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ORGANICS

Elana Freeland | 07.06.2006 12:31 | Health

A thoughtful complaint to Sainsburys Supermarkets Ltd. regarding their lack of a serious organics policy, given that many people will only encounter organic foods in large corporate food chains. I bypassed appealing to conscience in favor of pointing out various self-serving reasons to take organics seriously. (I have included it as an attachment as the color-coded version is easier to read.)

6 June 2006


TO: JUSTIN KING, PRESIDENT
GWYN BURR, CUSTOMER SERVICE
Sainsburys Supermarkets Ltd.
33 Holborn
LONDON
EC1N 2HT


Allow me to introduce myself. I am one of your cranky shoppers who values her health.

 http://www.organicfood.co.uk/news.html
From cranky to mainstream
A report from grocery research body IGD shows that more than half of shoppers choose ethically when they buy their groceries. Jonathan Prynn of The Evening Standard writes, "The report shows how a trend seen as a cranky, middle-class fad a decade ago has grown into a powerful consumer force, with 52% of shoppers now classing themselves as 'ethical'. Of those, 33% say they buy such products because it chimes with their beliefs, 15% because they want to boycott companies they do not approve of and 4% because it is fashionable." 28% of Londoners say organic shopping is "very important", 47% of shoppers choose organic or Fairtrade milk, eggs, fruit and vegetables.

I am writing to complain about the lack of care shown ORGANIC PRODUCTS (other than an adequate selection of veg and fruits) at your Banbury store. On several occasions, organic products have been out of stock or discontinued. Suddenly it dawned on me that organic products are either playing second fiddle to corporate foods OR might be being phased out entirely.

I had hoped this was Sainsbury’s --

Environment New Focus for Supermarkets
"All the big chains are engaged in a battle to prove their green credentials and portray themselves as caring, sharing protectors of the planet," writes Guardian journalist Julia Finch in an article that discusses what the main supermarkets are doing to prove their green credentials. From Sainsbury's testing new compostable bags for their organic fruit and veg to the Wal-Mart President, Lee Scott, gaining a two-hour audience with Prince Charles for royal advice on how to become more ecologically sound. Andrew Simms of the New Economics Foundation, is not impressed. He says, "As it stands, the only truly responsible corporate act the big four could do is to ask the regulator to break them up." (Guardian - 18/5/06)

-- but after my experiences over the past two years, I might just have to go to Tesco’s where I know they’ll take my view on organic food seriously:

Tesco aims its organics mix wider
Tesco is hoping to grow organic food sales by 25% after moving its organic offers alongside non-organic product lines in store, but it also wants to cut prices, in an effort to bring "organic to the masses". (Farmers Weekly - 19/5/06)

I checked into how your stores are doing and discovered that they’re still making money (thanks to unloading a U.S. subsidiary!) –

 http://www.solarnavigator.net/solar_cola/super_markets_stores/sainsburys.htm
Revenue £15.409 billion (March 2005)

-- but apparently not like they used to:

“…It was once the market leader in the UK supermarket sector, but is currently ranked third behind Tesco and ASDA. Its stores appeal to a mainly middle-class core market. The company's fortunes have improved since the launch of a recovery programme by CEO Justin King in 2004 and ASDA CEO Andy Bond has suggested Sainsbury's may regain second position, lost in 2003. The group has struggled to retain its market share since the mid 1990s, and in its latest accounting period to 26 March 2005 it would have made a loss if it had not made a one-off profit on the disposal of its U.S. subsidiary.
“In 2004 new chief executive Justin King launched a new strategy focused on supply-chain overhaul to tackle stock availability, increased competitiveness on price and improving customer service. In early 2005 Sainsbury's share of the UK grocery market began to increase slightly according to TNS Superpanel. When the company's results were announced in May 2005 King claimed, ‘We are on track but still in the very early stages of a long-term recovery programme.’
“King ordered a direct mail campaign to 1 million Sainsbury's customers as part of his 6-month business review asking them what they wanted from the company and where the company could improve. This reaffirmed the commentary of retail analysts - the group is not ensuring that shelves are fully stocked, this due to the failure of the IT systems introduced by Peter Davis.
“On October 18 2004 all store managers gathered in Birmingham where King unveiled the results of the business review and his plans to revive the company's fortunes. This was made public on 19 October and was generally well received by both the stock market and in the media. Immediate plans include laying off 750 headquarter staff and the recruitment of around 3,000 shopfloor staff to improve the quality of service and the firm's main problem: stock availability. At the same meeting Lawrence Christensen, the newly appointed supply chain director and an expert in logistics, highlighted the reasons for availability issues and his plan to address them. Immediate supply chain improvements include the reactivation of two distribution centres.”

My shopping experience supports CEO Justin King’s insight into why market performance has fallen (and will continue to fall):

Stock availability and customer service FOR ORGANICS SHOPPERS are severely lacking at the Banbury store, which means that they are probably lacking at other stores, as well.

Mr. King, you may think you’re “on track,” but it is obvious to me that an adequate SAINSBURY ORGANICS POLICY is lacking. The “middle-class core market” that your stores serve includes educated, health-minded people like my husband and myself.

These organic product “oversights” couldn’t be because your board is heavily corporate, with friends in the GM sector, could it? Your food corporation isn’t discriminating against organic products, is it? One organic product after another not being re-stocked means a monopoly of sugar- and chemical-laden products.

“In June 2004 Sir Peter Davis was forced to quit as board chair in the face of an impending shareholder revolt over his salary and bonuses. Investors were angered by a bonus share award of over £2m despite poor company performance. On July 19 2004 Davis' replacement, Philip Hampton, was appointed. Hampton has previously worked for British Steel, British Gas, BT and Lloyds TSB.”

I’m glad Mr. King has managed “to stem the tide of negative stories in the press” because I am cc’ing the press with this complaint just to make sure other members of the public can let you know their opinions, as well.

Media reports tentative signs of recovery
Since the 2004 business review and the company's first trading report of 2005 King has managed to stem the tide of negative stories in the press. Indeed the press received by the company has been increasingly positive, The Sunday Times noted an appreciable increase in availability in its "Sainsbury looks in store for a recovery" article on March 6 2005. A similarly upbeat article, Sainsbury's strategy begins to deliver appeared in The Guardian on March 10 2005. The stories did note however that Peter Davis seized on similarly upbeat trading figures early in his tenure, but ultimately failed to improve the company's fortunes.
In November 2005 the group reported a half year 5.6% rise in sales (2.1% like for like), the third consecutive quarter with positive sales figures. Total weekly transactions increased from 14.5 million to 15 million. This is in the context of a highly competitive market and when the price of the average basket of goods is now cheaper in real terms than in 1997. However, due to extensive price cuts the company reported profits of £118 million, lower than market expectations. Sainsbury's Bank reported a £5 million loss in the same period, continuing its poor performance, explained by Sainsbury's as due to "increased provisions for 'bad and doubtful' customer debt"…

In case you or staff are not apprised as to why a responsible organics policy is important and will become progressively moreso, here are a few websites and articles citing why organics will become increasingly desirable as the public becomes more aware of the relationship between health and healthy foods.

 http://www.prleap.com/printer/12574
 http://www.researchandmarkets.com/reports/c22455/ has announced the addition of The European Market for Organic Fruit & Vegetables to their offering. Organic fruit & vegetables comprise most revenues in the European organic food industry. They are grown in all European countries and are typically the entry point for many first-time buyers of organic products. Consumer demand for organic fresh produce continues to strengthen with revenues increasing by 26% between 2001 and 2004. Healthy growth rates are projected to continue as sales channels for organic products broaden.

 http://www.organicmonitor.com/100142.htm - June 2005
10/05/06 Sainsbury's Launches Transitional Organic Milk

 http://www.researchandmarkets.com/reportinfo.asp?report_id=328446
Organic Food Market Assessment 2006
The organic food and drink market is characterised by large numbers of small producers, although there is now evidence of increases in size to challenge the remaining smaller companies. There is growing activity in primary producers operating as co-operatives, and the share of organic food sales through direct outlets, notably box schemes, has increased significantly. This has affected sales of organic produce through the dominant grocery multiples of Tesco, Sainsbury's and Waitrose. The higher prices charged for organic products are under pressure from grocery multiples' demands, from increasing economies of scale at producers and from any overcapacity situations resulting from supply temporarily exceeding demand.
A significant proportion of organic meat, vegetables and fruit is still imported, as are many bakery items, fruit juices, hot beverages, baby foods and some multi-ingredient products. The Soil Association continues to campaign against this on behalf of UK farmers and growers, citing the Government's target of only 30% of total organic produce imported by 2010.
The organic food and drink market is forecast to grow at a slowing rate in the future, although still at an annual growth rate exceeding that for non-organic foods for most of the period to 2009. However, this report does not predict any substantial increase in the numbers of heavy consumers of organic produce — the majority still buy only relatively small proportions of organic foods and drinks within their total grocery purchases.

Please note the following 4.2 CATEGORY. It would be nice to see these categories well represented at Sainsbury stores.

 http://www.researchandmarkets.com/reportinfo.asp?cat_id=203&report_id=10808&p=2
Organic Food Market: Trends and Opportunities
1. Preface
2. Ethical and Strategic regulations relative to Organic Farming
3. Organic Food Market: Market Overview
3.1. Global Market for Organic Foods
3.2. Western European Market Outlook
3.3. Organic Food Market Indicators
3.4. Industry Structure and Market Segmentation
3.5. Future Growth Prospects till 2006
4. Organic Food Retail Market
4.1. Total market size
4.2. Retail sales volume and demand analysis
4.2.1. Fruits and Vegetables
4.2.2. Diary Products
4.2.3. Multi-ingredient products
4.2.4. Cereals and Baked Food
4.2.5. Baby Food
4.2.6. Meat and meat products
4.2.7. Beverages
4.2.8. Poultry Farm products
4.3. Organic Import and Export Market
4.4. Total Expenditure and Revenue Share
5. Organic Farming: Pest Analysis
6. Challenges and Market Opportunities
7. Government Funding and Investment Factors
8. Organic Food Market: Consumer Preferences
9. Outlook

One of the reasons that public demand for organic foods will increase is genetically modified (GM) foods. Just today, Poland refused to bow to the EU’s GM mandate.

 http://www.organicfood.co.uk/gm/gmnationresults.html
On a whole series of questions, GM-hostile majorities were enormous, with 85 per cent saying GM crops would benefit producers not ordinary people, 86 per cent saying they were unhappy with the idea of eating GM food, 91 per cent saying they thought GM had potential negative effects on the environment, and no fewer than 93 per cent of respondents saying they thought GM technology was driven more by the pursuit of profit than the public interest. Figures in support of GM were, by contrast, tiny.
Europe faces new pressure to open its markets to genetically modified food from the US after the World Trade Organisation ruled that the EU broke international rules with its moratorium on new GM licences. If the preliminary findings are backed up in the WTO's final report, due in several months, the EU is entitled to appeal. (The Independent)

Where to shop for organic foods? Sainsbury is not listed.
 http://www.organicfood.co.uk/shopping/index.html#top

Check out how far Tesco’s is willing to go for organics:
 http://www.organicfood.co.uk/news.html
Organic farmed cod in Tesco's
This week Tesco introduces the No Catch range, which it claims is Britain's first farm-reared, 100% sustainable organic cod, certified by the Organic Food Federation and produced in Scotland by Johnson Seafarms. Soil Association comments that it has been working on the development of an organic cod standard. They consider Johnson Seafarms to be an innovative company which is going to considerable lengths to minimise its environmental impact and maximise the welfare of its stock. Cod farming is at a very early stage of development and the Soil Association appreciates the development work and research to which Johnson Seafarms is committed. However the Soil Association cannot currently certify cod production as it considers the use of artificial lighting (to prevent maturation in the growing fish) to be unnatural and energy intensive, and we lack suitable evidence regarding the effects of the light on the welfare of the fish. The use of lighting is also not permitted on the Soil Association's certified salmon farms. Read some other reactions to the organic cod at Tesco's in The Guardian. (1/6/06)

And what about organic meat?
Organic meat is not a con
A letter from Robin Maynard, Soil Association head of media and communications, was printed in The Sun: "As the leading body in the UK certifying organic farming and food, the Soil Association supports Trading Standards officers busting rogue butchers passing off meat as organic when it is not. Rogue butchers may be deceiving the public, but organic food produced to our standards is certainly not a 'con'." (The Sun, p.41)

And organic chocolate needn’t be just about profits.
Chocolate Bar Saves Mayan Community
The Observer Food Monthly features an article on Green & Black's Maya Gold organic cacao project in the Toledo district of southern Belize. Organic chocolate bars are seeing a 60 per cent growth year on year - and in the US, the figure is 200 per cent. Green & Black's now finds itself with a problem. It already buys every single bean produced by the TCGA, and a third of the world's total organic crop. Soil Association chairman and founder of Green & Black's Craig Sams says: "Globally, we are talking about a desperate race to get organic up and running. In Belize alone, farmers will have to increase their output tenfold in the next five or six years, from 30 tonnes a year now to 300 by 2012, just to provide the cacao for use in Maya Gold." (The Observer - 28/5/06)

Two of many public figures who take their health seriously:
 http://women.timesonline.co.uk/article/0,,17909-2197419.html
“Tennis champion Martina Navratilova is so passionate about keeping fit that she’s written a book about it. She tells Ginny Dougary about life as a bionic woman”

Jo Wood (Ronnie Wood from the Rolling Stones' wife) was interviewed in Scotland on Sunday about her commitment to an organic lifestyle. "I really notice the difference when I can't get organic food. I feel less energetic – my body hates it... I sometimes think it would be great to turn the UK into the first all-organic country, for Tony Blair to have the guts to say 'Let's clean everything up'." (Scotland on Sunday - 14/5/06)

Health issues are becoming a national issue.
The British are Eating Better
Britons' diet seems to be improving, with shoppers buying more fresh fruit and vegetables, according to figures from the annual family food expenditure survey by the Department for the Environment. A Defra spokesman said: "This year there appears to be healthy eating trends right across the board. We are obviously improving our diet. It seems that overall we are going towards a healthier lifestyle." (The Daily Mail; The Guardian - 26/5/06)

Government school food announcement
On Friday, Alan Johnson, Education Secretary, published new minimum nutrition standards for school food "To ensure healthier eating throughout the school day, banning meals high in salt, fat and sugar or containing low quality meat from lunchtime menus". The Evening Standard wrote about "healthy food rules on the menu from September" and "tough new limits on the amount of salt, sugar and fat in school meals". The Times wrote "parents were warned not to undermine new food standards rules yesterday by sneaking fizzy drinks and biscuits into their children's lunches." The Financial Times wrote, "The Soil Association, which promotes organic food, said some schools did not spend enough on ingredients to meet the standards". The Independent commented, "The number of primary school children staying for lunch at school has dropped from 49 % last year to 44% in the wake of Jamie's Oliver Channel 4 series aimed at improving school dinners, a survey by the Soil Association published today says." (The Times, 20/5/06; Daily Telegraph - 20/5/06; Evening Standard - 19/5/06)


Ending with children, our future, is a good place to stop. I’m off now – to Tesco’s.

Elana Freeland

Comments

Display the following 2 comments

  1. news? — roserat
  2. HEE HEE HAH HAAH — .... NOBODY even GUESSES. quite.