The Secrets of the Supermarkets Rip Off Food


The Secrets of the Supermarkets

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Food. It's big business. Now, each year,

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we spend something like £5,000 per household on food and drink.

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So the competition for your pound is tough.

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We'll leave no shelf untouched in our quest to champion you,

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the weekly shopper.

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This is a series in which we'll expose the hidden rip-offs

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and let you in on the tricks of the food trade.

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And, most importantly, we'll show you how to be a smart shopper.

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Welcome to Rip Off Food.

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Today we're checking out supermarkets.

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We're going hi-tech to show you how they can influence

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what we buy without us even knowing it.

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You actually can put stuff in the trolley with no mental recollection of doing it. It's habit.

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How the packaging on some of your purchases could leave you wanting more.

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-Oh, my goodness, it's a third full.

-Absolutely.

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And how Britain's dairy farmers believe they are being milked for all they've got.

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We cannot wear these price cuts

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and it's literally driving farmers out of business.

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The UK grocery market is worth over £150 billion

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and it's dominated by the supermarkets

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where 82% of that money is spent.

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Now, around a third of the products displayed are special offers.

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But what you may not realise

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is that some special offers are not that special.

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In these times of austerity, a discount will always attract our attention.

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So when supermarkets put products on special offer

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it's only right that most customers take it for granted

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that there is a bargain to be had.

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-We're suckers for it, aren't we?

-We are, yeah.

-Yeah.

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Every time I go shopping, I'll look for what's on offer

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and that kind of influences what I buy really.

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Yup, anything you can get better value for.

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I've no loyalty to any particular brands.

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You sometimes find that the price is really exaggerated

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so the special offer is actually the normal price.

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I'm always very cautious cos I don't know why it's a special offer,

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what makes it cheaper now.

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I'm always looking for a low price but if there's buy-one-get-one-free then defiantly, yeah.

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A recent survey by consumer champion Which?

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followed the fluctuations of almost a quarter of a million prices at supermarkets around the UK

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between January 2011 and February 2012.

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They described what they found as "dodgy pricing tactics"

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because some of the special offers weren't what they appeared.

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The supermarkets would like us to believe we are all getting a bargain

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but if you look behind the prices, if you look at the details,

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watch out, you might not be getting the special offer that you thought you were.

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This is happening even though government introduced

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a Pricing Practices Guide in 2010 to stop consumers being

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misled by special promotions.

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The guideline states that a product can only go on special offer

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if the price has remained the same for 28 days before being reduced.

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But Which? found that in some cases these rules weren't being followed.

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A trick that came up time and time again

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is the price of a product being whacked up

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just before it was put on special offer.

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So it looks like your saving a big deal on the previous price.

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Actually that was roughly the price you would have paid a few weeks ago anyway.

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Not so special.

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One example the survey highlighted was a so-called special offer

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on strawberries by online supermarket Ocado.

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The fact is that the price of the strawberries had been increased

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by 49p for less than two weeks before it was reduced

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and then put on special offer.

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Clearly against the guidelines.

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And then the special offer lasted for nearly three months.

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Well, I don't think that's playing by the rules, do you?

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The special offer price running on and on and on for weeks if not months.

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It's not special if it's the price that

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it's on display for week after week after week.

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Another example highlighted

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was an ASDA multibuy offer of ten Muller yoghurts for £4.

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That's 40p a pot.

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While a single pot cost 61p.

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So it seemed a good offer.

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But directly before and after the multibuy offer period,

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a single pot of Muller yoghurt cost only 30p -

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which would have meant that ten pots cost £3.

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Not such a bargain multibuy offer after all.

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They blame human error but really it's just incredible

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to believe that across these hundreds of thousands of examples

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it's simply down to individuals getting it wrong.

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This looks systematic to us across lots of supermarkets.

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They now need to clean their act up.

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If they won't, then it's time for the government to step in,

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toughen up the rules and properly enforce them.

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Otherwise it's consumers that will foot the bill, yet again.

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Ocado told us that they are committed to providing clear

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and accurate information and that regrettably on this one

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isolated occasion this specific promotion did not explain

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their offer in the required detail.

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They are committed to ensuring this doesn't happen again

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and will continue to heavily monitor their processes accordingly.

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We contacted ASDA who said that this was a rare instance of human error

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and this year they will move from a manual to an automated system.

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They added that meanwhile in May

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they implemented a new checking procedure

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across the entire ASDA grocery website

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to ensure all price cuts are triple checked before they appear online

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and appointed an independent audit team to monitor

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the prices displayed to spot and remove any pricing errors.

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Supermarkets use special offers to tempt us into their stores.

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And when it comes to staple products like milk

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they constantly compete to offer the cheapest pinta.

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But is it Britain's dairy farmers who are actually paying the price for cheap supermarket milk?

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The dairy farming industry is in crisis.

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Since the year 2000, nearly half of Britain's dairy farms have disappeared,

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most because they just couldn't make the business pay.

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Supermarkets have a huge impact on the price of food produced in this country

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and nowhere is this more keenly felt than amongst the dairy farmers.

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In Somerset, Neil Darwent has herd of 350 cows producing three million litres of milk a year.

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Fluctuations in the price he's paid per litre has a huge impact.

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Our milk prices recently have been cut

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from around about 28.5p a litre to just over 27p per litre.

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Now that 1.5p per litre price cut might not seems a lot

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but it actually means that's £30,000 off our income in a year.

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When we spoke to him in June 2012 he told us he was being

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paid 27p a litre but it cost 30p a litre to produce the milk.

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And at the same time production costs are rising.

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The key inputs that you need to run a farm like the food,

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the labour, fuel to run the machinery, are all going up

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and that would affect a lot of other businesses as well as farming.

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The problem for us is there's only so much we can do

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to counter that in our business.

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The milk is sold to a processor,

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the middle man between dairy farmers and supermarkets.

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At the moment we're sending

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something like 7,000 litres of milk a day off

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and that goes off to one of the major processors and the processors

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are the people who take our milk, pasteurise it, maybe bottle it

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maybe change it into something else like cheese or yoghurt.

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Whether his daily batch of milk ends up in supermarkets

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or with food manufacturers,

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Neil believes that it's the supermarket's push for profit

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that is driving down milk prices.

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The supermarkets are enjoying a really healthy return on their milk sales.

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A little over a year ago they were enjoying a margin of 22p a litre

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for every litre of liquid milk that they sold,

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whilst processors were making 2p to 3p a litre margin

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and farmers were losing 2p to 3p.

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What's happening now is that in an attempt to woo customers with cheap food,

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supermarkets are cutting retail prices

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but they are still trying to maintain their margins

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by effectively keeping the price squeezed at the bottom end.

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And it's this assessment of the market that has caught

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the imagination and support of politicians and celebrities

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who are backing the dairy farmers' campaign for a better deal.

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Tim Farron is MP for Cumbria - a major dairy faming area.

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Well, the figures obviously fluctuate

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but we know the supermarket's mark up, in other words the profit

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that supermarkets make from milk, has roughly tripled over the last decade

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and we know that the price that farmers receive,

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certainly any profit that they ever receive,

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has either stayed the same or decreased.

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Neil and his fellow farmers' demands appear modest.

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We're producing a good healthy food product here.

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I think that we have to see prices of milk go up in store

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but it is again about the retailer sharing some of that reward

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they are getting with farmers.

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I don't think we need to double the price or ask for a huge increase in price of our milk,

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we just need a fairer share of the pie.

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So I'm going to meet Andrew Opie of the British Retail Consortium,

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which represents the major UK supermarkets,

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to find out what's gone wrong.

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Why is this phrase "cheap milk" just so vital to the supermarket?

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See, milk is definitely one of the staples.

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We all know milk, bread, eggs, for example.

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The things that we buy very regularly

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and we sort of keep an eye on what the price is.

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It's a good indicator of the general standard of value

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that a retailer can offer you. So what we're looking to do

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is get people into the store and when they're in there looking at milk

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and buying their milk, they'll buy all their other groceries.

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OK, you're happy. The consumer's definitely happy.

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Sadly, it's the farmer that's not happy at the moment.

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There are so many farmers

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who are genuinely worried about having to sell their farms,

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give up their herds and change businesses.

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So, you're going to have to help me here

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by trying to nail it as to what the problem is.

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The problem is other companies and the government

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and all the other buyers of milk other than supermarkets

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need to follow the lead of the supermarkets.

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-So what is the lead? Spell out the lead.

-The lead is to work with your processor.

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So if you're buying a lot of milk like the government does,

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for example for prisons and hospitals and schools et cetera,

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do a proper deal with a processors that specifies the price that you'll pay to your dairy farmers

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and make sure therefore that a sustainable price gets to the dairy framers.

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-Let's talk a little about the processor.

-OK, the processor -

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that's where the debate needs to be.

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The processor and the dairy farmer, who's in it for a sustainable future?

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Because we are, we're in it for a long term future.

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Are the processors in the same place that we are with their farmers?

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-And are they?

-Well, you need to ask that then, Gloria?

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You know the business, are they or...?

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Well, I think they need to look at what they're doing.

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We can put our own house in order,

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we're not going to lecture other people but what we will do is

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we will say we blazed the trail in trying to get progressive,

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sustainable supply chains. If we can do it, why can't others?

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So are you now telling me that the farmer shouldn't at all be rankled

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with you, the retailer, at all, it should be just the processor?

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Yeah, it's not us, not the supermarkets this time.

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We sorted our house out and other people need to follow us.

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But Tim Farron is not convinced.

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They are clearly the villains of this piece.

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The supermarkets are saying they, in their direct contract with farmers, pay a fair price.

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That's broadly at least sometimes true but there are very few...

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A small percentage of milk produced in this country is sold directly farmer to supermarket.

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The overwhelming majority of milk is sold through the processors.

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And so of course the supermarket is saying blame the processors

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but then who do you think the processors sell the milk to?

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They sell it to the supermarkets

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and the supermarkets say what price it expects to pay

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so of course the supermarkets are to blame

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and their hands are dirty in this particular case,

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as are the processors,

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but it's simply a case of a system of very powerful supermarkets,

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a handful of very powerful processors

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and thousands of dairy farmers who are exploited.

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And the supermarkets need to confess their part in all this

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and help contribute to making it better.

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We asked Dairy UK, which represent the processors, to comment.

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They said, "Dairy processors have not created this difficult situation

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"for farmers which has arisen because dairy markets have fallen

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"because too much milk has been produced relative to the demand globally."

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They added that dairy product markets are now much more

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volatile than before but lower milk production will generate

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higher market returns and farmers will reap the benefit of this.

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By October 2012, commodity prices had started to rise.

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Major processors such as Wiseman increased payments per litre

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to the farmers who supply them with milk directly

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It's a great shame that supermarkets don't value our farmers

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and that's why politicians should step in and regulate.

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One of the good news stories on the near horizon

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is that the government are doing just that

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and the Grocery Code Adjudicator will be on the statue book this year

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and it must have the teeth to make sure the supermarkets

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and the processors are not allowed to get away with this in the future.

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The Grocery Adjudicator, a supermarket watchdog,

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will address the market dominance of the big retailers

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and ensure suppliers are treated fairly and lawfully.

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By autumn pressure from farmers appeared to be getting results.

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Many supermarkets have raised the milk prices

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they pay to their dedicated pools of dairy farmers.

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But Neil claims that the rises simply reinstate prices

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farmers were paid before the price cuts in spring.

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Every concession has been fought for by farmers like Neil

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but he fears that rising feed costs will put dairy farmers under huge pressure over the winter

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and could still drive them out of business.

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If we don't start to safeguard our domestic dairy industry,

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we are going to have to throw ourselves upon the global market

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and we will have no dairy farmers left in the UK.

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We'll import milk, cheese, yoghurt whatever it is

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and we'll have to hope that that milk is coming from farms

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that adhere to the same sort of welfare and quality standards

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that we are required to in the UK.

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We might be able to get food cheaper from overseas

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but we really don't know what we're eating or where it came from

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and certainly we don't know how it was produced.

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Now, when you're out doing your shopping,

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have you ever noticed how some things have more packaging around them

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compared to what's actually inside?

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Over a third of the packaging found in a typical shopping basket

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can't be recycled.

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Much of the food we buy has layers of wrapping that go straight in the bin.

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So could manufacturers improve on this?

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And in the process make the size of the actual contents obvious at a glance?

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I'm meeting Mark Shayler who has 18 years of design experience

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in improving product packaging.

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I have to tell you, as a consumer,

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I get so frustrated by layer after layer after layer of paper.

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Particularly when you buy something in a cardboard box.

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It seems to be this size and the box is this size.

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-So you must come across that all the time.

-All the time.

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We see it as an issue that is absolutely huge

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and in reality we've got a lot better at it

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but there's still some things to do.

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If I'm being really honest,

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there are times if I'm buying something for somebody else

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and I think, "Gosh, that looks really good in all that packaging,"

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so I'm a bit of a sucker for it sometimes.

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We talk about different occasions, different opening occasions

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and Apple have made a whole science of the seven-second reveal of the iPhone.

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When you pull the box apart there's a little bit of suction

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and that's part of the pleasure of the product

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but for everyday products, maybe we're not really interested

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in the seven-second reveal when we just want to open a can of sardines.

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You can only talk about it for so long. We've got to look at out shopping.

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This is going to be a good lesson for me in packaging.

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We've got a box of chocolate treats here.

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-Open the clip and straightaway...

-Oh, it's only half full.

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Well, you're managing disappointment there, aren't you? That's not really good enough.

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We can drop the size of this appropriately to the weight of the product.

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The irony of course is they taste great.

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And they smell good too.

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When we contacted Gu

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they said that their packaging gives a clear indication of the weight of the product

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and they pride themselves on the honesty and integrity

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of their ingredients and manufacturing process.

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-So what's next?

-Two different products.

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Both exactly the same.

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Yeah, you'd say they were exactly the same.

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When you look really closely, this one's only got 750ml in,

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whereas this one has got a litre in.

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Oh, and actually now that I look at it further, this one seems slightly narrower.

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There's quite a difference then between those.

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Absolutely but there's nothing legally wrong

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because they explained how much is in there.

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Both great products, all of that kind of stuff

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but, at first look you think, hang on a minute.

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-Value wise.

-They're both the same.

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Innocent told us that they don't agree that a consumer

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might mistake the size of the carton at a glance for a litre one

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because their 750ml carton is significantly narrower

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and the height must then remain the same to ensure that the carton can fit on retailer shelves

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which are all set to fit one-litre cartons.

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They also make sure the front clearly tells the consumer

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exactly the size they are choosing.

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Other examples. This is a really interesting one.

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I was struck by the fact that the bag felt half full.

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When you open them up, straightaway.

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Oh, my goodness, it's, like, a third full.

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-Yeah, absolutely.

-That is ridiculous.

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And, interestingly, it's an aluminium foil as well.

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It's used to stop sunlight coming through which then stops

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-a product becoming rancid.

-Yeah, it's good for preservation.

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It's great but you don't need it on the outer, because inside

0:19:280:19:33

you've then got five packs that are all aluminium foiled anyway.

0:19:330:19:37

I'm going to open this one. What I do get in my yoghurty thing

0:19:370:19:40

is a packet that's barely a third full of anything.

0:19:400:19:44

Absolutely and I can't see a reason for it.

0:19:440:19:47

Now are there any legal rules and regulations

0:19:470:19:50

about maybe misleading in terms of the yoghurty sweets or any of it?

0:19:500:19:56

Every single one has labelled correctly.

0:19:560:19:59

So even the yoghurt ones it says 5 x 25 grams, however,

0:19:590:20:05

it's written really small, very near the seal,

0:20:050:20:07

it's not the thing that leaps out at you.

0:20:070:20:10

The thing that leaps out at you is the brand.

0:20:100:20:12

And the size of the bag.

0:20:120:20:13

-Exactly, yeah.

-So that the other message.

0:20:130:20:16

If you want to shop really wisely, you've got to read the labels carefully.

0:20:160:20:19

But the labels could be much easier to read.

0:20:190:20:21

Now that's another story.

0:20:210:20:24

The manufacturers of Yu Fruit told us that the description of the contents

0:20:250:20:31

is clear and easy for a consumer to locate.

0:20:310:20:33

They also said that all of their products are designed

0:20:330:20:36

for snacking and eating on the go - hence the need to use

0:20:360:20:39

aluminium foil for each individual pack.

0:20:390:20:41

They said that if they could use alternative packaging

0:20:410:20:45

without compromising on quality they would certainly do so.

0:20:450:20:49

And this is something they will continuously evaluate.

0:20:490:20:52

Now over-sized packaging is one thing

0:20:570:20:59

but what if the packet stays the same but the contents shrink?

0:20:590:21:03

And then if the price stays the same, that's a shocker.

0:21:030:21:06

In March 2012, Which? reported that over the last year

0:21:070:21:12

certain products had reduced in size.

0:21:120:21:14

Here are some examples. We've got Branston Pickle.

0:21:140:21:18

Now this was a 405g jar before, it's now 360g.

0:21:180:21:25

That's a 45g reduction and it's on sale for exactly the same price.

0:21:250:21:31

That's 12% less for the same price.

0:21:310:21:33

So does the new bottle look noticeably smaller?

0:21:330:21:39

In terms of size? No. They look relatively similar.

0:21:390:21:42

Slight packaging difference but apart from that I don't see much.

0:21:420:21:46

Different calorie count but I can't see what...

0:21:460:21:49

I can't see any difference.

0:21:490:21:51

The size?

0:21:510:21:52

Oh, yeah - that one is a little bit smaller 360g as opposed to 405g.

0:21:520:21:59

That's inflation, isn't it? That's pulling the wool over people's eyes.

0:21:590:22:05

Cheeky!

0:22:050:22:06

And they found products that shrank where the price had gone up.

0:22:060:22:11

Here's another example of Birds Eye Crispy Chicken.

0:22:110:22:14

This was 360g, it's now down to 340g.

0:22:140:22:20

It was on special offer for £2, now at this smaller weight

0:22:200:22:25

it's on sale for £3.85 so we got 20g less for nearly £1.85 more.

0:22:250:22:34

In fact, the only thing that hadn't changed was the size of the box.

0:22:340:22:40

I think if they decrease the size

0:22:400:22:42

and keep the box the same size then that's pretty deceptive actually.

0:22:420:22:45

Part of the reason I don't buy things like this is because I can't see

0:22:450:22:48

what the size is so I would rather buy something where I see it clearly.

0:22:480:22:52

I think that's a little bit out of order.

0:22:520:22:55

People go for their brand because they remember the picture and stuff

0:22:550:22:58

and they don't necessarily look at the grams and such.

0:22:580:23:00

It's not value for money especially if prices continue to go up as well.

0:23:000:23:05

Blackcurrant jam, used to be a 454g jar, it's now 400g jar.

0:23:050:23:12

That's an eighth smaller and it's exactly the same price,

0:23:120:23:16

so you're paying the same money for a jar that's 54g less in weight.

0:23:160:23:22

So we asked the food manufacturers to comment.

0:23:230:23:26

Streamline said that it was part of a re-design and re-launch strategy

0:23:260:23:30

and an alternative to a price increase

0:23:300:23:33

in the face of huge increase in raw material costs.

0:23:330:23:37

They also said that, historically, jams were sold in pound jars, 454g,

0:23:370:23:42

however many consumers felt these were too large.

0:23:420:23:46

Birds Eye said that they are facing steep rises in commodity prices

0:23:470:23:50

and have made a small reduction in the weight

0:23:500:23:54

of their Crispy Chicken in order to keep prices low.

0:23:540:23:57

Whilst it's retailers that set prices in store,

0:23:570:24:00

they are working closely with them to devise promotions

0:24:000:24:03

that will benefit their consumers and offer value for money.

0:24:030:24:06

Branston Pickle told us they would prefer not to comment.

0:24:080:24:12

Now, here's a question.

0:24:160:24:18

Are we shoppers always the free agents we think we are?

0:24:180:24:21

Do supermarkets encourage us to spend

0:24:210:24:23

by diverting our attention in subtle ways that we may not notice?

0:24:230:24:26

Observing shoppers behaviour is now a science

0:24:340:24:37

and Philip Adcock has spent 20 years

0:24:370:24:39

analysing the habits of consumers in 17 different countries.

0:24:390:24:43

Once in a supermarket people take in

0:24:430:24:47

and act on information at a subconscious level.

0:24:470:24:50

The experience of shopping in a supermarket has become quite simply overwhelming.

0:24:500:24:55

We have 50,000 products to choose from

0:24:550:24:58

and our brains aren't wired to make those sorts of decisions.

0:24:580:25:00

So that leads to what we term brain overload.

0:25:000:25:03

We make irrational guesses instead of sensible purchasing decisions.

0:25:030:25:05

We asked Philip to carry out a little experiment for us

0:25:050:25:10

up in Scarborough in North Yorkshire.

0:25:100:25:11

We invited a local resident, Sarah Berry who works part time

0:25:110:25:16

and has three children, to let us follow her during a family shop.

0:25:160:25:19

I probably go to the supermarket about two or three times a week.

0:25:210:25:25

I spend £80-100 on a bigger shop

0:25:250:25:28

but maybe a couple of times a week it'll be more like £30-40.

0:25:280:25:32

What we're going to do today is ask you to take part in an experiment.

0:25:320:25:36

I'm going to ask you to wear these glasses and go round and do your normal shopping.

0:25:360:25:39

-What we're looking for is to see exactly what you look at when you're shopping in this store.

-OK.

0:25:390:25:44

By using these intriguing glasses to track eye movements,

0:25:450:25:48

Philip and his team can see what really influences Sarah's purchases.

0:25:480:25:53

Off you go, have a normal shop.

0:25:530:25:55

-OK, thank you, see you later.

-See you later.

0:25:550:25:58

Near the entrance is a wide aisle which encourages the shopper to

0:26:050:26:08

slow down, acclimatize and let our eyes adjust to the light.

0:26:080:26:12

A common tactic is to place the first special offer right in the middle of this zone.

0:26:140:26:19

And Sarah responds.

0:26:190:26:21

More and more purchasing gets done as what we call single scripted behaviour.

0:26:210:26:25

That's acting on auto pilot. Like driving a car, shaking hands.

0:26:250:26:28

You have products that you take an interest in and buy.

0:26:280:26:31

You actually put stuff in the trolley

0:26:310:26:33

with no mental recollection of doing it. It's habit.

0:26:330:26:37

Fruit and veg are often located quite near the entrance

0:26:370:26:40

because gives a fresh healthy feel-good impression.

0:26:400:26:43

Then Sarah sweeps down the chiller section where there's a huge array of yoghurts.

0:26:440:26:49

Sometimes you get a bit, "Oh, which one?" when there are so many to choose from

0:26:500:26:54

and that's when sometimes you do just grab what's in front of you

0:26:540:26:57

cos you're not always shopping without the children.

0:26:570:27:00

So that made it a bit easier and maybe looked a bit longer than I would have done normally.

0:27:000:27:05

The more she shops, the further round the store she goes,

0:27:080:27:11

the more she'll get into automatic shopping mode,

0:27:110:27:13

and the more things she'll buy irrationally.

0:27:130:27:15

She'll start responding to brand names, brand logos, special offers.

0:27:150:27:19

Supermarkets typically have what's known as a power aisle

0:27:190:27:23

which is the busiest along the central spine of the store.

0:27:230:27:27

The aisles which branch off have special offer displays

0:27:270:27:30

located at the ends.

0:27:300:27:32

These signal a really important offer making a shopper stop and look.

0:27:330:27:38

Brands will pay extra to secure a place for their products

0:27:380:27:41

in this prominent location. They're called gondola ends.

0:27:410:27:45

What people tend to do is you walk down the main aisle

0:27:450:27:48

and look into the other isles, trying to spot

0:27:480:27:50

something of interest or a brand they recognise that they need.

0:27:500:27:53

They'll go down that isle or just ignore it and walk on.

0:27:530:27:56

There's an old fashioned myth that we blindly go up and down every isle in the supermarket. We don't.

0:27:560:28:01

We pick the ones we need to go up and down and that's it.

0:28:010:28:03

Products with high profit margins tend to be placed at eye level

0:28:050:28:08

which immediately attracts the shopper.

0:28:080:28:11

Often basic ranges are less conveniently located.

0:28:110:28:15

Shoppers always tend to buy more than they bargain for.

0:28:150:28:17

They'll always say they don't but they do.

0:28:170:28:19

They make impulse purchases.

0:28:190:28:21

We're all tempted by the bar of chocolate the cream cake, the bottle of wine

0:28:210:28:24

and our brain just takes over and gives us an emotional fix.

0:28:240:28:28

After this 40 minutes of shopping around a supermarket, "Oh, I'll have a glass of wine with my partner."

0:28:280:28:34

I recognise that.

0:28:340:28:35

All that's left now is for Sarah to find out how much she's spent.

0:28:350:28:39

£43.79

0:28:390:28:40

Did you buy a few things on the spur of the moment?

0:28:400:28:44

Yeah, I always do. Those big red signs with Special Offer.

0:28:440:28:49

What happens now is we take this footage away and analyse it frame by frame.

0:28:500:28:54

Looking at every single time that crosshair stops on what she was looking at.

0:28:540:28:59

So will Philip's analysis of Sarah's shopping trip show us

0:28:590:29:02

how much we're influenced by supermarket tricks of the trade?

0:29:020:29:06

We'll find out the results shortly.

0:29:060:29:09

As you know, sometimes it's hard to work out the best buy

0:29:150:29:17

when it comes to comparing similar products on supermarket shelves.

0:29:170:29:22

Take fruit and veg for example.

0:29:220:29:25

Are we better buying loose or pre-packaged?

0:29:250:29:29

Which is better value?

0:29:290:29:31

I'd normally go and get them loose and pick the fruit I want.

0:29:310:29:34

If possible, I'd buy them loose.

0:29:340:29:36

You can often find that bagged ones are cheaper.

0:29:360:29:39

Hmm, 50-50, I think.

0:29:390:29:41

I quite like buying it loose. It feels more real to me.

0:29:410:29:44

And are supermarkets really helping us to make the right choice?

0:29:450:29:49

In 2012 Which? carried out a survey of supermarkets across the UK

0:29:530:29:58

and found evidence of inconsistent pricing

0:29:580:30:01

in all the supermarkets they reviewed.

0:30:010:30:04

What we found quite simply

0:30:040:30:06

is that shoppers are completely baffled

0:30:060:30:09

and bewildered by the mess of pricing

0:30:090:30:11

that you find in the supermarket.

0:30:110:30:13

Very often in the fruit and veg department for example

0:30:130:30:17

you'll see products priced by pound, by kilogram,

0:30:170:30:20

products priced individually. You just can't compare to them.

0:30:200:30:24

You can't work out, unless you're a rocket scientist with a computer,

0:30:240:30:27

exactly what you're buying and whether you're getting right deal from the right product.

0:30:270:30:32

For instance if you're buying, say, five loose bananas,

0:30:330:30:37

it may be priced by banana, by kilo or by bag.

0:30:370:30:43

But the comparisons aren't always easy to make

0:30:430:30:45

and that's the quandary of unit pricing.

0:30:450:30:48

Today, we're going to carry out a little shopping experiment.

0:30:480:30:51

We're going to see how difficult it is for some shoppers

0:30:510:30:53

to compare fruit and vegetables which are pre-packed

0:30:530:30:57

with fruit and vegetables which are sold loose.

0:30:570:30:59

To tackle this unit pricing challenge, we've chosen a crack team of shoppers.

0:31:010:31:05

There's a mathematician, PhD student Tom.

0:31:060:31:10

Barbara is a grandmother with bags of experience.

0:31:100:31:13

And a number-crunching accountant, Paul.

0:31:130:31:17

I'm meeting them for a coffee to explain their task.

0:31:170:31:20

They're going to buy one fruit and one veg each.

0:31:200:31:22

And by comparing like for like choose the best value on the shelf.

0:31:220:31:26

Barbara, in your case, you're looking for red onions and bananas.

0:31:280:31:33

Tom is looking for Bramley apples and carrots.

0:31:330:31:37

And then Paul is looking for peppers and also plums.

0:31:370:31:43

And to use whatever weighing tools

0:31:430:31:45

but no calculators so you've got to use the old brainbox.

0:31:450:31:48

Absolutely.

0:31:480:31:49

Bit concerned that I can't use my calculator but I'll give it a go.

0:31:490:31:54

The unit pricing survey covered all major supermarkets chains

0:31:560:32:01

but we're heading for the biggest, Tesco,

0:32:010:32:03

just across the road from the cafe.

0:32:030:32:06

Good shopping and I'm about to time your ten minutes as from now.

0:32:060:32:09

By law, retailers have to display both the selling price

0:32:110:32:14

and the cost per unit such as per 100g or per individual item.

0:32:140:32:19

The main point is that it should be unambiguous,

0:32:190:32:22

easily identifiable and clearly legible.

0:32:220:32:26

Ten minutes later, the trio returns.

0:32:260:32:29

They bought six items and had to make calculations

0:32:290:32:32

or weigh products to make comparisons in all cases.

0:32:320:32:35

We'll review three of their purchases.

0:32:350:32:39

Paul, the accountant, of course. Let's look at the peppers.

0:32:390:32:42

There was a choice of loose, packet of four or packet of three so there was some mental arithmetic.

0:32:420:32:47

The loose peppers were 80p each.

0:32:470:32:50

The pack of three at £1.65 works out at 55p a pepper.

0:32:500:32:55

But the bag of four at £2 works out cheapest - that's 50p each.

0:32:550:33:01

What's interesting, if you'd been buying the four loose,

0:33:010:33:05

it would have been £3.20. That's quite a difference in price.

0:33:050:33:08

So a saving of £1.20 -

0:33:080:33:09

as long as you're good at doing sums in your head!

0:33:090:33:13

So, how was it then, Barbara?

0:33:130:33:15

It was fine but it took a little longer

0:33:150:33:17

than I would normally spend buying two items.

0:33:170:33:21

Life's too short, to be honest.

0:33:210:33:23

-Do you think in kilos or pounds?

-Pounds.

0:33:230:33:26

To compare loose red onions with bagged,

0:33:260:33:29

Barbara had to find the supermarket scales.

0:33:290:33:33

At 85p a kilo, loose onions are a better buy than the bagged ones

0:33:330:33:36

which at £1.20 a bag works out at £1.71 a kilo.

0:33:360:33:42

And better value than a special offer of two bags for £2.

0:33:420:33:47

That's still £1.43 a kilo.

0:33:470:33:50

I mean, I'm astounded by that.

0:33:500:33:52

Particularity as this is such a basic food.

0:33:520:33:55

I would think most people would go and buy onions on a regular basis

0:33:550:33:59

and if we all spent the time on the scales trying to weigh out our food,

0:33:590:34:04

there would be a massive queue of people

0:34:040:34:06

just putting all their items on the scales trying to work out best value.

0:34:060:34:10

Well, Tom, being the age you are, you would definitely think in kilos.

0:34:100:34:13

Yes, yes. I had to do a few hard sums.

0:34:130:34:16

I think they purposefully make it confusing with the packaged things

0:34:160:34:19

by having an unusual weight like 1.2kg rather than 1kg

0:34:190:34:24

so you can't work out the price per weight very easily.

0:34:240:34:27

A 1.2kg bag of carrots cost a pound

0:34:290:34:31

which a mathematician like Tom could work out to be 83p a kilo.

0:34:310:34:37

And the loose carrots were 78p a kilo - so Tom chose the best value.

0:34:370:34:42

-So you got the cheapest.

-Yeah, it wasn't straightforward to work out, I mean,

0:34:440:34:48

I'm doing a maths PhD, so my mental arithmetic's all right

0:34:480:34:53

but you don't have time to do that kind of thing in the supermarket.

0:34:530:34:57

Our crack team got it right but would the average shopper

0:34:570:35:00

bother to spend the time on the weighing and the mental arithmetic?

0:35:000:35:03

I have to say I am very impressed. Our shoppers did extremely well.

0:35:050:35:08

They all managed to buy the cheapest.

0:35:080:35:11

And I think you'll agree that some of the results are pretty staggering.

0:35:110:35:15

The only thing I would say is it took them just under seven minutes

0:35:150:35:18

to buy just two items in the fruit and veg department.

0:35:180:35:21

So come on, supermarkets, sort it out.

0:35:210:35:23

People are telling us at Which? that what they want

0:35:240:35:27

is simply to have the stress and the hassle

0:35:270:35:30

and the sheer bewilderment of pricing removed.

0:35:300:35:33

They want it to be simple easy and quick so that

0:35:330:35:36

when you're in the supermarket with the kids

0:35:360:35:38

under the pressure of time

0:35:380:35:40

you don't have to have a calculator and a database of prices

0:35:400:35:43

to work out whether you're getting the right deal or not.

0:35:430:35:47

We asked Tesco to comment. They said it's an industry-wide issue,

0:35:470:35:51

not unique to Tesco,

0:35:510:35:52

and referred us to the British Retail Consortium statement

0:35:520:35:55

that, "Official figures have recently shown

0:35:550:35:57

"the price of food is helping keep overall inflation down,

0:35:570:36:01

"with competition between the supermarkets playing a big part.

0:36:010:36:06

"Customers aren't fools and have no difficulty finding best value."

0:36:060:36:09

"The law gives shops the option of selling by weight

0:36:100:36:14

"or by unit for products such as pre-packed fruit and vegetables.

0:36:140:36:18

"With some things - eggs, apples, bananas -

0:36:180:36:20

"how many they're getting matters more to customers than the overall weight."

0:36:200:36:26

Now, supermarkets beware,

0:36:300:36:31

if shoppers get fed up of having to weigh and compare the options to get the best value,

0:36:310:36:35

they could end up going to the fruit and veg market

0:36:350:36:37

where there's always a person on hand to weigh your purchases for you.

0:36:370:36:41

Earlier, Sarah Berry took part in a unique shopping experiment

0:36:470:36:52

under the close scrutiny of psychologist Philip Adcock.

0:36:520:36:57

He recorded her eye moments to see what influenced her shopping behaviour.

0:36:570:37:02

Now Sarah's been invited to her own premiere in London's West End.

0:37:020:37:07

I have to tell you for nothing, I've been many things in my time

0:37:100:37:13

but an usherette at cinema I have not. However, all in a good cause

0:37:130:37:17

because Sarah, our lovely shopper, is here. Some popcorn for you.

0:37:170:37:21

-Thank you.

-Philip, our shopping behaviour expert, one for you as well.

0:37:210:37:25

Anyway, it's great to see you.

0:37:250:37:27

So, the famous glasses.

0:37:270:37:28

What do you learn by watching somebody through these glasses?

0:37:280:37:31

The first thing is the brain can only process 5% of the information it get from the eyes.

0:37:310:37:36

So, first of all, we can look at all the stuff it's getting that it just can't cope with.

0:37:360:37:40

-Give me an example.

-In terms of special offers,

0:37:400:37:43

we see a special offer in the supermarket every one and a half seconds.

0:37:430:37:46

You can't do the maths to work out that special offer that quick,

0:37:460:37:49

so we have to understand where people look,

0:37:490:37:51

what is the information that they can process,

0:37:510:37:54

and what is superfluous and they can't cope with.

0:37:540:37:56

And do you find that that's the norm for the average shopper?

0:37:560:37:59

That we just can't cope with it all,

0:37:590:38:01

the brain can't take it all in, so we just make snap decisions.

0:38:010:38:04

That's the human race.

0:38:040:38:05

Our brains are full so we're trying to make all these decisions in the 21st century.

0:38:050:38:08

It's taken us 600 million years to evolve,

0:38:080:38:10

and we've created the supermarket in 120 years.

0:38:100:38:13

We haven't yet evolved to shop in a supermarket.

0:38:130:38:15

Sarah, are you quite irrational when it comes to shopping or are you quite planned?

0:38:150:38:19

Hmm, I try to be planned but I always forget the list that I make

0:38:190:38:23

so you have a plan of the next few days of what meals are going to be.

0:38:230:38:26

Do you have to watch the pennies? What's your budget like?

0:38:260:38:29

Yeah, well, tricky. We don't really have a budget.

0:38:290:38:32

Maybe we should do.

0:38:320:38:34

So now you've selected some clips, have you?

0:38:340:38:36

We've got some clips of some interesting behaviour,

0:38:360:38:39

some good ways of looking at your decision making processes

0:38:390:38:41

and what actually attracts your attention in the supermarket.

0:38:410:38:44

I can't wait.

0:38:440:38:45

So here we are, in we go into the shop.

0:38:450:38:50

It's quite a big open area.

0:38:520:38:53

This is what we call the deceleration zone.

0:38:530:38:56

and it slows you down to get you into a shopping mood.

0:38:560:38:58

Heading towards the offer. As we were setting up,

0:38:580:39:00

she was looking at this offer a number of times

0:39:000:39:02

and had already conditioned herself to buy this offer.

0:39:020:39:05

That's the one I remembered.

0:39:050:39:07

Your eye is never still. It moves around in a series of jerky movements,

0:39:070:39:10

which are called fixations each time it stops.

0:39:100:39:12

Sarah's already on the "Save 20p" bit.

0:39:120:39:15

Yeah, the first thing that has attracted her was the big "Save 20p" sign.

0:39:150:39:18

And you can see by how many times the eye's moving around,

0:39:190:39:22

focusing on different things, this is very mentally taxing.

0:39:220:39:24

And here we are looking at more vegetables.

0:39:240:39:26

You see the ones you want and, unfortunately, there's only one left in the box.

0:39:260:39:31

We don't like buying the last ones, consumers in this country,

0:39:310:39:34

so you then decide to leave that one. Everybody else has left it.

0:39:340:39:37

So now we're leaving the produce section

0:39:370:39:39

and looking at the yoghurts and chilled deserts.

0:39:390:39:41

What's on special offer and what isn't?

0:39:410:39:43

When you've got such a choice in front of you

0:39:430:39:45

it's very hard to make rational decisions,

0:39:450:39:47

so by using the price tickets to reduce that choice,

0:39:470:39:49

helps you to limit what you have to mentally consider at that moment.

0:39:490:39:52

Another product catches your eye.

0:39:520:39:54

Start with own label, there you are,

0:39:540:39:56

then you spot the branded one is actually better value.

0:39:560:40:00

I can't remember, was it bigger?

0:40:000:40:02

Bigger for less money, I think. 69 versus 85.

0:40:020:40:08

Yeah, cos you wouldn't expect the branded stuff to be less

0:40:080:40:11

because there was no offer on there either. I don't think.

0:40:110:40:13

Then you spot another branded one with an offer,

0:40:130:40:16

and, very cleverly you check for a reference price

0:40:160:40:19

so £1.19 compared to what?

0:40:190:40:21

See if you look.

0:40:210:40:23

-Whoa, that was a good one.

-Didn't even know I did that.

0:40:230:40:26

Much of what we do in the supermarket, because we're at the mental limit,

0:40:260:40:29

we don't remember literally seconds later.

0:40:290:40:32

And here's a grab and go purchase coming up, look, it goes

0:40:320:40:36

straight in the basket and you turn away, you see another temptation.

0:40:360:40:40

A massive display of promoted products,

0:40:400:40:43

10, 12, 14 different promotions on the back of that fixture.

0:40:430:40:45

Your brain now is overloaded.

0:40:450:40:47

You're trying to work out the good deals, the products you need, the products you like,

0:40:470:40:50

the better value, the not so good value, but you can and you're doing this.

0:40:500:40:53

Are you quite happy with what you bought?

0:40:530:40:56

This is just quite typical that I've got a lot of things there that

0:40:560:40:59

I didn't go in for

0:40:590:41:00

but I've got everything that I needed for the next few days so...

0:41:000:41:04

How do you think she did, Philip?

0:41:040:41:05

That was advanced shopping.

0:41:050:41:07

You checked out the deals, if they didn't appeal, you ignored them,

0:41:070:41:11

you weren't duped in any way.

0:41:110:41:13

Typically, 60% of supermarket purchases are what we call grab and go.

0:41:130:41:17

You don't check the price or the value, you just walk in,

0:41:170:41:19

you don't have to think about it.

0:41:190:41:21

That's what most supermarket shopping is.

0:41:210:41:23

Sarah - only 26% of her purchases were like that

0:41:230:41:26

but still 26% of purchases were.

0:41:260:41:28

We all want to become better shoppers and obviously save money

0:41:280:41:31

and not be ripped off,

0:41:310:41:33

so what are your tips to help us be a better shopper?

0:41:330:41:35

Typically, an adult will spend £150,000 in their lifetimes in supermarkets.

0:41:350:41:39

If you can save 10%, that's £15,000, so go about it as a process.

0:41:390:41:44

Have a list, a great shopping list they'll give you,

0:41:440:41:47

it's the till roll from last week.

0:41:470:41:49

It'll tell you what cost more last week, what's gone up this week. What's on offer this week.

0:41:490:41:53

Another one is take your time.

0:41:530:41:55

We all say we haven't got any time for this, time for that,

0:41:550:41:57

but we spend three minutes in the coffee shop waiting for the skinny latte to be made.

0:41:570:42:02

Spend it in the supermarket and save 10, 15, 25%.

0:42:020:42:05

Another tip is don't ever go shopping in a supermarket when you're hungry.

0:42:050:42:08

Try and have something before you go in

0:42:080:42:10

and if, after 20 minutes, you start to flag, start to get tired,

0:42:100:42:13

you still got 25,000 square foot of store to shop, leave,

0:42:130:42:17

put some stuff in the car, have something to eat outside and come back in.

0:42:170:42:20

The convenience of supermarket shopping -

0:42:260:42:28

almost everything you need under one roof - all of that is clear.

0:42:280:42:32

But don't be lulled into thinking that all these retail giants

0:42:320:42:35

have the consumer's interest at heart.

0:42:350:42:37

Do try to resist that impulse to just grab and go.

0:42:370:42:41

Think about it and check the offer

0:42:410:42:43

before you hand over your hard-earned cash.

0:42:430:42:47

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