Breakfast Cereals - UK - February 2008

Table of Contents

• Issues in the Market
• Definitions
• Four key issues
• Market in Brief
• Consumers are trading up
• Breakfast is back
• RTE cereals jump on the oat bandwagon
• Cereal success
• Prices are set to rise
• Premiumisation to continue
• Internal Market Environment
• Key points
• The health revolution
  • Figure 1: Agreement with selected lifestyle statements, 2003-07
• Health is the key driving force of sales and NPD
• Skipping breakfast
• The way to start the day
  • Figure 2: Agreement with selected lifestyle statements, 2003-07
• Broader Market Environment
• Key points
• FSA nutrient profiling and Ofcom Advertising Ban
• Cereal prices
• An ageing population
  • Figure 3: UK population changes, by age and socio-economic status, 2002-12
• Going upmarket
• Competitive Context
• Key points
• Toast and fruit are the key competitors
  • Figure 4: Product eaten at breakfast and frequency, December 2006
  • Figure 5: Product eaten at breakfast and frequency, December 2006
• Bread
• Yo' go' urt
• Fruit on top
• Cereal bars are growing
  • Figure 6: Opportunities and threats in the competing markets, 2002-06
• Strengths and Weaknesses in the Market
• Strengths
• Weaknesses
• Market Value and Forecast
• Key points
• Consumers are trading up
  • Figure 8: UK retail sales of breakfast cereals, 2002-07
• The future
• Rising cereal prices
• Increasing frequency of usage will be key
• Forecast
• Healthy growth set to continue
  • Figure 9: UK retail sales of breakfast cereals, 2002-12
• Health to remain a crucial market driver
• Demographic changes to promote growth
  • Figure 10: UK retail volume and value sales of RTE cereal, 2002-12
  • Figure 11: UK retail volume and value sales of hot cereal, 2002-12
• Higher growth potential for hot cereals
• Rising cereal prices
• Factors used in the forecast
• Segment Performance
• Key points
• The kings of breakfast cereals
  • Figure 12: UK retail volume and value sales of RTE cereal, 2002-07
• Easy to eat the perfect proposition
• A stable staple
• Shape of the market
  • Figure 13: Value share of sub-sections of the RTE breakfast cereal market, 2007
• I' ll have my favourite
• Doing it for the kids
• From reducing to naturally good
• The oat effect drives naturally healthy
• Minor organic
• Cold oat-base cereals have stolen hot cereals' thunder
  • Figure 14: UK retail volume and value sales of hot cereal, 2002-07
• Own-label repercussions
• Hot instant cereals are growing
  • Figure 15: UK retail volume sales of hot cereal, by type, 2003-07
• Market Share
• Key points
• Branded successful
• Very special K
  • Figure 16: The top-selling breakfast cereals in the UK, by estimated brand shares, 2006-07
• The health effect
• No compromise on favourites
• Oatso successful
• Product Positioning
• The reign of traditional brands
  • Figure 17: Price per Kilo of RTE Brands from Selected Supermarkets, January 2008
• The deflationary effect of own label
  • Figure 18: Price per Kilo of Hot-Cereal Brands from Selected Supermarkets, January 2008
• Companies and Products
• Brand map of manufacturers and brands
  • Figure 19: Map of manufacturers and brands in the breakfast cereals market, 2008
• Company profiles
• Kellogg' s UK
  • Figure 20: Key developments in the Kelloggs portfolio, 2007
• Cereal Partners UK (Nestlé)
• The Weetabix Food Company
• Quaker Oats Ltd
• W. Jordans Ltd
• Dorset Cereals Ltd
• Mornflake Oats
• Kallo Foods Ltd
• Doves Farm Foods
• Weight Watchers
• Honey Monster Foods
• Brand Communication and Promotion
• Key points
• Spending spree
  • Figure 36: Main monitored media spend on cereals, 2003-07*
  • Figure 37: Main monitored media spend, on cereals ready to eat and cereal requiring preparation, 2003-07*
• Seasonality
  • Figure 38: Monthly main monitored media spend on breakfast cereals, 2005-07
• The mighty Kellogg' s
  • Figure 39: Main monitored media spend, by advertiser, 2003-07
• Nominal spend
• Cereals requiring preparation
• Channels to Market
• Key points
  • Figure 40: UK retail distribution of breakfast cereal, 2003-07
• Multiple strengths
• Acting independently
• Multiple convenience
• Consumer 1 -- Who -- Usage and Frequency?
• Key points
• Cold breakfast cereals are a key part of the breakfast ritual
• Consumption of cold breakfast cereals
  • Figure 41: Consumption of cold breakfast cereals in the last 12 months, 2003-07
• Feeding the masses
  • Figure 42: Consumption of cold breakfast cereals in the last 12 months, by gender, age and socio-economic status, 2003-07
• Retired and ABs have daily breakfast
• Hot breakfast cereals growing as manufacturers talk up the game
  • Figure 43: Consumption of hot breakfast cereals in the last 12 months, 2003-07
  • Figure 44: Consumption of hot breakfast cereals in the last 12 months, by gender, age and socio-economic status, 2003-07
• Consumers eat both hot and cold cereals
• Cereal bars are a different competitive set
  • Figure 45: Consumption of cereal bars, cold breakfast cereals and hotbreakfast cereals in the last 12 months, 2003-07
• Cereal has a firm hold on the youth market
  • Figure 46: 7-14-year-olds who eat cereal, 2003-07
• 13-14-year-olds: the key target group
  • Figure 47: 7-14-year-olds who eat cereal, by demographic sub group, 2007
• Consumer 2 -- Usage Occasions
• Key points
• When do consumers eat cereals?
  • Figure 48: Occasions when you eat cereals, November 2007
• Week usage dominates
• Snacking popular tabloid readers
• New product packaging will help differentiate product
• Appendix
• Advertising data
• Abbreviations
• Appendix -- Internal Market Environment
• Number of times a week people eat breakfast
  • Figure 53: Number of times consumers eat breakast per week, January 200
  • Figure 54: Agreement with selected lifestyle statements, by demographic sub group, 2007
  • Figure 55: Agreement with selected lifestyle statements, by demographic sub group, 2007
  • Figure 56: Agreement with selected lifestyle statements, by demographic sub group, 2007
  • Figure 57: Agreement with selected lifestyle statements, by demographic sub group, 2007
  • Figure 58: Agreement with selected lifestyle statements, by demographic sub group, 2007
  • Figure 59: Agreement with selected lifestyle statements, 2003-07
• Appendix -- Market Sizes
  • Figure 60: UK retail volume and value sales of breakfast cereal, by type, 2003-07
• Segment performance
• Appendix -- Brand Communication and Promotion
  • Figure 61: Main monitored media spend by advertiser, 2003 - 07
  • Figure 62: Main monitored media spend, by advertiser, 2003 - 07
• Appendix -- Consumer 1 -- Detailed Demographics
  • Figure 63: Consumption of hot breakfast cereals in the last 12 months, by demographic sub group, 2007
  • Figure 64: Consumption of cold breakfast cereals in the last 12 months, by demographic sub group, 2007
• Appendix -- Youth TGI
  • Figure 65: Agreement with selected lifestyle statements on food, 7-10s, 2003-07
  • Figure 66: Agreement with selected lifestyle statements on food, 11-14s, 2003-07
  • Figure 67: Agreement with selected lifestyle statements on food, 7-10s, by gender, age, socio-economic group and region, 2007
  • Figure 68: Agreement with selected lifestyle statements on food, 11-14s, by gender, age, socio-economic group and region, 2007
• Appendix -- Meal Occasions
  • Figure 69: Meal occasions for eating breakfast cereal, November 2007
  • Figure 70: Meal occasions for eating breakfast cereal, November 2007
• Appendix -- Factors Looked for When Choosing a Cereal
  • Figure 71: Factors looked for when choosing a cereal, November 2007
  • Figure 72: Factors looked for when selecting a cereal, November 2007
  • Figure 73: Factors looked for when selecting a cereal, November 2007