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Tesco Report Surge In Sales Of Local Produce

Wed, 27 Aug 2008

Tesco is set to generate sales in excess of £500 million from locally-sourced food and drink this year thanks to a surge in demand for regional products among British consumers.

The supermarket giant said sales of locally sourced products, such as meat, breads and apples, have risen by 40 per cent since the start of the year as shoppers begin to turn their backs on big brands in favour of more local produce.

Tesco launched its local sourcing programme last year and at present stocks roughly 3,000 regional product lines in its UK stores .

Commercial Director for Tesco Local, Willie Hamilton, explained: "We set ourselves very stretching targets to get to £1 billion in sales of local products by 2011. People are cash-strapped but our numbers are bang on target."

"Some 84 per cent of our customers are saying that they would like to buy local lines. It’s a fantastic opportunity and that’s why we’re investing so much," he added.

The retailer’s success reflects a nation-wide boom in demand for locally sourced products . According to the Institute of Grocery Distributors (IGD), the market has grown 15 per cent to £4.3 billion since 2005 and could be worth £5.7 billion by 2012.

Rival supermarket chain Sainsbury’s recently confirmed its intent to take advantage of the local produce boom with the introduction of its Supply Something New campaign in association with Food from Britain .

The IGD’s senior consumer analyst, Michael Freedman said that the majority of people who purchase locally sourced goods do so in the belief it is fresher, supported by local communities and is eco-friendly by cutting food miles.

He added that while demand for local produce was highest in the South West, East Anglia and Scotland regions, nearly two thirds of shoppers in London have also claimed to be in favour of buying more regional produce.
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