Sugar Confectionery - UK - April 2007

Table of Contents

• Issues in the Market
• Key themes of the report
• Definition
• Abbreviations
• Market in Brief
• Value not volume driving the market
• Pressure for spend intensifies
• Effort, reward...and sharing
• Future growth opportunities
• Internal Market Environment
• Key Points
• A more health-conscious consumer
• Impact on the younger psyche
  • Figure 1: Agreement with selected lifestyle statements, 11-14-year-olds, by age and gender, 2006
• Catering for health concerns...
• ...but allowing for indulgent values
• Heritage and nostalgia products
• Formats for lunch boxes
  • Figure 2: Where workers usually buy their lunch during the week by type of food usually purchased for lunch or snack, August 2005
• Seasonality -- less of an issue than for chocolate
• Broader Market Environment
• Key Points
• ABs limit sweet intake
• Tighter focus on older age groups
• Restrictions on advertising confectionery to children
• Key players focus on bio-degradable packaging
• Strengths and Weaknesses
• Strengths
• Weaknesses
• Competitive Context
• Key Points
• Competition for pocket money spend intensifies
• Chocolate -- strong emotional role
• Cereal bars -- the biggest threat?
• Nuts, seeds and dried fruit
  • Figure 3: UK retail volume and value sales of sweet biscuits, at current and constant prices, 2000-05
• Market Value and Forecast
• Key Points
  • Figure 6: Market size and forecast of sugar confectionery, by volume and value, 2002-12
• Value sales recover
• Forecast trends
• Future trends -- getting adults to buy more sweets
• Segment Performance
• Key Points
• Changing tastes influence segment performance
  • Figure 7: UK retail sales of defined sugar confectionery, by type and value, 2002-06
• Haribo and Rowntree sustain growth in gums and jellies
• Boiled sweets -- signs of life
• Toffee and fudge -- treat yourself
• Chews
• Other
• Market Share
• Key Points
• Shift in market share
  • Figure 8: UK retail sales of defined sugar confectionery, by manufacturer and value, 2002-06
• Nestlé consolidates pole positioning
• Haribo strides ahead
• "Others" includes some winning niche players
• Own label
• Companies and Brands
• Key Points
• Cadbury Trebor Bassett repositions key products
• Chupa Chups acquired by Perfetti Van Melle
• Haribo -- trades up to older children and young adults
• Attacking the market from every angle
• Leaf UK -- high hopes for Red Band launch
• Masterfoods -- a period of reflection
• Nestlé Gets Real
• Fox' s -- the Big Bear changes position
• Swizzels Matlow -- familiar household names
• Niche players battle for survival
• Bendicks, Walkers' Nonsuch and Smith Kendon survive
• Millar McCowan ceases trading
• Character specialists thrive
• Small overseas companies still targeting UK
• New entrants enter the fray
• The premium...
• Brand Communication and Promotion
• Key Points
• Spending on advertising peaks in 2004
  • Figure 9: Main monitored media advertising expenditure on sugar confectionery*, 2002-06
• Legislative ban on advertising to children impacts
  • Figure 10: Main monitored media advertising expenditure on sugar confectionery*, 2002-06
• Haribo is the top spender
• Reinventing...the fruit pastille
• Having fun...before it' s too late
  • Figure 11: Advertising expenditure on sugar confectionery* by media type, 2002-06
• Channels to Market
• Key Points
  • Figure 16: UK retail sales of sugar confectionery, by outlet type and value, 2002-06
• Supermarket chains target sugar confectionery
• Travel
• The Consumer -- Spoilt for Choice
• Key Points
• Importance of targeting early teens
• Children' s changing preferences
  • Figure 17: Consumption of confectionery items, 7-14-year-olds, 2002-06
  • Figure 18: How pocket money is spent, 7-14-year-olds, 2006
• Guilt, weight and health concerns
• 7-10-year-olds -- competition for pocket money intensifies
  • Figure 19: How money is spent, 7-10-year-olds, 2002-06
• Non-edible treats add value for 11-14-year-olds
  • Figure 20: Average weekly spend per category, 11-14-year-olds, 2002-06
• Consumption levels down
• Adults less tempted by sweets
  • Figure 21: Adult purchasing of sweets in the last 12 months and consumption of confectionery items, 7-14-year-olds, 2006
• Sweets as treats -- strikes a chord with adults
  • Figure 22: Purchasing of sweets (including sweets for children) in the last 12 months, 2002-06
• Sweets lose out in no-man' s land
  • Figure 23: Consumption of other confectionery items in the last 12 months, 2002-06
• The Consumer -- Popularity of Different Types
• Key Points
  • Figure 24: Types of sweet eaten in the last 6 months, December 2007
• Conscientious objectors
  • Figure 25: Non-sweet-eaters, by demographic sub-group, December 2007
• Toffees -- potential for harnessing growth
• Fizzy shapes and lollipops -- for adults too?
• Sweet occasions
  • Figure 26: Typical reasons/occasions for eating sweets, December 2007
• Sweets part of driving comfortably
• Young families share while watching TV
• Boredom -- hard to tap into this psyche
• Need an energy boost or snack? No, just a sugar fix.
• Empty calories -- not seen as a functional snack
• Appendix
• Introduction
• Consumer research
• ACORN
• Advertising data
• Internal market environment
• Health and lifestyle
  • Figure 29: Agreement with selected lifestyle statements, 2002-06
  • Figure 30: Adults who are trying to slim, 2002-06
  • Figure 31: Adults who are trying to slim, by agreement with selected statements, 2006
  • Figure 32: Frequency of dieting, 2004 and 2006
  • Figure 33: Adults who are trying to slim, by demographic sub-group, 2006
  • Figure 34: Body mass index segments, by demographic sub-group, 2006
• Broader market environment
  • Figure 35: Forecast adult population trends, by socio-economic group, 2001-11
  • Figure 36: Trends in the age structure of the UK population, by gender, 2001-11
  • Figure 37: UK households and one-person households, 2000-10
  • Figure 38: PDI and consumer expenditure, at current and constant prices, 2001-11
• Market value and forecast
• Factors incorporated in the forecast
• The Consumer -- Detailed Demographics
• Youth TGI
  • Figure 39: Agreement with selected lifestyle statements, 11-14-year-olds, by demographic sub-group, 2006
  • Figure 40: Agreement with selected lifestyle statements, 11-14-year-olds, by demographic sub-group, 2006
• Attitudes to chocolate
  • Figure 41: Attitudes to eating chocolate, August 2006
• Children' s pocket money
  • Figure 42: Total amount of money received in a week, 7-14-year-olds, 2002-06
  • Figure 43: How money is spent, 11-14-year-olds, 2002-06
  • Figure 44: Average weekly spend per category, 11-14-year-olds, 2002-06
  • Figure 45: Consumption of sweets in packets or tubes (not chocolate), 7-14-year-olds, 2002-06
  • Figure 46: Consumption of mints, 11-14-year-olds, 2002-06
  • Figure 47: Agreement with the statement ' I try not to eat too many sweets' , 7-10-year-olds, by demographic sub-group, 2006
• Adult sweet purchasing habits
  • Figure 48: Purchasing of sweets (including sweets for children) in the last 12 months, 2002-06
  • Figure 49: Purchasing of sweets (including sweets for children) in the last 12 months, by demographic sub-group, 2006
• The Consumer -- Detailed Demographics
  • Figure 50: Typical reasons/occasions for eating sweets, December 2007
  • Figure 51: Types of sweet eaten in the last 6 months, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
  • Figure 52: Types of sweet eaten in the last 6 months, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
  • Figure 53: Types of sweet eaten in the last 6 months, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
  • Figure 54: Typical reasons/occasions for eating sweets, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
  • Figure 55: Typical reasons/occasions for eating sweets, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
• Standard cross-tabs
  • Figure 56: Cross-tabulations of different types of sweets eaten, December 2007
  • Figure 57: Cross-tabulations of different types of sweets eaten by occasions, December 2007
  • Figure 58: Cross-tabulations of different types of sweets eaten by attitudes to sweets, December 2007
  • Figure 59: Cross-tabulations of occasions by different types of sweets eaten, December 2007
  • Figure 60: Cross-tabulations of reasons for eating sweets by attitudes to eating sweets, December 2007
• The Consumer -- Detailed Demographics
  • Figure 61: Positive and negative attitudes to eating sweets, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
  • Figure 62: Positive and negative attitudes to eating sweets, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage, household size, car usage and detailed lifestage, December 2007
  • Figure 63: Repertoire of types of sweets eaten, by gender, age group, social grade, marital status, lifestage, age of own children, Special Groups, working status, tenure, ITV region, ACORN group, technology usage, newspaper readership, commercial TV viewing, supermarket usage and household size, December 2007
  • Figure 64: Repertoire of sweets by types of sweets, December 2007
  • Figure 65: Repertoire of sweets by reasons for eating sweets, December 2007
  • Figure 66: Repertoire of sweets by attitudes towards sweets, December 2007