10am
The UK Sandwich Market
Presentation by
JEFFREY YOUNG
Allegra Strategies
Trends in the UK Sandwich Market
Presentation at The Taste Experience
British Sandwich Association
Jeffrey Young, Managing Director, Allegra
Strategies Ltd
1 November 2007
Allegra Strategies Limited
No 1 Northumberland Avenue, Trafalgar Square, London WC2N 5BW, UK
Tel: +44(0)20 7691 8800 Fax: 44 (0)20 7691 8810 Email: info@allegra.co.uk
www.allegra.co.uk
1.
Background on Allegra Strategies
2.
Consumer Food Mega-Trends
3.
Market Landscape
4.
Case Study: Branded Coffee Chain
Segment
5.
Future Sandwich Market Developments
6.
Q&A
Page 3
ABOUT ALLEGRA STRATEGIES
• Leading UK research and strategy consulting firm focusing on Coffee and Foodservice, Retail
and Consumer Lifestyle
• Mission to deliver outstanding quality information, assisting clients to better understand their
competitive environment and to focus on customers, markets and innovation
• Publish Project Café series since August 1999, recognised as the definitive report on the UK and
European branded coffee and sandwich chain markets
• Research projects: qualitative and quantitative customer insight programmes, competitive
analysis, best practices and commercial due diligence for leading UK and global clients
• Project Café7 release May 2007. European Coffee Shop Market 2007 released October 2007
• In addition to bespoke research and strategy consulting to the coffee sector, Allegra also
pioneers a series of definitive retail publications including:
- How Women Shop!™ 2007
- Ethical Consumer Trends UK – Clean Energy and Energy Efficiency 2007
- Ethical Brands – Implications for the Food sector
• In 2007, Allegra established an industry Think Tank - The Food Strategy Forum
• Senior Food & Beverage Executive Top of Mind Survey completed 30 October 2007
• Currently working on a new report: ‘Food on the Move’
Page 4
CLIENTS
Allegra Strategies provides research and consulting products and services to
a wide variety of leading UK and global corporations. Our recent client list
includes:
Page 5
1.
Background on Allegra Strategies
2.
Consumer Food Mega-Trends
3.
Market Landscape
4.
Case Study: Branded Coffee Chain
Segment
5.
Future Sandwich Market Developments
6.
Q&A
Page 6
Allegra’s research and analysis over the past decade identifies 7
Mega-trends driving developments across the global food sector, with
important consequences for the UK sandwich market.
1. Healthy Eating
2. Food-on-the-Move
3. Premiumisation / ‘Culture of Food’
4. Greater Variety and Choice
5. Expansion of Branded Chain Concepts
6. Growing Importance of ‘Experience’
7. Ethical Consumerism
Page 7
GLOBAL FOOD MEGA-TREND - HEALTHY EATING
• Societal concern with obesity in the UK
• Press and government programmes
have stimulated a growing focus on
healthy eating
• Greater awareness of nutrition
• Proactive efforts by leading
supermarkets and foodservice chains
• Trends towards simpler, more natural,
fresh foods and organic produce
• Dramatic reduction in trans fats
• Reduced additives and preservatives
Page 8
Allegra’s national food buying behaviour consumer research identified a major trend towards
healthy eating. Nearly three-quarters of UK consumers interviewed stated that they are more
concerned with healthy eating than they were five years ago. 55% believe that they should be
eating healthier still.
CONSUMERS’ INCREASED CONCERNS ABOUT HEALTHY EATING [NATIONAL FOOD BUYING
RESEARCH]
Response to Prompt: I’m more concerned with healthy eating than I was 5 years ago.
Percentage80%
73.8%
70%
60%
50%
40%
30%
19.8%
20%
10%
6.3%
0%
Agree Strongly/Agree
Neither
Disagree Strongly/Disagree
Source: Allegra Strategies National Food Buying Behaviour Interviews and Analysis, 2006
Page 9
GLOBAL FOOD MEGA-TREND – FOOD-ON-THE-MOVE
• Also known as Convenience-led
consumption, Dash-board Dining or
Grab&Go
• Busier and more mobile lifestyles
• Consumers are eating more meals out-ofthe- home
• Increasing snacking and grazing
• ‘Three meals a day’ is now an out-dated
stereotype in much of Britain
• Takeaway food and beverages have risen
substantially in the past decade and is now
widespread
• Retailers, foodservice operators and food
manufacturers have responded with a wide
variety of convenience offers
Page 10
Nearly two-thirds of UK consumers eat out-of-the-home at least once per week or
approximately two meals per week on average.
This trend has grown substantially over the past decade with the introduction of more
convenience offers and more mobile consumption habits.
EATING OUT-OF-THE-HOME [NATIONAL FOOD BUYING RESEARCH]
How many times per week on average would you eat meals out-of-home?
Percentage
25%
19.5%
20%
18.2%
15%
13.2%
12.7%
10.7%
10%
9.1%
6.8%
5.3%
5%
3.4%
1.1%
0%
7 times or
more per
week
5 to less
than 7 times
per week
3 to less
than 5 times
per week
2 to 3 times
per week
Once per
week
2 to 3 times
per month
Source: Allegra Strategies National Food Buying Behaviour Interviews and Analysis, 2006
Once a
month
Once every
two months
Once or less
every
quarter
Very
seldom/
don't
normally eat
out
Page 11
A quarter of UK consumers under 35 stated that they eat many meals ‘on-the-move’, an
important current and future market for sandwich players. Allegra’s national food sample
reveals that younger consumers are more likely to eat unstructured meals.
EATING ON-THE-MOVE [NATIONAL FOOD BUYING RESEARCH]
Response to Prompt: I eat many of my meals on-the-move.
Percentage
30%
26.3%
24.0%
25%
18.8%
20%
15%
12.7%
11.5%
10%
5%
3.0%
0%
18-24
25-34
35-44
45-54
55-64
65+
Source: Allegra Strategies National Food Buying Behaviour Interviews and Analysis, 2006
Page 12
GLOBAL FOOD MEGA-TREND - PREMIUMISATION / ‘CULTURE OF FOOD’
• Historically high relative wealth has
increased discretionary income
• Growing demand for higher quality products
and luxury treats, provides food players with
opportunities to increase revenue
• A few examples:
- Growing popularity of deli concepts
- Rise of farmers markets
- Premium supermarket own-label
- Shift from instant to roast & ground
coffee
- Premium niche brands, e.g. Kettle
Crisps
• Rise of celebrity chefs and TV programmes
e.g. Master Chef, Hell’s Kitchen, Jamie
Oliver
Page 13
GLOBAL FOOD MEGA-TREND - GREATER VARIETY AND CHOICE
• Increased travel and exposure to different
cultures is driving more open-mindedness
• Increased acceptance and enjoyment of a
wider variety of food types and multi-cultural
cuisines
• More demanding consumers expect a higher
degree of choice and quality
• Wide variety of product formats and
channels to market
• Variety in tastes is particularly evident from
the diversity of supermarket shelves and
restaurant menus of today
• 24-hour access to food purchases is
potentially a contributor to obesity
Page 14
GLOBAL FOOD MEGA-TREND – EXPANSION OF BRANDED CONCEPTS
• A global trend to consolidation in retail and
foodservice
• Branded chain foodservice concepts, e.g.
Costa, Starbucks, Pret, Carluccio’s, Subway,
La Tasca, Pizza Express have proliferated at
the expense of independent operators
• Significant growth in the quality mid-market
• Consumers shunning ‘greasy spoon’ outlets
• Despite a stated ‘emotional’ link to
independent operators, UK consumers are
gravitating to brands that they trust, associate
with and aspire to
• Brands create a sense of ‘fashion’ and
excitement
• Financial strength and operational excellence
of branded operators provide distinct
advantage
Page 15
Growing brand awareness is evident as consumers increasingly
use foodservice chain concepts. Vibrant brands that connect to
a broad but well-defined target audience are those that gain most
customer recognition.
AVERAGE NUMBER OF MAJOR BRANDS RECOGNISED UK BRANDED COFFEE SHOP VISITORS, 1999
- 2007 [COFFEE SHOP INTERVIEWS]
Response to Question: Which of the following coffee/sandwich shops brand do you know?
Number of Brands
Year-on-Year change
11.5
April '07
10.2
Nov'05
8.3
May '04
May '03
7.9
Mar '02
6.8
Nov '00
4.7
Jun '99
4.2
0
1
2
3
4
5
6
7
8
9
10
11
Apr ‘07
+12.7%
Nov ‘05
+22.9%
May ‘04
+ 5.1%
May ‘03
+ 16.2%
Mar ‘02
+ 44.7%
Nov ‘00
+ 11.9%
12
Number of Brands Recognised
Source: Allegra Strategies Coffee Shop Interviews & Analysis, April 2007
Page 16
GLOBAL FOOD MEGA-TREND – IMPORTANCE OF CUSTOMER
‘EXPERIENCE’
• High quality, themed store environments
have become important tools to unlocking
consumer spend
• Rise of ‘3rd space’ as a social venue –
importance of a ‘my time’ space is not to be
underestimated
• Sense of ‘urban casualness’ is encapsulated
in the successful Starbucks, including the
use of sofas, hand-written menu boards and
themed graphics
• New McDonald’s stores now feature vibrant,
café-like environments
• Supermarkets such as M&S and Waitrose
are food-shopping
• Tastings, customer education and events
Page 17
GLOBAL FOOD MEGA-TREND – ETHICAL CONSUMERISM
• Ethical dimensions are increasing in
consumer purchase decisions. Key areas
include:
• Environmental impact / Food miles
• Fairtrade
• Local sourcing
• Organics
• Social responsibility
• Impetus has been driven by corporate
activities and widespread media coverage
• Growing concern with climate change but
also an important focus on food provenance,
localness and reduced packaging
• Ethical positioning is a business imperative
Page 18
While, 9% of visitors expressed strong opinions in favour of Fairtrade
coffee, a high 57% of visitors remain passively indifferent to ethical
coffee purchases.
IMPORTANCE OF FAIRTRADE [COFFEE SHOP INTERVIEWS]
Response to Prompt: It is important to me to order Fairtrade coffee whenever I can.*
Percentage of Respondents
40%
34.2%
28.3%
30%
23.8%
20%
10%
8.7%
5.0%
0%
Agree Strongly
Agree
Neither
Disagree
Disagree Strongly
Note*: Scale 1 to 5; where 1 = Agree Strongly; 2 = Agree; 3 = Neither; 4 = Disagree; 5 = Disagree Strongly
Source: Allegra Strategies Coffee Shop Interviews & Analysis, April 2007
Page 19
1.
Background on Allegra Strategies
2.
Consumer Food Mega-Trends
3.
Market Landscape
4.
Case Study: Branded Coffee Chain
Segment
5.
Future Sandwich Market Developments
6.
Q&A
Page 20
With its highly concentrated population of 60 million and increasingly brand-led,
food-conscious consumers, the UK provides a fertile market for quality sandwich
providers.
• The UK is a hybrid between the US and Europe, combining a strong chain presence and
convenience-driven behaviour, with the food and café culture of Europe
• Growing consumer ‘food culture’ has emerged over the past 5 years, e.g the success of Waitrose,
M&S food, Taste the Difference, Finest and branded food chains such as Pret, EAT and Carluccio’s
• Café culture has risen exponentially over the past decade, with 47% of consumers visiting a coffee
venue at least once per month. 67% of adult consumers eat out-of-the-home at least once per week
• UK out-of home Food & Beverage market is estimated at £37 billion
- Estimated 228 million daily meal occasions in the UK
- UK day-time convenience F&B market is estimated at £14bn and £3.3bn in London
- Sandwich market estimated at £3.5 - £3.7 billion
• Significant growth of the branded coffee/sandwich chain market, currently at £1.3bn. Forecast to
reach a market size in excess of 6,500 units with total sales of £2.5bn within a decade
- Pret leads the branded food-focused coffee segment in sales and outlets, followed by EAT
• M&S, Sainsbury’s Local, Tesco Express, Boots and Greggs provide strong competition within the
lunch time/sandwich market, as does fast-growing chain Subway, with 986 stores currently
Page 21
The UK out-of-home food and beverage market is estimated at £37
billion and is expected to grow at 1.6% per annum to 2010. Allegra
estimates that the daytime on-the-move market at approximately
£14 billion.
ESTIMATED ANNUAL TURNOVER – UK OUT-OF-HOME FOOD & BEVERAGE MARKET
£ Billions
40
35
33.2
33.9
34.1
35.3
35.7
36.5
37.0
37.6
38.1
38.9
Compound
Annual
Growth Rate
2006 - 2010F
1.6%
30
25
20
15
10
5
0
2001
2002
2003
2004
2005
2006
2007F
2008F
2009F
2010F
Source: ONS, Defra, Allegra Strategies Analysis, 2007
Page 22
The UK comprises approximately 130,000 Vat registered
foodservice businesses with the total number of outlets estimated
around 170,000.
TOTAL NUMBER OF UK FOODSERVICE ENTERPRISES, 1996 – 2007E
Restaurants
and cafés account for a growing 50%
No. of Businesses
140,000
130,000
121,030
114,795
120,000
110,000
100,000
107,460
109,270
105,345
105,315
106,440
3,655
4,015
4,140
4,380
3,845
11,645
11,410
11,195
11,030
12,110
111,920
4,620
10,955
4,850
10,775
117,385
5,065
10,525
5,220
10,405
124,080
5,335
5,325
70,000
44,385
43,925
43,690
43,690
46,355
10,220
130,825
5,375
10,200
10,250
Total Market
2.0%
Canteens & Catering
3.6%
Hotels
1.5%
90,000
80,000
128,315
share.
Compound Annual
Growth Rate
1996 – 2007E
47,395
48,430
44,020
44,850
52,815
54,400
56,975
2002
2003
2004
49,175
50,755
-
51,500
Bars & Pubs
1.4%
60,000
50,000
40,000
30,000
20,000
45,195
45,900
47,325
48,435
49,840
51,495
1996
1997
1998
1999
2000
2001
59,330
62,005
63,750
Restaurants & Cafes
3.2%
10,000
0
2005
2006
2007e
Note: Figures are for VAT registered businesses ONLY and numbers are start of year figures
Source: ONS Business Activity, Allegra Analysis, 2007
Page 23
McDonald’s remains the largest foodservice chain in terms of number of
outlets. However, this gap is narrowing with Subway soon to reach
1,000 UK outlets.
SELECTED UK SANDWICH/FOOD-TO-GO OPERATORS STORE NUMBERS, MAY 2007
Number of Outlets
1400
1,190
1200
1000
800
1,098
975
735
702
555
600
400
540
326
305
170
200
165
162
145
133
132
65
44
29
18
0
Mc
Greggs Subway Tesco Boots Costa Starbuck SainsExpres Sand. Coffee
s
bury's
Donald's
s
Local
Caffè Caffè Bakers Pret A
BB’s O'Brien's M&S
Nero Ritazza Oven Manger Coffee &
Simpl
Muffins
y
Food
EAT
Coffee Bagel Benug
Republic Factory
o
Source: Allegra Strategies Analysis, 2007
Page 24
A variety of players are present in the market, each targeting a specific niche. Allegra expects
the main value growth for sandwich players to occur in the upper right-hand quartile.
UK SANDWICH/FOOD-TO-GO OPERATOR POSITIONING MAP
Price
Starbucks
ILLUSTRATIVE
+
Costa Caffè Nero
Caffè Ritazza
Benjy’s Bakers
(Defunct) Oven
Greggs
Source: Allegra Strategies Analysis 2007
Waitrose
Pret Benugo’s
Sandwiche
Subway
EAT
s
McDonald’
M&S
s
Simply
BB’s
Sainsbury’
Food
Coffee
s Local
+
&
Quality Food Credentials
Muffins
Tesco Boots
Express
Page 25
Recent Allegra industry research identified Rising food costs as the single biggest challenge
for UK food & beverage players and is currently a major concern for sandwich manufacturers
and sandwich retailers.
Given intensifying competition and the need to differentiate means that Innovation/New
Product Development is the second most important challenge currently.
TOP 5 CHALLENGES MENTIONED BY UK FOOD & BEVERAGE EXECUTIVES, OCT. 2007
RANKING
1
2
3
4
5
KEY CHALLENGE
Rising food/ingredient costs
Innovation & new product development
Sustainability/Environment
Intense competition
Attracting & retaining staff
-
Source: Allegra Strategies Analysis Food Strategies Forum Top of Mind Survey, Preliminary Data, October 2007
Page 26
1.
Background on Allegra Strategies
2.
Consumer Food Mega-Trends
3.
Market Landscape
4.
Case Study: Branded Coffee Chain
Segment
5.
Future Sandwich Market Developments
6.
Q&A
Page 27
MARKET OVERVIEW
• Branded coffee shop market now totals 3,000 units, set to nearly double over the next
decade
• Regional growth will account for the lion’s share of growth in outlets at circa 10% per annum
• London is still growing, forecast at 6-7% per annum for the next 3-4 years
• Branded segment turnover is valued at £1.3 billion in 2007 and to exceed £2.5 billion by
2017
• Top 3 coffee-focused players: Starbucks, Costa Coffee and Caffè Nero accounted for 1,400
units and each adding 40-60 outlets per year
• Branded food-focused players Pret A Manger and EAT have accelerated growth plans
• UK café culture is here to stay. The popularity of coffee bars continues to grow as a
significant proportion of UK consumers make coffee shops part of their daily lives
• Coffee shops have become important venues not only to drink coffee and other beverages,
but also to eat, relax, socialise and conduct business meetings
• Major branded chains Starbucks, Costa Coffee, Caffè Nero, Pret A Manger and M&S Cafés
have set strong benchmarks on product variety, coffee quality and store environments
• Consumers now expect these features across a growing set of UK foodservice, leisure and
shopping venues
• An increasingly important channel for sandwich manufacturers
Page 28
The UK branded coffee market has quadrupled since 1999 to reach an estimated
3,000 outlets a and accounting for 30% of the defined coffee shop market in 2007.
Allegra predicts the branded market to grow by more than 8% to 2010 and
ultimately to double within 10 years.
Compound Annual
Growth Rate
Dec 2006 - Dec 2010F
TOTAL NUMBER OF UK COFFEE SHOP OUTLETS, BY TYPE, DEC 1997 - DEC 2010F
No. of Outlets
11,000
10,795
Total Market
4.2%
1,651
Non-specialists
-Hotels
-Supermarkets
-Department/Book stores
-Service Stations
5.5%
Independent Operators
0.9%
Branded Chains
-Coffee Focused
-Food-Focused
8.6%
10,443
10,077
10,000
9,651
9,171
9,000
8,746
8,322
7,674
8,000
1,160
7,305
6,843
7,000
6,160
6,000
5,400
796
1,252
4,756
485
503
1,335
1,320
1,405
714
5,092
518
522
4,453
4,000
1,484
1,565
897
5,093
5,000
9,285
4,587
4,760
4,870
4,967
4,992
5,125
5,158
5,041
4,345
4,260
3,000
3,900
4,000
4,100
2,000
1,000
0
371
590
778
1,382
1,784
2,056
2,190
2,402
2,624
2,869
2,973
Dec-97 Dec-98 Aug-99 Dec-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 Dec-06 Apr-07
*Note: Non-specialist segment excludes branded chains who have partnered with non-specialist players
Source: Allegra Strategies Industry Interviews and Analysis, 2007
3,502
3,752
3,985
3,205
Dec07F
Dec08F
Dec09F
Dec10F
Page 29
Coffee-focused segment, e.g. Starbucks, Costa Coffee and Caffè Nero is set
to grow at 9% to 2010 vs. 8% for the food-focused segment, e.g. Pret and Eat.
TOTAL NUMBER OF UK BRANDED COFFEE SHOP OUTLETS, BY SEGMENT, DEC. 2000 – DEC. 2010F
No. of Outlets
4,500
3,985
4,000
3,752
3,502
3,500
3,205
2,624
2,424
2,500
1,000
500
1,382
Coffee-Focused
8.9%
780
746
663
558
468
1,226
7.6%
716
1,784
635
1,500
Food-Focused
722
2,190
2,030
2,000
969
910
850
2,869
3,000
Compound Annual
Growth Rate
Dec 2006 - Dec
2010F
Total Branded
Chain Market
8.6%
1,395
1,527
Dec-02
Dec-03
1,708
1,878
2,147
2,425
2,652
2,843
3,016
914
0
Dec-00
Dec-01
Dec-04
Dec-05
Dec-06
Dec-07F Dec-08F Dec-09F Dec-10F
Source: Allegra Strategies Industry Interviews and Analysis, 2007
Page 30
COFFEE SHOP CONSUMER RESEARCH OVERVIEW
• 24% of the UK adult population or approximately 11 million consumers visit coffee shop at
least once per week. 47% of UK adults – 20 million individuals – visit at least once per
month
• 76% tend to visit their favourite coffee shop vs. 74% in 2005, strengthening brand loyalty
• Location is the main factor influencing a consumer’s choice of a given coffee
shop/sandwich shop, at 63% in 2007 vs. 67% in 2005
• Atmosphere has grown in importance as a key influencing factor for UK coffee shop
visitors
• Sandwiches are purchased on a regular basis by 50% of coffee shop visitors
• Take-away is more important than in the past 12-18 months according to 38% of visitors
• Brand awareness of coffee and sandwich bar brands is high and growing
• Allegra’s national telephone sample indicated brand awareness of 10.9 brands on average
across the UK, revealing how far branded chains have penetrated the UK consumer
mindset
• Only 12% of adults UK rank an independent coffee shop as their favourite
• Pret A Manger leads in the food-focused segment with leadership in food quality and
service
• Caffè Nero ranks highest among high street chains on overall key success factors
Page 31
According to Allegra’s national telephone sample, 24% of the UK adult
population, approximately 11 million individuals, visit coffee shops at least once
per week.
47% of the adult population, more than 20 million consumers, visit coffee shops
at least once per month.
FREQUENCY OF VISITS [CONSUMER TELEPHONE INTERVIEWS]
Response to Question: In general, how often do you visit coffee shops?
Percentage of Respondents
50%
43.6%
45%
40%
35%
30%
25%
23.5%
20%
15.5%
15%
9.3%
8.1%
10%
5%
0%
Once a week
Once a fortnight
Once a month
Less than once a month
Very rarely / never
Source: Allegra Strategies Household Telephone Interviews and Analysis, April 2007
Page 32
25% of coffee shop visitors frequently purchase food items within coffee bars.
A further 47% of customers occasionally make food purchases in coffee shops.
Only 16.5% of customers never buy food in coffee shops.
FREQUENCY OF FOOD PURCHASED IN COFFEE SHOPS [COFFEE SHOP INTERVIEWS]
Response to Question: Do you normally purchase food with your drink in coffee shops?
Percentage of Respondents
50%
47.3%
45%
40%
35%
30%
25.1%
25%
20%
16.5%
15%
11.2%
10%
5%
0%
Often
Sometimes
Rarely
Never
Source: Allegra Strategies Coffee Shop Interviews & Analysis, April 2007
Page 33
1.
Background on Allegra Strategies
2.
Consumer Food Mega-Trends
3.
Market Landscape
4.
Case Study: Branded Coffee Chain
Segment
5.
Future Sandwich Market Developments
6.
Q&A
Page 34
Allegra’s national research highlights themes of healthy eating, local origin of products and
exploring new tastes to be important on-going and future trends.
Despite trends to premiumisation, value-for-money will continue to be important.
UK CONSUMERS’ EXPECTED FUTURE CONCERNS AND INTERESTS [NATIONAL FOOD BUYING
RESEARCH]
In the years to come, what will you be generally more focused on?
Percentage
80%
69.8%
70%
60%
50%
43.8%
40%
34.1%
33.3%
30.8%
30%
21.2%
20%
10%
0%
Healthy eating
Greater value-formoney
Local origin of products
Exploring new tastes
Food safety
Ethical consumption
Note: Multiple responses; answers were prompted and randomised when asked
Source: Allegra Strategies National Food Buying Behaviour Interviews and Analysis, 2006
Page 35
Allegra’s Food Strategy Forum has examined the corporate competencies required to lead in
the rapidly evolving Food & Beverage sector.
EMERGING FRONTIER OF CRITICAL CORPORATE COMPETENCIES
ILLUSTRATIVE
High Importance
Price Competitiveness
COMPETITIVE FRONTIER
Service Excellence
Cost-efficiency
Brand Authenticity
Production Volumes
Pre-defined
Production Runs
Flexible Operations
Multi-reach
Capacity to
Innovate
Talent Management
Product Freshness
Traditional
Working Practices
Customised Choice
Ethical Values
Premium Provenance
Collaborative Mindset
Customer Experience
Declining
Importance
Rising
Importance
Low Importance
Page 36
FUTURE CONSUMER BEHAVIOUR
• Eating out more
• More informed
• More aware of ‘food culture’
• More demanding in terms of quality and
service
• Busier and more mobile
• More informal
• More adventurous
• Variety-driven
• Complex set of value expectations
Page 37
FUTURE PRODUCT DEVELOPMENTS
• Healthier
• Tasty and flavoursome
• Fresh and Natural
• Wider variety and more exotic fillings (incl.
Ethnic)
• Artisanal breads
• Local provenance
• Premium
• Convenience
• Organics
• Smaller portions
• Priced to reflect segmentation
Page 38
FUTURE ROUTES TO MARKET
• More diverse:
• Foodservice
• Traditional Retail and Convenience formats
• Widening set of non-food players
• Independent sandwich bars
• Workplace
• More sophisticated, more segmented
• Great emphasis on branded chain concepts
• Increased competition
• Sandwiches increasingly competing against other
products for shelf space
• In the short-term, more cost-driven due to food
price rises
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FUTURE WINNING BRAND CREDENTIALS
• Innovative packaging
• Authentic
• Ethical
• Informative
• Honest
• Convenient
• Communicate a compelling story
• Deliver consumer 'Experience'
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1.
Background on Allegra Strategies
2.
Consumer Food Mega-Trends
3.
Market Landscape
4.
Case Study: Branded Coffee Chain
Segment
5.
Future Sandwich Market Developments
6.
Q&A
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