The Scottish Perspective

: INSIGHTS

INSIGHTS

Objective

To develop the Scottish food and drink industry through the provision of market

intelligence, consumer insight and category management to Scottish SME’s

: INSIGHTS

Stockbrokers in 1980 predicted the demise of the traditional British chippy

Hoare Govett

1980

Shopper Consumer

The Shopper Is Not Always The Consumer

Retailer

KWP purchase – 52 w/e 30 Jan 2013

How we are shopping - Grocery Spend

255 trips

UK: £100.3 billion + 3.8% y on y

£14.95 per trip

+ 5.0% y on y

Scotland: £9.8 billion

274 trips

£13.96 per trip

Grocery Market - Where are we shopping?

GB SCOTLAND

2012 2013

YoY Spend %

5.5 15.5

3.5 3.5

-1.0 -3.9

-0.7 -3.5

12.9

33.2 16.1 9.5 16.7

24.2

1.5 2.0

Scotland

6.2 4.1

YoY Spend % GB

TM +3.8 TM +2.9

Total Grocery

Grocery (RST) 12we 17 March 2013 (KWP P04)

Spend Share - Last Quarter

“I like stores where I can get everything at the one time” (40% agree)

Top Scottish Shopper Statements

KWP purchase – 52 w/e 2nd October 2011

“I try to lead a healthy lifestyle” (39% agree)

“I will choose an unfamiliar brand if it is on offer” (36% agree)

“I shop around for special offers” (36% agree)

“I compare prices of rival brands before I buy” (36% agree)

What we are buying - Top 10 grocery categories

Value (£ million) % share of overall spend % change in spend

Total GB Scotland Total GB Scotland Total GB Scotland Take home food and drink 85035 8423 100 100 4.1 5.3 Alcohol 11041 1293 13 15.4 2.8 7.3 Dairy 10323 962 12.1 11.4 2.6 3.5 Fruit & Veg 10635 911 12.5 10.8 5.9 5.6 Chilled Convenience 8217 878 9.7 10.4 3.4 6 Fresh Red Meat 5870 577 6.9 6.9 3.9 3.7 Bakery 5133 498 6 5.9 2.4 2.1 Soft Drinks 3364 379 4 4.5 2.8 2.4 Confectionery 3203 349 3.8 4.1 1.9 4.1 Frozen Prepared Foods 3206 285 3.8 3.4 6.2 6.1 Biscuits 2593 271 3 3.2 3.1 4.3

Data: 52 week ending 20th January 2013

What we are Eating - Top 10 Meal Centres

KWP Usage – 52 w/e August 2011

Sandwiches Fish

Pasta Meat Pies Sausages

Ready Meals Soup Pizza

Roast Meat Curry

Sandwiches Soup Fish

Pasta Sausages Meat Pies

Ready Meals Pizza

Roast Meat Curry

KWP Usage – 52 w/e August 2011

What we are cooking

Spaghetti Bolognaise

Casserole

Fajita’s Chilli Lasagne

Curry Macaroni Cheese Soup

Scottish shoppers are more brand loyal than UK counterparts

Kantar Worldpanel May 11

Scottish Consumer confidence remains low

Shoppers more focussed on product quality with increased interest in food origin provenance - affecting not just the meat category

Groceries are protected but not immune from cuts

53% 48%

38% 36% 34%

28% 26% 26% 26% 24% 23% 19% 16% 9% 9%

5%

Eating & drinking outClothes

HolidaysGoing out

Treating myselfHome entertainmentCharitable donations

SavingsHome improvements

Car travelFood shopping

Air travelGym membership

InsuranceHired help

House payments

Areas shoppers expect to cut back on in 2013

• Shoppers are most likely to cut back on foodservice and entertainment (particularly 18-24 year olds)

• “We used to eat out once a week but

that’ll go down to maybe once a month” ...and holidays

• “It won’t be food we cut back but things like holidays, as we won’t be able to save”

• However, one in four do expect to cut

back on food, particularly families (32%) and DE shoppers (30%)

So are we all “Doomed”?

Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults

Importance of Availability of Scottish Food and Drink

0% 20% 40% 60% 80% 100% 120%

Confectionery

Soft Drinks

Biscuits,Cakes

Game

Fish / Shellfish

Poultry

Bakery

Fruit & Vegetables

Dairy

Red MeatVery important

Fairly important

Not very important

Not at all important

Don't know

Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults

0 20 40 60 80 100

Glasgow

Highlands/Islands

Very Important

Fairly Important

0 50 100

Glasgow

North East Scot

Fish / Shellfish Fruit / Veg

Importance of Availability of Scottish Food and Drink- Regional Variations

Scotland Food & Drink / YouGov Scottish Opinion Omnibus Jan 12, 2012. Base: All Adults

Likelihood to Pay More for Scottish Products

53% 33%

6% 1% 7%

Wouldn't Pay More

Up to 10%

Up to 20%

Up to 30%

Don't Know

Source: ShopperTrack : Base: All main shoppers in Scotland and London SE Sep’11

Frequency of Paying Extra for Premium

28% 17%

54% 67%

18% 17%

London SE Scotland

Rarely/never

Sometimes

Always/usually

+10%

+7%

2014 Food & Drink Commonwealth Games: 23 July – 3 Aug • 25 days; 1 million tickets; 2 million meals • Global audience 1.5bn

Ryder Cup, Gleneagles : 26 – 28 Sep • Third largest event on sporting calendar • 45,000 daily visitors

Homecoming Scotland : 1 Jan – 31 Dec • Huge programme of events country-wide • Key themes: Food & Drink; Ancestry; Active; Creative & Natural

2013

10,500 + 1