0:00:02 > 0:00:06Britain's supermarket landscape has been turned on its head.
0:00:06 > 0:00:08Over the last few years,
0:00:08 > 0:00:12how and where we shop has changed beyond recognition.
0:00:14 > 0:00:18The discounters, Lidl and Aldi, are the rising stars, and the
0:00:18 > 0:00:22traditional supermarkets have had to raise their game to compete.
0:00:23 > 0:00:26We have more choice than ever before,
0:00:26 > 0:00:29and the days of loyalty to one store are gone.
0:00:29 > 0:00:33But what does this intense competition actually mean
0:00:33 > 0:00:35for the food in our trolleys?
0:00:37 > 0:00:39'We're going behind the scenes
0:00:39 > 0:00:42'with the country's leading supermarkets...'
0:00:42 > 0:00:43Yeah!
0:00:43 > 0:00:47'..to find out how they're using the latest technology and science
0:00:47 > 0:00:49'to stay ahead of the competition...'
0:00:49 > 0:00:51Shop!
0:00:51 > 0:00:54'..and keep up with our rapidly changing demands.'
0:00:56 > 0:01:00I'm Gregg Wallace. I've worked in the food industry all my life.
0:01:01 > 0:01:04I want to investigate the hidden ways supermarkets produce
0:01:04 > 0:01:06our everyday foods.
0:01:07 > 0:01:09And I'm Babita Sharma,
0:01:09 > 0:01:13a news journalist who grew up behind the counter of a corner shop.
0:01:14 > 0:01:18I want to know the tricks of the trade being used to win our cash.
0:01:21 > 0:01:26We're looking at the latest tactics in the supermarket wars.
0:01:26 > 0:01:30This time, it's the hidden science the supermarkets are using
0:01:30 > 0:01:31to get one up on their rivals.
0:01:33 > 0:01:37'Whether it's the top dogs going to world record beating extremes...'
0:01:37 > 0:01:41If I can't ever taste properly again on MasterChef, I'm suing!
0:01:42 > 0:01:46'..the innovators getting hi-tech on our fruit and veg...'
0:01:46 > 0:01:49Hard and soft avocados make different noises?
0:01:49 > 0:01:51That's exactly true, that's correct.
0:01:51 > 0:01:54'..the science behind our favourite fizz...'
0:01:55 > 0:01:59Oh, you're supposed to spit! I drank it. Sorry!
0:01:59 > 0:02:03..'or the underdogs scrapping for a piece of the market..
0:02:03 > 0:02:04Unless you change, you die.
0:02:05 > 0:02:09We're going to get the inside track on how the supermarkets bring us
0:02:09 > 0:02:13the food we buy, and what we find may change the way you shop.
0:02:23 > 0:02:28We're in the midst of the fiercest supermarket war in history.
0:02:28 > 0:02:33In recent years, Tesco have reported their biggest ever losses,
0:02:33 > 0:02:37and Sainsbury's and Asda have seen declining sales.
0:02:38 > 0:02:42Meanwhile, Aldi and Lidl have doubled their market share.
0:02:44 > 0:02:47We've all heard about the supermarket wars,
0:02:47 > 0:02:51and we've benefited from a string of price cuts, but this is a war
0:02:51 > 0:02:55fought on many, many levels, and now, more than ever,
0:02:55 > 0:02:58they need some very clever tactics.
0:03:00 > 0:03:02To win in the supermarket wars,
0:03:02 > 0:03:05the stores have to get our favourite products right.
0:03:07 > 0:03:11And today, one of the biggest battle grounds is over a piece of fruit
0:03:11 > 0:03:16that last year saw the fastest growing sales of any food
0:03:16 > 0:03:17in British supermarkets.
0:03:19 > 0:03:22When I was young, an avocado was an exotic treat.
0:03:22 > 0:03:26It was something that my mum brought out at dinner parties when she was
0:03:26 > 0:03:30trying to be posh, but today the avocado has gone mainstream.
0:03:30 > 0:03:34Last year, sales of avocados went up by over 25%.
0:03:34 > 0:03:39That means that we now spend more on avocados than we do oranges.
0:03:42 > 0:03:45As boom times roll in avocados,
0:03:45 > 0:03:49all the supermarkets think the way to win the battle for our cash
0:03:49 > 0:03:51is to solve the ripeness problem.
0:03:52 > 0:03:55Who can honestly say that they haven't had a cheeky squeeze
0:03:55 > 0:03:57in the supermarket aisle?
0:03:57 > 0:04:00You know what it's like, you either get one that's rock hard, or it's
0:04:00 > 0:04:04all black and mushy. You never seem to get one that's perfectly ripe.
0:04:07 > 0:04:11But now, Asda has found an answer to this problem that they hope
0:04:11 > 0:04:12will give them the edge.
0:04:13 > 0:04:16They've got a kind of traffic light system.
0:04:16 > 0:04:19Look - a green one means it's ripe and ready to eat now.
0:04:21 > 0:04:24An amber one means it will be ready in a couple of days.
0:04:26 > 0:04:30And the reddy-pinky one means it will be ready in about five days.
0:04:31 > 0:04:37But how can they be absolutely sure how ripe every single avocado is?
0:04:37 > 0:04:39How much do I owe you, sausage?
0:04:43 > 0:04:46Asda's avocados have arrived at London Gateway Port
0:04:46 > 0:04:49after a four-week journey from South America.
0:04:49 > 0:04:52Their next stop is a hi-tech ripening centre.
0:04:55 > 0:04:58Damien Gray is Asda's avocado buyer.
0:05:00 > 0:05:04It's his job to implement their traffic light system.
0:05:04 > 0:05:07It's gone crazy. Our sales have tripled in four years.
0:05:07 > 0:05:09That's unbelievable, isn't it?
0:05:10 > 0:05:12'And he's under pressure to deliver.'
0:05:13 > 0:05:15What's the cost of not getting it right?
0:05:15 > 0:05:19You disappoint your customers. No-one wants a bad avocado, do they?
0:05:19 > 0:05:21What happens to a disappointed customer?
0:05:21 > 0:05:22Well, they won't come back.
0:05:24 > 0:05:29'But working out how ripe an avocado is presents a unique challenge.
0:05:30 > 0:05:34'The trees fruit for so long that even two avocados
0:05:34 > 0:05:38'from the same branch can be at very different stages of ripeness.
0:05:40 > 0:05:43'So Damien is relying on his supplier, Mark Everett,
0:05:43 > 0:05:45'for a solution.'
0:05:47 > 0:05:49This is a lot of avocados, mate.
0:05:49 > 0:05:52There's about 1.5 million avocados in the store.
0:05:52 > 0:05:53Yeah, I'm not surprised.
0:05:55 > 0:05:59'To identify the exact ripeness of every single avocado,
0:05:59 > 0:06:02'they've brought in the big guns.
0:06:02 > 0:06:05'The very latest in avocado technology.'
0:06:05 > 0:06:08So, is this what you're pinning all your hopes on?
0:06:08 > 0:06:11Your whole traffic light system depends on this big red machine,
0:06:11 > 0:06:12- is that it? - Absolutely, yeah.
0:06:12 > 0:06:16We can check thousands of avocados a day through this machine.
0:06:16 > 0:06:19And did it come in other colours, or did you want it like this?
0:06:19 > 0:06:20We asked for it in red!
0:06:24 > 0:06:28'This grading system costs £350,000.
0:06:31 > 0:06:34'First, the machine spots any problem avocados
0:06:34 > 0:06:36'using infrared technology.'
0:06:38 > 0:06:42The infrared light penetrates the fruits and we can use it to see
0:06:42 > 0:06:45whether there's any cavity defect within the fruit,
0:06:45 > 0:06:47and then grade it out on that basis.
0:06:50 > 0:06:54'Once the infrared has got rid of any fruit with holes,
0:06:54 > 0:06:57'it checks the ripeness in a rather unusual way...
0:06:58 > 0:07:01'..by listening to the avocados.'
0:07:01 > 0:07:07For ripeness, we have two tappers or sensors. One is measuring impact,
0:07:07 > 0:07:10and the second is measuring the resonance.
0:07:10 > 0:07:13So we tap it, and with a small microphone we listen for
0:07:13 > 0:07:17the resonance, and it tells us if it's hard or soft.
0:07:17 > 0:07:18Let me get this absolutely right -
0:07:18 > 0:07:21hard and soft avocados make different noises?
0:07:21 > 0:07:23That's exactly true, that's correct.
0:07:27 > 0:07:29Brilliant, absolutely brilliant!
0:07:29 > 0:07:32Let's put a banana through and see what happens to it.
0:07:35 > 0:07:38'After listening to the avocados, the machine divides them up.'
0:07:40 > 0:07:43So this is it in action, this is now grading them
0:07:43 > 0:07:46and sorting them out into the three different types, yeah?
0:07:46 > 0:07:48Yeah, this is the end process of the grading,
0:07:48 > 0:07:52where we've got fruit going into the traffic light system.
0:07:52 > 0:07:55So you've done this for a reason. How competitive is your business?
0:07:55 > 0:07:58Well, it's a really tough, competitive market.
0:07:58 > 0:08:01And everybody's looking for an edge, but you have to, don't you?
0:08:01 > 0:08:05You've got to do something to make you different to the competition.
0:08:05 > 0:08:07You've got to innovate in this market, absolutely.
0:08:09 > 0:08:13'They've used some clever kit here to guarantee ripeness,
0:08:13 > 0:08:16'but has it worked?'
0:08:16 > 0:08:18I've got to be honest, this one feels a little hard to me.
0:08:22 > 0:08:23It's perfectly ripe.
0:08:23 > 0:08:27These people go to incredible lengths to guarantee that these
0:08:27 > 0:08:30avocados actually match their traffic light system.
0:08:36 > 0:08:40A new battlefield is being created by the discounters, Lidl and Aldi,
0:08:40 > 0:08:42and it's not just low prices.
0:08:45 > 0:08:48With award-winning champagnes and lobster,
0:08:48 > 0:08:52they revealed a lucrative arena - luxury on a budget.
0:08:54 > 0:08:57Everybody loves a bargain, especially if we think we're
0:08:57 > 0:09:00going to get something a little special for our cash.
0:09:00 > 0:09:04Now, the discounters manage to lure the middle classes down their aisles
0:09:04 > 0:09:08with high-end goodies, and now everybody wants a slice
0:09:08 > 0:09:10of the luxury market, and I mean everybody.
0:09:17 > 0:09:21Iceland are best known for cheap and cheerful frozen food.
0:09:21 > 0:09:24They only hold 2% of the grocery market,
0:09:24 > 0:09:27but they're hoping a bit of luxury could help them punch above
0:09:27 > 0:09:30their weight, and they have a new product in mind.
0:09:32 > 0:09:36There is one front where these guys really outperform.
0:09:36 > 0:09:40When mums come to Iceland, they come for desserts,
0:09:40 > 0:09:44and this supermarket is hoping that that will prove a powerful weapon.
0:09:46 > 0:09:49The time they plan to launch their new attack is Christmas,
0:09:49 > 0:09:52the most competitive time in the supermarket calendar,
0:09:52 > 0:09:56and when shoppers most want luxury products.
0:09:56 > 0:09:59The supermarkets start developing their new Christmas treats
0:09:59 > 0:10:01more than a year in advance,
0:10:01 > 0:10:05and by July, they're unveiling their weapons of war to the press.
0:10:05 > 0:10:11So, this is our Wow Hero dessert for this Christmas.
0:10:11 > 0:10:15Iceland see Christmas as a chance to potentially steal around a quarter
0:10:15 > 0:10:20of the frozen dessert market, if they have the right product.
0:10:22 > 0:10:25'Rebecca Stanton is in charge of desserts at Iceland,
0:10:25 > 0:10:29'and has brought me to see the inspiration behind the pudding
0:10:29 > 0:10:31'she's taking into combat.'
0:10:31 > 0:10:33Oh!
0:10:33 > 0:10:36Could I have an intense chocolate, please?
0:10:37 > 0:10:41Forgive me, but this isn't the sort of patisserie I would expect to find
0:10:41 > 0:10:44- in Iceland.- No, but that's what this is all about. We're trying to change
0:10:44 > 0:10:47the way we are, we're really trying to go upmarket.
0:10:47 > 0:10:49So posh people like me would go shopping there?
0:10:51 > 0:10:54'And Rebecca has her eye on a big prize.'
0:10:56 > 0:10:59I'm trying to be the number one in frozen desserts this Christmas.
0:10:59 > 0:11:02We had a slightly rough time of it last year, so this year,
0:11:02 > 0:11:06it's all about making sure that we are in that number one spot.
0:11:06 > 0:11:09'Rebecca has an early design of the dessert she's hoping
0:11:09 > 0:11:11'will help win Christmas.
0:11:13 > 0:11:17'This five layer igloo made of mousse and chocolate has a twist.'
0:11:17 > 0:11:20It's actually all handmade.
0:11:20 > 0:11:21You're kidding me. Really?
0:11:21 > 0:11:24- "Tesco, watch out," right? - Yeah.
0:11:24 > 0:11:27'Doing handmade luxury on a mass scale
0:11:27 > 0:11:29'will be a huge technical challenge.
0:11:31 > 0:11:35'So, to find the patisserie skills Rebecca needs,
0:11:35 > 0:11:37'Iceland have come to France.'
0:11:37 > 0:11:38Hello, Rebecca.
0:11:38 > 0:11:42'Rebecca and dessert technologist, Kirsten Rogerson,
0:11:42 > 0:11:45'are here to oversee the igloo's first production run.'
0:11:46 > 0:11:49This is the first time we're going to be making our actual products
0:11:49 > 0:11:52- that are going onto our shelves. - Did you sleep all right last night?
0:11:52 > 0:11:54No, I never really sleep before a first production.
0:11:54 > 0:11:57There's so much riding on it, there's so much riding on it,
0:11:57 > 0:12:01and we're making sure that the quality off that line is perfect.
0:12:03 > 0:12:08'There are 8,000 igloos in this first production run, so if there
0:12:08 > 0:12:13'are any problems, they could affect £80,000 worth of sales.'
0:12:13 > 0:12:17'Gilles is leading the team of trained patissiers
0:12:17 > 0:12:19'who are making the igloos.'
0:12:19 > 0:12:22How many people does it take to make this cake?
0:12:22 > 0:12:25- 50 people today. - 50 people?!
0:12:26 > 0:12:30It must be more expensive to make the cake by hand than it would be
0:12:30 > 0:12:35- to make it with a machine?- Yeah, it definitely is more expensive.
0:12:35 > 0:12:40But you get something completely unique, and the quality is there.
0:12:40 > 0:12:41'At a tenner a pop,
0:12:41 > 0:12:45'this will be the most expensive dessert Iceland have ever sold.
0:12:45 > 0:12:48'And for now, it's in Kirsten's hands,
0:12:48 > 0:12:53'as Rebecca is heavily pregnant, so isn't allowed on the factory floor.'
0:12:53 > 0:12:54I'll see you out in the packing area.
0:12:59 > 0:13:02'Each igloo is made up of different layers of mousse, cream,
0:13:02 > 0:13:05'and chocolate, sitting on a biscuit base.'
0:13:06 > 0:13:08Is it a buttery biscuit base?
0:13:08 > 0:13:10It's a buttery biscuit base, Gregg.
0:13:10 > 0:13:13Fabulous! You have no idea what that means.
0:13:13 > 0:13:16No, no, I don't catch on your jokes.
0:13:19 > 0:13:22'The big challenge is holding the layers together without them all
0:13:22 > 0:13:26'sinking into each other, so the secret is in the freezing.'
0:13:29 > 0:13:31In order to get those perfect layers,
0:13:31 > 0:13:37we use the freezer to ensure that everything is cold,
0:13:37 > 0:13:39frozen, and not going to move, ready for the next stage.
0:13:41 > 0:13:43'But this is no ordinary freezer.
0:13:45 > 0:13:48'To speed up production, they're using liquid nitrogen.'
0:13:49 > 0:13:52So, just imagine, you have a conveyor belt,
0:13:52 > 0:13:57and a sprayer of nitrogen liquid at -80 degrees.
0:13:57 > 0:14:00So you will cool the top of the product,
0:14:00 > 0:14:04then you put it upside down, and it goes through another tunnel.
0:14:07 > 0:14:11'Liquid nitrogen freezes the igloo in minutes rather than hours.
0:14:12 > 0:14:17'And the fast freezing creates tiny ice crystals,
0:14:17 > 0:14:20'which help maintain the smooth texture of the mousse.
0:14:21 > 0:14:26'But even fast freezing feels like a slow process to Rebecca,
0:14:26 > 0:14:29'who's waiting to see the first of her finished igloos.'
0:14:30 > 0:14:33So, here's a finished product.
0:14:36 > 0:14:38Immediate reaction?
0:14:39 > 0:14:41I'm happy.
0:14:41 > 0:14:43Yeah, really, really happy.
0:14:43 > 0:14:44It does look amazing.
0:14:44 > 0:14:47- I know. - It looks absolutely superb.
0:14:47 > 0:14:49A couple of watch-outs I'm going to ask the factory to be
0:14:49 > 0:14:52- careful of here...- What? - ..is the penguin here looks like
0:14:52 > 0:14:55he's floating a little bit, and I'm going to ask the factory
0:14:55 > 0:14:58to have a look at making sure he's down on the base.
0:14:59 > 0:15:03'I'm not totally convinced that a penguin says high-end patisserie
0:15:03 > 0:15:06'to me, but Rebecca's hoping it widens the appeal.'
0:15:08 > 0:15:09It is a luxury product.
0:15:09 > 0:15:12What this is is luxury for everyone.
0:15:12 > 0:15:14Kids are going to love the penguin.
0:15:14 > 0:15:17I've never seen a grown woman so happy over a penguin cake!
0:15:20 > 0:15:22'But before they leave the factory,
0:15:22 > 0:15:24'the team have to test one more thing -
0:15:24 > 0:15:27'the proof of this pudding is in the eating.'
0:15:29 > 0:15:33When you actually eat all that together, the difference between
0:15:33 > 0:15:36those two textures actually really works together.
0:15:37 > 0:15:40I think you've done jolly well, and I think that is absolutely divine.
0:15:40 > 0:15:45My only word of caution is that the strength of the chocolate
0:15:45 > 0:15:48is stronger, much stronger, than the white chocolate mousse.
0:15:51 > 0:15:56With ten weeks till Christmas, the work ahead is snowballing.
0:15:56 > 0:16:00To be number one in desserts, Rebecca needs to sell out of igloos.
0:16:00 > 0:16:04And there's the small matter of having a baby.
0:16:04 > 0:16:06They'll be pushing them out, and so will I!
0:16:08 > 0:16:11We'll be back later, to see if Rebecca's igloo is
0:16:11 > 0:16:13a Christmas turkey or a Christmas cracker.
0:16:20 > 0:16:23These days, we shop around like never before.
0:16:23 > 0:16:27So one of the biggest challenges in the supermarket wars
0:16:27 > 0:16:31is how to retain our loyalty. But there are certain products
0:16:31 > 0:16:36that the supermarkets know will keep luring us back,
0:16:36 > 0:16:38and one of the biggest is our favourite fizz.
0:16:40 > 0:16:45Prosecco - it might mean light, fizzy, and fun to you and me,
0:16:45 > 0:16:48but to the supermarkets, it is a serious business.
0:16:51 > 0:16:54Unlike Champagne with its big-name labels,
0:16:54 > 0:16:57Prosecco is dominated by own brands.
0:16:59 > 0:17:02And data shows that people who find a Prosecco they like
0:17:02 > 0:17:04will come back for more.
0:17:06 > 0:17:09At Tesco and Lidl, cheap comes out top.
0:17:09 > 0:17:13Their best-sellers are between £5 and £7. But at Sainsbury's,
0:17:13 > 0:17:17it's their premium £10 bottle that's number one.
0:17:20 > 0:17:23Once the supermarkets have a product that brings the customers in,
0:17:23 > 0:17:26they have to keep getting it right,
0:17:26 > 0:17:29and with each Prosecco harvest, that means a fresh challenge.
0:17:34 > 0:17:35So, how do they do it?
0:17:38 > 0:17:41It's the annual harvest in northern Italy,
0:17:41 > 0:17:44and a stressful time for Lisa Rogerson,
0:17:44 > 0:17:46Sainsbury's technical manager for wine.
0:17:49 > 0:17:52What is the biggest challenge that you face?
0:17:52 > 0:17:54Our challenge is, every year,
0:17:54 > 0:17:57even though you are making a new wine from a new harvest of grapes,
0:17:57 > 0:18:02we want our customers almost not to notice that the vintage has changed,
0:18:02 > 0:18:05and for it to taste exactly the same as it did when they bought it before
0:18:05 > 0:18:06and liked it.
0:18:09 > 0:18:14'But that consistency relies on the quality of this year's grapes,
0:18:14 > 0:18:16'and harvesting can be an unpredictable business.'
0:18:18 > 0:18:20So, they're harvesting in this vineyard today,
0:18:20 > 0:18:23they've already started on some other areas earlier last week,
0:18:23 > 0:18:25so we should be able to get an indication of how
0:18:25 > 0:18:28the quality's looking, but, of course, it's still very early days.
0:18:28 > 0:18:30So, a little bit nerve-racking.
0:18:33 > 0:18:38'Prosecco traditionally always came from a designated area of hilly land
0:18:38 > 0:18:40'less than 70km squared.
0:18:41 > 0:18:43'But, to satisfy growing demand,
0:18:43 > 0:18:47'the vineyards have now expanded into the flatlands below.
0:18:52 > 0:18:56'Prosecco from the original area is regarded as higher quality,
0:18:56 > 0:19:01'so for her premium fizz, Lisa sources from the hills.'
0:19:01 > 0:19:02When you have the steeper slopes,
0:19:02 > 0:19:05that's where it gets more sunshine to ripen the grapes,
0:19:05 > 0:19:07- so you get better quality grapes. - So steeper is better?
0:19:07 > 0:19:10The steeper the better, for the grapes, not so much for the legs.
0:19:10 > 0:19:12Not so much for our legs!
0:19:12 > 0:19:14- Good exercise! - Absolutely!
0:19:19 > 0:19:23'Winemaker, Gabriele Cescon, keeps a close eye on quality
0:19:23 > 0:19:26'throughout the harvest.'
0:19:28 > 0:19:30Ciao, Gabriele. Come stai?
0:19:30 > 0:19:32- Bene. - Ciao, come stai?
0:19:32 > 0:19:35- This is Babita. - Mi chiamo Babita.- Gabriele.
0:19:35 > 0:19:36So, how's the harvest going?
0:19:44 > 0:19:46"Molto, molto bella," so it's going well.
0:19:46 > 0:19:48That's good!
0:19:52 > 0:19:54'But if these grapes are to match last year's,
0:19:54 > 0:19:57'they need to have the right sugar levels,
0:19:57 > 0:20:00'so they're immediately taken to the winery,
0:20:00 > 0:20:02'and a sample of the juice is tested.
0:20:04 > 0:20:07'All alcoholic drinks begin with fermenting sugar into alcohol.
0:20:09 > 0:20:13'The more sugar, the more alcohol in the final Prosecco,
0:20:13 > 0:20:16'and Lisa needs a specific amount.'
0:20:16 > 0:20:19So, the number that you get coming out on this screen needs to be
0:20:19 > 0:20:21- over nine. - Pressure!
0:20:22 > 0:20:24Is it going to make it?
0:20:24 > 0:20:27- Oh! 13.3! - Mm-hm.
0:20:27 > 0:20:29- Thumbs up? - Yep, yep, that's good.
0:20:29 > 0:20:31- So... - Does that mean, then, that it...?
0:20:31 > 0:20:33I mean, you said nine was a magic number.
0:20:33 > 0:20:34- Mm-hm. - 13 - is that too high?
0:20:34 > 0:20:36That's a good medium point.
0:20:36 > 0:20:39Not all of that sugar will ferment to alcohol,
0:20:39 > 0:20:41so the final wine is around about 10.5%.
0:20:46 > 0:20:48'These grapes make the grade, so are crushed,
0:20:48 > 0:20:51'and have their stalks and skins mechanically removed.
0:20:53 > 0:20:56'It's then a slow wait for grape juice to ferment.
0:21:04 > 0:21:09'It's six weeks later, and for Lisa, a critical time.
0:21:09 > 0:21:13'She's here to find out whether this year's Prosecco will satisfy
0:21:13 > 0:21:17'loyal customers by matching last year's taste.'
0:21:20 > 0:21:23So, each one of these will make about a quarter of a million
0:21:23 > 0:21:25- bottles of Prosecco. - That's incredible. Each one?
0:21:25 > 0:21:29Yes, and there's 35 of them.
0:21:29 > 0:21:31'Each of these tanks holds still wine
0:21:31 > 0:21:34'from different hilltop vineyards.
0:21:34 > 0:21:37'To reach as close a match as possible,
0:21:37 > 0:21:40'Gabriele and his team blend those wines together,
0:21:40 > 0:21:42'before the fizz is added.'
0:21:43 > 0:21:44So what he will do is taste
0:21:44 > 0:21:47all of those individual batches of still wine, and decide
0:21:47 > 0:21:50which of those he thinks will blend best together,
0:21:50 > 0:21:54which is quite tricky, because if you taste the still wine on its own,
0:21:54 > 0:21:57it doesn't taste of Prosecco, because at that stage it's very dry,
0:21:57 > 0:21:58it can be quite acidic.
0:21:58 > 0:22:01So it's quite a talent to be able to taste that wine,
0:22:01 > 0:22:03and then know how it will taste once it's sparkling.
0:22:06 > 0:22:08'Now it's down to Lisa to decide
0:22:08 > 0:22:11'if her customers will notice a difference.'
0:22:12 > 0:22:17This is the 2015 vintage, which is what is currently on the shelves,
0:22:17 > 0:22:19but there's no more of this left to be bottled.
0:22:24 > 0:22:27Oh, you're supposed to spit! I drank it. Sorry!
0:22:27 > 0:22:30- It's good, it's very light.- Yes, so it is that light, fresh style,
0:22:30 > 0:22:33sort of floral, fruity aromas.
0:22:33 > 0:22:36- So that's the one that we know worked for you.- Yep.
0:22:36 > 0:22:40- And now we're going to see how it compares to the latest blend.- Yes.
0:22:44 > 0:22:46- Are you feeling nervous, Gabriele? - A little bit.
0:22:46 > 0:22:48- Salute. - Salute.
0:22:49 > 0:22:50Cheers.
0:22:55 > 0:22:56How do you feel?
0:22:56 > 0:23:00Are you happy with the comparison between last year and now?
0:23:00 > 0:23:03Yeah, I think the style and the quality is similar.
0:23:03 > 0:23:05At the moment, they are very, very close, I think.
0:23:05 > 0:23:07You can tell a little bit of a difference at this stage.
0:23:07 > 0:23:11I think once it gets in the bottle and is bought by our customers,
0:23:11 > 0:23:13hopefully it will be very consistent.
0:23:13 > 0:23:16I think we've been quite lucky here, to get something that's so close.
0:23:16 > 0:23:19- Well done! - Thank you.
0:23:19 > 0:23:22You can relax now. You can have the whole bottle!
0:23:25 > 0:23:29'And her customers didn't seem to notice the change in vintage.
0:23:29 > 0:23:32'On the 23rd of December 2016,
0:23:32 > 0:23:38'Sainsbury's sold the equivalent of two bottles of prosecco a second.
0:23:38 > 0:23:41'And the week between Christmas and New Year,
0:23:41 > 0:23:44'it was their biggest-selling product across the country.'
0:23:44 > 0:23:48There's a lot of effort that goes into creating a bottle of fizz.
0:23:48 > 0:23:51Get it wrong, and your customers will just end up going to
0:23:51 > 0:23:54a completely different supermarket. And with a high ticket item
0:23:54 > 0:23:57like prosecco, that would be a huge mistake.
0:24:04 > 0:24:07With unparalleled competition between the supermarkets,
0:24:07 > 0:24:10our biggest retailers have had a wake-up call.
0:24:13 > 0:24:16In a new world of small, budget stores,
0:24:16 > 0:24:20the giant of the supermarket scene, Tesco, is under pressure from below.
0:24:22 > 0:24:26It's not that long ago that one in every eight pounds spent
0:24:26 > 0:24:29in British shops was spent in Tesco.
0:24:29 > 0:24:33Over the last few years, the crown has well and truly slipped.
0:24:36 > 0:24:42In 2015, Tesco reported the biggest losses in British retail history.
0:24:42 > 0:24:46Meanwhile, in the last decade, Aldi has shot up from tenth place
0:24:46 > 0:24:48to become our fifth-biggest supermarket.
0:24:48 > 0:24:52The supermarket giant needed a new strategy, and it seemed like
0:24:52 > 0:24:54their discount rivals had one.
0:24:54 > 0:24:57So, if you can't beat them, join them.
0:25:00 > 0:25:04'When trouble-shooter, Jason Tarry, became commercial boss,
0:25:04 > 0:25:08'Tesco's strategy seemed to be, "Bigger is better".'
0:25:08 > 0:25:12We always wanted to have a comprehensive range for customers.
0:25:12 > 0:25:16We wanted them to not feel the need to go and shop anywhere else,
0:25:16 > 0:25:18like a one-stop shop, that was the idea.
0:25:19 > 0:25:22'To stop customers going to the competition,
0:25:22 > 0:25:28'Tesco stocked an incredible 90,000 products, but that was a problem.'
0:25:29 > 0:25:33I just think we ended up taking it a bit too far, and we weren't
0:25:33 > 0:25:37competitive versus the other supermarkets in the marketplace.
0:25:39 > 0:25:41'The discounters use the opposite strategy.
0:25:41 > 0:25:44'Instead of tens of thousands of products,
0:25:44 > 0:25:46'they only stock a few thousand.'
0:25:47 > 0:25:50You could see the difference if you take something like ketchup.
0:25:50 > 0:25:55At its peak, Tesco had 28 types. Aldi had one.
0:25:56 > 0:26:01And coffee - Tesco had 283 kinds. Lidl had 24.
0:26:03 > 0:26:06'Aldi and Lidl have a smaller range because it saves money.
0:26:06 > 0:26:10'More products mean bigger distribution centres,
0:26:10 > 0:26:14'complex logistics, and more staff stocking shelves.
0:26:14 > 0:26:18'So Tesco have started cutting back on what they stock.
0:26:19 > 0:26:23'But, it is a gamble. Tesco shoppers are used to a massive range.
0:26:23 > 0:26:27'The discounters' customers are not.
0:26:27 > 0:26:29Of course it was risky. I mean, you always worry when you
0:26:29 > 0:26:32take stuff away, rather than add things, for sure.
0:26:32 > 0:26:34We tried to minimise the risk, but there's no doubt about it,
0:26:34 > 0:26:39it was something that did come with some risk.
0:26:39 > 0:26:43'So, do we respond better to more or less choice?
0:26:48 > 0:26:54'To find out, I'm meeting consumer psychologist Paul Marsden.'
0:26:54 > 0:26:56- Paul. - Gregg, good to meet you.
0:26:56 > 0:26:58Good to meet you. What are we doing here this morning?
0:26:58 > 0:27:02We're going to do a psychological experiment on choice, whether
0:27:02 > 0:27:05people like more choice or less choice when they're out shopping.
0:27:05 > 0:27:07That's quite obvious, isn't it? They want more choice, don't they?
0:27:07 > 0:27:09Well, we're going to find out.
0:27:09 > 0:27:11Oooh!
0:27:11 > 0:27:15'Grace Crump runs a jam stall at Greenwich market,
0:27:15 > 0:27:17'offering a range of 24 different flavours of jam.'
0:27:18 > 0:27:21Grace, can I ask you why so many?
0:27:21 > 0:27:24I kind of feel that people like choice.
0:27:24 > 0:27:31And so having a wide range might, you know, encourage people to buy.
0:27:33 > 0:27:36'First, we're going to see how much jam Grace sells in 90 minutes
0:27:36 > 0:27:38'with all 24 flavours on offer.
0:27:38 > 0:27:41'Then we'll limit the options.'
0:27:41 > 0:27:44We're going to reduce the number of flavours of jam out there to
0:27:44 > 0:27:49just six, and see whether that has any impact on how many she sells.
0:27:49 > 0:27:54My husband has always said to me, "You have far too many flavours".
0:27:54 > 0:27:56- Interesting. - So maybe this is
0:27:56 > 0:27:59the ideal opportunity to maybe prove him wrong.
0:28:01 > 0:28:04'First up, the large selection of jams.'
0:28:05 > 0:28:08So I've got mulberry with crab-apple,
0:28:08 > 0:28:11and there's some traditional marmalades.
0:28:11 > 0:28:14'24 flavours seem to be attracting a bit of attention.'
0:28:14 > 0:28:17- Have you ever tried mulberry jam? - No, I haven't.
0:28:17 > 0:28:19OK, have a good day.
0:28:19 > 0:28:21- No jam sale there, mate. - No.- See, they must have
0:28:21 > 0:28:24been interested, otherwise they wouldn't have stopped.
0:28:24 > 0:28:27I've got this strawberry with rose petal...
0:28:27 > 0:28:30'And it looks like we've got a sale.'
0:28:30 > 0:28:31Was it easy to make a choice?
0:28:31 > 0:28:33Oh...
0:28:33 > 0:28:36Actually not, but it's better to have a choice.
0:28:38 > 0:28:40'Or is it?
0:28:41 > 0:28:46'It's time to reduce Grace's range of jams to just six flavours.'
0:28:46 > 0:28:49- Well, thanks a lot. - Did you buy some jam?
0:28:49 > 0:28:52- Yes, I did.- Wouldn't you have rather had more choice?
0:28:52 > 0:28:54I think there's a lot of choice there.
0:28:54 > 0:28:59What about if we offered you 22, 23 different choices,
0:28:59 > 0:29:00Wouldn't you prefer that?
0:29:00 > 0:29:04Well, then I'd be standing here all day reading them, wouldn't I?!
0:29:06 > 0:29:10'After a morning on the market, Grace has sold 50% more jams
0:29:10 > 0:29:14'when she had less on offer. And it's a result that echoes
0:29:14 > 0:29:17'the findings of similar large-scale experiments.'
0:29:19 > 0:29:21You did sell more with a smaller range.
0:29:21 > 0:29:23Do you think your husband might have been right, then,
0:29:23 > 0:29:26- that you had too many? - Yes. Begrudgingly, yes!
0:29:29 > 0:29:33'Psychology tells us that we buy more when there is less on offer.'
0:29:33 > 0:29:35There is a theory in psychology called ego depletion,
0:29:35 > 0:29:39that the brain is a bit like a battery, and it runs out.
0:29:39 > 0:29:42You've basically got only a certain amount of decisions you can make
0:29:42 > 0:29:46during the day, and after that time, you tend to make bad decisions.
0:29:46 > 0:29:49So the idea is that we actually try and conserve our decisions for
0:29:49 > 0:29:53things that matter, and sometimes jam... Well, jam's just jam,
0:29:53 > 0:29:56so people don't want to be forced into using their
0:29:56 > 0:29:58precious decision-making capacity to choose jam.
0:30:00 > 0:30:03The less is more approach is already working for Tesco.
0:30:03 > 0:30:07They haven't reduced their range to the extremes of the discounters,
0:30:07 > 0:30:12but have taken nearly 20% of products off the shelf.
0:30:12 > 0:30:14And they've seen their market share
0:30:14 > 0:30:18rise for the first time in five years.
0:30:18 > 0:30:19In the supermarket war,
0:30:19 > 0:30:23sometimes stealing your rivals' strategy is the way to succeed.
0:30:27 > 0:30:32It's October, and for Rebecca Stanton and the Iceland desserts team,
0:30:32 > 0:30:33Christmas has come early.
0:30:33 > 0:30:35Stand by.
0:30:35 > 0:30:40So, today, the TV filming is going on for all of the adverts.
0:30:40 > 0:30:44In particular, now they're focusing on desserts, which is quite exciting.
0:30:44 > 0:30:47There is a lot of people here making this food look amazing.
0:30:50 > 0:30:54Rebecca is hoping this handmade igloo will help land her
0:30:54 > 0:30:57a Christmas number one in frozen desserts.
0:30:57 > 0:30:59And action!
0:31:01 > 0:31:03There's a lot of pressure on this penguin.
0:31:03 > 0:31:07Iceland boss Malcolm Walker is hoping their luxury on a budget
0:31:07 > 0:31:10strategy will give the supermarket a much-needed boost.
0:31:13 > 0:31:16It's 46 years since we started the company,
0:31:16 > 0:31:20and we've increased our sales and profits every single year,
0:31:20 > 0:31:23until the last couple of years, when the marketplace has just got so tough.
0:31:23 > 0:31:29Everybody's eating away at our market share, so it's a nightmare.
0:31:29 > 0:31:32To survive in this supermarket war,
0:31:32 > 0:31:37Iceland need to crack the luxury market and add to their customer base.
0:31:37 > 0:31:40Last year, yeah, we cocked up over Christmas.
0:31:40 > 0:31:42What we've had to do is reinvent ourselves.
0:31:42 > 0:31:45Everybody's upping the game, so we have to as well.
0:31:45 > 0:31:47Upping the game in what way?
0:31:47 > 0:31:49We've got to do better quality, better products,
0:31:49 > 0:31:53better value and all that translates into lower margin for us.
0:31:53 > 0:31:55But what happens if you don't do that?
0:31:55 > 0:31:59We go out of business. Unless you change, you die.
0:32:05 > 0:32:09With eight shopping days till Christmas, the igloo is finally in store.
0:32:09 > 0:32:11- TV:- Who doesn't love a penguin, eh?
0:32:11 > 0:32:13Pure magic, man!
0:32:13 > 0:32:15But the festive food fight is hotting up.
0:32:18 > 0:32:23So Rebecca and new baby Matilda are sussing out the opposition.
0:32:23 > 0:32:26It's absolutely imperative that you are on top of what your competitors
0:32:26 > 0:32:30are doing, you cannot drop anything.
0:32:30 > 0:32:34So we go in and we take quite a few photographs.
0:32:34 > 0:32:38Sometimes you do get caught doing that and you're not supposed to do it,
0:32:38 > 0:32:42but we do really need to and we know that our competitors do that with us as well.
0:32:42 > 0:32:46By looking at rival products, Iceland get a sense of how they compare.
0:32:48 > 0:32:50So in Sainsbury's today,
0:32:50 > 0:32:53there are quite a few interesting and exciting products.
0:32:53 > 0:32:57Also today, I've nipped into the local Aldi.
0:32:57 > 0:33:02There are a couple of products that we'll be trying over the next couple of days,
0:33:02 > 0:33:04but nothing really that exciting.
0:33:04 > 0:33:05As Christmas approaches...
0:33:05 > 0:33:06Ho-ho-ho!
0:33:06 > 0:33:11..supermarkets receive sales data as often as every two hours,
0:33:11 > 0:33:14so they can see if they need to take action with their marketing.
0:33:14 > 0:33:17You could change TV slots,
0:33:17 > 0:33:20if there's a particular product that needs some extra support,
0:33:20 > 0:33:22or you could change a price.
0:33:22 > 0:33:25Price is the quickest lever that you've got to pull,
0:33:25 > 0:33:26but it is a last resort,
0:33:26 > 0:33:30because you do know that that rush and that real Christmas sales spike
0:33:30 > 0:33:33will just be a couple of days before Christmas.
0:33:33 > 0:33:36You have to wait, because those sales will come.
0:33:43 > 0:33:47'It's the New Year and I'm at Iceland HQ,
0:33:47 > 0:33:51'where Rebecca is about to find out if she's won the Christmas war.'
0:33:51 > 0:33:54- Hello.- Hello, nice to see you again.
0:33:54 > 0:33:56Very good to see you again.
0:33:56 > 0:33:58'After a year of development and production,
0:33:58 > 0:34:01'it all comes down to four weeks of sales.
0:34:02 > 0:34:07'Independent analyst Kantar compiled December's sales results to show which
0:34:07 > 0:34:12'supermarket won the biggest slice of the frozen dessert market.'
0:34:13 > 0:34:16- This is the moment of truth then, isn't it?- Yeah.
0:34:16 > 0:34:18- You're going to find out.- Yeah.
0:34:23 > 0:34:24OK.
0:34:25 > 0:34:31So, we are the number one in frozen desserts over the Christmas period.
0:34:31 > 0:34:37- No way!- We got 22.4% market share.
0:34:37 > 0:34:40We are number one in the frozen desserts category.
0:34:40 > 0:34:41That is fantastic news.
0:34:41 > 0:34:44I can't actually get across how happy I am to see those numbers.
0:34:44 > 0:34:50Do you know? Looking at that, it's only really you and Tesco in the fight, isn't it?
0:34:50 > 0:34:52Yeah, that's correct. And don't forget,
0:34:52 > 0:34:55Tesco are ten times bigger than Iceland.
0:34:55 > 0:34:58So if you put that into context, that is an amazing result.
0:34:58 > 0:35:01What have you learned from the igloo this year?
0:35:01 > 0:35:05So we've learned that we can sell products that are of a slightly higher
0:35:05 > 0:35:10price point, and I am pleased to say that the igloo sold out and performed
0:35:10 > 0:35:11really well for Iceland.
0:35:11 > 0:35:15Will you be continuing the igloo next year?
0:35:15 > 0:35:17So, I think the important thing is
0:35:17 > 0:35:20with food retail, is you've always got to be developing and, you know,
0:35:20 > 0:35:23we have to keep moving our ranges forward and redeveloping.
0:35:23 > 0:35:26After all of this, you're dumping the igloo?
0:35:26 > 0:35:28The likelihood is that the igloo won't form part of the range next year
0:35:28 > 0:35:32and we'll be looking for the next biggest and best thing.
0:35:32 > 0:35:34Oh, take a day off!
0:35:34 > 0:35:37Pat yourself on the back.
0:35:37 > 0:35:40Retail doesn't work like that. You do have to constantly develop.
0:35:43 > 0:35:47Well, after all her hard work, Rebecca looks pretty pleased with herself.
0:35:47 > 0:35:50But the marketplace is so competitive,
0:35:50 > 0:35:55if she wants to stay ahead of Tesco, she's now got to drop the igloo and
0:35:55 > 0:35:57come up with a brand-new dessert for next Christmas.
0:36:02 > 0:36:06Whatever new strategies the supermarkets have up their sleeves,
0:36:06 > 0:36:09sometimes the oldest tactic is the most powerful.
0:36:11 > 0:36:15Price is the biggest weapon in the supermarket wars,
0:36:15 > 0:36:19so every few months, there's a new wave of assault.
0:36:20 > 0:36:25Last summer, Morrisons fired the first shot in the latest price war,
0:36:25 > 0:36:29slashing an average of 18% off 1,000 items.
0:36:29 > 0:36:32Within weeks, their rivals were following suit.
0:36:35 > 0:36:39But undercutting your competitors is a dangerous game.
0:36:39 > 0:36:43How do you cut costs without cutting into profits,
0:36:43 > 0:36:45or compromising on quality?
0:36:46 > 0:36:50For Morrisons' beef suppliers, the answer is to innovate.
0:36:52 > 0:36:56So a group of farmers and scientists have come together to see if they
0:36:56 > 0:37:00can create the most efficient meat-producing cattle in Britain.
0:37:02 > 0:37:06The biggest cost in beef production is cattle feed.
0:37:06 > 0:37:10It's where around 70% of the money goes.
0:37:10 > 0:37:14So here in Yorkshire, scientist Dr Duncan Puller is collaborating
0:37:14 > 0:37:16with Morrisons and their beef farmers
0:37:16 > 0:37:20to try and find bulls that convert the minimum amount of food into the
0:37:20 > 0:37:23maximum amount of meat.
0:37:23 > 0:37:26Farmers can then use those bulls for breeding.
0:37:26 > 0:37:28So, Duncan, what's so exciting about this project?
0:37:28 > 0:37:33Well, for the first time in this country, what we're doing is using cutting-edge science
0:37:33 > 0:37:37and technology to really help us pick out the most efficient
0:37:37 > 0:37:40animals in the herd, which means they're going to be cheaper to keep.
0:37:42 > 0:37:46The bulls come here for eight weeks of precision monitoring using some
0:37:46 > 0:37:48very clever kit.
0:37:48 > 0:37:52Step one is finding out exactly how much they eat.
0:37:53 > 0:37:57The way it works is each bull has got an electronic tag in his ear and
0:37:57 > 0:38:02then in the top of the bin is a device to register when the bull's
0:38:02 > 0:38:04putting his head through the bin. So when he's done that,
0:38:04 > 0:38:09the reader knows that it's that individual animal and in each box we've got
0:38:09 > 0:38:13a scale that weighs the feed that's in there and as the bull eats a mouthful of feed,
0:38:13 > 0:38:15the scale records what's disappeared.
0:38:15 > 0:38:18So the technology is telling you everything you need to know.
0:38:18 > 0:38:22As soon as the head goes in and he's munching away here,
0:38:22 > 0:38:23all the data's being collected?
0:38:23 > 0:38:28That's right. And that data is wirelessly sent down to the computer in the office.
0:38:28 > 0:38:32Next, the team need to know how much of that feed
0:38:32 > 0:38:34is being turned into beef.
0:38:34 > 0:38:38So farm manager David Thirlwell runs a weekly weigh in.
0:38:39 > 0:38:40So what can I do to help?
0:38:40 > 0:38:44- Well, you can actually transfer some of the weights onto this file that we have.- OK.
0:38:44 > 0:38:49So every animal's got... If you can read his ear tag there in his ear.
0:38:49 > 0:38:51So his ear tag, OK.
0:38:51 > 0:38:542-0-3-3-8-7...
0:38:54 > 0:38:58- And then just transfer his weight across.- So, 520.
0:38:58 > 0:38:59That's what he was last week.
0:38:59 > 0:39:01Is that what you expect to see?
0:39:01 > 0:39:02Some will do very little one week
0:39:02 > 0:39:04and then they'll gain a lot the next,
0:39:04 > 0:39:06so it's quite irregular, really.
0:39:10 > 0:39:14But it's not just the amount of weight that's important.
0:39:14 > 0:39:19The team use ultrasound technology to get an accurate picture of the
0:39:19 > 0:39:20quality of meat.
0:39:25 > 0:39:28So, if you can imagine, that's how the sirloin would look on your plate.
0:39:28 > 0:39:32At the top of the picture you've got the layer of fat that you'd see on
0:39:32 > 0:39:35the steak, and then the little white flecks
0:39:35 > 0:39:39are mostly the marbling fat that you see in the steak.
0:39:40 > 0:39:45Marbling is the fat needed to cook a tender steak.
0:39:45 > 0:39:47To keep the supermarkets happy,
0:39:47 > 0:39:51the team are looking for around 6% marbling,
0:39:51 > 0:39:54and this bull has hit the spot.
0:39:54 > 0:39:57So, he's going to have a long and happy life as a breeding bull somewhere?
0:39:57 > 0:39:59Hopefully, yes, yeah.
0:40:01 > 0:40:07The team here have ranked over 1,000 animals in the last five years to find
0:40:07 > 0:40:12the best bulls for breeding, and they're already seeing a difference.
0:40:12 > 0:40:17The best produce the most meat with around two kilograms less feed a day.
0:40:17 > 0:40:19So if you had 100 cows, you know,
0:40:19 > 0:40:22that might be worth about £6,000 a year.
0:40:22 > 0:40:26So that's a big difference for you and how much profit you make.
0:40:26 > 0:40:28Yeah, I mean, it's very important.
0:40:28 > 0:40:31You know, we have no say on what we're going to get at the marketplace,
0:40:31 > 0:40:34but we have to try and become more efficient.
0:40:34 > 0:40:36And what about the supermarkets? What do they get out of this?
0:40:36 > 0:40:40For the supermarket, what we're trying to do is to make the animals
0:40:40 > 0:40:44that meet all the right specifications, in terms of eating quality of the beef,
0:40:44 > 0:40:46and then when you look back at the farmer,
0:40:46 > 0:40:50then it's going to cost them less to produce, so they're more likely to be profitable,
0:40:50 > 0:40:55and the supermarket has a nice guaranteed supply to get its beef in the future.
0:40:57 > 0:41:00And the plan seems to be working.
0:41:00 > 0:41:03Beef from this scheme is already on the shelves in Morrisons stores.
0:41:06 > 0:41:10Price wars are the front line of the battle between the supermarkets and
0:41:10 > 0:41:13we the consumers are not complaining,
0:41:13 > 0:41:18but sometimes it does mean that we compromise on quality or welfare.
0:41:18 > 0:41:23What's clever here is that they're bringing together farming and science
0:41:23 > 0:41:25to produce beef more cheaply.
0:41:33 > 0:41:37The supermarkets need to constantly evolve their strategies to target
0:41:37 > 0:41:43big spenders, and right now the fastest-growing spenders in the grocery market
0:41:43 > 0:41:45are 16 to 35-year-olds.
0:41:45 > 0:41:49But how do you get them to choose your store?
0:41:49 > 0:41:53The new weapon in the supermarket war is social media.
0:41:53 > 0:41:59A whopping 90% of people under the age of 35 use either Instagram,
0:41:59 > 0:42:01Twitter or Facebook.
0:42:01 > 0:42:04That is millions of potential customers.
0:42:05 > 0:42:11Marks & Spencer tweet to a bigger audience than any other supermarket,
0:42:11 > 0:42:15while Lidl and Aldi reach more than 1.5 million people on Facebook.
0:42:17 > 0:42:22So what if the supermarkets could find a product that got so much online attention,
0:42:22 > 0:42:26it actually got young people off their phones and into the store?
0:42:28 > 0:42:33Tesco are taking the supermarket wars online with some hot property.
0:42:33 > 0:42:38So to find out more, I'm joining chilli buyer Easton Boyd.
0:42:39 > 0:42:40Wahey!
0:42:40 > 0:42:42I love chillies!
0:42:42 > 0:42:44Well, I think you've come to the right place!
0:42:44 > 0:42:47This is the UK's largest chilli farm.
0:42:47 > 0:42:49They harvest 15 million chillies a year.
0:42:51 > 0:42:53We'll be visiting Europe three or four times a season,
0:42:53 > 0:42:56to come and check out quality, availability,
0:42:56 > 0:42:58and just make sure everything is coming along nicely.
0:42:58 > 0:43:03But Easton is checking up on no ordinary chilli.
0:43:03 > 0:43:08Farmer Salvatore Genovese has a reputation for growing superhots.
0:43:10 > 0:43:12It's the Ferrari of the range, it's the top end,
0:43:12 > 0:43:15it's the flagship chilli that sort of stands out.
0:43:15 > 0:43:16It's not for everybody.
0:43:18 > 0:43:21The hotter the chilli, the hotter the attention online.
0:43:21 > 0:43:25So after six years growing increasingly spicier varieties,
0:43:25 > 0:43:29they're hoping Salvatore has reached the top.
0:43:29 > 0:43:33This is the Guinness world record for the hottest chilli in the world, the Carolina Reaper.
0:43:33 > 0:43:35Carolina Reaper?
0:43:35 > 0:43:36Hottest chilli in the world.
0:43:36 > 0:43:38That even looks dangerous, doesn't it?
0:43:38 > 0:43:41It looks like Satan grew it.
0:43:41 > 0:43:44All right, let's take something mild, like, let's say...jalapeno.
0:43:44 > 0:43:46How does that compare to it?
0:43:46 > 0:43:49You would say 400 jalapenos would equal one of those, so take your pick.
0:43:49 > 0:43:54Do you want the mountain of 400 chillies, or do you just want one of those?
0:43:54 > 0:43:55It's the same.
0:43:55 > 0:43:57Use it sparingly.
0:43:57 > 0:44:01- Not half!- Just use a sprinkle, a small amount, when you're cooking.
0:44:01 > 0:44:03It's all you need to do.
0:44:03 > 0:44:05Thank you.
0:44:05 > 0:44:07Whoa! Whoa, whoa, whoa, whoa, whoa.
0:44:09 > 0:44:14No, no, no, no! I just licked my finger and my tongue is on fire!
0:44:14 > 0:44:17Pffwahh! Oh-ho!
0:44:17 > 0:44:20I just nibbled a tiny little bit off of there.
0:44:20 > 0:44:22That is fire!
0:44:22 > 0:44:25- Whoa!- Are you OK, Salv?
0:44:25 > 0:44:27- Yeah, great.- Mate, it's done you, innit?
0:44:27 > 0:44:30I am crying, hiccupping.
0:44:30 > 0:44:31Yeah, way too much.
0:44:31 > 0:44:35Listen, listen, he's in pain, my mouth's on fire,
0:44:35 > 0:44:38is this what it takes to put Tesco ahead of the game?
0:44:38 > 0:44:42I think it creates some sort of excitement within the category,
0:44:42 > 0:44:45- which is really, really good.- If I can't ever taste properly again on
0:44:45 > 0:44:47MasterChef, I'm suing!
0:44:50 > 0:44:55A Carolina Reaper grown in the United States has already broken records.
0:44:55 > 0:44:59But to create a buzz online here,
0:44:59 > 0:45:03Easton wants to claim he's selling the hottest chilli in Britain.
0:45:05 > 0:45:10'Andrew Jukes from the Warwick Crop Centre is testing Salvatore's chilli
0:45:10 > 0:45:12'to see just how hot it is.'
0:45:12 > 0:45:15How do you, scientifically, measure the heat of a chilli?
0:45:15 > 0:45:19What we're looking for is three compounds, basically.
0:45:19 > 0:45:25They're collectively known as capsaicinoids and they all produce heat.
0:45:26 > 0:45:29Capsaicinoids are the chemicals in a chilli
0:45:29 > 0:45:33which are supposed to scare us mammals off of eating them.
0:45:33 > 0:45:36The theory is if you stop mammals eating it, birds eat it,
0:45:36 > 0:45:39the birds disperse the seeds further.
0:45:39 > 0:45:42- So birds don't dislike the heat? - Birds don't experience the heat.
0:45:44 > 0:45:48The higher the concentration of capsaicinoids, the hotter the chilli.
0:45:48 > 0:45:51So Andrew extracts them and measures their strength.
0:45:51 > 0:45:56We're going to translate this onto what is known as the Scoville scale.
0:45:57 > 0:46:00The Scoville scale is what the heat of all chillies are measured against.
0:46:01 > 0:46:05A jalapeno will measure about 5,000 on the scale.
0:46:05 > 0:46:08So, how hot is our Carolina Reaper?
0:46:10 > 0:46:12We've tested it this morning,
0:46:12 > 0:46:16and we've come in at 1.41 million.
0:46:16 > 0:46:18Wow. That's a great result.
0:46:18 > 0:46:22So that makes us the hottest chilli ever tested in the UK.
0:46:22 > 0:46:25Are you excited by this? It's almost like a new find.
0:46:25 > 0:46:27- Terrified.- Are you?
0:46:27 > 0:46:30- Yeah.- Why?- It's a chemical weapon.
0:46:31 > 0:46:35For the Carolina Reaper to work as a weapon in the supermarket wars,
0:46:35 > 0:46:39this chilli now needs to pack a punch online.
0:46:40 > 0:46:43What are you trying to do online here, and why?
0:46:43 > 0:46:46Just create excitement, so that that excitement translates
0:46:46 > 0:46:48into people coming into our shops.
0:46:48 > 0:46:50Within two weeks of the Carolina Reaper's launch...
0:46:50 > 0:46:54- Bon appetit.- ..videos started to appear online.
0:46:55 > 0:46:58- No!- Wow!- Don't do it!
0:46:58 > 0:47:00Oh! OH!
0:47:02 > 0:47:03That's ridiculous.
0:47:03 > 0:47:06One of the areas that we under index in is young adults,
0:47:06 > 0:47:09and we know that young adults are who are driving social media at the
0:47:09 > 0:47:12moment. So a real presence on that is making a massive difference in
0:47:12 > 0:47:14helping us win the battle. You know,
0:47:14 > 0:47:16we've got so many different retailers that are out there now,
0:47:16 > 0:47:20and everybody is trying their best to win customers from each other.
0:47:20 > 0:47:21Do you know? Funnily enough, I get it.
0:47:21 > 0:47:24I think, even though I've been involved in food all my life, I think,
0:47:24 > 0:47:27like, the hottest chilli ever is newsworthy.
0:47:27 > 0:47:31Absolutely. It's the first time in the UK market we've done something so big as this.
0:47:32 > 0:47:34After one season on the shelves,
0:47:34 > 0:47:40this chilli has won attention on Twitter, Facebook and YouTube.
0:47:40 > 0:47:44And customers have been asking when the Carolina Reaper is coming back.
0:47:50 > 0:47:53In the supermarket wars,
0:47:53 > 0:47:57like any battle ground, intelligence is crucial.
0:47:57 > 0:48:01The supermarkets spend a lot of time and money studying exactly what we
0:48:01 > 0:48:06buy. They know that the more they understand about how we shop,
0:48:06 > 0:48:08the more that they can sell.
0:48:08 > 0:48:10Supermarkets have long been using
0:48:10 > 0:48:15our loyalty card and credit card data to build up a picture of our spending.
0:48:18 > 0:48:20But as technology changes,
0:48:20 > 0:48:25it opens up whole new realms of intelligence-gathering tactics.
0:48:25 > 0:48:31Tom Berry is a retail analyst working with some of our biggest stores.
0:48:31 > 0:48:33So, now they're really looking at using your phones.
0:48:33 > 0:48:36So, mobile phones, unless you turn the settings off,
0:48:36 > 0:48:39they're permanently looking for Wi-Fi hotspots.
0:48:39 > 0:48:42So, supermarkets can place a Wi-Fi hotspot in the shop
0:48:42 > 0:48:46and that will immediately recognise when your phone pings to that.
0:48:46 > 0:48:49From that, they'll be able to build up an idea, build up a heat map,
0:48:49 > 0:48:51of how people travel through stores,
0:48:51 > 0:48:54and to understand what kind of deals that are on will attract a consumer
0:48:54 > 0:48:57there, by the movement of their phone.
0:48:58 > 0:49:02And the future could be even more tailored.
0:49:02 > 0:49:05Retailers are developing facial recognition technology,
0:49:05 > 0:49:08which uses a camera and screen on the shelf,
0:49:08 > 0:49:12to work out the age and gender of the face looking at it
0:49:12 > 0:49:14and then show a relevant ad.
0:49:14 > 0:49:18If they decided it's a teenage boy looking at a shelf,
0:49:18 > 0:49:21they could target an advertising campaign to have, say,
0:49:21 > 0:49:24Lionel Messi drinking a certain drink,
0:49:24 > 0:49:26which is more likely to convert that sale.
0:49:28 > 0:49:33Supermarkets can use this kind of tech to target shoppers in their own
0:49:33 > 0:49:38stores, but sussing out how we spend our cash at the competition
0:49:38 > 0:49:40is even more important.
0:49:40 > 0:49:44So they rely on data-gathering companies like Nielsen,
0:49:44 > 0:49:49who analyse receipts from a panel of thousands of shoppers across the country.
0:49:52 > 0:49:56Analyst Mike Watkins helps them turn that data into strategy.
0:49:58 > 0:50:01So, one of the most effective ways of growing your sales
0:50:01 > 0:50:04is to have a better understanding how much your shoppers are spending
0:50:04 > 0:50:07at your competitor, and that's where Nielsen come in.
0:50:08 > 0:50:13For the products like wine, Nielsen can drill down to specific regions
0:50:13 > 0:50:16and tell Tesco exactly what type of wine
0:50:16 > 0:50:21we're nipping to Sainsbury's for, and what price we're paying.
0:50:21 > 0:50:22So then they're able to, what,
0:50:22 > 0:50:25say we'll start stocking the same selected line of wines?
0:50:25 > 0:50:28So, they'll look at the range of data that Nielsen provides,
0:50:28 > 0:50:29put that altogether, said, yeah,
0:50:29 > 0:50:32I think there's an opportunity to sell more white wine,
0:50:32 > 0:50:37and within white wine, more wines from South America, and within that,
0:50:37 > 0:50:39what price, what promotions.
0:50:39 > 0:50:44Tesco can start stocking similar wines at a competitive price
0:50:44 > 0:50:46in the hope of winning back customers.
0:50:46 > 0:50:48But what about us?
0:50:48 > 0:50:50What do we get out of all this information collection?
0:50:50 > 0:50:54Well, what shoppers get is the right range in the store to fit their
0:50:54 > 0:50:58lifestyle, they get good prices, and what they want to buy is available.
0:50:59 > 0:51:02I can see how getting the information
0:51:02 > 0:51:06about how we shop is so valuable to the supermarkets, but I have to say,
0:51:06 > 0:51:08it does make me feel a little bit uncomfortable
0:51:08 > 0:51:10that they know so much about us.
0:51:11 > 0:51:15I think the data gathering is less about benefiting us
0:51:15 > 0:51:19and more about the supermarkets getting an edge on the competition.
0:51:24 > 0:51:26In the fight for our custom,
0:51:26 > 0:51:29the supermarkets are finding some unlikely battlegrounds
0:51:29 > 0:51:31to try and win favour.
0:51:34 > 0:51:38In the last year, the supermarkets have been taking a lot of flak over
0:51:38 > 0:51:39Britain's food waste crisis.
0:51:41 > 0:51:45They've been criticised for refusing to accept anything
0:51:45 > 0:51:47but perfectly-shaped veg from their suppliers
0:51:47 > 0:51:50and for not making enough use of their own waste,
0:51:50 > 0:51:54and for selling us offers that make us chuck out too much food.
0:51:56 > 0:51:57In 2016,
0:51:57 > 0:52:01all the major supermarkets signed up to a government-approved strategy
0:52:01 > 0:52:03to reduce waste.
0:52:03 > 0:52:07But now, the fight is on to see who can best to solve this problem
0:52:07 > 0:52:08and win customers' hearts.
0:52:10 > 0:52:14The war on waste has actually become a war between the supermarkets and
0:52:14 > 0:52:16what I suspect is a battle for brownie points.
0:52:18 > 0:52:21The supermarkets seem to have turned angelic.
0:52:21 > 0:52:25Asda and Tesco are selling us wonky veg at a discount
0:52:25 > 0:52:27to stop it going to waste.
0:52:27 > 0:52:30In Morrisons and Waitrose, they're giving old food to the homeless.
0:52:32 > 0:52:36And at Sainsbury's, they've turned a whole town into a testing ground
0:52:36 > 0:52:39for the latest technology in the fight against food waste.
0:52:41 > 0:52:43Here in Swadlincote, Derbyshire,
0:52:43 > 0:52:46Sainsbury's have launched a £1 million trial
0:52:46 > 0:52:49to help the community reduce their rubbish.
0:52:49 > 0:52:51Have a look on mummy's iPad.
0:52:51 > 0:52:53Do we have any yogurts?
0:52:53 > 0:52:55- Yeah.- We've got some already, haven't we?
0:52:55 > 0:52:57Shall we not get any today?
0:52:57 > 0:53:01Lisa Edwards and her family are testing some hi-tech gadgets
0:53:01 > 0:53:03- for Sainsbury's. - Do we need any milk?
0:53:03 > 0:53:04- No.- No.
0:53:05 > 0:53:08What are you doing with that iPad?
0:53:08 > 0:53:12- Hello, son.- I am having a look at what's in our fridge.
0:53:12 > 0:53:15So I'm just checking to see if we need any yogurts, which we don't,
0:53:15 > 0:53:17so I'm not going to buy any today.
0:53:17 > 0:53:18Did you take a photo of your fridge?
0:53:18 > 0:53:21It's from a camera that's inside our fridge
0:53:21 > 0:53:23and connected to our internet.
0:53:23 > 0:53:24Look at that!
0:53:24 > 0:53:27If you don't need yogurts, what do you need?
0:53:27 > 0:53:28I really need to get some cheese, actually,
0:53:28 > 0:53:30so we're going to go there next.
0:53:30 > 0:53:33- Have you just built a wall of yogurt?- Yeah.
0:53:33 > 0:53:36I don't think Sainsbury's are going to be very happy with you.
0:53:36 > 0:53:39Quick, let's run away, let's go and get the cheese.
0:53:39 > 0:53:41Every time Lisa's fridge door is open
0:53:41 > 0:53:44it takes a picture and saves it
0:53:44 > 0:53:47so that she can see the most up-to-date image of what's in there.
0:53:48 > 0:53:51That way, she won't double up on shopping.
0:53:51 > 0:53:56So, we've got two cameras, one here that takes a photo that side,
0:53:56 > 0:53:59and there's one just here that takes a photo of what's in the door.
0:53:59 > 0:54:02It's linked to the Wi-Fi in the house,
0:54:02 > 0:54:04which is linked to my app on my iPad.
0:54:06 > 0:54:10Lisa is also trialling a range of new food waste apps.
0:54:10 > 0:54:11I've got an app.
0:54:11 > 0:54:15Every time you've got some wasted food, you weigh it,
0:54:15 > 0:54:18and you can input it into the app, which I'll show you.
0:54:18 > 0:54:24For example, if I wasn't going to use this pepper, I weigh it.
0:54:24 > 0:54:260.07kg.
0:54:26 > 0:54:29And I can record it on the app.
0:54:29 > 0:54:33So it's a pepper. Input the weight, 0.07.
0:54:33 > 0:54:36And it's calculated that that's worth 14p to me
0:54:36 > 0:54:38of my weekly shopping.
0:54:38 > 0:54:41'14p?! It hardly seems worth taking the time
0:54:41 > 0:54:43'to weigh it out for that much.'
0:54:43 > 0:54:45What was the most amount of waste you had?
0:54:45 > 0:54:48I think one week we probably had about £8 or £9.
0:54:48 > 0:54:52It all adds up, I suppose, over a year.
0:54:52 > 0:54:53It's a lot of money.
0:54:55 > 0:54:59Lisa says that by making her more aware of what she throws out,
0:54:59 > 0:55:02the app's saved them around £10 a week.
0:55:02 > 0:55:05That's £500 a year, which is pretty good going.
0:55:06 > 0:55:09Sainsbury's are spending a year in Swadlincote
0:55:09 > 0:55:10trialling a range of ideas
0:55:10 > 0:55:13from fancy fridges to recipes that use up old food.
0:55:15 > 0:55:18It's the brainchild of head of sustainability, Paul Crewe,
0:55:18 > 0:55:22who's in town making a pudding with our most-wasted item -
0:55:22 > 0:55:24bread.
0:55:24 > 0:55:27But is all this any more than a PR stunt?
0:55:27 > 0:55:29Can I help? Shall we divide the labour?
0:55:29 > 0:55:32Yeah, you do strawberries, I'll do the butter and bread.
0:55:32 > 0:55:36Right. So, socially it's absolutely right, but it's got to be right
0:55:36 > 0:55:38from a business point of view as well, hasn't it?
0:55:38 > 0:55:40Absolutely. It's a competitive market.
0:55:40 > 0:55:43I don't think retailing has been ever as competitive as it is today.
0:55:43 > 0:55:45And absolutely, by doing the right thing,
0:55:45 > 0:55:47we'll hopefully make this a differentiation
0:55:47 > 0:55:50between not only ourselves but the rest of our competition too.
0:55:50 > 0:55:54Tell me the value of brownie points to be seen to be doing this.
0:55:54 > 0:55:55I don't like brownie points.
0:55:55 > 0:55:58Our customers told us the most important thing they want us
0:55:58 > 0:56:01to help with is help them waste less and save more money at home.
0:56:01 > 0:56:03Dead simple.
0:56:08 > 0:56:10Sainsbury's don't yet have the results
0:56:10 > 0:56:12of the waste trial in Swadlincote,
0:56:12 > 0:56:15but they plan to spread what they've learned here nationwide.
0:56:18 > 0:56:20I'll leave it up to you to decide.
0:56:20 > 0:56:22Are they really trying to help us out,
0:56:22 > 0:56:25or are they trying to earn more brownie points than their rivals
0:56:25 > 0:56:28in what is a very competitive market?
0:56:28 > 0:56:32Whatever their motivation, they are cutting down on food waste,
0:56:32 > 0:56:35and that has got to be a step in the right direction.
0:56:38 > 0:56:40Next time, the supermarkets scrap
0:56:40 > 0:56:44over the biggest battlefield of all -
0:56:44 > 0:56:46our health.
0:56:46 > 0:56:49From delivering on the latest health trends...
0:56:49 > 0:56:51You've got an army of courgette stabbers.
0:56:51 > 0:56:54..bending the rules on food labels...
0:56:54 > 0:56:56So, we're being duped, we're being fooled, are we?
0:56:56 > 0:56:59Well, we're being manipulated.
0:56:59 > 0:57:03..and even creating a hi-tech, healthy booze.
0:57:03 > 0:57:06Now, that is straight out of Willy Wonka!