Report: Yellow Fats - UK

Yellow Fats - UK - June 2009
Issues in the Market
Key themes
Definitions
Abbreviations
Market in Brief
Slowing growth ahead as price rises ease
Arla holds top position in a concentrated market
Themes of 2008
High penetration, perceptions lag reality
Internal Market Environment
Key points
Tapping into the natural trend?
Figure 1: Consumers who are prepared to pay more for additive-free foods, by gender, age and socio-economic group, 2008
Fat -- the bad guy
- Figure 2: Household purchased quantities of food and drink, 2004/05-2007
- Figure 3: Consumers who avoid fats, by gender, age and socio-economic group, 2008
- Figure 4: Household purchased quantities of food and drink, 2004/05-2007
- Figure 5: Average UK energy intake per person per day, 2002/03-2007
Nearly half the population is slimming
- Figure 6: Trend in slimming, counting calories and checking nutritional content, 2004-08
Cooking gains ground, treats hold theirs
- Figure 7: Agreement with statements about cooking, 2004-08
- Figure 8: Consumers who like to eat less healthy foods as ' treats' , by gender, age and socio-economic group, 2008
Broader Market Environment
Key points
ABs to grow
- Figure 9: Changes in UK adult population, by socio-economic group, 2004-09 and 2009-14
Ageing population -- cutting back on yellow fats
- Figure 10: Changes in the UK population, by age, 2004-14
Cost pressure starting to ease
- Figure 11: UK farmgate price of milk, January 2004-April 2009
Competitive Context
Key points
Yellow fats in the dairy context
- Figure 12: UK retail value sales of dairy products, 2004-09
Competition to yellow fats
- Figure 13: Index of UK retail value sales of selected competitive markets to yellow fats, 2004-08
- Figure 14: UK retail value sales of selected competitive goods, 2004-08
Cheese
Sweet spreads
Edible oils
Bread under competition
- Figure 15: Frequency of eating bread, 2004-08
- Figure 16: UK retail value sales of bread, morning goods and sandwiches*, by sector, 2004-09
Strengths and Weaknesses in the Market
Strengths
Weaknesses
Market Size and Forecast
Key points
- Figure 18: UK retail value sales of yellow fats, and index of growth, 2004-14
Easing price inflation to slow value growth
Volume may benefit from demographics and downturn
- Figure 19: UK retail value sales of yellow fats, 2004-14
Butter vs. spreads?
- Figure 20: UK retail value sales of yellow fats, by type, 2004-14
Factors used in the forecast
Segment Performance
Key points
Brand activity and demand for natural foods fuel butter
- Figure 21: UK retail value sales of butter*, 2004-14
- Figure 22: UK retail value sales of butter, by type, 2004-09
Consumer move away from weight watching impacts spreads
- Figure 23: UK retail value sales of spreads, 2004-14
- Figure 24: Share of functional spreads in total UK retail value sales of spreads, 2004-09
Market Share
Key points
A concentrated market
- Figure 25: Manufacturers' shares in UK retail value sales of yellow fats, 2008
- Figure 26: Brand shares in the yellow fats market, 2006-08
A strong 2008 for Dairy Crest
Arla gains ground on the back of Lurpak
Flora under pressure at Unilever
Companies and Products
Key points
Manufacturers and brands
- Figure 27: Leading companies in the yellow fats market and their brands
Major players
Arla Foods
Dairy Crest Group
Kerrygold
McNeil Consumer Nutritionals
Unilever
Other brands
Brand Communication and Promotion
Key points
Main media spend contracts in 2008
- Figure 28: Main monitored media advertising spend on yellow fats, 2004-08
TV the channel of choice
- Figure 29: Main monitored media advertising spend on yellow fats, by media type, 2006-08
Market leaders dominate adspend
- Figure 30: Manufacturers' share of adspend vs. share of value sales, 2008
- Figure 31: Main monitored media advertising spend on yellow fats, by advertiser, 2006-08
Four fifths of spend on five brands
- Figure 32: Main monitored media advertising expenditure on yellow fats, by top-spending brands, 2006-08
Themes
A necessary reminder of taste
Provenance can chime with consumers in downturn
Laughter sells?
Channels to Market
Key points
Leading grocers dominate yellow fats
- Figure 33: UK retail value sales of yellow fats, by outlet type, 2006-08
Own-label small, but gaining in downturn
- Figure 34: Trends in consuming own-label vs. branded butter and spreads most often, 2004-08
Added health benefits appeal to Co-op and M&S shoppers
- Figure 35: Statements agree with butter, margarine and spreads, by supermarket used, March 2009
- Figure 36: Statements agree with butter, margarine and spreads, by supermarket used, March 2009 (continued)
The Consumer -- Usage
Key points
Butter wins favour from spreads
- Figure 37: Trends in consumption of butter, low-fat spreads, dairy spreads and soft margarine in the last 12 months, 2004-08
Top targets different for butter and spreads
- Figure 38: Comparison of consumption patterns of butter and low-fat spreads, dairy spreads and soft margarine in the past 12 months, 2008
- Figure 39: Most valuable consumers for butter and spreads, by age group, 2008
- Figure 40: Most valuable consumers for butter and spreads, by socio-economic group, 2008
Appendix -- Internal and Broader Market Environment
- Figure 44: Trends in healthy lifestyles and eating habits, 2004-08
- Figure 45: Healthy lifestyles and eating habits, by demographics, 2008
- Figure 46: Healthy lifestyles and eating habits, by demographics, 2008 (continued)
Calorie intake from fats
- Figure 47: Energy intake, by source, 2002/03-2007
Household consumption of fats
- Figure 48: Household consumption of fats in Great Britain (grams per week), 1942-2000
Population
- Figure 49: Structure of the UK population, by age, 2004-14
- Figure 50: Structure of the UK adult population, by socio-economic group, 2004-14
Appendix -- The Consumer -- Usage
- Figure 51: Consumption of butter in the last 12 months, by demographics, 2008
- Figure 52: Consumption of low-fat spreads, dairy spreads and soft margarine in the last 12 months, by demographics, 2008

Yellow Fats - UK - June 2009

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