Fruit Attraction - BIOFRUIT CONGRESS · Fruit Attraction Ed Griffiths Strategic Insight Director Kantar Worldpanel. 52 we 9 September 2018 The largest shopper panel in Great Britain

52 we 9 September 2018 1

Fruit Attraction

Ed Griffiths

Strategic Insight Director

Kantar Worldpanel

52 we 9 September 2018

The largest shopper panel in Great Britain

Geographically and demographically representative of the

population of GB

30,000Households in GB


Take Home purchases

scanned by palm pilot and

clicker technology

Data retrieved and collated

into databases on a

4 weekly cycle

Data converted into insight

How does Worldpanel work?


Produce Engagement General Retail Organics in the UK


The UK is more engaged with Produce than ever before

5

2014 2018


Its not just about how often we go either; shoppers are buying across a broader repertoire

6

2014 2018

46 different items in an

average repertoire

50 different items in an

average repertoire


Italian Food Exc. Pizza

1.6bn occ.

(--% YoY)

Sausage Meals

223m occ.

(-3% YoY)

Omelette

80m occ. (+6% YoY)

.

Lamb Chop

Meals

(-8%)

Baked potato

meal

186m occ

(-16% YOY)

Other

Internati

onal

Meals

55m occ.

(-14%

YoY)

Natural Fish Meals

183m occ.

(-4% YoY)

Fish Finger

Meals

203m occ.

(+8% YoY)

Frank/

Hot Dogs

101m

occ. (-2% YoY)

Burger

Meals

208m occ.

(-3% YoY)

.

Coated Chicken

Meals

164m occ. (+6% YoY)

Steak Meals

74m occ. (-11% YoY)

Toast Meals

157m occ.

(+11% YoY)

.

Pork Chop Meals

122m occ.

(+3% YoY)

Traditional/British Meals

1.2bn occ.

(-2% YoY)

Coated Fish

Meals

406m occ.

(+2% YoY)

.

Salad

359m occ.

(+7% YoY)

Mexican Food

387m occ. (-3% YoY)

Roast Dinners

867m occ.

(--11% YoY)

Pies/Pasties/Puds &

Sav Pastries

845m occ.

(-1% YoY)

Oriental Food

(incl. Thai)

645m occ.

(+2% YoY)

Chicken Portions

445m occ.

(-4% YoY)

Soup

308m occ.

(-4% YoY)

Indian Food

711m occ.

(-7% YoY)

Pizza

804m occ.

(+2% YoY)

Total Sandwiches

559m occ.

(--% YoY)

Decline more than -3%

Decline between -3 and 0%

Growth between 0 and 2%

Growth between 2 and 5%

Growth more than 5%

A more diverse dinner plate drives growth of repertoire but also highlights the challenges many

markets face as host dishes decline.


Health is a growing factor amongst consumers in the UK,

with 31% of all meal occasions being consumed for

reasons relating to health


With Produce a poster child for many

campaigns it’s no surprise that Produce sees

71% of all consumption occasions flagged

as for health


Health benefits

31%

More

natural/less

processed 15%

+405m servings

+288m servings


More demands means more opportunities to trade up consumers

1 Need 2 Needs 3 Needs 4 Needs

+9%

+16%

+24%Retail premium per serving

based on number of

reasons for choice


The premium paid for health has increased year on year




Produce in the UK

worth £11 Billion

Value

growth of

+2.7%

Volume

flat at -

0.1%

£6.57 more per household


Much like the Grocery Market, the Big 4 have seen contraction over the last 5 years

Aldi and Lidl have gained 7.2% share between them

15

Spen

d %

26,7 25,9 25,5 25,6 25,5

13,8 13,1 12,2 11,3 11,4

16,5 16 16 15,5 15,2

11 10,7 9,9 9,9 9,8

4,8 4,4 4,7 4,7 4,6

6,5 6,5 6,6 6,3 6,3

5,1 7,2 8,2 9 9,6

4,6 5,3 6,1 7 7,33,2 3,3 3,5 3,5 3,5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

52 w/e 14 Sep 14 52 w/e 13 Sep 15 52 w/e 11 Sep 16 52 w/e 10 Sep 17 52 w/e 09 Sep 18

Other

Marks & Spencer

Lidl

Aldi

Waitrose

The Co-Operative

Morrisons

Sainsbury's

Asda

Tesco


And in the latest year in a climate of price inflation, Lidl and Aldi reign supreme

Asda is the only Big 4 Retailer to experience an increase in share

16

Spen

d %

2,4

3,5

0,4

1,0

0,7

1,7

9,0

7,4

2,9

-1,1

Despite their growth,

Tesco and Lidl are the

only retailers to decrease

their amount of

promotions

25,6 25,5

11,3 11,4

15,5 15,2

9,9 9,8

4,7 4,66,3 6,3

9 9,6

7 7,33,5 3,5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

52 w/e 10 Sep 17 52 w/e 09 Sep 18

Other

Marks & Spencer

Lidl

Aldi

Waitrose

The Co-Operative

Morrisons

Sainsbury's

Asda

Tesco


While the discounters inevitably win on price…

Their prices are inflating at the fastest rate

17

1,75 1,581,93 1,63

2,112,46

1,45 1,59

3,12

Tesco Asda Sainsburys Morrisons Co-Op Waitrose Aldi Lidl M&S

Price per KG

3,7 3,0 3,0

-0,5

1,9

-0,5

5,17,3

4,0


Price % Change

52 we 9 September 2018 1852 we 09 September 2018

But prices creeping up doesn’t deter shoppers – Lidl and Aldi ahead on key metrics

They drive category engagement above and beyond what we might expect

7,0 7,2 6,8 6,8

3,0

5,8

9,07,4

4,7


Items per Trip

2317 18 18

10

1621

18

8


Size of Repertoire


A climate of price focus isn’t going anywhere

Tesco Jacks launching with a key focus on fresh, locally sourced Fruit and Vegetables




Organics over the last five years have seen considerable growth

21

£250 MillionOrganics reached £250m in the latest year, up 40% over

five years

£2.43 per KiloOrganics being sold at 40%

premium over standard Fruit

and Veg

7 TripsThe average consumer only buys Organics 7 times in an average year (109 Trips at a

Total Produce Level)

1 KG per TripAverage trips see 2.2KG per basket; Organics 1.2KG behind this benchmark

63%63% of the population bought Organic Fruit or Veg in the last

year

Who?Smaller, more affluent

households without Children


This growth has slowed dramatically however in the latest year with the market now in decline; Price

a clear driver for this.

22

-20.000

-10.000

0

10.000

20.000

30.000

40.000

50.000

Co

ntr

ibu

tio

n (

£0

00

)

Frequency Trip Volume (kg) Price per kg Penetration (%) GB HH Population Total Contribution (£000s)


Where are the Organic Occasions going?

23

£1.4M switched

from Organic to

Standard

Existing Organic

shoppers spent

£2M less

£1.7M from produce

shoppers continuing to

expand their Organic

Repertoire


The price war apparent even in the Organic market

Total Organic

-0.7% -£1.8M

Lidl Organic

+50% +£6.3M


How can we drive Organic Growth?

25

Consumers will

pay more for

health

Organic consumed more for

health compared to other

Produce Benchmarks


Create a reason at the fixture to buy Organic that justifies the price




Thank you

Ed Griffiths

Tel.: (UK) 02089 672027

[email protected]

For further information please contact:

Documents

Fruit Attraction - BIOFRUIT CONGRESS · Fruit Attraction Ed Griffiths Strategic Insight Director Kantar Worldpanel. 52 we 9 September 2018 The largest shopper panel in Great Britain