Supermarkets. Changing market share. and influence in consumption & trade. Nick Ruello. Cairns

Transcription

1 Supermarkets. Changing market share and influence in consumption & trade Nick Ruello Cairns

2 Overview Some observations on retail sale & consumption, Supers &F mongers Info from various work ; some FRDC R &D, & personal experience Coles & WW Strong renovation, Innovation & Promotion; others chains following Extended shelf life MAP & aqua produce CSF; Supers sales up, Fishmongers declining fortune Need to consider ramifications.

3 Today s Retail Scene Coles, WW, IGA, Aldi, Foodworks etc >2000 outlets Chilled, frozen and MAP seafood all around country Shop nos, product range, quality, volumes & service. Stats few, sales: some new outlets X 5 Big buyers 1000 t, influence, sellers want biz but littlesecurity: zero to hero then next big thing With cans, most no. of purchases;customers are varied Many consumers believe specialist has best seafood But ~ 400 F mongers, declining nos, share & influence.

4 Major products (by volume) Supers seafood range mostly farmed, frozen, imports Fresh Aust: regional, logistics & price constraints Frozens: proprietary & house brands; raw, processed rte Winners: Tas. Salmon fresh & MAP* and Vnam basa Cooked farmed Vannamei and Aust tiger prawns frozen Raw Aust banana and king prawns frozen Supers range covers different market price segments F mongers : prefer fresh local/aust product; less imports.

5 Independent Fishmongers More kg and $ per outlet than supers, for now Ageing, mostly foreign born/migrant origins Little innovation or new investment in business Some bought an expensive job/ NPO Imports easier, more profitable for them + supers But most happy to pay for fresh Australian/local seafood, despite supply/price constraints No support from producers despite a key role at consumer interface.

6 Coles vsw worths Price War Great for consumers ½ price specials and discount prices shifting volume Short direct supply chains give supers good margins But collateral damage : sales of non-special items, Fishmongers struggle with high prices Do you want to lose these pro-aust buyers? How s this raising prices for Aust. fishers & farmers??

7 Seafood Promotion Little spent on generic promo in Aust; sporadic Supers main players, with some supplier input Weekly catalogues, weekly newspaper specials Coles MasterChef and collateral material helped, salmon farmers couldn t keep up supply; Ling Widespread benefits from free s food exposure: Consumers, many retailers, w salers, producers, importers Loss leaders: IGA Adelaide basa $3.89/kg!!

8 Some Coles&W worthspromo print material inclmasterchef TV collateral material

9 Sustainable Seafood Aust industry & Governments unprepared & surprised by Coles and Wworths initiative launched same day SS : global defensive response to Greenpeace etc In Aust too, not lead by consumer demand Industry in a defensive/catch up position, working hard Certification, standards etc complex, confusing most small biz & people; producer s bearing cost, so far But beneficial over long term ( social license ).

10 Labelling Supers: diligent with COOL and Std Fish Names Fishmongers not as diligent Loose use of word fresh ; thawed not common Freshly cooked prawns, what s this mean? Consumer confusion & uncertainty about goods (esp. prawns) on offer, taste inconsistent Supers have money back guarantee & trust; Fishmongers not so much? Labelling & taste inconsistency sales impediment.

11 Labelling Better info on prawns soon??

12 What s Ahead Supers: convenience, quality guarantees, value; sales & total kg sales will exceed F mongers by ~ 2020 Supply constraint on supers biz growth? Distinct co. culture, not really pro-seafood, not perfect. Need support with branded/australian product Their weaknesses are tomorrow s opportunities Fishmongers pay more for fresh Aust seafood, They counter supers; not as vulnerable to NGO/media Aust producers need to support supers AND f mongers to ensure retail diversity and consumers choice.

13 Support & protect your product/brand in supermarkets, and elsewhere.