Guide to Local Sourcing
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Grange Lane, Letchmore Heath, Watford, WD25 8GD Tel: 01923 857141 Fax: 01923 852531 www.igd.com www.careerchoices.org.uk SOURCING Business in the Community is a unique movement of companies across the UK committed to continually improving their positive impact on society, with a core membership of 700 companies, including 70% of the FTSE 100. Website: www.bitc.org.uk Email: [email protected] GROWING RURAL BUSINESS Registered Office: 137 Shepherdess Walk, London, N1 7RQ Registered Charity Number: 297716 Company Limited by Guarantee Number: 1619253 Printed on Chromomat Club, a paper stock which is acid-free, biodegradable and recyclable. The wood pulp from which it is produced comes from sustainable sources and is bleached without the use of chlorine. ISBN 1 898044 97 X 2 FOREWORD This guide is an important and timely contribution to the debate about the future role of our rural economy. It is in everyone’s interest CO to explore what could and should be done to help revive the UK’s NTE rural areas. NT Many of our customers are demanding locally sourced products S that preserve regional tastes and support rural food and agricultural businesses. As a collaborative effort between suppliers, manufacturers, independent and multiple retailers, this guide clearly illustrates how all parts of the food chain can help food production in the UK remain economically viable and beneficial Introduction 4 31 Jacklin & Son strawberries to the rural economy. Where to Start? 9 32 Letheringsett Watermill F Advice to Food Buyers Müller Dairy (UK) Ltd O 11 33 The Aberfoyle Butcher 13 34 Natures Way Foods R and McDonald’s EWORD Ansteys of Worcester 14 and Waitrose 36 Nestlé and Dairy Farmers The guide harnesses the enthusiasm of companies and Asda and Geldard 37 Rachel’s Organic Dairy individuals involved in local sourcing initiatives. It provides practical business advice, key contacts 16 Egg Farm and sources of information and most importantly, lessons learned by a variety of rural enterprises. 39 Rannoch Smokery Bartons Pickles 17 It also highlights the questions which suppliers need to ask themselves at the outset. I am pleased 40 Safeway and Welsh to say that it will be distributed widely across the industry and to small businesses. Birds Eye Wall’s Sustainable 18 Mountain Lamb Agriculture Project 42 Sainsbury’s, Simon Howie We should all think rural – every sector has a role to play and we all have a lot to learn. As Booker and Scottish 20 Butchers and Stapleton Farm Chairman of Business in the Community I am delighted with the valuable insight this publication Black Face Lamb 44 Samworth Brothers and Ginsters provides into how local suppliers can work in partnership with all those in the food chain. Branston Potatoes and Tesco 22 45 Somerfield and Cotswold Finally I would like to thank IGD for putting the publication together, in conjunction with all Co-operative Group 24 Sheep Group and Local Bakeries the companies, organisations and individuals which you will read about. 46 Southover Food Company Duchy Originals and 25 Stoke Farm Orchards Denhay Farms 47 Taste of England and NFU Farmers’ Markets 27 48 Wilson’s Country Potatoes Food From Britain 28 50 SIR PETER DAVIS 51 Useful Contacts CHAIRMAN OF BUSINESS IN THE COMMUNITY Highwood Products and 30 GROUP CHIEF EXECUTIVE, J SAINSBURY PLC Highwood Brewery 56 Acknowledgements CONTENTS 3 4 INTRODUCTION n July 2001, Business in the Community In particular this guide aims to: What is Local Sourcing? Why is Local Sourcing Important? (BITC) launched its new campaign: ● We do not know of a definition of ‘local’ that We are all eating a greater variety of foods Rural Action. This focuses on Demonstrate how small food producers has universal acceptance. It ranges from obtaining throughout the year, from all round the world. I are meeting consumer needs practical measures to encourage products or ingredients for retail or manufacture from The way we are eating is changing and more of business involvement in three ● Identify the key routes to market within the United Kingdom rather than globally, to our food is prepared and eaten outside of the key areas: building enterprising which local food producers retailing or manufacturing products sourced from home. These trends are driven by a range of factors communities, strengthening market are adopting towns and supporting local sourcing. a defined locality. We must also remember that in which changing lifestyles and the demand for ● Highlight key learning points production of ‘local’ foods is not just the preserve convenience play major roles. and advice of small companies. ● Signpost useful contacts and advisory services NT dedicated to the support of small food producers Contributing to the latter initiative, IGD was asked OD UCTION to identify best practice examples of local sourcing Iinitiatives. Those contained in this report show The United Kingdom, However, local foods may also have identifying The UK food and grocery market is extremely how companies, small and large, and from all parts like many other nations, has a richness and diversity characteristics other than a degree of proximity to the competitive and all companies focus on satisfying, of the food chain can work together to source Rof food which should find its rightful place in the customer. Across the UK there are crops and breeds of and exceeding, customers’ desires. Sitting alongside locally. We are extremely grateful to Sainsbury’s, market both at home and abroad. These case studies animals more suited to one region than another, different this demand for convenience, is a growing desire HSBC & NFU for sponsoring the research, illustrate how this can be achieved. Whilst this guide cooking methods and associated dishes that have been for authenticity of foods and a wish to support production and distribution of this report. does not provide all the answers for instant success, passed down through the generations and varied methods the domestic market. Nevertheless, consumers we hope it will inspire more companies to seize This guide will primarily help the increasing number of processing and storage, all of which contribute can be fickle; British, or local food the initiative. of rural, small businesses who are producing local to the mix of food we now have. is not always their automatic choice. food and drink products. It also demonstrates Products must compete on price and how local sourcing, conducted in the right way, In gathering the case studies for this guide quality first. This guide shows how can be sound business practice for all involved. Joanne Denney OBE we have not adopted any rigid definitions many companies are achieving this Chief Executive, IGD of local. Instead, we have deliberately balance and benefiting from this. cast our net wide to capture the diversity of activity that makes up local sourcing. INTRODUCTION 5 6 INTRODUCTION NT OD UCTION There was a clear consensus How Big is theI Market for Local Food? ● A growing number of initiatives R among the retailers that the market such as the Countryside Agency’s At present there are no reliable estimates of the “Eat the View” that aim to help for local food will grow, offering new market size for local foods. The evidence suggests people make links between the products opportunities for suppliers of the right product. they buy, the countryside and their impact that it is limited but growing. This growth is being on the environment. The main drivers of growth were identified as: driven by the following factors; ● market awareness of new products ● New local products are emerging onto ● availability of innovative products from either ● suppliers’ understanding and adoption of bar ● Multiple retailers are increasingly sourcing local the market driven by the growth in a specific geographical area or with particular code standards foods in response to consumer demand. micro-businesses. quality dimensions ● Routes to market are expanding as new outlets ● consumer desire to support the local economy The Useful Contacts section on page 51 will provide like farmers’ markets and internet sales increase in popularity ● consumer desire for traceability a good starting point for those companies tackling some of these issues. This lists organisations which ● Consumers are seeking more assurance ● popularity of food programmes and the about their food and often perceive greater rise of the celebrity chef can help answer many of the questions and solve some transparency of production methods in foods ● media attention of the challenges which local producers may encounter. that they consider local or traditional. ● consumer reaction to food scares. ● Consumers are increasingly seeking greater These factors are by no means insurmountable. diversity and specialist products In the view of the retail buyers, the market was The case studies in this guide show how farmers ● Consumers have a strong affinity with local and being held back by a range of factors which both and small manufacturing companies are working rural businesses and enjoy supporting these if with manufacturers and retailers to overcome the offer is right. they and local food producers faced in sourcing local foods. The main factors identified were: some of these problems. They also show how What do the Buyers Predict? such businesses are responding to a growing ● meeting technical and quality standards IGD surveyed retail buyers responsible for demanded in today’s marketplace market by meeting consumer needs directly. sourcing local food, within independent, multiple ● delivery to store in the right quantity and and ‘speciality’ retailers, to gain further insight into time scales the market for local foods. INTRODUCTION 7 8 INTRODUCTION How can UK Products stand out examples of foods, such as an own-make of sausage from the Crowd? or a speciality bread, that are closely associated The case studies in this report provide excellent to a particular town or region either because of WHERE TO START? examples of how companies have successfully consumer preferences or because of limited supply.