What is origin worth?

The production and marketing of regional milk and cheese specialties is successfully promoted under the label "natürli us de Region Zürcher Berggebiet".The Grisons butcher Hatecke is currently opening a store in Zurich. Many of his customers come from the business metropolis and have previously bought the precious Engadine meat specialties in Hatecke's stores in Scuol, Zernez and St. Moritz or in selected delicatessens. Do such products with a regional identity have an advantage in the market? This was the question addressed by the Study by the University of St. Gallenwhich can be ordered online.Better regional than organicThe study shows that Swiss consumers in the premium segment are prepared to pay between 20 and 30 percent more for regional products. When asked whether consumers buy organic or regional products more often, most (43%) say they buy more regional products. Only 10 percent buy organic products more often. There are no differences in terms of gender, age and region of residence with regard to the generally strong preference for regional products. In contrast, organic products only appeal to sub-segments of the market.High market potentialIn order to better assess the potential of regional products, a comparison with organic products is useful. At the beginning of the 1970s, organic products were only a marginal phenomenon. Since then, sales of organic products have grown steadily and amounted to around CHF 2.3 billion in 2015 - this corresponds to a market share of 7.7%. "Regional products currently account for around CHF 1.3 billion of food sales in Switzerland," says study author Dr. Stephan Feige on the development. He assumes that sales will grow disproportionately in the coming years.Customers are happy to pay moreAs the study shows, the willingness to pay for regional products is generally high. At the same price, 70 percent of consumers across Switzerland would prefer regional products to other Swiss products of unknown origin. In the premium segment (top quarter), Swiss consumers are prepared to pay between 20 and 30 percent more for regional products. The price premium varies greatly depending on the product. The willingness to spend more is highest for cheese, followed by honey, yogurt, eggs, milk and meat. The willingness to pay is lowest for fruit and vegetables.

Discussing regional products: Ralf Hahn, Zwicki AG, Jasmin Said Bucher, Alpinavera, Michael Dubach, natürli, Olivia Bosshart, moderator, Stephan Feige (from left to right), htp St. Gallen, and Ludwig Hatecke (not pictured), Bacharia Alpina.Taste must be rightMichael Dubach, Regional Manager "natürli Pro Zürcher Berggebiete", Rolf Hahn, Sales Manager Zwicky AG, Ludwig Hatecke, owner of the butcher's store Bacharia Alpina, Jasmine Said Bucher, Managing Director of Alpinavera, and Dr. Stephan Feige, Managing Director of htp St. Gallen, took part in a discussion on regional products at Marmite in Zurich, which was organized and moderated by Kion owner Dr. Olivia Bosshart. At the same time, they agreed with Ludwig Hatecke's conviction that taste and quality are important criteria. For Hatecke, this also includes the presentation and packaging of the products. They should make the quality perceptible.