Milk and Cream - UK - May 2008

Table of Contents

• Issues in the Market
• Definitions
• Four key points
• Abbreviations
• Market in Brief
• A commodity past
• Manufacturers need to talk the game up better
• The original super food
• Price rises set to continue
• Internal Market Environment
• Key points
• Price rises
• Rising costs across the board
  • Figure 1: UK milk farm gate prices, 2006-08
• The China challenge
• Consumer drivers
• A healthy response
  • Figure 2: Agreement with selected lifestyle statements, 2003-07
• Natural benefits
  • Figure 3: Nutritional benefits of milk, 2007
• Mixed messages
• Functional milk
• Soya and dairy-free alternatives
• A niche alternative
  • Figure 4: Agreement with selected lifestyle statements, 2003-07
• Organic
• Broader Market Environment
• Key points
• Changing occasions
• Tea
  • Figure 5: Consumption of standard tea in the last 12 months, 2003-07
• Coffee
  • Figure 6: Consumption of coffee in the last 12 months, 2003-07
• Breakfast cereals
  • Figure 7: Consumption of breakfast cereals in the last 12 months, 2003-07
• Hot chocolate
  • Figure 8: Frequency of consumption of milk drinks (including chocolate and cocoa), 2003-07
• Home-baking scratch cooking
  • Figure 9: Agreement with selected lifestyle statements, 2003-07
• Demographic changes
  • Figure 10: Effect of the changing make-up in demographics of the UK population on the market for milk, 2007
• Other issues
• Regulatory issues
• Introduction of 1% & 2% milk
• Farmers going out of business
  • Figure 11: Number of UK dairy producers, 2002-07
• Competitive Context
• Key points
  • Figure 12: Competitive market for milk and flavoured milk, 2007
• Ever-successful yogurt
• Smoothies
• Tea
• Coffee
• Sports and energy drinks
• Milk at school
• Who' s Innovating?
• Key points
• Tutti frutti flavours
• Children' s Choice
• Functional flourish
• Packaging goes eco
• Longlife extends
• Sports support
• Provenance powered
• Boosting flavour
• Market Value and Forecast
• Key points
• Milk still matters
  • Figure 13: UK retail sales of liquid white milk, liquid flavoured milk and cream, 2003-08
  • Figure 14: UK retail sales of milk, by sector, by volume, 2003-07
• Precarious times for producers
  • Figure 15: UK retail sales of liquid white milk, 2003-08
• A flavour hit
  • Figure 16: UK retail sales of ready-to-drink liquid flavoured milk, 2003-08
• Indulgence saves the day for cream
  • Figure 17: UK retail sales of cream, 2003-08
• The future and forecast
• Healthy growth set to continue
  • Figure 18: Historic & Forecast of retail sales of liquid white milk, liquid flavoured milk and cream, 2003-13
• Demographic changes to promote growth
• Higher growth potential for flavoured milk
  • Figure 19: Historic and Forecast of retail sales of liquid white milk, 2003-13
  • Figure 20: Forecast of retail sales of liquid flavoured milk, 2003-13
  • Figure 21: Forecast of retail sales of cream, 2003-13
• Factors used in the forecast
• Segment Performance
• Key points
• Skimmed wins!
  • Figure 22: UK retail sales of liquid milk, by fat content, 2003-07
• A raw debate
  • Figure 23: UK retail sales of white liquid milk, by process type, 2003-07
• Small and perfectly formed
  • Figure 24: UK volume retail sales of white liquid milk, by packaging type and size, 2003-07
• UHT goes big
  • Figure 25: UK retail value sales of white liquid milk, by sector, 2003-07
• Unconventional consumers
• So-ya good
  • Figure 26: UK volume retail sales of soya ' milk' , by segment, 2003-07
• Ready-to-drink flavoured milk
• Flavourful milk
  • Figure 27: UK retail sales of ready-to-drink flavoured milk, by lifespan, flavour and pack type, 2003-07
• Flavoured milk
  • Figure 28: UK sales of flavoured milk and modifiers, by sector, 2003-07
• Creamy plateaus
  • Figure 29: UK retail sales of cream, by segment, 2003-07
  • Figure 30: UK volume retail sales of cream, by segment, 2003-07
• A lighter option
  • Figure 31: UK value retail sales of cream, by segment, 2003-07
• Market Share
• Key points
• Arla tops production
  • Figure 32: Manufacturer volume shares for liquid white milk, 2003-07
• Retailer relationships
• Brand-building pioneers
  • Figure 33: Brand share in the milk market, 2006-07
• Milk craven-ings
• A healthy future
• Flavours in favour
  • Figure 34: Brand share of flavoured milk drinks, 2006-07
• Product Positioning
• Key points
• The white commodity
  • Figure 35: Price of liquid milk, £ per litre, April 2008
• The cream debate
  • Figure 36: Price of cream from price check, £ per 100 grams, April 2008
• Brands win in flavour
  • Figure 37: Prices of flavoured milk from price check, £ per litre, April 2008
• Companies and Products
• Brand map
  • Figure 38: Company, brand, product map of the UK milk market, 2007
• Company profiles
• Arla Foods UK Plc
• Dairy Crest
• Dairy Farmers of Britain
• First Milk
• Graham' s Dairies
• Lactalis McLelland
• Milk Link
• Rachel' s Organic
• Robert Wiseman Dairies Ltd
• Unilever
• Flavoured milk and milk modifiers
• The Silver Spoon Company
• Britvic Plc
• Campina Group
• Mars UK Ltd
• My Goodness Ltd
• Nestlé
• Dairy alternatives
• Alpro
• So Good International
• Industry bodies
• Dairy Co
• The Dairy Council
• Farmers For Action (FFA)
• National Farmers' Union (NFU)
• Dairy UK
• Brand Communication and Promotion
• Key points
  • Figure 39: Main monitored media spend, 2003-07
• A diluted market
• Spend increases as the importance of brands grows
  • Figure 40: Main monitored media spend on milk, by company, 2005-07
• Golden opportunity
• Channels to Market
• Key points
• The death of doorstop
  • Figure 41: Sales of white milk, by outlet type, 2002-07
• Flavour-full
  • Figure 42: Sales of liquid flavoured milk, by outlet type, 2003-07
• Cream goes multiple
  • Figure 43: Sales of cream, by outlet type, 2003-07
• Milk Types -- Usage: What do Consumers Drink?
• Key points
  • Figure 44: Types of milk used or drunk, by detailed demographics, February-March 2008
• A thinner future
• Full fat fans
  • Figure 45: Usage of full fat milk by age, region and presence of children in household, February-March 2008
• The emerging sectors -- organic and soya
• Milk type repertoire
  • Figure 46: Number of types of milk drunk/used*, February-March 2008
• One love
  • Figure 47: Consumer profile of those who drink/use* three or more types of milk**, February-March 2008
• Encouraging a repertoire approach
• Children' s and Young Adults Drinking Habits
• Healthy habits
  • Figure 48: Drinks drunk by 11-25-year-olds once a week, March 2008
• A juicy journey
• Smoothies
• Penetration of flavoured milk drops away with age
• Milk' s about the young
  • Figure 49: 7-14s who drink flavoured milk drinks, by demographic sub-group, 2007
• Light usage dominates
  • Figure 50: Amount of flavoured milk drinks consumed in last week, who buys and where drunk most, 2003-07
• A fresh start to the day
• A girl problem
  • Figure 51: 11-14s who regularly have milk at breakfast, by demographic sub-group, 2007
• Attitudes Towards Soya Milk
• Key points
  • Figure 57: Attitudes towards soya milk, February-March 2008
• Taste is the primary barrier to purchase
• Appendix -- Internal Market Environment
• 3 A Day
  • Figure 58: Agreement with the statement ' I like to try out new food products' , by demographic sub-group, 2007
  • Figure 59: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 60: Agreement with selected lifestyle statements, by demographic sub-group, 2007
  • Figure 61: Agreement with selected lifestyle statements, by demographic sub-group, 2007
• Appendix -- Broader Market Environment
• All coffee
  • Figure 62: Consumption of fresh ground or instant coffee in the last 12 months, by demographic sub-group, 2007
• Standard tea
  • Figure 63: Consumption of standard tea* in the last 12 months, by demographic sub-group, 2007
• Cold breakfast cereals
  • Figure 64: Consumption of cold breakfast cereals in the last 12 months, by demographic sub-group, 2007
• Hot breakfast cereals
  • Figure 65: Consumption of hot breakfast cereals in the last 12 months, by demographic sub-group, 2007
• Appendix -- Milk Types -- Usage: What do Consumers Drink?
• Milk types drunk
  • Figure 66: Types of milk used or drunk, by detailed demographics, February-March 2008
  • Figure 67: Types of milk used or drunk, by detailed demographics, February-March 2008
• Milk types -- repertoire analysis
  • Figure 68: Number of types of milk drunk/used, by demographics, 2008
• Repertoire by attitudes towards health and lifestyle
  • Figure 69: Number of types of milk drunk/used, by attitudes towards health and lifestyle, 2008
• Repertoire by type
  • Figure 70: Number of types of milk drunk/used, by types, 2008 (column %)
• Appendix -- Children' s and Young Adults Drinking Habits
  • Figure 71: Drinks consumed by 11-25-year-olds once a week, March 2008
  • Figure 72: Drinks consumed by 11-25-year-olds once a week, March 2008
  • Figure 73: Drinks consumed by 11-25-year-olds once a week, March 2008
• Appendix -- Attitudes to Soya Milk
  • Figure 81: Attitudes to soya milk, by detailed demographics, February-March 2008
  • Figure 82: Attitudes to soya milk, by detailed demographics, February-March 2008