Launching a ‘healthier’ brand to the mainstream

Greg Parsons Managing Director

Cricketer Farm

• Award winning cheese makers since

1940’s

• Strong provenance and heritage

• Hand made in Somerset using only

West Country milk

low fat other

cheddar goats

Healthy Eating is a way of life…

62% consumers watch what they eat

98% of households buy into Low Calorie foods

19.9million adults are overweight, 15.1 million are obese

By 2050; 60% of men, 50% of women and 25% of children will be obese

Sources; The Foresight Report 2007, Kantar Worldpanel, Kantar Worldwide Research 2010

£2,209£2,263

£2,342

2010 2011 2012

Total Low Calorie Market (£m)

© Kantar Worldpanel

27.1 30.1 30.7 38.0 38.7

25.7

41.5

14.7 15.0 15.5

14.8 15.3

13.6

15.0 15.0

16.4 15.4

13.7 11.4

25.8

7.3 11.0

11.8 12.3 12.0 13.4 14.1 12.9 5.5

7.2 7.6 7.9 8.4

14.3

9.3

4.4

4.8 3.9 3.9 4.1

4.0

4.0

5.2

6.3 6.0 5.5

0.0 5.8

3.1

1.6 1.3 0.9 1.6 0.8

15.9 6.1 6.6

Total Grocery Total HardCheese

Total HardCheddar

Total HealthierCheese (Hard)

Total HealthyCheddar (Hard)

Half FT/Lessthan HF Chedr

Reduced FatChedr

All Others

Total Marks & Spencer

Total Independents & Symbols

Total Hard Discounters

Total Waitrose

The Co-Operative

Total Morrisons

Total Sainsbury's

Total Asda

Total Tesco

RETAILER VALUE SHARES VS TOTAL GROCERY (52 w/e) Tesco over-trades in each analysed sector when compared to Total Grocery, especially

Healthier Cheese. Both Sainsbury’s and Morrisons over-trade in Half Fat/less Than Half Fat

Cheddar vs. Total Healthy Cheddar.

Kantar Worldpanel, 52 w/e 12 May 2013

£1.8 Bill +2% £1.5 Bill +2.3% £152.3 Mill +13% £101.7 Bill +3.7% £100 Mill +24% £26.1 Mill -0.8% £126.1 Mill +14.9%

Foodservice Meal Makers Workplace &

Education Caterers FSR / QSR

Export

‘I’m on a diet so this is great for me‘

‘It’s a good way for my

family to eat more

healthily

‘

‘It’s got a great strong flavour, really

tasty

‘It’s the tastiest of

all the low fat

cheese I have

tried’

‘

‘We’ve been talking about this at slimming world

so I’m glad I’ve found it’

Research shows that Cheeky Cow is a great product that meets consumer needs

Sources; Bridgethorne Shopper Research, October 2013

‘

‘It’s incredible, it tastes like normal

cheese’

‘I wouldn’t have guessed it is half

fat’

‘I can’t believe it is half the fat’

‘the pack is colourful, it stands out’

‘the pack is very bright and eyecatching’

‘my kids love it’

‘it’s a name which makes you smile’

‘the name caught my attention’

‘it’s a really good

name’

‘the name is memorable, it’s a bit

different to all the other brands’

Introducing Cheeky Cow…..

• Half Fat Mature Cheddar style Cheese

• Hand made in Somerset using West Country milk

• Award Winning Cricketer Farm expertise

• Versatile cheese with no compromise on flavour

• Broad Consumer Appeal

Summer 2013 launch – 250g & 350g - Spar / Appleby Westward - Tesco - West Country sores x 60 - TGT mainstream - The Cheddar Challenge!

Focused Plan to support the launch of Cheeky Cow

Merchandising

In Store Sampling & Coupons

Range & Promotional Tactics

Support Calendar A

war

ene

ss (

& T

rial

) In

Sto

re

(Tri

al &

R

epea

t

Jan / Feb Mar / Apr May / Jun Jul / Aug Sep / Oct Nov / Dec

• DOH Responsibility Deal

• Change 4 Life

• Red Tractor

• Craft Guild of Chefs

• Send a Cow

• Somerset Cricket

• Grocer

• Local Foodies

• Getting a social life!

Winning friends & influencing people

Send a Cow

The Change For Life 2014 Campaign

Fast start to 2014 …..

• Launch 350g in Asda regional stores x 22

• Lidl national spot buys x 2

• Launch of NPD in May

– (Lazy) Grated

– (Little) Sticks

– Trial Pack

• Compass launch of ‘Eatwell Cheese’

- Rates of sale growing - Challenging to meet national buyers

0

2,000

4,000

6,000

8,000

10,000

12,000

Wk 9 - 12 Wk 13 - 16 Wk 17 -20 Wk 21- 24 Wk 25 - 28 Wk 29 - 32

Sales_Value_TY

Cheeky Cow responds strongly to in store sampling. National distribution represents an opportunity of £2.5m

In store sampling & £1 vouchers

Sources; Tesco Link

The Cheeky Cow national opportunity is worth £2.5m based on current performance and support programme

Regional Launch

Pre-sampling

Post Sampling No Promotion

Opportunity based on listing in 852 Extras and Supermarkets

• March – PACE, Birmingham

• March - Family Food Appreciation Workshops

• May - Tour of Wessex

• May - Devon County Show

• June - Bath & West Show

• June – Somerset Cheese School

• June - Somerset Cheese, Cider & Moozic Fest’

• July – Nantwich Show

• Aug - Somerset Cricket vs Glamorgan

• Aug - Car Fest South

• Aug - Red Tractor – Big Feastival

• Oct – Compass ‘Wellbeing’ roadshows

• In store sampling – Tesco & Asda (over 60 stores)

On the road 2014 ..

Acting like a big brand..

We have stayed on a farm in North Devon where your tanker regularly collected their milk, which leads me to ask

where would I be able to purchase your cheeses and how would I be able to recognise them?

We live in East Hampshire. Are we too far away? Kindest regards,

Barry Lake.

Hi I recently purchased some cheeky cow half fat mature cheddar and I must

compliment you on your product - it was fantastic - I'm a member of weight watchers and on their filling and healthy programme you're allowed low fat cheese

so I've tried them all and until I tried cheeky cow I truthfully would rather have gone without !

My problem is I purchased it in my local lidl ( they must have had it on special offer) but it's not one of their regular product lines ( sadly) I live in The Giffnock area of

Glasgow G46 so I do have a large choice of supermarkets close to hand. I'd be very grateful if you could tell me which supermarket stocks this product close

to me. Regards

Lorraine Wilson

Dear sir ,we live in skegness and recentley purchased cheeky cow from lidl,we loved it .since then its been unavailable.we have tried in tesco but cant get it there

either.can you advise us where the nearest stockest is. Many thanks Peter Wathall.

Hi

Just wondering were I can purchase your cheese from in the north east of England. Hartlepool to be precise.

Thanks Andy

Hi Greg, We have recently had (and thoroughly enjoyed) your Cheeky Cow cheese. It was

purchased at our local branch of Lidl but they don’t seem to have any more. Could you please advise me if you know of any outlets in our local area? We live in

Portsmouth Hampshire but we are not absolutely confined to that locality! Many thanks.

Regards

Mike Moss

I purchased half fat mature cheddar last week in Lidl and it was absolutely delish and you wouldn't know it was half fat. Well done. However when I went back to Lidl

they told me it was one of their specials and now sold out and not getting anymore in. Any where else that I can buy it in my area Renfrewshire/Inverclyde.

Thanks

Sheila McDougall

Virginia Ratcliffe Cheeky Cow Cheese

Bought your cheese in lidl last week - was expecting the usual

disappointment with a half fat cheddar but was amazed that it was so

good. Went to buy more today but seems to be sold out. I do hope

you will supply again to lidl. They have their own "lighter" cheese

which I buy regularly but yours better and lower in fat. Well done!

Ps live in Scotland so no other local supplier

and thinking national ..

Scottish Slimmer's Members Questionnaire - Part One 1. Do you currently buy Full Fat Cheddar Cheese of any brand? • Never 20% • Less than once a month 36% • Once or twice a month 32% • Every week 12% 2. Do you currently buy Half Fat (50%) or Reduced Fat Cheddar Cheese (30%) of any brand? • Never 12% • Occasionally > a month 24% • Once or twice a month 40% • Every week 24% Part Two – to be completed once you have tried the half fat cheddar cheese 3. How do you rate the Cheeky Cow half fat cheddar cheese overall? • Excellent 45% • Good 44% • Average 8% • Just okay 3% • Not good at all 0% 4. How do you rate the texture of the Cheeky Cow half fat cheddar cheese? • Excellent texture 28% • Good texture 64% • Just okay 8% • Did not like the texture at all 0% 5. What did you think of the taste and flavour of the Cheeky Cow half fat cheddar cheese? • Excellent – very tasty 54% • Good – quite tasty 36% • Okay – no great taste to it 10% • Poor – tasteless 0% • I did not like the taste at all 0% 6. How do you feel the Cheeky Cow Half Fat Cheese compares with other reduced fat cheddar currently available in shops? • It is better than others 48% • It is as good as others 40% • It is about the same as others 11% • Not quite as good as others 1% • Very poor in comparison to others 0%

• 33,000 members

• 5x Focus Groups – Dec 2013

45%

44%

8% 3% 0% Excellent

Good

Average

36%

12% 24%

20%

8% Asda

Sainsbury

Morrison

Tesco

Aldi

7. Do you like the Cheeky Cow Brand? • Yes 100% • No 0% 8. Does the packaging provide reassurance that Cheeky Cow is a half fat cheese? • Yes 80% • No 20% 9. If you could buy Cheeky Cow Half Fat Brand in supermarkets how likely would you be to purchase it? • would definitely buy it 60% • would buy it regularly 12% • would buy it only occasionally 25% • would not buy it at all 3% 10. If you grilled or cooked with the Cheeky Cow Cheese, please tick any of the following you found to be true: The cheese grilled and melted well 68% The cheese was okay grilled/melted 32% The cheese did not grill/melt well 0% 11. Would you use this low fat cheese when cooking or grilling in the future? Yes 75% Maybe 25% No 0%

Comments listed separately Do you like the Cheeky Cow Brand comments: • Tastes just as good as cheddar • Colourful • The taste • A bit similar to Cheeky Cow ice cream • Like the tanginess • Easy name to remember • Think it’s brilliant • Funny – in a nice way Additional comments from the end of the questionnaire: • Very tasty, hope to see it my supermarket sometime soon • Grated this cheese on to hot soup and it melted like full fat cheese • My husband, a reduced fat hater, even enjoyed this cheese

48%

40%

11%

1%

0%

It isbetterthanothers

It is asgood asothers

60% 12%

24%

4% woulddefinitely buyit

would buy itregularly

would buy itonlyoccassionally

A Cheeky little step towards healthier eating!

Back to the retailers ..

The ‘Cheeky’ opportunity • Health issues continue to dominate the news.

– Fat / Saturated Fat

– Calories

– Salt

– Sugar

• Brands have driven the growth in reduced fat cheese market. – Healthy cheese market = £168m +9.8%

– Healthy cheddar = £142m +13.5%

– Branded market share = 45% (CC 26%) – no national brand in ½ Fat

• Healthier cheese for the whole family.

– If a family of 4 switched to ½ Cheeky Cow Cheese for a year …

• Reduce calories by 20,000Kcals

• Reduce total fat by 2.16kg

• Reduce saturated fat by 1.45kg

• Increase calcium & protein / satiety

Healthy Cheese overtrades with the family shopper, and appeals to the core mid market shopper, but opportunity to drive branded performance further

Sources; Dunhumby 52 w/e August 2013

Own Label Branded Branded Own Label

Key segment, families are key consumers of healthy cheese, opportunity for branded within young adults.

Clear over trade of Branded Healthy Cheese with mid market consumers, opportunity to appeal to more up market shoppers.

6.8

10.5

0

2

4

6

8

10

12

Value Growth %

Own Label Branded

Healthy Cheese, Tesco

© Kantar Worldpanel

26.8 29.1 29.9 34.4 35.6

26.6 36

14.5 15.2 15.8

20.4 21.6

19.3

22.6 15.1 16.5 15.6

15.1 13.1 31.6 10.2 10.8 11.3 11.6

8.1 8.8

12.9

8.3 5.4

6.5 6.9 6.1 6.4

7.8

6.4

4.5

5.5 4.5 3.7 3.8

0.8

4.2

3.2

4.1 4 5.2 3.7

0

4.6

2.7

3.7 3.5 2.8 2.9

0 3.4

1.2

0.6 0.7 0.4 0.4

0 0.5

3.1

1.5 1.2 0.9 0.9

0 0.9

12.7 6 6.4 3 2.6 1.1 2.9

0

20

40

60

80

100

120

25

• On the long term, Half fat and less Cheddars are strongly declining whereas Total Healthy Cheddar are growing.

Tesco, Asda and The Co-operative show overtrade in Healthy Cheese and

particularly in Healthy Cheddar.

Kantar Worldpanel, 52w/e 20 July 2014

£1.9Bill

+2.3%

£1.5Bill

+2.3%

£168m

+9.8%

£103.9 Bill

+3.4%

£21.4m

13.4%

£116.8m

+15.4%

£142m

+13.5%

Reduced Fat

Cheddar

Half Fat and

less cheddar

Healthier

Cheddar

Healthier Cheese Hard Cheddar Hard Cheese Total Grocery

Tesco

Asda

Sainsbury's

Morrisons

The Co-Operative

Waitrose

Aldi

Lidl

Independant & Symbols

Marks & Spencer

All others

• Consumer driven practical and stimulating product range. – Everyday / Convenience

– Speciality / Healthy indulgence

– Beyond cheddar / beyond cheese / beyond dairy

• Marketing support. – BTL - comprehensive / bespoke promotional plan

– ATL – national consumer press / C4L TV advertising support - Jan 15

– Direct - in store sampling / shows & events (£150k to date)

– Social media strategy (14,000 on database)

• Embracing DOH agenda / Partnerships. – Change 4 life campaign

– Slimming World / Scottish Slimmer's (eat cheese again!)

• Promote our brand ethics and heritage. – British brand, collecting milk daily milk from West Country and paying farmers a fair and sustainable price

– Close relationship with farmers and supporters of agriculture through extensive work with Red Tractor, Send a Cow and Bridgwater College

– Cheese makers since the 1940’s and experts in healthier cheese.

A Fun Brand with Serious Ambition

Cheeky brand credentials

A new look for 2015

• Fine tuned design for

mainstream

• Stealth launch of

reduced salt (USP)

• Special NOT specialist

(Innocent / Yeo Valley)

• Significant launch

campaign for Jan 15

– ‘Boiler over’ local

– National ‘Hit Squad’

– ‘Omni-Social Media’

activity

What’s in store for Cheeky Cow in the future

New Formats

Seasonal Editions

Flavoured Varieties

New Dairy Categories

Snacking

Cheese

Biscuits

Trial

Packs

Thank You!