Growth Trends for Fresh-Cut, Ready-to Eat Produce November 2006 Canary Wharf

Transcription

1 Growth Trends for Fresh-Cut, Ready-to Eat Produce November 26 Canary Wharf Edward Garner Communications Director TNS Worldpanel

2 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

3 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

4 Lifestyles changes

5 Lifestyles changes

6 The core drivers of consumption ENJOYMENT PRACTICALITY HEALTH

7 year trend 26 11% HEALTH BSE, Foot & Mouth, Sudan 1, Child Obesity, Jamie Oliver, Bird Flu, Supersize me, Salt & sugar content, Functional Foods, 5 a day, Fruit for schools 23% 34% ENJOYMENT Organics/ premium, Taste the difference, Sharing, Café culture, Eating out, Debit Credit, Treating 42% 55% PRACTICALITY Ready Meals, Light meals, Snacking, Budget, Microwave, Individual portions, Quick to cook E 35% H P Worldpanel Usage In Home Ann to May 26

8 Health affecting not just what we eat but how we eat! In home snacking has seen a +5% growth over the last 1 years But, in the last 3 years has seen a 4% decline Worldpanel Usage In Home

9 Core snacking categories at the heart of the declining occasions Last 1 years + 18% Last 3 years - 8% + 37% - 7% + 35% -1% Worldpanel TM division Usage of TNS In Home 26 Ann to Nov 25

10

11 5 A Day Consumption Younger adults have driven the growth in the last year although some way to go until they reach the level of older consumers Ann SA 2 Ann SA 4 Ann SA ALL CONSUMERS Children Adults

12 Its not all about health Growth in indulgence Health +9% Indulgence +7% TNS Worldpanel Usage 52 W/E May 26 Worldpanel TM division of TNS Indulgence 26 (Craving, Something Special/Treat, Social/Entertaining)

13 Both drivers don t have to be in the same product Treaters are more likely than the average person to also choose foods for health reasons. Credit / Debit lifestyle.

14 Frozen Chips & Potato Products

15 Chips & Potato Products Market Trends % % % % 3 Potato Products m 25 Oven Chips % % Microchips Fry Chips w/e Aug w/e Aug w/e Aug 13 6 Coated Oven/Fry Products Three Way Cook Chips

16 Real Household Disposable Income Per Head Constant Prices - Indexed on 197 Source: ONS Series IHXZ

17 25 Food and Drink as a Proportion of UK Household Expenditure % Source: ONS Series ABQI / ABZV

18 Bread

19 W rapped Bread Sector Trends m's 2 Premium Economy Organic Organic Premium Economy

20 Free Range

21 Hens Eggs - 'Free Range' Share Trends 52 Share - % Free Range

22 Organic

23 Total Organic Products m s Annualised Value = 99m

24 Mineral W ater Retail Sales 1, 9, 8, 7, Litres 6, 5, 4, 3, 2, 1,

25 Total Grocery Total PL Trends % within Outlet Tesco Sainsbury Asda Morrisons Safeway

26

27 Premium Private Label Sales Trends 8 7 Sales (Expenditure m) Tesco Finest Sainsbury Taste the Difference Asda Extra Special Safeway/MorrisonsThe Best

28 Cash-rich Time-poor

29 We are changing from this

30 To this

31 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

32 Fresh Fruit Market Trends 4, 3,5 3,119 3, % 3, % 3, 2,5 1,61 1, % 1, % m 2, Prepacked 1,5 1, 1,59 1, % 1, % Loose 5 52 w/e Oct w/e Oct w/e Oct 8 6

33 Fresh Vegetables Market Trends 4,5 4, 3,5 3,553 3, % 3, % 3, m 2,5 2, 2,452 2, % 2, % Prepacked 1,5 1, Loose 5 1,11 1, % 1,17-3.6% 52 w/e Oct w/e Oct w/e Oct 8 6

34 Fruit - Weekly Seasonality Sales m Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb Mar Apr May Jun 2 24 Jul Aug Sep Loose Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb Mar Apr May Jun Jul Aug Sep Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan Feb Mar Prepacked Apr May Jun Jul Aug Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

35 Fruit - Weekly Seasonality Sales m Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb Mar Apr May Jun 2 24 Jul Aug Sep Loose Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb Mar Apr May Jun Jul Aug Sep Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan Feb Mar Prepacked Apr May Jun Jul Aug Sep 1 26 Oct 8 26

36 Vegetables - Weekly Seasonality Sales m w/e Nov 9 23 w/e Dec 7 23 w/e Jan 4 24 w/e Feb 1 24 w/e Feb w/e Mar w/e Apr w/e May w/e Jun 2 24 w/e Jul w/e Aug w/e Sep Loose w/e Oct 1 24 w/e Nov 7 24 w/e Dec 5 24 w/e Jan 2 25 w/e Jan 3 25 w/e Feb w/e Mar w/e Apr w/e May w/e Jun w/e Jul w/e Aug w/e Sep w/e Oct 9 25 w/e Nov 6 25 w/e Dec 4 25 w/e Jan 1 26 w/e Jan w/e Feb w/e Mar Prepacked w/e Apr w/e May w/e Jun w/e Jul w/e Aug w/e Sep 1 26 w/e Oct 8 26 Weekly 3 Point Centred Moving Average

37 Vegetables - Weekly Seasonality Sales m w/e Nov 9 23 w/e Dec 7 23 w/e Jan 4 24 w/e Feb 1 24 w/e Feb w/e Mar w/e Apr w/e May w/e Jun 2 24 w/e Jul w/e Aug w/e Sep Loose w/e Oct 1 24 w/e Nov 7 24 w/e Dec 5 24 w/e Jan 2 25 w/e Jan 3 25 w/e Feb w/e Mar w/e Apr w/e May w/e Jun w/e Jul w/e Aug w/e Sep w/e Oct 9 25 w/e Nov 6 25 w/e Dec 4 25 w/e Jan 1 26 w/e Jan w/e Feb w/e Mar Prepacked w/e Apr w/e May w/e Jun w/e Jul w/e Aug w/e Sep 1 26 w/e Oct 8 26

38 Key Performance Indicators for Prepacked Fruit - Value up 9.5% worth 171.4m Expenditure ( s) 52 w/e 9 Oct w/e 8 Oct Actual Change % Change 9.5 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) Penetration % Purchase Frequency AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend Expenditure ( s) Trip Vol Price per Vol m +9.5% Increase of 171.4m Volume (s Units) 187.8m vol +2.5% Contribution = 46.8m Price per Vol % Contribution = 124.6m AWP (Vol per Buyer) 45.5 vol +2.2% Contribution = 41.1m Penetration % * 97.3% +.1% Contribution = 5715k Trip Vol 1.3 vol -.3% Contribution = - 621k Purchase Frequency 35.3 trips +2.6% Contribution = 47.3m * Pen Contribution includes Population growth of.2%

39 Key Performance Indicators for Prepacked Vegetables - Value up 4.2% worth 18.8m Expenditure ( s) 52 w/e 9 Oct w/e 8 Oct Actual Change % Change 4.2 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) Penetration % Purchase Frequency AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend Expenditure ( s) Trip Vol Price per Vol m +4.2% Increase of 18.8m Volume (s Units) 256.2m vol +3.2% Contribution = 82.9m Price per Vol % Contribution = 25.9m AWP (Vol per Buyer) 12.8 vol +3% Contribution = 79.1m Penetration % * 99.2% % Contribution = 3873k Trip Vol 1.9 vol +1.3% Contribution = 35.6m Purchase Frequency 54.6 trips +1.6% Contribution = 43.4m * Pen Contribution includes Population growth of.2%

40 Prepacked Fruit & Veg Demographic Signatures Fruit & Vegetables Sector Share within Demographic Group - MAT to October Social Class Household Size Class AB Class C1 Class C2 Class D Class E in HH 2 in HH 3 in HH 4 in HH 5+ in HH Housewife Age Age under 28 Age Age Age Age No. of Children No Children 1 Child HH 2 Child HH 3+ Child HH

41 Lifestyles Prepacked Fruit & Vegetables I am among the first to buy new products when they appear on the market 12 We often visit fast food outlets 119 I tend to give my children what they want for their meals 118 I would use cosmetic surgery to improve my appearance 114 People regularly smoke in my house 114 I often buy take-away meals to eat at home 113 I tend to spend money without thinking 112 It s more important that my children enjoy their food than they eat healthily 111 I often buy things just because I see them on the shelf 11 I like introducing new brands and products to my friends 19 I have little time to myself 19 My children eat what I eat 18 I try to give my children healthy meals 17 I rely heavily on convenience products to make cooking simple/quick 17 I regard myself as a connoisseur of food and wine 17 We really enjoy barbequeing in the summer 17 I am prepared to pay more for organic food 16 I like trying out new brands 16 I often visit a supermarket on the way home 16 It's always a struggle to pay the bills at the end of the month 16 Prepacked Spend indexed on Loose 52 w/e Oct 8 26

42 Prepared Fruit & Vegetable Market Trends % % % % -18.7% +29.5% m % % Mixed Tray Salads Fruit 2 Vegetables % % Leafy Salads 52 w/e Oct w/e Oct w/e Oct 8 6

43 Prepared Fruit & Vegetables Long-Term Trends - m 3 Leafy Salads 25 2 Vegetables 15 1 Fruit 5 Mixed Tray Salads Fruit Vegetables Leafy Salads Mixed Tray Salads

44 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

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46 Prepared Fruit Classic Salad Sunshine Fruit Salad Luxury Fruit Salad Seasonal Melon Medley Melon Medley Fruit Medley Pineapple Chunks Apple Slices+Grapes Pineapple Slices Apple+Grape Fruit Selection Exotic Fruit Salads Pineapple Pieces Apple Segments Sliced Melon Selection Grape+Melon Fresh Fruit Salad Mango Pieces Fruit Salad Pineapple Cubes Melon+Grape Melon Slice Mango Chunks Red Grape Tropical Fruit Salad Watermelon Melon Selection Pineapple Mixed Fruit Salad Pineapple Rings

47 Prepared Fruit - Weekly Seasonality Sales m Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb Mar Apr May Jun 2 24 Jul Aug Sep Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb Mar Apr May Jun Jul Aug Sep Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan Feb Mar Apr May Jun Jul Aug Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

48 Key Performance Indicators for Prepared Fruit - Value up 29.5% worth 18.1m Expenditure ( s) 52 w/e 9 Oct w/e 8 Oct Actual Change 1896 % Change 29.5 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) Penetration % Purchase Frequency AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend Expenditure ( s) Trip Vol Price per Vol m +29.5% Increase of 18.1m Volume (s Units) 13.7m vol +22.1% Contribution = 14m Price per Vol % Contribution = 453k AWP (Vol per Buyer) 2.2 vol +9.8% Contribution = 6611k Penetration % * 25.9% +1.9% Contribution = 7432k Trip Vol.4 vol -.4% Contribution = - 22k Purchase Frequency 5.7 trips +1.3% Contribution = 6831k * Pen Contribution includes Population growth of.2%

49 Prepared Fruit Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size Class AB Class C1 Class C2 Class D Class E in HH 2 in HH 3 in HH 4 in HH 5+ in HH Housewife Age Age under 28 Age Age Age Age No. of Children No Children 1 Child HH 2 Child HH 3+ Child HH

50 Lifestyles Prepared Fruit I'm prepared to pay more for products that make life easier 145 I am among the first to buy new products when they appear on the market 135 I tend to spend money without thinking 134 I eat out regularly 133 I like to pamper myself 13 I think of myself as a brand loyal consumer 128 It is important to me which brand I buy 125 I rely heavily on convenience products to make cooking simple/quick 123 I am prepared to pay more for organic food 122 I often buy things just because I see them on the shelf 121 I like introducing new brands and products to my friends 119 I regard myself as a connoisseur of food and wine 119 I buy free range products whenever I can 118 Country of origin is important to me when choosing groceries 117 The BBC is an institution that I can rely on 116 I am prepared to pay more for quality ingredients 115 I am actively trying to manage my cholesterol level 114 The brand name of the clothes I wear is important to me 114 I find it hard to spend all the money that I earn 114 We often visit fast food outlets 113 Spend indexed on Households 52 w/e Oct 8 26

51 Prepared Fruit Range Shares % 52 w/e Oct w/e Oct w/e Oct 8 26 M+S Tesco Sainsbury Asda Waitrose Morrisons Asda Great Stuff M+S Food To Go Co-op Somerfield All Others Total PL

52 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

53

54 Leafy Salads Sweet+Crunchy Salad Leaf Salad Iceberg Lettuce Four Leaf Salad Watercress Tender Leaf Salad Italian Salad Crispy Leaf Salad Crispy Salad Mixed Leaf Salad Caesar Salad Rocket+Spinach+Watercress Mixed Salad Italian Leaf Salad Rocket Salad Fine Cut Salad Herb Salad Watercress+Spinach+Rocket Rocket Watercress Salad Bistro Salad Baby Leaf+Watercress Sld Baby Leaf Salad Seasonal Baby Leaf Salad Alfresco Salad Sweet Leaf Salad Spinach+Watercress+Rocket Sld Ruby Salad Crisp Mixed Salad Santa Plum Tomato Salad

55 Leafy Salads - Weekly Seasonality Sales m Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb Mar Apr May Jun 2 24 Jul Aug Sep Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb Mar Apr May Jun Jul Aug Sep Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan Feb Mar Apr May Jun Jul Aug Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

56 Key Performance Indicators for Leafy Salads - Value up 1.9% worth 5229k Expenditure ( s) 52 w/e 9 Oct w/e 8 Oct Actual Change 5229 % Change 1.9 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) Penetration % Purchase Frequency AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend Expenditure ( s) Trip Vol Price per Vol m +1.9% Increase of 5229k Volume (s Units) 44.1m vol +2.7% Contribution = 7344k Price per Vol % Contribution = k AWP (Vol per Buyer) 2.6 vol +1.7% Contribution = 4487k Penetration % * 69.9% +.9% Contribution = 2857k Trip Vol.2 vol +2.2% Contribution = 598k Purchase Frequency 12.3 trips -.5% Contribution = k * Pen Contribution includes Population growth of.2%

57 Leafy Salads Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size Class AB Class C1 Class C2 Class D Class E in HH 2 in HH 3 in HH 4 in HH 5+ in HH Housewife Age Age under 28 Age Age Age Age No. of Children No Children 1 Child HH 2 Child HH 3+ Child HH

58 Lifestyles Leafy Salads I regard myself as a connoisseur of food and wine 142 I am prepared to pay more for organic food 134 My diet is very important to me 122 I/my partner enjoy cooking to entertain friends and family 121 The internet has been a positive innovation for society 119 I am prepared to pay more for quality ingredients 118 I believe in a holistic approach to medical treatment 117 I look out for the 'healthy' products 117 I enjoy eating foreign food 116 I like to keep up with fashion 116 I buy free range products whenever I can 115 I feel good about buying fair trade products 115 I never go out without putting on my makeup 115 I try to give my children healthy meals 115 I try to buy a healthy range of foods these days 115 I eat out regularly 115 I am among the first to buy new products when they appear on the market 114 I try to buy environmentally friendly products 114 I'm often on a diet to lose weight 114 I read the ingredients on the pack before buying 113 Spend indexed on Households 52 w/e Oct 8 26

59 Leafy Salads Range Shares % 52 w/e Oct w/e Oct w/e Oct 8 26 Tesco Sainsbury Asda Morrisons M+S Waitrose Florette Co-op Somerfield Tesco Eat / Keep All Others Total PL

60 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

61

62 Mixed Tray Salads Potato+Egg Salad Crunchy Lettuce Sld+Cbbg Sweet+Crunchy Salad Crisp Mixed Salad Lettuce+Tom+Cucumber+Clry King Prawn+Pasta Salad Layered Salad With Cheese Tuna+Pasta Mediterranean Salad Egg Salad Fresh+Crispy Potato+Peas+Bean Salad Ribbon Sld Lettuce+Ccmbr Pasta+Pepper Salad Mixed Pepper Salad Salmon+Potato Prawn+Pasta Salad Chicken+Bacon Caesar Sld Tuna Nicoise Avocado Spinach+Tomato Pasta+Cheese Salad Gourmet Tuna Nicoise Mxd Sld White+Red Cabbage Apple+Seed+Raisin Salad Sweet Pepper Salad Mozzarella+Cherry Tomato Orientl Edamame Soya Bean King Prawn Noodle Salad Greek Salad Tomato+Mozrla Pasta Salad

63 Mixed Tray Salads - Weekly Seasonality Sales m w/e Nov 9 23 w/e Dec 7 23 w/e Jan 4 24 w/e Feb 1 24 w/e Feb w/e Mar w/e Apr w/e May w/e Jun 2 24 w/e Jul w/e Aug w/e Sep w/e Oct 1 24 w/e Nov 7 24 w/e Dec 5 24 w/e Jan 2 25 w/e Jan 3 25 w/e Feb w/e Mar w/e Apr w/e May w/e Jun w/e Jul w/e Aug w/e Sep w/e Oct 9 25 w/e Nov 6 25 w/e Dec 4 25 w/e Jan 1 26 w/e Jan w/e Feb w/e Mar w/e Apr w/e May w/e Jun w/e Jul w/e Aug w/e Sep 1 26 w/e Oct 8 26 Weekly 3 Point Centred Moving Average

64 Key Performance Indicators for Mixed Tray Salads - Value down 18.7% worth 6726k Expenditure ( s) 52 w/e 9 Oct w/e 8 Oct Actual Change % Change Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) Penetration % Purchase Frequency AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend Expenditure ( s) Trip Vol Price per Vol m -18.7% Decrease of k Volume (s Units) 5478k vol -25.5% Contribution = k Price per Vol % Contribution = 393k AWP (Vol per Buyer) 1.1 vol -1.5% Contribution = - 615k Penetration % * 2.3% -24.5% Contribution = - 924k Trip Vol.3 vol +4.7% Contribution = 1596k Purchase Frequency 3.6 trips -5.9% Contribution = k * Pen Contribution includes Population growth of.2%

65 Mixed Tray Salads Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size Class AB Class C1 Class C2 Class D Class E in HH 2 in HH 3 in HH 4 in HH 5+ in HH Housewife Age Age under 28 Age Age Age Age No. of Children No Children 1 Child HH 2 Child HH 3+ Child HH

66 Lifestyles Mixed Tray Salads I rely heavily on convenience products to make cooking simple/quick 13 I am among the first to buy new products when they appear on the market 127 We often visit fast food outlets 124 I'm prepared to pay more for products that make life easier 119 I often buy take-away meals to eat at home 119 I am prepared to pay more for organic food 119 It is important to me which brand I buy 118 I often buy things just because I see them on the shelf 117 I tend to spend money without thinking 114 I think of myself as a brand loyal consumer 113 I am actively trying to manage my cholesterol level 112 I never go out without putting on my makeup 111 I would use cosmetic surgery to improve my appearance 11 I'm often on a diet to lose weight 11 I only eat to fill up 11 I should do a lot more about my health 19 My pet is very choosy about what it eats 19 I try to avoid products containing caffeine 17 I am actively trying to manage my blood pressure 17 I find out about new products from TV adverts 17 Spend indexed on Households 52 w/e Oct 8 26

67 Mixed Tray Salads Range Shares % 52 w/e Oct w/e Oct w/e Oct 8 26 M+S Tesco Sainsbury Morrisons Asda Sainsbury BGTY Asda Good For You M+S Healthily Balanced Waitrose Tesco Naturally Good...8 All Others Total PL

68 Agenda Drivers of Growth Prepacked Produce Prepared Fruit Leafy Salads Mixed Tray Salads Prepared Vegetables

69

70 Prepared Vegetables Broccoli+Crrt+Cauliflower Vegetable Medley Sliced Runner Beans Mini Carrots Mushroom Stir Fry Mixed Peppers Stir Fry Vegetable Stir Fry Broccoli Florets Broccoli+Cauliflower Flrt Diced Carrot+Swede Carrot Batons Spinach Leaves Brussel Sprouts Roast Veg W Herb Baby Spinach Lyrd Veg Wth Seasoned Btr Chinese Veg Stir Fry Swede+Carrot For Mashing Bean Sprouts Crunchy Veg Stir Fry Mixed Vegetable Stir Fry Cabbage+Leek Peas Vegetable Selection Young Leaf Spinach Cabbage Medley Runner Beans Broccoli+Carrot New Potatoes+Herbs+Butter American Style Salad

71 Key Performance Indicators for Vegetables - Value up 5.4% worth 11.1m Expenditure ( s) 52 w/e 9 Oct w/e 8 Oct Actual Change 1157 % Change 5.4 Penetration % Trip Vol Purchase Frequency Price per Vol Volume (s Units) Penetration % Purchase Frequency AWP (Spend per Buyer) AWP (Vol per Buyer) Trip Spend Expenditure ( s) Trip Vol Price per Vol m +5.4% Increase of 11.1m Volume (s Units) 67.8m vol +5% Contribution = 1.4m Price per Vol % Contribution = 616k AWP (Vol per Buyer) 3.9 vol +4.4% Contribution = 919k Penetration % * 7.6% +.4% Contribution = 1332k Trip Vol.4 vol +3.8% Contribution = 797k Purchase Frequency 8.9 trips +.6% Contribution = 121k * Pen Contribution includes Population growth of.2%

72 Prepared Vegetables - Weekly Seasonality 6 New Year s Resolution Market 5 4 Sales m Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb Mar Apr May Jun 2 24 Jul Aug Sep Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb Mar Apr May Jun Jul Aug Sep Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan Feb Mar Apr May Jun Jul Aug Sep 1 26 Oct 8 26 Weekly 3 Point Centred Moving Average

73 7 Prepared Brussels Spouts - Weekly Seasonality 6 5 Sales m Nov 9 23 Dec 7 23 Jan 4 24 Feb 1 24 Feb Mar Apr May Jun 2 24 Jul Aug Sep Oct 1 24 Nov 7 24 Dec 5 24 Jan 2 25 Jan 3 25 Feb Mar Apr May Jun Jul Aug Sep Oct 9 25 Nov 6 25 Dec 4 25 Jan 1 26 Jan Feb Mar Apr May Jun Jul Aug Sep 1 26 Oct 8 26

74 Prepared Vegetables Demographic Signatures Prepared Fruit & Vegeteables Spend Profile % within Demographic Group Social Class Household Size Class AB Class C1 Class C2 Class D Class E in HH 2 in HH 3 in HH 4 in HH 5+ in HH Housewife Age Age under 28 Age Age Age Age No. of Children No Children 1 Child HH 2 Child HH 3+ Child HH

75 Lifestyles Prepared Vegetables I'm often on a diet to lose weight 124 I am among the first to buy new products when they appear on the market 123 I am prepared to pay more for organic food 122 I tend to spend money without thinking 117 I regard myself as a connoisseur of food and wine 116 I like introducing new brands and products to my friends 115 I buy free range products whenever I can 114 I'm prepared to pay more for products that make life easier 114 I am prepared to pay more for quality ingredients 114 I am actively trying to manage my blood pressure 112 I read the ingredients on the pack before buying 112 Recently I have become more aware of whether the foods I buy are good for m 112 I never go out without putting on my makeup 112 My diet is very important to me 112 The internet has been a positive innovation for society 111 I look out for the 'healthy' products 111 It is important to me which brand I buy 111 I am willing to travel further to shop at the supermarket I prefer 11 I like to pamper myself 11 I prefer to buy low salt products if they're available 11 Spend indexed on Households 52 w/e Oct 8 26

76 Prepared Vegetables Range Shares % 52 w/e Oct w/e Oct w/e Oct 8 26 Tesco M+S Asda Sainsbury Morrisons Waitrose Somerfield Co-op Sainsbury TTD Sainsbury Oriental All Others Total PL

77 The current consumer landscape Stepping into the background.. Processed Frozen 3 course meals Unhealthy snacks In the foreground.. Raw Proteins Chilled Traceability 5 a day Health Organic Smaller baskets Fast casual dining Homemade Indulgence Worldpanel Usage In Home Ann to Nov 25

78 Whilst the presence of Foodservice was gathering pace, Retailers have been quick to address to meal solutions opportunity In Store. Billion Great Britain: Shares of Consumer Spending on Food Drink & Alcohol Out of Home In Home

79 Making it easier to eat out, within your own home

80 Differing store fascia s now increasing competitive rivalry within the high street Eat now Tesco Metro Share (Index) I am not really worried about eating healthily (123) I often buy takeaway meals to eat at home (115) I like to spend as little time as possible food shopping (11) Sainsburys Local Share (Index) I regard myself as a connoisseur of food and wine (196) I often buy takeaway meals to eat at home (152) I tend to spend money without thinking (123) I am a busy person, so often eat on the run (117)

81 Profit Sector is worth 27bn +2% y-o-y but Volume is down -3% less people are eating out Premiumisation within Foodservice Source Worldpanel TNS Outlet TM division Tracker- of TNS 526 week to April 6

82 So within Foodservice, overall meals are down, but Coffee Shops, as well as Sandwich Bars are bucking the trend. 52 w/e 27th July w/e 25th July 26 % change QUICK SERVICE RESTAURANTS Burger House Pizza Place (Off Premise) Fish and Chips Chinese (Off Premise) Indian (Off Premise) Total Fried Chicken Sandwich bar/bakery Other QSR NON QUICK SERVICE RESTS Pub/Bar/Steakhouse/Carvery Hotels Chinese (On Premise) Indian (On Premise) Italian Rest(inc OnPrem Pizza) Other Restaurants Motorway services/roadside Sports club/leisure centre Total In Store Coffee Shop TNS Outlet Tracker - No. of Meals Y/E 25th July 26 (Millions)

83 Coffee Culture The growth of premium speciality coffee out of home seems to have benefited consumption at home 8 Speciality Coffee in Cafés 35 Speciality Coffee at Home Oct-99 - Sep- Oct- - Sep-1 Oct-2 - Sep-3 Oct-3 - Sep-4 Oct-4 - Sep-5 Oct- - Sep-1 Oct-1 - Sep-2 Oct-2 - Sep-3 Oct-3 - Sep-4 Oct-4 - Sep-5 Source: Worldpanel NDS

84 Meals Out of Home are getting lighter.. % of Meals featuring a Dessert % % % 16.4% of kids OOH meals feature a dessert also declining yr on yr

85 During the week is now becoming more important for Out of Home meals and snacks. This has implications for meal centres. 1% 9% 8% 7% 6% OOH Meals OOH Snacks Weekend Weekday rules Lighter meals Sandwiches key 5% 4% 3% 2% Weekday On the go formats Individualism Location, location 1% % l TNS Worldpanel Foodservice 52 W/E to May 26

86 Within the Out of home market, Fast Casual Dining has been a real area of growth on the high street. 35 Number of Meals ( ) Sandwich bar/bakery w/e 12th March w/e 7th May w/e 2nd July w/e 27th August w/e 22nd October w/e 17th December w/e 11th February w/e 8th April w/e 3rd June w/e 29th July w/e 23rd September w/e 18th November w/e 13th January w/e 9th March w/e 4th May w/e 29th June w/e 24th August w/e 19th October w/e 14th December w/e 8th February w/e 5th April w/e 1st June w/e 26th July w/e 2th September w/e 15th November w/e 1th January w/e 7th March w/e 3rd May w/e 27th June w/e 22nd August 26 TNS Outlet Tracker - No. of Meals Y/E 22 nd August 26 (Millions)

87 Number of Meals ( ) 9 8 Number of Meals ( ) Subway TNS Outlet Tracker - No. of Meals Y/E 25th July 26 (Millions) 52 w/e 8th February w/e 8th March w/e 5th April w/e 4th May w/e 1st June w/e 28th June w/e 26th July w/e 23rd August w/e 2th September w/e 18th October w/e 15th November w/e 13th December w/e 1th January w/e 7th February w/e 7th March w/e 4th April w/e 3rd May w/e 31st May w/e 27th June w/e 25th July w/e 22nd August 26

88 Reminders Prepared Vegetables Mixed Tray Salads Leafy Salads Drivers of Growth Prepacked Produce Prepared Fruit

89 Thank you