Premium and ethical food ranges growing, says Tesco

Friday, 10 July 2009

Shoppers are starting to return to premium and ethical food ranges, according to the latest sales data from Tesco.

The supermarket said the data was "one of the clearest signals yet" that consumers were feeling more confident about their own household finances.

Tesco said its Finest, organics and Fairtrade ranges were all returning to growth.

The news is said to be contrary to a survey earlier this week suggesting consumers were continuing to shun the most upmarket ranges.

In order to boost sales of top line, organic and Fairtrade foods ,Tesco has had range reviews leading to "better offers and subsequently increased sales".

The strategy has already shown positive signs with demand for:

• Fairtrade beer, wine and spirits in the last year rising by more than 50% and Fairtrade produce up by 15%.

• Finest range foods in the convenience, and fish, meat and poultry categories - which make up 50% of all Finest purchases - are now back in growth with sales up 3% in each category.

• Organic produce up 52% since November.

Tesco brands senior marketing manager Stephanie Stewart said: "While it's too early to say that we are seeing the green shoots of recovery from the recession, rising demand for our ethical and premium food brands are offering optimistic signs.

"While much has been made of us introducing our successful Discounter range last year, we have not taken our eye off our other brands and ethical ranges and through improved offers we are now starting to see sales rise again.

"One good example is our Finest meal deal for two, offering a main dish, a side dish, dessert and a bottle of wine for £9, which has done extremely well since being launched in November."

Source: Tesco

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