Snacking and Drinking on the Go - UK - April 2004

Contents

Introduction and Abbreviations

• Definitions
• Consumer research
• ACORN
• Advertising data

Abbreviations

Premier Insights

Executive Summary

• More people watching what they eat
• Obesity swells
• Savoury sales gaining momentum at the expense of sweet
• Walkers' investment boosts sector
• Confectionery still dominates snacking 'on the go'
• Many different companies competing for a share
• Advertising expenditure falling
• More people snacking on fruit
• Snacking on impulse declining
• A slide in mobile snacking?
• Snacking 'on the go' - the younger snackers market
• Nuts could be the winner

Market Drivers

• Busy lifestyles
• Figure 1: Agreement with the statement 'my life is quite stressful' 1996- 2002
• Stressed out snackers eat 'on the go'
• 'Having it all'
• Figure 2: Workforce in employment in the UK, by gender, 1999-2008
• Figure 3: Working women, by age of youngest dependent child, 1994/96-2003
• Incidence of snacking among youths
• Figure 4: Agreement with the statement 'I often eat between meals' by 11-16-year-olds, by age and gender, 2001-03
• Competing for the pocket money spend
• Figure 5: Average amount of money received per week by children aged 7-14, by age and gender, 2001-03
• 15-16-year-olds - the target market
• Evening meal opens gap for afternoon snacking
• Figure 6: Lunchtime eating habits and attitudes (excluding at work), 2001 and 2003
• Healthy eating and diet issues
• Figure 7: Eating habits, 1996-2002
• Figure 8: Agreement with lifestyle statements about food and eating habits, 1998-2003
• Rising obesity
• Figure 9: Incidence of being overweight or obese among men and women in England, 1997 and 2001
• Increased dieting could hamper snacking sales
• Figure 10: Top five actions taken to lose weight, by gender, October 2003
• PDI
• Figure 11: PDI and consumer expenditure, at constant 1999 prices, 1999-2008
• Rise in 15-24s to benefit 'on the go' sales
• Figure 12: Trends and projections in UK population, by age group, 1999-2008
• Socio-economic group and snacking savvy
• Figure 13: Trends and projections in the UK population, by socio-economic group, 1999-2008

Market Size and Trends

• Snacking market valued at �’9 billion
• Figure 14: UK retail sales of snacking products, by value, 1999-2004
• Chocolate share under fire from crisps
• Figure 15: UK retail sales of snacking products, by sector, by value, 1999-2003
• Savoury sector growing share
• Figure 16: UK retail sales of snacking products - sweet versus savoury, 1999-2003

Market Segmentation

• Figure 17: Proportion of occasions where products are eaten 'on the go', November 2003
• Growing segments less likely to be eaten 'on the go'
• Figure 18: Proportion of children eating confectionery and crisps on the move/outside the most, 2003
• Crisps are more of a household item
• Chocolate confectionery
• Chocolate facing increased competition
• Figure 19: UK retail sales of chocolate confectionery, by value, 1999-2004
• Innovation alleviates market decline
• Sugar confectionery
• Figure 20: UK retail sales of sugar confectionery, by value, 1999-2004
• Demand for the sugar-free sector
• Sweet snacks paying for nation's ill health
• Crisps and snacks
• Figure 21: UK retail sales of crisps and snacks, by value, 1999-2004
• Increased crisp sales at impulse retailers
• Nuts and dried fruit
• Figure 22: UK retail sales of nuts and dried fruit, by value, 1999-2004
• Impulse ice cream
• Figure 23: UK retail sales of impulse ice cream, by value, 1999-2004
• Premium sector drives ice cream sales
• Biscuits
• Figure 24: UK retail sales of biscuits, by value, 1999-2004
• Non-sweet growth supports savoury trend
• Biscuit brands target mobile eating
• Cake bars more stationary
• Cereal bars
• Figure 25: UK retail sales of cereal bars, by value, 1999-2004

The Supply Structure

• Figure 26: Major companies in the snacking 'on the go' market, 2004

The sector leaders

• Confectionery
• Cadbury extends the Dairy Milk brand
• Nestle
• Nestle launch premium competitor
• Capturing the fruit spend
• The evolution of the Mars Bar
• Galaxy branding to denote luxury

Crisps and snacks

• Walkers

Impulse ice cream

• Wall's
• Wall's drives market initiatives

Biscuits

• McVitie's
• Innovation for 'on the go'
• Cereal bars
• Figure 27: Manufacturer and brand shares in the cereal bar market, by value, 2001 and 2003
• Kellogg

Advertising and Promotion

• Above the line
• Figure 28: Main monitored media advertising expenditure on snacking foods, 1999-2003
• Snacking spend slid in 2003
• Figure 29: Main monitored media advertising expenditure on snacking foods, by sector, 2001-03
• The threat of a 'nanny' state to snack advertising
• Figure 30: Main monitored media advertising expenditure on snacking foods, top 20 brands, 2003
• New break for KitKat
• Walkers walks over promotional support

Below the line

• Figure 31: Below-the-line promotional activity relevant to the snacking 'on the go' market, 2004

The Consumer

• Eating between meals
• Figure 32: Agreement/disagreement with the statement 'I don't normally nibble between meals',1999-2003
• So who eats what?
• Figure 33: Foods eaten between meals in the preceding month, 2000-04
• Is fruit really the most popular snack?
• 'Junk' food still a popular snack
• Demographics of snack food eaters
• Figure 34: Chocolate, sweets and ice cream eaten between meals in the preceding month, by gender, age, socio-economic group, region, lifestage and Mintel's Special Groups, February 2004
• Sweet snacks for the young
• Ageing population to exacerbate sweet decline
• Chocolate preference in the North
• Sugar confectionery a low-cost treat
• Fruit
• Figure 35: Fruit, vegetables and nuts eaten between meals in the preceeding month, by gender,age, socio-economic group, region, lifestage and Mintel's Special Groups, February 2004
• Health equates to income
• London's health freaks
• Nuts for a more mature market
• Dried fruit knows no social bounds
• A new slant on old favourites
• Figure 36: Yogurt, cheese and pies/pasties/sausage rolls eaten between meals in the preceding month, by gender, age, socio-economic group, region, lifestage and Mintel's Special Groups, February 2004
• Who eats all the pies? - Men of course
• Northern bias for cheese and pies
• Crisps analysis
• Figure 37: Crisps eaten between meals in the preceding month, by gender, age, socio-economic group, region and lifestage, February 2004
• Presence of young consumers prompts crisp buying
• Lower income love of crisps
• London not a crisp hotspot
• Biscuits, bread and toast
• Figure 38: Biscuits, cakes and bread/toast eaten between meals in the preceding month, by gender, age, socio-economic group, region, lifestage and Mintel's Special Groups, February 2004
• Cakes - the family favourite
• Staple snacking from the 'storecupboard'
• Cereal snackers
• Figure 39: Breakfast cereals and cereal bars eaten between meals in the preceding month, by gender, age, socio-economic group, ergion, lifestage and Mintel's Special Groups, February 2004
• Cereal bars and the AB snacker
• Cereal snacking for the ill-prepared

The Future

• The obesity backlash..
• Sugar cuts to accommodate inactive consumers...
• ...and carbohydrates
• More bad news for snack manufacturers
• The people vs food manufacturers?
• Feeling the effects across the industry
• Holding back the nanny state
• Nuts could be the winner

Forecast

• Scenario 1
• Figure 40: Forecast of snacking habit groups, scenario 1, 2004 and 2009
• Scenario 2
• Figure 41: Forecast of snacking habit groups, scenario 2, 2004 and 2009
• Scenario 3
• Figure 42: Forecast of snacking habit groups, scenario 3, 2004 and 2009