Fruit Attraction Ed Griffiths Strategic Insight Director Kantar - PowerPoint PPT Presentation

Fruit Attraction Ed Griffiths Strategic Insight Director Kantar Worldpanel 1 52 we 9 September 2018

The largest shopper panel in Great Britain Geographically and demographically representative of the population of GB 30,000 Households in GB 52 we 9 September 2018

How does Worldpanel work? Take Home purchases Data retrieved and collated Data converted into insight scanned by palm pilot and into databases on a clicker technology 4 weekly cycle 52 we 9 September 2018

Produce Engagement Organics in the UK General Retail 4 52 we 9 September 2018

The Th e UK UK is m more ore en enga gaged ged wi with h Pr Prod oduce uce tha han e n ever be er before ore 2014 2018 5 52 we 9 September 2018

Its no not ju just ab abou out ho how w of often en we we go go ei eithe her; ; sho hoppers ppers ar are buy e buying ac ng across a b ross a broa oader der rep eperto ertoire ire 2014 2018 46 different items in an 50 different items in an average repertoire average repertoire 6 52 we 9 September 2018

A A mo more e di diverse erse di dinn nner er pl plat ate d e drives es gr grow owth of h of r rep epert ertoir oire e bu but al also h o high ghligh ghts th ts the c e cha hallen enges ges ma many ny markets ma kets fac ace as e as ho host di dishe hes s de decline ne. Pies/Pasties/Puds & Italian Food Exc. Pizza Roast Dinners Sav Pastries 1.6bn occ. 867m occ. 845m occ. (--% YoY) (--11% YoY) (-1% YoY) Decline more than -3% Coated Chicken Burger Meals Sausage Meals Natural Fish Meals Meals 164m occ. (+6% YoY) 183m occ. 223m occ. 208m occ. Decline between -3 and 0% Chicken Portions (-4% YoY) (-3% YoY) (-3% YoY) Steak Meals 445m occ. . 74m occ. (-11% YoY) Oriental Food (-4% YoY) Omelette Indian Food Growth between 0 and 2% Other Frank/ 80m occ. (+6% YoY) (incl. Thai) Fish Finger Internati Toast Meals Hot Dogs . 711m occ. onal Meals Pork Chop Meals 645m occ. 157m occ. 101m Baked potato Meals 203m occ. 122m occ. (-7% YoY) Lamb Chop 55m occ. meal occ. (+11% YoY) (+2% YoY) Meals (+8% YoY ) (+3% YoY) (-14% Growth between 2 and 5% 186m occ (-2% YoY) (-8%) . YoY) (-16% YOY) Soup 308m occ. Growth more than 5% Coated Fish (-4% YoY) Meals Salad 406m occ. 359m occ. Traditional/British Meals (+2% YoY) (+7% YoY) 1.2bn occ. . Pizza Total Sandwiches (-2% YoY) 804m occ. 559m occ. (+2% YoY) (--% YoY) Mexican Food 387m occ. (-3% YoY) 7 52 we 9 September 2018

He Healt alth i h is a gr s a grow owing ing fac factor tor am among ongst st co cons nsum umers ers in in the the U UK, K, with wi th 31% 31% of al of all m l meal eal oc occa casi sions ons bei being ng co cons nsum umed ed for for rea reaso sons ns rel relati ating ng to h to heal ealth th 8 52 we 9 September 2018

With th Pro rodu duce ce a pos a poste ter r ch child d fo for r ma many ny campaigns it’s no surprise that Produce sees 71% of 71 of al all cons consum umptio ption n oc occa casio sions ns fl flag agge ged d as fo as for r he heal alth th 9 52 we 9 September 2018

+405m servings Health benefits 31% More +288m servings natural/less processed 15% 10 52 we 9 September 2018

More Mo re de dema mand nds s me mean ans s mo more re op oppo port rtun uniti ities es to to tr trad ade e up up cons consum umers ers +2 +24% 4% Retail premium per serving based on number of reasons for choice +16 +16% +9% +9% 1 Need 2 Needs 3 Needs 4 Needs 52 we 9 September 2018

Th The e pr prem emium um pa paid for d for he heal alth th ha has s inc ncre reas ased ed ye year ar on on ye year ar 52 we 9 September 2018

Produce Engagement Organics in the UK General Retail 13 52 we 9 September 2018

Vol olum ume e Val alue ue fl flat at at at - grow gr owth th of of 0. 0.1% 1% +2. 2.7% 7% Pro rodu duce ce in the n the UK UK £6 £6.5 .57 7 mo more re pe per hou r house seho hold wort wo rth h £1 £11 Bi 1 Billion on 14 52 we 9 September 2018

Mu Much h like t e the he G Groc ocery ery Ma Marke rket, t, the he Bi Big g 4 4 ha have e see een co n cont ntracti raction ov on over th er the l e las ast 5 y 5 yea ears rs Aldi and Lidl have gained 7.2% share between them 100% 100% 3,5 3,5 3,5 3,2 3,3 90% 90% 4,6 5,3 6,1 7,3 7 Other 5,1 80% 80% 7,2 8,2 9 9,6 6,5 Marks & Spencer 6,5 6,6 70% 70% 4,8 6,3 6,3 4,4 4,7 Lidl 4,7 4,6 11 Spend % 60% 60% 10,7 9,9 9,9 Aldi 9,8 50% 50% Waitrose 16,5 16 16 15,5 15,2 The Co-Operative 40% 40% 13,8 Morrisons 13,1 12,2 11,3 11,4 30% 30% Sainsbury's 20% 20% Asda 26,7 25,9 25,5 25,6 25,5 10% 10% Tesco 0% 0% 52 w/e 14 Sep 14 52 w/e 13 Sep 15 52 w/e 11 Sep 16 52 w/e 10 Sep 17 52 w/e 09 Sep 18 15 52 we 9 September 2018

An And d in n the he la lates est yea ear r in n a a clima mate e of of p price ce inf nflat ation on, Li Lidl dl a and nd Al Aldi di r rei eign su gn supre preme me Asda is the only Big 4 Retailer to experience an increase in share 100% 100% -1,1 Other 3,5 3,5 90% 90% 7,3 7 2,9 Marks & Spencer 80% 80% 9 9,6 7,4 Lidl 70% 70% 6,3 6,3 4,7 4,6 9,0 Aldi 60% 60% 9,9 9,8 Spend % 1,7 Waitrose 50% 50% Despite their growth, 15,5 15,2 0,7 Tesco and Lidl are the The Co-Operative 40% 40% only retailers to decrease 1,0 their amount of Morrisons 11,3 11,4 30% 30% promotions 0,4 Sainsbury's 20% 20% 3,5 25,6 25,5 Asda 10% 10% 2,4 Tesco 0% 0% 52 w/e 10 Sep 17 52 w/e 09 Sep 18 16 52 we 9 September 2018

While the discounters inevitably win on price… Their prices are inflating at the fastest rate Price Pr ce pe per KG KG 3,12 2,46 2,11 1,93 1,75 1,63 1,59 1,58 1,45 Tesco Asda Sainsburys Morrisons Co-Op Waitrose Aldi Lidl M&S Pr Price ce % C % Cha hang nge 7,3 5,1 4,0 3,7 3,0 3,0 1,9 -0,5 -0,5 Tesco Asda Sainsburys Morrisons Co-Op Waitrose Aldi Lidl M&S 17 52 we 9 September 2018

But prices creeping up doesn’t deter shoppers – Li Lidl dl an and A d Aldi di a ahe head ad on on k key ey me metrics cs They drive category engagement above and beyond what we might expect It Item ems s pe per Tr Trip 9,0 7,4 7,2 7,0 6,8 6,8 5,8 4,7 3,0 Tesco Asda Sainsburys Morrisons Co-Op Waitrose Aldi Lidl M&S Si Size ze of of Rep Reper ertoire toire 23 21 18 18 18 17 16 10 8 Tesco Asda Sainsburys Morrisons Co-Op Waitrose Aldi Lidl M&S 52 we 09 September 2018 18 52 we 9 September 2018

A climate of price focus isn’t going anywhere Tesco Jacks launching with a key focus on fresh, locally sourced Fruit and Vegetables 19 52 we 9 September 2018

Produce Engagement Organics in the UK General Retail 20 52 we 9 September 2018

Or Orga gani nics cs ov over th er the l e las ast fi five ye e years ars ha have e see een co n cons nsiderabl derable e gr grow owth £2.4 £2 .43 3 pe per r Kilo £250 Mi £250 Million on Organics reached £250m in Organics being sold at 40% the latest year, up 40% over premium over standard Fruit five years and Veg 7 Tri 7 Trips ps 1 KG 1 KG pe per r Tr Trip The average consumer only Average trips see 2.2KG per buys Organics 7 times in an basket; Organics 1.2KG behind average year (109 Trips at a this benchmark Total Produce Level) 63% 63% Who ho? 63% of the population bought Smaller, more affluent Organic Fruit or Veg in the last households without Children year 21 52 we 9 September 2018

Th This gr grow owth has h has slow owed ed dr dram amat atical cally y ho howe wever in er in t the he la lates est yea ear r wi with h the he mar market ket no now w in n de decline ne; ; Pr Price e a a clea ear r dr driver ver for or thi his. 50.000 40.000 30.000 Contribution (£000) 20.000 10.000 0 -10.000 -20.000 Frequency Trip Volume (kg) Price per kg Penetration (%) GB HH Population Total Contribution (£000s) 22 52 we 9 September 2018

Wh Wher ere e ar are th e the O e Orga gani nic c Oc Occas asions ons go going ng? £1 £1.4 .4M M sw switched tched Exi xisting sting Or Orga gani nic c £1 £1.7 .7M M fr from om pr prod oduc uce e from fr om Or Orga gani nic c to to sh shop oppe pers rs sp spen ent t shop sh oppe pers rs co cont ntinu nuing ng to to Sta tand ndard ard £2 £2M le M less ss ex expa pand nd th thei eir r Or Orga gani nic c Re Repe pert rtoi oire re 23 52 we 9 September 2018

Th The e pr price ce wa war a app pparen arent t ev even en in n the he Or Orga gani nic c ma marke rket To Tota tal Or Orga gani nic Li Lidl dl Or Orga gani nic -0. 0.7% 7% -£1 £1.8 .8M +50 50% +£6 £6.3M .3M 24 52 we 9 September 2018

Ho How w can an we we dr drive ve Or Orga gani nic c Gr Grow owth? h? Co Cons nsum umer ers s wi will pa pay y mo more re fo for r he heal alth th Or Orga gani nic c co cons nsum umed ed mo more re fo for r he heal alth th co comp mpar ared ed to to ot othe her r Pro rodu duce ce Ben ench chma marks rks 25 52 we 9 September 2018