PULSE REPORT

IRI Pulse Report Baby

Welcome to the Pulse Q3 2013 edition for baby. We hope you find it useful. Please do not hesitate to contact us if you have any uestions or comments at !".#ar$etin%&IRI'orld'ide.com.

Q3 2013

IRI'orld'ide.eu

PULSE REPORT

(bout the Report

)his Baby report is one of 10 super cate%ory reports desi%ned to sho' hi%h*level comparison and analysis for retail mar$ets across ma+or countries in !urope. )his report contains data %athered from across !urope. )his mar$et 'as split into the follo'in% cate%ories, baby food- baby mil$s and drin$s- nappies and baby toiletries. )he report hi%hli%hts $ey metrics- such as total sales fi%ures- mar$et trends- cate%ory share- and 'inners and losers for !urope and for individual countries. )he data has been sourced from IRI retail databases and !urostat.the statistical branch of administration for the !uropean /ommission. )he countries included in the report are, 0rance- 1ermany- Italy- the 2etherlands- 3pain and the "nited 4in%dom 5"46. )he mar$et channels used for each country in this report are as follo's,

Country
"4 !3 8! 29 I) 0R

Channels used
7ypermar$ets- supermar$ets- dru%stores and impulse outlets 7ypermar$ets- supermar$ets- hard discounters and dru%stores includin% the /anary Islands 7ypermar$ets- supermar$ets- hard discounters and dru%stores 7ypermar$ets- supermar$ets- hard discounters and dru%stores 7ypermar$ets- supermar$ets- small self service- hard discounters and dru%stores 7ypermar$ets and supermar$ets

0or analytical purposes the data sourced from available retail databases has been consolidated to provide consistent results. 7o'ever- for some countries it has not been possible to source data pertainin% to certain cate%ories. Where this occurs- it has been documented in the Notes section found at the end of the report.

PULSE REPORT

:n the Radar

3ales declined across the baby universe 5*1;6 durin% the last yeare<cept the "4. #il$ and drin$s performed relatively 'ell in all countries- 'hile baby food did not sho' positive %ro'th in any countries. :nly "4 boosts sales.

ECONOMIC FI URES INFLUENCIN

CONSUMER !E"#$IOR
CRU)E !IRT" R#TE PER 1000 IN"#!IT#NTS )P IN MILLIONS &*(

POPUL#TION IN MILLIONS

UNEMPLO%MENT &'(

#$ER# E 12 MONT" INFL#TION R#TES

=an. 2012 Fran+e er3any Italy Netherlands S5a6n Un6ted 76n8do3 ,-.3 20.3 -0.3 1,.1 4,.2 ,3.4

=an. 2013 ,-., 20.-0., 1,.2 4,.1 ,3.2

3ep. 2013 11.1 -.2 12.1.0 2,., 1.-

(v% 2012 10.2 -.10.1 -.3 2-.0 1.0

3ep. 2013 /1.2 /1.2 /1.2 /3.1 /2.3 /2.1

(vera%e 2012 /2./2.4 /3./2.2 /2.3 /3.1

2012 2 032 201 2 ,44 200 1 -,- 01, ,00 ,32 1 040 -21 001 001

2013 5!stimate6 2 0-0 3-2 2 ,04 400 1 -,2 322 ,04 4-0 1 0-1 01, 1 2-4 020

2011 12., 2.1 0.0 10.2 10.1 12.2

2012 12., 2.4 0.0 10.0.1 12.2

3ource, !urostat- 3eptember 2013

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19:B(9 )R!283
TOT#L !#!% $#LUE S#LES #N) RO=T" #N) )ECLINE IN T"E L#ST %E#R

/2.2' /4.-' /2.,'

$#LUE S#LES IN MILLIONS &*( Total EU FR U7 , 012 1 240 1 ,,4< 1 31022 ,34 412

9-.3'

)E IT ES NL

94.0' 9-.3'
>based on an e<chan%e rate of ?1.1@0 to the pound

TOT#L EUROPE 91.4' TOT#L !#!% $#LUE S#LES FOR T"E L#ST SI> QU#RTERS

2 000

M6ll6ons

1 200 1 ,00 1 400

410

423

4-1

4,2

4--

4-0

Fran+e er3any

1 200 1 000 200 ,00 400 200 0

342

321

33-

340

3-3

332

Italy Netherlands S5a6n U7

2,0 111 1,1

2-4 113 1,2

24, 113 1-1

2-0 120 1,3

24, 122 1-0

241 111 1--

41,

410

40-

421

420

412

019:u6l.912

019o+t.912

309d;+.912

3193ars913

309:u6n913

209se5t.913 Per6od End6n8

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

PULSE REPORT

!urope
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

23-1;

Euros? 6n M6ll6ons

2 CDD

E1-1;

1 D0F

20-C;

1 E@3 1 0E@

1@-0;

2appies

Baby #il$ and 8rin$s

Baby 0ood

Baby )oiletries

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S #ost baby cate%ories e<perienced declinin% sales in Q3 2013 across all countries. )he "4- 1ermany and the 2etherlands either maintained or sli%htly increased sales- driven only by the performance of baby mil$- 'hich 'as sustained by the e<port to /hina. 0rance- Italy and 3pain sa' value sales decrease by @; versus last year.

2 CDD

M6ll6ons

1 D0F 1 E@3 1 0E@

*3.2 2appies

D.E Baby #il$ and 8rin$s

*@.0 Baby 0ood

*2.3 Baby )oiletries

)otal ? 3ales

; ? vs. G(

!urope includes, 0rance- 1ermany- Italy- 2etherlands- 3pain and "nited 4in%dom 3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

PULSE REPORT

!urope

TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
0 20 40 ,0 20 100 120

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
9100 920 9,0 940 920 0

!aAy M6lB and )r6nBs

BF.2

* 2E.1

!aAy To6letr6es !aAy Food

* FF.0 * BE.3

Na556es

C#TE OR% INSI "TS )he baby mil$ and drin$s cate%ory performed best for the uarter- driven by increased sales in the 2etherlands 5IE2;6- "4 5I10;6 and 1ermany 5I10;6. /ate%ory %ro'th is mainly driven by the fear of the uality of /hinaJs mil$ and the e<ports of mil$. Baby food is the cate%ory 'ith the %reatest sales declines- decreasin% in all countries 'ith a %lobal decrease of @.0;. :nly the "4 maintained positive traction for the uarter 5I0.B;6. 0rance 5*C.0;6- 3pain 5*F.D;6 and Italy 5*D.E6 e<perienced the sharpest declines. 2appies represents E1; of total baby cate%ory sales. 7o'ever it is declinin% in each country'ith the 2etherlands seein% the sharpest value decline 5*B.0;6. Baby toiletries continues to decline- loosin% 2E.1 million euros. 8eclines in Italy 'ere a standout- at *D;.

!urope includes, 0rance- 1ermany- Italy- 2etherlands- 3pain and "nited 4in%dom 3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

PULSE REPORT

0rance
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

2@.@;

Euros? 6n M6ll6ons

F1B

3B.1;

EDB 3F1 2C0

20.2;

1@.2;

2appies

Baby 0ood

Baby #il$ and 8rin$s

Baby )oiletries

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S )he baby sector e<perienced value sales declines of @.3; across hypermar$ets and supermar$ets and declines of 2.F; across hypermar$ets- supermar$ets and drive. 7ypermar$ets and supermar$ets are losin% business to the drive channel- 'hich still very dynamic in 0rance- especially for the baby universe. 8espite a shift to the drive channel- baby cate%ory trends remain ne%ative 5*2.F;6 for the uarter- and declines escalated durin% the last trimester 5*2.B;6. 8eclines are sharpest in the baby food sector 5*@.E; value sales6A this sector accounts for E0; of the losses suffered by the mar$etA baby mil$ sales are also fallin% 5*2.F;6. 2appies 5*1.2;6 and toiletries 5*1.D;6 are less affected.

F1B

M6ll6ons

EDB

3F1 2C0

*E-0 2appies

*C-0 Baby 0ood

*@-2 Baby #il$ and 8rin$s

*3-F Baby )oiletries

)otal ? 3ales

; ? vs. G(

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

PULSE REPORT

0rance
TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 0 0 0 0 0 0

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

.
!aAy To6letr6es !aAy M6lB and )r6nBs Na556es !aAy Food

M6ll6ons
9-0 940 930 920 910 0

* 10.C

* 20.@

* 30.1

* E1.0

C#TE OR% INSI "TS Baby food is responsible for E0; of the losses e<perienced by the baby cate%ory 'ith *E1#? sales versus last year 'hile it only represents 2D; of mar$et share.

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

PULSE REPORT

1ermany
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros? 6n M6ll6ons

2C.0;

@F0

3C@

E1.@;

2DD

1B.3;

1@E

11.2;

2appies

Baby #il$ and 8rin$s

Baby 0ood

Baby )oiletries

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S )he nappy cate%ory is the bi%%est sector in the baby mar$et. 3table %ro'th is mainly contributed by dru%stores but hard discounters- 'hich launched a ne' ran%e of premium diapers throu%hout the year- are also performin% 'ell. 3oft discounters also sho' positive development. Baby mil$ and drin$s have e<perienced double*di%it %ro'th- driven by the baby mil$ cate%ory- 'hich is benefittin% from the continued hi%h demand from /hinese parents to import hi%h uality baby mil$ po'der from 1ermany. #a+or baby mil$ channels are hypermar$et and dru%stores. Baby food e<perienced sharp declines for the uarter- due to losses in dru%stores 53chlec$erKs insolvency6 and hard discounters. )he baby toiletries cate%ory sho's a sli%ht decline due to losses in its main channeldru%stores.

@F0

M6ll6ons

3C@

2DD

1@E

12.3 0.3 2appies Baby #il$ and 8rin$s *2.B Baby 0ood *0.@ Baby )oiletries

)otal ? 3ales

; ? vs. G(

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

PULSE REPORT

1ermany
TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 10 20 30 40 -0 910 92 9, 94 92

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

.

M6ll6ons
0

!aAy M6lB and )r6nBs

E2.1

Na556es

1.@

* 0.C

!aAy To6letr6es

* F.B

!aAy Food

C#TE OR% INSI "TS !aAy 36lB and dr6nBs L )he baby mil$ and drin$s cate%ory is the stron%est performin% cate%ory in the baby mar$et. Baby mil$- especially dry mil$ se%ment- is the main %ro'th driver- en+oyin% double*di%it value and volume %ro'th. 7u%e /hinese demand for 1erman baby mil$ po'der continues- as /hinese consumers do not trust their local products. /hinese people livin% in 1ermany buy the products and send them to /hina in lar%e uantities to resellers- leadin% to out*of*stoc$ situations on 1erman shelves- especially 'ith the reno'ned brands. 8ru%stores remains the main point of sale- 'ith dm dru% mar$et bein% the ma+or store. 7ypermar$ets are also an important channel. )he baby +uices sector continues to decline. Private label holds only 2.2; mar$et share of baby mil$ and drin$s but has sho'n %ood %ro'th. Na556es L 2appies mar$et %ro'th is mainly driven by dru%stores 5'ith about D0; value mar$et share6- 'ith double*di%it %ro'th of dm dru% mar$et. 7ard discounters also play an important role in pumpin% the sales %ro'th based on a premium diaper ran%e available since QE 2012. 7ypermar$ets e<perienced a decline in sales- 'hich accompanied a dip in promotions. Private label- 'hich holds around 32; share- %re' 3.0; for the uarter- 'ith a promotional boost of 11.E;. !aAy to6letr6es L )he main point of sale is still dru%stores and its decline in sales is drivin% the overall cate%ory losses. 8iscounters are capturin% increased share of sales as sales volume increases. Baby 'ipes are the main %ro'in% se%ment. Private label holds about @0; share of the baby toiletries mar$et- and is en+oyin% a stable %ro'th. !aAy Cood L )he baby food cate%ory is in decline and is one of the main drivers for the overall baby sector losses. (ll channels suffered losses- includin% ma+or baby food channelssuch as dru%stores- discounters and hypermar$ets. 8ecrease in priceMvolume 'as not able to compensate the losses. Private label has presence only in dru%stores and sho's a declinin% trend.

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

10

PULSE REPORT

Italy
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

33.0;

Euros? 6n M6ll6ons

3B3 32E

E0.0;

1EB 11D

1@.2;

11.C;

2appies

Baby 0ood

Baby )oiletries

Baby #il$ and 8rin$s

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S )otal baby care in Italy sho's a 2.0; decline in volume and drop in value of @.3; for Q3 2013. )he ne%ative volume trend is mainly driven by stron% sales declines in hypermar$ets 5*C.E;6 and supermar$ets 5*3.3;6- 'hich account for 2C; and EB; of cate%ory sales- respectively. Baby food and baby toiletries- representin% a combined total of EC; of se%ment salesare also contributin% to lac$luster baby cate%ory sales- particularly in hypermar$ets. :nly the dru%stores sho' a positive trend across these sectors. )he nappies se%ment is follo'in% overall mar$et trends. /ate%ory declines are occurrin% mainly in traditional channelsincludin% hypermar$ets 5*10.3;6supermar$ets 5*0.3;6 and small self service 5*0.3;6.

3B3

32E

M6ll6ons

1EB 11D

*@.0 2appies

*D.E Baby 0ood

*D.1 Baby )oiletries

*2.3 Baby #il$ and 8rin$s

)otal ? 3ales

; ? vs. G(

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

11

PULSE REPORT

Italy
TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 0 0 0 0 0 0 92920 91910

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

.
!aAy M6lB and )r6nBs !aAy To6letr6es Na556es !aAy Food

M6ll6ons
90

* 2.C

* B.F

* 20.D

* 22.2

C#TE OR% INSI "TS Baby products are sho'in% a ne%ative trend in Q3 2013 versus Q3 2012- li$e most consumers %oods. 0or most cate%ories mass mar$ets account for almost B0; of the business- leavin% the remainder to the pharmacy channel. Brand loyalty is still very stron% for all sub*cate%ories- particularly in baby food- 'here consumers are more informed and pay more attention to the healthy elements of baby nutrition- 'ithout %ivin% up their preferential choices. 0ater maintained its lead in nappies in Italy 'ith a retail value share of almost D1;. )he companyKs stron% position in the cate%ory is due mainly to the popularity of its Pampers brand- 'hich is hi%hly trusted amon%st Italian consumers. )he brandKs loyalty has been built up throu%hout time- than$s to continuous advertisin% and an interactive 'ebsite 'ith a 'ide variety of utilities for mothers. )hey also have fre uent launches of ne' and improved linesA such as the re*launch of Pampers Pro%ressi in 2012- suitable for ne' born to 2@$% infantsand are mar$eted as havin% an improved liner formulation to be more absorbin%.

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

12

PULSE REPORT

2etherlands
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros? 6n M6ll6ons

32.F;

1FD 1@D

3D.B;

1@.C;

F@

F0

1E.D;

2appies

Baby #il$ and 8rin$s

Baby )oiletries

Baby 0ood

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S (s a result of %eneral 0#/1 mar$et trendsand declinin% birth rates- baby products in the 2etherlands are under pressure. Both channels sho' %ro'th in total baby compared to same period last year- 'ith supermar$ets outperformin% dru%stores supermar$ets movin% annual total 5#()6 inde< of ID; and dru% of IE; in total baby value sales. 1ro'th is bein% heavily influenced by the e<port of baby mil$ to /hina. )oiletries- nappies and other baby products are in decline- especially in supermar$ets. In dru%stores- baby toiletries volume %re' sli%htly. Promotional pressure $eeps increasin% for this cate%ory- to @B.3; in dru%stores and 2C.B; in supermar$ets. )his is mainly driven by promotions in baby food 5e<cludin% mil$6- toiletries and articles li$e bottles.

1FD 1@D

M6ll6ons

F@

F0

E2.E *B.0 2appies Baby #il$ and 8rin$s *E.B Baby )oiletries *D.0 Baby 0ood

)otal ? 3ales

; ? vs. G(

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

13

PULSE REPORT

2etherlands
TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 10 20 30 40 -0 92920 91910 9-

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

.

M6ll6ons
0

!aAy M6lB and )r6nBs

ED.@

* 3.B

!aAy To6letr6es !aAy Food

* E.E

* 1F.E

Na556es

C#TE OR% INSI "TS Baby food 5e<cludin% mil$6 is declinin% in both value and volume despite intensifyin% promotional activity. 3elf*made meals are ne%atively impactin% baby food performance. 2appies value sales turned ne%ative in Q3- lar%ely as a result of increased purchase activity across non*0#/1 channels- includin% online 5Bol.comM Weh$amp6 or %rey channels li$e (ction. )here is also a small but %ro'in% trend to'ards 'ashable nappies- 'ith some parents even %oin% as far as not usin% any diapers 5note, this trend is comin% from the "nited 3tates6. )hou%h overall baby toiletries value sales declined- volume is stable in the dru%stores channel- supported by hi%h promotional pressure. 8espite hu%e %ro'th of promotion in baby articles li$e comforters and bottles- baby articles are in decline 5in value as 'ell as in volume6.

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

14

PULSE REPORT

3pain
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

Euros? 6n M6ll6ons

DD.D;

E22

21.E;

13D

F.E; E.D;

EF

2B

2appies

Baby #il$ and 8rin$s

Baby 0ood

Baby )oiletries

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S In 3pain- the baby cate%ory declined in Q3 2013 5*E.B; value sales6- 'ith ne%ative performance cuttin% across all se%ments. )he ne%ative trend comes from decreases of the birth rate- the po'er of private label in all se%ments and the %ro'in% prevalence of homemade meals.

E22

M6ll6ons

13D

EF *E.3 2appies *@.F Baby #il$ and 8rin$s *F.D Baby 0ood

2B *@.D Baby )oiletries

)otal ? 3ales

; ? vs. G(

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

1-

PULSE REPORT

3pain
TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(
M6ll6ons
0 0 0 0 0 0 0 920 91910 9-

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

.

M6ll6ons
0

* 1.F

!aAy To6letr6es

* 3.B

!aAy Food !aAy M6lB and )r6nBs

* C.2

* 1B.0

Na556es

C#TE OR% INSI "TS 2appies is the lar%est se%ment of 3painKs baby cate%ory- representin% D@; share.much hi%her versus other countries. )he sector is e<periencin% declines- driven by a reduction in the birth rates and by the economic crisis. Prices continue to rise and consumers are optin% for cheaper and lo'er uality- and increasin% the usa%e time of each diaper 5talc and balm. used to deterMtreat irritations.are sho'in% stron% lar%e %ro'th6. Private label has been a player in this cate%ory for some time and represents 3B; of total value sales 5IE points versus year a%o6. )here is also a decline in the demand for baby mil$ and drin$s. )his has been driven by increased public a'areness about the importance of breastfeedin%. 0or this reason- most mothers choose to breastfeed their children and len%then the period of lactation. )his is also providin% a si%nificant savin%s for families. 0urthermore- there is an increasin% demand for toddlers mil$ 'ithin private label. Baby food e<perienced declines in both volume and value sales in Q3. Private label captured 10 share points from national brands in Q3 3013- lar%ely the result of increasin% prices. Halue sales e<perienced value sales declines- lar%ely due to private labelKs hi%h share and stron% %ro'th 'ithin the cate%ory.

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

1,

PULSE REPORT

"nited 4in%dom
C#TE OR% S"#RE OF $#LUE IN T"E L#ST %E#R C#TE OR% $#LUE S#LES IN T"E L#ST %E#R

2D.D;

Euros? 6n M6ll6ons

@CD

21.@; 3@.2;

EE3
3-1 212

1D.F;

2appies

Baby #il$ and 8rin$s

Baby )oiletries

Baby 0ood

TOP - C#TE ORIES@ E$OLUTION

Halue sales 5?6 and ; chan%e vs. year a%o

7E% TREN)S #ost baby cate%ories e<perienced value sales %ro'th in Q3 2013. )he e<ception is nappies- 'hich e<perienced a sli%ht decline. #il$ is the fastest*%ro'in% se%ment in the baby cate%ory- driven by a combination of price increases- increased birth rate in the "4 and e<port sales to /hina due to health scares.

@CD

M6ll6ons

EE3 3@F 2FC

*1.@ 2appies

10.0 Baby #il$ and 8rin$s

0.C Baby )oiletries

0.B Baby 0ood

)otal ? 3ales

; ? vs. G(

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

11

PULSE REPORT

"nited 4in%dom
TOP =INNERS@ $#LUE S#LES C"#N E $S. %R. # O &*(
.

TOP LOSERS@ $#LUE S#LES C"#N E $S. %R. # O &*(

M6ll6ons
910 92 9, 94 92 0

10

20

30

40

-0

!aAy M6lB and )r6nBs

E0.1

!aAy To6letr6es

2.C

!aAy Food

2.E

* C.F

Na556es

C#TE OR% INSI "TS )he "4 is currently seein% a baby boom- 'ith birth rates at their hi%hest for E0 years. )his is helpin% drive overall sales of the baby sector. 0or baby mil$- the impact of e<port of products to /hina appears to be declinin% 5rollin% @2 'ee$s is sho'in% a declinin% %ro'th rate6. 3till- the mar$et continues to %ro'- helped by inflation and a risin% birth rate. 9imits on number of items purchased per visit have no' been lifted and are no lon%er advertised on store shelves. 8anoneKs (ptamil and /o' N 1atethe benefactors of e<port volume- continue to see share %ro'th year*over*year at the e<pense of 3#(. Promotional activity across toddler lines is resultin% in a slo'in% in %ro'th across cate%ories tar%etin% this life sta%e. Both toiletries and 'ipes e<perienced deceleratin% %ro'th in Q3 2013. In toiletriespromotional activity across branded lines declined- 'hile private label promotion escalated. In nappies- value sales slide follo'in% the de*listin% of 7u%%ies )aped. Private label continues to 'in the ma+ority of the lost volume- rather than Pampers. #uch of this volume has been 'on off*shelf and at a lo'er price- supportin% value sales declines.

3ource, IRI retail databasesA Period endin% 2B 3eptember 2013

M6ll6ons

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0inal 2otes

Notes on Cate8ory )eC6n6t6ons Cor Countr6es 8ue to the diverse products found in individual countries across this mar$et it 'as necessary to consolidate the available data into the cate%ories in this report. In some cases it 'as not possible to ali%n products across all si< countries- hence the need to hi%hli%ht any anomalies in the report. )hese e<ceptions are listed belo',

!aAy M6lB D )r6nBs )he 0rance data in this report only contains Baby #il$ 'hereas the other countries also include other Baby 8rin$s.

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Resources

)o %ain insi%ht into opportunities across specific cate%ories- se%ments- channels or retailerscontact your IRI client service representative re%ardin% custom analyses levera%in% the follo'in% resources, InCoS+an CensusH is a syndicated retail trac$in% service that enables manufacturers and retailers to ac uire industry insi%hts used to ma$e better business decisions. Info3can /ensus utiliPes the data that IRI collects from %rocery- dru%- and mass merchandise retailers to provide the most comprehensive and accurate syndicated data offerin% in the 0#/1 sector. With access to accurate- %ranular detail by cate%ory- %eo%raphy- measure- and time period- clients have the tools needed to develop mar$etin% and sales strate%ies based on product performance- distribution- and promotion responsiveness. (ll data about baby comes from InCoS+an CensusH. IRI Consult6n8 provides strate%ic insi%hts and advice levera%in% a variety of data sourcespredictive analytics- enablin% technolo%ies- and business analyses to help 0#/1 manufacturers and retailers address si%nificant sales and mar$etin% issues effectively.

0:R #:R! I20:R#()I:2 Please contact /atalina 1onPQleP-Business Insi%htsIRI at Catal6na. onFaleFGIRIEorldE6de.+o3 or I3E*B1 @EC C0C0 'ith uestions or comments about this report.

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