Sweet Spreads - US - September 2005

Contents

Introduction and Abbreviations

Introduction

Other relevant reports

Definition

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Hurt by the low-carb trend, sweet spreads must rebuild usage occasions

Low- and no-sugar variations supporting sales growth

Use of peanut butter, jam, jelly and honey as flavor notes suggest need for innovation

Convenience trends hurt sweet spread sales

Polarization in sweet spreads: a market for high-end and low-end

Nut butters have half of all sweet spread sales in FDM and natural channels

Honey is fastest-growing segment

Smucker s and Unilever lead sweet spreads

Mainstream supermarkets lead, but losing share to other channels

Household penetration higher but amount of consumption relatively low

Teen girls are brand influencers when it comes to sweet spreads

Gourmet shows great opportunity for growth

"Fresh focus"  at grocers could mean jam and jellies will be made on site

Market forecast to grow to $2 billion by 2010; but growth will not outpace inflation

Market Drivers

Diet plans and low-carb fallout

Peanut butter, honey, and jam flavor notes

Figure 1: Launches of confectionery, desserts/ice cream, snacks, bakery, and breakfast cereal products with peanut butter, honey, or jam/jelly flavor notes, 2000-05

Convenience and on-the-go eating

Figure 2: Types of breakfast food eaten in the household, 2000/01-2004

Upscale, gourmet, and specialty purchases

Store brands vs. national brands

Figure 3: Private-label and total sales of peanut butter, jam/jelly, and honey in the U.S., 2002 and 2004

Market Size and Trends

Market Size

Figure 4: U.S. retail sales of sweet spreads, at current and constant prices, 2000-05

Market Trends

New product launch trends (GNPD)

Figure 5: Graph: Sweet spreads new product introductions in U.S., 2002-05

Figure 6: Top five positioning claims among the new sweet spreads released since 2000

Market Segmentation

Figure 7: Sales of sweet spread market, segmented by type, 2003 and 2005

Peanut and other nut butters

Figure 8: Sales of peanut and other nut butters, at current and constant prices, 2000-05

Jam, jelly, preserves, and fruit butter

Figure 9: Sales of jam, jelly, preserves, and fruit butter, at current and constant prices, 2000-05

Honey

Figure 10: Sales of honey, at current and constant prices, 2000-05

Supply Structure

Foreign trade

Figure 11: Imports and exports of honey, 2000-04

Figure 12: Imports and exports ofjam and jelly, 2000-04

Companies and brands

Figure 13: Manufacturer sales of sweet spreads in the U.S., 2002 and 2004

Peanut and other nut butters

Figure 14: Manufacturer brand sales of peanut and other nut butters in the U.S., 2002 and 2004

Jam, jelly, preserves, and fruit butter

Figure 15: Manufacturer brand sales of jam, jelly, preserves, and fruit butter in the U.S., 2002 and 2004

Honey

Figure 16: Manufacturer brand sales of jam, jelly, preserves, and fruit butter in the U.S., 2002 and 2004

Major Manufacturers

J.M. Smucker Company

Unilever

ConAgra

Welch Foods

B&G Foods

Sioux Honey Association Coop

John Paxton, Inc.

Advertising and Promotion

J.M. Smucker Inc.

Unilever

Welch s

Retail Distribution

Introduction

Figure 17: U.S. retail sales of sweet spreads, by channel, 2003 and 2005

Supermarkets

Figure 18: Supermarket sales of sweet spreads, at current and constant prices, 2000-05

Specialty/department/gift stores

Figure 19: Specialty/department/gift store sales of sweet spreads, at current and constant prices, 2000-05

Natural supermarkets

Figure 20: Natural supermarket sales of sweet spreads, at current and constant prices, 2000-05

The Consumer

Introduction

Household usage of jams, jellies, and preserves

Figure 21: Household usage of jams, jellies, and preserves, January-September 2004

Types of jam, jelly, and preserves used in households

Figure 22: Types of jams, jellies, and preserves used by households, January-September 2004

Flavors of jam, jelly, and preserves used in households

Figure 23: Flavors of jams, jellies, and preserves used by households, January-September 2004

Figure 24: Flavors of jams, jellies, and preserves used by households, by race/ethnicity, January-September 2004

Figure 25: Flavors of jams, jellies, and preserves used by households, by cross-analysis, January-September 2004

Brands of jam, jelly, and preserves used in households

Figure 26: Brands of jams, jellies, and preserves used by households, January-September 2004

Figure 27: Brands of jams, jellies, and preserves used by households, by race/ethnicity, January-September 2004

Amount of jam, jelly, and preserves used in households

Figure 28: Number of jars of jams, jellies, and preserves used by households in the past 30 days, January-September 2004

Household usage of peanut butter

Figure 29: Household usage of peanut butter, January-September 2004

eClip

Figure: eClip1: Couple describes their usage of peanut butter for lunch

Types of peanut butter used in households

Figure 30: Types of peanut butter used by households, January-September 2004

Brands of peanut butter used in households

Figure 31: Brands of peanut butter used by households, January-September 2004

eClip

Figure: eClip2: Young mother describes her kids  experience with cheaper peanut butter brand

Figure 32: Brands of peanut butter used by households, by race/ethnicity, January-September 2004

Amount of peanut butter used in households

Figure 33: Number of jars of peanut butter used by households in the past 30 days, January-September 2004

Usage of honey, fruit jam, fruit jelly, and fruit butter

Figure 34: Household usage of honey, fruit jam, fruit jelly, and fruit butter, June 2005

Figure 35: Household usage of honey, fruit jam, fruit jelly, and fruit butter, by age, June 2005

Uses for sweet spreads

Figure 36: Ways of using jam, jelly, or fruit butter, June 2005

Using sweet spreads as gifts

Figure 37: Use of specialty jams, jellies, or honeys as gifts, June 2005

Figure 38: Use of specialty jams, jellies, or honeys as gifts, by age, June 2005

Attitudes/opinions concerning jam and jelly

Figure 39: Opinions regarding jam and jelly, June 2005

Figure 40: Opinions regarding jam and jelly, by age, June 2005

Figure 41: Opinions regarding jam and jelly, by income, June 2005

eClip

Figure: eClip3: Married mother describes how she chooses which jam or jelly to buy

Usage of sweet spreads by teenagers

Figure 42: Usage of jams, jellies, and preserves by teenagers, January-September 2004

Brands of jams, jellies, and preserves used by teenagers

Figure 43: Brands of jams, jellies, and preserves used by teenagers, January-September 2004

Figure 44: Brands of jams, jellies, and preserves used by teenagers, by race/ethnicity, January-September 2004

Frequency of eating jam and jelly?teenagers

Figure 45: Times per 30 days jam or jelly is eaten by teenagers, January-September 2004

Teenagers and product choice: jam, jelly, and preserves

Figure 46: Teenagers  choice of jam, jelly, and preserves, January-September 2004

Figure 47: Teenagers  choice of jam, jelly, and preserves, by gender and age, January-September 2004

Usage of peanut butter by teenagers

Figure 48: Usage of peanut butter by teenagers, January-September 2004

Brands of peanut butter used by teenagers

Figure 49: Brands of peanut butter used by teenagers, January-September 2004

Figure 50: Brands of peanut butter used by teenagers, by race/ethnicity, January-September 2004

Frequency of eating peanut butter?teenagers

Figure 51: Times per 30 days peanut butter is eaten by teenagers, January-September 2004

Figure 52: Times per 30 days peanut butter is eaten by teenagers, by race/ethnicity, January-September 2004

Teenagers and product choice: peanut butter

Figure 53: Teenagers  choice of peanut butter, January-September 2004

Figure 54: Teenagers  choice of peanut butter, by race/ethnicity, January-September 2004

Usage of sweet spreads by children

Figure 55: Usage of jams, jellies, and preserves by children, January-September 2004

Brands of jams, jellies, and preserves used by children

Figure 56: Brands of jams, jellies, and preserves used by children, January-September 2004

Figure 57: Brands of jams, jellies, and preserves used by children, by race/ethnicity, January-September 2004

Frequency of eating jam and jelly?children

Figure 58: Times per 30 days jam or jelly is eaten by children, January-September 2004

Figure 59: Times per 30 days jam or jelly is eaten by children, by race/ethnicity, January-September 2004

Usage of peanut butter by children

Figure 60: Usage of peanut butter by children, January-September 2004

Brands of peanut butter used by children

Figure 61: Brands of peanut butter used by children, January-September 2004

Figure 62: Brands of peanut butter used by children, by race/ethnicity, January-September 2004

Frequency of eating peanut butter?children

Figure 63: Times per 30 days peanut butter is eaten by children, January-September 2004

eClip

Figure: eClip4: Mom describes benefit of having healthy food her kids can fix themselves

Figure 64: Times per 30 days peanut butter is eaten by children, by race/ethnicity, January-September 2004

Summary

Future and Forecast

Future trends

Eating habits and diets affect consumption of sweet spreads

Continued appeal of flavor notes

Jams and jellies made on-premise

More pre-made PB&J

Market Forecast

Sweet spreads

Figure 65: Forecast of total U.S. sales of sweet spreads, at current and constant prices, 2005-2010

Peanut and other nut butters

Figure 66: Forecast of U.S. sales of peanut and other nut butters, at current and constant prices, 2005-2010

Jam, jelly, preserves, and fruit butter

Figure 67: Forecast of U.S. sales of jam, jelly, preserves, and fruit butter, at current and constant prices, 2005-2010

Honey

Figure 68: Forecast of U.S. sales of honey, at current and constant prices, 2005-2010

Forecast Factors

Appendix: Trade Associations

Appendix: New Product Developments

Category review ? Sweet spreads

Global new product trends

New products that offer "low carb"  and "low in"  formulae

Flavor experimentation

Packaging focused on portion control and/or mess-free spreading

New product briefs

Robert Rothschild Farm: Chai Apple Preserves

Price Chopper: Concord Grape Preserves

Mel-O Honey: Fruit N Honey Spread

Madhava: Mountain Gold Clover Honey

Target: Peanut Butter with Jelly

Crabtree & Evelyn: Traditional English Country Lemon Curd

Price Chopper: Blueberry Premium Flavored Honey

La Cucina Rustica: Peach Honey

Honeytree: Sugar-free Imitation Honey

Chambord: Royal Fig Deluxe Preserves

Kozlowski Farms: Sonoma County Classics Pumpkin Butter

Houston Harvest Gift Products: Grandma s Country Strawberry Jam

Fruits & Passion: Orange, Cranberry & Cardamom Spread

Lamb s Farm: Spiced Peach Preserves

Appendix: Research Methodology

Consumer Research

Sampling & Weighting

Technometrica TechnoExpresssm

ICR Surveys EXCEL

Simmons National Consumer Surveys

Greenfield Online

Presentation & Definition

Further Analysis

Trade Research

Informal trade research

Formal trade research

Desk & Internet Research

Sources

Definitions

Forecasts

Appendix: What is Mintel?

Mintel Group

Mintel Reports

Mintel Premier

Mintel ECLIPS

GNPD

Menu Insights

Comperemedia

Brokertrack

Mintel Services

Applied Research

Mintel Consulting

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