A groundbreaking retail initiative developed by Monash University and Deakin University researchers in partnership with Ritchies IGA supermarkets has prompted shoppers to buy more vegetables by using 'nutritional serve pricing'. The initiative has been endorsed by AUSVEG, the country's peak industry body for vegetable growers.
Per nutritional serve pricing at Ritchies IGA.
Released today, the National evaluation of nutritional serve pricing report showed on an individual level the initiative helped to increase the average daily vegetable purchases by more than 60 grams among all loyalty card shoppers. On a store level, the initiative significantly increased daily vegetable purchase volumes by 7.5 kilograms.
Most Australians do not currently meet the recommended daily intake for vegetables. The latest Australian Bureau of Statistics data indicates that only 6.5 per cent of Australian adults met the recommended intake for vegetables.
To help address this gap, the researchers introduced an initiative called 'nutritional serve pricing.' This tool allows supermarkets to display per-serve prices alongside the standard per-kilogram pricing for vegetables. The 'serving' size is calculated based on a 75 gram nutritional serve, in line with Australian Dietary Guidelines.
For example, if carrots are priced at $2.99 per kilogram, under the nutritional serve pricing initiative, the supermarket ticket also shows that one serve costs 22 cents. This approach shows the real cost of a typical nutritional serve, helping shoppers see that vegetables are more affordable than they might think.
The new approach was implemented across more than 70 Ritchies IGA Australian supermarkets in March 2024. The researchers analysed 850 consecutive days of de-identified loyalty card holder data to compare vegetable and fruit purchases before and after the launch of the initiative, making this the largest real-world assessment of pricing communication for vegetables in Australia.
Analyses were based on 56 stores that traded across this full period, thereby controlling for variations in sales volumes due to factors such as store openings and renovations.
Consumer psychology expert and research lead for this initiative, Associate Professor Fiona Newton from Monash Business School, said that while the findings reflect aggregated purchasing patterns rather than the individual consumption of vegetables, they show a clear shift in behaviour following the introduction of per serve pricing.
"Vegetable consumption in Australia remains far below recommended levels, and many families feel that healthier choices are less affordable," Associate Professor Fiona Newton said.
"By showing the cost of a single nutritional serve, we are giving shoppers a clearer sense of value and a simpler way to assess what fits within their budget.
"This research shows that we can support healthier choices by better framing the everyday cues that shoppers already use in their decision-making."
Research co-author and Professor of Marketing at Deakin University, Professor Josh Newton, said the partnership with Ritchies IGA created a valuable opportunity to study consumer behaviour in a natural retail setting.
"These findings offer retailers, health organisations and policymakers a practical and cost effective tool for boosting healthy purchasing habits and potentially improving population diets," Professor Josh Newton said.
"The gains we observed occurred without any promotional activity, which highlights how powerful clear price communication can be."
Ritchies IGA CEO Fred Harrison said the new pricing approach showed the influence supermarkets can have in promoting healthy food choices.
"At Ritchies, we are proud to partner with world-leading researchers from Monash and Deakin universities to deliver clear evidence that supports healthy options and value for our shoppers," Mr Harrison said.
"By showing the cost of a single serve, we are making healthy choices simpler and helping families put more fresh produce on the table while keeping value front of mind.
"It is part of our commitment to helping Australians meet the national recommendation of two serves of fruit and five to six serves of vegetables each day. That's why we're making the findings of this important research publicly available."
The national peak body for vegetable growers, AUSVEG, has formally endorsed the 'nutritional serve pricing' retail initiative. AUSVEG CEO Michael Coote said the results point to a promising opportunity for growers and retailers.
"The success of the nutritional per serve pricing initiative with Monash University, Deakin University and Ritchies IGA demonstrates the power of using research to get Aussies to see the great value of adding more vegetables to their shopping baskets," Mr Coote said.
"AUSVEG is proud to officially endorse and share the findings of this important white paper with our Board, vegetable growers, industry and retail partners as part of our commitment to increasing national vegetable consumption through the Plus One Serve program."
Ms Justine Coates, Managing Director of AUSVEG's Plus One Serve initiative to boost Australia's vegetable consumption by 2030, said the approach provides consumers with a clearer way to understand both cost and dietary guidance.
"Nutritional-per-serve pricing gives consumers a clear and meaningful way to understand both value and recommended dietary intake through a practical, scalable tool that makes choosing vegetables easier every day," Ms Coates said.
"It is an evidence-based approach that we encourage retailers to implement as an important part of achieving our Plus One Serve by 2030 goal - delivering healthier communities, supporting Aussie growers, and building a more secure food system."
Looking to the future, the Monash and Deakin researchers are exploring opportunities to replicate and adapt the approach across other retail settings.
Monash's Associate Professor Fiona Newton said the broader potential of improving vegetable purchasing at the population level is significant.
"Data from AUSVEG indicates that if every Australian were to purchase and consume one extra serve of vegetables per day, the projected national benefits include $1.38 billion dollars in healthcare cost savings, $3.30 billion dollars in supply chain benefits and 12,841 new jobs supported across production and retail."
Read the full research and analysis results.
