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  • 8/13/2019 Pulse Report Chilled and Fresh Q3 2013

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    PULSE REPORT

    IRI Pulse Report Chilled & Fresh

    Welcome to the Pulse Q3 2013 edition for chilled and fresh. We hope

    you find it useful. Please do not hesitate to contact us if you have any

    questions or comments at [email protected].

    Q3 2013

    IRIworldwide.eu

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    PULSE REPORT

    About the Report

    2

    This chilled and fresh report is one of 10 super category reports designed to show high-

    level comparison and analysis for retail markets across major countries in Europe.

    This report contains data gathered from around Europe. This market was split into the

    following categories: yogurts, dairy desserts and drinks, cream, eggs, margarines, butter,

    fats and spreads, milk, cheese, chilled juices, fresh desserts, salads, tofu/soya, chilled dips

    and sauces, ready meals, chilled fish and seafood, charcuterie, fresh vegetables and fresh

    fruit.

    The report highlights key metrics such as total sales figures, market trends, category

    shares, winners and losers for Europe and for individual countries.

    The data has been sourced from IRI retail databases and Eurostat the statistical branch

    of administration for the European Commission.

    The countries included in the report are: France, Germany, Italy, the Netherlands, Spain

    and the United Kingdom (UK).

    The market channels used for each country in this report are as follows:

    Country Channels used

    UK Hypermarkets, supermarkets, drugstores and impulse outlets

    ESHypermarkets, supermarkets, hard Discounters and drugstores. Itincludes the Canary Islands.

    DE Hypermarkets, supermarkets, hard discounters and drugstores

    NL Hypermarkets, supermarkets, hard discounters and drugstores

    ITHypermarkets, supermarkets, small self service, hard discounters and

    drugstores

    FRHypermarkets and supermarkets

    For analytical purposes the data sourced from available retail databases has been

    consolidated to provide consistent results. However, for some countries it was not possible

    to source data pertaining to certain categories. Where this occurred, it has been

    documented in the Notes section found at the end of the report.

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    PULSE REPORT

    On the Radar

    3

    ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOR

    Source: Eurostat, September 2013

    The chilled and fresh category in Europeremains in growth (up +1%), but theslowdown continues. Behind theheadlines, though, there are some keysuccess stories driven by off-shelf supportand strong channel strategies.

    As the market approaches the 100mmark, the challenge for retailers andmanufacturers alike is to drive the qualityoffering that only chilled can provide tounlock inflation-beating growth.

    POPULATION INMILLIONS

    UNEMPLOYMENT(%)

    AVERAGE 12MONTH INFLATION

    RATESGDP IN MILLIONS

    ()

    Jan.2012

    Jan.2013

    Average2012

    Sep.2013

    Average2012

    Sep.2013 2012 2013 (e)

    France 65.3 65.6 10.2 11.1 +2.5 +1.2 2 032 297 2 059 358

    Germany 80.3 80.5 5.5 5.2 +2.4 +1.8 2 644 200 2 694 499

    Italy 59.3 59.6 10.7 12.5 +3.5 +1.8 1 565 916 1 568 388

    Netherlands 16.7 16.8 5.3 7.0 +2.8 +3.1 600 638 604 459

    Spain 46.8 46.7 25.0 26.6 +2.3 +2.3 1 049 525 1 051 076

    UnitedKingdom 63.4 63.8 7.9 7.5 +3.7 +2.7 1 901 001 1 854 920

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    PULSE REPORT

    3 180 3 141 3 174 3 237 3 201 3 181

    2 325 2 352 2 329 2 222 2 311 2 352

    2 645 2 552 2 620 2 624 2 700 2 573

    3 751 3 469 3 629 3 675 3 732 3 454

    7 441 7 321 7 589 7 576 7 430 7 510

    5 585 5 5785 947 5 647 5 584 5 696

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    30,000

    01-jul-12 01-oct-12 30-dic-12 31-mar-13 30-jun-13 29-sep-13

    Millions

    Period Ending

    France

    Germany

    Italy

    Netherlands

    Spain

    UK

    GLOBAL TRENDS

    4

    +0.2%

    +1.6%

    +1.0%

    TOTAL EUROPE +1.0%

    VALUE SALES IN MILLIONS ()

    Total EU 99 995

    DE 30 105

    FR 22 875

    IT 14 490

    UK 12 794*

    NL 10 518

    ES 9 213

    TOTAL CHILLED & FRESH VALUE SALES AND % CHANGE VS. PRIOR YEAR

    *based on an exchange rate of1.150 to the pound

    -0.4%

    +1.1%

    +1.4%

    TOTAL CHILLED & FRESH VALUE SALES FOR THE LAST SIX QUARTERS(EURO)

    Source: IRI retail databases, period ending 29 September 2013 and prior five quarters

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    PULSE REPORT

    Europe

    5

    20 199

    10 866

    8 009

    5 7194 717 4 340 3 605

    21 009

    6 2545 002

    Charcuterie Cheese

    Yogurts, Dairy Desserts & Drinks Ready Meals

    Margarine, Butter, Fats & Spreads Milk

    Fresh Desserts Chilled Juices

    Fresh Vegetables Eggs

    Euros,

    inMillions

    CATEGORY VALUE SALES IN THE LAST YEAR

    Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom

    KEY TRENDS

    The chilled and fresh market is of huge

    significance in Europe, with sales almost

    touching the 100,000m mark. However,

    continued deceleration of growth is a

    concern, with sales behind inflationary

    growth in all markets (despite growing

    populations everywhere other than Spain,

    which should be driving growth levels).

    The chilled and fresh market continues to

    be dominated by the top three sectors;charcuterie, cheese and yogurts/dairy.

    Combined, these account for 52% of the

    total fresh and hilled market. However,

    yogurt/dairys long-term negative trend

    continues; as a result, the sector is losing

    share within the chilled and fresh market.

    Of greater concern, the magnitude of the

    sectors decline impacting on the total

    performance of the category.

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Charcuterie 21.0%

    Cheese 20.2%

    Yogurts, Dairy Desserts & Drinks 10.9%

    Ready Meals 8.0%

    Margarine, Butter, Fats & Spreads 6.2%

    Milk 5.7%

    Fresh Desserts 5.0%

    Chilled Juices 4.7%Fresh Vegetables 4.3%

    Eggs 3.6%

    Fresh Fruit 2.6%

    Chilled Fish and Seafood 2.4%

    Salads 2.4%

    Cream 1.9%

    Chilled Dips and Sauces 0.7%

    Tofu / Soya 0.1%

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Europe

    6

    Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom

    TOP LOSERS: VALUE SALES

    CHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALES

    CHANGE VS. YR. AGO ()

    215.8

    209.8

    163.0

    144.0

    475.6

    0 100 200 300 400 500 600

    Charcuterie

    Eggs

    Fresh Fruit

    Cheese

    Fresh

    Vegetables

    Millions

    6 254

    8 009

    20 199

    10 866

    21 009

    -0.92.3 -3.9 1.30.8

    Charcuterie

    Cheese

    Yogurts,

    Dairy

    Desserts&

    Drinks

    Ready

    Meals

    Margarine,

    Butter,

    Fats&

    Spreads

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    The two key categories of charcuterie and

    cheese continue to drive growth, withcombined gains of more then 600m. A

    warm, sunny Q3 on the back of poor

    weather during Q2 in many markets has

    helped drive sales of the seasonal sectors,

    such as barbecue occasions.

    Margarine, butter, fats and spreads

    continue to decline despite an

    improvement in most markets. However,

    heavy losses in the Netherlands and

    particularly the UK have contributed to a

    weak overall position for Europe in Q3.

    The sharpest category losses come from

    the yogurts, dairy desserts and drinks

    category, which is experiencing heavy long

    term losses in most markets due to a

    combination of changing dietary trends

    and promotional fatigue.

    - 14.3

    - 16.5

    - 438.1

    - 54.5

    -500 -400 -300 -200 -100 0

    Fresh Desserts

    Chilled Juices

    Margarine, Butter, Fats &Spreads

    Yogurts, Dairy Desserts &

    Drinks

    .Millions

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    France

    7

    KEY TRENDS

    Value sales achieved significant growth

    across chilled and fresh categories, up

    2.3% for Q3 2013 versus the prior year,

    after a period of stability on Q2.

    Volume sales also posted commendable

    growth, at +1.2% for the quarter.

    Strong chilled and fresh performance

    supported exceptional global FMCG value

    sales growth of more than 3% for Q3

    2013. The drinks sector also experienced

    healthy growth.

    Good weather conditions in Q3 followed a

    cold and rainy Q2, positively impacting

    chilled and fresh sales.

    4 515

    2 8132 580

    1 335 1 165 982 905607

    5 271

    1 621

    Charcuterie Cheese

    Ready Meals Yogurts, Dairy Desserts & Drinks

    Chilled Fish and Seafood Margarine, Butter, Fats & Spreads

    Fresh Desserts Salads

    Eggs Fresh Vegetables

    Euros,

    inMillions

    CATEGORY VALUE SALES IN THE LAST YEAR

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Charcuterie 23.0%

    Cheese 19.7%

    Ready Meals 12.3%

    Yogurts, Dairy Desserts & Drinks 11.3%

    Chilled Fish and Seafood 7.1%

    Margarine, Butter, Fats & Spreads 5.8%

    Fresh Desserts 5.1%

    Salads 4.3%Eggs 4.0%

    Fresh Vegetables 2.7%

    Chilled Juices 1.5%

    Cream 1.2%

    Fresh Fruit 1.1%

    Milk 0.4%

    Tofu / Soya 0.3%

    Chilled Dips and Sauces 0.2%

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    France

    8

    TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()

    119.0

    74.2

    51.6

    31.4

    23.7

    0 50 100 150

    Charcuterie

    Cheese

    Ready Meals

    Salads

    Eggs

    Millions

    1 621

    2 580

    4 515

    2 813

    5 271

    0.22.3 1.9 -3.11.7

    Charcuterie

    Cheese

    Ready

    Meals

    Yogurts,

    Dairy

    Desserts&

    Drinks

    Chilled

    Fish

    and

    Seafood

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    Top five winner categories are variously

    impacted by good weather conditions onQ3, leading to the following evolution on

    52 weeks ending 09/29/2013:

    Cheese growth was supported primarily by

    strong growth of Mediterranean cheese

    (mozzarella, feta) and salad cheeses.

    Similarly, charcuterie categories that are

    popular picnic and barbeque components,

    such as fresh sausage, roasted pork, dried

    ham and dried sausage, contributedheavily to growth of the category.

    Ready meal growth remains strong but has

    decelerated slightly due to hot weather,

    which was more suitable for salads

    consumption than hot ready meals.

    Chilled fish and seafood sales were flat for

    the quarter. Surimi fish stabilized after

    three quarters of loss. Whether this is a

    long-term reversal of the trend remains to

    be seen.

    - 81.6

    -100 -80 -60 -40 -20 0

    Yogurts, Dairy Desserts &

    Drinks

    .Millions

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Germany

    9

    KEY TRENDS

    In Germany, chilled and fresh is growing at

    1.6% in value, outpacing the combined pace ofEuropean countries studied for this report.

    Hypermarkets show the highest levels of

    growth in sales for chilled and fresh, with an

    increase of 3.1% (contributing to 39.3% of

    sales).

    Charcuterie and eggs are the main drivers for

    the positive development. In contrast, decline

    in yogurts and milkshakes is negatively

    impacting growth.

    Private label contributes around 48% of the

    value sales for chilled and fresh; both private

    label and national brands are experiencing

    value sales growth amidst declining volume.

    Where promotional sales are declining, normal

    sales are showing growth, driving the positive

    value development of chilled and fresh.

    Soft discounters are experiencing the sharpest

    decline in chilled and fresh sales, followed by

    drug stores. Hypermarkets continue to grow.

    6 838

    2 743 2 584

    1 7251 229 1 193 1 125 1 044

    7 933

    2 535

    Charcuterie Cheese

    Chilled Juices Yogurts, Dairy Desserts & Drinks

    Margarine, Butter, Fats & Spreads Ready Meals

    Fresh Desserts Eggs

    Salads Cream

    CATEGORY VALUE SALES IN THE LAST YEAR

    Euros,

    inMillions

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Charcuterie 26.3%

    Cheese 22.7%

    Chilled Juices 9.1%

    Yogurts, Dairy Desserts & Drinks 8.6%

    Margarine, Butter, Fats & Spreads 8.4%

    Ready Meals 5.7%

    Fresh Desserts 4.1%

    Eggs 4.0%Salads 3.7%

    Cream 3.5%

    Milk 3.0%

    Chilled Fish and Seafood 0.7%

    Tofu / Soya 0.1%

    Chilled Dips and Sauces 0.0%

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Germany

    10

    TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()

    - 0.3

    - 66.4

    - 1.7

    -80 -60 -40 -20 0

    Chilled Dips and Sauces

    Chilled Juices

    Yogurts, Dairy Desserts &

    Drinks

    .

    151.8

    107.6

    82.5

    62.6

    51.9

    0 50 100 150 200

    Charcuterie

    Eggs

    Cheese

    Ready Meals

    Milk

    Millions

    2 5352 584

    6 838

    2 743

    7 933

    0.4

    2.0 -0.1 -2.51.2

    Charcuterie

    Cheese

    Chilled

    Juices

    Yogurts,

    Dairy

    Desserts&

    Drinks

    Margarine,

    Butter,

    Fats&

    Spreads

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    Chilled charcuterie is showing positive

    development across channels, whereasunchilled charcuterie is declining in hard

    discounters and drug stores.

    The reduced fat segment remains in sharp

    decline across both chilled and unchilled

    charcuterie, negatively impacting category

    performance.

    Branded yogurts, dairy desserts and drinks are

    experiencing sales declines, while private label

    grew slightly during the quarter. Cut, feta and cream cheeses all experienced a

    boost in sales during Q3, driving growth within

    the cheese category.

    Irrespective of tremendous decline in

    promotional sales, eggs are showing double-

    digit growth, due to significant growth in

    discounters.

    Private label chilled fish and seafood declined,

    while private label charcuterie and cheesegrew sharply.

    Millions

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Italy

    11

    KEY TRENDS

    Cheese, charcuterie and fresh fruits

    contribute to around 60% of the total freshand chilled markets growth. Whilst the

    cheese market is stable, fresh fruits is the

    best performing category (+8.0%).

    Both charcuterie and, in particular, fresh

    fruits benefit of a shift from random to fixed

    weight and possibly of a new channel choice

    made by consumers for a more convenient

    solution and promotional offers.

    Some important chilled and fresh categoriesexperienced value sales declines in Q3,

    including yogurt (-5.9%), dairy dessert

    (-6.5%) and fresh drinks (- 14.3%).

    Negative performance in yogurt, particularly

    full fat and functional segments, is a key

    driver of declines across the fresh dairy

    segment. Only low-fat yogurt and some

    niche segments (such as soya and Greek

    yogurt) grew in Q3.

    2 102 2 048

    1 638

    1 1661 039

    714442 398

    3 459

    1 224

    Cheese Charcuterie

    Fresh Vegetables Yogurts, Dairy Desserts & Drinks

    Ready Meals Fresh Fruit

    Milk Eggs

    Margarine, Butter, Fats & Spreads Fresh Desserts

    CATEGORY VALUE SALES IN THE LAST YEAR

    Euros,

    inMillions

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Cheese 23.9%

    Charcuterie 14.5%

    Fresh Vegetables 14.1%

    Yogurts, Dairy Desserts & Drinks 11.3%

    Ready Meals 8.4%

    Fresh Fruit 8.1%

    Milk 7.2%

    Eggs 4.9%Margarine, Butter, Fats & Spreads 3.0%

    Fresh Desserts 2.7%

    Chilled Dips and Sauces 1.0%

    Cream 0.5%

    Chilled Juices 0.2%

    Tofu / Soya 0.0%

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Italy

    12

    TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()

    - 8.6

    - 15.6

    - 28.9

    - 123.1

    - 46.6

    -150 -100 -50 0

    Chilled Juices

    Ready Meals

    Fresh Desserts

    Milk

    Yogurts, Dairy Desserts &

    Drinks

    .

    78.0

    67.4

    64.1

    45.3

    2.4

    0 20 40 60 80 100

    Fresh Fruit

    Fresh

    Vegetables

    Charcuterie

    Eggs

    Cream

    Millions

    1 224

    1 638

    2 1022 048

    3 459

    -1.3-0.13.4

    -7.03.1

    Cheese

    Charcuterie

    Fresh

    Vegetables

    Yogurts,

    Dairy

    Desserts&

    Drinks

    Ready

    Meals

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    Prices are becoming a key factor for fresh

    food categories. During Q3, prices grew2.1%, driven by fresh fruits (+11.5%),

    fresh vegetables (+4.4%) and charcuterie

    (+1.5%). Private label prices also

    escalated (+5.5%).

    Private label has achieved significant share

    of chilled and fresh sales (28.3%),

    significantly higher than the grocery

    average (18.2%). Their promotional

    activities account for 17.7% of value sales

    (similar versus last year). While the freshmarket increase its average number of

    reference (+1.4%) private labels are

    decreasing their number of references

    (-3.0%).

    Though promotional activity within chilled

    and fresh has increased (+1.9 points), it

    remains lower compared to FMCG average

    (23.3% versus 23.9%). The categories

    with the highest promotional activity are

    cheese, charcuterie, yogurt and fresh

    fruits.

    Millions

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Netherlands

    13

    KEY TRENDS

    In terms of evolution total FMCGs ValuesSales YTD to wk40 are increasing with2.0% growth

    The Hard Discounters (Aldi & Lidl) arewinning market share (sales index 104,7)particularly Lidl with a focus on the freshcategories.

    However we see a slow down in the marketduring the 3rd quarter with a growth ofonly 1.1%.

    The fresh category is critical to thesupermarkets channel, with salesaccounting for 42,9% of supermarketssales

    Fresh shows a growth of 2.4% YTD week40 which is above the level of the grow ofthe total supermarket sales.

    Fruit (+8,1%), Foreign Cheeses (7,2%)and Salads (5,1%) are the winningcategories in the third quarter 2013.

    1 686

    1 237 1 230

    407 403 369 352 289

    2 992

    821

    Charcuterie Fresh Vegetables

    Fresh Fruit Cheese

    Fresh Desserts Margarine, Butter, Fats & Spreads

    Milk Yogurts, Dairy Desserts & Drinks

    Ready Meals Chilled Fish and Seafood

    CATEGORY VALUE SALES IN THE LAST YEAR

    Euros,

    inMillions

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Charcuterie 28.4%

    Fresh Vegetables 16.0%

    Fresh Fruit 11.8%

    Cheese 11.7%

    Fresh Desserts 7.8%

    Margarine, Butter, Fats & Spreads 3.9%

    Milk 3.8%

    Yogurts, Dairy Desserts & Drinks 3.5%Ready Meals 3.3%

    Chilled Fish and Seafood 2.7%

    Salads 2.6%

    Eggs 2.3%

    Chilled Juices 1.3%

    Cream 0.6%

    Chilled Dips and Sauces 0.2%

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Netherlands

    14

    TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()

    124.0

    70.1

    16.0

    2.7

    2.1

    0 50 100 150

    Fresh Fruit

    Fresh

    Vegetables

    Eggs

    Salads

    Cheese

    Millions

    821

    1 230

    1 686

    1 237

    2 992

    -0.5-0.4

    11.1

    0.2

    4.3

    Charcuterie

    Fresh

    Vegetables

    Fresh

    Fruit

    Cheese

    Fresh

    Desserts

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    Fresh Fruit has increased (+11,1) due to

    higher prices for apples and a strongperformance of summer fruits, aided bygood weather in July and August.

    Within Fresh Vegetables growth of 4.3% iscoming from tomatoes, peppers andcabbage crops.

    Declines within Yellow fats of -14.7% aerbeing driven in particular by cookingproducts. These are highly priced productswhich are suffering during the economic

    crisis.

    Eggs increase of 8.3 % is due to higherprices but has also experienced a smallgrowth in volume, showing positiveunderlying health in the segment

    Fish continues to suffer from the salmoncrisis at the end of 2012, down -3.5%.However in the third quarter of 2013 sales

    have returned to the levels of a year ago.

    - 4.7

    - 11.2

    - 11.6

    - 14.7

    - 12.9

    -20 -15 -10 -5 0

    Ready Meals

    Yogurts, Dairy Desserts &

    Drinks

    Charcuterie

    Chilled Fish and Seafood

    Margarine, Butter, Fats &

    Spreads

    .Millions

    Source: IRI retail databases, period ending 29 September 2013

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    PULSE REPORT

    Spain

    15

    KEY TRENDS

    Spain remains the only country in decline

    in Q3 2013; declines accelerated versus

    Q2.

    The yogurt and cheese categories

    continued their slide in Q3. Only

    charcuterie achieved significant positive

    movement for the quarter.

    While private label recorded positive

    developments in the overall fresh and

    chilled, trends vary at the channel level:

    hypermarket sales slid more than 4%

    versus prior year, while the supermarket

    channel posted growth of more than 2.5%.

    Promotional activity remains constant

    across chilled and fresh versus a year ago,

    and is generally slightly below the FMCG

    average level of 19%.

    2 061

    1 589

    712507

    315 221 192 142

    2 712

    555

    Charcuterie Yogurts, Dairy Desserts & Drinks

    Cheese Ready Meals

    Eggs Fresh Desserts

    Chilled Fish and Seafood Margarine, Butter, Fats & Spreads

    Chilled Juices Cream

    CATEGORY VALUE SALES IN THE LAST YEAR

    Euros,

    inMillions

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Charcuterie 29.4%

    Yogurts, Dairy Desserts & Drinks 22.4%

    Cheese 17.2%

    Ready Meals 7.7%

    Eggs 6.0%

    Fresh Desserts 5.5%

    Chilled Fish and Seafood 3.4%

    Margarine, Butter, Fats & Spreads 2.4%Chilled Juices 2.1%

    Cream 1.5%

    Chilled Dips and Sauces 1.4%

    Milk 0.4%

    Salads 0.4%

    Source: IRI retail databases, period ending 29 September 2013

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    Spain

    16

    TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()

    - 1.7

    - 15.7

    - 23.2

    - 166.5

    - 27.1

    -200 -150 -100 -50 0

    Salads

    Ready Meals

    Chilled Juices

    Cheese

    Yogurts, Dairy Desserts

    & Drinks

    .

    152.3

    23.1

    7.8

    7.4

    4.8

    0 50 100 150 200

    Charcuterie

    Eggs

    Margarine, Butter, Fats &

    Spreads

    Chilled Dips and Sauces

    Cream

    Millions

    555

    712

    2 061

    1 589

    2 712

    4.3

    6.0-1.7 -2.2-7.5

    Charcuterie

    Yogurts,

    Dairy

    Desserts&

    Drinks

    Cheese

    Ready

    Meals

    Eggs

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    Growth in charcuterie continues, driven

    mainly by the national brands. Privatelabel sales in this sector slid versus prior

    year. The hypermarket channel is a

    standout for charcuterie sales.

    All segments of the yogurt category

    declined across channels. The basic

    segment, usually the strongest, reversed

    historical trends and posted sales declines

    for the quarter.

    The growth of the eggs category is being

    supported by increased distribution by oneparticular manufacturer within the

    supermarket channel. Though distribution

    is beginning to stabilize, the underlying

    health of the category remains positive.

    Millions

    Source: IRI retail databases, period ending 29 September 2013

  • 8/13/2019 Pulse Report Chilled and Fresh Q3 2013

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    United Kingdom

    17

    KEY TRENDS

    With GDP declining by 46k and inflation

    rising by 3.7%, the UK chilled and fresh

    market still achieved a 1.0% growth versus

    last year.

    Milk is the largest chilled and fresh

    category, constituting one-quarter of the

    market. Milk is also the fastest growing

    category, posting 75.8m increase in sales

    over 2012. Just over 20% of 2013 year-to-

    date milk sales were sold with promotionalsupport, as retailers continue to leverage

    the category to drive footfall. However, the

    real growth driver has been from improved

    underlying base sales.

    Margarine, butter, fats and spreads

    negatively affected the performance of the

    chilled and fresh market, posting declines

    of -4.6% versus prior year.

    2 567

    1 633

    1 3141 182

    881

    352 344

    3 246

    1 273

    Milk Cheese

    Yogurts, Dairy Desserts & Drinks Margarine, Butter, Fats & Spreads

    Chilled Juices Ready Meals

    Fresh Desserts Cream

    Chilled Dips and Sauces

    CATEGORY VALUE SALES IN THE LAST YEAR

    Euros,

    inMillions

    SHARE OF FRESH & CHILLED VALUE FORTHE YEAR

    Milk 25.4%

    Cheese 20.1%

    Yogurts, Dairy Desserts & Drinks 12.8%

    Margarine, Butter, Fats & Spreads 10.3%

    Chilled Juices 10.0%

    Ready Meals 9.2%

    Fresh Desserts 6.9%

    Cream 2.7%

    Chilled Dips and Sauces 2.7%

    Source: IRI retail databases, period ending 29 September 2013

  • 8/13/2019 Pulse Report Chilled and Fresh Q3 2013

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    PULSE REPORT

    United Kingdom

    18

    TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()

    TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()

    - 63.1

    -80 -60 -40 -20 0

    Margarine, Butter, Fats &

    Spreads

    .

    75.8

    36.3

    23.7

    18.9

    16.5

    0 20 40 60 80

    Milk

    Cheese

    Ready Meals

    Chilled Dips

    and Sauces

    Fresh

    Desserts

    Millions

    1 2731 314

    2 567

    1 633

    3 246

    0.62.4

    0.7 -4.61.4

    Milk

    Cheese

    Yogurts,

    Dairy

    Desserts&

    Drinks

    Margarine,

    Butter,

    Fats&

    Spreads

    Chilled

    Juices

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change vs. year ago

    CATEGORY INSIGHTS

    The margarine, butter, fats and spreads

    category accounts for 10.3% of UK chilledand fresh sales. During Q3 2013, posted

    enormously negative growth. Although

    the category continues to perform well on

    promotion (with incremental sales up

    +9%), underlying base sales at the value

    end of the market are driving declines.

    This quarters cheese growth has been

    driven by strong increases in base sales

    (up an impressive 56%) and growth from

    new product development.

    Yogurts, dairy desserts and drinks grew

    at 0.7% despite on-shelf and off-shelf

    promotional support declines of four

    points and two points, respectively.

    Chilled juices is heavily promotionally

    reliant, with 66% of volume sold on deal.

    Declining promotional lift trends reflect

    promotional fatigue and a falling base.

    Millions

    Source: IRI retail databases, period ending 29 September 2013

  • 8/13/2019 Pulse Report Chilled and Fresh Q3 2013

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    Final Notes

    19

    Notes on Category Definitions for Countries

    Due to the diverse products found in individual countries across this market it was necessary toconsolidate the available data into the categories in this report. In some cases it wasnt always

    possible to align products across all 6 countries hence the need to highlight any anomalies in

    the report. Those exceptions are listed below:

    Eggs

    The UK data in this report does not include this category

    Margarine, Butter, Fats & Spreads

    The UK data in this report does not include fats in this category

    The Spain data in this report does not include fats in this category

    Tofu / Soya

    The UK data in this report does not include this category

    The Spain data in this report does not include this category

    Chilled Fish and Seafood The UK data in this report does not include this category

    The Italy data in this report does not include this category

    Charcuterie

    The UK data in this report does not include this category

    Fresh Vegetables

    The UK data in this report does not include this category

    The Spain data in this report does not include this category

    The Germany data in this report does not include this category

    Fresh Fruit

    The UK data in this report does not include this category

    The Spain data in this report does not include this category

    The Germany data in this report does not include this category

  • 8/13/2019 Pulse Report Chilled and Fresh Q3 2013

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    Resources

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    FOR MORE INFORMATION

    Please contact Sarah Pittock, Insight Director, Business Insights,

    IRI at [email protected] or

    +44 (0)782 577 0209with questions or comments about this report.

    To gain insight into opportunities across specific categories, segments, channels or retailers,

    contact your IRI client service representative regarding custom analyses leveraging thefollowing resources:

    InfoScan Census is a syndicated retail tracking service that enables manufacturers and

    retailers to acquire industry insights used to make better business decisions. InfoScan

    Census utilizes the data that IRI collects from grocery, drug, and mass merchandise retailers

    to provide the most comprehensive and accurate syndicated data offering in the FMCG

    sector. With access to accurate, granular detail by category, geography, measure, and time

    period, clients have the tools needed to develop marketing and sales strategies based on

    product performance, distribution, and promotion responsiveness. All data about alcohol

    comes from InfoScan Census.

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