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[Environment] from [guardian.co.uk]

[Consumer Affairs]
Recession sees shoppers switch from green to budget products
Study finds even ethically-conscious customers swapping to cheaper brands for weekly grocery shop
Rebecca Smithers, consumer affairs correspondent
The Guardian, Monday 6 July 2009
Article history

British consumers who in the past were willing to pay a premium for organic, Fairtrade and eco-friendly goods are now turning their backs on buying ethical in favour of cheaper shopping bills, according to a survey.

It is a trend that is likely to be long-term, according to research, which indicated that three in every five shoppers (69%) say they plan to continue cutting back on organic food after the downturn. Two-thirds (61%) claim they will seek to pay less for ethically sourced foods, such as Fairtrade, when the downturn ends.

The biggest single retail loser appears to be premium brands, particularly own-label high-end products such as Tesco's Finest and Sainsbury's Taste the Difference. Three-quarters (73%) of people stated they would seek to pay less for premium labelled supermarket goods in the future.

The survey was carried out by specialist marketing consultancy Cohn & Wolfe, and its findings are backed up by the latest shopping statistics in the UK, which show that organic food sales in 2008 slowed after more than a decade of sustained growth.

Geoff Beattie, head of Cohn & Wolfe Global Practices, said: "The recession has shaken off the moral veneer of consumers, and a more prudent shopper is emerging. Consumers are now turning away from ethical products, especially higher-priced green goods like organic in favour of a cold, hard bargain."

But he added: "Whilst the savvy consumer is saving money where they can, shoppers will still aspire to stay true to their values."The challenge for retailers and manufacturers is to develop more affordable ethical and green goods to build consumer trust, but without hurting profit margins."

The study also revealed new shopper loyalties are emerging, as food manufacturers and retailers engage in a value contest. In the recession, half of shoppers (46%) feel more positive towards using discount grocery stores.

As a result, two in five shoppers (39%) plan to shop at discount supermarkets more often, and over a third (36%) will continue to substitute well-known brand labels in their shopping baskets with economy ranges.

James Ruane, head of Cohn & Wolfe Food & Drink, said: "With discounters Aldi and Lidl both delivering double-digit growth of 13.6% and 12.3% respectively over the past quarter, this spells good news for low-cost retailers and an acceptance that budget shopping will continue to play an important part in consumer's shopping habits.

However, people still want fresh local produce, seeing it as a hallmark of quality. The survey found close to three in five shoppers (57%) are prepared to pay more for locally produced food as well as fresh fruit, and vegetables and nearly three quarters (71%) will stay loyal to some brands, especially store cupboard essentials like teas, coffees, and cereals.

Sheila Dillon of BBC Radio 4's The Food Programme said: "This interesting research shows that after decades of the one-stop weekly visit to the supermarket, people are learning to shop again: getting their food from a mix of sources. "They still want quality but are sharpening their skills on how you get it. The research also shows how deep the commitment now is in Britain to local food and that provides a real challenge to the organic movement."