The consumer market environment for horticulture growers during COVID-19

Question 1

Recently there has been information identifying an increase in the consumer moving towards shopping at local independent grocers. How is Nielsen responding to this move and attaining data from these retailers who are small and not necessarily part of the current pool of incoming data? This is becoming more important as growers need to understand more about this with the shutting down of food service channels demand.

Response: Through the Nielsen Homescan Panel, all fresh produce that is consumed in the home will have a recorded retail place of purchase. This included greengrocers and independent supermarkets and is captured in the ‘share of trade splits’. See www.harvesttohome.net.au for more information.

Question 2

Can you see from the data if the 'shop local at four or five places' is continuing into April/May now that are back to normal?

Response: Data released for April has shown that major supermarket share of trade continues to be lower. See the Covid-19 Fresh Produce Update April by Nielsen for more information.

Question 3

Do you see an opportunity for different categories to work together with a combined marketing approach such papaya and mango as 'tropical twins'?

Response: Hort Innovation has developed an initiative called The Good Mood Food to support the horticulture sector through the effects of recent times, which are being felt in consumer spending and purchasing behaviour. The bold new marketing campaign is driving demand for consumptiion of fruit, vegetables and nuts more often, with the message that when you eat better, you feel better.

The initial activity is expected to run from May until the end of September this year. However there is also potential for The Good Mood Food to be extended to continue to educate and inspire Australians of all ages about how fruit, vegetables and nuts can be used to promote health and wellbeing. Here, the campaign would be able to focus on seasonality or new ‘moments’ where consumers are looking for increased health and wellbeing or eating options. There is also the opportunity for individual industry marketing programs, which are funded through industry marketing levies, to tap into the overarching themes and messages of The Good Mood Food.

Read more on the Good Mood Food initiative here.

Question 4

Is the new consumer behaviour towards purchasing ‘more for a longer time’ swaying behaviour trends to bulk purchases rather than loose options?

Response: ‘Hard vegetables’ including, onion, and pumpkin have driven the majority of the volume increase. The average weight of purchase for vegetables has increased from 1.6kg per occasion to 1.8kg per occasion from January to April. There is no discernible trend evident for fruit. See the Covid-19 Fresh Produce Update April by Nielsen for more information.

Question 5

How do you think growers could work with health promotion campaigners who have the same objective of people eating more fruit and vegetables and nuts?

Response: Hort Innovation’s The Good Mood Food initiative is delivering an immediate and enduring behaviour-change message to motivate more Australians to eat more fruit, vegetables and nuts, both during and beyond the COVID-19 pandemic. It’s a direct-to-consumer marketing initiative playing out across the country using a range of channels, including TV, newspapers, radio, online, social media and retail partnerships.

The Good Mood Food’s central message is that fresh Aussie fruit, vegetables and nuts are natural mood boosters. The campaign is encouraging people to “eat on the bright side” – eating a wide variety of fresh and vibrant horticultural produce to look after themselves mentally, as well as physically.

Read more on the Good Mood Food initiative here.

Question 6

Is there any research currently being undertaken on price elasticity of demand (own price, cross-price) within fruit and vegetable commodities? I believe in order to make any decent forecasting in consumer demand, we need to model it considering those economic factors (prices), too.

Response: Price elasticity of demand research is currently being considered by some industries, and isolated examples can be found in overseas settings.

Question 7

Has there been an increase in the preferred size of pre-packaged foods?

Response: A wide range of pre-packed foods to address the needs of the different household sizes continues to remain relevant.

Question 8

If some consumers are under financial pressure do you think smaller sizes might be useful?

Response: As above, a wide range of pre-packed foods to address the needs of the different household sizes continues to remain relevant.

Question 9

I am somewhat concerned the amount of imported product that we are competing against during this difficult time. What has happened to the ‘Australian Made’ campaign?

Response: Hort Innovation’s The Good Mood Food initiative is delivering an immediate and enduring behaviour-change message driving demand with Australians to eat more fruit, vegetables and nuts, both during and beyond the COVID-19 pandemic. It’s a direct-to-consumer marketing initiative playing out across the country using a range of channels, including TV, newspapers, radio, online, social media and retail partnerships.

The Good Mood Food’s central message is that fresh Aussie fruit, vegetables and nuts are natural mood boosters. The campaign is encouraging people to “eat on the bright side” – eating a wide variety of fresh and vibrant horticultural produce to look after themselves mentally, as well as physically.

Read more on the Good Mood Food initiative here.