DAWN FARMS TOP 9 | ISSUE 27 | 2018

GLOBAL UPDATE ON CONSUMER, MARKET AND MENU INSIGHTS. 

1. SUBWAY DELIVERS

Subway UK has teamed up with Just Eat for a delivery trial, operating in 31 stores in London, Leeds and Manchester. Subway’s move to delivery follows in the footsteps of Burger King and KFC, who joined Just Eat last year. Just Eat’s sales grew by 45% in 2017 to £546mn, half of which stems from the crowded but thriving UK takeaway scene. In November Just Eat bought rival UK takeaway group Hungryhouse in reaction to growing competition from newer rivals such as Deliveroo, UberEats and Amazon. The weekday lunchtime occasion is a growth segment for the aggregators, thus making Subway an attractive mainstream partner – while making Subway’s offer available anytime, anywhere.

2. COCA-COLA GOES DIGITAL

Coca-Cola, Albert Heijn and Samsung have joined forces to test a new innovative touch screen shopping solution, currently piloting in an Albert Heijn store in Hoofddorp, Netherlands. The rationale behind the system is that customers can select any product from Coca-Cola and send them to their home address free of charge via the Albert Heijn mobile app. This move comes as part of Coca-Cola’s “Store of the Future” programme in the Netherlands.

3. GENERATIONAL SHOCKER 

Globally, Gen Z consumers choose ‘eating out’ as their number one thing to do, way ahead of partying coming in at number 6. A UniDays/Ad Age Studio 30 survey of 11,500 consumers aged 17-23 years in the UK, US, Australia and New Zealand estimates they have $143 billion spending power in the US alone, and it’s clear that they like to check out new ‘personalised’ experiences to tick off their bucket list. To find out what restaurants need to know to target this group, click here >>

4. TESCO CARREFOUR ALLIANCE

Tesco and Carrefour have agreed to a 3-year, strategic purchasing alliance to combat increased competition in the marketplace. Both groups anticipate that the deal will help negotiate improved deals from multinational suppliers, and in turn improve product choice and quality at lower prices for consumers. This initial deal covers own-brand lines and selected other goods, reflecting the rising threat of discounters.  Another motivating factor is the proposed Sainsbury’s-Asda merger which will potentially see Tesco lose its UK number 1 ranking. Combined Tesco and Carrefour have an estimated 8% share of western European grocery - larger than either Lidl/Aldi, however they have far fewer product lines giving them greater buying power. Listen to a related podcast by clicking here >>

5. BRITISH RETAIL FEARS HARD BREXIT

According to the BRC, the British government and the EU must avoid a hard Brexit to prevent higher prices, retailers closing and slowing down trade of food. The British Retail Consortium anticipates that over 12,500 small retailers will be at risk of bankruptcy, while EU businesses could lose £21 billion in British agri-food exports. Half of Britain’s food is imported, and 60% of that is from the EU. A no-deal Brexit will create delays, waste and failed deliveries as a result of increased border controls and regulatory checks. It is expected that food will rot at ports, reducing consumer choice and product quality. Trade barriers could cause food and drink prices to increase by one third.

6. HAPPY MUMS GO TO McDONALD’S

McDonald's has introduced a grilled chicken wrap to its iconic Happy Meal menu across all its 1,361 sites in the UK/Ireland. The new wrap is McDonald's latest healthy eating initiative following 6 months of collaboration with parenting network Mumsnet. Some 78% of Mumsnet users surveyed wanted grilled chicken on the Happy Meal menu. Also this month, McDonald’s added a fiery Buffalo Chicken Wrap to its menu, inviting consumers to “go bolder than you ever have before”.

7. SPREAD THE ‘MODNESS’

‘Superfast pizza made on demand’ - MOD pizza is opening a new store in Romford next week, giving away free pizza to its first 50 customers. This will be MOD’s 7th restaurant in the UK, a small number compared to its 300+ locations in the US where it is ranked #1 as the fastest growing restaurant chain in America, according to Nation’s Restaurant News. In 2017 alone, MOD’s sales grew 80% and opened 110 new locations. Understand the MOD business model by clicking here >>

8. CULINARY CONGRESS INSIGHTS

Last month, thefoodpeople held its first ever Culinary Congress where 16 chefs came together to share their passion for innovation. Some key talking points included the idea of ‘Boundless Cuisines’  - freedom to blend ingredients from various cuisines and countries. ‘Finding Foundations’ explored how innovative cuisines are rooted in culture, open-mindedness and travel. Another was ‘Eye-First Food’, highlighting the power of colour, followed by ‘Low and Slow to allow retention of flavour and structure. To find out more culinary insights from the foodpeople, click here >>

9. SUMMER FANCY FOOD SHOW

The Summer Fancy Food Show has just come to a close in New York, but not before featuring some interesting products like artichoke pesto, alcohol-infused pickles, fig salami, cauliflower pretzels and sparkling coconut water. For some of the key speciality food trends, click here >>