Children's Snacks - UK - July 2005

Contents

Introduction and Abbreviations

Definition

Consumer research

Lifestage and Special Groups

ACORN

Advertising data

Abbreviations

Premier Insight

Avoiding the contraband

Establishing a relationship with parents

Executive Summary

Changing dynamics of the consumer base

Growth from childrens snacks

Changing structure

New product development

Strong support for 2005

Importance of impulse

Finding the right audience

Mixed outlook

Market Drivers

Number of children in UK population

• Figure 1: Trends and projections in UK population, by age group, 2000-09

PDI and consumer expenditure

• Figure 2: PDI and consumer expenditure, at constant 2000 prices, 2000-09

Family finances and structure

• Figure 3: Percentage of dependent* children living in different types of family units, 1972-2002

Rise of the working woman

• Figure 4: Working women by age of own children, 1998-2004

  Childrens average income by age

Childrens average income by age

• Figure 5: Average weekly income of children aged 7-14, 2002-04
• Figure 6: Average monthly income of children aged 15-16, 2002-04

Snacking opportunities

Top five products eaten after school

• Figure 7: Top five products eaten after school by children aged 7-16, 2004

Top five products packed by mothers in childrens lunch boxes:

• Figure 8: Top five products eaten in lunchboxes, by children aged 5-16, 2004

Character merchandising

Health and the obesity crisis

Government intervention

Manufacturer response

Government Action

Healthy Living Blueprint for Schools

Junk Food Advertising

Market Size and Segmentation

Crisps and snacks ・the wider market

• Figure 9: UK retail sales of crisps and snacks, 2000-04

Childrens sector boosts crisps and snacks market

• Figure 10: UK retail sales of all crisps and snacks, by positioning, 2000-04

Adult downturn in the snacks market

• Figure 11: Retail sales of all snacks in the UK, by positioning, 2000-04

Dynamism in childrens brands

Childrens snacks

• Figure 12: UK retail sales of childrens snacks, 2000-05

The market segmented

• Figure 13: UK retail sales of childrens snacks, by type, 2000-05

Family appeal boosts category

The Supply Structure

The snacks overview

Childrens snacks

• Figure 14: Brand shares in childrens snack market, 2000-04

Changing fortunes

Companies and brands

Walkers

Movement in the crisp market

KP

Support for Skips

Golden Wonder/Snack Factory

A teen offering

Red Mill Snack Foods

Intersnack

New Product Development

Health developments

New Product Briefs

Advertising and Promotion

• Figure 15: Main monitored media advertising expenditure on crisps and snacks, 2000-05*

Support for childrens snacks

• Figure 16: Main monitored media advertising expenditure on childrens snacks, 2000-05

Brand spend in 2004

• Figure 17: Main monitored media advertising expenditure on childrens snacks by top spenders, 2004

KP focus

Golden Wonder

The future and the FSA

Below-the-line promotions

• Figure 18: Selected below-the-line promotions of childrens snacks, January-March 2005
• Figure 19: Selected on pack promotions of childrens snacks, January-March 2005

Distribution

• Figure 20: UK retail sales of childrens snacks, by type of outlet and value, 2000-04

The value of convenience

Forecourts are forearmed

The Consumer

Snacking between meals

• Figure 21: Agreement with the statement 的 often eat between meals・ 11-16s, 2004

Core snackers in their teens

Recognising the health message

• Figure 22: Agreement with the statement 的ts important to eat a balanced diet・ 11-16s, 2004

Image and parental influence

Who decides?

• Figure 23: Agreement with the statement 的 eat anything I like・ 11-16s, 2004

Snacking hotspots

• Figure 24: Where 11-16-year-olds eat crisps/savoury snacks the most, 2004

Ladies who snack・t school

Purchasing habits and attitudes

• Figure 25: Packet snacks bought for children, February 2005

Child focused falls short

Influence of childrens age

• Figure 26: Packet snacks bought for children, by age of children in household, February 2005

Alienating teens

Social standing

• Figure 27: Packet snacks bought for children, by social grade of respondent, February 2005

Catering for affluent snackers

The Consumer ・Detailed Demographics

• Figure 28: Where 11-16-year-olds eat crisps/savoury snacks the most, 2004
• Figure 29: Packet snacks bought for children, by demographic sub-group, February 2005

The Consumer ・Assessing Enthusiasm

Attitudes to childrens snacks

• Figure 30: Attitudes towards childrens snacks (packet snacks), February 2005

Importance of the multipack

Considerable concern

Multi-targeting to younger parents

More money, more scrutiny

A family affair

Competition from crisps

The price is right

Consumer attitudes and typologies

• Figure 31: Consumer typology group for attitudes to childrens snacks, February 2005

Price Driven (47% of sample)

Health Concerned (29% of sample)

Family Snackers (24% of sample)

Attitudes to diet

• Figure 32: Attitudes towards childrens diets by cluster, February 2005

Assessing key target groups ・correlation analysis

• Figure 33: Correlation of supermarkets shopped and snacks bought, February 2005

Sainsburys low profile

Location, location

• Figure 34: Where snacks are bought, February 2005

Assessing Enthusiasm ・Detailed Demographics

Attitudes to childrens snacks ・detailed demographics

• Figure 35: Attitudes towards childrens snacking (packet snacks), by age, gender, socio-economic group, region, working status, marital status, presence of children, media use, ACORN category and supermarket use, February 2005
• Figure 36: Consumer typologies, by gender, age and socio-economic group, presence of children, region, working and marital status, February 2005
• Figure 37: Consumer typologies, by ACORN category, media usage, supermarket usage and commercial TV viewing, February 2005

The Future

Prevailing conditions fair

・o variable

A healthy outlook?

Declining numbers of children

Forecast

• Figure 38: Forecast of the childrens snack market, 2005-10

Snacking trend will continue to drive the market forward

Widening the consumer base

Difficulties faced by the industry

• Figure 39: Indexed growth rates of the childrens snack market, by sector, at current prices, 2005-10

Mainstream snacks vs child focus snacks

Factors used to forecast