Our suppliers
Progress 2007 cont...
Local sourcing
Customers increasingly want products that contribute to the local economy and help local suppliers.
In Poland, we have launched over 3,000 lines across our bakery, meat, dairy, water and beer categories sourced from over 200 local suppliers. All products have special packaging and were supported by a marketing campaign which linked local products to local jobs. Sales increased by 18% in 2007.
In Ireland, we worked with local growers to produce over 3,500 tonnes of onions and 1,500 tonnes of peppers, which would otherwise have been imported.
Our Local Supplier Programme was active in 11 Irish counties in 2007. We gave suppliers more shelf space and promote products in-store using their county colours. We held two successful roadshows for suppliers in Galway and Cork, and plan to extend supplier roadshows in other counties in 2008.
In the UK our aim is to stock more local lines than any other retailer, making local produce a mainstream part of our ranges in all stores. We launched 800 local products in 2007, bringing the total to more than 3,000. Sales grew by over £400 million and we are aiming for £1 billion by 2011.
We completed a network of eight regional buying offices in 2007, with dedicated buying, marketing and technical teams. They met 500 potential suppliers at 15 roadshows, and are working with more than 100 new suppliers to develop products. Small suppliers can access a fund to cover initial costs and help them to expand.
In 2007 we launched localchoice milk in around 760 stores in the UK as a result of a partnership with Dairy Farmers of Britain, Graham's Dairies and Robert Wiseman. This gives customers the opportunity to support small and family-owned farms through their buying decisions. We pay a premium to localchoice farmers and sell the milk at a slightly higher price. There are now 20 localchoice regions across England, Scotland and Wales, with the milk sourced exclusively from the region where it is sold. Our dairy team shares knowledge with local farmers to help them understand consumer trends, and they can take part in Tesco local marketing initiatives. localchoice sales are currently at 18 million litres last year.
