360 Foodservice - 2015 Dan McGlynn Account Director CGA Strategy - PowerPoint PPT Presentation

360 Foodservice - 2015 Dan McGlynn – Account Director CGA Strategy 360 Foodservice - 2015

Who are CGA? The Consumer CGA Real product- Operators level sales 360 Foodservice - 2015

Foodservice through 3 lenses 360 Foodservice - 2015

High St eating out market continues to deliver strong L4L growth 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% -1.0% Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Total Sales Growth 5.7% 6.8% 5.6% 5.8% 5.8% 3.7% 5.2% 6.2% 5.8% 4.8% 4.3% 4.6% LFL Sales Growth 2.2% 3.4% 1.9% 1.4% 1.6% -0.3% 1.2% 2.1% 1.7% 1.1% 0.6% 1.2% Source: Coffer Peach Business Tracker Sept 2015 360 Foodservice - 2015

And the much maligned on trade is now back into growth, as food takes over from drinks +0.8% 2015 124,463 Total GB -2.9% +5.4% 2015 38,586 2015 56,132 Eating Drinking -5.6% +8.1% 2015 27,039 2015 27,252 Wet led pubs Restaurants Source: CGA Outlet Index Sept 2015 360 Foodservice - 2015

Contract catering is evolving, with growth and adaptation of offer Source: CGA Outlet Index 360 Foodservice - 2015

#1 The Consumer 360 Foodservice - 2015

Of UK consumers are eating out weekly 360 Foodservice - 2015 CGA Peach BrandTrack

Of 25-34 year olds eat out weekly…the highest of all age groups 360 Foodservice - 2015 CGA Peach BrandTrack

360 Foodservice - 2015

360 Foodservice - 2015

Day-parts are expanding Percentage of consumers eating out by day part Late Evening Breakfast 28% 21% Early Evening Mid-morning 68% 33% 48% 72% Mid-afternoon Lunch CGA Peach Brand Track Aug 2015 360 Foodservice - 2015

Higher standard of food quality ? More personalised offers Better value for money 360 Foodservice - 2015

#2 Demand 360 Foodservice - 2015

OPTIMISM FOR 2015 25% 15% ‘operator’ ‘supplier’ 360 Foodservice - 2015 CGA Peach Business Leaders Survey 2015

Of business leaders see Travel Hubs as key growth hotspots 360 Foodservice - 2015 CGA Peach Business Leaders Survey 2015

Formats positioned to thrive in 2015 73% Premium casual dining 48% 54% All day/flexible formats 66% 52% Street food/Pop-ups 44% 50% Premium fast food (e.g. LEON, Tortilla) 61% 46% Pub restaurant/food led pubs 37% 42% Coffee shops 31% 27% Healthy/salad/juice bars 29% 23% Mainstream casual dining 33% 8% Fast food 6% 6% Takeaway/delivery 14% Suppliers 6% Drink led pubs/bars 9% Operators 0% Sandwich/bakery 11% CGA Peach Business Leaders Survey 2015 360 Foodservice - 2015

Foodservice market segmentation Retail, Travel & Leisure Contract Sector Hotels, Pubs & Restaurants 171.2k 108.4k 21.2k Retail Travel Leisure Hotels B&I Cost Sector Pubs & Restaurants Bars 81.3k 77.4k 9.6k 1k 10.6k 12.5k 39.6k 68.8k Coffee Roadside & Sports Branded and Full Service Service-Led Fast Food Contracted Defence Shops MSA Clubs Managed Branded Railway Event Tenanted Sandwich Budget Fine Dining In-House Justice Traditional Stations Catering and Leased Bars Guest Branded Healthcare Airports Stadia Independent Independent Bakery Houses Emerging Stores Independent Local Visitor Holiday Dep’t Store Ports Social Clubs Branded inc. Street Authorities Attractions Parks Cafes & Garden Food Centre Cafes Remote Conference Entertainment Nightclubs Supermarket Venues Centres Cafes & Grab & Go Education Petrol Forecourts Convenience Stores 360 Foodservice - 2015

food focused venues have opened in ten years 360 Foodservice - 2015 CGA Outlet Index

Which food trends will make an impact this year 53% Barbecue 57% 43% British Traditional 23% 39% Burgers 27% 24% Single item menus 24% 24% Hotdogs 18% 24% Sustainable fish 17% 22% Cheaper cuts (e.g. flatiron steaks) 31% 22% Chicken 30% 22% Sushi 13% 18% Steak 13% 16% Bakery 23% 14% Ramen 18% 14% Ceviche Suppliers Operators 10% CGA Peach Business Leaders Survey 2015 360 Foodservice - 2015

#3 Supply – The Wholesaler 360 Foodservice - 2015

Wholesale is seeing steady L4L growth 1.3% TOTAL WHOLESALE FOODSERVICE L4L MAT GROWTH -3.3% 0.6% 7.3% Non-Food L4L Food L4L Drinks L4L MAT growth MAT growth MAT growth 4.8% -0.1% -3.1% Frozen L4L Ambient L4L Chilled L4L MAT growth MAT growth MAT growth Source: CGA Foodservice Index Sept 2015 360 Foodservice - 2015

Largest Wholesale Categories Source: CGA Foodservice Index Sept 2015 360 Foodservice - 2015

Strong L4L growth in Independents 2.8% TOTAL WHOLESALE FOODSERVICE L4L MAT GROWTH 5.3% 2.0% 5.1% Non-Food L4L Food L4L Drinks L4L MAT growth MAT growth MAT growth 5.4% 0.3% -0.8% Frozen L4L Chilled L4L Ambient L4L MAT growth MAT growth MAT growth Source: CGA Foodservice Index Sept 2015 360 Foodservice - 2015

Largest Independent Wholesale Categories Source: CGA Foodservice Index May 2015 360 Foodservice - 2015

MAT growth in Education 360 Foodservice - 2015 Source: CGA Foodservice Index Sept 2015

More children having school lunches since Sept 2014 360 Foodservice - 2015 Source: CGA Foodservice Index Sept 2015

Of all purchases are branded products 360 Foodservice - 2015 Source: CGA Foodservice Index Sept 2015

Frozen market shows great performance Value % Share Value % Change 18.8% +7% Education +2% 14.9% Fast Food And Cafe +2% 13.7% Heath and Welfare +3% 11.7% Business and Industry +3% 11.4% Travel, Sport and Leisure 10.8% -3% Pubs and bars +1% 10.7% Accommodation +4% 8.0% FSR Source: CGA Foodservice Index Sept 2015 360 Foodservice - 2015

So what does all this mean? • FS see’s good growth and it continues to be a focus for investors •The demand for eating out of the home has never been so high •A larger growth potential for frozen manufacturers compared with the grocery channel •Quality data, insight and thought leadership is essential to maximise the opportunities 360 Foodservice - 2015

Thank you dan.mcglynn@cgastrategy.co.uk 360 Foodservice - 2015