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PULSE REPORT
IRI Pulse Report Chilled and Fresh
Welcome to the Pulse H1 2015 edition for chilled and fresh. We hope
you find it useful. Please do not hesitate to contact us if you have any
questions or comments at [email protected].
H1 2015
IRIworldwide.com
PULSE REPORT
About the Report
2
• This chilled and fresh report is one of 10 super category reports designed to provide a
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:
• Yogurts, dairy desserts and drinks
• Cream
• Eggs
• Margarines, butter, fats and spreads
• Milk
• Charcuterie
• Fresh vegetables
• Fresh fruit
• 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 (UK).
• 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. It includes 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. Where this occurred, it has been
documented in the Notes section found at the end of the report.
• Cheese
• Chilled juices
• Fresh desserts
• Salads
• Tofu/soya
• Chilled dips and sauces
• Ready meals
• Chilled fish and seafood
PULSE REPORT
On the Radar
3
ECONOMIC FIGURES INFLUENCING CONSUMER BEHAVIOUR
Chilled and fresh has seen slight declines during the latest quarter versus year ago, as deflationary pressures continue to drive value down. In many countries, value declines have also been driven by the growth of private label and discounters.
In prior periods, higher prices have supported value, while volume has struggled in some categories. Deflationary pressure has in many cases caused value sales to drop at a greater rate than volume.
New product development (NPD)has played an important role across some categories, being less susceptible to pricing pressures, therefore adding category value.
POPULATION
IN MILLIONS
UNEMPLOYMENT
(%)
AVERAGE 12
MONTHS
INFLATION
RATES GDP IN MILLIONS (€)
Jan.
2014
Jan.
2015
Avg.
2014
Jun.
2015
Avg.
2014
Jun.
2015 2013 2014
France 65.8 66.3 10.3 10.2 +0.7 +0.2 2 116 565 2 132 449
Germany 80.7 81.1 5.0 4.7 +0.9 +0.4 2 820 820 2 915 650
Italy 60.7 60.7 12.7 12.7 +0.3 +0.0 1 609 462 1 616 253
Netherlands 16.8 16.9 7.4 7.0 +0.5 +0.1 650 857 662 770
Spain 46.5 46.4 24.5 26.6 +0.0 -0.6 1 049 181 1 058 469
United
Kingdom 64.3 64.7 6.1 5.6 +1.7 +0.6 2 017 193 2 222 912
Source: Eurostat, June 2015
PULSE REPORT
3 756 3 705 3 661 3 632 3 595 3 559
2 225 2 213 2 274 2 349 2 264 2 261
2 536 2 597 2 469 2 509 2 551 2 634
3 659 3 756 3 426 3 622 3 697 3 842
7 958 7 974 7 819 7 913 7 855 7 913
5 704 5 738 5 755
6 182 5 797 5 715
0
5,000
10,000
15,000
20,000
25,000
30,000
30-mar-14 29-jun-14 28-sep-14 28-dic-14 29-mar-15 28-jun-15
Eu
ro
s, in
millio
ns
Period Ending
France
Germany
Italy
Netherlands
Spain
UK
GLOBAL TRENDS
4
-0.5%
-3.8%
TOTAL EUROPE -0.4%
VALUE SALES IN MILLIONS (€)
Total EU 10 3295
DE 31 500
FR 23 449
IT 14 587
UK 14 447*
NL 10 163
ES 9 149
TOTAL CHILLED & FRESH VALUE SALES AND % CHANGE VERSUS PRIOR YEAR
*based on an exchange rate of €1.27 to the pound
+0.9%
+0.9%
+0.3%
TOTAL CHILLED AND FRESH VALUE SALES FOR THE LAST SIX QUARTERS
Source: IRI retail databases, period ending 28 June 2015 and prior five quarters
+0.4%
PULSE REPORT
KEY TRENDS
• The chilled and fresh market in Europe
ended 2014 with value sales in slight
decline (0.4%). Value sales also slid in the
second quarter versus year ago.
• Spain and France are helping to balance
out some of the decline that is coming
from the UK and Germany (which has
recently gone into decline).
• There are a combination of trends
impacting category sales across Europe.
The continued growth of private label and
discounters are putting downward pressure
on pricing in many categories, whilst in
others, increased promotions with
shallower deals have driven up prices while
depressing lift and sales volumes.
Europe
5
21 552 21 217
10 964
8 546
6 254 5 772 5 581 4 758 4 380
3 570
Euro Sales
Cheese Charcuterie Yogurts, Dairy Desserts & Drinks
Ready Meals Margarine, Butter, Fats & Spreads Milk
Chilled Juices Fresh Desserts Fresh Vegetables
Eggs
Eu
ros,
in m
illi
on
s
CATEGORY VALUE SALES IN THE LAST YEAR
Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Cheese 20.9%
Charcuterie 20.5%
Yogurts, Dairy Desserts & Drinks 10.6%
Ready Meals 8.3%
Margarine, Butter, Fats & Spreads 6.0%
Milk 5.6%
Chilled Juices 5.4%
Fresh Desserts 4.6%
Fresh Vegetables 4.2%
Eggs 3.5%
Fresh Fruit 2.6%
Salads 2.5%
Chilled Fish and Seafood 2.4%
Cream 1.9%
Chilled Dips and Sauces 0.8%
Tofu / Soya 0.1%
Source: IRI retail databases, period ending 28 June 2015
PULSE REPORT
Europe
6
Europe includes: France, Germany, Italy, the Netherlands, Spain and the United Kingdom
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
280.5
104.0
90.3
77.6
51.4
0 200
Ready Meals
Cheese
Salads
Fresh Vegetables
Fresh Fruit
Millions Euros, in millions
21 552 21 217
10 964
8 546
6 254
0.5 -0.2 0.4
3.4 -5.8
Cheese
Charc
ute
rie
Yogurt
s, D
airy
Dessert
s &
Drinks
Ready M
eals
Marg
arine,
Butt
er,
Fats
& S
pre
ads
Eu
ro
s, in
mil
lio
ns
Euro Sales % € vs. YA
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
CATEGORY INSIGHTS
• Ready meals have overtaken cheese to
become the key contributor to growth
within chilled and fresh foods, with
Germany and Italy showing above-average
value sales growth.
• Margarine, butter, fats & spreads and milk
categories have seen the biggest value
declines, due to a combination of factors
(e.g. price deflation/discounters/switching
to other categories, etc.) that have driven
price down.
• With increased pressure on prices in many
categories, new product development has
been a driver of category growth and
maintaining value. This trend is prevalent
in yogurts, butter and dairy drinks, where
increased demand for naturalness and
beneficial ingredients (such as protein,
lactose free and less processed products)
are key drivers of new product innovation.
- 85.7
- 91.6
- 175.4
- 328.6
- 382.3
-500 -300 -100
Cream
Eggs
Chilled Juices
Milk
Margarine, Butter, Fats& Spreads
Euros, in millions
Source: IRI retail databases, period ending 28 June 2015
PULSE REPORT
France
7
5 461
4 683
2 880 2 521
1 620 1 336 1 200 1 078
907 623
Euro Sales
Charcuterie Cheese Ready Meals
Yogurts, Dairy Desserts & Drinks Chilled Fish and Seafood Margarine, Butter, Fats & Spreads
Fresh Desserts Salads Eggs
Fresh Vegetables
Eu
ros,
in m
illi
on
s
CATEGORY VALUE SALES IN THE LAST YEAR
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Charcuterie 23.3%
Cheese 20.0%
Ready Meals 12.3%
Yogurts, Dairy Desserts & Drinks 10.7%
Chilled Fish and Seafood 6.9%
Margarine, Butter, Fats & Spreads 5.7%
Fresh Desserts 5.1%
Salads 4.6%
Eggs 3.9%
Fresh Vegetables 2.7%
Chilled Juices 1.6%
Cream 1.2%
Fresh Fruit 1.1%
Milk 0.4%
Tofu / Soya 0.4%
Chilled Dips and Sauces 0.3%
Source: IRI retail databases, period ending 28 June 2015
KEY TRENDS
• Volume sales of fast moving consumer
goods (FMCG) have been stable since the
beginning of 2015. Despite a high level of
deflation (down 1.4%), value sales are
experiencing low levels of growth (+0.5%),
as consumers continue to trade up.
• Chilled and fresh markets are in line with
the total FMGC market (volume sales up
0.3% and volume sales up 0.7%).
• Sales are stable, largely due to promotional
actively in total FMGC as a whole as well as
the chilled and fresh market.
• The average growth in chilled and fresh
doesn’t reflect the different quarterly
evolutions: growth on Q1 (+1.4% volume)
and sales decrease on Q2 (-1.1% volume).
• Factors influencing Q2 sales decline:
− High temperatures in June impacted
the growth of dairy products (cheese,
fats& spreads and dairy desserts).
− Promotions were not able to sustain
the growth of chilled and fresh.
PULSE REPORT
France
8
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
56.8
48.6
44.5
41.7
19.0
0 40
Ready Meals
Salads
Cheese
Charcuterie
Fresh Desserts
Millions Euros, in millions
5 461
4 683
2 880
2 521
1 620
0.8 1.0 2.0 -0.8 0.1
Charc
ute
rie
Cheese
Ready M
eals
Yogurt
s,
Dairy
Dessert
s &
Drinks
Chille
d F
ish a
nd
Seafo
od
Eu
ro
s, in
mil
lio
ns
Euro Sales % € vs. YA
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
- 1.5
- 4.0
- 10.5
- 20.1
- 21.4
-25 -15 -5
Milk
Cream
Eggs
Margarine, Butter, Fats& Spreads
Yogurts, Dairy Desserts& Drinks
Euros, in millions
Source: IRI retail databases, period ending 28 June 2015
CATEGORY INSIGHTS
• Charcuterie is still the primary contributor
to chilled and fresh category performance
in France. Value sales grew slowly
(+0.6%) during H1, supported by good
performance within drawn standard poultry
and poultry ham.
• Cheese is stable, despite high
temperatures in Q2. Hard cheeses and
mountain cheeses led sector growth in Q1
(+3.0% value), but value sales fell 3.0%
in Q2.
• Ready meals performed well in H1 (+2.6%
value sales), driven by the success of hot
snacks, pasta and sandwiches.
• Yogurts and dairy desserts saw value sales
decline 2.0% during Q2 2015.
PULSE REPORT
7 888 7 680
2 816 2 699 2 510
1 934
1 255 1 209 1 170 1 116
Euro Sales
Charcuterie Cheese Yogurts, Dairy Desserts & Drinks
Chilled Juices Margarine, Butter, Fats & Spreads Ready Meals
Fresh Desserts Eggs Salads
Cream
Germany
9
CATEGORY VALUE SALES IN THE LAST YEAR
Eu
ros,
in m
illi
on
s
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Charcuterie 25.0%
Cheese 24.4%
Yogurts, Dairy Desserts & Drinks 8.9%
Chilled Juices 8.6%
Margarine, Butter, Fats & Spreads 8.0%
Ready Meals 6.1%
Fresh Desserts 4.0%
Eggs 3.8%
Salads 3.7%
Cream 3.5%
Milk 3.1%
Chilled Fish and Seafood 0.7%
Tofu / Soya 0.1%
Chilled Dips and Sauces 0.0%
Source: IRI retail databases, period ending 28 June 2015
KEY TRENDS
• In Germany, performance of chilled and fresh
was much weaker (-0.5%) than most other
European countries.
• The negative development was driven by hard
discounters (-3.5%; €-365.1 million),specially
Aldi ( -5.2%; €-281.1 million). Considerable
declines in base volume (-5.7%) triggered the
heavy loss in hard discounters. Currently hard
discounters account for nearly one-third of the
category value sales.
• Private label registered a value decline of -
€182.1 million with a value share of 49.9%
(down 0.4 points). National brands displayed a
much better performance, generating €56.3
million of gain.
• Cheese and charcuterie account for almost half
of the chilled and fresh value sales. Charcuterie
lost considerably, while the cheese sector was
able to generate value gain (+1.4%).
• Discounters account for 48.2% value share of
chilled and fresh sales, while hypermarkets
hold 40.1% share.
PULSE REPORT
7 888 7 680
2 816 2 699 2 510
-1.5 1.4 4.4 -2.3 -9.0
Charc
ute
rie
Cheese
Yogurt
s,
Dairy
Dessert
s &
Drinks
Chille
d J
uic
es
Marg
arine,
Butt
er,
Fats
& S
pre
ads
Eu
ro
s, in
millio
ns
Euro Sales % € vs. YA
Germany
10
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
118.8
108.2
105.5
30.9
20.8
0 100
Yogurts, DairyDesserts & Drinks
Cheese
Ready Meals
Salads
Fresh Desserts
Millions Euros, in millions
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
Euros, in millions
Source: IRI retail databases, period ending 28 June 2015
CATEGORY INSIGHTS
• Strong growth in milkshakes (+7.1%) and
yogurt (+3.3%) drove growth for the yogurts,
dairy desserts & drinks segment. More than
54% of growth came from hypermarkets. The
category grew in both base and promotion
volume and also gained from price inflation.
• The cheeses sector drove the value gain in the
cheese segment, while quark sector
experienced a dip in sales ( -1.0%; €-9.3
million). Both these sectors declined in base
sales. While promotion growth successfully
offset the base decline in the cheese sector, it
could not compensate the base losses in quark.
• Considerable declines in butter (-10.0%; €-
194.3 million) drove the negative development
in margarine, butter, fats & spreads. Dips in
base volume sales and price triggered the
negative development. The segment declined
across all channels, with the sharpest declines
occurring in discounters.
• Chilled meat experienced sharp sales declines,
due to decreasing promotional activity. This
resulted in negative development in
charcuterie. The majority of the declines came
from hard discounters.
- 30.8
- 53.7
- 63.1
- 123.8
- 248.0
-300 -100
Milk
Eggs
Chilled Juices
Charcuterie
Margarine, Butter,Fats & Spreads
Millions
PULSE REPORT
Italy
11
3 482
2 155 2 082
1 576 1 389
1 137 973
711
429 385
Euro Sales
Cheese Charcuterie Fresh Vegetables
Yogurts, Dairy Desserts & Drinks Ready Meals Fresh Fruit
Milk Eggs Margarine, Butter, Fats & Spreads
Fresh Desserts
CATEGORY VALUE SALES IN THE LAST YEAR
Eu
ros,
in m
illi
on
s
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Cheese 23.9%
Charcuterie 14.8%
Fresh Vegetables 14.3%
Yogurts, Dairy Desserts & Drinks 10.8%
Ready Meals 9.5%
Fresh Fruit 7.8%
Milk 6.7%
Eggs 4.9%
Margarine, Butter, Fats & Spreads 2.9%
Fresh Desserts 2.6%
Chilled Dips and Sauces 1.1%
Cream 0.5%
Chilled Juices 0.2%
Source: IRI retail databases, period ending 28 June 2015
KEY TRENDS
• In H1 2015, FMCG sales were higher versus the
prior year. For chilled and fresh, value performance
was positive while volume was negative (FMCG
+1.2%; chilled and fresh +1.0%); chilled and fresh
volume declined for the period, while total grocery
was essentially flat (-1.0% and +0.1%,
respectively).
• Some of the largest chilled and fresh categories are
seeing notable shifts in volume and value.
Vegetables and charcuterie are experiencing
positive growth (5.7% and 5.4%, respectively).
Cheese and yogurt are seeing negative value trends
(-1.0% and -0.5%, respectively).
• Fresh meat, ready meals and fresh drinks are
enjoying significant increases in both volume and
value. Fresh meat is standing out, driven by the
shift of some products from random weight to fixed
weight. For ready meals, there is a noticeable
increase of promotional pressure, number of
references and a slight increase of the average
volume price. Fresh drinks increases are due to
high average temperatures.
• The decline of functional yogurts has slowed,
impacting the overall market. Emerging segments
of Greek and soya yogurt show strong performance.
PULSE REPORT
Euros, in millions
Italy
12
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
120.0
43.9
30.3
26.2
6.8
0 100
Ready Meals
Fresh Vegetables
Charcuterie
Fresh Fruit
Chilled Dips andSauces
Millions Euros, in millions
3 482
2 155 2 082
1 576 1 389
-0.9 1.4 2.2
-1.2 9.5
Cheese
Charc
ute
rie
Fre
sh V
egeta
ble
s
Yogurt
s,
Dairy
Dessert
s &
Drinks
Ready M
eals
Eu
ro
s, in
mil
lio
ns
Euro Sales % € vs. YA
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
Source: IRI retail databases, period ending 28 June 2015
CATEGORY INSIGHTS
• H1 2015 has seen an increase in inflation.
In the chilled and fresh markets, prices
were higher versus year ago (+2.1%),
driven primarily by fresh drinks, fixed
weight fresh fruit and charcuteries (up
4.3%, 7.3% and 1.4%, respectively).
• Private label has achieved a very high
share of chilled and fresh value sales
(27.1%, versus a FMCG average of
21.5%), and share is stable. Private label
promotional pressure is decreasing and it
is aligned to the category average (18.4%
versus 17.3%). The reduction in
promotional prices hasn’t impacted uplift
(uplift +6.1% versus year ago).
• The categories with the highest
promotional activity are fresh pasta,
cheese, yogurt, charcuterie, fresh meat,
fresh seasonings and fresh fruits. In each
of these categories, about 30% of volume
is sold on deal and promotional
effectiveness has slipped versus last year.
- 18.9
- 21.1
- 21.4
- 30.9
- 61.6
-80 -40 0
Yogurts, DairyDesserts & Drinks
Eggs
Margarine, Butter,Fats & Spreads
Cheese
Milk
PULSE REPORT
The Netherlands
13
KEY TRENDS
• Solid growth is on the horizon for the
Dutch economy. Consumer trust and
domestic demand are on the rise. Total
supermarket sales grew 2.3% during
the first half of 2015.
• The chilled and fresh category is critical
to the supermarket channel, with sales
accounting for 42.7% of channel sales.
• The chilled and fresh category
experienced a positive value growth of
1.7%.
• Fresh fruit and vegetables (+3.9%),
ready meals (+3.7%) and cheese
(+1.8%) showed the highest sales
growth.
• Charcuterie (-1.2%) sales are
experiencing a negative value trend.
Also margarine, butter, fats & spreads
(-2.6%) sales declined.
2 872
1 675
1 265 1 264
462 391 391 378 354 325
Euro SalesCharcuterie Fresh Vegetables
Cheese Fresh Fruit
Fresh Desserts Margarine, Butter, Fats & Spreads
Milk Yogurts, Dairy Desserts & Drinks
Ready Meals Chilled Fish and Seafood
CATEGORY VALUE SALES IN THE LAST YEAR
Eu
ros,
in m
illi
on
s
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Charcuterie 28.3%
Fresh Vegetables 16.5%
Cheese 12.4%
Fresh Fruit 12.4%
Fresh Desserts 4.5%
Margarine, Butter, Fats & Spreads 3.8%
Milk 3.8%
Yogurts, Dairy Desserts & Drinks 3.7%
Ready Meals 3.5%
Chilled Fish and Seafood 3.2%
Salads 2.9%
Eggs 2.3%
Chilled Juices 1.7%
Cream 0.6%
Chilled Dips and Sauces 0.3%
Tofu / Soya 0.0%
Source: IRI retail databases, period ending 28 June 2015
PULSE REPORT
The Netherlands
14
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
31.2
21.0
19.1
16.8
16.6
0 20 40
Chilled Juices
Fresh Fruit
Cheese
Fresh Vegetables
Chilled Fish andSeafood
Millions Euros, in millions
2 872
1 675
1 265 1 264
462
-2.2 1.0 1.5 1.7 -1.6
Charc
ute
rie
Fre
sh V
egeta
ble
s
Cheese
Fre
sh F
ruit
Fre
sh D
essert
s
Eu
ro
s, in
mil
lio
ns
Euro Sales % € vs. YA
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
CATEGORY INSIGHTS
• Charcuterie shows a decline because
consumers in general are eating less meat
than before. In contrast, poultry and
vegetarian meals, which are perceived to
be healthier, are experiencing good growth.
• The growth in fresh fruit sales was mainly
driven by increased sales in soft fruit
(blueberries and grapes), citrus fruit and
bananas.
• Value growth in the chilled juices segment
was mainly boosted by private label.
• Cheese value sales increased 1.8%, mainly
driven by cheeses that are popular on
salads, such as mozzarella and goat
cheese.
• Milk had a 6.6% decline in value sales,
mainly due to deflationary prices.
Euros, in millions
Source: IRI retail databases, period ending 28 June 2015
- 0.2
- 7.6
- 11.1
- 15.0
- 64.9
-80 -40 0
Cream
Fresh Desserts
Margarine, Butter,Fats & Spreads
Milk
Charcuterie
PULSE REPORT
Spain
15
KEY TRENDS
• Recent economic news for Spain has been
positive, with the GDP growing 1.9% in H1
2015 versus the prior year, with growth
faster than the European average.
• Sales of fresh produce grew by more than
3% in June; fresh produce is in high
demand.
• High temperatures contributed to strong
growth across a handful of categories,
including ice cream and water (which grew
13%), during the month of June.
• Promotional activity has decreased across
chilled and fresh in 2015, and remains
generally lower than the FMCG average of
19.6%.
2 841
1 958
1 600
728
513 511 367
210 143 141
Euro Sales
Charcuterie Yogurts, Dairy Desserts & Drinks Cheese
Ready Meals Eggs Fresh Desserts
Chilled Fish and Seafood Margarine, Butter, Fats & Spreads Chilled Dips and Sauces
Cream
CATEGORY VALUE SALES IN THE LAST YEAR
Eu
ros,
in m
illi
on
s
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Charcuterie 31.0%
Yogurts, Dairy Desserts & Drinks 21.4%
Cheese 17.5%
Ready Meals 8.0%
Eggs 5.6%
Fresh Desserts 5.6%
Chilled Fish and Seafood 4.0%
Margarine, Butter, Fats & Spreads 2.3%
Chilled Dips and Sauces 1.6%
Cream 1.5%
Chilled Juices 0.6%
Salads 0.4%
Milk 0.4%
Source: IRI retail databases, period ending 28 June 2015
PULSE REPORT
Spain
16
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
71.6
27.3
14.8
7.5
7.5
0 50 100
Charcuterie
Chilled Fish andSeafood
Ready Meals
Fresh Desserts
Chilled Dips andSauces
Millions Euros, in millions
2 841
1 958
1 600
728
513
2.6
-1.9 0.2
2.1
-1.5
Charc
ute
rie
Yogurt
s,
Dairy
Dessert
s &
Drinks
Cheese
Ready M
eals
Eggs
Eu
ro
s, in
mil
lio
ns
Euro Sales % € vs. YA
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
CATEGORY INSIGHTS
• The charcuterie and frozen products
sectors continue to enjoy value growth,
driven by the strength national brands.
While national brands are growing, private
label charcuterie and frozen products
experienced declines during the past year.
• Almost all segments of the cheese
category have struggled to find growth,
despite the fact that promotional activity
changed very little during the past year.
National brand cheeses are seeing slight
growth (1.1%), while private label cheese
is in decline.
• Yogurts, dairy desserts and drinks have
seen sharp declines, down 1.9% year on
year.
Euros, in millions
Source: IRI retail databases, period ending 28 June 2015
- 0.1
- 2.8
- 7.8
- 12.3
- 38.2
-50 -30 -10
Milk
Cream
Eggs
Margarine, Butter,Fats & Spreads
Yogurts, DairyDesserts & Drinks
PULSE REPORT
The United Kingdom
17
KEY TRENDS
• Value sales continued to decline in 2015 versus
year ago (-4.3% Q1 and -4.0% Q2) and are
under-performing compared to total FMCG
(-1.8% in the latest 12 week ending compared
last year).
• Although UK GDP is looking better, many of the
underlying causes of the consumer recession
have not substantially changed.
• The Consumer Price Index (inflation) was flat
during the first half of 2015, due to sharp
declines in oil prices and a continuing
supermarket price war.
• Milk remains the biggest sector and a key focus
for retailers looking to drive shoppers into
stores and demonstrate price competitive
strategies. Conventional fresh milk prices were
down 7.4% (much further than the total
market) in the first half of the year versus year
ago, contributing to significant value sales
declines for the sector.
• The continued growth of hard discounters in the
UK has placed significant competitive pressure
for the top four retailers. The struggle is
particularly fierce in commodity products, where
private label takes a larger share.
3 313
2 842
2 250
1 715
1 378 1 261
946
400 342
Euro Sales
Milk Cheese Chilled Juices
Yogurts, Dairy Desserts & Drinks Margarine, Butter, Fats & Spreads Ready Meals
Fresh Desserts Chilled Dips and Sauces Cream
CATEGORY VALUE SALES IN THE LAST YEAR
Eu
ros,
in m
illi
on
s
SHARE OF CHILLED AND FRESH VALUE FOR THE YEAR
Milk 22.9%
Cheese 19.7%
Chilled Juices 15.6%
Yogurts, Dairy Desserts & Drinks 11.9%
Margarine, Butter, Fats & Spreads 9.5%
Ready Meals 8.7%
Fresh Desserts 6.5%
Chilled Dips and Sauces 2.8%
Cream 2.4%
Source: IRI retail databases, period ending 28 June 2015
PULSE REPORT
The United Kingdom
18
TOP LOSERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
TOP WINNERS: VALUE SALES CHANGE VERSUS A YEAR AGO (€)
6.2
1.2
0 4 8
Chilled Dips andSauces
Yogurts, DairyDesserts & Drinks
Millions Euros, in millions
3 313
2 842
2 250
1 715
1 378
-6.2 -1.4 -6.7
0.1
-4.8
Milk
Cheese
Chille
d J
uic
es
Yogurt
s,
Dairy
Dessert
s &
Drinks
Marg
arine,
Butt
er,
Fats
& S
pre
ads
Eu
ro
s, in
millio
ns
Euro Sales % € vs. YA
TOP 5 CATEGORIES: EVOLUTION
Value sales (€) and % change versus a year ago
CATEGORY INSIGHTS
• Second only to milk, chilled juices is the
chilled and fresh category showing the
largest drop in value sales versus a year ago.
Even though promotional activity is up
(71.4% of volume is sold on deal) volume
sales are down. Base sales are the biggest
contributor to this decline. Value sales are
declining at a slightly faster rate than
volume, as the category prices fall.
• Cheese value sales slipped into decline this
year. Volume is declining due to falling
promotional uplift (despite stable levels of
volume on deal); the sector is also
experiencing some price deflation.
• The margarine, butter, fats and spreads
sector continues experience value sales
declines. Base sales remain under pressure
from hard discounters, as well as declines in
host products, such as bread, and the rise of
breakfast on the go. Private label block butter
has become part of the retailer price wars. In
Q4, private label everyday block butter prices
fell 9.0% versus year ago, whilst prices for
total butter, spreads and margarine increased
1.2%.
Euros, in millions
Source: IRI retail databases, period ending 28 June 2015
- 40.7
- 47.7
- 69.3
- 162.1
- 219.6
-250 -150 -50
Cheese
Cream
Margarine, Butter,Fats & Spreads
Chilled Juices
Milk
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 wasn’t always
possible to align products across all 6 countries hence the need to highlight any anomalies in
the report. Those exceptions are listed below:
Eggs
• The UK data in this report does not include this category.
Margarine, butter, fats and spreads
• The UK data in this report does not include fats in this category.
• The Spain data in this report does not include fats in this category.
Tofu/soya
• The UK data in this report does not include this category.
• The Spain data in this report does not include this category.
Chilled fish and seafood
• The UK data in this report does not include this category.
• The Italy data in this report does not include this category.
Charcuterie
• The UK data in this report does not include this category.
Fresh vegetables
• The UK data in this report does not include this category.
• The Spain data in this report does not include this category.
• The Germany data in this report does not include this category.
Fresh fruit
• The UK data in this report does not include this category.
• The Spain data in this report does not include this category.
• The Germany data in this report does not include this category.
PULSE REPORT
Resources
20
About IRI. IRI is a leading provider of big data, predictive analytics and forward-looking insights that help CPG, OTC
health care, retailers and media companies to grow. With the largest repository of purchase, media, social, causal and
loyalty data, all integrated on an on-demand cloud-based technology platform, IRI guides over 5,000 clients globally in
their quests to remain relentlessly relevant, capture market share, connect with consumers and deliver growth.
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FOR MORE INFORMATION
Please contact Desa Griffiths,
IRI at [email protected] or
+44 (0)1344 746192 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 chilled and
fresh 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.