Several people have remarked recently that when foods are offered at reduced prices sales have fallen. It is suggested that this may be because consumers are suspicious about quality if the products can be sold so cheaply.
There is an increasing preparedness on the part of consumers to pay more for recognisable quality. And they seem to be becoming more selective in their choices.
Moreover, the think tank IGD reported earlier this year that 48% of shoppers cook from scratch, using a combination of raw and prepared foods, compared with 30% in 2004.
Despite this, 'commoditisation' of staple foods, such as bacon, cheese and milk, to name but a few, continues apace. Too many promotions of the buy one, get one free (BOGOF) kind undermine these markets.
If the price of a high-quality food screams 'cheap and nasty' no one is benefiting, least of all the consumer who is being misled. It is sad that there are times when suppliers of certain staple foods have to rely upon promotions such as BOGOF to shift volumes.
Pile it high, sell it cheap, smacks of sub-standard and consumers who have become more interested in food may avoid cheap products which, though cheap in price, are not cheap in quality. This is not intended to advocate inflation of prices but rather to call for fair prices that reflect true value. There is a need for greater recognition of inherent quality on the part of large buyers when they require suppliers to operate within a given price.
The Grocer's index of the top 150 manufacturers shows that the operating margins of suppliers of animal products - meat or dairy - tended to fall at the bottom of the range. There is little scope for too many more BOGOFs.
Clare Cheney is director general of the Provision Trade Federation