kantar data presented in this report (Figs. 1-5).

The factors that drive product choice at the ‘moment of truth’ have changed considerably over the last five

years. The most dramatic change has been the swing towards price and away from other factors including brand

name. Food content is also a key theme as shoppers are interested in knowing what is in their food both from a

quality and health perspective.

IGD’s tracking of the drivers of product choice indicate that for around nine in ten shoppers’ price is the top

driver when choosing products. This ranking has been unchanged over the last year. The full breakdown of

product drivers is shown in figure below. The second main driver of product choice, promotions, is price related

while quality and performance measures rank third and fourth respectively.

© IGD 2011

Drivers of product choice

IGD ShopperTrack, base: all main shoppers, fieldwork Jun’11

1 Price

2 Promotions

3 Quality or performance

4 Taste and smell

5 Familiarity

6 Healthy option

7 Use by or sell by date

8 Brand

9 Ethical or eco-friendly

10 Ease of using

Most important Top 2 Top 5

IGD’s analysis is supported by other omnibus surveys for example the FSA Omnibus survey (2008) found that

when shopping for food the issues that were considered by consumers when choosing one food product over

another were headed by price (51%), followed by the quality of the food (39%). Other considerations were 68

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brand names (13%), use by/best before dates (12%) and the healthiness of food (12%). Clearly the prominence

of price has risen in consumers’ minds as their disposable income situation has deteriorated.

The data presented above is generic in that it relates to all food products. We have to infer that the same factors

in the same rank order would be identified by shoppers if they were asked the same questions in respect of fresh

fruit and vegetables.

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ANNEX 4 – Seasonal changes in fruit spend and volume consumed

all tiers

4 w

/e_S

pend

(£) i

n Fr

uit &

veg

0400000

500000

600000

700000

800000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

5000

10000

15000

20000

25000

30000

35000

standard

0

400000

600000

800000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

10000

20000

30000

40000

50000 value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

10000

20000

30000

40000

50000

60000

all tiers

4 w

/e_V

olum

e (K

g) in

Fru

it &

veg

0

360000

390000

420000

450000

480000

510000 standard

0

360000

390000

420000

450000

480000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

6000

12000

18000

24000

30000

36000

Figure A4-1: Estimated monthly spend and volume consumed of selected fruit and vegetables in all quality

tiers (premium, standard and value) between 2003 and 2011 in the UK (Source: Kantar)

70

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ANNEX 5 – Seasonal changes in individual selected fruit spend and volume consumed

all tiers

4 w

/e_S

pend

(£) i

n A

pple

s

0

42000

48000

54000

60000

66000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

500

1000

1500

2000

standard

0

40000

45000

50000

55000

60000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

5000

all tiers

4 w

/e_V

olum

e (K

g) in

App

les

0

30000

35000

40000

45000

50000 standard

0

30000

35000

40000

45000

premium

Time (years)

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

300

600

900

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

2000

4000

6000

8000

standard

0

30000

35000

40000

45000

50000

55000all tiers

4 w

/e_S

pend

(£) i

n B

anan

as

030000

35000

40000

45000

50000

55000

60000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

10

20

30

all tiers

4 w

/e_V

olum

e (K

g) in

Ban

anas

0

30000

40000

50000

60000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

2000

4000

6000

8000

10000

standard

0

30000

35000

40000

45000

50000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

5

10

15

20

25

all tiers

4 w

/e_S

pend

(£) i

n St

raw

berr

ies

0

20000

40000

60000

80000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

standard

0

20000

40000

60000

80000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

200

400

600

800

all tiers

4 w

/e_V

olum

e (K

g) in

Str

awbe

rrie

s

0

5000

10000

15000

20000standard

0

5000

10000

15000

20000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

150

300

450

600

all tiers

4 w

/e_S

pend

(£) i

n G

rape

s

020000

30000

40000

50000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

150

300

450

600

standard

020000

30000

40000

50000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

300

600

900

1200

1500

all tiers

4 w

/e_V

olum

e (K

g) in

Gra

pes

0

9000

12000

15000

18000

21000 standard

08000

12000

16000

20000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

50

100

150

200

71

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all tiers

4 w

/e_S

pend

(£) i

n T

omat

oes

0

30000

40000

50000

60000

70000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

03000

6000

9000

12000

standard

020000

30000

40000

50000

60000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

500

1000

1500

2000

all tiers

4 w

/e_V

olum

e (K

g) in

Tom

atoe

s

0

15000

20000

25000

30000 standard

010000

15000

20000

25000

30000

premium

Time (years)

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

Figure A5-1: Estimated monthly spend and volume consumed of individual selected fruit in all quality tiers

(premium, standard and value) between 2003 and 2011 in the UK (Source: Kantar)

72

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ANNEX 6 - Seasonal changes in individual selected vegetables spend and volume consumedall tiers

4 w

/e_S

pend

(£) i

n O

nion

s

0

9000

12000

15000

18000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

100

200

300

standard

0

9000

12000

15000

18000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

all tiers

4 w

/e_V

olum

e (K

g) in

Oni

ons

0

12000

15000

18000

21000 standard

010000

12000

14000

16000

18000

premium

Time (years)

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

40

80

120

all tiers

4 w

/e_S

pend

(£) i

n Po

tato

es

0

50000

60000

70000

80000

90000

100000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

2000

4000

6000

8000

10000

standard

040000

50000

60000

70000

80000

90000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

5000

6000

7000 value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

4000

8000

12000

16000

20000

24000

all tiers

4 w

/e_V

olum

e (K

g) in

Pot

atoe

s0

90000

105000

120000

135000

150000 standard

080000

100000

120000

140000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

2000

4000

6000

8000

10000

12000

all tiers

4 w

/e_S

pend

(£) i

n C

abba

ge

04000

5000

6000

7000

8000

9000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

50

100

150

standard

0

4000

6000

8000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

100

200

300value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

100

200

300

all tiers

4 w

/e_V

olum

e (K

g) in

Cab

bage

04000

5000

6000

7000

8000 standard

04000

5000

6000

7000

8000

premium

Time (years)

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

25

50

75

73

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all tiers

4 w

/e_S

pend

(£) i

n L

ettu

ce

0

10000

15000

20000

25000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

50

100

150

200

250

standard

05000

10000

15000

20000

25000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

500

1000

1500value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

200

400

600

800

all tiers

4 w

/e_V

olum

e (K

g) in

Let

tuce

04000

6000

8000

10000

12000 standard

04000

6000

8000

10000

12000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

20

40

60

80

100

all tiers

4 w

/e_S

pend

(£) i

n C

arro

ts

0

10000

15000

20000

25000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

300

600

900

1200

standard

0

10000

15000

20000

25000

value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

1000

2000

3000

4000

5000 value

01/01

/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

2000

4000

6000

8000

all tiers

4 w

/e_V

olum

e (K

g) in

Car

rots

015000

20000

25000

30000

35000 standard

0

18000

21000

24000

27000

premium

Time (years)01

/01/04

01/01

/05

01/01

/06

01/01

/07

01/01

/08

01/01

/09

01/01

/10

01/01

/11

0

300

600

900

Figure A6-1: Monthly spend and volume consumed of individual selected vegetables in all quality tiers

(premium, standard and value) between 2003 and 2011 in the UK (Source: Kantar)

74

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ANNEX 7-1 – Impact of employment status on purchasing of apples across different quality tiers

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Prem

ium

app

les

purc

hase

(%)

0.0

0.1

0.2

0.3

0.4

0.5

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Stan

dard

app

les

purc

hase

(%)

0

5

10

15

20

25

30

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Valu

e ap

ples

pur

chas

e (%

)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

Figure A7-1.  Average value, standard and premium apples (%) purchased in each employment group category out of the total annual apples purchased.

Wilcoxon non parametric comparison for each pair - EmploymentPremium apples Standard Apples Value Apples

Level - Level p-Value Level - Level p-Value Level - Level p-ValueOver 30 Hrs Full time education <.0001* Over 30 Hrs Full time

education<.0001* Over 30H 100%

Education<.0001*

Retired Full time education <.0001* Retired Full time education

<.0001* Retired 100% Education

<.0001*

Over 30 Hrs Not working <.0001* Over 30 Hrs Not working <.0001* 8-29H 100% Education

<.0001*

Not working Full time education <.0001* Retired Not working <.0001* Not working 100% Education

<.0001*

Over 30 Hrs 8-29 Hrs <.0001* Not working Full time education

<.0001* Over 30H Not working <.0001*

Retired Not working <.0001* Over 30 Hrs 8-29 Hrs <.0001* Over 30H 8-29H <.0001*Retired 8-29 Hrs <.0001* Retired 8-29 Hrs <.0001* Retired Not working <.0001*Under 8 Hrs Full time education <.0001* Unemployed Full time

education<.0001* Retired 8-29H 0.0013*

Unemployed Full time education 0.0005* Under 8 Hrs Full time education

<.0001* Unemployed 100% Education

<.0001*

Not working 8-29 Hrs 0.5592 Unemployed Under 8 Hrs 0.8283 Under 8H 100% Education

<.0001*

Unemployed Under 8 Hrs 0.1929 Retired Over 30 Hrs 0.4591 Unemployed Under 8H 0.8361Retired Over 30 Hrs 0.5763 Not working 8-29 Hrs 0.0313* Not working 8-29H 0.3172Under 8 Hrs Not working <.0001* Unemployed Not working <.0001* Retired Over 30H 0.0326*Under 8 Hrs 8-29 Hrs <.0001* Under 8 Hrs Not working <.0001* Unemployed Not working <.0001*Unemployed Not working <.0001* Unemployed 8-29 Hrs <.0001* Under 8H Not working <.0001*Unemployed 8-29 Hrs <.0001* Under 8 Hrs 8-29 Hrs <.0001* Unemployed 8-29H <.0001*Full time education

8-29 Hrs <.0001* Full time education 8-29 Hrs <.0001* Under 8H 8-29H <.0001*

75

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Wilcoxon non parametric comparison for each pair - EmploymentPremium apples Standard Apples Value Apples

Level - Level p-Value Level - Level p-Value Level - Level p-ValueUnder 8 Hrs Retired <.0001* Unemployed Retired <.0001* Unemployed Retired <.0001*Unemployed Retired <.0001* Under 8 Hrs Retired <.0001* Under 8H Retired <.0001*Under 8 Hrs Over 30 Hrs <.0001* Unemployed Over 30 Hrs <.0001* Unemployed Over 30H <.0001*Unemployed Over 30 Hrs <.0001* Under 8 Hrs Over 30 Hrs <.0001* Under 8H Over 30H <.0001*

* Denotes statistically significant results P=95%

76

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ANNEX 7-2 – Impact of employment status on purchasing of potatoes across different quality tiers

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Prem

ium

pot

atoe

s pu

rcha

se (%

)

0.0

0.2

0.4

0.6

0.8

1.0

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Stan

dard

pot

atoe

s pu

rcha

se (%

)

0

5

10

15

20

25

30

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Valu

e po

tato

es p

urch

ase

(%)

0.0

0.5

1.0

1.5

2.0

2.5

Figure A7-2.  Average value, standard and premium potatoes (%) purchased in each employment group category out of the total annual potatoes purchased.

Wilcoxon non parametric comparison for each pair - EmploymentPremium potatoes Standard potatoes Value potatoes

Level - Level p-Value

Level - Level p-Value Level - Level p-Value

Retired Full time education <.0001* Over 30 Hrs Full time education <.0001* Over 30 Hrs Full time education <.0001*Over 30 Hrs Full time education <.0001* Retired Full time education <.0001* Retired Full time education <.0001*Retired Not working <.0001* Over 30 Hrs Not working <.0001* Over 30 Hrs Not working <.0001*Retired 8-29 Hrs <.0001* Retired Not working <.0001* Not working Full time education <.0001*Over 30 Hrs Not working <.0001* Not working Full time education <.0001* Retired Not working <.0001*Over 30 Hrs 8-29 Hrs <.0001* Over 30 Hrs 8-29 Hrs <.0001* Over 30 Hrs 8-29 Hrs <.0001*Not working Full time education <.0001* Retired 8-29 Hrs <.0001* Retired 8-29 Hrs <.0001*Retired Over 30 Hrs 0.0055* Unemployed Full time education <.0001* Unemployed Full time education <.0001*Under 8 Hrs Full time education <.0001* Under 8 Hrs Full time education <.0001* Under 8 Hrs Full time education <.0001*Unemployed Full time education <.0001* Unemployed Under 8 Hrs 0.4348 Unemployed Under 8 Hrs 0.6586Unemployed Under 8 Hrs 0.0840 Retired Over 30 Hrs 0.3941 Retired Over 30 Hrs 0.6115Not working 8-29 Hrs 0.0052* Not working 8-29 Hrs 0.0817 Not working 8-29 Hrs 0.3594Under 8 Hrs Not working <.0001* Unemployed Not working <.0001* Unemployed Not working <.0001*Unemployed Not working <.0001* Under 8 Hrs Not working <.0001* Under 8 Hrs Not working <.0001*Under 8 Hrs 8-29 Hrs <.0001* Unemployed 8-29 Hrs <.0001* Unemployed 8-29 Hrs <.0001*Unemployed 8-29 Hrs <.0001* Under 8 Hrs 8-29 Hrs <.0001* Under 8 Hrs 8-29 Hrs <.0001*Full time education 8-29 Hrs <.0001* Full time education 8-29 Hrs <.0001* Full time education 8-29 Hrs <.0001*Under 8 Hrs Over 30 Hrs <.0001* Unemployed Retired <.0001* Unemployed Retired <.0001*Unemployed Over 30 Hrs <.0001* Under 8 Hrs Retired <.0001* Under 8 Hrs Retired <.0001*Under 8 Hrs Retired <.0001* Unemployed Over 30 Hrs <.0001* Unemployed Over 30 Hrs <.0001*Unemployed Retired <.0001* Under 8 Hrs Over 30 Hrs <.0001* Under 8 Hrs Over 30 Hrs <.0001*

77

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* Denotes statistically significant results P=95%

ANNEX 7-3 – Impact of employment status on purchasing of strawberries across different quality tiers

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Prem

ium

str

awbe

rrie

s pu

rcha

se (%

)

0.0

0.1

0.2

0.3

0.4

0.5

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not workingSt

anda

rd s

traw

berr

ies

purc

hase

(%)

0

5

10

15

20

25

30

35

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Valu

e st

raw

berr

ies

purc

hase

(%)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

Figure A7-3.  Average value, standard and premium strawberries (%) purchased in each employment group category out of the total annual strawberries purchased.

Wilcoxon non parametric comparison for each pair - EmploymentPremium strawberries Standard strawberries Value strawberries

Level - Level p-Value

Level - Level p-Value Level - Level p-Value

Over 30 Hrs Full time education <.0001* Over 30 Hrs Full time education <.0001* Retired Full time education <.0001*Retired Full time education <.0001* Retired Full time education <.0001* Over 30 Hrs Full time education <.0001*Over 30 Hrs Not working <.0001* Over 30 Hrs Not working <.0001* Not working Full time education <.0001*Retired Not working <.0001* Over 30 Hrs 8-29 Hrs <.0001* Retired Not working <.0001*Over 30 Hrs 8-29 Hrs <.0001* Retired Not working <.0001* Over 30 Hrs Not working <.0001*Retired 8-29 Hrs <.0001* Not working Full time education <.0001* Retired 8-29 Hrs <.0001*Not working Full time education <.0001* Retired 8-29 Hrs <.0001* Over 30 Hrs 8-29 Hrs <.0001*Under 8 Hrs Full time education 0.0337* Unemployed Full time education <.0001* Unemployed Full time education <.0001*Unemployed Full time education 0.1796 Under 8 Hrs Full time education <.0001* Under 8 Hrs Full time education <.0001*Unemployed Under 8 Hrs 0.3644 Unemployed Under 8 Hrs 0.6424 Retired Over 30 Hrs 0.7960Retired Over 30 Hrs 0.5437 Retired Over 30 Hrs 0.5041 Unemployed Under 8 Hrs 0.6036Under 8 Hrs Not working 0.0022* Not working 8-29 Hrs 0.0185* Not working 8-29 Hrs 0.0946Unemployed Not working 0.0001* Unemployed Not working <.0001* Unemployed Not working <.0001*Not working 8-29 Hrs 0.0006* Under 8 Hrs Not working <.0001* Under 8 Hrs Not working <.0001*Under 8 Hrs 8-29 Hrs <.0001* Unemployed 8-29 Hrs <.0001* Unemployed 8-29 Hrs <.0001*Unemployed 8-29 Hrs <.0001* Under 8 Hrs 8-29 Hrs <.0001* Under 8 Hrs 8-29 Hrs <.0001*Full time education 8-29 Hrs <.0001* Full time education 8-29 Hrs <.0001* Full time education 8-29 Hrs <.0001*Under 8 Hrs Retired <.0001* Unemployed Retired <.0001* Unemployed Over 30 Hrs <.0001*Unemployed Retired <.0001* Under 8 Hrs Retired <.0001* Under 8 Hrs Over 30 Hrs <.0001*Under 8 Hrs Over 30 Hrs <.0001* Unemployed Over 30 Hrs <.0001* Unemployed Retired <.0001*

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Wilcoxon non parametric comparison for each pair - EmploymentPremium strawberries Standard strawberries Value strawberries

Level - Level p-Value

Level - Level p-Value Level - Level p-Value

Unemployed Over 30 Hrs <.0001* Under 8 Hrs Over 30 Hrs <.0001* Under 8 Hrs Retired <.0001** Denotes statistically significant results P=95%

ANNEX 8-1 – Impact of socioeconomic grouping on purchasing of apples across different quality tiers

Socio Economic Group

A B C1 C2 D E

Prem

ium

app

les

purc

hase

(%)

0.0

0.1

0.2

0.3

0.4

0.5

Socio Economic Group

A B C1 C2 D E

Stan

dard

app

les

purc

hase

(%)

0

5

10

15

20

25

30

Socio Economic Group

A B C1 C2 D E

Valu

e ap

ples

pur

chas

e (%

)

0.0

0.5

1.0

1.5

2.0

2.5

Figure A8-1.  Average value, standard and premium apples (%) purchased in each socioeconomic grouping category out of the total annual apples purchased.

Wilcoxon non parametric comparison for each pair – Socio economic groupingPremium apples Standard apples Value apples

Level - Level p-Value Level - Level p-Value Level - Level p-ValueC1 A <.0001* C1 A <.0001* C1 A <.0001*B A <.0001* B A <.0001* B A <.0001*C2 A <.0001* C2 A <.0001* C2 A <.0001*E A <.0001* E A <.0001* D A <.0001*D A <.0001* D A <.0001* E A <.0001*C1 B 0.0091* C1 B <.0001* C1 B <.0001*E D 0.1737 E D 0.5804 C2 B 0.6792C2 B 0.0795 C2 B 0.0725 E D 0.3857E C2 0.0172* E C2 <.0001* D C2 0.0321*D C2 0.0002* D C2 <.0001* D B 0.0105*E B <.0001* E B <.0001* E C2 0.0026*C2 C1 <.0001* D B <.0001* E B 0.0006*D B <.0001* C2 C1 <.0001* C2 C1 <.0001*E C1 <.0001* E C1 <.0001* D C1 <.0001*D C1 <.0001* D C1 <.0001* E C1 <.0001*

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* Denotes statistically significant results P=95%

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ANNEX 8-2 – Impact of socioeconomic grouping on purchasing of potatoes across different quality tiers

Socio Economic Group

A B C1 C2 D E

Prem

ium

pot

atoe

s pu

rcha

se (%

)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Socio Economic Group

A B C1 C2 D E

Stan

dard

pot

atoe

s pu

rcha

se (%

)

0

5

10

15

20

25

30

Socio Economic Group

A B C1 C2 D E

Valu

e po

tato

es p

urch

ase

(%)

0.0

0.5

1.0

1.5

2.0

2.5

3.0

3.5

Figure A8-2.  Average value, standard and premium potatoes (%) purchased in each socioeconomic grouping category out of the total annual potatoes purchased.

Wilcoxon non parametric comparison for each pair – Socio economic groupingPremium potatoes Standard potatoes Value potatoes

Level - Level p-Value Level - Level p-Value Level - Level p-ValueC1 A <.0001* C1 A <.0001* C1 A <.0001*B A <.0001* B A <.0001* B A <.0001*C2 A <.0001* C2 A <.0001* C2 A <.0001*D A <.0001* E A <.0001* E A <.0001*E A <.0001* D A <.0001* D A <.0001*C1 B <.0001* C1 B <.0001* C1 B <.0001*E D 0.5177 E D 0.1437 E D 0.3134C2 B 0.0523 C2 B 0.0728 C2 B 0.0668D C2 <.0001* E C2 0.0024* E C2 0.0506E C2 <.0001* D C2 <.0001* D C2 0.0030*D B <.0001* E B <.0001* E B 0.0002*E B <.0001* D B <.0001* D B <.0001*C2 C1 <.0001* C2 C1 <.0001* C2 C1 <.0001*D C1 <.0001* E C1 <.0001* E C1 <.0001*E C1 <.0001* D C1 <.0001* D C1 <.0001*

* Denotes statistically significant results P=95%

81

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ANNEX 8-3 – Impact of socioeconomic grouping on purchasing of strawberries across different quality tiers

Socio Economic Group

A B C1 C2 D E

Prem

ium

str

awbe

rrie

s pu

rcha

se (%

)

0.0

0.1

0.2

0.3

0.4

0.5

Socio Economic Group

A B C1 C2 D E

Stan

dard

str

awbe

rrie

s pu

rcha

se (%

)

0

5

10

15

20

25

30

Socio Economic Group

A B C1 C2 D E

Valu

e st

raw

berr

ies

purc

hase

(%)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Figure A8-3.  Average value, standard and premium strawberries (%) purchased in each socioeconomic grouping category out of the total annual strawberries purchased.

Wilcoxon non parametric comparison for each pair – Socio economic groupingPremium strawberries Standard strawberries Value strawberries

Level - Level p-Value Level - Level p-Value Level - Level p-ValueC1 A <.0001* C1 A <.0001* C1 A <.0001*B A <.0001* B A <.0001* B A <.0001*C2 A <.0001* C2 A <.0001* C2 A <.0001*E A <.0001* E A <.0001* E A <.0001*D A 0.0001* D A <.0001* D A <.0001*C1 B 0.2428 C1 B <.0001* C1 B 0.1790E D 0.2687 E D 0.4586 E D 0.6736E C2 0.0018* C2 B 0.0641 C2 B 0.0630C2 B 0.0081* E C2 <.0001* E C2 0.0377*D C2 <.0001* D C2 <.0001* D C2 0.0122*C2 C1 0.0002* E B <.0001* C2 C1 0.0015*E B <.0001* D B <.0001* E B <.0001*D B <.0001* C2 C1 <.0001* D B <.0001*E C1 <.0001* E C1 <.0001* E C1 <.0001*D C1 <.0001* D C1 <.0001* D C1 <.0001*

* Denotes statistically significant results P=95%

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ANNEX 9-1 – Impact of region on purchasing of apples across different quality tiers

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Prem

ium

app

les

purc

hase

(%)

0.00

0.05

0.10

0.15

0.20

0.25

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Stan

dard

app

les

purc

hase

(%)

0

2

4

6

8

10

12

14

16

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Valu

e ap

ples

pur

chas

e (%

)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Figure A9-1.  Average value, standard and premium apples (%) purchased in each region out of the total annual apples purchased.

Wilcoxon non parametric comparison for each pair – RegionPremium apples Standard apples Value apples

Level - Level p-Value

Level - Level p-Value Level - Level p-Value

London Anglia <.0001* London Anglia <.0001* Midlands Anglia <.0001*London Lancashire <.0001* Midlands Anglia <.0001* London Anglia <.0001*Midlands Anglia 0.0002* London Lancashire <.0001* Yorkshire South West <.0001*Midlands Lancashire 0.0008* Midlands Lancashire <.0001* South North East <.0001*South North East 0.0002* Yorkshire South West <.0001* Yorkshire North East <.0001*Yorkshire South West 0.0002* South North East <.0001* Midlands Lancashire 0.0017*Scotland North East 0.0074* Yorkshire North East <.0001* Wales & West South West <.0001*Yorkshire North East 0.0101* Wales & West South West <.0001* London Lancashire 0.0054*Wales & West South West 0.0075* Scotland North East <.0001* Wales & West North East 0.0005*South Anglia 0.1417 Lancashire Anglia 0.0030* Lancashire Anglia 0.0115*Wales & West North East 0.1330 Wales & West North East 0.0012* South Scotland 0.0139*South Scotland 0.2517 South Scotland 0.0060* Scotland North East 0.0037*South Lancashire 0.2845 South Anglia 0.0093* Yorkshire Scotland 0.0513Yorkshire Wales & West 0.2755 Yorkshire Wales & West 0.0213* South Anglia 0.0925Lancashire Anglia 0.6866 Yorkshire Scotland 0.1264 Yorkshire Wales &

West0.1775

Scotland Anglia 0.7478 Yorkshire Anglia 0.1678 Yorkshire Anglia 0.2447Yorkshire Anglia 0.8307 Scotland Anglia 0.8708 Wales & West Scotland 0.5559Scotland Lancashire 0.9354 Midlands London 0.8987 Midlands London 0.7159Yorkshire Scotland 0.9132 South Lancashire 0.7119 Wales & West Anglia 0.8546Yorkshire Lancashire 0.8496 Wales & West Scotland 0.4486 Yorkshire South 0.6077South West North East 0.2291 Wales & West Anglia 0.3555 South West North East 0.4291Wales & West Anglia 0.3791 Yorkshire South 0.2197 Scotland Anglia 0.4391Wales & West Scotland 0.2308 Yorkshire Lancashire 0.1091 South Lancashire 0.3913

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Wilcoxon non parametric comparison for each pair – RegionPremium apples Standard apples Value apples

Level - Level p-Value

Level - Level p-Value Level - Level p-Value

Wales & West Lancashire 0.1997 South West North East 0.0041* Yorkshire Lancashire 0.1721Yorkshire South 0.2083 Scotland Lancashire 0.0018* Wales & West South 0.0622Midlands London 0.3065 Wales & West South 0.0004* Wales & West Lancashire 0.0068*North East Anglia 0.0179* North East Anglia <.0001* South West Scotland 0.0002*Wales & West South 0.0194* Wales & West Lancashire <.0001* North East Anglia 0.0003*North East Lancashire 0.0058* South West Scotland <.0001* Scotland Lancashire 0.0009*South West Anglia 0.0005* South West Anglia <.0001* South West Anglia <.0001*South Midlands 0.0206* North East Lancashire <.0001* South London 0.0003*South West Scotland 0.0001* South Midlands <.0001* South Midlands <.0001*South West Lancashire 0.0001* South London <.0001* Yorkshire London <.0001*Scotland Midlands 0.0006* South West South <.0001* Yorkshire Midlands <.0001*Yorkshire Midlands 0.0004* South West Lancashire <.0001* South West South <.0001*South London 0.0009* Yorkshire Midlands <.0001* North East Lancashire <.0001*South West South <.0001* Yorkshire London <.0001* Wales & West London <.0001*Wales & West Midlands <.0001* Scotland Midlands <.0001* South West Lancashire <.0001*Scotland London <.0001* Scotland London <.0001* Wales & West Midlands <.0001*Yorkshire London <.0001* Wales & West Midlands <.0001* Scotland London <.0001*North East Midlands <.0001* Wales & West London <.0001* Scotland Midlands <.0001*Wales & West London <.0001* North East Midlands <.0001* North East London <.0001*South West Midlands <.0001* North East London <.0001* North East Midlands <.0001*North East London <.0001* South West Midlands <.0001* South West London <.0001*South West London <.0001* South West London <.0001* South West Midlands <.0001*

* Denotes statistically significant results P=95%

84

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ANNEX 9-2 – Impact of region on purchasing of potatoes across different quality tiers

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Prem

ium

pot

ato

purc

hase

(%)

0.0

0.1

0.2

0.3

0.4

0.5

0.6

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Stan

dard

pot

atoe

s pu

rcha

se (%

)

0

2

4

6

8

10

12

14

16

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Valu

e po

tato

es p

urch

ase

(%)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Figure A9-2.  Average value, standard and premium potatoes (%) purchased in each region out of the total annual potatoes purchased.

Wilcoxon non parametric comparison for each pair – RegionPremium potatoes Standard potatoes Value potatoes

Level - Level p-Value Level - Level p-Value Level - Level p-ValueLondon Anglia <.0001* London Anglia <.0001* London Anglia <.0001*Midlands Anglia <.0001* Midlands Anglia <.0001* Midlands Anglia <.0001*London Lancashire <.0001* Yorkshire South West <.0001* Yorkshire South West <.0001*Midlands Lancashire <.0001* Midlands Lancashire <.0001* South North East <.0001*Yorkshire South West <.0001* London Lancashire <.0001* London Lancashire <.0001*South North East <.0001* South North East <.0001* Yorkshire North East <.0001*Wales & West

South West <.0001* Wales & West

South West <.0001* Midlands Lancashire 0.0002*

Yorkshire North East 0.0004* Yorkshire North East <.0001* Wales & West

South West <.0001*

South Anglia 0.0019* Scotland North East <.0001* Scotland North East 0.0002*Lancashire Anglia 0.0032* Lancashire Anglia 0.0016* Wales &

WestNorth East 0.0004*

Scotland North East 0.0020* Wales & West

North East 0.0009* Lancashire Anglia 0.0032*

South Scotland 0.0187* South Anglia 0.0108* South Anglia 0.0755Wales & West

North East 0.0442* South Scotland 0.0175* South Scotland 0.0933

Yorkshire Wales & West

0.1171 Yorkshire Wales & West 0.0304* Yorkshire Wales & West

0.1030

85

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Wilcoxon non parametric comparison for each pair – RegionPremium potatoes Standard potatoes Value potatoes

Level - Level p-Value Level - Level p-Value Level - Level p-ValueYorkshire Anglia 0.2209 Yorkshire Anglia 0.1879 Yorkshire Anglia 0.1152Scotland Anglia 0.4456 Yorkshire Scotland 0.2518 Yorkshire Scotland 0.1413Yorkshire Scotland 0.6447 Scotland Anglia 0.8743 Scotland Anglia 0.9161South Lancashire 0.8722 Midlands London 0.9702 Wales &

WestAnglia 0.9552

Wales & West

Anglia 0.7332 South Lancashire 0.5537 Wales & West

Scotland 0.8728

Wales & West

Scotland 0.2690 Wales & West

Anglia 0.4008 Yorkshire South 0.8319

Midlands London 0.2566 Wales & West

Scotland 0.3197 Midlands London 0.7694

Yorkshire Lancashire 0.0841 Yorkshire South 0.2112 South West North East 0.1036Yorkshire South 0.0585 Yorkshire Lancashire 0.0651 South Lancashire 0.2489North East Anglia 0.0192* South West North East 0.0009* Yorkshire Lancashire 0.1717South West North East 0.0057* Scotland Lancashire 0.0029* Wales &

WestSouth 0.0667

Scotland Lancashire 0.0287* Wales & West

South 0.0007* Scotland Lancashire 0.0046*

Wales & West

Lancashire 0.0010* North East Anglia <.0001* Wales & West

Lancashire 0.0027*

Wales & West

South 0.0006* Wales & West

Lancashire <.0001* North East Anglia 0.0003*

South West Anglia <.0001* South West Anglia <.0001* South West Anglia <.0001*South West Scotland <.0001* South West Scotland <.0001* South West Scotland <.0001*North East Lancashire <.0001* North East Lancashire <.0001* South Midlands <.0001*South Midlands <.0001* South London <.0001* Yorkshire Midlands <.0001*South London <.0001* South Midlands <.0001* South London <.0001*South West Lancashire <.0001* South West South <.0001* South West South <.0001*Yorkshire Midlands <.0001* Yorkshire London <.0001* North East Lancashire <.0001*South West South <.0001* Yorkshire Midlands <.0001* Yorkshire London <.0001*Scotland Midlands <.0001* South West Lancashire <.0001* South West Lancashire <.0001*Yorkshire London <.0001* Scotland Midlands <.0001* Scotland Midlands <.0001*Wales & West

Midlands <.0001* Scotland London <.0001* Wales & West

Midlands <.0001*

Scotland London <.0001* Wales & West

Midlands <.0001* Scotland London <.0001*

Wales & West

London <.0001* Wales & West

London <.0001* Wales & West

London <.0001*

North East Midlands <.0001* North East Midlands <.0001* North East Midlands <.0001*North East London <.0001* North East London <.0001* North East London <.0001*South West Midlands <.0001* South West Midlands <.0001* South West Midlands <.0001*

* Denotes statistically significant results P=95%

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ANNEX 9-3 – Impact of region on purchasing of strawberries across different quality tiers

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Prem

ium

str

awbe

rrie

s pu

rcha

se (%

)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Stan

dard

str

awbe

rrie

s pu

rcha

se (%

)

0

2

4

6

8

10

12

14

16

18

Region

LondonMidlands

North East Yorkshire

Lancashire SouthScotland

Anglia

Wales & West

South West

Valu

e st

raw

berr

ies

purc

hase

(%)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Figure A9-3.  Average value, standard and premium strawberries (%) purchased in each region out of the total annual strawberries purchased.

Wilcoxon non parametric comparison for each pair – RegionPremium strawberries Standard strawberries Value strawberries

Level - Level p-Value Level - Level p-Value Level - Level p-ValueLondon Anglia <.0001* London Anglia <.0001* London Anglia <.0001*London Lancashire <.0001* Midlands Anglia <.0001* Midlands Anglia <.0001*Midlands Anglia <.0001* London Lancashire <.0001* London Lancashire 0.0001*Midlands Lancashire <.0001* Yorkshire South West <.0001* Midlands Lancashire 0.0002*South North East 0.0002* Midlands Lancashire <.0001* South North East <.0001*South Anglia 0.0164* South North East <.0001* Yorkshire North East <.0001*South Lancashire 0.0237* Yorkshire North East <.0001* Yorkshire South West <.0001*South Scotland 0.0476* Wales &

WestSouth West <.0001* South Scotland 0.0138*

Yorkshire Wales & West

0.0325* Scotland North East <.0001* Lancashire Anglia 0.0189*

Scotland North East 0.0768 Yorkshire Wales & West 0.0098* Scotland North East 0.0116*Yorkshire North East 0.0770 Lancashire Anglia 0.0185* Wales &

WestNorth East 0.0144*

Yorkshire South West 0.1595 South Scotland 0.0204* Yorkshire Wales & West

0.0445*

Scotland Anglia 0.6633 Wales & West

North East 0.0066* South Anglia 0.0592

Yorkshire Anglia 0.6680 South Anglia 0.0276* Yorkshire Scotland 0.0517South West North East 0.7128 Yorkshire Scotland 0.2831 Wales &

WestSouth West 0.0253*

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Wilcoxon non parametric comparison for each pair – RegionPremium strawberries Standard strawberries Value strawberries

Level - Level p-Value Level - Level p-Value Level - Level p-ValueScotland Lancashire 0.7719 Yorkshire Anglia 0.3403 Yorkshire Anglia 0.1704Yorkshire Lancashire 0.7766 Scotland Anglia 0.9016 South West North East 0.8251Lancashire Anglia 0.8860 South Lancashire 0.8790 Wales &

WestScotland 0.9444

Yorkshire Scotland 0.9962 Midlands London 0.4383 Midlands London 0.9586Wales & West

North East 0.6973 Yorkshire South 0.2098 Scotland Anglia 0.5684

Wales & West

South West 0.4489 Wales & West

Scotland 0.1317 South Lancashire 0.6348

South West Anglia 0.3273 Yorkshire Lancashire 0.1602 Yorkshire South 0.6051South West Lancashire 0.2606 Wales &

WestAnglia 0.1025 Wales &

WestAnglia 0.5230

North East Anglia 0.1792 South West North East 0.0055* Yorkshire Lancashire 0.3230South West Scotland 0.1584 Scotland Lancashire 0.0135* South West Scotland 0.0209*North East Lancashire 0.1366 Wales &

WestSouth 0.0001* South West Anglia 0.0043*

Wales & West

Anglia 0.0849 North East Anglia <.0001* Wales & West

South 0.0116*

Wales & West

Lancashire 0.0624 Wales & West

Lancashire <.0001* North East Anglia 0.0022*

Wales & West

Scotland 0.0321* South West Scotland <.0001* Scotland Lancashire 0.0035*

Midlands London 0.2196 South West Anglia <.0001* Wales & West

Lancashire 0.0029*

Yorkshire South 0.0466* North East Lancashire <.0001* South West South <.0001*South Midlands 0.0561 South Midlands <.0001* South West Lancashire <.0001*South West South 0.0009* South London <.0001* North East Lancashire <.0001*Wales & West

South <.0001* Yorkshire Midlands <.0001* South Midlands <.0001*

South London 0.0018* South West South <.0001* South London <.0001*Scotland Midlands 0.0001* South West Lancashire <.0001* Yorkshire Midlands <.0001*Yorkshire Midlands 0.0001* Yorkshire London <.0001* Yorkshire London <.0001*South West Midlands <.0001* Scotland Midlands <.0001* Scotland Midlands <.0001*North East Midlands <.0001* Scotland London <.0001* Wales &

WestMidlands <.0001*

Wales & West

Midlands <.0001* Wales & West

Midlands <.0001* Scotland London <.0001*

Scotland London <.0001* Wales & West

London <.0001* Wales & West

London <.0001*

Yorkshire London <.0001* North East Midlands <.0001* South West Midlands <.0001*South West London <.0001* North East London <.0001* South West London <.0001*North East London <.0001* South West Midlands <.0001* North East Midlands <.0001*Wales & West

London <.0001* South West London <.0001* North East London <.0001*

* Denotes statistically significant results P=95%

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ANNEX 10 – Impact of gender on purchasing of apples, potatoes and strawberries across different quality tiers

Table A10-1. Average value, standard and premium apples, potatoes and strawberries (%) purchased by each sex out of the total annual apples, potatoes and strawberries purchased

Percentage of purchases

Product Quality tier Female Male

Value 75.42 24.58

Apples Standard 76.74 23.26

Premium 78.83 21.17

Value 78.49 21.51

Potatoes Standard 76.25 23.75

Premium 75.41 24.59

Value 79.13 20.87

Strawberries Standard 78.24 21.76

Premium 73.61 26.39

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ANNEX 11-1 – Impact of age on purchasing of apples across different quality tiers

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Prem

ium

app

les

purc

hase

(%)

0.00

0.05

0.10

0.15

0.20

0.25

0.30

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Stan

dard

app

les

purc

hase

(%)

0

2

4

6

8

10

12

14

16

18

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Valu

e ap

ples

pur

chas

e (%

)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Figure A11-1.  Average value, standard and premium apples (%) purchased in each age range out of the total annual apples purchased

Wilcoxon non parametric comparison for each pair – AgePremium apples Standard apples Value apples

Level - Level p-Value Level - Level p-Value Level - Level

p-Value

Under 30

80+ <.0001* Under 30 80+ <.0001* Under 30 80+ <.0001*

40-49 30-39 0.1879 40-49 30-39 0.8358 50-59 40-49 0.317550-59 30-39 0.9448 60-69 50-59 0.6685 50-59 30-39 0.460760-69 30-39 0.8397 50-59 30-39 0.6309 40-49 30-39 0.798860-69 50-59 0.7862 50-59 40-49 0.4920 60-69 40-49 0.676350-59 40-49 0.2113 60-69 30-39 0.3658 60-69 30-39 0.4970Under 30

70-79 0.0702 60-69 40-49 0.2692 70-79 60-69 0.2247

60-69 40-49 0.1293 Under 30 70-79 0.0464* 60-69 50-59 0.155370-79 60-69 0.0248* 70-79 60-69 0.0011* 70-79 40-49 0.102570-79 30-39 0.0144* 70-79 50-59 0.0002* 70-79 30-39 0.058770-79 50-59 0.0118* 70-79 30-39 <.0001* 70-79 50-59 0.0084*Under 30

60-69 <.0001* 70-79 40-49 <.0001* Under 30 70-79 <.0001*

70-79 40-49 0.0002* Under 30 60-69 <.0001* Under 30 60-69 <.0001*Under 30

30-39 <.0001* Under 30 50-59 <.0001* Under 30 40-49 <.0001*

Under 30

50-59 <.0001* Under 30 30-39 <.0001* Under 30 30-39 <.0001*

80+ 70-79 <.0001* Under 30 40-49 <.0001* Under 30 50-59 <.0001*Under 30

40-49 <.0001* 80+ 70-79 <.0001* 80+ 70-79 <.0001*

91

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Wilcoxon non parametric comparison for each pair – AgePremium apples Standard apples Value apples

Level - Level p-Value Level - Level p-Value Level - Level

p-Value

80+ 60-69 <.0001* 80+ 60-69 <.0001* 80+ 60-69 <.0001*80+ 30-39 <.0001* 80+ 50-59 <.0001* 80+ 40-49 <.0001*80+ 50-59 <.0001* 80+ 30-39 <.0001* 80+ 30-39 <.0001*80+ 40-49 <.0001* 80+ 40-49 <.0001* 80+ 50-59 <.0001*

* Denotes statistically significant results P=95%

92

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ANNEX 11-2 – Impact of age on purchasing of potatoes across different quality tiers

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Prem

ium

pot

atoe

s pu

rcha

se (%

)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Stan

dard

pot

ato

purc

hase

(%)

0

2

4

6

8

10

12

14

16

18

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Valu

e po

tato

es p

urch

ase

(%)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

1.8

2.0

Figure A11-2.  Average value, standard and premium potatoes (%) purchased in each age range out of the total annual potatoes purchasedWilcoxon non parametric comparison for each pair – Age

Premium potatoes Standard potatoes Value potatoesLevel - Level p-Value Level - Level p-Value Level -

Levelp-Value

Under 30

80 + <.0001* Under 30 80 + <.0001* Under 30 80+ <.0001*

60-69 30-39 <.0001* 40-49 30-39 0.5958 40-49 30-39 0.430250-59 30-39 0.0019* 50-59 30-39 0.8208 50-59 30-39 0.840660-69 40-49 0.0149* 60-69 30-39 0.8066 60-69 30-39 0.720440-49 30-39 0.0115* 50-59 40-49 0.7642 60-69 50-59 0.573760-69 50-59 0.0643 60-69 50-59 0.6354 50-59 40-49 0.555170-79 30-39 0.2884 60-69 40-49 0.4425 60-69 40-49 0.247650-59 40-49 0.5559 Under 30 70-79 0.0731 Under 30 70-79 0.0179*70-79 40-49 0.1443 70-79 60-69 0.0001* 70-79 60-69 0.0079*70-79 50-59 0.0417* 70-79 30-39 <.0001* 70-79 30-39 0.0027*70-79 60-69 0.0001* 70-79 50-59 <.0001* 70-79 50-59 0.0013*Under 30

30-39 <.0001* 70-79 40-49 <.0001* 70-79 40-49 0.0001*

Under 30

70-79 <.0001* Under 30 60-69 <.0001* Under 30 60-69 <.0001*

Under 30

40-49 <.0001* Under 30 30-39 <.0001* Under 30 30-39 <.0001*

Under 30

50-59 <.0001* Under 30 50-59 <.0001* Under 30 50-59 <.0001*

Under 30

60-69 <.0001* Under 30 40-49 <.0001* Under 30 40-49 <.0001*

80 + 30-39 <.0001* 80 + 70-79 <.0001* 80+ 70-79 <.0001*

93

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Wilcoxon non parametric comparison for each pair – AgePremium potatoes Standard potatoes Value potatoes

Level - Level p-Value Level - Level p-Value Level - Level

p-Value

80 + 70-79 <.0001* 80 + 60-69 <.0001* 80+ 60-69 <.0001*80 + 40-49 <.0001* 80 + 30-39 <.0001* 80+ 30-39 <.0001*80 + 50-59 <.0001* 80 + 50-59 <.0001* 80+ 50-59 <.0001*80 + 60-69 <.0001* 80 + 40-49 <.0001* 80+ 40-49 <.0001*

* Denotes statistically significant results P=95%

94

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ANNEX 11-3 – Impact of age on purchasing of strawberries across different quality tiers

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Prem

ium

str

awbe

rrie

s pu

rcha

se (%

)

0.00

0.05

0.10

0.15

0.20

0.25

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Stan

dard

str

awbe

rrie

s pu

rcha

se (%

)

0

2

4

6

8

10

12

14

16

18

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Valu

e st

raw

berr

ies

purc

hase

(%)

0.0

0.2

0.4

0.6

0.8

1.0

1.2

1.4

Figure A11-3.  Average value, standard and premium strawberries (%) purchased in each age range out of the total annual strawberries purchased

Wilcoxon non parametric comparison for each pair – AgePremium strawberries Standard strawberries Value strawberries

Level - Level p-Value

Level - Level p-Value Level - Level

p-Value

Under 30

80 + <.0001* Under 30 80 + <.0001* Under 30 80 + <.0001*

70-79 40-49 0.2094 60-69 40-49 0.6203 60-69 50-59 0.871050-59 40-49 0.2351 50-59 40-49 0.7720 40-49 30-39 0.975560-69 40-49 0.3316 60-69 50-59 0.8347 60-69 40-49 0.528570-79 30-39 0.6474 60-69 30-39 0.9292 60-69 30-39 0.505450-59 30-39 0.6953 50-59 30-39 0.9023 50-59 40-49 0.427570-79 60-69 0.7750 40-49 30-39 0.6803 50-59 30-39 0.408460-69 30-39 0.8631 Under 30 70-79 0.0530 Under 30 70-79 0.0457*70-79 50-59 0.9481 70-79 40-49 0.0010* 70-79 50-59 0.0449*60-69 50-59 0.8246 70-79 50-59 0.0004* 70-79 60-69 0.0291*40-49 30-39 0.4242 70-79 30-39 0.0002* 70-79 40-49 0.0051*Under 30

40-49 0.0103* 70-79 60-69 0.0002* 70-79 30-39 0.0047*

Under 30

30-39 0.0009* Under 30 40-49 <.0001* Under 30 50-59 <.0001*

Under 30

60-69 0.0005* Under 30 50-59 <.0001* Under 30 60-69 <.0001*

Under 30

50-59 0.0002* Under 30 30-39 <.0001* Under 30 40-49 <.0001*

Under 30

70-79 0.0002* Under 30 60-69 <.0001* Under 30 30-39 <.0001*

80 + 40-49 <.0001* 80 + 70-79 <.0001* 80 + 70-79 <.0001*

95

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Wilcoxon non parametric comparison for each pair – AgePremium strawberries Standard strawberries Value strawberries

Level - Level p-Value

Level - Level p-Value Level - Level

p-Value

80 + 30-39 <.0001* 80 + 40-49 <.0001* 80 + 50-59 <.0001*80 + 60-69 <.0001* 80 + 50-59 <.0001* 80 + 60-69 <.0001*80 + 50-59 <.0001* 80 + 60-69 <.0001* 80 + 40-49 <.0001*80 + 70-79 <.0001* 80 + 30-39 <.0001* 80 + 30-39 <.0001*

* Denotes statistically significant results P=95%

96

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ANNEX 12-1 – Volume of apples purchased per person in households

Social class

A B C1 C2 D E

App

les

purc

hase

d p

er p

erso

n pe

r hou

seho

ld (g

r)

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

App

les

purc

hase

d p

er p

erso

n pe

r hou

seho

ld (g

r)

0

5000

10000

15000

20000

25000

30000

35000

Figure A12-1: Grams of apple purchased per person living in the households per annum according to employment status, socioeconomic grouping, and age. Error bars represent the Standard error of the mean

Wilcoxon non parametric comparison for each pair – Apples purchases per person in householdEmployment group Social Class Age group

Level - Level p-Value Level

- Level p-Value Level - Level p-Value

Over 30 Hrs Not working <.0001* C1 B 0.6026 70-79 40-49 0.0005*Unemployed Retired 0.0051* C1 A 0.9421 70-79 30-39 0.0010*Over 30 Hrs Full time education 0.1537 B A 0.9102 80 and over 40-49 0.0686Unemployed Not working 0.0003* D C2 0.4689 80 and over 30-39 0.0745Over 30 Hrs 8-29 Hrs 0.0335* C2 A 0.6263 60-69 40-49 0.0106*Retired Not working 0.0324* D A 0.4776 60-69 30-39 0.0208*Unemployed 8-29 Hrs 0.0415* C2 B 0.3342 70-79 50-59 0.0547Unemployed Over 30 Hrs 0.2992 E D 0.0722 80 and over 50-59 0.2119Unemployed Under 8 Hrs 0.0001* D B 0.1044 50-59 40-49 0.1023Retired Full time education 0.6051 E A 0.1730 50-59 30-39 0.1750Unemployed Full time education 0.0688 C2 C1 0.1125 80 and over 60-69 0.3275Under 8 Hrs Full time education 0.4757 D C1 0.0318* 70-79 60-69 0.2991Not working Full time education 0.8166 E C2 0.0094* 60-69 50-59 0.3666Under 8 Hrs Not working 0.3215 E B 0.0005* 80 and over 70-79 0.5728Retired 8-29 Hrs 0.2659 E C1 <.0001* 40-49 30-39 0.7044Full time education

8-29 Hrs 0.4313 Under 30 40-49 0.0192*

Not working 8-29 Hrs 0.0057* Under 30 30-39 0.0060*Under 8 Hrs 8-29 Hrs 0.0047* Under 30 80 and over 0.0111*Under 8 Hrs Retired 0.0142* Under 30 50-59 0.0003*

Under 30 60-69 <.0001*Under 30 70-79 <.0001*

* Denotes statistically significant results P=95%

97

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

App

les

purc

hase

d p

er p

erso

n pe

r hou

seho

ld (g

r)

0

5000

10000

15000

20000

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ANNEX 12-2 – Grams of potato purchased per person living in the households per annum according to employment status, socioeconomic grouping, and age

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Pota

toes

pur

chas

ed p

er p

erso

n pe

r hou

seho

ld (g

r)

0

2000

4000

6000

8000

10000

Social class

A B C1 C2 D E

Pota

toes

pur

chas

ed p

er p

erso

n pe

r hou

seho

ld (g

r)

0

10000

20000

30000

40000

50000

60000

70000

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Pota

toes

pur

chas

ed p

er p

erso

n pe

r hou

seho

ld (g

r)

0

20000

40000

60000

80000

100000

Figure A12-2: Grams of potato purchased per person living in the households per annum according to employment status, socioeconomic grouping, and age. Error bars represent the Standard error of the mean

Wilcoxon non parametric comparison for each pair – Potatoes purchases per person in householdEmployment group Social Class Age group

Level - Level p-Value Level

- Level p-Value Level - Level p-Value

Retired 8-29 Hrs <.0001* C2 B 0.0002* 60-69 30-39 <.0001*Retired Full time education 0.0035* C1 B 0.0259* 70-79 30-39 <.0001*Retired Not working <.0001* D B 0.0100* 60-69 40-49 <.0001*Retired Over 30 Hrs <.0001* E B 0.0257* 70-79 40-49 <.0001*Over 30 Hrs Full time education 0.0496* C2 C1 0.0619 50-59 30-39 <.0001*Over 30 Hrs 8-29 Hrs 0.0015* C2 A 0.4484 80 and over 30-39 <.0001*Over 30 Hrs Not working 0.0163* D C1 0.4478 50-59 40-49 <.0001*Not working Full time education 0.2246 D A 0.6418 60-69 50-59 <.0001*Not working 8-29 Hrs 0.5668 E A 0.7080 70-79 50-59 <.0001*Under 8 Hrs Full time education 0.2435 E C1 0.7103 80 and over 40-49 0.0091*Under 8 Hrs 8-29 Hrs 0.6590 C1 A 0.8682 40-49 30-39 0.0002*Under 8 Hrs Not working 0.8972 E D 0.7624 80 and over 50-59 0.6767Unemployed Full time education 0.9011 D C2 0.3897 70-79 60-69 0.6032Unemployed Under 8 Hrs 0.2307 B A 0.6385 80 and over 70-79 0.0485*Unemployed 8-29 Hrs 0.2080 E C2 0.2252 80 and over 60-69 0.0621Unemployed Not working 0.1182 Under 30 30-39 <.0001*Under 8 Hrs Over 30 Hrs 0.2817 Under 30 80 and over <.0001*Full time education

8-29 Hrs 0.2599 Under 30 40-49 <.0001*

Unemployed Over 30 Hrs 0.0043* Under 30 50-59 <.0001*Under 8 Hrs Retired 0.0012* Under 30 70-79 <.0001*Unemployed Retired <.0001* Under 30 60-69 <.0001*

* Denotes statistically significant results P=95%98

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ANNEX 12-3 – Grams of strawberry purchased per person living in the households per annum according to employment status, socioeconomic grouping, and age

Strawberries

Employment group

Over 30 Hrs8-29 Hrs

Under 8 Hrs

UnemployedRetired

Full time education

Not working

Stra

wbe

rrie

s pu

rcha

sed

per

per

son

per h

ouse

hold

(gr)

0

1000

2000

3000

4000

5000

6000

Social class

A B C1 C2 D ESt

raw

berr

ies

purc

hase

d p

er p

erso

n pe

r hou

seho

ld (g

r)0

1000

2000

3000

4000

5000

Age group

Under 30 30-39 40-49 50-59 60-69 70-79 80 and over

Stra

wbe

rrie

s pu

rcha

sed

per

per

son

per h

ouse

hold

(gr)

0

1000

2000

3000

4000

5000

6000

Figure A12-2: Grams of apple purchased per person living in the households per annum according to employment status, socioeconomic grouping, and age. Error bars represent the Standard error of the mean

Wilcoxon non parametric comparison for each pair – Strawberries purchases per person in householdEmployment group Social Class Age group

Level - Level p-Value Level

- Level p-Value Level - Level p-Value

Retired Not working <.0001* E D 0.2009 70-79 30-39 <.0001*Retired Over 30 Hrs <.0001* B A 0.8026 70-79 40-49 <.0001*Retired 8-29 Hrs <.0001* C1 B 0.2595 60-69 30-39 <.0001*Retired Full time education 0.0053* E C2 0.1188 60-69 40-49 <.0001*Over 30 Hrs Not working 0.0006* C1 A 0.5523 80 and over 30-39 0.0001*Over 30 Hrs Full time education 0.3059 C2 A 0.2979 80 and over 40-49 0.0004*Under 8 Hrs Not working 0.5945 C2 C1 0.1229 70-79 50-59 <.0001*Unemployed Not working 0.7047 E A 0.1184 50-59 30-39 <.0001*Under 8 Hrs Full time education 0.7195 C2 B 0.0153* 60-69 50-59 <.0001*Not working Full time education 0.9268 D A 0.0412* 50-59 40-49 0.0003*Over 30 Hrs 8-29 Hrs 0.9452 D C2 0.0028* 80 and over 50-59 0.0282*Unemployed Full time education 0.8694 E C1 0.0019* 70-79 60-69 0.0961Unemployed Under 8 Hrs 0.9556 E B 0.0002* 80 and over 60-69 0.6103Under 8 Hrs 8-29 Hrs 0.3023 D B <.0001* 40-49 30-39 0.6853Unemployed 8-29 Hrs 0.1859 D C1 <.0001* 80 and over 70-79 0.8932Full time education

8-29 Hrs 0.3419 Under 30 30-39 0.0024*

Under 8 Hrs Over 30 Hrs 0.2631 Under 30 40-49 0.0010*Unemployed Over 30 Hrs 0.1445 Under 30 80 and over <.0001*Not working 8-29 Hrs 0.0032* Under 30 50-59 <.0001*Under 8 Hrs Retired <.0001* Under 30 60-69 <.0001*

99

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Wilcoxon non parametric comparison for each pair – Strawberries purchases per person in householdEmployment group Social Class Age group

Level - Level p-Value Level

- Level p-Value Level - Level p-Value

Unemployed Retired <.0001* Under 30 70-79 <.0001** Denotes statistically significant results P=95%

100

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Notes

1 There are very few branded fruit and vegetable products in comparison to other food categories. 2 These estimates are from Horizons and IGD respectively.3 This classification is used by Horizons4 It is possible for households to purchase their fruit and vegetables directly from ‘cash and carry’ wholesalers. There are no data to quantify this route to market but it is thought to be very small.

101