Cucumber Report Brand Health & Demographics •Source: • Nielsen Homescan data until 3rd of September 2011 • Nielsen Scantrack data (National Woolworths) until 28th August 2011 Cucumber….. 77.5 % of Australian Households purchased Cucumbers; spending on average $ 17 in the last year, which equates to 9.4 shopping trips and $1.8 spent per shopping trip Looking at trended information we can see that price spikes during this year natural disasters, have remained higher than previous year levels. However, during the last 2 periods, prices per kilo have started to decrease, closing the gap with previous year’s 2 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Cucumber….. Most of the cucumber’s additional value come from current cucumber buyers, while those who decided not to buy it more are spending more in Pumpkin & Tomato Despite Cucumber price increase, most household segments remained purchasing it; however “Bustling Families” (HH with children above 12yo) segment was the only one where cucumber decreased its penetration. Woolworths has held the dominant share of the Cucumber trade, whilst Coles has share gains at expense of IGA, Independents and Green Grocers 3 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Homescan Overview 4 Copyright © 2011 The Nielsen Company. Confidential and proprietary. This report leverage two different types of information: 1) Retail Measurement Data (Scanning Sales) 2) Household Panel Information • Complementary data sources, not substitutes for one another • Address separate sets of business issues Store-Level Scanning Sales • Volume & Share Tracking • Promotion Execution & Effectiveness • Price Sensitivity • Account Performance Household Panel Information •Components of Sales •Brand Loyalty & Repeat •Demographics •Buyer Analyses •Cross Purchasing •Switching/Source of Volume 5 Copyright © 2011 The Nielsen Company. Confidential and proprietary. How does Household Panel Information (Homescan) work? Start with a panel that is statistically representative of Australian households Information is supplied via Advisor i-sights to clients to evaluate consumer and retail trends. Panel member buys products from any retail outlet and takes them home Nielsen processes the data together with stringent QC checking At home they scan the purchases via a barcode scanner - supplementing data from a barcode book for shopping trip info and non barcoded items Purchase data is automatically modemed back to Nielsen via the telephone line 6 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Key Measures 7 Copyright © 2011 The Nielsen Company. Confidential and proprietary. During the last year the number of Australian Households purchasing cucumbers decrease by 96k, however those who keep purchasing, spent $2.1 more than previous year in the commodity. What are the key consumer drivers of sales? - Brand Health - Value ALL SHOPPERS - AUS - MAT TO 03/09/2011 - BASED ON VALUE ($000'S)/1000 *NB - Fresh Salads contain all pre-packed salads This chart compares Cucumber household reach (penetration) against some other vegetables. Blue represents year ago while yellow represent current year This chart show the average household spend across various vegetable commodities. Source : ACNielsen Homescan Australia * New Nielsen Scanning guides began capturing loose Asian Vegetables, Celery and Capsicum purchasing despatched to panel in Sept 2009 rd 8 Nielsen Homescan data until 3 September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Households that buy Cucumbers are purchasing the commodity less often, 9.4 times compared to 9.6 times last year, however they are spending $0.3 more in every shopping trip. What is driving how much my consumers buy? - Brand Health - Value ALL SHOPPERS - AUS - MAT TO 03/09/2011 - BASED ON VALUE ($000'S)/1000 *NB - Fresh Salads contain all pre-packed salads This chart compares how frequently Cucumber is purchased each year compared to other vegetable commodities Households are spending approximately $1.80 each time they purchase Cucumber. Source : ACNielsen Homescan Australia * New Nielsen Scanning guides began capturing loose Asian Vegetables, Celery and Capsicum purchasing despatched to panel in Sept 2009 9 Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Average household spend on Vegetables peaked immediately following the natural disasters in February urce : ACNielsen Homescan Australia How are the key consumer drivers of sales changing over time? - Brand Health - Value ALL SHOPPERS - AUS - TOTAL VEGETABLES - BASED ON VALUE ($000'S)/1000 QLD Cyclone Floods Yasi This chart shows that the average household increased their spend (red line) on Vegetables in the periods during & after the natural disasters. 10 Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Over a two year period we can see that average weight of purchase has increased over the Cyclone Yasi period and has remained at higher levels than a year ago. urce : ACNielsen Homescan Australia How are the key consumer drivers of sales changing over time? - Brand Health - Value ALL SHOPPERS - AUS - TOTAL CUCUMBERS - BASED ON VALUE ($000'S)/1000 QLD Cyclone Floods Yasi During peak seasons, average household spend decreased (red line) as the number of households increased (blue bars) Cucumber peak season November- April 11 Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Growth in $AWOP are linked to increases in spend per shopping occasion What is driving how much my consumers buy over time? - Brand Health - Value ALL SHOPPERS - AUS - TOTAL CUCUMBERS - BASED ON VALUE ($000'S)/1000 QLD Cyclone Floods Yasi Green Line: how many times consumers buy it – it is stable. Yellow Line: How much they spend each time. It increased in the last period to $2.3 12 Source : ACNielsen Homescan Australia Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Looking at Woolworths information, Cucumber volume sales have declined by -5.9%, however total value grew more than 19% due to the effect of price increase (+2.9 $/Kg) Table Report | Nat Woolworths - T. Cucumbers | T. Fresh Fruit and Vegetables Units of Measure: Units = System Units(000's) | Volume = Kilograms(000's) | Value = $ (000's) MAT To 29/08/2010 MAT To 28/08/2011 Kilograms(000's) 6,020.7 5,663.8 $ (000's) 65,038.8 77,938.6 $10.80 $13.76 Price per Vol (Kg) 13 Nielsen ScanTrack data until 28th August 2011 SOURCE: Nielsen Australia ScanTrack (HAL_FRESH_FRUIT_VEGETABLES ) Copyright © 2011 The Nielsen Company. Confidential and proprietary. Looking at trended Woolworths information, the affects of Queensland natural disasters can be seen, however during the last two periods, prices started to close the gap with levels from a year ago. Table Report | Nat Woolworths - T. Cucumbers | T. Fresh Fruit and Vegetables Units of Measure: Units = System Units(000's) | Volume = Kilograms(000's) | Value = $ (000's) QLD Cyclone Floods Yasi Blue Line: Price per Kg. $19.90 in latest period vs. $14. 07 last year. Yellow Bar: Kgs sold by Woolworths during each period. 14 SOURCE: Nielsen Australia ScanTrack (HAL_FRESH_FRUIT_VEGETABLES ) Nielsen ScanTrack data until 28th August 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. The overall positive value change during the last 52 weeks can be traced mostly from Existing Cucumber buyers, while most of the lost value went to Pumpkin & Tomatoes Brand Shifting | Based on Value AUS CUCUMBER - MAT to 3/9/2011 vs YA Most of the value growth (4.1%), come from existing buyers and in a smaller proportion from new cucumber buyers Category Expansion/Contraction Source: Nielsen | Homescan® (Australia) - Issue # WBSF372693_504280 Those few households that stop buying cucumber, increase their spend mostly in Tomatoes & Pumkin 15 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Demographics 16 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Despite penetration is even in most demographics groups, Bustling Families segment show an excellent opportunity to recover its previous level and capitalise the increase it has on spend. The green bar Who buys my brand? (Lifestage) - Demographics - Value AUS - TOTAL CUCUMBERS - MAT TO 03/09/2011 - BASED ON VALUE ($000'S)/1000 represents the percent of each demographic purchasing in latest period with the red bar representing the percentage last year 17 Nielsen Homescan data until 3rd September 2011 Source : ACNielsen Homescan Australia Copyright © 2011 The Nielsen Company. Confidential and proprietary. Low & Medium income households decreased their value importance for cucumber, while High income households accounts for almost half of cucumber value Who buys my brands? (Income) - Demographics - Value AUS - TOTAL CUCUMBERS - MAT TO 03/09/2011 - BASED ON VALUE ($000'S)/1000 Opportunity exists develop Low and Medium income households Low & Medium Income households have decreased their importance in value during the last year 18 Nielsen Homescan data until 3rd September 2011 Source : ACNielsen Homescan Australia Copyright © 2011 The Nielsen Company. Confidential and proprietary. 1-2 member households have had the most significant contribution to value sales within Cucumbers, however still opportunity to increase reach within this household size Who buys my brands? (Household Size) - Demographics - Value AUS - TOTAL CUCUMBERS - MAT TO 03/09/2011 - BASED ON VALUE ($000'S)/1000 By far, 1-2 member household size is the most important demographic as they account for 48.4% of sales. Opportunity to increase reach as 1- 2 member household has the lowest penetration 19 Source : ACNielsen Homescan Australia Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Share of Trade 20 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Coles has gained 1.9% share points over the last year growing at 22% at expense of IGA, Independents and Green Grocers Share of Trade - Share of Trade ALL SHOPPERS - MAT TO 03/09/2011 - TOTAL CUCUMBERS - BASED ON VALUE ($000'S)/1000 This pie chart shows how is the Cucumber value distribution among different retailers/classes of trade This show the actual sales values percentage growth/decline behind the share of trade changes 21 Source : ACNielsen | Homescan Australia Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Coles has gained share through increasing average household spend and penetration ALL SHOPPERS - TOTAL CUCUMBERS Consumer KPI's Value Basis: VALUE ($000'S) Source: Nielsen Homescan 22 Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Coles variation in AWOP is a result of increases in spend per occasion, while Aldi also show increases in purchase frequency What is driving how much my consumers buy? - Brand Health - Value ALL SHOPPERS - AUS - MAT TO 03/09/2011 - BASED ON VALUE ($000'S)/1000 23 Source : ACNielsen Homescan Australia Nielsen Homescan data until 3rd September 2011 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Glossary 24 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Terms • Penetration – The proportion of households purchasing a product in the specified period expressed as a percentage of all households. • Average Weight of Purchase (AWOP) – The average volume/value/units of a product bought across all buyers of that product in the specified period. • Occasions Per Buyer – The average no. of times each buyer purchases the specified product in a specified period. A product/date/shop combination, eg. a household purchasing 2 identical products on a shopping trip to Woolworths constitutes a single purchase occasion. • Amount Per Occasion – Average value or units purchased on each purchase occasion. • QTR – Quarter year; rolling 13 weeks. • MAT – Moving annual total; a rolling yearly total which accumulates 52 weeks of data. • PP – Prior Period • YA – Year Ago. 25 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Lifestage Demographic Definitions Young Transitionals Adult households (no children <=17) Head of household <35 Small scale families Households with oldest child 6-11 years Start-up families Households with young children only, oldest child < 6 Bustling families Households with oldest child 12-17 years Senior Couples Two (2) or more adults (No children <=17) Head of household 60 or over Independent singles One (1) person adult household (No children <=17) Head of household >=35 Established Couples Two (2) or more adults (No children <=17) Head of household 35-59 26 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Lifestage Distribution of Households Senior Couples, 14% Young Transitionals, 15% Start Up Families,9% Established Households, 18% Independent Singles,17% Small Scale Families,11% Bustling Families,16% 27 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Scanning guide enhancements were introduced in August 2009, providing greater depth of information… 28 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Source of Growth / Decline - Bulla Premiu For Period MAT to 19/02/2011 vs YA | How to read a Source of Volume Chart 65.5 27.8 18.1 18.5 New/Lost Cat Exp/Cont Exp/Cont New/Lost Existing brand Cat New/Lost Brand Category Buyers buyers Buyers Category - Retained - New/Lost Households that The Focus Brand Gains or Losses Buyers Brand Brand purchased the experienced within the Focus Buyers Buyers category in one gains/losses Brands by period but not the from households Households who other and the who added/omitted the focus brand was increased/decrea focus brand to included in the sed their their category category purchases of the purchases. purchases.Incremental focus/ Lost brand Category Sales Switching Switching Includes Total 1.1 Total % Change in Volume households who shifted their focus brand purchases from/to alternative category items. 29 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Appendix 30 Copyright © 2011 The Nielsen Company. Confidential and proprietary. Whilst Woolworths has held a dominating share of Cucumbers with 32.9% share, Cucumbers are well developed in both Coles and Green Grocers. Coles is rapidly closing the gap with WW. What is driving grocery sales? (Account Comparison) - Bigger Picture - Value ALL SHOPPERS - TOTAL CUCUMBERS - SHARE OF TRADE ($) 31 Nielsen Homescan data until 3rd September 2011 Source : ACNielsen | Homescan Australia Copyright © 2011 The Nielsen Company. Confidential and proprietary.