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Tesco Aims to Cut Food Waste by Reducing Multibuy Offers

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Tesco is dropping some food promotions after finding that two-thirds of produce grown for bagged salad is wasted. The move was announced as the Tesco group released food waste figures for its operations for the first time, revealing that 68 per cent of salad to be sold in bags is thrown out – 35 per cent of it in the home.

As a result of the findings, Tesco is to end Multibuy offers on large bags of salad and is developing mix-and-match promotions for smaller bags in a bid to help customers reduce the amount they are wasting.

It is also removing ‘display until’ dates from fresh fruit and vegetables, using smaller cases in stores and rearranging 600 in-store bakeries to reduce the amount of bread on display – all with the aim of better stock control and less waste.

The retailer found that 40 per cent of apples are wasted, as are just under half of bakery items. A quarter of grapes are wasted between the vine and the fruit bowl and a fifth of all bananas are unused – with customers throwing one in 10 in the bin.

Tesco said it was involved in trials with apple growers to reduce pests and disease, and will provide simple tips to customers about storing the fruit after finding that more than a quarter of wastage happens at home.

It will also share tips with customers about how to use leftover bread, and is working with grape and banana suppliers to improve delivery times and conditions.

Given Tesco’s announcement to cut back on Multibuys, Brand View has taken a look at Salad category promotions in more detail.

How do the retailers compare on Multibuy promotion in prepared salad?

YTD-Multibuy-Promotions

On average, across the UK’s biggest five supermarkets, there has been a decrease in the number of Multibuy promotions in the Fresh Salad category versus the same time last year.

Whilst Tesco has decreased the number of Multibuy promotions it is still promoting considerably more Fresh Salad lines than the rest of the market, selling nearly four times more than Waitrose (the next most heavily promoted retailer).

 Is Multibuy the most frequent promotional mechanic for prepared salad?

Multibuy and Price Reduction | Brand View

The majority of retailers place their focus on Price Reduction promotions whilst Tesco has a much greater proportion on Multibuy than its competitors (accounting for 59 per cent of its promotional activity year to date).

Tesco has reduced promotional activity on a year to date basis driven by less BOGOF and 3 Cheapest Free activity (mechanics which may drive shoppers to buy extra volume) and placed more focus on Buy 2 for activity.

Tesco Multibuy | Brand View

Tesco currently offer the most Mulitbuy promotions in this market and whilst it has reduced activity on mechanics which may encourage the greatest amount of wastage, it does promote considerably more than its competitors.
To find out about Multibuy trends on other categories such as Bread, Fresh Fruit and Veg, please contact the Brand View team.


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