Tesco revamps bakery packaging and displays to win back shoppers put off by rising prices

by Gemma Charles, Marketing 17-Jun-08, 08:30

LONDON - Tesco is overhauling its entire bakery section and product packaging in a bid to win over consumers put off by the rising cost of baked goods.

The revamp, which takes effect from this week, spans in-store fixtures and fittings, product labels and point-of-sale material.

Packaging carries the products' names written over a flour effect to more clearly differentiate the standard range from Tesco's more expensive 'standard plus' products. The Finest bakery line is unaffected by the refresh.

The new look has been created by branding agency Honey Creative.

The strategy is aimed at driving footfall to Tesco's bakery section, where point-of-sale material will communicate the expertise of its in-store bakers.

The major supermarkets have focused their marketing messages on bakery products to counteract the effect of escalating wheat prices.

Asda's first ad campaign after appointing Fallon to its account last year featured comedian Victoria Wood working in its bakery section to demonstrate the fact that products are baked from scratch in-store.

Last year Morrisons used Denise van Outen in a TV ad highlighting the fact that it baked bread in-store.

High-street bakery chain Greggs has passed on some of the burden of the rising cost of raw materials to its customers by putting up prices across its range of pastries and pies.

Despite facing greater cost pressures, the company has vowed to increase its adspend for 2008 by 50% from £3m to £4.5m.

Data file: wheat

Wheat prices have hit record levels this year due to poor harvests, high demand in the Far East and the increased use of grain to produce biofuels.
Premier Foods has cut its promotional spend after its wheat costs doubled in the second half of 2007.
Associated British Foods has said prices could rise by as much as 10% in the coming months. This would push the average cost of a loaf from £1.09 to nearly £1.20.