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London – 24 June 2009 – UK shoppers who have previously been willing to pay a premium for organic, Fairtrade and eco-friendly goods are overwhelmingly turning their backs on buying ethical in favour of cheaper shopping bills.

And the trend looks set to continue AFTER the recession, according to a new survey from Cohn & Wolfe which appears to indicate a long-term negative shift in ethical shopping.

Three in every five shoppers (69%) revealed they plan to continue cutting back on organic food after the recession.

Two thirds (61%) will pay less for ethically sourced foods such as Fairtrade when the downturn ends.

And the biggest loser appears to be premium brands, particularly own label premium products such as Tesco’s Finest and Sainsbury’s Taste the Difference. Three quarters (73%) of people stated they will seek to pay less for them in the future.

The survey findings are backed up by the latest shopping statistics in the UK, which show that organic food sales in 2008 slowed to 1.7% , following more than a decade of sustained growth.

Geoff Beattie, Head of Cohn & Wolfe Global Practices said:

“The recession has shaken off the moral veneer of consumers, and a more prudent shopper is emerging. Consumers are now turning away from ethical products, especially higher priced green goods like organic in favour of a cold, hard bargain.

“Whilst the savvy consumer is saving money where they can, shoppers will still aspire to stay true to their values. The challenge for retailers and manufacturers is to develop more affordable ethical and green goods to build consumer trust, but without hurting profit margins.”

With fancy out and value in, the Cohn & Wolfe study also reveals new shopper loyalties are emerging as food manufacturers and retailers engage in a value contest. In the recession, half of shoppers (46%) feel more positive towards using discount grocery stores. As a result, two in five shoppers (39%) plan to shop at discount supermarkets more often, and over a third (36%) will to continue to substitute well known brand labels in their shopping baskets with more economy ranges.

James Ruane, head of Cohn & Wolfe Food & Drink, said:

“With discounters Aldi and Lidl both delivering double digit growth of 13.6% and 12.3%  respectively over the past quarter, this spells good news for low-cost retailers and an acceptance that budget shopping will continue to play an important part in consumer’s shopping habits.”

However, people still want fresh local produce, seeing it as a hallmark of quality. Close to three in five shoppers (57%) are prepared to pay more for locally produced food as well as fresh fruit and vegetables and nearly three quarters (71%) will stay loyal to some brands, especially store cupboard essentials like teas, coffees, and cereals.

Sheila Dillon, The Food Programme said: “This interesting research shows that after decades of the one-stop weekly visit to the supermarket, people are learning to shop again: getting their food from a mix of sources. They still want quality but are sharpening their skills on how you get it. The research also shows how deep the commitment now is in Britain to local food and that provides a real challenge to the organic movement.”

James Ruane added: “Value for money combined with the highest quality will be the key messages that resonate with the post recession shopper in the future. Simple and effective communications will play a vital role in ensuring retailers and manufacturers connect with the smart shopper, as consumers constantly re-evaluate the purchasing choices they make every day.”

About Cohn & Wolfe

Cohn & Wolfe is a strategic marketing public relations agency dedicated to creating, building and protecting the world’s most prolific brands. With offices in the US, Europe and Asia, the agency creates and implements powerful communications programmes that help clients build their brands and their bottom lines.

For further information please contact:

Sarah Descher  0207 331 5357  sarah.descher@cohnwolfe.com
Jenny Sumner  0207 331 5473  jenny.sumner@cohnwolfe.com

About the research

Research was conducted by Lightspeed. 1005 respondents were polled. The sample is nationally representative of total GB.

[1]  Soil Association Organic Market Report 2009

[2] TNS Global World Panel grocery market share figures