Short-dated food demand growing
Short-dated food and groceries past their best-before date are a way of saving money for a growing number of households.
With food prices growing at a rate not seen in 14 years, shoppers are looking for ways to keep costs down, fuelling an opportunity for end-of-the-line items.
Stats NZ said food inflation sat at an annual rate of 10.1% in October, the highest rate since 2008. Grocery prices rose 9.7%, while fruit and vegetable prices rose 17%.
Shawn Thomas, the founder of Christchurch-based food outlet store BargainMe, said consumers were increasingly turning to shortdated groceries.
‘‘People tell me they are going to go into a Mad Butcher, into a Frozen Direct, into my store, then stop by a vege shop, and that’s how their route for shopping is going to go. This is what I hear from customers on a daily basis when they are in store. They are not shopping in the big supermarkets; they want to go and see where they can save – even if it is $10 or $20 per department of their shopping trolley,’’ Thomas said.
BargainMe specialises in shortdated groceries and items past their best-before dates, selling everything from UHT milk to frozen foods, pet food, chocolate, biscuits and other dried snacks. Some of the goods are three months after their best-before date, while other items are close to the use-by date or feature damaged packaging.
Thomas said business was ‘‘booming’’ and demand began to take off at the end of August. He said consumers appeared to now be more willing to eat old food. ‘‘There has been a steady increase in business. We’re getting more and more customers, which is influencing us to buy more products and contact different suppliers.’’
Thomas said BargainMe was different to other end-of-the-line outlet food stores because it repacked most goods after receiving them in bulk from the likes of Griffin’s and Tip Top, allowing for extra savings.
‘‘Something like UHT Sanitarium milk, it gives around four to six weeks after the best-before date to be used, and because the price is so good compared to the supermarkets, people are willing to give it a go. It is $4 or $5 in the supermarkets for a 1-litre UHT milk and we’re selling it for $1, so for the consumer that has a really big impact. Once they give it a go and see there is no issue . . . they come back and do a bigger shop.’’
BargainMe had recently started stocking vegan goods, which were flying out the door, he said. ‘‘When we see vegan products come on clearance we just buy the lot, as we know we have loyal customers.’’
The single-store brand would look to open its first North Island store in Auckland.
Retail NZ chief executive Greg Harford said consumers were increasingly ‘‘trading down brands’’ and visiting multiple grocery stores to find cost savings.
‘‘Kiwis are looking for a range of providers because everyone at the moment is concerned about the cost of living,’’ said Harford.
‘‘What we are seeing is people are . . . buying cheaper house brands, perhaps buying smaller packets of things. All of what we would normally see in a recessionary environment.’’