Download - Pulse Report-FrozenFood-Q3-2013
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PULSE REPORT
IRI Pulse Report Frozen Food
Welcome to the Pulse Q3 2013 edition for frozen food. 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 frozen food 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: frozen vegetables, frozen potato products, ice cream, frozen desserts,
frozen meat, frozen fish, frozen ready meals and frozen dough and bread products.
The report highlights key metrics, such as total sales figures, market trends, category
share, 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.
The market channels used for each country in this report are as follows:
Country Channels used
UK Hypermarkets, supermarkets, drug stores and impulse outlets.
ESHypermarkets, supermarkets, hard discounters and drug stores;includes the Canary Islands.
DE Hypermarkets, supermarkets, hard discounters and drug stores.
NL Hypermarkets, supermarkets, hard discounters and drug stores.
ITHypermarkets, supermarkets, small self service, hard discounters anddrug stores.
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 possibleto 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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On the Radar
3
ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOR
Source: Eurostat, September 2013
Due to the ongoing difficult economicsituation Europe, shoppers continue toseek out cheaper meal solutions,impacting the frozen food trends acrossEurope. Inflation remains high and insome cases it is causing consumers to
reduce or eliminate the purchase ofnon-essential items.
POPULATION INMILLIONS
UNEMPLOYMENT(%)
AVERAGE 12MONTH
INFLATIONRATES GDP IN MILLIONS ()
Jan.2012
Jan.2013
Average2012
Sep.2013
Average2012
Sep.2013 2012
2013(Estimate)
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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1 116 1 076 1 040 1 066 1 106 1 120
602 680 535 468 562682
247 233222 218
248241
945 1 018763 769
912980
2 092 2 005
2 055 2 058
2 1132 084
954 964
954 836
914998
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
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
-2.2%
+3.8%
+1.2%
TOTAL EUROPE +1.0%
VALUE SALES IN MILLIONS ()
Total EU 22 945
DE 8 310
UK 4,332*
FR 3 702
IT 3 425
ES 2 246
NL 929
TOTAL FROZEN FOOD VALUE SALES AND % CHANGE VS. PRIOR YEAR
*based on an exchange rate of1.150 to the pound
-3.2%
+0.2%
+1.2%
TOTAL FROZEN FOOD VALUE SALES FOR THE LAST SIX QUARTERS
Source: IRI retail databases; Period ending 29 September 2013
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2 292
6 556
3 816
4 829
2 348
0.4 2.3-2.4-0.49.1
Frozen
ReadyMeals
IceCream
FrozenFish
Frozen
Vegetables
FrozenMeat
Millions
Total Sales % vs. YA
16.6%
10.0%
7.7%
28.6%
0.0%
1.7%4.1%
21.1%
10.2%
Frozen Ready Meals Ice Cream Frozen Fish
Frozen Vegetables Frozen Meat Frozen Potato Products
Frozen Desserts Frozen Dough & Bread Products All Other Frozen Meats
Europe
5
4 829
3 816
2 348
1 768
379
6
6 556
2 292Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEAR
CATEGORY SHARE OF VALUEIN THE LAST YEAR
Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
Source: IRI retail databases; period ending 29 September 2013
KEY TRENDS
The pace of frozen food value growth
across Europe slowed in Q3 2013, (+1.0%
in Q3 versus +1.5% in Q2). Year-over-
year trends show an even more marked
slowdown.
All countries except the United Kingdom
experienced this slowdown quarter versus
prior quarter. Northern states are
performing better than their Southern
neighbours.
Whilst the economy is a key driver of the
downward trend, it is not the only
influence. For instance, in Germany
volume grew whilst other countries are
experienced market volume declines.
The largest category in frozen, ready
meals, saw volume declines in Q3 (-0.4%),
in contrast to increases posted in the first
two quarters of the year (+1.5% in Q1;
+0.3% in Q2).
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Europe
6
CATEGORY INSIGHTS
Frozen potato products is a key driver of frozen food sector growth across Europe.
Beneath this topline trend there are some differences across the individual countries. For
instance, United Kingdom growth is fuelled by inflation with volume in decline, whilst inFrance the market is a much more positive picture growing both on value and volume terms.
Ice cream: weather being the key driver of this category, the good summer we experienced
across Europe boosted demand. Spain and Italy were an exception, experiencing value
declines (-6.5% and -5.2%, respectively) as shoppers cut back on impulse categories.
Frozen ready meals are suffering from a lack of innovation, good summer weather (which
has favored lighter meals) and the continuous switch to cheaper solutions and scratch
cooking.
The decline of frozen fish has accelerated in Q3, to -2.4%. This is the only category showing
a negative trend across Europe. Value sales declines are being heavily influenced by the highuse of promotions to maintain consumer participation in the category as fish becomes
increasingly expensive. Despite high levels of promotion volume sales continue to decline.
The category is under further pressure from the bad press affecting the fish industry (e.g.,
salmonella, heavy metals).
Europe includes: France, Germany, Italy, Netherlands, Spain and United Kingdom
Source: IRI retail databases; period ending 29 September 2013
TOP LOSERS: VALUE SALES
CHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALES
CHANGE VS. YR. AGO ()
191.4
101.0
53.1
20.0
1.0
0 50 100 150 200 250
Frozen Meat
Frozen Potato Products
Frozen Vegetables
Ice Cream
All Other Frozen Meats
Millions
- 0.9
- 8.1
- 10.1
- 93.8
- 29.5
-100 -80 -60 -40 -20 0
Frozen Poultry
Frozen Desserts
Frozen Dough & Bread
Products
Frozen Ready Meals
Frozen Fish
.Millions
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371438
834
667
970
-0.5-2.6 -2.66.31.5
Frozen
ReadyMeals
IceCream
FrozenFish
FrozenMeat
Frozen
Vegetables
Millions
Total Sales % vs. YA
France
7
KEY TRENDS
Frozen food volume sales continue to decline
quarter-over-quarter: Q3 -1.5% versus
-0.7% in Q2.
Value growth remains consistent this quarter
(+0.2% versus +0.3% in Q2), but the frozen
foods sector in France is demonstrating the
lowest level of growth across the FMCG
markets.
Inflation remains a key factor within this
market, while others food and non-food
markets are deflationary (except drinks).
Frozen food prices increased an average0.9% in Q3 versus +1.4% in Q2.
Despite the price inflation, private label is
losing market share at a faster rate versus
other FMGC sectors. Nonetheless, private
label is still a dominant force within frozen
foods, representing almost 1 out of 2 spent
on frozen market higher than other
markets.
Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEAR
CATEGORY SHARE OF VALUEIN THE LAST YEAR
Source: IRI retail databases; period ending 29 September 2013
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
18.0%
10.0%
9.1%
26.2%
0.3% 2.0%
22.5%
11.8%
Frozen Ready Meals Ice Cream Frozen Fish
Frozen Meat Frozen Vegetables Frozen Potato Products
Frozen Desserts Frozen Dough & Bread Products
834
667
438
371338
73
11
970
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France
8
TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()
Source: IRI retail databases; period ending 29 September 2013
25.8
12.9
11.9
1.1
0.6
0 5 10 15 20 25 30
Frozen Meat
Frozen Potato Products
Ice Cream
Frozen Dough & Bread
Products
Frozen Desserts
- 1.8
- 25.8
- 17.7
-100 -50 0
Frozen
Vegetables
Frozen Fish
Frozen Ready
Meals
.Millions Millions
CATEGORY INSIGHTS
Frozen meat once again leads the way in value growth across the frozen foods sector,
+6.3% versus +6.4% in Q2. Growth is being driven by private label, which is contributing to
53% of total growth. National brand, Charal, also performed well, contributing 23% of
growth.
Frozen potatoes is doing well, with 100% of growth coming from regular shelf sales. Due to
the poor harvest of this year, it looks likely that 2014 will be another year with little
promotional support. McCain drove 66% of category growth, making this brand a driver of
overall frozen foods sales.
Ice cream : After a difficult start to the year not helped by poor weather, good supported
value sales growth of +1.5% in Q3, versus +0.9 the prior quarter.
Frozen dessert: the introduction a few years ago of Marie, a major player in frozen food,
continues to revive the category. Category growth is being supported by strong promotionalactivity.
Frozen ready meals have been negatively impacted by the good weather, with value sales
falling -2.6% in Q3 (versus-1.9% in Q2), despite media investment.
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586
2 954
1 278
1 569
752
13.3
3.23.41.2 -0.5
Frozen
ReadyMeals
FrozenMeat
IceCream
FrozenFish
Frozen
Desserts
Millions
Total Sales % vs. YA
Germany
9
KEY TRENDS
In Germany, frozen foods are demonstrating
above-average growth (+3.8% versus Europe
growth of +1.0).
Inflation is a primary growth driver, as
volume sales were largely flat (+0.5%). Base
sales (volume) are growing, off-setting a
decline in promotional volume sales.
Meanwhile, value sales are growing at both
base and promotional levels.
Discounters (driven by Lidl) registered the
strongest frozen foods sales, followed by
hypermarkets. Meanwhile, supermarketsdemonstrated sales declines.
Private label frozen foods are enjoying value
and volume sales growth, whilst sales of
branded products are in decline.
Frozen meat is the top-performing frozen food
category in Germany. Desserts and frozen
dough and bread products showing declines.
Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEAR
CATEGORY SHARE OF VALUEIN THE LAST YEAR
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
Source: IRI retail databases; period ending 29 September 2013
6.6%
7.1%
15.4%
35.5%
2.5%
4.9%
18.9%
9.0%
Frozen Ready Meals Frozen Meat Ice Cream
Frozen Fish Frozen Desserts Frozen Vegetables
Frozen Potato Products Frozen Dough & Bread Products
1 569
1 278
752586 551
410
210
2 954
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Germany
10
CATEGORY INSIGHTS
Poultry is the major growth contributor of growth within the frozen meat category.
Discounters are enjoying particularly strong category growth, contributing to more than 70%
of growth within frozen meat.
Private label is the clear winner within the frozen meat. Private label market share
increased +5 points, and private brands now hold 59% (value) of the market. The frozen dough and bread products category has seen a decline of -6.7% in base sales,
driving a sharp downward sales trend. An increase in promotional activity has been unable to
reverse the slide. The further expansion of bake-off stations within the hard discounter
channel is also contributing to category challenges.
Among frozen desserts only sweet foods are showing positive growth. This growth is not
strong enough to offset declines posted in the cake/pie/pastry and fruit segments.
Price inflation is supporting ice cream value growth, whilst volumes remain static. Frozen
fish also has experienced price inflation with downward trending volume.
Within frozen ready meals, the pizza/baguette segment is in slight decline whilstready/partial meals, supported by double-digit value growth in the Lidl banner, is showing
positive value growth. Meanwhile, volume continue to decline. Private label is performing
well in the frozen foods sector and is contributing the overall strong performance of private
label within frozen food.
TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()
Source: IRI retail databases; period ending 29 September 2013
Millions
18.6
23.1
35.3
41.4
183.6
0 50 100 150 200
Frozen Meat
Ice Cream
Frozen Ready Meals
Frozen Fish
Frozen Potato Products- 12.0
- 2.7
-15 -10 -5 0
Frozen Desserts
Frozen Dough & Bread
Products
.Millions
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Italy
11
Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEAR
CATEGORY SHARE OF VALUEIN THE LAST YEAR
Source: IRI retail databases; period ending 29 September 2013
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
3,2% 3.3%
20.3%
29.6%
0.9%1.0%
23.0%
18.7%
Ice Cream Frozen Fish Frozen Vegetables
Frozen Ready Meals Frozen Meat Frozen Potato Products
Frozen Desserts Frozen Dough & Bread Products
789
696641
110
34 30
1 013
112
112
1 013
696
789
641
-3.7 -0.61.4-5.2-0.5
IceCream
FrozenFish
Frozen
Vegetables
Frozen
ReadyMeals
FrozenMeat
Millions
Total Sales % vs. YA
KEY TRENDS
Due to persisting economic slowdown, most
markets are experiencing falling value and
volume sales.
While the performance of FMCG overall
improved slightly during Q3, frozen food
sales are declining at an accelerating pace
(-3.7% in value, -3.1% in volume).
The short term trend driven by price
inflation seen over recent months after a
long period of stability.
Promotional activity is relatively stable
across most frozen foods categories. Icecream is an exception. Promotional support
increased more than three points versus
levels seen in 2012.
Discounters performed well in frozen foods
in Q2 2013, but Q3 activity has declined.
Though frozen vegetables are showing year-
over-year growth, Q3 sales declined.
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Italy
12
CATEGORY INSIGHTS
Frozen meals: Q3 2013 value sales declined -3.0%, driven heavily by double-digit declines in
pasta-based first dishes due to shifting consumer behaviors (selection of less expensive
alternatives). Fish-based dishes sold through market leader Findus grew 12%. Meanwhile,
pizza trends are flat, consistent with Q2 trends.
Frozen fish: Q3 2013 value sales -4.0%, driven mainly driven by declines in natural fish(-4.7% in Q3). Additionally, persisting economic challenges continue to deter shoppers from
expensive categories. Coated prepared fish slowed decline trends (-0.8% on Q3) with stronger
promotional support from Findus as well as the launch of a fish burger.
Frozen vegetables: Q3 2013 value sales -3.1%; bad weather helped the market to grow
quarter on quarter but in Q3 all segments show a declining trend both in volume and value ;
Frozen vegetables are seeing increased pressure from fresh vegetables, which are being
bolstered by significant deflationary prices. Additionally, spinach and mixed vegetables, which
were strong in previous quarters, saw declines in Q3, driven by a decrease in promotional
support and inflationary prices.
Ice cream: Q3 2013 value sales -4.3%. Bad weather and conservative purchase behaviors(specifically the reduction/elimination of non-essentials) had a significant negative impact on
the ice cream category in Q3. Additionally, innovation has declined (new product development
(NPD) contributing to 7% in 2013, versus 9% in 2012). All ice cream segments, with the
exception of multipack cones [(+5.2% on Q3 2013) supported by increased promotional
support] experienced strong volume declines in Q3.
TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()
Source: IRI retail databases; period ending 29 September 2013
Millions
1.0
5.4
9.5
0 2 4 6 8 10
Frozen Vegetables
Frozen Potato Products
Frozen Desserts
- 55.3
- 3.9
- 3.0
- 0.6
- 30.6
-60 -50 -40 -30 -20 -10 0
Frozen Meat
Frozen Dough & Bread
Products
Frozen Ready Meals
Frozen Fish
Ice Cream
.Millions
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74
389
116
205
94
5.0 1.9-4.5-0.3
7.2
Frozen
ReadyMeals
IceCream
FrozenFish
Frozen
Potato
Products
Frozen
Vegetables
Millions
Total Sales % vs. YA
Netherlands
13
KEY TRENDS
In the Netherlands, frozen food value sales
grew 1.0% year-over-year. However,
comparing Q3 2013 to the same quarter in
2012, value growth accelerated to 3.5%,
driven by the strong performance of ice
cream.
The growth rate in the frozen market is equal
to the non-food market, but is lower than in
the rest of the food market.
In value terms, the largest relative growth
can be attributed to frozen vegetables.
Furthermore, the dough and bread productshave grown significantly in both value and
volume.
Discounters and service supermarkets are
growing at the same rate. Besides the
categories mentioned above, discounters are
performing well in potato products.
Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEAR
CATEGORY SHARE OF VALUEIN THE LAST YEAR
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
Source: IRI retail databases; period ending 29 September 2013
2.2% 8.0%
12.6%
42.2%
0.5%
0.7% 1.3%
22.3%
10.2%
Frozen Ready Meals Ice Cream Frozen Fish
Frozen Potato Products Frozen Vegetables Frozen Desserts
Frozen Dough & Bread Products All otherFrozen Meats Frozen Poultry
205
11694
2112 6 4
389
74
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CATEGORY INSIGHTS
The top winning categories had a combined growth of 17,7 million versus last year. Growth
is mainly attributable to increasing levels of demand for ice cream due to good summer
weather. Growth in frozen vegetables can mainly be attributed to price inflation. Sales
decline for the top losers equals 8,0 million and is driven mainly by the frozen fish segment.
Ice cream continues to grow in value and volume across all segments. Still, the largestgrowth can be contributed to the introduction of a single serve spoonable ice cream
introduced by Unilever. Despite being a cheaper alternative, frozen ice lollies are declining in
value terms within service supermarkets.
The largest frozen food sector declines are visible in frozen fish. Frozen fish value sales are
declining, and despite lower prices, volume remain under pressure. The most significant
decline is seen in prepared fish products. The fresh fish segment is also showing a downward
trend, largely due to an outbreak of salmonella bacteria which was found in salmon sold in
the Dutch market.
Frozen meals, which mainly consists of pizza, are under pressure in service supermarkets.
Dr. Oetker is showing a decline, with lower levels of new product development (NPD)compared to last year along with less promotional support. Furthermore, price increases at
Wagner have had negative impacted on volume. Snacks continue to grow in value, but this is
only due to price inflation. The one exception is hamburgers, which still show volume growth,
which is often viewed as a low-cost meat alternative.
Netherlands
14
TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()
Source: IRI retail databases; period ending 29 September 2013
Millions
1.0
1.8
5.0
9.9
0 2 4 6 8 10 12
Ice Cream
Frozen
Vegetables
Frozen
Potato
Products
All
otherFrozen
Meats
- 5.5
- 0.9
- 0.4
- 1.2
-6 -5 -4 -3 -2 -1 0
Frozen
Desserts
Frozen
Poultry
Frozen Ready
Meals
Frozen Fish
.Millions
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Spain
15
Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEAR
CATEGORY SHARE OF VALUEIN THE LAST YEAR
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
Source: IRI retail databases; period ending 29 September 2013
24.4%
5.2%3.2%
32.7%
0.2%
0.4%
26.2%
7.8%
Frozen Fish Ice Cream Frozen Ready Meals
Frozen Vegetables Frozen Dough & Bread Products Frozen Potato Products
Frozen Desserts Frozen Meat
588547
175
72
9 4
734
117
117
734
547588
175
-6.5 -3.9-1.7-3.3 3.0
FrozenFish
IceCream
FrozenReady
Meals
Frozen
Vegetables
FrozenDough
&Bread
Products
Millions
Total Sales % vs. YA
KEY TRENDS
Quarter-on-quarter frozen foods value
sales fell -3.2% in MAT, whilst volume
sales slid -2.8%.
The September tax increase in September
2012 is putting pressure on sales.
Declines across several key frozen food
categories, fish and seafood (-3.2%),
pizzas (-0.8%) and ice cream (-6.5%) are
contributing heavily to frozen food
declines.
Though private label holds a 57.7% share
of frozen food sales, declines in privatelabel sales are sharper than branded
alternatives (-2.8% and-3.0%,
respectively).
During the last few months the
manufacturer, Pescanova, has been
plagued by negative publicity due to
corporate issues and financial audits.
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Spain
16
CATEGORY INSIGHTS
Nestle is the leading frozen manufacturer, but sales declined -8.6% (value) and -9.2%
(volume) in Q3. Pescanova, the second-largest manufacturer, maintained sales (+0.1%
value) despite its recent problems. The third largest frozen food manufacturer, Unilever,
experienced a value sales decline of -8.7% in Q3..
The new Findus Group (Findus+Bonduelle) will change the assortment and the mix ofvegetables and ready-to-eat categories, becoming a brand leader in many sectors. Still,
sales trends remain negative (-7.9%, value and -9.9%, volume).
Pizza category growth has slowed, as value sales declines at Dr. Oetker were not able to
completely offset losses at Nestle. Combined, the manufacturers hold more than 5% share of
the category (-3.7% versus year ago). Nestles share is 27.7% (-13%, value). Dr. Oetker
holds 31.2% share (+4.8%, value).
Ice cream: Unilever is the market leader, with 16.5% share of value sales. However, sales
fell -8.7% due to private labels dominance in the category (69% value share, +5.8%;
volume share of 85%).
TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()
Source: IRI retail databases; period ending 29 September 2013
Millions
3.4
5.8
0 2 4 6 8
Frozen Potato Products
Frozen Dough & Bread
Products
- 40.7
- 9.7
- 7.1
- 0.4
- 25.2
-50 -40 -30 -20 -10 0
Frozen Meat
Frozen
Vegetables
Frozen Ready
Meals
Frozen Fish
Ice Cream
.Millions
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United Kingdom
17
KEY TRENDS
The frozen market in the UK continues to grow
in value terms, whilst volume is in decline.
The growth in value driven by inflation. Volume
declines are consistent with general declines in
consumption that is occurring across many
ambient categories.
McCain Food is contributing to overall negative
volume trends, which are resulting from
increasing prices and lower levels of deal this
year. Walls & Aunt Bessies the only major
manufacturers to grow in volume terms.
As purse strings are tightened, one wouldexpect private label to cash in but, at a total
private label level, this is not the case.
However, some categories, such as frozen
potato, are benefitting from inflation and
declining promotional support of branded
solutions.
Euros,
inMillions
CATEGORY VALUE SALESIN THE LAST YEARCATEGORY SHARE OF VALUE
IN THE LAST YEAR
TOP 5 CATEGORIES: EVOLUTION
Value sales () and % change vs. year ago
5.0%11.1%
17.5%
24.3%
3.9%
21.0%
17.2%
Frozen Ready Meals Ice Cream Frozen Fish Frozen Potato Products
Frozen Vegetables Frozen Desserts Frozen Meat
910
758 744
216 169
1 054
481
481
1 054
758
910
744
6.2 8.2-4.8-2.2
6.5
Frozen
ReadyMeals
IceCream
FrozenFish
Frozen
Potato
Products
Frozen
Vegetables
Millions
Total Sales % vs. YA
Source: IRI retail databases; period ending 29 September 2013
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CATEGORY INSIGHTS
Ice cream has benefitted by the good weather over the summer in the UK, resulting in an
increased demand and higher promotional efficiencies, particularly throughout July.
Frozen potato remains a key growth category within frozen food, fuelled by price inflation.
With less promotional activity notably off shelf, the category has failed to attract the lighter
potato buyers, resulting in volume losses. Private label is cashing in, as shoppers have tradeddown due to increasing prices among branded solutions.
Ready meals: Sales of frozen pizzas are driving growth driven by the likes of Chicago
Towns Deep Dish & Takeaway, fuelled by their high levels of promotional activity. Standard
ready meals continue to struggle, with retailers concentrating on their private label chilled
offering with well-advertised dine in meal deals. The good weather has had a negative
impact on the sales of traditional meals and their components, as consumers switch to lighter
meals, such as salads, cooked meats and barbecues.
Vegetables: Value growth continues to be driven by inflation and NPD, with volume
relatively static. NPD is focusing on convenience and added value, such as single serving
steam/microwavable pouches. As mentioned above, demand for frozen vegetables declinedas the temperatures rose in the UK.
Fish: With demand declining and the category being de-valued by Birds Eye and Youngs,
aggressive tactical promotional strategies are contributing to both value and volume continue
to decline. Sales of fresh fish grew slightly, but not enough to make up losses from frozen
fish. Despite the well publicised health benefits as a nation, the UK are eating less fish.
United Kingdom
18
Source: IRI retail databases; period ending 29 September 2013
TOP LOSERS: VALUE SALESCHANGE VS. YR. AGO ()
TOP WINNERS: VALUE SALESCHANGE VS. YR. AGO ()
Millions Millions
29.3
52.8
56.5
0 10 20 30 40 50 60
Frozen Potato Products
Ice Cream
Frozen Vegetables
- 37.8
- 17.1
- 6.4
- 24.2
-40 -30 -20 -10 0
Frozen
Desserts
Frozen Meat
Frozen Ready
Meals
Frozen Fish
.
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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 necessaryto consolidate 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:
Frozen Dough & Bread Products
The UK data in this report does not include this category.
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Resources
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Please contact Isabelle Staquet,
IRI at [email protected]
+33 1 30 06 26 68 with 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 utilises 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 frozen food
comes from InfoScan Census.
IRI Consulting provides strategic insights and advice leveraging a variety of data sources,predictive analytics, enabling technologies, and business analyses to help FMCG
manufacturers and retailers address significant sales and marketing issues effectively.