Chief executive's review
11.40am, Converting to organic, Chalder Farm, Chichester


11.40am, Converting to organic, Chalder Farm, Chichester

Health and vitality are at the heart of what we offer. In January we updated our 'Be Good to Yourself' range, evolving it from a 'diet' brand to a broader health brand.

The new 'Be Good to Yourself' range provides customers with low fat diet products as well as healthier options, and 'plus' meals with added ingredients such as prebiotics, probiotics and Omega 3. There are around 500 products in the range, of which 100 were new this year. Many of these were the first product of their kind in any UK supermarket.

What we've done with bread shows that you can offer healthy choices without affecting taste. We invested £2 million to produce a bread with higher fibre and 15 per cent less salt. It tasted just the same as our existing best-selling bread, but with healthier ingredients. And we sell it to customers at the same price as before, despite the significant investment we've made. We worry about what goes into our products so our customers don't have to.

In February we introduced our 'Kids' range and became the first retailer to provide Guideline Daily Amounts (GDAs) for children aged five to ten years on packaging. We're now rolling out children's GDAs across other ranges because customers tell us they welcome help in making healthy food choices for their children, and many parents want their children to eat the same meals as them.

This year we re-launched around 300 organic products under the 'Sainsbury's SO organic' brand, which sets very high organic standards. Our larger stores carry our full range of over 700 Sainsbury's and branded organic products and sales are up 20 per cent, with particularly good sales in fresh food areas. In the UK rising demand for organic milk currently outstrips supply, so we are working with farmers to cover the costs involved in conversion, as well as offering 12-month supply contracts once the milk is organic.

Our commitment to sourcing products from the UK whenever we can inspired us to find a local solution to the supply issue, rather than simply import organic milk from abroad. We are the only supermarket that has done this. So in May 2006 we achieved another market first by selling milk from British farms – like Chalder Farm, shown here – that are 'in conversion' to organic standards. We call it 'Farm Promise' and it means we pay a premium to cover all the extra costs involved in conversion.


Photograph of Sainsbury's product with Guideline Daily Amounts on label

How much is enough?

In February we became the first UK supermarket to include Guideline Daily Amounts (GDAs) for children aged five to ten years on our product packaging. Now parents can judge the content of their children's food, rather than rely on guesswork.