“Investing in the counter”

30 April 2015, 08:35 AM
  • There continues to be more upheaval in the grocery trade than there has been for the past 25 years, and when that happens opportunity comes knocking. So wherever one sits in the chain of supply in speciality cheese, the question of how to seize that opportunity is posed

As volumes in most grocery sectors stagnate, and the cry goes up, price is everything and promotion is rolled out and leveraged to the max. It is not, and has never been, the sustainable tactic for artisan and speciality cheese, especially those of true artisan merit.

Deli promotions are hard to convey to the customer in major retailer outlets as 25% off a high unit kilo cost per piece does not compute into an attractive price (such as £1.99). But in any event, I have never subscribed to the belief that the aspiring customer wants that.

Product tasting, knowledge, provenance and ease of shop stand far above the issue of cost per kilo in keeping the shopper engaged. The independent retailer has long had a sustainable advantage in this field, whether in delis or farmers markets, and the customer has responded. The irony being that the independent – and I include suppliers in this – has not applied a marketing/promotion approach to selling, which is not appropriate in every case, but surely can be applied more often than many think.

The single most successful way of introducing a shopper to anything premium is, and always has been, tasting the product. Why would anyone spend £20 on a kilo just because its 10-20-30% cheaper? If the shopper’s logic is stay with what you know. After all, there are promotions galore and another one will be along any minute.

In this the cheesemaker needs to invest, and invest now, whilst there is an opportunity. On this matter there are two clear camps. Clearly those that provide their own milk for cheesemaking have some reluctance to undermine their own income, and a number will not appear to do this, though its surely necessary at this moment in the economic cycle to invest for a stronger future.

Those that buy in milk, frankly, have the best opportunity they are likely to have to advance their brand franchise: to utilise the lower milk costs to grow their brand. Not by reducing price, but by investing in product to sample, and if that were to be provided cubed and ready then the convenience will both help the retailer and ensure its use delivers the reward the cost requires. The shopper likes new, they like a new taste sensations, so promoting vigorously now is the right moment

The generational change in the shopper is happening, and very fast. The modern shopper has less time, but in many cases more disposable income. Why else would people buy online?

Even food is not exempt from this rush to complete, a need to grab and go at the counter. There are many good examples of pre-cut cheese pieces on display in garden centres and other deli outlets with a high flow of customers at peak times of the week. In many instances the glass counter can be a barrier and many younger shoppers have little willingness to wait, and since these are the shoppers of the future they need to be accommodated or could potentially be lost.

In times of supreme challenge there is a chance to adjust the approach to maximise an opportunity, which sadly the dairy farmer is funding, and build a sustainable better volume for the future which will ultimately reward everyone in the chain. More tasting funded by the makers with samples that advance their brand, more preparation to meet changing behaviour, and the trial of a couple of new varieties to freshen up the selection.

Many fast lane retailers will stay with promotion overload and remain with shallow foundations in artisan British cheese, whilst the independents can steadily proceed to be the destination of choice for variety, for knowledge, for a taste sensation!

more like this
  • “Cheese a la carte”

    23 March 2015
    It’s true to say that few of the past 40 dairy years have been as turbulent as this past one or two, most especially in the specialist area of the cheese trade, whether as a cheese maker, or cheese seller