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Welcome to the Pulse Q1 2014 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 EU.Marketing@IRIworldwide.com.
Welcome to the Pulse Q1 2014 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 EU.Marketing@IRIworldwide.com.
Welcome to the Pulse Q1 2014 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 EU.Marketing@IRIworldwide.com.
Welcome to the Pulse Q1 2014 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 EU.Marketing@IRIworldwide.com.
Q1 2014
IRIworldwide.eu 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 shares, 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. The market channels used for each country in this report are as follows: Country Channels used UK Hypermarkets, supermarkets, drugstores and impulse outlets ES Hypermarkets, supermarkets, hard discounters and drugstores, including the Canary Islands DE Hypermarkets, supermarkets, hard discounters and drugstores NL Hypermarkets, supermarkets, hard discounters and drugstores IT Hypermarkets, supermarkets, small self service, hard discounters and drugstores 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 was not possible to source data pertaining to certain categories. When this occurred, it has been documented in the notes section found at the end of the report. PULSE REPORT On the Radar 3 ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOUR Source: Eurostat, September 2013 Since Q1 2014, a volume sales decline has impacted all European countries. Since this time period, value sales have been stable and this is a predictable finding as for the past 18 months we have noticed that value sales have experienced growth erosion.
POPULATION IN MILLIONS UNEMPLOYMENT (%) AVERAGE 12 MONTHS INFLATION RATES GDP IN MILLIONS () Jan. 2012 Jan. 2013 Sep. 2013 Average 2012 Sep. 2013 Average 2012 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 United Kingdom 63.4 63.8 7.5 7.9 +2.7 +3.7 1 901 001 1 854 920 PULSE REPORT 1,040 1,066 1,106 1,120 1,042 1,037 536 469 564 684 528 467 221 217 246 240 217 219 764 770 914 983 742 747 2,055 2,058 2,113 2,096 2,075 2,069 956 839 917 1,002 938 843 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 30-dic-12 31-mar-13 30-jun-13 29-sep-13 29-dic-13 30-mar-14 M i l l i o n s
Period Ending France Germany Italy Netherlands Spain UK GLOBAL TRENDS 4 TOTAL EUROPE -0.1% -3.2% +1.7% +0.2% VALUE SALES IN MILLIONS () Total EU 22 910 DE 8 353 UK 4 305* FR 3 700 IT 3 385 ES 2 243 NL 923 TOTAL FROZEN FOOD VALUE SALES AND % CHANGE VERSUS PRIOR YEAR *based on an exchange rate of 1.150 to the pound -1.9% +0.7% TOTAL FROZEN FOOD VALUE SALES FOR THE LAST SIX QUARTERS Source: IRI retail databases; period ending 30 March 2014 -0.4% PULSE REPORT 2 322 2 337 4 878 3 749 6 529 -0.9 -1.4 -3.6 5.8 2.1 F r o z e n R e a d y
M e a l s I c e
C r e a m F r o z e n
F i s h F r o z e n
M e a t F r o z e n V e g e t a b l e s M i l l i o n s Total Sales % vs. YA 16.4% 10.1% 7.8% 28.5% 0.0% 0.0% 1.6% 4.0% 21.3% 10.2% Frozen Ready Meals Ice Cream Frozen Fish Frozen Meat Frozen Vegetables Frozen Potato Products Frozen Desserts Frozen Dough & Bread Products All other Frozen Meats Frozen Poultry Europe 5 6 529 4 878 3 749 2 3372 322 1 791 926 367 6 4 E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus year ago Source: IRI retail databases; period ending 30 March 2014 KEY TRENDS After a consistent period of value growth, Europes frozen food sales in value terms are for the first time in decline quarter on quarter, going from +0.5% in Q4 last year to -0.1% in the first quarter of 2014. Sales in Germany and the United Kingdom are holding up well and still achieving value growth, although this has slowed somewhat. The value growth from these two countries was unable to make up for the losses elsewhere in Europe. Despite the lower levels of inflation, volumes were in decline across all the European countries. Sales of ice cream and meat performed well this quarter, whilst the likes of fish and vegetables combined with the ongoing long term negative trend of ready meals drove the overall poor value performance of the frozen food market this quarter. PULSE REPORT Europe 6 CATEGORY INSIGHTS Frozen meat outperformed the rest of the frozen food market with Germany responsible for 90% of the overall growth. Poultry and discounters drove two thirds of this growth as consumers switched to cheaper protein sources and shopping channels to manage their budgets. Ice cream: All countries, bar Italy and Spain, continued to benefit from the good weather over last summer and the recent relatively mild winter. Frozen potato is the only category where value growth was seen across all the European countries. The United Kingdom showed the highest level of value growth, although this is purely down to price inflation rather than increased consumption. Frozen ready meals continued to show a consistent decline quarter on quarter. Sales were impacted by the warmer temperatures along with shoppers continuing to switch to cheaper meal solutions or revert back to the basics of scratch cooking. The one exception to this was Germany, where ready meals saw value growth driven by a strong performance within discounters. Frozen fish sales continued to decline and again we saw an acceleration of this trend with sales this quarter going from -1.7% in Q3 last year to -3.6% in the latest quarter. This is the one category where we are seeing the same negative trend across all the European countries. Germany, Italy and the United Kingdom are the key drivers to this trend driven by a significant decline in promotional activity and consumers switching to cheaper meal options now that natural fish is now one of the most expensive protein sources. Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom Source: IRI retail databases; period ending 30 March 2014 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () 127.1 100.6 66.5 0.5 0 50 100 150 Frozen Meat Ice Cream Frozen Potato Products All other Frozen Meats Millions - 141.5 - 36.0 - 23.3 - 20.3 - 90.8 -150 -100 -50 0 Frozen Vegetables Frozen Dough & Bread Products Frozen Desserts Frozen Ready Meals Frozen Fish . Millions PULSE REPORT 17.7% 10.0% 9.1% 26.0% 0.3% 1.9% 22.8% 12.2% Frozen Ready Meals Ice Cream Frozen Fish Frozen Meat Frozen Vegetables Frozen Potato Products Frozen Desserts Frozen Dough & Bread Products 368 450 845 656 963 -1.0 -3.2 -3.7 2.8 4.1 F r o z e n R e a d y
M e a l s I c e
C r e a m F r o z e n
F i s h F r o z e n
M e a t F r o z e n V e g e t a b l e s M i l l i o n s Total Sales % vs. YA France 7 KEY TRENDS In the first quarter of 2014, value sales fell quarter on quarter with sales down -1.0% versus Q4 of last year. However, sales remained positive year on year at +0.5%. There are some encouraging signs including a slow down in the volume decline. In the latest quarter, volume was down -1.1% versus -2.5% at the end of 2013. Frozen foods was amongst the worst performing sectors within fast moving consumer goods (FMCG) in France. Inflation in the past has been a key driver of value growth within frozen foods. Towards the end of 2013, we started to see market deflation which has been a key factor in the value decline we are now seeing across the market. Private label continued to struggle and is responsible for 49% of the total market decline. This negative trend is now seen across nearly every category. We would expect private label to perform well under the economic pressures, but this has not been the case with retailers entering price wars on branded goods, resulting in lower prices in turn reducing the price differential between brands and private label. E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR Source: IRI retail databases; period ending 30 March 2014 TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago 845 656 450 368 336 71 11 963 PULSE REPORT France 8 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 30 March 2014 33.3 12.2 1.2 1.1 0 10 20 30 40 Ice Cream Frozen Meat Frozen Potato Products Frozen Dough & Bread Products - 3.3 - 3.9 - 32.0 - 25.2 -100 -50 0 Frozen Desserts Frozen Vegetables Frozen Fish Frozen Ready Meals . Millions Millions CATEGORY INSIGHTS The top 5 performing and non-performing categories remains unchanged from Q4 2013. Ice cream was the largest contributor to growth in absolute sales terms and also registered the fastest growth rate in both volume and value terms. The good summer combined with a mild winter were key factors in increased consumption. All manufacturers including private label benefitted from these external factors. Frozen meat value growth continued to slow quarter on quarter (+2.8% in Q1 2014 versus +3.9% in Q4 2013). Frozen meat was dominated by private label, the driver of this slowdown. Frozen potatoes continued to perform well and demonstrated healthy category growth driven primarily by regular on shelf sales. McCain and private label were the driving force behind this positive trend, contributing to 51% and 46% of value growth respectively. Findus struggled under the dominant force of the McCain and private label. Frozen ready meals: 2013 was a tough year for this sector; higher temperatures and the horsemeat scandal were just some of the negative influences on the category. So far, 2014 shows no signs of improvement in the categorys performance. Consumer demand for this type of food is in decline driven by lower consumer confidence thanks to sanitarian scandals and the general trend of back to basics / scratch cooking fuelled by the success of many TV shows. Pizza is the one sector which has been resistant to these factors, offering consumers a quick, cheap, convenient meal solution. PULSE REPORT 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 581 732 1 595 1 301 2 985 -4.1 1.3 4.5 -3.8 8.0 F r o z e n R e a d y
M e a l s F r o z e n
M e a t I c e
C r e a m F r o z e n
F i s h F r o z e n D e s s e r t s M i l l i o n s Total Sales % vs. YA Germany 9 KEY TRENDS In Germany, sales of frozen foods grew by +1.7% in value terms, out performing Europe as a whole where sales declined by -0.1%. Inflation was a key driver of value growth with volume sales in decline by -1.5%. This volume decline was seen in both base and promotional sales. Three quarters of the value growth within frozen foods came from the soft discounter channel. Private label dominated the market, contributing to over half of frozen foods sales and continuing to drive growth resulting in a decline of branded products. Frozen meat registered the highest growth rate whilst desserts and fish experienced the fastest decline. Desserts were perhaps impacted by the strong performance of ice cream. The relative price of fish compared to other protein sources may have caused consumers to drop fish from their repertoire. E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago Source: IRI retail databases; period ending 30 March 2014 1 595 1 301 732 581 540 416 202 2 985 PULSE REPORT Germany 10 CATEGORY INSIGHTS Poultry continued to be the major contributor of growth within frozen meat. Discounters were a key driver of this trend and contributed more than two thirds of growth. Private label was the clear winner within frozen meat with private labels growth out stripping that of brands resulting in an increased market share of +5.5 points to 61.4% in value terms. Frozen fish sales declined by -2.9% with everyday non-promoted sales driving this downward trend. Frozen fish also experienced a significant decline in promotionally led sales which alludes to lower levels of support for this struggling category. Overall, the majority of value decline came from the discount sector. Frozen desserts experienced the fastest decline in sales. The strong performance of ice cream and higher temperatures impacted the cake/pie/pastry sectors which are the main drivers of the overall downward trend. Fruit and sweet foods, however, performed well, but this was not sufficient to offset the losses from cake/pie/pastry. Ice cream was in second position in terms of value growth driven by higher average prices and volume growth driven by the strong performance of the multipacks segment. Within frozen ready meals, both pizza/baguette and ready/partial meals showed positive value growth driven by inflation. The rise in average prices offset the decline in volume. The highest value growth came from the discount sector along with strong performance of private label. TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 30 March 2014 Millions 117.6 56.4 38.5 10.7 0 50 100 150 Frozen Meat Ice Cream Frozen Ready Meals Frozen Potato Products - 17.1 - 10.1 - 28.7 - 25.0 -40 -30 -20 -10 0 Frozen Vegetables Frozen Dough & Bread Products Frozen Desserts Frozen Fish . Millions PULSE REPORT 3,2% 3,3% 20,5% 29,9% 0,8% 0,9% 22,7% 18,7% Ice Cream Frozen Fish Frozen Vegetables Frozen Ready Meals Frozen Meat Frozen Potato Products Frozen Desserts Frozen Dough & Bread Products Italy 11 E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR Source: IRI retail databases; period ending 30 March 2014 TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago 768 693 635 107 30 26 1,014 112 112 1 014 693 768 635 -4.9 -2.1 -0.4 -4.6 -0.5 I c e
C r e a m F r o z e n
F i s h F r o z e n V e g e t a b l e s F r o z e n R e a d y
M e a l s F r o z e n
M e a t M i l l i o n s Total Sales % vs. YA KEY TRENDS The overall sales trend of frozen foods remained unchanged from last quarter. Italian shoppers still are reducing the amount that they buy as signs of economic recovery remain weak. Year-on-year volume sales were down by -2.7% with value being hit harder with a decline of -3.2%. In the first quarter of 2014, volume sales showed an acceleration in their decline with volumes down -3.7% versus the year on year decline of -2.7%. This was driven by vegetables, along with the late Easter this year (in March 2013 versus in April 2014). Promotional intensity increased year on year, but showed signs of stabilizing at 37% volume on deal in the latest quarter. Despite the poor performance of this market, product assortment still saw marginal growth. The average number of SKUs in Q1 2014 is 335 (+8), driven by ice cream, vegetables and fish. PULSE REPORT Italy 12 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 30 March 2014 Millions 1.1 0 0 0 1 1 1 1 Frozen Potato Products - 39.8 - 4.7 - 4.8 - 13.6 - 48.5 -60 -50 -40 -30 -20 -10 0 Frozen Dough & Bread Products Frozen Desserts Frozen Ready Meals Frozen Fish Ice Cream . Millions CATEGORY INSIGHTS Ice cream: In the first quarter of this year, value sales grew by +4.5%. Ice cream was the only category to register growth this quarter. This growth was fuelled by the recent mild winter and start to 2014, resulting in increased levels of consumption (tubs and multipacks). This helped to reverse the negative trend seen in 2013, but will this short term growth continue to the summer? Frozen fish: Value sales were down by -5.4% this quarter. This decline was driven by natural fish (volume -9.0% versus Q4 2013). Fish in general are the most expensive source of protein resulting in shoppers leaving the category in favour of cheaper options. Sales from innovation (mainly from the market leader Findus) within prepared fish and fish based meals helped to offset some of the losses from the natural fish sector. Frozen vegetables: Sales slipped into decline and fell by -3.1% in value terms. Frozen vegetables cheapness meant that initially it faired well as the recession took hold. Nevertheless, price inflation and lower levels of promotional activity within key sectors such as peas and spinach caused shoppers to reduce the amount they buy. Soups and cooking mixes performed well with sales +7.1% in value terms driven by convenience led innovation from Findus. Frozen ready meals: This quarter, value sales fell by -2.4%. Looking below the surface, there were differing trends across the sectors. Pasta based first dishes and side dishes were still in strong decline, which accelerated quarter on quarter (-7.5% in Q4 2013 and -10.5% in Q1 2014). Second dishes continued to grow in value (+4.0% in Q1 2014) driven by innovation from the market leader Findus and their new range of gratin cod recipes. Despite being a cheaper meal solution, pizzas growth has slowed and is in danger of slipping into decline with value sales only +0.3 this quarter. PULSE REPORT 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 other Frozen Meats Frozen Poultry 76 384 118 207 95 5.4 3.6 -0.6 -2.6 5.8 F r o z e n R e a d y
M e a l s I c e
C r e a m F r o z e n
F i s h F r o z e n P o t a t o P r o d u c t s F r o z e n V e g e t a b l e s M i l l i o n s Total Sales % vs. YA The Netherlands 13 KEY TRENDS Compared to last year, value sales across frozen foods grew by +0.6%, but growth across frozen foods was behind that of total supermarket sales, which grew by +0.8%. The highest level of growth in absolute terms came from ice cream with volume sales performing well. Furthermore, frozen potato products and frozen vegetables performed well in value terms, although this was fuelled by inflation with volumes down. Overall, discounters and supermarkets grew in line with frozen foods in general. Discounters achieved the highest levels of volume and value growth within frozen vegetables and frozen meals. Sales of frozen meat declined within this channel, which may be a direct result of the growth of fresh meat within the discount sector. E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago Source: IRI retail databases; period ending 30 March 2014 207 118 95 20 12 6 4 384 76 PULSE REPORT The Netherlands 14 CATEGORY INSIGHTS The top performing categories had a combined growth of 18.6 million versus the same quarter last year. Ice cream contributed to nearly 57% of this growth, fuelled by the good summer last year and the relatively mild winter and start to 2014. In fact, the unit sales of multipacks in Q1 were 32% higher compared to the same quarter last year. Unilever, who dominates the market, was the main contributor to growth with growth from their core range as well as new product development (NPD). Frozen vegetables continued to grow in value terms driven by inflation whilst volumes continue to fall. The largest decline in sales came from frozen ready meals, mainly from the supermarket channel. Pizza, which offers shoppers a cheaper meal solution, faired a little better showing only a marginal decline versus a -15% decline of core ready meals. Frozen fish continued to decline in volume and value terms, despite the fact that inflation seems to be stabilising. Most segments within fish are stable apart from vissticks where sales declined by -10% compared to the same period last year. Sales of frozen snacks declined by 2.2% in value terms driven by Eastern snacks, mini snacks and other items that can be shared. The World Cup will hopefully have a positive effect on sales next quarter.
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 30 March 2014 Millions 0.5 3.3 4.2 10.6 0 2 4 6 8 10 12 Ice Cream Frozen Vegetables Frozen Potato Products All other Frozen Meats - 0.1 - 10.1 - 0.7 - 0.7 - 0.8 -12 -10 -8 -6 -4 -2 0 Frozen Desserts Frozen Poultry Frozen Dough & Bread Products Frozen Fish Frozen Ready Meals . Millions PULSE REPORT 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 Spain 15 E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago Source: IRI retail databases; period ending 30 March 2014 594 543 171 73 9 4 733 116 116 733 543 594 171 -2.7 -4.0 -1.7 -1.7 -1.6 F r o z e n
F i s h I c e
C r e a m F r o z e n
R e a d y M e a l s F r o z e n V e g e t a b l e s F r o z e n
D o u g h &
B r e a d P r o d u c t s M i l l i o n s Total Sales % vs. YA KEY TRENDS Quarter on quarter sales of frozen foods were in value decline -1.9% with volumes being hit harder registering a -2.6% decline. The main drivers of this trend were fish and seafood (-1.7%), and unlike many other European countries where we have seen strong growth, ice cream struggled and declined by -2.7%. Sales of private label, which dominates the market with a 58% share, declined by -1.0%. Demand for private label was clearly down with volumes down at twice the rate of value at -2.0%. Pescanova continues to be in the spotlight for the wrong reasons, facing corporate issues and financial audits further to books falsification. PULSE REPORT Spain 16 CATEGORY INSIGHTS Pescanova remained the leading manufacturer with a 7.2% market share, however, sales continued to decline with sales down -4.1% in value and -6.7% in volume terms. In second position was Nestle, who remained in value growth, and in third position was Unilever, whose sales declined by -6.8%. The new Findus Group (Findus and Bonduelle) changed the assortment and mix of vegetables and ready to eat categories, turning it into the brand leader in many sectors. However, sales continued to struggle (-11.9% in value and -13.4% in volume). The pizza category trend continued to slow driven by the market leaders Nestle and Dr Oetker. Both manufacturers combined contributed to more than 59% of the categorys value sales. Nestle had a share of 28.4% with sales down -3.4% in value terms. Dr Oetker had a share of 31.0% but successfully managed to grow +2.9% in value terms. Ice cream was unable to cash in on the good summer last year and the warmer temperatures this winter like many northern European countries were able to. Unilever was the leading manufacturer contributing to 16.3% of the categorys value. However, sales for Unilever were down by -6.8%, unable to compete with private labels dominance in this category which currently makes up 69.0% of category value and 85% of category volume. TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Source: IRI retail databases; period ending 30 March 2014 Millions 5.8 0 2 4 6 8 Frozen Potato Products - 16.6 - 9.3 - 7.1 - 1.9 - 12.8 -20 -15 -10 -5 0 Frozen Dough & Bread Products Frozen Vegetables Frozen Ready Meals Frozen Fish Ice Cream . Millions PULSE REPORT 5,0% 11,0% 17,7% 23,7% 4,1% 21,3% 17,2% Frozen Ready Meals Ice Cream Frozen Potato Products Frozen Fish Frozen Vegetables Frozen Desserts Frozen Meat The United Kingdom 17 KEY TRENDS The frozen market in the United Kingdom continued to grow in value terms whilst volume declined. Value growth was driven mainly by inflation, whilst the volume decline depicts a general fall in consumption as well as a shift to smaller packs by both shoppers to manage their spend and manufacturers to maintain price points. Overall, the amount of volume on deal across frozen foods was in decline, however, we are seeing that this is driven more so by private label, enabling branded products who are generally promoted more heavily to become more dominant in volume terms. Off Shelf deals have remained relatively constant over time, the decline in volume on deal coming from the reduction of On Shelf promotions, which along with the reining in of private label promotions contributed to the overall market volume decline. E u r o s ,
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CATEGORY VALUE SALES IN THE LAST YEAR CATEGORY SHARE OF VALUE IN THE LAST YEAR TOP 5 CATEGORIES: EVOLUTION Value sales () and % change versus a year ago Source: IRI retail databases; period ending 30 March 2014 918 763 743 215 175 1,019 473 473 1,019 763 918 743 7.7 -4.4 6.2 -5.9 -0.2 F r o z e n R e a d y
M e a l s I c e
C r e a m F r o z e n P o t a t o P r o d u c t s F r o z e n
F i s h F r o z e n V e g e t a b l e s M i l l i o n s Total Sales % vs. YA PULSE REPORT The United Kingdom 18 CATEGORY INSIGHTS Ice cream continued to reap the benefits from the summer last year. This trend looks set to continue with a warm spring and a good start to the British summer with growth rates increasing quarter on quarter. Frozen potato remained a key area of value growth, fuelled by price inflation. McCain put in a much better performance than of late, thanks to their strong promotional campaign which has continued with a second wave of promotional activity supported with intense above the line media activity. Despite all this, the category remained in volume decline. Ready meals: Sales of frozen pizzas in the past held the sales of ready meals up, but recent trends showed sales of frozen pizzas to be slipping into decline. Traditional ready meals continued to decline with no sign of this trend slowing. In fact, quarter on quarter we saw an acceleration in this decline trend as retailers continued to focus on their chilled offering. Chilled typically offers a boarder and more convenient meal solution with, in most cases, shorter cooking times. Vegetables, a category once in growth, declined in both value and volume. This trend was driven by private label. The market leader Birds Eye successfully grew in value and units driven by smaller added value propositions. Fish was under price pressure with the relative price compared to other protein sources increasing, causing shoppers to drop this category from their repertoire. Further pressure added through Birds Eye and Youngs aggressive tactical promotional strategy stripped further value out of the market. Source: IRI retail databases; period ending 30 March 2014 TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO () TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO () Millions Millions 44.4 65.4 0 20 40 60 80 Ice Cream Frozen Potato Products - 0.8 - 64.3 - 2.2 - 1.4 - 34.3 -80 -60 -40 -20 0 Frozen Vegetables Frozen Meat Frozen Desserts Frozen Fish Frozen Ready Meals . PULSE REPORT Final Notes 19 Notes on category definitions for countries Due to the diverse products found in individual countries across this market, it was necessary to consolidate the available data into the categories in this report. In some cases, it wasnt possible to align products across all six countries, hence the need to highlight any anomalies in the report. Those exceptions are listed below:
Frozen dough and bread products The UK data in this report does not include this category. PULSE REPORT Resources 20 About IRI. IRI is a leader in delivering powerful market and shopper information, predictive analysis and the foresight that leads to action. We go beyond the data to ignite extraordinary growth for our clients in the CPG, retail and over- the-counter healthcare industries by pinpointing what matters and illuminating how it can impact their businesses across sales and marketing. Move your business forward at IRIworldwide.eu Arlington Square, Downshire Way, Bracknell, Berkshire RG12 1WA, Tel +44 (0) 1344 746000 Copyright 2014 Information Resources, Inc. (IRI). All rights reserved. IRI, the IRI logo and the names of IRI products and services referenced herein are either trademarks or registered trademarks of IRI. All other trademarks are the property of their respective owners. FOR MORE INFORMATION Please contact Isabelle Staquet, Consultant, IRI at Isabelle.Staquet@IRIworldwide.com or +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 the following 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.