Louise Vacher, Consulting Director, YouGov

Understanding the FreeFrom consumer

15-minute online survey conducted among YouGov

panellists.

Fieldwork was undertaken in August 2015.

Research was conducted among a nationally representative sample of 1328 UK adults.

A boost was included to ensure we had robust numbers for key consumer groups including:

- Wheat/Gluten intolerant or allergic

- Dairy intolerant or allergic

- ‘Free from’ buyers

- Parents with children with food intolerances/allergies

Methodology

Understanding the potential market

Our research has highlighted two key audiences for FreeFrom foods.....

4

Those with a food allergy or intolerance and coeliacs (or living with a sufferer)

Those choosing to cut down gluten, dairy or other foods

A quarter of UK households are affected by food sensitivities

5

Nearly 1 in 5 (17%) of the UK population

consider themselves to have a food allergy or intolerance

6% have a

food allergy

12% have a

food intolerance

Base: Total natrep sample (1328) S1. Do you suffer from any food allergies or intolerances? Please select all that apply. householdQ2. And which, if any, of these people in your household have a food allergy or intolerance? Please select all that apply.

A quarter of UK

households include at least one allergy or intolerance sufferer

1% are coeliac

76% of sensitivities are suspected rather than diagnosed

10% of the population are cutting down gluten, while a further 8% would like to

6

Completely avoid it Prefer to eat foods without it

Try to limit amount

Would like to cut down

Have previously cut down, but don’t any more

Not trying to cut down

Don’t know what this is

8%

2%

6%

4%

63%

14%

2%

10% of the population are

cutting down on gluten

14% of parents are cutting down the amount of

gluten they give their kids

Base: Total natrep sample (1328) / Parents (402) Q3B_1. Thinking about the following types of ingredients, which of these statements best describes your own eating habits? Q3_child_1. Thinking about the following types of ingredients, which of these statements best describes the foods you buy or prepare for your child(ren)?

And 1 in 5 are cutting down dairy or would like to

7

Completely avoid it Prefer to eat foods without it

Try to limit amount

Would like to cut down

Have previously cut down, but don’t any more Not trying to cut

down

Don’t know what this is

7%

3%

7%

4% 65%

11%

2%

13% of the population are

cutting down on dairy/lactose

15% of parents are cutting down the amount of

dairy/lactose they give their kids

Base: Total natrep sample (1328) / Parents (402) Q3B_2. Thinking about the following types of ingredients, which of these statements best describes your own eating habits? Q3_child_2. Thinking about the following types of ingredients, which of these statements best describes the foods you buy or prepare for your child(ren)?

30%

4%

66%

Sensitivity to gluten

Most of those looking to cut down gluten/dairy do not have a sensitivity

8

Child has sensitivity to gluten

No sensitivity to gluten

Those cutting down on gluten

Base: Cutting down on gluten / dairy or lactose (138 / 166)

25% 6%

69%

Child has sensitivity to dairy

No sensitivity to dairy

Those cutting down on dairy

Sensitivity to dairy

2/3 of those cutting out gluten

do not have a sensitivity to it

>7 in 10 of those cutting out dairy/lactose

do not have a sensitivity to it

This all adds up to…..

9

13% of adults either have a

dairy/lactose sensitivity or are trying to cut down on dairy

An additional 6% would like to reduce

the amount of dairy they eat

13% of adults either have a gluten

sensitivity or are trying to cut down on gluten

An additional 7% would like to reduce

the amount of gluten they eat

Perceived health benefits are a key reason for cutting down gluten consumption…

10 Base: Cutting down on gluten but don’t have gluten sensitivity (231) / Limiting amount given to children (45) Q4. Why are you cutting out or down the amount of gluten you eat? / Q4_child. Why are you cutting out or down the amount of gluten you give your child(ren)?

Generally healthier/better for you

Make me/my child feel less tired

Tried cutting down and seen benefits

To help me/others lose weight

Someone I know had good experience

Unnecessary ingredient

Recommendations from a health professional

Recommendations from friends/family

It helps my/child’s mood

Thought I/child/someone else may be intolerant

Better for environment/ethical

35%

24%

23%

15%

13%

12%

10%

8%

7%

6%

5%

38%

12%

8%

6%

20%

6%

9%

11%

14%

12%

Adults

Parents

Reasons for cutting down gluten

11 Base: Cutting down on dairy/lactose but don’t have dairy/lactose sensitivity (251) / Limiting amount given to children (41) Q4_dairy. Why are you cutting out or down the amount of dairy/lactose you eat? / Q4_child_dairy. Why are you cutting out or down the amount of dairy/lactose you give your child(ren)?

30%

26%

22%

9%

8%

7%

6%

6%

5%

3%

4%

27%

11%

10%

8%

9%

1%

22%

0%

0

14%

11%

Adults

Parents

Generally healthier/better for you

To help me/others lose weight

Tried cutting down and feel better

Better for environment/ethical

Make me/my child feel less tired

Recommendations from a health professional

Thought I/child/someone else may be intolerant

Prefer the taste of dairy free products

Unnecessary ingredient

It helps my/child’s mood

Recommendations from friends/family

Reasons for cutting down dairy

… as they are for dairy

What do consumers see as the health benefits of cutting out gluten/dairy?

12 Base: Cutting down on gluten or dairy/lactose because it is unhealthy (92 / 83) Q5_healthy. You said you are trying to cut down on these ingredients, either for yourself or your children because it is generally healthier/better to do so. In which of these ways do you think it is healthier/better for you?

Less fattening

Lower in sugar

Lower in salt

Lower in fat

Bad for you

Less processed

No nutritional benefits

Less intensively farmed

33% 37%

24% 21%

21% 28%

21% 19%

17% 8%

17% 38%

12% 21%

11% 17%

FreeFrom foods

25%

16%

31%

28%

A quarter of those who are cutting down are not aware of FreeFrom foods

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Total population

Base: Total Nat Rep sample (1328) / Allergy/intolerance suffers (242) / Cutting down on gluten (245) / Cutting down on dairy (261) FF1. Before taking this survey, how aware, if at all, were you of ‘FreeFrom’ branded foods? FF3new_3. Which of the statements below best describes your attitude towards 'Free From' foods?

Awareness and purchasing of FreeFrom foods Bought

Aware, but not likely to buy in future

Unaware

Might buy in future

40%

23%

10%

27%

45%

17%

22%

16%

38%

23%

13%

26%

Allergy/ intolerance

sufferers

Cutting down on

gluten

Cutting down on

dairy

Children’s products offer potential

15

… but 48% of parents agree there

are not enough allergy/intolerance products specially designed for

children

39% of parents buy specially

designed ‘FreeFrom’ products –

compared to 28% last year

Base: Parents of children with allergies in household (includes boost) (115) T1_Children. And which, if any, of the following describes how you tend to manage the child/children’s food allergies or intolerances? Please select all that apply. C1. You mentioned earlier that your child(ren) suffer(s) from a food allergy or intolerance. On a scale of 1 to 5, where 1 is strongly disagree and 5 is strongly agree, to what extent do you agree with the following statements about managing your child’s allergies

31% of parents have to send their

children to school with a packed lunch due to their

allergies/intolerances

Point of sale is the main route into discovering FreeFrom

16 Base: Aware of FreeFrom foods (964)

FFnew_1. How did you FIRST become aware of 'Free From' foods? Fnew_2. Where else have you heard or seen of 'Free From' foods?

57%

11%

4%

6%

4%

7%

1%

76%

23%

20%

19%

16%

20%

11%

4%

4%

I saw them in a supermarket (in store)

Someone I know told me about them

I saw them in a health food or specialist food shop

I read about them in an article

I saw them on a supermarket’s website

I saw them advertised

Saw them offered in restaurants/cafes etc

I heard/read about celebrities using them

Doctor/other health professional mentioned them

How heard of FreeFrom foods

Gluten Free products bought

17

Bread

59%

Base: Bought Gluten-free products (193) FFnew_8. Thinking about the gluten free foods you have bought from a grocery store, in which of these categories have you bought gluten free products?

Pasta

43%

Sweet bakery

38%

Cereals

21%

Flour

26%

Savoury biscuits

21%

Sweet biscuits

31%

Cereal bars

24% Other bakery

19%

Confectionery

13% Desserts

15%

Ready meals

12%

3.4 categories bought on average

Dairy/lactose free products bought

18

Milk

68%

Base: Bought Dairy/lactose-free products (142) FFnew_11. Thinking about the dairy/lactose 'Free From' ranges you have bought from a grocery store, which of these categories have you bought dairy/lactose free products?

Cheese

40% Yoghurt

35%

Spreads

29% Desserts

33%

2.8 categories bought on average

Bakery

30%

Confectionery

23%

Kids cheese products

7%

Cream

20%

Who is buying, or might buy, FreeFrom foods?

19 Base: Have bought FreeFrom foods (348) / Might buy in future (194)

31%

13%

56% No sufferers in household

Have an allergy/intolerance

Don’t have allergy/ intolerance but live with sufferer

Purchasers and considerers over-index on being female and 25-34

Have bought

10%

19%

71% Might buy in future

Those cutting down gluten and dairy represent good potential for FreeFrom

20

16%

16%

14%

16%

35%

30%

24%

17%

Buying fewer FreeFrom products than 6 months ago Buying more FreeFrom products than 6 months ago

Total population

Allergy/intolerance sufferers

Cutting down gluten

Cutting down dairy

Base: Have bought FreeFrom foods (348) / Allergy/intolerance sufferers who have bought FreeFrom foods (119) / Cutting down on gluten/dairy and have bought FreeFrom foods (111) / (104) FF1_B. And how, if at all, have your purchase habits changed over the last 6 months?

Tried cutting out/down and feel better

Saw products and thought they looked worth trying

Generally healthier/better for you

Recommendations from friends/family

Recommendations from health professional

To make me feel less tired

Someone in my h/hold has poor health /thought it might help

Someone I know has cut down and has felt better so I thought I’d give it a try

Someone else in my household is cutting it out

Other

Aside from medical need, consumers buy FreeFrom foods to give them a try or because they think they are healthier

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Reasons for buying FreeFrom foods

Base: Those with a sufferer in their household who have bought Free From foods (166) /Those without any sufferer in their household who have bought Free From foods (182) FF2_D. You said you have purchased 'Free From' products in the past. Which, if any, of the following explains why you purchase/(d) 'Free From' products? Please select all that apply.

18%

16%

14%

12%

9%

9%

6%

6%

9%

12%

Those with an allergy/intolerance sufferer in the household

Those without an allergy/ intolerance sufferer in the household

4%

17%

13%

4%

4%

3%

4%

8%

5%

24%

Mainly buying for visitors

A third overall buy due to a diagnosed or suspected sensitivity in the household

What is thought to be healthier about FreeFrom?

22 Base: Buy FreeFrom foods because think it’s healthier/better for you (47) FFnew_14. You said you buy 'Free From' foods because they are generally healthier/better for you. In which of these ways do you think it is healthier/better for you?

Gluten has no nutritional benefits 24%

Gluten is bad for you 22%

Dairy/lactose is bad for you 22%

Dairy/lactose has no nutritional benefits 12%

Gluten/dairy poor nutrition

Lower in fat 28%

Lower in sugar 25%

More vitamins/nutrients 10%

Higher in protein 9%

Lower in salt 8%

Nutritional benefits 51%

Less fattening 22%

Less fattening

54%

Less processed 39% Organic 14% Made from less intensively farmed crops/animals 13%

Less processed 52%

22%

Don’t need Avoid foods I’m intolerant of 33% Cook from scratch 22%

Cost 21%

Taste 13%

Range None for my allergy 14% Limited range 13% Not in my supermarket 10% Healthiness Concern about ingredients 3% Unhealthy 1%

Non-purchasers who have an allergy/ intolerance: reasons for not buying

How big a barrier are concerns about health?

23 Base: Have an allergy/intolerance sufferer in household but don’t buy FreeFrom foods (126) / Buying fewer FreeFrom foods than 6 months ago (55) FF2_F_2. You said you have a food allergy or intolerance but have never bought any Free From products. Why is this? Please select all that apply. / B1B. You said earlier you are buying fewer 'Free From' foods. Why is this?

Cost 30% Don’t need 23% Taste 10% It’s a fad 5% Healthiness Concern about ingredients 5% Fattening 5% Unhealthy 1%

Reasons for buying fewer FreeFrom foods than 6 months ago

“Healthy free from foods seem to be non existent. We are trying to heal our bodies, not load them with genetically modified chemicals and bathe them in sugar and trans fats”

8%

8%

16%

20%

28%

39%

34%

44%

64%

43%

42%

38%

30%

22%

19%

15%

14%

8%

Poor Excellent/Good

8%

7%

26%

10%

31%

48%

42%

29%

55%

47%

52%

36%

49%

23%

16%

19%

28%

9%

Cost, choice and availability are more of a concern than healthiness

24

Base: Have bought gluten free products (193) / dairy/lactose free products (142) FFnew_10_1. Thinking about the gluten/dairy/lactose 'Free From' ranges that are available across the categories you buy, how would you rate them on each of the following aspects?

Healthiness

Quality

Availability where I usually shop

Taste

Choice of different products

Availability of own label options

Choice of different brands

Value for money

Availability at convenience/smaller shops

Rating of gluten / dairy free products

While many appreciate FreeFrom costs more to produce, there is resistance to a price premium of more than 5%

25

More expensive

Cheaper

Haven’t noticed

59%

0%

38%

FreeFrom foods are….

53%

2%

30%

16%

More

Less

Same

Don’t know

Producing FreeFrom foods costs….

Reasonable to charge for FreeFrom….

1% 3% 15%

26%

40%

More than20% more

20% more 10% more 5% more No more

Base: All aware of FreeFrom foods (964) FFnew_5. Which of these best describes your view of the price of 'Free From' foods? / FFnew_6. Which of these best describes your view of the cost of producing 'Free From' foods for the manufacturer/producer? / FFnew_7. And which of these best describes your view of 'Free From' foods, even if you are not personally interested in buying them?

Considerations

26

There is a significant opportunity for FreeFrom – 1 in 5 of the population either have a sensitivity to gluten or dairy/lactose, are trying to cut down on their consumption or would like to

Lifestylers looking to cut down represent a source of likely growth

With most potential FreeFrom buyers not having a medical need, the perceived health benefits are a key inducement to buy

Many are introduced to the category by seeing them in-store and “giving them a try”

At present, only a minority have concerns about the nutritional profile of FreeFrom, with

cost, taste and availability more major barriers – but the category needs to work to enhance the health benefits to retain the “lifestyler” audience