CEO update - All the latest news and views from Richard Harrow

Retail sales

The Kantar data featured on page 29 shows strong sales growth in frozen. I have been reaching out to key retail category directors since the data was published and it seems sales are still strong, with most reporting frozen growth of between 20% and 30%. The mix of what people are buying has changed from items such as ready meals in favour of products they can cook with or are popular with kids who are now at home all day.

WRAP

Another change in consumers habits was illustrated in a recent WRAP online survey that revealed 36% of consumers claim they have reduced food waste in the last month. What was striking in the research was the amount of references to the use of freezing, combined with consumers checking their freezers more often. One of the biggest issues we have faced as a category has been encouraging consumers to use and visit their freezers more often. My issue with WRAP remains that they do not nudge consumers to buy frozen.

Media interest

Over the last few weeks, I have had many interviews with the consumer media as changing buying habits have piqued their interest in the category. This has resulted in some very positive coverage, especially in comparing the nutritional benefits of frozen vegetables vs fresh.

NHS support

It was great to hear that Iceland has committed all of the profit from its new Rainbow Ice Cream to the NHS. Whilst I am sure the product was created long before COVID-19 appeared on the scene it was a generous thought to donate the money to such a worthwhile cause.

The Grocer

The frozen category was featured in The Grocer 13 March edition when they published the Frozen Food Power List of the top 10 people that influence the industry. The top three were Wayne Hudson MD, Nomad Foods, UK, Ireland and Nordics, Nigel Broadhurst joint MD, Iceland and president, British Frozen Food Federation and Samuel Dennigan group CEO, Strong Roots. Frozen was again in The Grocer when Andrew Staniland, frozen trading director at Iceland, was included in the Own Label Power List.

Brexit

With COVID-19 creating such a crisis over the last few weeks it’s easy to forget the deadlines for Brexit are now almost upon us. The government has so far ruled out any extension to the withdrawal date at the end of 2020. At the Federation we are now refocusing our attention onto the issues surrounding this, not the fact we are leaving, but ensuring the operational impacts are clear. With so much work still to be completed we are concerned many areas of the movement of goods and the future trading relationship with the EU remain unresolved.

Supporting international trade

The Federation has joined with other trade bodies, including the FDF, in supporting the concept of international trade. The government is concerned there may be calls for a reduction in international trade, which would not benefit either the UK or global economy.

Global trade has helped the world economy grow to the benefit of many nations including the UK. As we come out of COVID-19 there are bound to be calls for a more inward-looking approach. Whilst we would fully support increased investment in UK food production, we should not close our eyes or minds to the benefit of international trade.

Plastic tax

In the budget on 11 March the chancellor advised that from 2022 any plastic packaging that does not include at least 30% recycled content will be taxed at £200 per tonne. This creates some major issues for our industry. Firstly, it is estimated we currently only generate enough recycled packaging for 10% of UK plastic to include this level of recycled content. However, the main challenge is that current legislation stops us using this recycled packaging when it is in contact with food. We will work with other federations in the coming months to challenge this tax, otherwise this will not be about driving new ways of working, but will merely be a tax.