Investigating the innovativeness of the potato
product offering to South African consumers
from a food preference trend perspective
Ms Hester Vermeulen, Consumer economist,
Bureau for Food and Agricultural Policy (BFAP) (www.bfap.co.za)
Introduction
Successful marketing is underpinned by satisfying the
consumers’ needs. Innovation enables the food industry
to develop new or improved ways to meet consumers’
needs. Food trends could serve as a strong indication of
consumers’ current needs in the food context.
South Africa has a diverse consumer spectrum. For
example, the daily household income of the poorest 40%
of the population (SAARF LSM segments 1 to 5) varies from
R49/household/day to R145/household/day while this
value is around R1200/household/day for the wealthiest
consumers in LSM 10 (calculated from average household
income levels obtained from AMPS 2013b). According
to the 2010/2011 Statistics South Africa Income and
Expenditure Survey the poorest households spent around
35% of their income on food implying a daily household
food expenditure of R17/household/day to R51/
household/day for the poorest 40% of the population.
Subsequently different food trends would apply to different
socio-economic sub-segments of the population. Lower
income consumers will most probably be more focused on
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CHIPS • November/Desember 2014
food affordability coupled with obtaining the best possible
quality that can be afforded in order to maximize their very
limited budgets. As wealth levels increase consumers will
typically display more advanced food choice behavior
related to the type of food trends presented in this article.
As will be illustrated later in this article innovative food
products addressing prominent food trends often come at
a significant price premium. Even though the middle class
might find it challenging to afford the price premiums of
more ‘trendy’ food choices they might engage in some
selective luxury purchasing in order to satisfy their ‘aspiring
lifestyles’.
Dominant international food preference trends
reflected in the South African food sector
The Bureau for Food and Agricultural Policy (BFAP) recently
presented an overview of the most prominent manifestations
of food preference trends internationally as identified by
international trend ‘spotting’ organisations (BFAP, 2014).
These mega-trends have been around for a number of
years, BUT manifestations of these trends tend to change
over time.
Bemarking • Marketing
HEALTH
CONVENIENCE
SUSTAINABILITY
INDULGENCE
The health
trend: trend:
The health
International manifestation examples:
Natural & convenient protein food options
for higher
protein
/ fat food
diets.options for higher
Natural
& convenient
protein
Protein
recognized
as a ‘good’
protein
/ fat diets.
Protein recognized
as aingredient.
‘good’
Less ‘bad’ ingredients
ingredient.
International manifestation examples:
South African examples:
South African examples:
Advertisement in window of store
selling
fruit,innuts
andofbiltong:
‘Get
Advertisement
window
store selling
fruit, nuts
banting
andbiltong
biltong:and
‘Get nuts
biltongfor
and
nuts forhere’
banting here’
‘Free-from’
Less
‘bad’ ingredients
Clear labeling, traceability
‘Free-from’
Energy food remain important
Clear labeling, traceability
Natural ‘super foods’
Energy food remain important
Food in weight management
Natural ‘super foods’
The convenience trend:
International
manifestation examples:
Food
in weight management
No Azobye
colourants
Tartrazine
free
• Can be traced back to its farm of origin
Natural healthy attributes of
dairy, fruit, vegetables
Natural healthy attributes of dairy, fruit, vegetables
South African examples:
CHIPS • November/December 2014
• Page 17
The convenience trend:
International manifestation examples:
South African examples:
The ‘snackification of everything’
Convenience with a ‘self-do’ factor
On-line food shopping
https://shop.pnp.co.za http://www.woolworths.
co.za/store
Apps related to food
Recipes, shopping lists
The indulgence trend:
International manifestation examples:
South African examples:
Local high quality ingredients
Simpler foods
Cooking with more natural and simpler ingredients
Culture food
The sustainability trend:
International manifestation examples:
South African examples:
Sustainability claims
• all farms are ecologically audited
FAIRTRADE
COFFEE
to ensure sustainability
COFFEE
Recycling
Less packaging
These examples clearly illustrate that South Africa is part of the ‘global village’ and that prominent
international food preference trend manifestations are present in the local market.
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CHIPS • November/Desember 2014
Bemarking • Marketing
The reflection of international food preference trends in
the South African context is further evident when analysing
the trends addressed by new food products on the South
African market (BFAP, 2014). The consistent importance of
indulgence, convenience and health is clearly evident from
Figure 1.
The importance of ‘double positioning’ strategies, where
products are based on two or more food trends to better
target consumers’ complex needs, should be noted.
Among the 2013 new products the most prominent trend
combinations included: Indulgence +health +convenience:
44% of products; Indulgence +health: 25%; Indulgence
+convenience: 25%.
100%
Share of new products
exibiting trend
90%
80%
70%
60%
50%
40%
30%
20%
10%
0%
2013 2012 2011 2010 2009 2008 2007 2006
Indulgence
Health
Convenience
Local
Sustainability
Figure 1: Consumer food trends addressed by the new food products in South Africa 2006 –
2013 (BFAP, 2014)
Now that we understand the prominent food preference trends prevalent in South Africa, let’s look at the
innovativeness of the dominant staple food categories in South Africa (including potatoes, maize meal, rice
and bread) from a trend perspective.
Innovative maize meal product characteristics:
Mega-trend:
Manifestation example:
Mainstream or niche:
Examples of associated
price premiums:
Health
Fortification with
micro-nutrients
Mainstream
Not applicable
Convenience
Quick cooking maize
meal
Niche
28%
Indulgence
‘Braai pap’ associated with
a special eating occasion
Niche
45%
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Innovative bread product characteristics:
The changing face of the South African bread offering:
A few years ago…
Now…
Mega-trend:
Manifestation example:
Mainstream or niche:
Examples of associated
price premiums:
Health
High fibre Low GI
Mainstream
+65% above
Indulgence
Commercial ‘farm’ bread
Niche
+105% above
Convenience
Sliced, pre-packed
bread
Mainstream
+37% above
Seed bread
Innovative rice product characteristics:
Mega-trend:
Manifestation example:
Mainstream or niche:
Examples of associated
price premiums:
Health
Whole-grain rice
Niche
+37%
Indulgence
Flavoured rice
Niche
+109%
Convenience
Par-boiled
Ready-to-eat flavoured
rice
Niche
+56%
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Variety indulgence
CHIPS • November/Desember 2014
Bemarking • Marketing
And last but not least….
Innovative potato product characteristics:
Mega-trend:
Manifestation example:
Mainstream or niche:
Examples of associated
price premiums:
Convenience
Cultivar / cooking
method information
Mainstream
Not applicable
Organic
Organic potatoes
Niche
+152%
Convenience
Ready to cook, pre-cut
and frozen
Mainstream
+100%
Convenience & indulgence
Pre-seasoned (e.g. baby
potatoes with garlic
butter)
Niche
+429%
Indulgence
Crisp-baking frozen
oven chips
Niche
+107%
Convenience
Pre-washed potatoes
Mainstream
Not applicable
Indulgence
Wide variety of frozen
pre-cut potato products
Mainstream & niche
Various
How do the levels of innovation compare for these staple food commodities?
Least innovative
Most innovative
Concluding thoughts: Given the food preference trends presented in this article, which product positioning
opportunities could be identified for potatoes? Some examples….
•
•
•
•
Refinement and wider application of the cultivar /
cooking method scheme.
A stronger focus on the ‘natural goodness’ of potatoes.
Recipes or technology reducing preparation time, but
increasing the indulgence value of potatoes.
Technology applications to enable the marketing of
more affordable ranges of processed potato products
•
•
(such as frozen ranges).
A stronger focus on potatoes as a ‘quality locally
produced food’ and/or even regional food (e.g.
Sandveld potatoes).
A stronger focus on sustainable product practices
(social and environmental sustainability). C
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