Tesco has revealed that its customers are starting to choose healthier options following moves to restrict how products high in fat, salt or sugar (HFSS) are sold in-store.
In October 2022, the placement of HFSS products in areas like checkouts, end-of-aisle units, store entrances, and designated queueing areas was banned in England. However, the government delayed a planned introduction of restrictions on multibuy offers earlier this year until October 2025 amid concerns about its impact on consumers struggling with the rising cost of living.
However, Tesco voluntarily stopped multibuy offers for most HFSS products, apart from some frozen food items and party food. It has also rolled out signposting for healthier products and backed reformulation to make products healthier.
Tesco’s Chief Commercial Officer, Ashwin Prasad, praised the impact of changes, pointing to data in a new report from the retailer, which shows an increase in healthy purchases across several categories.
Research in partnership with the British Nutrition Foundation found that half a million customers’ shopping baskets at Tesco have become healthier since 2021, with 3.3 million people purchasing at least 10% more healthy products in 2022 compared to the previous year.
The study notes that a reformulation programme has removed 71bn calories from the retailer’s own-label products, with Tesco calling on its suppliers to set their own reformulation targets.
Tesco highlighted that ‘Better Baskets’ zones in its store – where products that are higher fibre or lower in sugar and calories, or produced in a way that’s better for the planet are grouped together – have driven a 12% increase in year-on-year sales volumes for these products.
Tesco has set itself a target of 65% of its sales coming from healthier food by 2025. The retailer noted that in the past year, sales volumes of low and no sugar drinks have grown 11%, sales of healthy snacking crisps have grown by more than half, and sales volumes of new and reformulated healthier biscuits have risen 8%.
After highlighting the impact of rising levels of obesity on the NHS and wider economy, Prasad said: “At Tesco, we have seen what’s possible when we create the conditions and incentives to help people to fill their baskets with products that are healthier and more sustainable, but still affordable.
“I’m encouraged by the progress so far and look forward to even greater collaboration with our suppliers and partners as we work towards our 2025 goal.”
NAM Implications:
- Tesco healthier eating initiatives have patently paid off…
- …in actual basket performance.
- And provided results that stand out…
- A pointer for others?
