Charlie Nelson, October 2000
It seems that there are sufficient patriotic consumers to attract the interest of grocery retailers and their suppliers.
Surveys of grocery shoppers conducted by ACNielsen in 2000 show that 60% of Australians agree that they are prepared to pay more for Australian made products. Also, 12% cite country of origin as the single most important influence on brand choice (30% say quality, 25% say habit, 25% say price, and 4% say environmental credentials). When multiple attributes are allowed, 34% cite country of origin as a factor influencing brand choice (52% mention quality, 52% mention habit, 56% mention price, and 31% mention environmental credentials).
These sentiments have recently been put to the test by the launch, in February 2000, of Dick Smith's Foods in Australia . Dick is a brand in his own right in Australia, but his mission is to supply products with 80% or more Australian product content. One third of profits go to charity.
Dick Smith's products are not the cheapest in their categories, so purchasing is not based primarily on price (a detailed report is available for purchase from ACNielsen).
On the other side of the globe, Sainsbury's - a major retailer with some 430 stores across the UK - is getting strong feedback that customers like the idea of more local food products. And this does not mean UK produced but truly locally produced - within the county or the region (Green Futures September/October 2000).
Buying locally produced products is not only good for the local economy and way of life. It can also be environmentally friendly in that less carbon is consumed in transportation. The concept of "food miles" is becoming an additional attribute to be considered in the supermarket.
The preference expressed for locally produced product over imported product is also an anti-globalisation trend. Some consumers are erecting their own trade barriers and the world trade organisation is powerless to prevent it!