Pulse Report Ambient Q2-2014

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    PULSE REPORT

    IRI Pulse Report Ambient

    Welcome to the Pulse Q2 2014 edition for ambient. We hope you find

    it useful. Please do not hesitate to contact us if you have any

    questions or comments at [email protected].

    Q2 2014

    IRIworldwide.eu

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    PULSE REPORT

    About the Report

    2

    This ambient report is one of 10 super-category reports designed to show a high-level

    comparison and analysis of retail markets across major countries in Europe.

    This report contains data gathered from around Europe. Categories include:

    The report highlights key metrics, such as total sales figures, market trends, category

    share, and 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 (UK).

    The market channels used for each country in this report are as follows:

    Country Channels used

    UK Hypermarkets, supermarkets, drugstores and impulse outlets

    ESHypermarkets, supermarkets, hard discounters and drug stores,including the Canary Islands

    DE Hypermarkets, supermarkets, hard discounters and drugstores

    NL Hypermarkets, supermarkets, hard discounters and drugstores

    ITHypermarkets, supermarkets, small self-service, hard discounters anddrugstores

    FR Hypermarkets and supermarkets

    For analytical purposes, the data sourced from available retail databases has been

    consolidated to provide consistent results. However, for some countries, it has not been

    possible to source data pertaining to certain categories. When this is the case, it is

    documented in theNotes section found at the end of the report.

    Shelf stablevegetables

    Shelf stable fruits

    Shelf stable meat

    Shelf stable fish

    Sweet and savourybiscuits

    Crisps and snacks

    Long life milk anddairy products

    Bread/baked products

    Baking ingredients

    Sweet spreads andsauces

    Savoury spreads

    Dry soups

    Wet soups

    Rice

    Pasta and noodles

    Shelf stable ready-

    meals Shelf-stable desserts

    Sugars andsweeteners

    Seasonings

    Condiments

    Sauces/mixes

    Oil/vinegar

    Dried fruits

    Dried beans andvegetables

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    PULSE REPORT

    On the Radar

    3

    ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOR

    Source: Eurostat, September 2013

    We see early signs of economicrecovery in many Europeancountries, though consumers remainprice sensitive in ambient categories.Private label and promotional activity

    are major growth drivers.Convenience continues to emerge asa cross-country trend.

    POPULATION INMILLIONS

    UNEMPLOYMENT(%)

    AVERAGE 12MONTHS

    INFLATIONRATES GDP IN MILLIONS ()

    Jan.2012

    Jan.2013

    Sep.2013

    Average2012

    Sep.2013

    Average2012 2012

    2013(Estimate)

    France 65.3 65.6 11.1 10.2 +1.2 +2.5 2 032 297 2 059 358

    Germany 80.3 80.5 5.2 5.5 +1.8 +2.4 2 644 200 2 694 499

    Italy 59.3 59.6 12.5 10.7 +1.8 +3.5 1 565 916 1 568 388

    Netherlands 16.7 16.8 7.0 5.3 +3.1 +2.8 600 638 604 459

    Spain 46.8 46.7 26.6 25.0 +2.3 +2.3 1 049 525 1 051 076

    UnitedKingdom

    63.4 63.8 7.5 7.9 +2.7 +3.7 1 901 001 1 854 920

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    PULSE REPORT

    5 419 5 174 5 052 5 498 5 276 5 033

    3 167 3 254 3 188 3 311 3 215 3 148

    1 183 1 154 1 0821 188 1 159 1 129

    4 690 4 510 4 4474 979

    4 529 4 557

    6 224 5 909 5 765

    6 4496 238 6 044

    4 5744 537 4 506

    4 6444 613 4 576

    0

    5,000

    10,000

    15,000

    20,000

    25,000

    30,000

    31-mar-13 30-jun-13 29-sep-13 29-dic-13 30-mar-14 29-jun-14

    Euros,

    inMillions

    Period Ending

    France

    Germany

    Italy

    Netherlands

    Spain

    UK

    GLOBAL TRENDS

    4

    TOTAL EUROPE +0.4%

    -0.1%

    +1.4%

    -1.1%

    VALUE SALES IN MILLIONS ()

    Total EU 99 625

    DE 24 496

    UK 20 859

    IT 18 512

    FR 18 339

    ES 12 861

    NL 4 558

    TOTAL AMBIENT VALUE SALES AND % CHANGE VERSUS PRIOR YEAR

    *based on an exchange rate of1.150 to the pound

    +0.7%

    +1.4%

    -1.6%

    TOTAL AMBIENT VALUE SALES FOR THE LAST SIX QUARTERS

    Source: IRI retail databases; period ending 29 June 2014

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    PULSE REPORT

    Europe

    5

    14 324

    12 286

    8 5478 051

    6 855

    5 4264 842

    3 949 3 856 3 775

    0

    2,000

    4,000

    6,000

    8,000

    10,000

    12,000

    14,000

    16,000

    Bread/Baked Products Crisps and Snacks

    Sweet and Savoury Biscuits Long Life Milk & Dairy Products

    Shelf Stable Vegetables Shelf Stable Fish

    Oil/Vinegar Cereals

    Sweet Spreads and Sauces Pasta and Noodles

    Euros,

    inmillions

    CATEGORY VALUE SALES IN THE LAST YEAR

    Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom

    Source: IRI retail databases; period ending 29 June 2014

    KEY TRENDS

    Ambient category growth across Europe is

    stable, at +0.4% in the second quarter.

    Growth was mainly driven by the French

    and German economies. The UK ambient

    sector was under pressure during the last

    period.

    Overall growth was mainly due to

    increased promotional efforts, as prices

    were stable in most countries.

    The economic outlook will continue to

    support solid performance of ambient

    categories, though price sensitivity willmean growth will continue to be focused

    around private label and discounters.

    Drive-by or pick-up-point concepts are

    emerging in many countries, indicating a

    cross-country trend towards convenience,

    in line with the early signs of economic

    recovery that we see.

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Bread/Baked Products 14.4%

    Crisps and Snacks 12.3%

    Sweet and Savoury Biscuits 8.6%

    Long Life Milk & Dairy Products 8.1%

    Shelf Stable Vegetables 6.9%

    Shelf Stable Fish 5.4%

    Oil/Vinegar 4.9%

    Cereals 4.0%

    Pasta and Noodles 3.8%

    Sauces/Mixes 3.6%

    Sweet Spreads and Sauces 3.9%

    Baking Ingredients 3.5%

    Shelf Stable Ready Meals 2.5%

    Condiments 2.7%

    Seasoning 2.3%

    Wet Soups 2.3%

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    PULSE REPORT

    CATEGORY INSIGHTS

    Crisps and snacks continues to be the

    fastest growing ambient segment, as it has

    been for successive quarters. France, the

    UK and Spain are the main contributors to

    the growth of crisps and snacks. This

    segment was also the biggest winner in

    the Netherlands.

    The decline in pasta and noodles is partly

    driven by Italy, where consumption

    behaviour is changing towards even more

    convenient and quick meal alternatives.

    Bread and baked products are underpressure, partly due to changes in

    consumption behaviour, but also due to

    consumers switching towards alternative

    channels.

    Long life milk has grown mainly through

    consumer price increases, as a result of

    both increased raw material costs and

    increased export demand.

    Europe

    6

    Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom

    Source: IRI retail databases; period ending 29 June 2014

    TOP LOSERS: VALUE SALES

    CHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALES

    CHANGE VERSUS A YEAR AGO ()

    404.9

    346.9

    161.5

    134.9

    55.8

    0 100 200 300 400 500

    Crisps and Snacks

    Long Life Milk & Dairy

    Products

    Shelf Stable Fish

    Oil/Vinegar

    Dried Fruits

    - 59.5

    - 96.3

    - 122.1

    - 134.1

    - 123.1

    -150 -100 -50 0

    Shelf Stable

    Fruit

    Shelf Stable

    Vegetables

    Bread/Baked

    Products

    Pasta andNoodles

    Wet Soups

    .Euros, in millions Euros in millions

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

    6 855

    14 324

    8 547

    12 286

    8 051

    3,4 4,50,6-0,8 -1,4

    Bread/Baked

    Products

    Crispsand

    Snacks

    Sweetand

    Savoury

    Biscuits

    Long

    Life

    Milk

    &

    Dairy

    Products

    ShelfStable

    Vegetables

    Euros,

    inmillions

    Total Sales % vs. YA

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    PULSE REPORT

    KEY TRENDS

    A relatively good performance for fast moving

    consumer goods (FMCG) and ambient in the

    first semester (FMCG + 1.9% in units versus

    the first semester of 2013, with ambient at

    +1.2%).

    Positive effects of the warm temperatures

    supported growth of a number of ambient

    categories, including oil/vinegar, cold sauces,

    and shelf stable fish.

    Ambient turnover growth (+1.2% in the first

    semester) is impacted by significant deflation

    (-2.3% for sugared grocery, versus -1.0%

    total FMCG).

    Promotional activity has increased for ambient

    (+1.1 point of promotional turnover), mainly

    for the big brands.

    Private label ambient solutions are suffering,

    losing 0.3 points of their market share, mainly

    due to a lack of change in the assortment.

    Pick-up points continue to gain market share

    (3.6% of ambient units sold today, up 0.8

    points versus a year ago), whilst harddiscounters are losing share (-6.5% for the

    first semester).

    CATEGORY VALUE SALES IN THE LAST YEAR

    France

    7

    Source: IRI retail databases; period ending 29 June 2014

    2 560

    2 057

    1 6431 508

    1 282

    959 908818 813

    735

    0

    500

    1.000

    1.500

    2.000

    2.500

    3.000

    Bread/Baked Products Long Life Milk & Dairy Products

    Sweet and Savoury Biscuits Crisps and Snacks

    Shelf Stable Vegetables Baking Ingredients

    Shelf Stable Fish Oil/Vinegar

    Sweet Spreads and Sauces Pasta and Noodles

    Euros,

    inmillions

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Bread/Baked Products 14.0%

    Long Life Milk & Dairy Products 11.2%

    Sweet and Savoury Biscuits 9.0%

    Crisps and Snacks 8.2%

    Shelf Stable Vegetables 7.0%

    Baking Ingredients 5.2%

    Shelf Stable Fish 5.0%

    Oil/Vinegar 4.5%

    Sweet Spreads and Sauces 4.4%

    Pasta and Noodles 4.0%

    Shelf Stable Ready Meals 3.9%

    Sauces/Mixes 3.5%

    Cereals 3.2%

    Shelf Stable Fruit 3.2%

    Sugar and Sweeteners 2.6%

    Condiments 2.5%

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    PULSE REPORT

    1 2821 508

    2 057

    1 643

    2 560

    0,71,5 1,16,30.5

    Bread/Baked

    Products

    Long

    Life

    Milk

    &

    Dairy

    Products

    Sweetand

    Savoury

    Biscuits

    Crispsand

    Snacks

    ShelfStable

    Vegetables

    Euros,inmillions

    Total Sales % vs. YA

    France

    8

    Source: IRI retail databases; period ending 29 June 2014

    CATEGORY INSIGHTS

    Good weather supported growth across a

    number of ambient categories, including:

    vinegar (+9.0%), oil (+4.8%), shelf stable

    fish (+4.8%) and crisps (+9.3%).

    In the breakfast segment, bread continues

    to grow, driven by the popularity of bread

    without crust and rustic breads. Breakfast

    biscuits show very good performance

    (+20.4%), whereas cereals continue to

    suffer (-0.6%).

    Prepared meals are positive this quarter,

    including canned pasta dishes,demonstrating strength since the

    horsegate affair.

    TOP LOSERS: VALUE SALES

    CHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALES

    CHANGE VERSUS A YEAR AGO ()

    22.7

    38.7

    50.1

    56.6

    89.2

    0 20 40 60 80 100

    Crisps and

    Snacks

    Shelf Stable

    Fish

    Oil/Vinegar

    Bread/BakedProducts

    Sauces/Mixes

    - 9.3

    - 24.7

    - 11.7

    - 10.5

    - 23.7

    -30 -25 -20 -15 -10 -5 0

    Sweet Spreads and

    Sauces

    Cereals

    Dry Soups

    Wet Soups

    Shelf Stable Ready Meals

    .Euros, in millionsEuos, in millions

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

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    PULSE REPORT

    KEY TRENDS

    Price increases helped ambient post positive

    growth (+1.4% in value), despite a slight

    decline of around -2% in volume sales.

    Value growth in ambient was boosted by

    promotion growth; however, non-promotion-

    based sales also registered decent growth.

    Private labels showed growth, while national

    brands experienced slight value decline. In

    volume, both private label and national brands

    registered decline.

    Private labels contribute about 43% of the

    ambient market by value, and private labelvalue share of ambient increased by 1.0 point.

    Ambient showed positive development across all

    channels except supermarkets; hypermarkets

    (1500-2499 square meters) had the strongest

    growth.

    Long life milk and dairy products showed strong

    growth, most of which came from the sales in

    UHT milk. UHT milk price increases are

    stemming from increased raw materials pricing,

    as well as growing international demand for UHTmilk, especially in Asia.

    Germany

    9

    Source: IRI retail databases; period ending 29 June 2014

    CATEGORY VALUE SALES IN THE LAST YEAR

    3 198

    2 814

    2 104

    1 7171 584

    1 381

    1 147 1 114 1 051 1 047

    0

    500

    1.000

    1.500

    2.000

    2.500

    3.000

    3.500

    Bread/Baked Products Crisps and Snacks

    Long Life Milk & Dairy Products Shelf Stable Vegetables

    Sweet and Savoury Biscuits Sweet Spreads and Sauces

    Condiments Seasoning

    Oil/Vinegar Baking Ingredients

    Euros,

    inmillions

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Bread/Baked Products 13.1%Crisps and Snacks 11.5%

    Long Life Milk & Dairy Products 8.6%

    Shelf Stable Vegetables 7.0%

    Sweet and Savoury Biscuits 6.5%

    Sweet Spreads and Sauces 5.6%

    Condiments 4.7%

    Seasoning 4.5%

    Oil/Vinegar 4.3%

    Baking Ingredients 4.3%

    Shelf Stable Fish 4.2%

    Sauces/Mixes 3.9%

    Wet Soups 3.4%

    Pasta and Noodles 3.4%

    Cereals 3.3%

    Sugar and Sweeteners 2.5%

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    PULSE REPORT

    1 584

    3 198

    2 104

    2 814

    1 717

    7.3 -1.414.3-1.3 -1.7

    Bread/Baked

    Products

    Crispsand

    Snacks

    Long

    Life

    Milk

    &

    Dairy

    Products

    ShelfStable

    Vegetables

    Sweetand

    Savoury

    Biscuits

    Euros,

    inmillions

    Total Sales % vs. YA

    Germany

    10

    TOP LOSERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    - 41.8

    - 34.3

    - 32.2

    - 27.6

    - 40.7

    -45 -35 -25 -15 -5 5

    Sweet and Savoury Biscuits

    Shelf Stable Fruit

    Wet Soups

    Sweet Spreads and Sauces

    Bread/Baked Products

    .

    21.8

    26.6

    28.1

    191.7

    263.0

    0 50 100 150 200 250 300

    Long Life Milk & Dairy

    Products

    Crisps and Snacks

    Shelf Stable Fish

    Oil/Vinegar

    Baking Ingredients

    Euros, in millions Euros, in millions

    CATEGORY INSIGHTS

    Around 84% of the growth for long life milk

    and dairy products came through the UHT

    milk sector, which saw double digit growth

    in all channels.

    Hard discounters contributed around 48% ofthe growth in UHT milk, driven by price

    increases at Aldis. Hypermarkets accounted

    for 38.0% of UHT milk growth.

    Nuts, seeds and raisins drove growth within

    crisps and snacks. Discounters contributed

    more than half of the value growth for that

    segment.

    Salty snacks growth was driven by the nuts

    sector, as well as the football world

    championship. Products with a particularconnection to Brazil/championship by flavor

    and/or packaging were particularly

    successful.

    A dip in sales in the bread sector drove a

    decline in the bread/baked products

    category. The majority of the value loss for

    the sector came from hard discounters, a

    channel with high focus on bake-off shelves

    (home baking ingredients).

    Source: IRI retail databases; period ending 29 June 2014

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

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    PULSE REPORT

    Italy

    11

    KEY TRENDS

    In Italy, ambient performance is in line with

    total FMCG sales, in terms of value growth(year-to-date -0.1%, versus an average

    FMCG decline of 0.2%).

    Italy is in a deflationary phase. In fact,

    prices were essentially flat in the first half of

    2014, marking a strong discontinuity versus

    to few months ago, when ambient showed

    high rates of inflation.

    Private label is showing momentum across

    all ambient sectors, with value growth of

    +3.0%. During the past few months,however, private label sales have slowed.

    Trade promotions are high, with promotion

    supporting approximately 28% of volume

    sale and up 2.8% versus previous year.

    Stepped up promotional activity may be

    attributable to retailers strategies to

    structurally lower price levels.

    Source: IRI retail databases; period ending 29 June 2014

    CATEGORY VALUE SALES IN THE LAST YEAR

    2 032 1 989

    1 656 1 625 1 6161 459 1 430 1 411

    844 804

    0

    500

    1.000

    1.500

    2.000

    2.500

    Bread/Baked Products Crisps and Snacks

    Long Life Milk & Dairy Products Pasta and Noodles

    Shelf Stable Vegetables Oil/Vinegar

    Sweet and Savoury Biscuits Shelf Stable Fish

    Baking Ingredients Sweet Spreads and Sauces

    Euros,

    inmillions

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Bread/Baked Products 11.0%

    Crisps and Snacks 10.7%

    Long Life Milk & Dairy Products 8.9%

    Pasta and Noodles 8.8%

    Shelf Stable Vegetables 8.7%

    Oil/Vinegar 7.9%

    Sweet and Savoury Biscuits 7.7%

    Shelf Stable Fish 7.6%

    Baking Ingredients 4.6%

    Sweet Spreads and Sauces 4.3%

    Dried Fruits 3.5%

    Sugar and Sweeteners 2.3%

    Cereals 2.1%

    Rice 1.8%

    Seasoning 1.8%

    Sauces/Mixes 1.4%

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    PULSE REPORT

    1 616

    2 032

    1 656

    1 989

    1 625

    -1.0 0.52.60.9 -1.6

    Bread/Baked

    Products

    Crispsand

    Snacks

    Long

    Life

    Milk

    &

    Dairy

    Products

    Pasta

    and

    Noodles

    ShelfStable

    Vegetables

    Eu

    ros,

    inmillions

    Total Sales % vs. YA

    Italy

    12

    TOP LOSERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    Source: IRI retail databases; period ending 29 June 2014

    - 91.6

    - 26.3

    - 25.9

    - 21.8

    - 30.4

    -100 -80 -60 -40 -20 0

    Sweet and Savoury Biscuits

    Cereals

    Shelf Stable Vegetables

    Sugar and Sweeteners

    Pasta and Noodles

    .

    20.6

    35.2

    41.3

    41.4

    43.6

    0 10 20 30 40 50

    Shelf Stable Fish

    Long Life Milk & Dairy

    Products

    Dried Fruits

    Sweet Spreads and Sauces

    Oil/Vinegar

    Euros, in millions Euros, in millions

    CATEGORY INSIGHTS

    Canned tuna and long life milk are top-growing

    ambient categories, with price increases

    contributing heavily to value growth increases.

    Pasta, canned vegetables and sugar saw the

    sharpest declines.

    Pasta declines are stemming from changing

    consumer rituals, including more frantic

    lifestyles, with few opportunities to enjoy a

    quiet meal at home, aesthetic models oriented

    towards a "constant diet" and increased

    assortment focused on "fast" preparation.

    Potato chips is one of the most dynamiccategories in the ambient sector (+11.9% year

    to date versus a year ago), benefitting from a

    growing trend around aperitifs and a shift from

    out of home to at home consumption.

    Private label is winning share in many ambient

    categories, particularly within commodity

    categories e.g. tuna, canned vegetables, dried

    fruit, long life milk. The ongoing economic crisis

    is driving shoppers into cheaper alternatives.

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

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    PULSE REPORT

    The Netherlands

    13

    KEY TRENDS

    In the Netherlands, the overall economy

    grew 0.5% in the second quarter versus

    the first quarter of 2014, showing

    moderate signs of economic recovery.

    The ambient sector has fallen 2.3% in

    value sales in supermarkets year-to-date

    versus the same period last year. By

    comparison, total supermarkets value sales

    are stable at -0.2% during the same time

    period.

    Prices are stable in most ambient

    categories. Promotional pressure remains steady in the

    second quarter, coming in at 17.6% of

    year-to-date value sales.

    Source: IRI retail databases; period ending 29 June 2014

    CATEGORY VALUE SALES IN THE LAST YEAR

    700665

    408367

    328 322 314

    169 160 152

    0

    100

    200

    300

    400

    500

    600

    700

    800

    Crisps and Snacks Sweet and Savoury Biscuits

    Sauces/Mixes Bread/Baked Products

    Shelf Stable Vegetables Long Life Milk & Dairy Products

    Sweet Spreads and Sauces Wet Soups

    Seasoning Shelf Stable Meat

    Euros,

    inmillions

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Crisps and Snacks 15.4%

    Sweet and Savoury Biscuits 14.6%

    Sauces/Mixes 8.9%

    Bread/Baked Products 8.1%

    Shelf Stable Vegetables 7.2%

    Long Life Milk & Dairy Products 7.1%

    Sweet Spreads and Sauces 6.9%

    Wet Soups 3.7%

    Seasoning 3.5%

    Shelf Stable Meat 3.3%

    Cereals 2.9%

    Pasta and Noodles 2.4%

    Shelf Stable Ready Meals 2.4%

    Oil/Vinegar 2.1%

    Baking Ingredients 1.7%

    Dry Soups 1.7%

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    PULSE REPORT

    The Netherlands

    14

    TOP LOSERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    Source: IRI retail databases; period ending 29 June 2014

    - 8.0

    - 10.5

    - 10.5

    - 19.7

    - 19.5

    -20 -15 -10 -5 0

    Shelf Stable Meat

    Bread/Baked Products

    Wet Soups

    Sweet Spreads and

    Sauces

    Sweet and Savoury

    Biscuits

    .

    3.3

    3.5

    3.8

    4.3

    5.1

    0 1 2 3 4 5 6

    Crisps and

    Snacks

    Shelf Stable

    Fish

    Seasoning

    Dried Fruits

    Oil/Vinegar

    .Euros, in millions Euros, in millions

    CATEGORY INSIGHTS

    Crisps and snacks managed to grow this

    quarter even though promotional pressure

    declined slightly. Value and volume growth

    is partly due to a high rate of innovation.

    The value growth of shelf stable fish is

    mainly due to increased promotional

    activity.

    Bread sales continue to show signs of

    distress, as overall bread consumption is

    under pressure in the Netherlands

    regardless of efforts by supermarkets to

    bring volumes back through in-storebakeries. This also partly explains the

    decline in sweet spreads (including peanut

    butter).

    Grocery pick-up points are becoming more

    commonplace in the Netherlands, and

    online grocery sales are on the rise due to

    due both increased supply and demand.

    328

    700

    408

    665

    367

    -2.9 -2.80.80.7 -2.3

    Crispsand

    Snacks

    Sweetand

    Savoury

    Biscuits

    Sauces/Mixes

    Bread/Baked

    Products

    ShelfStable

    Vegetables

    Millions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

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    Spain

    15

    KEY TRENDS

    In Spain, ambient sales are decreasing.

    Consumption declined and prices

    stagnated, even for private labels.

    Promotional activity started to rise across

    most ambient categories.

    Private label ambient started to lose

    market share.

    Source: IRI retail databases; period ending 29 June 2014

    CATEGORY VALUE SALES IN THE LAST YEAR

    1 792 1 753

    1 411 1 410

    1 250

    860 849

    482405

    341

    0

    200

    400

    600

    800

    1.000

    1.200

    1.400

    1.600

    1.800

    2.000

    Bread/Baked Products Long Life Milk & Dairy Products

    Shelf Stable Fish Crisps and Snacks

    Oil/Vinegar Sweet and Savoury Biscuits

    Shelf Stable Vegetables Condiments

    Shelf Stable Fruit Shelf Stable Desserts

    Euros,

    inmillions

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Bread/Baked Products 13.9%

    Long Life Milk & Dairy Products 13.6%

    Shelf Stable Fish 11.0%

    Crisps and Snacks 11.0%

    Oil/Vinegar 9.7%

    Sweet and Savoury Biscuits 6.7%

    Shelf Stable Vegetables 6.6%

    Condiments 3.7%

    Shelf Stable Fruit 3.1%

    Shelf Stable Desserts 2.7%

    Cereals 2.6%

    Sweet Spreads and Sauces 2.4%

    Wet Soups 2.0%

    Sugar and Sweeteners 1.8%

    Rice 1.7%

    Baking Ingredients 1.5%

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    Spain

    16

    TOP LOSERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    Source: IRI retail databases; period ending 29 June 2014

    - 5.3

    - 19.1

    - 9.1

    - 12.8

    - 19.6

    -25 -20 -15 -10 -5 0

    Shelf Stable

    Vegetables

    Sugar and

    Sweeteners

    Bread/Baked

    Products

    Cereals

    Shelf Stable

    Fruit

    .

    14.0

    29.2

    31.2

    32.6

    46.6

    0 10 20 30 40 50

    Crisps and Snacks

    Long Life Milk & Dairy

    Products

    Oil/Vinegar

    Shelf Stable Fish

    Shelf Stable Ready Meals

    Euros, in millions Euros, in millions

    CATEGORY INSIGHTS

    The increase in sales experienced by oil

    was the result of the escalating cost of raw

    materials.

    Volume sales of milk increased, driven by

    non-added-value milks.

    Price increases drove value sales growth

    across shelf stable fish. In this category,

    private label and branded sectors grew at

    a similar pace.

    1 250

    1 792

    1 411

    1 753

    1 410

    1.9 3.42.1-0.7 2.6

    Bread/Baked

    Products

    Long

    Life

    Milk

    &

    Dairy

    Products

    ShelfStable

    Fish

    Crispsand

    Snacks

    Oil/Vinegar

    Eu

    ros,

    inmillions

    Total Sales % vs. YA

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

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    The United Kingdom

    17

    KEY TRENDS

    Recent official data shows that the UKs

    economic recovery is stronger than

    expected and it is thought that the UK

    recession ended in the third quarter of

    2013. However, grocery prices are still a

    key concern for most shoppers, due to

    price increases and a decline in real

    average earnings.

    Inflation in June has been evident across

    most ambient food categories, particularly

    within wheat-based products, such as

    cereal and home baking. Falling prices

    across some private label categories (e.g.,

    beans and canned meat) will increasingly

    drive shoppers towards private label

    alternatives.

    Data was starting to show a gradual

    decline in the level of volume on deal over

    recent months, driven by food and drink.

    However this started to rise again,

    prompted by Easter activity.

    Source: IRI retail databases; period ending 29 June 2014

    CATEGORY VALUE SALES IN THE LAST YEAR

    4 375

    3 866

    2 365

    1 709

    1 3151 062 991

    644 585 538

    0

    500

    1.000

    1.500

    2.000

    2.500

    3.000

    3.500

    4.000

    4.500

    5.000

    Bread/Baked Products Crisps and Snacks Sweet and Savoury Biscuits

    Cereals Sauces/Mixes Shelf Stable Vegetables

    Shelf Stable Ready Meals Shelf Stable Desserts Shelf Stable Fish

    Wet Soups

    Euros,

    inmillions

    TOP 10

    SHARE OF VALUE IN THE YEAR

    Bread/Baked Products 21.0%

    Crisps and Snacks 18.5%

    Sweet and Savoury Biscuits 11.3%

    Cereals 8.2%

    Sauces/Mixes 6.3%

    Shelf Stable Vegetables 5.1%

    Shelf Stable Ready Meals 4.8%

    Shelf Stable Desserts 3.1%

    Shelf Stable Fish 2.8%

    Wet Soups 2.6%

    Rice 2.3%

    Baking Ingredients 1.8%

    Shelf Stable Meat 1.8%

    Condiments 1.8%

    Pasta and Noodles 1.6%

    Dried Fruits 1.3%

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    PULSE REPORT

    1 315

    4 375

    2 365

    3 866

    1 709

    2.4 -1.34.0-2.5-3.7

    Bread/Baked

    Products

    Crispsand

    Snacks

    Sweetand

    Savoury

    Biscuits

    Cereals

    Sauces/Mixes

    Millions

    Total Sales % vs. YA

    The United Kingdom

    18

    Source: IRI retail databases; period ending 29 June 2014

    TOP LOSERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    TOP WINNERS: VALUE SALESCHANGE VERSUS A YEAR AGO ()

    - 113.5

    - 50.1

    - 41.9

    - 39.8

    - 67.0

    -120 -100 -80 -60 -40 -20 0

    Shelf Stable

    Ready Meals

    Shelf Stable

    Vegetables

    Sauces/Mixes

    Wet Soups

    Bread/Baked

    Products

    .

    3,1

    5,5

    8,8

    90,7

    92,3

    0 20 40 60 80 100

    Crisps and Snacks

    Sweet and Savoury Biscuits

    Rice

    Condiments

    Oil/Vinegar

    Euros, in millions Euros, in millions

    CATEGORY INSIGHTS

    Ambient, frozen and chilled sectors are all

    seeing value and volume decline year-to-

    date, as shoppers continue to tighten their

    belts, buy less, and trade down. Ambientfood is performing ahead of frozen, but

    behind chilled.

    Value sales growth has been strongest

    across expandable treat categories, such as

    chocolate and biscuits. Value sales growth in

    wheat-based categories has been driven by

    inflation.

    Private label has gained share in many

    categories, particularly within canned goods

    and wheat-based categories, where inflation

    drove shoppers into cheaper alternatives.

    Significant innovations this year in ambient

    food include products which tap into trends

    of convenience (Kelloggs Special K Hot

    Cereals), new flavour influences (Heinz Black

    Label Wet Soup) and indulgence (Nestle

    Toffee Crisp Cereal).

    TOP 5 CATEGORIES: EVOLUTION

    Value sales () and % change versus a year ago

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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

    possible to align products across all six countries. Those exceptions are listed below:

    Shelf stable fruits

    The UK data in this report only includes mincemeat for this category.

    Sweet and savoury biscuits

    The UK data in this report only includes biscuits and does not include crackers or wafers forthis category.

    Bread/baked products

    The Netherlands data in this report only includes shelf-stable bread and no other baked

    goods.

    Sweet spreads and sauces

    The German and the Netherlands data in this report both include peanut butter and other nut

    spreads; the other countries do not.

    Savoury spreads

    The France data in this report does not include this category.

    Dry soups

    The Italy data in this report also includes some risotto and pasta products.

    Sugar and sweeteners

    The UK data in this report does not include sugar, whereas the other countries do.

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    Resources

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    FOR MORE INFORMATION

    Please contact Linsey Teuben, Business Insights Account Executive

    IRI at [email protected] or

    +31 6 22 908 427 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:

    IRI InfoScan Censusis a syndicated retail tracking service that enables manufacturers

    and retailers to acquire industry insights used to make better business decisions. IRI

    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 ambient comes from IRI 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.