Cheese - UK - April 2009

Table of Contents

• Issues in the Market
• Key themes
• Definitions
• The speciality market
• Abbreviations
• Market in Brief
• Cheese market worth in excess of £2 billion
• Penetration rate for cheese may have reached its peak
• Health concerns are a major issue...
• ...although other areas are also being addressed
• Dominant own-label faces ever present challenge from branded cheese
• Broad appeal for cheese
• Further innovation essential if market is to prosper
• Internal Market Environment
• Key points
• Cheese remains popular with adults
• Rising milk prices may hit sales
  • Figure 1: UK farmgate price of milk, 2003-08
• Rising health awareness is having impact on market
  • Figure 2: Agreement with selected statements about diet, 2004-08
• FSA campaign focused on saturated fat consumption
• Provenance emerging as an important factor
  • Figure 3: Agreement with selected statements about shopping, 2004-08
• Organic also important
• Economic slowdown results in down trading
• Cooking from scratch brings about opportunities
  • Figure 4: Agreement with selected statements about cooking, 2004-08
• Uses for cheese
• Savoury biscuit sales on the up...
  • Figure 5: Other products bought, by cheese eaters, 2008
• Lunch box opportunities less obvious
• Snacking opportunities are more positive
• Broader Market Environment
• Key points
• Increased affluence brings mixed message for the market
  • Figure 6: Forecast adult population trends, by socio-economic group, 2004-14
• Ageing population may hit heavy usage of cheese
  • Figure 7: Trends and projections in UK population, 2004-14
• FSA forces ban on children' s advertising...
• ...while focusing on better labelling
• EU origin legislation impinges on marketing
  • Figure 8: EU Protected Food Names Scheme
• Competitive Context
• Key points
• Cheese performs better than the dairy sector in general
  • Figure 9: UK retail value sales of dairy products, cheese and ham, 2004-09
• Sandwiches prove the most popular way of eating cheese
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Size and Forecast
• Key points
• Growth in market value outstrips volume sales, but fails to keep pace with inflation
  • Figure 13: UK retail volume and value sales of cheese, at current and constant prices, 2004-14
  • Figure 14: UK retail value sales of cheese and % annual growth, 2004-14
• Value market shows steady expansion
• Volume sales show more modest growth
• Prices move up although with pressure for price maintenance
• Soft cheese records best performance
  • Figure 15: UK retail value sales of cheese, by sector, 2004, 2006 and 2008
• Forecast
  • Figure 16: Indexed growth in volume and value sales of cheese, 2004-14
  • Figure 17: Per capita consumption of cheese in the UK compared to France, Italy and Spain, 2009
• Factors used in the forecast
• Segment Performance
• Key points
• Cheddar still dominates, despite activity elsewhere in the market
  • Figure 18: UK retail value sales of cheese, by sector, 2004-14
• Cheddar builds on its success
  • Figure 19: UK retail value sales of Cheddar (incl extra mature, vintage and blue), by type, 2004-08
• Continental benefits from a broadening of tastes
• UK territorial sees renewed interest
• Processed suffers from health backlash
• Soft cheese emerges as the star performer
• Market Share
• Key points
• Retail own label makes a comeback as credit crunch hits consumers
  • Figure 20: Brands' retail value shares in cheese, 2007-08
• Companies and Products
• Key points
• Manufacturers and brands
  • Figure 21: Leading companies and their brands in the cheese market
• Bel UK
• DairyCrest
• Kraft Foods Inc
• Lactalis McLelland
• North Downs Dairy Co. Ltd
• Wyke Farms
• Brand Communication and Promotion
• Key points
• Interest in promoting cheese remains high
  • Figure 22: Main monitored media advertising spend on cheese, 2004-08
• Big brands dominate
  • Figure 23: Main monitored media spend by brand, 2006-08
• Television is the preferred choice for advertisers
  • Figure 24: Main monitored media advertising expenditure on cheese, by media type, 2004-08
• Channels to Market
• Key points
• Supermarkets dominate market
  • Figure 25: UK retail value sales of cheese, by outlet type, 2006-08
• Big four capture around two thirds of sales
• Other outlets continue to prosper -- just
• Discounters offer a new level of competition
• The Consumer -- Usage
• Key points
• Overall consumption is holding up well
  • Figure 26: Trends in consumption of cheese in the last 12 months, 2004-08
• Women find cheese more appealing
• Young adults prefer packaged cheese...
• ...with social differences in the way cheese is purchased
• Families with children represent an important market
• Consumption rates in major cities appears lower
• Territorial cheeses benefit in a sluggish market
  • Figure 27: Variety of cheese (in blocks) eaten in the last 12 months, 2004-08
• Is Britain going soft?
  • Figure 28: Type of packed cheese eaten in the last 12 months, 2004-08
• Appendix -- Internal Market Environment
  • Figure 37: Which, if any, of these statements describe your eating habits? Please choose all that apply, January 2009
  • Figure 38: Which, if any, of these statements describe your eating habits? Please choose all that apply January 2009 (contd)
  • Figure 39: Trend in consumption of savoury biscuits in the last 12 months, 2004-08
  • Figure 40: Consumption of pickles, chutney and relish in the last 12 months, 2004-08
• Appendix -- Who' s Innovating?
  • Figure 41: Product launch, by segmentation, 2006-08
  • Figure 42: NPD by manufacturer, 2008
• Appendix -- The Consumer -- Usage
  • Figure 43: Consumption of cheese (block or packeted) in the last 12 months, by detailed demographics, 2008
  • Figure 44: Consumption of cheese (in blocks) in the last 12 months, by detailed demographics, 2008
  • Figure 45: Consumption of packeted cheese in the last 12 months, by detailed demographics, 2008