Impact of Red Tractor in the Foodservice / Care Sectors

1. March 2014 Impact of Red Tractor in the Foodservice / Care Sectors Richard Cattell – Head of Marketing & Communications richard.cattell@redtractor.org.uk

2. Who are we?

3. Who are we?

4. Do consumers care about food quality in a foodservice environment? • Retail vs. Foodservice buying behaviour– the same? • …. • Benefits of Red Tractor in Care Sector? • Opportunity?

5. Foodservice Research - Three key factors driving choice Me and Mine • I’m/we’re hungry: what shall I/we eat? • Taste • Price • Convenience • Safety • My/Our health • The type of food eaten • The frequency with which it is eaten • Food quality Now The Future • Broader ethical implications • Animal Welfare • British sourced • Environmental impact Others Red Tractor Foodservice consumer insight

6. Purchase decision can be more complex in a grocery environment • Decision making more considered and less influenced by hunger • The ingredients are unprepared • More likely to be feeding others • Conditioned to look for messages about food quality • Many high profile food issues have been framed in a grocery context Animal Welfare Taste Traceability Perceived Price Premium Environmental Impact Supporting farmers overseas Supporting UK farmers Health & Safety Minimum Acceptable Price Indirect Direct Impact of Issue Red Tractor consumer insight

7. Need for quality assurance latent rather than top of mind • Not consciously looking for food quality cues beyond what they directly experience: • Nature of the occasion • Conditioned by the lack of information • But there are clues that there is a need for more reassurance: • Often aware of food quality issues in a grocery environment • Awareness of particular issues prompts interest and involvement • Horsemeat underlined how quickly attitudes can change Red Tractor Foodservice consumer insight

8. Potential RT benefits in the Care Sector? Price / Budget Quality / Sustainability A tool to help demonstrate food quality & traceability

9. Red Tractor has a number of values to consumer Source: YouGov, 1,462 primary shoppers April 2013, 1,588 primary shoppers March 2012 Red Tractor consumer insight overview

10. 63% of UK shoppers recognise Red Tractor Which, if any, of the following logos are you aware of/ have you seen before? (Please tick all that apply) Source: YouGov, 1,462 primary shoppers April 2013, 1,588 primary shoppers March 2012 Red Tractor consumer insight overview

11. The Red Tractor Consumer Proposition Red Tractor consumer insight overview

12. Q: ‘Thinking generally about the prices you pay for your food when eating out…Which one of the following statements best describes your attitude towards menu items with the Red Tractor logo?’ 27% of consumers prepared to pay a premium for Red Tractor products. Sample: 2,019 Red Tractor consumer insight overview

13. The benefits of Red Tractor endorsement in sum • Recognised food quality mark • Potential to charge a price premium and/or justify current prices (consumer or client) • Reputational benefit for partners in terms of: • Additional CSR attributes in general • Food quality & traceability in particular

14. Thank You!