To help you, FMCG manufacturer or retailer, moving forward faster in the right strategic direction, we are offering these quarterly Pulse Reports providing key trends and insights for the most popular categories in Europe. We hope that these key quarterly indicators and tips with global and local perspectives will help you to grasp opportunities to grow your business.
To gain further insights and information, please contact your IRI client service representative or send an email at: EU.Marketing@IRIworldwide.com - See more at: http://www.iriworldwide.eu/Resources/PulseReports/tabid/380/Default.aspx
To help you, FMCG manufacturer or retailer, moving forward faster in the right strategic direction, we are offering these quarterly Pulse Reports providing key trends and insights for the most popular categories in Europe. We hope that these key quarterly indicators and tips with global and local perspectives will help you to grasp opportunities to grow your business.
To gain further insights and information, please contact your IRI client service representative or send an email at: EU.Marketing@IRIworldwide.com - See more at: http://www.iriworldwide.eu/Resources/PulseReports/tabid/380/Default.aspx
To help you, FMCG manufacturer or retailer, moving forward faster in the right strategic direction, we are offering these quarterly Pulse Reports providing key trends and insights for the most popular categories in Europe. We hope that these key quarterly indicators and tips with global and local perspectives will help you to grasp opportunities to grow your business.
To gain further insights and information, please contact your IRI client service representative or send an email at: EU.Marketing@IRIworldwide.com - See more at: http://www.iriworldwide.eu/Resources/PulseReports/tabid/380/Default.aspx
Welcome to the Pulse Q2 2014 edition for ambient. We hope you find it useful. Please do not hesitate to contact us if you have any questions or comments at EU.Marketing@IRIworldwide.com.
Q2 2014
IRIworldwide.eu PULSE REPORT About the Report 2 This ambient report is one of 10 super-category reports designed to show a high-level comparison and analysis of retail markets across major countries in Europe. This report contains data gathered from around Europe. Categories include:
The report highlights key metrics, such as total sales figures, market trends, category share, and winners and losers for Europe and for individual countries. The data has been sourced from IRI retail databases and Eurostat, the statistical branch of administration for the European Commission. The countries included in the report are: France, Germany, Italy, the Netherlands, Spain and the United Kingdom (UK). The market channels used for each country in this report are as follows: Country Channels used UK Hypermarkets, supermarkets, drugstores and impulse outlets ES Hypermarkets, supermarkets, hard discounters and drug stores, including the Canary Islands DE Hypermarkets, supermarkets, hard discounters and drugstores NL Hypermarkets, supermarkets, hard discounters and drugstores IT Hypermarkets, supermarkets, small self-service, hard discounters and drugstores FR Hypermarkets and supermarkets For analytical purposes, the data sourced from available retail databases has been consolidated to provide consistent results. However, for some countries, it has not been possible to source data pertaining to certain categories. When this is the case, it is documented in the Notes section found at the end of the report. Shelf stable vegetables Shelf stable fruits Shelf stable meat Shelf stable fish Sweet and savoury biscuits Crisps and snacks Long life milk and dairy products Bread/baked products Baking ingredients Sweet spreads and sauces Savoury spreads Dry soups Wet soups Rice Pasta and noodles Shelf stable ready- meals Shelf-stable desserts Sugars and sweeteners Seasonings Condiments Sauces/mixes Oil/vinegar Dried fruits Dried beans and vegetables
PULSE REPORT On the Radar 3 ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOR Source: Eurostat, September 2013 We see early signs of economic recovery in many European countries, though consumers remain price sensitive in ambient categories. Private label and promotional activity are major growth drivers. Convenience continues to emerge as a cross-country trend. POPULATION IN MILLIONS UNEMPLOYMENT (%) AVERAGE 12 MONTHS INFLATION RATES GDP IN MILLIONS () Jan. 2012 Jan. 2013 Sep. 2013 Average 2012 Sep. 2013 Average 2012 2012 2013 (Estimate) France 65.3 65.6 11.1 10.2 +1.2 +2.5 2 032 297 2 059 358 Germany 80.3 80.5 5.2 5.5 +1.8 +2.4 2 644 200 2 694 499 Italy 59.3 59.6 12.5 10.7 +1.8 +3.5 1 565 916 1 568 388 Netherlands 16.7 16.8 7.0 5.3 +3.1 +2.8 600 638 604 459 Spain 46.8 46.7 26.6 25.0 +2.3 +2.3 1 049 525 1 051 076 United Kingdom 63.4 63.8 7.5 7.9 +2.7 +3.7 1 901 001 1 854 920 PULSE REPORT 5 419 5 174 5 052 5 498 5 276 5 033 3 167 3 254 3 188 3 311 3 215 3 148 1 183 1 154 1 082 1 188 1 159 1 129 4 690 4 510 4 447 4 979 4 529 4 557 6 224 5 909 5 765 6 449 6 238 6 044 4 574 4 537 4 506 4 644 4 613 4 576 0 5,000 10,000 15,000 20,000 25,000 30,000 31-mar-13 30-jun-13 29-sep-13 29-dic-13 30-mar-14 29-jun-14 E u r o s ,
i n
M i l l i o n s
Period Ending France Germany Italy Netherlands Spain UK GLOBAL TRENDS 4 TOTAL EUROPE +0.4% -0.1% +1.4% -1.1% VALUE SALES IN MILLIONS () Total EU 99 625 DE 24 496 UK 20 859 IT 18 512 FR 18 339 ES 12 861 NL 4 558 TOTAL AMBIENT VALUE SALES AND % CHANGE VERSUS PRIOR YEAR *based on an exchange rate of 1.150 to the pound +0.7% +1.4% -1.6% TOTAL AMBIENT VALUE SALES FOR THE LAST SIX QUARTERS Source: IRI retail databases; period ending 29 June 2014 PULSE REPORT Europe 5 14 324 12 286 8 547 8 051 6 855 5 426 4 842 3 949 3 856 3 775 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 Bread/Baked Products Crisps and Snacks Sweet and Savoury Biscuits Long Life Milk & Dairy Products Shelf Stable Vegetables Shelf Stable Fish Oil/Vinegar Cereals Sweet Spreads and Sauces Pasta and Noodles E u r o s ,
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m i l l i o n s
CATEGORY VALUE SALES IN THE LAST YEAR Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom Source: IRI retail databases; period ending 29 June 2014 KEY TRENDS Ambient category growth across Europe is stable, at +0.4% in the second quarter. Growth was mainly driven by the French and German economies. The UK ambient sector was under pressure during the last period. Overall growth was mainly due to increased promotional efforts, as prices were stable in most countries. The economic outlook will continue to support solid performance of ambient categories, though price sensitivity will mean growth will continue to be focused around private label and discounters. Drive-by or pick-up-point concepts are emerging in many countries, indicating a cross-country trend towards convenience, in line with the early signs of economic recovery that we see. TOP 10 SHARE OF VALUE IN THE YEAR Bread/Baked Products 14.4% Crisps and Snacks 12.3% Sweet and Savoury Biscuits 8.6% Long Life Milk & Dairy Products 8.1% Shelf Stable Vegetables 6.9% Shelf Stable Fish 5.4% Oil/Vinegar 4.9% Cereals 4.0% Pasta and Noodles 3.8% Sauces/Mixes 3.6% Sweet Spreads and Sauces 3.9% Baking Ingredients 3.5% Shelf Stable Ready Meals 2.5% Condiments 2.7% Seasoning 2.3% Wet Soups 2.3% PULSE REPORT CATEGORY INSIGHTS Crisps and snacks continues to be the fastest growing ambient segment, as it has been for successive quarters. France, the UK and Spain are the main contributors to the growth of crisps and snacks. This segment was also the biggest winner in the Netherlands. The decline in pasta and noodles is partly driven by Italy, where consumption behaviour is changing towards even more convenient and quick meal alternatives. Bread and baked products are under pressure, partly due to changes in consumption behaviour, but also due to consumers switching towards alternative channels. Long life milk has grown mainly through consumer price increases, as a result of both increased raw material costs and increased export demand. Europe 6 Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom Source: IRI retail databases; period ending 29 June 2014 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () 404.9 346.9 161.5 134.9 55.8 0 100 200 300 400 500 Crisps and Snacks Long Life Milk & Dairy Products Shelf Stable Fish Oil/Vinegar Dried Fruits - 59.5 - 96.3 - 122.1 - 134.1 - 123.1 -150 -100 -50 0 Shelf Stable Fruit Shelf Stable Vegetables Bread/Baked Products Pasta and Noodles Wet Soups . Euros, in millions Euros in millions TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago 6 855 14 324 8 547 12 286 8 051 3,4 4,5 0,6 -0,8 -1,4 B r e a d / B a k e d P r o d u c t s C r i s p s
a n d S n a c k s S w e e t
a n d S a v o u r y B i s c u i t s L o n g
L i f e M i l k
&
D a i r y P r o d u c t s S h e l f
S t a b l e V e g e t a b l e s E u r o s ,
i n
m i l l i o n s Total Sales % vs. YA PULSE REPORT KEY TRENDS A relatively good performance for fast moving consumer goods (FMCG) and ambient in the first semester (FMCG + 1.9% in units versus the first semester of 2013, with ambient at +1.2%). Positive effects of the warm temperatures supported growth of a number of ambient categories, including oil/vinegar, cold sauces, and shelf stable fish. Ambient turnover growth (+1.2% in the first semester) is impacted by significant deflation (-2.3% for sugared grocery, versus -1.0% total FMCG). Promotional activity has increased for ambient (+1.1 point of promotional turnover), mainly for the big brands. Private label ambient solutions are suffering, losing 0.3 points of their market share, mainly due to a lack of change in the assortment. Pick-up points continue to gain market share (3.6% of ambient units sold today, up 0.8 points versus a year ago), whilst hard discounters are losing share (-6.5% for the first semester).
CATEGORY VALUE SALES IN THE LAST YEAR France 7 Source: IRI retail databases; period ending 29 June 2014 2 560 2 057 1 643 1 508 1 282 959 908 818 813 735 0 500 1.000 1.500 2.000 2.500 3.000 Bread/Baked Products Long Life Milk & Dairy Products Sweet and Savoury Biscuits Crisps and Snacks Shelf Stable Vegetables Baking Ingredients Shelf Stable Fish Oil/Vinegar Sweet Spreads and Sauces Pasta and Noodles E u r o s ,
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m i l l i o n s
TOP 10 SHARE OF VALUE IN THE YEAR Bread/Baked Products 14.0% Long Life Milk & Dairy Products 11.2% Sweet and Savoury Biscuits 9.0% Crisps and Snacks 8.2% Shelf Stable Vegetables 7.0% Baking Ingredients 5.2% Shelf Stable Fish 5.0% Oil/Vinegar 4.5% Sweet Spreads and Sauces 4.4% Pasta and Noodles 4.0% Shelf Stable Ready Meals 3.9% Sauces/Mixes 3.5% Cereals 3.2% Shelf Stable Fruit 3.2% Sugar and Sweeteners 2.6% Condiments 2.5% PULSE REPORT 1 282 1 508 2 057 1 643 2 560 0,7 1,5 1,1 6,3 0.5 B r e a d / B a k e d P r o d u c t s L o n g
L i f e M i l k
&
D a i r y P r o d u c t s S w e e t
a n d S a v o u r y B i s c u i t s C r i s p s
a n d S n a c k s S h e l f
S t a b l e V e g e t a b l e s E u r o s ,
i n
m i l l i o n s Total Sales % vs. YA France 8 Source: IRI retail databases; period ending 29 June 2014 CATEGORY INSIGHTS Good weather supported growth across a number of ambient categories, including: vinegar (+9.0%), oil (+4.8%), shelf stable fish (+4.8%) and crisps (+9.3%). In the breakfast segment, bread continues to grow, driven by the popularity of bread without crust and rustic breads. Breakfast biscuits show very good performance (+20.4%), whereas cereals continue to suffer (-0.6%). Prepared meals are positive this quarter, including canned pasta dishes, demonstrating strength since the horsegate affair.
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () 22.7 38.7 50.1 56.6 89.2 0 20 40 60 80 100 Crisps and Snacks Shelf Stable Fish Oil/Vinegar Bread/Baked Products Sauces/Mixes - 9.3 - 24.7 - 11.7 - 10.5 - 23.7 -30 -25 -20 -15 -10 -5 0 Sweet Spreads and Sauces Cereals Dry Soups Wet Soups Shelf Stable Ready Meals . Euros, in millions Euos, in millions TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago PULSE REPORT KEY TRENDS Price increases helped ambient post positive growth (+1.4% in value), despite a slight decline of around -2% in volume sales. Value growth in ambient was boosted by promotion growth; however, non-promotion- based sales also registered decent growth. Private labels showed growth, while national brands experienced slight value decline. In volume, both private label and national brands registered decline. Private labels contribute about 43% of the ambient market by value, and private label value share of ambient increased by 1.0 point. Ambient showed positive development across all channels except supermarkets; hypermarkets (1500-2499 square meters) had the strongest growth. Long life milk and dairy products showed strong growth, most of which came from the sales in UHT milk. UHT milk price increases are stemming from increased raw materials pricing, as well as growing international demand for UHT milk, especially in Asia.
Germany 9 Source: IRI retail databases; period ending 29 June 2014 CATEGORY VALUE SALES IN THE LAST YEAR 3 198 2 814 2 104 1 717 1 584 1 381 1 147 1 114 1 051 1 047 0 500 1.000 1.500 2.000 2.500 3.000 3.500 Bread/Baked Products Crisps and Snacks Long Life Milk & Dairy Products Shelf Stable Vegetables Sweet and Savoury Biscuits Sweet Spreads and Sauces Condiments Seasoning Oil/Vinegar Baking Ingredients E u r o s ,
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m i l l i o n s
TOP 10 SHARE OF VALUE IN THE YEAR Bread/Baked Products 13.1% Crisps and Snacks 11.5% Long Life Milk & Dairy Products 8.6% Shelf Stable Vegetables 7.0% Sweet and Savoury Biscuits 6.5% Sweet Spreads and Sauces 5.6% Condiments 4.7% Seasoning 4.5% Oil/Vinegar 4.3% Baking Ingredients 4.3% Shelf Stable Fish 4.2% Sauces/Mixes 3.9% Wet Soups 3.4% Pasta and Noodles 3.4% Cereals 3.3% Sugar and Sweeteners 2.5% PULSE REPORT 1 584 3 198 2 104 2 814 1 717 7.3 -1.4 14.3 -1.3 -1.7 B r e a d / B a k e d P r o d u c t s C r i s p s
a n d S n a c k s L o n g
L i f e M i l k
&
D a i r y P r o d u c t s S h e l f
S t a b l e V e g e t a b l e s S w e e t
a n d S a v o u r y B i s c u i t s E u r o s ,
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m i l l i o n s Total Sales % vs. YA Germany 10 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () - 41.8 - 34.3 - 32.2 - 27.6 - 40.7 -45 -35 -25 -15 -5 5 Sweet and Savoury Biscuits Shelf Stable Fruit Wet Soups Sweet Spreads and Sauces Bread/Baked Products . 21.8 26.6 28.1 191.7 263.0 0 50 100 150 200 250 300 Long Life Milk & Dairy Products Crisps and Snacks Shelf Stable Fish Oil/Vinegar Baking Ingredients Euros, in millions Euros, in millions CATEGORY INSIGHTS Around 84% of the growth for long life milk and dairy products came through the UHT milk sector, which saw double digit growth in all channels. Hard discounters contributed around 48% of the growth in UHT milk, driven by price increases at Aldis. Hypermarkets accounted for 38.0% of UHT milk growth. Nuts, seeds and raisins drove growth within crisps and snacks. Discounters contributed more than half of the value growth for that segment. Salty snacks growth was driven by the nuts sector, as well as the football world championship. Products with a particular connection to Brazil/championship by flavor and/or packaging were particularly successful. A dip in sales in the bread sector drove a decline in the bread/baked products category. The majority of the value loss for the sector came from hard discounters, a channel with high focus on bake-off shelves (home baking ingredients). Source: IRI retail databases; period ending 29 June 2014 TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago PULSE REPORT Italy 11 KEY TRENDS In Italy, ambient performance is in line with total FMCG sales, in terms of value growth (year-to-date -0.1%, versus an average FMCG decline of 0.2%). Italy is in a deflationary phase. In fact, prices were essentially flat in the first half of 2014, marking a strong discontinuity versus to few months ago, when ambient showed high rates of inflation. Private label is showing momentum across all ambient sectors, with value growth of +3.0%. During the past few months, however, private label sales have slowed. Trade promotions are high, with promotion supporting approximately 28% of volume sale and up 2.8% versus previous year. Stepped up promotional activity may be attributable to retailers strategies to structurally lower price levels. Source: IRI retail databases; period ending 29 June 2014 CATEGORY VALUE SALES IN THE LAST YEAR 2 032 1 989 1 656 1 625 1 616 1 459 1 430 1 411 844 804 0 500 1.000 1.500 2.000 2.500 Bread/Baked Products Crisps and Snacks Long Life Milk & Dairy Products Pasta and Noodles Shelf Stable Vegetables Oil/Vinegar Sweet and Savoury Biscuits Shelf Stable Fish Baking Ingredients Sweet Spreads and Sauces E u r o s ,
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m i l l i o n s
TOP 10 SHARE OF VALUE IN THE YEAR Bread/Baked Products 11.0% Crisps and Snacks 10.7% Long Life Milk & Dairy Products 8.9% Pasta and Noodles 8.8% Shelf Stable Vegetables 8.7% Oil/Vinegar 7.9% Sweet and Savoury Biscuits 7.7% Shelf Stable Fish 7.6% Baking Ingredients 4.6% Sweet Spreads and Sauces 4.3% Dried Fruits 3.5% Sugar and Sweeteners 2.3% Cereals 2.1% Rice 1.8% Seasoning 1.8% Sauces/Mixes 1.4% PULSE REPORT 1 616 2 032 1 656 1 989 1 625 -1.0 0.5 2.6 0.9 -1.6 B r e a d / B a k e d P r o d u c t s C r i s p s
a n d S n a c k s L o n g
L i f e M i l k
&
D a i r y P r o d u c t s P a s t a
a n d N o o d l e s S h e l f
S t a b l e V e g e t a b l e s E u r o s ,
i n
m i l l i o n s Total Sales % vs. YA Italy 12 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 29 June 2014 - 91.6 - 26.3 - 25.9 - 21.8 - 30.4 -100 -80 -60 -40 -20 0 Sweet and Savoury Biscuits Cereals Shelf Stable Vegetables Sugar and Sweeteners Pasta and Noodles . 20.6 35.2 41.3 41.4 43.6 0 10 20 30 40 50 Shelf Stable Fish Long Life Milk & Dairy Products Dried Fruits Sweet Spreads and Sauces Oil/Vinegar Euros, in millions Euros, in millions CATEGORY INSIGHTS Canned tuna and long life milk are top-growing ambient categories, with price increases contributing heavily to value growth increases. Pasta, canned vegetables and sugar saw the sharpest declines. Pasta declines are stemming from changing consumer rituals, including more frantic lifestyles, with few opportunities to enjoy a quiet meal at home, aesthetic models oriented towards a "constant diet" and increased assortment focused on "fast" preparation. Potato chips is one of the most dynamic categories in the ambient sector (+11.9% year to date versus a year ago), benefitting from a growing trend around aperitifs and a shift from out of home to at home consumption. Private label is winning share in many ambient categories, particularly within commodity categories e.g. tuna, canned vegetables, dried fruit, long life milk. The ongoing economic crisis is driving shoppers into cheaper alternatives. TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago PULSE REPORT The Netherlands 13 KEY TRENDS In the Netherlands, the overall economy grew 0.5% in the second quarter versus the first quarter of 2014, showing moderate signs of economic recovery. The ambient sector has fallen 2.3% in value sales in supermarkets year-to-date versus the same period last year. By comparison, total supermarkets value sales are stable at -0.2% during the same time period. Prices are stable in most ambient categories. Promotional pressure remains steady in the second quarter, coming in at 17.6% of year-to-date value sales. Source: IRI retail databases; period ending 29 June 2014 CATEGORY VALUE SALES IN THE LAST YEAR 700 665 408 367 328 322 314 169 160 152 0 100 200 300 400 500 600 700 800 Crisps and Snacks Sweet and Savoury Biscuits Sauces/Mixes Bread/Baked Products Shelf Stable Vegetables Long Life Milk & Dairy Products Sweet Spreads and Sauces Wet Soups Seasoning Shelf Stable Meat E u r o s ,
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TOP 10 SHARE OF VALUE IN THE YEAR Crisps and Snacks 15.4% Sweet and Savoury Biscuits 14.6% Sauces/Mixes 8.9% Bread/Baked Products 8.1% Shelf Stable Vegetables 7.2% Long Life Milk & Dairy Products 7.1% Sweet Spreads and Sauces 6.9% Wet Soups 3.7% Seasoning 3.5% Shelf Stable Meat 3.3% Cereals 2.9% Pasta and Noodles 2.4% Shelf Stable Ready Meals 2.4% Oil/Vinegar 2.1% Baking Ingredients 1.7% Dry Soups 1.7% PULSE REPORT The Netherlands 14 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 29 June 2014 - 8.0 - 10.5 - 10.5 - 19.7 - 19.5 -20 -15 -10 -5 0 Shelf Stable Meat Bread/Baked Products Wet Soups Sweet Spreads and Sauces Sweet and Savoury Biscuits . 3.3 3.5 3.8 4.3 5.1 0 1 2 3 4 5 6 Crisps and Snacks Shelf Stable Fish Seasoning Dried Fruits Oil/Vinegar . Euros, in millions Euros, in millions CATEGORY INSIGHTS Crisps and snacks managed to grow this quarter even though promotional pressure declined slightly. Value and volume growth is partly due to a high rate of innovation. The value growth of shelf stable fish is mainly due to increased promotional activity. Bread sales continue to show signs of distress, as overall bread consumption is under pressure in the Netherlands regardless of efforts by supermarkets to bring volumes back through in-store bakeries. This also partly explains the decline in sweet spreads (including peanut butter). Grocery pick-up points are becoming more commonplace in the Netherlands, and online grocery sales are on the rise due to due both increased supply and demand. 328 700 408 665 367 -2.9 -2.8 0.8 0.7 -2.3 C r i s p s
a n d S n a c k s S w e e t
a n d S a v o u r y B i s c u i t s S a u c e s / M i x e s B r e a d / B a k e d P r o d u c t s S h e l f
S t a b l e V e g e t a b l e s M i l l i o n s Total Sales % vs. YA TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago PULSE REPORT Spain 15 KEY TRENDS In Spain, ambient sales are decreasing. Consumption declined and prices stagnated, even for private labels. Promotional activity started to rise across most ambient categories. Private label ambient started to lose market share.
Source: IRI retail databases; period ending 29 June 2014 CATEGORY VALUE SALES IN THE LAST YEAR 1 792 1 753 1 411 1 410 1 250 860 849 482 405 341 0 200 400 600 800 1.000 1.200 1.400 1.600 1.800 2.000 Bread/Baked Products Long Life Milk & Dairy Products Shelf Stable Fish Crisps and Snacks Oil/Vinegar Sweet and Savoury Biscuits Shelf Stable Vegetables Condiments Shelf Stable Fruit Shelf Stable Desserts E u r o s ,
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m i l l i o n s
TOP 10 SHARE OF VALUE IN THE YEAR Bread/Baked Products 13.9% Long Life Milk & Dairy Products 13.6% Shelf Stable Fish 11.0% Crisps and Snacks 11.0% Oil/Vinegar 9.7% Sweet and Savoury Biscuits 6.7% Shelf Stable Vegetables 6.6% Condiments 3.7% Shelf Stable Fruit 3.1% Shelf Stable Desserts 2.7% Cereals 2.6% Sweet Spreads and Sauces 2.4% Wet Soups 2.0% Sugar and Sweeteners 1.8% Rice 1.7% Baking Ingredients 1.5% PULSE REPORT Spain 16 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 29 June 2014 - 5.3 - 19.1 - 9.1 - 12.8 - 19.6 -25 -20 -15 -10 -5 0 Shelf Stable Vegetables Sugar and Sweeteners Bread/Baked Products Cereals Shelf Stable Fruit . 14.0 29.2 31.2 32.6 46.6 0 10 20 30 40 50 Crisps and Snacks Long Life Milk & Dairy Products Oil/Vinegar Shelf Stable Fish Shelf Stable Ready Meals Euros, in millions Euros, in millions CATEGORY INSIGHTS The increase in sales experienced by oil was the result of the escalating cost of raw materials. Volume sales of milk increased, driven by non-added-value milks. Price increases drove value sales growth across shelf stable fish. In this category, private label and branded sectors grew at a similar pace. 1 250 1 792 1 411 1 753 1 410 1.9 3.4 2.1 -0.7 2.6 B r e a d / B a k e d P r o d u c t s L o n g
L i f e M i l k
&
D a i r y P r o d u c t s S h e l f
S t a b l e F i s h C r i s p s
a n d S n a c k s O i l / V i n e g a r E u r o s ,
i n
m i l l i o n s Total Sales % vs. YA TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago PULSE REPORT The United Kingdom 17 KEY TRENDS Recent official data shows that the UKs economic recovery is stronger than expected and it is thought that the UK recession ended in the third quarter of 2013. However, grocery prices are still a key concern for most shoppers, due to price increases and a decline in real average earnings. Inflation in June has been evident across most ambient food categories, particularly within wheat-based products, such as cereal and home baking. Falling prices across some private label categories (e.g., beans and canned meat) will increasingly drive shoppers towards private label alternatives. Data was starting to show a gradual decline in the level of volume on deal over recent months, driven by food and drink. However this started to rise again, prompted by Easter activity. Source: IRI retail databases; period ending 29 June 2014 CATEGORY VALUE SALES IN THE LAST YEAR 4 375 3 866 2 365 1 709 1 315 1 062 991 644 585 538 0 500 1.000 1.500 2.000 2.500 3.000 3.500 4.000 4.500 5.000 Bread/Baked Products Crisps and Snacks Sweet and Savoury Biscuits Cereals Sauces/Mixes Shelf Stable Vegetables Shelf Stable Ready Meals Shelf Stable Desserts Shelf Stable Fish Wet Soups E u r o s ,
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m i l l i o n s
TOP 10 SHARE OF VALUE IN THE YEAR Bread/Baked Products 21.0% Crisps and Snacks 18.5% Sweet and Savoury Biscuits 11.3% Cereals 8.2% Sauces/Mixes 6.3% Shelf Stable Vegetables 5.1% Shelf Stable Ready Meals 4.8% Shelf Stable Desserts 3.1% Shelf Stable Fish 2.8% Wet Soups 2.6% Rice 2.3% Baking Ingredients 1.8% Shelf Stable Meat 1.8% Condiments 1.8% Pasta and Noodles 1.6% Dried Fruits 1.3% PULSE REPORT 1 315 4 375 2 365 3 866 1 709 2.4 -1.3 4.0 -2.5 -3.7 B r e a d / B a k e d P r o d u c t s C r i s p s
a n d S n a c k s S w e e t
a n d S a v o u r y B i s c u i t s C e r e a l s S a u c e s / M i x e s M i l l i o n s Total Sales % vs. YA The United Kingdom 18 Source: IRI retail databases; period ending 29 June 2014 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () - 113.5 - 50.1 - 41.9 - 39.8 - 67.0 -120 -100 -80 -60 -40 -20 0 Shelf Stable Ready Meals Shelf Stable Vegetables Sauces/Mixes Wet Soups Bread/Baked Products . 3,1 5,5 8,8 90,7 92,3 0 20 40 60 80 100 Crisps and Snacks Sweet and Savoury Biscuits Rice Condiments Oil/Vinegar Euros, in millions Euros, in millions CATEGORY INSIGHTS Ambient, frozen and chilled sectors are all seeing value and volume decline year-to- date, as shoppers continue to tighten their belts, buy less, and trade down. Ambient food is performing ahead of frozen, but behind chilled. Value sales growth has been strongest across expandable treat categories, such as chocolate and biscuits. Value sales growth in wheat-based categories has been driven by inflation. Private label has gained share in many categories, particularly within canned goods and wheat-based categories, where inflation drove shoppers into cheaper alternatives. Significant innovations this year in ambient food include products which tap into trends of convenience (Kelloggs Special K Hot Cereals), new flavour influences (Heinz Black Label Wet Soup) and indulgence (Nestle Toffee Crisp Cereal).
TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago PULSE REPORT Final Notes 19 Notes on category definitions for countries Due to the diverse products found in individual countries across this market, it was necessary to consolidate the available data into the categories in this report. In some cases, it wasnt possible to align products across all six countries. Those exceptions are listed below:
Shelf stable fruits The UK data in this report only includes mincemeat for this category.
Sweet and savoury biscuits The UK data in this report only includes biscuits and does not include crackers or wafers for this category.
Bread/baked products The Netherlands data in this report only includes shelf-stable bread and no other baked goods.
Sweet spreads and sauces The German and the Netherlands data in this report both include peanut butter and other nut spreads; the other countries do not.
Savoury spreads The France data in this report does not include this category.
Dry soups The Italy data in this report also includes some risotto and pasta products.
Sugar and sweeteners The UK data in this report does not include sugar, whereas the other countries do.
PULSE REPORT Resources 20 About IRI. IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over- the-counter healthcare industries by pinpointing what matters and illuminating how it can impact their businesses across sales and marketing. Move your business forward at IRIworldwide.eu Arlington Square, Downshire Way, Bracknell, Berkshire RG12 1WA, Tel +44 (0) 1344 746000 Copyright 2014 Information Resources, Inc. (IRI). All rights reserved. IRI, the IRI logo and the names of IRI products and services referenced herein are either trademarks or registered trademarks of IRI. All other trademarks are the property of their respective owners. FOR MORE INFORMATION Please contact Linsey Teuben, Business Insights Account Executive IRI at Linsey.Teuben@IRIworldwide.com or +31 6 22 908 427 with questions or comments about this report.
To gain insight into opportunities across specific categories, segments, channels or retailers, contact your IRI client service representative regarding custom analyses leveraging the following resources: IRI InfoScan Census
is a syndicated retail tracking service that enables manufacturers
and retailers to acquire industry insights used to make better business decisions. IRI InfoScan Census utilises the data that IRI collects from grocery, drug, and mass merchandise retailers to provide the most comprehensive and accurate syndicated data offering in the FMCG sector. With access to accurate, granular detail by category, geography, measure and time period, clients have the tools needed to develop marketing and sales strategies based on product performance, distribution and promotion responsiveness. All data about ambient comes from IRI InfoScan Census. IRI Consulting provides strategic insights and advice leveraging a variety of data sources, predictive analytics, enabling technologies, and business analyses to help FMCG manufacturers and retailers address significant sales and marketing issues effectively.