Premium Foods - UK - September 2008

Table of Contents

• Issues in the Market
• Key themes
• Definition
• Abbreviations
• Market in Brief
• Vigorous growth
• Claims and positioning
• Multiples and brands
• A mixed bag for the shopper
• Future directions
• Internal Market Environment
• Key points
• The peculiarity of the British
• But things have changed
• Media also play their part
• Availability
• A taste for good things
  • Figure 1: Trends for lifestyle statements about premium/quality goods, 2003-07
• Eating out
• The pleasures of home and table
  • Figure 2: Trends for lifestyle statements about cooking & eating food, 2003-07
• Ethical production and food miles
  • Figure 3: Trends for lifestyle statements about buying food, 2003-07
• Healthy eating
• Broader Market Environment
• Key points
• Weaker consumer confidence?
• Sharp rise in food prices
• Are higher prices here to stay?
• Key target group numbers
  • Figure 4: UK population, by socio-economic group, 2003-13
• Changing age structure broadly neutral
  • Figure 5: UK population trends by age, 2003-13
• Competitive Context
• Key points
• A fillip for the value sector
  • Figure 6: UK retail sales of cheapest on display own-label food, 2003-08
• Premium bringing real value
  • Figure 7: UK retail sales of own label food, 2003-08
• What role will standard have going forward?
• What of the brands?
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Premium Positioning -- Main meals
• Key points
• Pathways to value growth
• Soup
  • Figure 10: UK retail sales of soup, by sector, 2003-07
• Market trends
• Brand positioning
  • Figure 11: Attributes contributing to price premium in the soup market, 2008
• Main themes
• Proliferation at the premium end
• Sausages
  • Figure 12: UK retail sales of sausages, by sector, 2003-07
• Market trends
• Brand positioning
  • Figure 13: Attributes contributing to price premium in the sausages market, 2008
• Main themes
• Own label in the ascendant
• Ready meals -- market trends
  • Figure 14: UK retail sales of ready meals, by sector, 2003-07
• Brand positioning
  • Figure 15: Attributes contributing to a price premium in the ready meals market, 2008
• The dominance of own label
• Tasty proposition
• Premium Positioning -- Snacks and Confectionery
• Key points
• Premium crisps drive sales
  • Figure 16: UK retail sales of crisps & snacks, by sector, 2003-07
• Brand positioning
  • Figure 17: Attributes contributing to price premium in the crisps and snacks market, 2008
• Quality and flavour
• Credibility
• Chocolate -- market trends
  • Figure 18: UK retail sales of moulded bar chocolate, by sector, 2003-07
• Brand positioning
  • Figure 19: Attributes contributing to price premium in the chocolate confectionery market, 2008
• Brands rule
• Premium Positioning -- Desserts
• Key points
• Yogurt -- market trends
  • Figure 20: UK retail sales of yogurt* by sector, 2006 and 2007
• Brand positioning
  • Figure 21: Attributes contributing to price premium in the yogurt market, 2008
• Ingredients, provenance and health come together
• Ice cream -- market trends
  • Figure 22: UK retail sales of ice cream, by sector, 2004-07
• Wow factor flavours
• Brand positioning
  • Figure 23: Attributes contributing to price premium in the take-home ice cream market, 2008
• Sheer pleasure
• Companies and products
• Soup
• New Covent Garden
• Serious Food Company
• Sausages
• Duchy Originals
• Helen Browning
• Ready meals
• Bighams
• COOK
• Crisps and snacks
• Tyrrells
• Salty Dog
• Kettle Chips
• Yogurt
• Yeo Valley
• Rachel' s Organic
• Ice cream
• Häagen-Dazs
• Ben & Jerry' s
• Chocolate
• Green & Blacks
• Hotel Chocolat
• Brand Communication and Promotion
• Key points
• Premium promotion soars
  • Figure 24: Main advertising expenditure on premium food own label ranges, 2004-08
• The premium lead the premium
• Fair-trade and organic take a back seat
• Little attention drawn to local sourcing
• Channels to Market
• Key points
• The interplay of multiples and independents
  • Figure 25: Sales of premium foods, by type of outlet, 2008
• Varying degrees of dominance
• From the smaller to the larger
• The large multiples
• Tesco
• Asda
• Sainsbury' s
• Morrisons
• Somerfield
• Premium multiples
• Waitrose
• Marks & Spencer
• Booths
• Premium produce from near and far
• The farms
• The Consumer: Premium Foods Bought
• Key points
• Priorities for spending more
  • Figure 26: Food categories, consumers are willing to pay a higher price, May 2008
• Invest in the raw ingredients
• What people say and what they do
• Eight in ten will pay more
• Limits and opportunities
• Turning to economy
  • Figure 27: Frequency of buying own label economy food ranges, May 2008
• Part of the repertoire
• Appendix
• Advertising data
• Appendix: Internal Market Environment
  • Figure 32: Demographics for luxury buying statements, 2007
  • Figure 33: Eating out, at current prices*, 2003-08
  • Figure 34: Demographics for food statements, 2007
  • Figure 35: Demographics for food statements, 2007
  • Figure 36: Demographics for food statements, 2007
  • Figure 37: Incidence of being obese among men and women, by age group, 1994 and 2003
• Appendix: Who' s Innovating
  • Figure 38: Top claims by sub-category and claim: Premium, 2006-08
  • Figure 39: Top claims by sub-category and claim: Economy, 2006-08
  • Figure 40: Top claims by sub-category and company: Premium, 2006-08
  • Figure 41: Top claims by sub-category and company: Economy, 2006-08
• Appendix: Brand Communication and Promotion
  • Figure 42: Advertising expenditure on premium food ranges in relation to total spending, 2004-08
  • Figure 43: Main advertising expenditure on Fair-trade & organic food ranges, 2004-08
• Appendix: Premium Foods Bought -- Detailed Demographics
  • Figure 44: Food categories, consumers are willing to pay a higher price, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, May 2008
  • Figure 45: Food categories, consumers are willing to pay a higher price, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, May 2008
  • Figure 46: Food categories, consumers are willing to pay a higher price, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, May 2008
  • Figure 47: Food categories, consumers are willing to pay a higher price, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, May 2008
  • Figure 48: Frequency of buying own label economy food ranges, by gender, age, socio-economic group, marital status, lifestage, presence of children, Mintel' s Special Groups, working status, tenure, region, ACORN category, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage, detailed lifestage groups and terminal education age, May 2008