Adapting to a New Consumer Landscape

Bill Bartlett

Corporate Affairs Director

McCain Foods (GB) Ltd

• What is good?

• What is Bad?

Mixed messages =

Consumers Confused

World of Confusion

Chip Confusion

High Fat

Made from Reconstituted Potato

Heavily processed

*ICM Research showing fact perceptions.

All Chips Are Bad….

….Myth or Reality?

• We Just Peel, Cut, Cook, Freeze

McCain are keen to put the record straight

or to put it another way…..

25 Years of McCain Oven ChipsIn Home Revolution

• Changed Habits of Nation• Significant Reduction in Frying

Fat Facts….Not Fiction

• 17 Billion Chip Pans of Fat.

• ½ Billion Calories.

• (+ Chip Pan Fires)

5% Fat – Only 2 Ingredients

High Carbohydrate

Source of Fibre

Rich in Potassium

Good Source of Vit. C

Low in Sodium

Low in Sat. Fat

High in Poly Unsaturated Fat

…And What Have We Done In CateringWhere Deep Fat Frying is Necessary ?

• 1999 Best Fry Practice

• 2001 Delights

…Making Sure Our Products Are Fit For Purpose

• 2002 Reformulation Started

…And Now We Are Challenging The Status Quo

• 2003 Oven range developed

• 2006 Created by Kids for Kids

Fully engaged in the

Consultation process

School Meals

The Opportunity for Healthier Favourite Food

Nick: Kids snub our top Nick: Kids snub our top grubgrub

CELEBRITY chef Nick Nairn slammed the Executive last night after it emerged pupils are snubbing a £63million school dinner revolution.

Official figures reveal that only half of secondary pupils have EVER eaten school dinners and just one in TEN take them each day. Most head for chip shops and burger vans.

according to a new study that reveals

that half of all secondary pupils have never eaten school meals and only one in 10 does so every day

A Scottish executive report reveals that initiatives aimed at turning pupils away from junk food has failed to change eating habits.

THE school dinner revolution prompted by Jamie Oliver, the celebrity chef, appears to have had little impact in Scotland

Pupils turned off by healthy school meals

OR

Delivering Healthier Favourite Food in Schools -

NPD meets New Technology

Our Oven Trial• Pilot scheme January – June

2006.

• Rational Ovens installed in 4 secondary schools

• McCain lower fat “ovenable” potato products offered on menu

Results

• 10% increase in

hot meals eaten

• 8/10 Child Preference

• Significant Reductions

in running costs

Support & Endorsement

Kevin McKay – Past Chairman, Local Authority Catering Association

“Anything that improves the quality of meals served in schools can only be applauded and encouraged. Balancing nutritional quality with the quantities of food

required in today’s schools is challenging, and it’s great to see the nutritional and financial benefits that this project has managed to achieve.”

Support & Endorsement

Brendan Higgins – Head Teacher, Bishop Wulstan Catholic School

“Traditionally cooked chips were withdrawn from our school menu long before the "Jamie's Dinners" series. We have had the oven in place for over three months now and

it has been very impressive. We have seen a reduction of running costs and an increase in the amount of time kitchen staff have to do other jobs. I am now of the opinion that providing oven-baked chips means they can be an acceptable option on our school menu.”

Support & Endorsement

Ruth Willcox – Head of Catering, Hertfordshire Local Education Authority

“The McCain/Rationale oven project in Hertfordshire has been very successful and we have been pleased with the results. Although the schools' commitment to healthy

eating is strong, the concept of oven chips with reduced fat has been shown to be acceptable as part of a balanced diet over the week. We are currently looking at catering equipment for the future and will consider this oven as a modern option for the cooking of healthy foods offered in secondary schools.”

Support & Endorsement

Colin Ransom – Regional Manager, Sunderland Local Authority Catering Association

“Striking the balance between providing the food that children love and want to eat; and a healthy diet is always a challenge for all schools. The ovening project that has been in place in Sunderland has struck this balance

perfectly. Having seen the benefits of this project first hand, I would recommend all schools to try oven-baking food, especially foods such as chips.”

Ovens in Schools:The Conclusion

Changes to Cooking Method

+ NPD

= Favourite Food That Meets Consumers Needs

….. However There Are a Couple of Issues to Address

Ovens in Schools:The Challenge

Bill To Pay

Ovens in Schools:The Challenge

Current Guidelines Limit The Opportunity

Confusion

• Food Based Standards‘Fried Food Twice A Week …Including The

Manufacturing Process’

• FSA Nutritional Guidelines Chips– No More Than 5% Total Fat– No More Than 1% Saturated Fat

• Chip Shop Chips

Did you know?

FATSAT.FAT

*Versus FSA Nutritional Guidelines

• McCain Oven Chips • McCain Country Style Dice• McCain Lumberjacks• McCain Roast Potatoes• McCain 5% Fat Wedges

All Less Than 5% Total Fat / 1% Sat. Fat

McCain Meets The FSA Guidelines

FATSAT.FAT

In Summary

• We have a proven track record in delivering consumer solutions

• It’s the principle we apply across all of our markets

• Working with consumers and caterers is critical• As is government and agencies – but it’s not

always easy!