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Bees for Development Trust  UK Charity No 1078803
2nd Bees for Development Honey Trade Workshop - October 2006

WHAT HAPPENS TO HONEY ONCE IT IS IMPORTED INTO THE UK
– MARKET CHAIN AND CONSUMER TRENDS

Rebecca Howard, Tropical Forest Products, UK

UK imports during 2005

Uk Honey imports 2005 (bar graph)

UK imports: Market share by country during 2005

UK imports: Market share by country during 2005 (pie chart)


Germany imports: Market share by country during 2005

Germany imports: Market share by country during 2005 (pie chart)

 

The niches within the British honey market

  • Blended honey: 454g @ £1.78 (£0.39/100g)
  • Manuka (healing) honey: 250g @ £4.99 (£2.00/100g)
  • Superior-grade, supermarket-brand, Orange Blossom honey:
    454g @ £2.39 (£0.53/100g)
  • Rowse Chilean Fairtrade honey: 340g @ £1.75 (£0.52/100g)
  • Tesco’s Organic honey: 340g £1.99 (£0.59/100g)
  • Fair trade, organic Zambian honey: 454g @ £2.57 (£0.57/100g)

 

Where are these honeys sold? Examples of retail outlets and what types of honeys are found in them…

  • Large supermarket
  • Wholesale via catalogues
  • Local health food shop
  • Oxfam shop: Fair trade food
  • Upmarket delicatessen

 

How can you offer a competitive product?

  • Supply in bulk
  • Add value by being a reliable and reputable supplier
  • Find the niche that your honey could fit into
  • Add value through branding and marketing your honey with a story

 

What are your strengths and how can you communicate these to the buyer?

  • Through example
  • Through openness and accountability
  • Through membership to an organisation which can vouch for your credibility
  • Through certification

    Strengths might include:


    • Economic strengths (low costs, low overheads)
    • Flexibility (e.g. able to meet delivery dates, deal with increasing demands)
    • Good communications and relay of information within your organisation as well as with customers
    • Staff: well-motivated and highly skilled
    • Good knowledge and experience of the product
    • Good knowledge and experience of the market and export
    • Good reputation
    • Sound finances
    • Proper storage facilities  
    • Good quality control mechanisms in place
    • Good cleanliness and hygiene in operations
    • Fair price paid to producers

 

Finding the niche that your honey could fit into...

  • Start by looking at the product you are offering:
  • What are its distinguishing features?
  • How do these fit into the market situation you are trying to access?

 

Price?

  • Impossible to compete with large suppliers like China and Argentina in terms of price;
  • How can you convince the buyer that your product is worth more?

If China and Argentina are selling their honey to customers in the U.K. for as little as £0.54/kg, what must they be paying their producers? The truth is that in order to produce such a cheap honey, production is organised totally differently, on an industrial scale.

 

Characteristics of the honey (value intrinsic to the product)

What makes your honey special?

  • Taste;
  • Texture;
  • Colour;
  • Floral source;
  • Healing propertie

Remember that most of the imported honeys on the market in the U.K. and Germany are fairly pale, mild honeys, similar to the ones produced in Europe. This means that there is still a need to educate consumers about the diverse range of honeys produced and why they should risk trying an African variety they are not used to.

 

Added benefits

  • Certification (e.g. Organic, Fair trade, UMF)
  • Telling an interesting story

 

Two examples

New Zealand manuka honey1. New Zealand manuka honey

  • Used to be one of the cheapest honeys on the market
  • Now price varies from £6000 to £26000 per tonne for bulk honey!
  • Thanks to the discovery of Unique Manuka Factor, and to clever marketing and publicity.

Over the last decade, New Zealand manuka honey has transformed from being a low value honey, used mainly for industrial purposes; to being a high value honey much sought after by patients and doctors alike, to treat external wound treatment as well as internal digestive complaints. The reason is down to the discovery of a unique antibacterial property produced by the enzymes in manuka honey (called ‘Unique Manuka Factor’) which is purportedly more persistent and stable than that found in other honeys. The credit is awarded to the Honey Research Unit in New Zealand who have proven the unique properties of manuka honey, as well as the massive scale media coverage which has publicised the story. The value of the honey varies according to the UMF standard it carries, which is set and controlled by one laboratory within New Zealand. Packaging the honey in New Zealand allows for greater control over the Manuka brand (although laundering still does happen).

 

2. Tropical Forest Zambian honey

Tropical Festest - Zambian organic honeyWhen Tropical Forest first attempted to sell Zambian honey, they were met with suspicion from other honey packers in the industry who thought that no-one would want to buy a dark, strong-tasting honey so different from British honey and the other mild honeys on the U.K. market.

Now, we have a rapidly growing loyal customer base, who keep coming back because they like the taste and the story behind the honey.

One of our largest customers, a chain supermarket called Morrison's who have over 360 stores across the U.K. have been stocking our honey in some of their stores since October 2005. The buyers actually prefer the dark clear honey over the lighter set honey, precisely because it is different from all the other varieties they stock.

Labelling advice

 

Opportunity for Africa!

  • Premiumisation of markets in the U.K.
  • Interest in fair trade and organic products
  • Representation of African honey in the various retail sectors

The U.K. has seen a premiumisation process in its markets over the last few years. As people have increasing incomes to spend, they are getting more interested in different varieties and higher quality of products.

Marketing has become ever more important and the approach taken focuses on consumers and how to present them with the products they need, rather than conning them into buying what they don’t want.

Of course the low value products still exist at the other end of the scale, but honeys like Gales are becoming less and less popular.

In Germany, this same process is not so evident in the case of honey. Notably, the industry is controlled by a few very large packers who have consistently believed in selling consumers the mild honeys they think they want. The fact that honey sales are diminishing in Germany perhaps suggests that these honey packers don’t really know what consumers want anymore.

Demand for Fair trade and Organic foods is on the increase, as one aspect of this premiumisation process. Increasing demand must be matched with increasing supply so there is an opportunity for more fair trade, organic African honeys to enter the market. What we can’t be sure of though, is the stability of these labels, since the messages get so simplified by the time they reach the consumer, and any negative media coverage of ‘fair trade’ and ‘organic’ is a threat.

Currently our Zambian honey occupies a place in most of the retail sectors on the U.K. market, from one of the most expensive delicatessens in London, to the larger supermarket chains, as well as across the country in smaller health food shops and some small corner shops. It is also occasionally sold by people at markets and community fayres. This is all helping to increase people’s awareness across the U.K. of African honey.

 

PowerPoint Presentation  Download Rebecca Howard's PowerPoint presentation here (864kb .pps file)

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