GROWTH OPPORTUNITIES IN IRISH GROCERY IN 2013 CATHY CROSS © Kantar Worldpanel -9.3 -8.5 -6.4 -4.5 -4.1 -3.7 -2.9 -2.7 -2.2 -2 -1.4 -1.3 -0.2 0.1 0.3 0.9 1 1.6 1.9 2.5 2.9 3 3.8 7.3 7.3 9.7 10.3 Irish grocery market is flat overall but there are key Frozen and Ambient areas seeing growth, as well as Fresh Produce 12 w/e 25 Nov 2012 Total Grocery - value % chg by category 2 © Kantar Worldpanel Be Different Target Growing and Winning in Ireland Innovate & Refresh Range © Kantar Worldpanel Be Different 1. Being different to other brands 2. Being different to PL © Kantar Worldpanel ACCELERATED GROWTH OVER THE PAST 2 YEARS MARKET +11% +9% 2010 2011 2012 © Kantar Worldpanel WHERE HAS GROWTH COME FROM? NO CHANGE IN PRICE FEW NEW SHOPPERS SHOPPERS BUYING INTO THE CATEGORY MORE OFTEN DELIVERED 80% OF THE GROWTH IN 2012 © Kantar Worldpanel New formats driving growth while fuelling the overall category © Kantar Worldpanel COFFEE’S A SECOND CATEGORY THAT IS GOING FROM STRENGTH TO STRENGTH 82 80 +8% 78 76 74 €m +5% 72 70 68 66 64 2010 2011 2012 © Kantar Worldpanel GROUND 15% OF SPEND +22% YOY STANDARD INSTANT 65% OF SPEND +6% YOY © Kantar Worldpanel PREMIUMISATION OF STANDARD INSTANT COFFEE More shoppers Buying more often Willing to pay a higher price © Kantar Worldpanel Innovate & Refresh 67% 13% “I like trying new products” % of 2012 grocery spend from NPD © Kantar Worldpanel -9.3 -8.5 -6.4 -4.5 -4.1 -3.7 -2.9 -2.7 -2.2 -2 -1.4 -1.3 -0.2 0.1 0.3 0.9 1 1.6 1.9 2.5 2.9 3 3.8 7.3 7.3 9.7 10.3 8 out of 13 of the growing categories have more than 13% of spend coming from NPD 12 w/e 25 Nov 2012 Total Grocery - value % chg by category 12 © Kantar Worldpanel INNOVATE: BREAKFAST BISCUITS “HEALTHY” BISCUITS +9% +6% 2011 388,000 HHs 2012 61,000 HHs © Kantar Worldpanel REFERSH: BAKED BEANS +5% +3% 2011 609,000 HHs 115,000 HHs 2012 159,000 HHs © Kantar Worldpanel Range Range of choice and offering – thinking about different occasions © Kantar Worldpanel ACCELERATED GROWTH IN A DECLINING CATEGORY Almost saturated category penetration Shoppers buying less Glenisk 2012 Yogurts 42,000 more HHs Buying more often and paying more © Kantar Worldpanel 2012: more shoppers buying more, also benefitting the category © Kantar Worldpanel Know your target Target what they like and don’t like what makes them different Think ahead 0 - 14 years 15 - 24 years 25 - 44 years 45 - 64 years 65 + 1,600,000 1,400,000 1,200,000 1,000,000 800,000 600,000 400,000 200,000 0 1981 1986 1991 1996 2002 2006 2011 © Kantar Worldpanel WHAT DOES THIS MEAN? Younger and Older groups & Smaller Households are the growing demographics © Kantar Worldpanel Income Shopping Lists Kids 12 w/e spend per HH Budget Day of Week Store Preference HH Size Age €1,808 €1,580 €1,334 €1,244 €871 Pre-Family €879 Young Family Middle Family 45+ Family Older Dependents Empty Nesters © Kantar Worldpanel Brand I buy is important Like trying new products Influenced by HH members Influenced by HH members Try to buy local Strict Budget Diet is important Shop around for offers Price is most important Compare prices & buy diff brand if on offer Stick to a shopping list Stick to a shopping list I’m under time pressure when shopping Will pay more for organic Mortgaged / Rent Own my house outright © Kantar Worldpanel CLEARLY TARGETED NEEDS OF A SPECIFIC DEMOGRAPHIC © Kantar Worldpanel Be Different Target Growing and Winning in Ireland Innovate & Refresh Range © Kantar Worldpanel THANK YOU CATHY CROSS Consumer Insight Director catherine.cross@kantarworldpanel.com 01 480 8982 © Kantar Worldpanel