A new study has evidenced that retailers can feel confident that they can stock and sell healthy (low sugar, low calorie) products – and still grow their businesses.
That’s the findings from the Bestway Good Food Wholesale Initiative launched by Bestway Wholesale, in partnership with the charity Impact on Urban Health, undertaken by consultancy Rice Marketing, and supported by the FWD.
The project sits alongside the Government’s current health agenda with the aim to reduce childhood obesity by influencing consumer shopping behaviours.
Results from the study published in a report released today show that small and simple changes can have a significant impact on purchasing power, and ultimately on health and wellbeing of the nation.
Piloting the study out of its Croydon Depot, Bestway Wholesale developed and marketed a Healthier Options range, ensuring strong availability of those products whilst making changes to its pricing and promotional activity, increasing shelf labelling and encouraging merchandising options for its retailers.
Taking a concerted ‘push’ approach, the results are said to have exceeded expectation on every level, proving that by moving to a healthier approach, there is also an opportunity to amplify growth within retailers’ businesses.
The report shows that the volume sales of the Healthier Options range (excluding soft drinks), increased by 7,277 cases over the promotion period, reflecting an increase of 17.7%. The combined sales volume of Alpro products increased by 21% and sales of Graze products jumped by 170%.
Other key findings included some significant sales volume increases of products including wholemeal bread (+45.9%), fresh food (+13.4%), grocery (+45.6%), frozen food (+98.3%), and sugar-free confectionery (+666%).
It was found that key tactics of pricing, promotion, availability and merchandising have the biggest impact when used in combination. An additional promotional supplement was produced for retailers as a mechanism for communicating the Healthy Choices campaign where 100% of the 53 products featured were healthier products.
Kenton Burchell, Trading Director at Bestway Wholesale, commented: “Childhood obesity is without doubt a growing concern across public health and from this study we now know beyond doubt that independent convenience stores and wholesalers can influence consumer shopping behaviours towards affordable, healthier options – even in low-income areas such as Lambeth and Southwark, which have the highest levels of child poverty in the UK.
“By taking a collaborative ‘push’ approach to marketing healthier options, and by looking to educate retailers in making simple, small changes, there is no question that this is a win-win for both consumers and retailers. The results clearly show that we can influence consumer behaviour, while also driving retailer business growth.
“It is important that we dispel the myth that retailers will be left with excess stock and losses on SKUs through adopting a healthier option’ approach – the reality is the opposite. They can grow their business and increase sales.”
James Bielby FWD Chief Executive, added: “Wholesalers and convenience stores have an opportunity to lead a transformation in the nation’s healthy food choices. Those that don’t will find themselves in the firing line of the Government’s war on the promotion and positioning of high fat, salt and sugar products.
“This report shows that it’s possible to make that transformation with a positive impact on profits, and we will encourage our wholesaler and supplier members to work together on a sector-wide response to the challenges and opportunities of improving availability and visibility of healthier options.”
The Bestway Good Food Wholesale Project will now move towards its second phase as a taskforce is set to be appointed to consider the implications of the report and how to tackle the challenges raised. This will lead to practical trials with wholesalers and suppliers.
Supported and encouraged by the FWD, and backed up by findings from the study, Bestway Wholesale is encouraging the industry to come together in the interests of consumers and retailers at large, to agree on a collective and collaborative approach that could make a real difference.
