Impact of Red Tractor in the Foodservice / Care Sectors Richard Cattell – Head of Marketing & Communications March 2014

Who are we?

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?

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

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 Red Tractor consumer insight Minimum Acceptable Price Impact of Issue Direct Indirect Perceived Price Premium Taste Animal Welfare Environmental Impact Supporting UK farmers Supporting farmers overseas Traceability Health & Safety

Need for quality assurance latent rather than top of mind Red Tractor Foodservice consumer insight 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

Potential RT benefits in the Care Sector? Price / Budget Quality / Sustainability ? Gov’t Client Suppliers Caterers A tool to help demonstrate food quality & traceability

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

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

The Red Tractor Consumer Proposition Red Tractor consumer insight overview

27% of consumers prepared to pay a premium for Red Tractor products. Red Tractor consumer insight overview 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?’ Sample: 2,019

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

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