British branding begins!

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2 British branding begins! The Union Jack has become an increasingly common sight on supermarket shelves with a swathe of manufactures releasing limitededition packs to celebrate the Great British Summer. Whilst many new passengers have jumped aboard the British bandwagon some have been pushing British provenance for a number of years. So how effective is the British message? With consumers expected to spend an extra 344m over Diamond Jubilee weekend it is not surprising that manufacturers have been unable to resist a bit of British branding. Kingsmill has changed its name to Queensmill for 2 weeks in honour of the Jubilee, Weetabix has launched a limited-edition pack titled Fuel Britannia whilst Mars Celebrations have been re-named Jubilations. Some have taken things a little further launching some brilliantly British NPD. Tyrell s have created a Red, White & Blue crisp variety, combining three different types of potato to create some patriotic multicoloured crisps. Whilst to many manufacturers bringing out the bunting is a short-term marketing tactic others have made British provenance a cornerstone of their brands. Hovis has long championed its British credentials and has been making its bread exclusively from British wheat for the past couple of years whilst Walkers packs now prominently feature a made using 100% British Potatoes claim. However, a recent survey from The Grocer has revealed that Britishness 2012 / Q2 2

3 simply isn t a priority for everyone. When asked to identify the most iconic British food and drink brands the top consumer answers were Heinz, Coca-Cola and Cadbury; none of which are British-owned. Sourcing ingredients entirely from the UK is an effective way to champion a brands British credentials but it does come with significant risk. In the event of a commodity crisis in the British markets, competitors will simply source supplies from overseas, whilst Hovis and Walkers will be forced to endure the price hikes. This seems like a large risk to take when, according to The Grocer only 4% of consumers said they were interested to know whether their products were made using British ingredients. Sourcing ingredients entirely from the UK is an effective way to champion a brands British credentials However, sales of meat at Aldi have risen by 91% since it launched an advertising campaign pushing its British provenance, back in February. Aldi identified that many consumers believed the company to be German-owned, selling German produce; a perception that Aldi has worked hard to reverse with resounding success. There is no question that flying the flag will be a common marketing tactic during the festivities but the long-term efficacy of British provenance remains to be seen. The following snapshot of notable product launches gives an idea of who s thinking what and why. All information has been sourced from a variety of food trade media / Q2 3

4 Bakery Kingsmill will change its name to Queensmill for 2 weeks to celebrate the Diamond Jubilee. The UK biscuits and cake market grew 4.5% in According to Confectionery Production the trend is being driven by thrifty consumers packing their own lunches. Sainsbury s have delisted Warburtons from their smaller convenience store formats in favour of Hovis. Sainsbury s said the decision to delist Britain s largest bread brand was taken in order to trial different bread options. Hovis has released a British Farmers loaf to further emphasise its British credentials. The move has come after Premier Foods suffered a 90% fall in its bread division profits last year. Genius has reduced the calorie and salt content of their gluten-free loaves in response to consumer feedback. Kellogg s is launching a new range of Nutri-Grain breakfast biscuits in order to capitalise on the growing demand for fast, on-the-go breakfasts. Value sales of breakfast biscuits soared 115% in Burgen is launching a new loaf of bread featuring the chia seed in response to growing demand for healthier bread products. Allied Bakeries have been targeting health-conscious consumers and consequently have pushed their volume sales up 24.5% on the same period last year. Weetabix has launched a limited-edition cereal pack titled Fuel Britannia to celebrate the Diamond Jubilee / Q2 4

5 Confectionery & Snacks Confectionery Production suggests that there is an increasing demand for products with more natural formulations. Beyond Dark has released a new healthy confectionery product called Drops of Pure Pleasure. Each 35g bag is rich in antioxidants, containing the equivalent of 25 oranges. R Crawford is launching a range of Brit Pops lollies that feature Union Jack colours and taste of strawberries and cream. Kit-Kat will be temporarily re-named Brit-Kat in celebration of the summer s events. Mars is releasing a new limited-edition version of Celebrations called Jubilations. Keith Belling co-founder and CEO of Popchips believes that snack producers will increasingly focus on portion size, lowering fat, calorie alternatives, and gluten-free offerings Fox s Biscuits has released two limited-edition British-themed variety biscuit tins. The tins will feature the Union Jack alongside the company mascot Vinnie. Over 65% of PepsiCo s research and development budget is dedicated to producing healthier snacks. Mars is considering shrinking the size of its bars, capping them at 250 calories per bar, to deliver on its Responsibility Deal pledge. Kraft Foods is celebrating the heritage of its Dairy Milk bars, launching a limited edition Jubilee pack designed to mimic the chocolate s packaging in 1952, when the Queen was crowned. Tyrells is producing a new Red, White & Blue flavour of crisps to celebrate the Jubilee. The company has taken three different varieties of potato to create the multicoloured crisps. Tyrrells marketing director Oliver Rudgard believes that the crisps and snack market is all about a moment of indulgence and consequently the company has no plans to develop healthy snacks. United Biscuits is launching limited-edition, Union Jack packaging for its Digestive biscuits, featuring the slogan Proud to be British / Q2 5

6 Dairy Cheddar brands are reappearing in the multiples as consumers demand greater choice. Quality ice creams resonate well with consumers according to Innovations in Food Technology. ADM Cocoa is looking to capitalise on the growing consumer demand for healthier ice cream. The Dezaan chocolate coating range enables producers to offer ice cream with 43% less saturated fat without compromising on taste. Sainsbury s is extending its by Sainsbury s yogurt range to incorporate new 125g formats featuring indulgent flavours such as Apple Crumble and Eton Mess. The new larger format follows the trend set by Onken and Yeo Valley earlier this year. Arla is launching a new on-the-go unflavoured milk product to be sold alongside soft drinks. The milk will be advertised as healthier and more hydrating than other soft drinks on-sale. Rachel s has launched a limited-edition Strawberries & Cream yogurt variety to help consumers celebrate a very British summer. The Make Mine Milk Campaign is launching a pre-olympic campaign with new Union Jack packaging featuring former athlete Denise Lewis. The campaign has been running since April 2010 featuring a wide range of celebrities from Gordon Ramsey to Vinnie Jones and emphasises the nutritional benefits of drinking milk. Adams Foods has secured two relisitngs of its Kerrygold butter. The brand was delitsted in September last year when the multiples sought to reduce the number of like-for-like products in the dairy aisle. Fage UK is adding a new dual flavour to its Total 0% split-pot range. The new Raspberry and Pomegranate flavour has been developed to cater to consumers who are becoming more adventurous, demanding more variety says Fage marketing director Emma Wilson. Research has shown that consumers buy cheese based on price and availability rather than quality. Pilgrims Choice is hoping to change that, launching a new advertising campaign in order to enhance its brand identity / Q2 6

7 Fresh Produce Promotions on fresh fruit and vegetables have increased by 43% over the last two years as consumers become increasingly interested in healthy eating. Florette is reintroducing its Three Lions Salad in order to capitalise on the UEFA European Championships. The latest research from the World Cancer Research Fund suggests that only one-in-five Britons eat their recommended five portions of fruit and veg a day. According to Kate Mendoza, head of education for the WCRF, although more people are aware of the significance of eating five a day it is clear that there are still barriers to incorporating fruit and veg into or daily diets. Asda is introducing specialised packaging for its fruit and vegetable products in order to extend shelf life and reduce wastage. A recent survey conducted by Asda showed that 50% of their shoppers want the supermarket to offer cheaper fruit and vegetables to help them through the recession. Morrisons have opened a new store in Tunbridge Wells that will focus on fresh produce, stocking more than 500 lines. Morissons has dubbed the new format the store of the future suggesting that greater fresh sections could be a thing of the future. Asda is looking to boost its sales of produce by offering prizes to staff that create successful and creative displays in the fruit and vegetable aisle / Q2 7

8 Frozen & Processed Premier Foods has launched a new range of noodle and pasta snacks available in a 75g box format. The boxes contain 2% fat and are being targeted at women. Tasty Little Numbers is launching a new range of pot-meals. Each pot contains exactly 300 calories and is targeted at health conscious consumers. Tesco is launching two new functional milks to its dairy aisle. The Healthy Bones Milk features increased calcium, whilst the Multivitamins Milk has added nutrients to promote a healthy immune system. Princes is launching a new ready-to-eat tuna salad range to target consumers looking for a healthy lunchtime snack they can eat on-the-go. Eat Balanced is extending its range of healthier pizza products. The pizzas will provide 30% of the GDA of all the main nutrients to help deliver a balanced diet. Booths has begun stocking On The Menu ready meals designed specifically for old people. The products feature accessible packaging and classic recipes such as Roast Chicken. Goodfella s is releasing a new range of frozen pizza s with a side portion of potato wedges. Brand owner 2 Sisters Food Group said the range was developed to offer consumers a more complete takeaway experience / Q2 8

9 Functional Foods Dairy producers are looking to capitalise on consumer perceptions surrounding the health benefits of dairy. In 2011, 767 European yogurt launches featured the claim low fat. There is increased consumer demand for healthy bakery products, with low fat pastry, cookies and cakes all growing in popularity. Research from New Zealand s Massey School of Sport and Exercise has revealed that blueberries can aid muscle recovery after exercise. Soft Drinks Under 17 s drank 7.1% less carbonated drinks in 2011 due to parents becoming increasingly concerned for their children s health. Kantar Worldpannel analyst Fiona Hudson believes this to be a long-term trend. Energy drinks are driving the soft drinks market growing 13.2% in value and 10.5% in volume. Video gamers now account for 68% of energy drink consumption according to Simon Green, marketing director at Kick Energy. Double concentrated cordials have grown 64% in value and 35% in volume and now make up 30% of the overall cordial market. SoBe flavoured water is set to become the first UK soft drink to incorporate artificial sweetener stevia. PepsiCo and Britvic are looking to replicate the success SoBe has had in the US where the introduction of stevia drove volume sales up by 73%. Coconut water company Vita Coco is enlisting Rihanna in its first UK ad campaign / Q2 9

10 Alcohol White cider products are likely to be discontinued if the Government introduces new pricing limits on alcohol. A spokesman from C&C, Britain s second biggest cider producer, said that the ciders would no longer be commercially viable. Ale currently accounts for a quarter of on-trade beer sales and if this popularity transfers to off-trade purchases, ale could become a 900m category. C&C Group has announced its plans to add two new flavours to its Gaymers cider range. The Pear cider with Cherry & Apple and Pear cider with Raspberry varieties will be launched next month. Asda is planning to launch a new range of own-label wines that come in plastic pouches. The pouches are advertised as being perfect for any outdoor gathering. Female consumers are increasingly turning to premium, bottled ale rather than lager. Diageo and CCE are encouraging consumers to make mixed spirit drinks at home to celebrate the British summer. The companies have launched limited-edition ranges of their products outfitted with Union Jack packaging. The Scottish Government has announced its plans to introduce a 50p minimum unit alcohol price. If introduced 25% of alcoholic drinks would have their prices increased. If passed the new regulations would be expected to come into force at April AB InBev and Heineken are planning to launch new pear cider products this summer. Stella Artois Cidre Pear will go head-to-head with a new Strongbow variety. The launches are looking to capitalise on the strong performance of pear cider in off-trade / Q2 10

11 Meat, Fish & Poultry The Big Prawn Co is launching a limited-edition King Prawn Cocktail with Coronation Sauce. Sales director Craig Harrison said the company wanted to create something original rather than just taking our normal product and sticking a Union Flag on it. Moy Park has launched a new range of fresh chicken products backed by Jamie Oliver. The poultry used in the range have all been reared using sustainable practices that deliver higher animal welfare processes. Graham White and Co is expanding its Porky Whites sausage range, incorporating world flavours to add diversity to the sausage market. Gressingham is rebranding its fresh duck offerings in order to increase household penetration from its current 7% to 14% by The Big Prawn Co has produced a range of Shellfish Jelly Shots. The company is hoping to capitalise on the summer s festivities, marketing the shots as the perfect party food. Silver Fern Farms has extended its lamb range with a new pack of lamb medallions. The company said the release was to help deliver affordable fresh lamb to consumers as lamb prices have risen 16% since last year. Asda is now offering a whole frozen wild Alaskan salmon for 2. The salmon are all sustainably sourced and Asda explained the low price was due to buying early. An Italian prosciutto consortium is launching a new marketing campaign to take advantage of the growing consumer interest in speciality hams. Vladimir Dukcevich believes that the consortium can at least double its sales over the next two years. Kerry Foods is launching a range of perfect for pasta Wall s branded meatballs. Kerry Foods said the launch was a response to pasta becoming the most popular evening meal choice / Q2 11

12 Miscellaneous Tesco s has rebranded its Value range in order to emphasise quality and move away from price competition. Tesco s Marketing Director David Wood has emphasised that the Everyday Value range was created to enhance the quality of its own-label offerings without pushing up prices. The EU s Laying Hens Directive has caused a rise in the price of eggs with egg whites rising 41% y-o-y. The Government is calling for a standardised front-ofpack nutrition labelling system and will be consulting with businesses the next 3 months. The Academy of Medical Royal Colleges has called for the Government s Responsibility Deal to be scrapped, claiming it to be inherently flawed. However, Health Secretary Andrew Lansley believes the scheme has been very successful achieving more in the last two years than in the previous decade. According to the Food Standards Agency intakes of saturated fat exceed public health recommendations by around 20%. Esther van Ommeren, a senior flavourist, believes that nutritional value is a key factor driving consumers purchasing decisions, but they are no longer accepting a healthier product that does not taste good. The Organic Trade Board is set to launch a new advertising campaign in order to attract consumers back to organic foods. In 2011, sales of organic foods fell by 5%. YouGov research shows that British consumers expect to spend 344m more over the Jubilee Bank Holiday. The multiples are focusing heavily on price with Sainsbury s Brand Match, Asda s Price Guarantee and Waitrose s latest pledge to match Tesco s prices on 7000 leading brands. The European Commission has published a full list of 222 approved health claims that manufacturers can make. From December 2012 any claim that is not on the list will be prohibited. 68% of FMCG brands declare that 40% of their sales are now made on promotion / Q2 12

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