Food Matters: Free-From Focus

To stay ahead of the game, savvy retailers need to take note of important trends. This way, they ensure they don’t lose sales to competitors who understand changes in demand and stock accordingly. Of the various recent developments affecting the independent food retail sector, perhaps the most important is the explosion of the free-from sector. Not so long ago, free-from was considered a little faddy, or something solely for people who suffered from coeliac disease, or who were obliged to restrict their diets because of other medical conditions.

This has changed dramatically. Independent stores across the country have experienced a steep increase in demand for all sorts of free-from goods, and gluten-free products in particular. Some farm shops have found that it pays them to devote areas of floor space to this purpose. Demand for gluten-free, wheat-free, lactose or dairy free and reduced sugar products is measurably rising. The free-from market actually doubled in size between 2009 and 2014 and is now worth somewhere in the region of £365 million. Mintel reports that there is someone with special dietary needs in nearly 40% of households, a sizable market just waiting to be tapped.

However, what makes this spike in demand interesting is that it’s not all down to people’s dietary requirements. At least as many people buying free-from goods are doing so for other reasons. This is very likely a direct results of the media attention directed towards gluten-free and other free-from foods in the past couple of years and also, perhaps, of celebrity endorsement of such diets. Recent labeling legislation has enabled food buyers to more clearly identify the constituents of their purchases, further raising awareness.

Health-conscious

So who are the people who are driving this demand? Up until now it has not been the food producers. They, in fact, were quite slow to latch onto the possibilities of free-from ranges. Today’s customer is much more aware of the food he eats and matters of provenance and high-quality ingredients have assumed much greater importance, especially for the sort of consumer who frequents independent shops such as farm shops and delis. He (or she) is also very health-conscious. Both these factors have been central in the boom in sales of free-from products. For Jack Barber of Easy Bean, free-from ingredients attract three types of customer: “those with a general interest in food, its ingredients and provenance, those interested in nutrition and healthy eating, and lastly, those with a specific food intolerance.” Dairy-free is becoming an essential sector for independents, with coffee bars now offering dairy-free drinks as a matter of course. Katja Thrane, marketing director of Rebel Kitchen, which makes dairy, gluten, nut and soya-free coconut milks, says “going dairy-free is no longer just for people with intolerances; it’s a long-term lifestyle choice.”

However, there is more to do than providing foods which tick these boxes. It is no longer sufficient to offer your customers free-from goods in unbranded cellophane bags, as some health foods shops have done in the past. Customers now want the same attention to branding and packaging that they find with any other food product and the food itself must taste as good as any other product of that type. As Clare Ramsey of Mrs Crimbles puts it, “whilst once it was enough to have gluten-free equivalents of popular standard lines in fairly non-descript packaging, the consumer now expects a delicious-tasting product which is also appealingly packaged…the trick is never to compromise on taste, Great-tasting products will appeal to mainstream consumers. The gluten-free element is an added attribute.”

Despite their importance as dietary essentials for people with food intolerances, free-from foods should not necessarily be associated with health foods or described as such in point of sale or other promotional signage. Primrose Matheson, sounder of Primrose Kitchen, sounds a warning note: “Many people buy gluten, dairy or fat-free products and, due to misinformation, assume they are healthy. Unfortunately, most are not and are just mass-produced foods with names of ingredients so long you couldn’t pronounce, let alone recognise them! When you look at a list of ingredients, ask is this something that I could buy as a separate ingredient, like oats or sunflower seeds. If it is, you are eating something good. Free-from foods don’t necessarily offer more nutritional benefits.”

That said, stocking free-from serves the needs of customers with restricted diets and if it also satisfied the whims of the more fad-conscious, then then this is all to the good for the retailer. With the free-from market set to grow a further 51% by 2019 (Mintel), this is an opportunity to be seized. Whether this is a sustainable market or a bubble that waits to be popped, only time will tell, but for the moment stocking all kinds of free-from is a perfectly sound plan.