Table of Contents
Issues in the Market
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- Introduction
- Hypothesis/story
- Definition
- Major themes of report
Insights and Opportunities
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- Targeting natural alternative sweeteners at AB consumers
- Hey big Splenda!
- Fruit sugars alongside the fresh fruit section of the store
- Targeting new mothers trying to shed the pounds after pregnancy
Market in Brief
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- Caster glance at the market
- But healthy eating is hitting sugar sales
- And the value of the artificial sweetener market has collapsed
- But it’s not all bad news
- Distribution changes affecting brand share
- Changing demographic map changing market dynamics
- No let-up in the immediate future
- Healthy but wise
- A sweeter future for healthier products
Fast Forward
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- Trend: Fit or Fat
- What is it?
- Touchpoints
- Trend: Market as Conversation
- What is it?
- Touchpoints
- Trend: Menaissance. Hasta la vista Herr Metro; guten Morgen Herr Retro!
- What is it?
- Touchpoints
Internal Market Environment
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- Mixed fortunes for “sweetening occasions”
- Fewer people having hot drinks
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- Figure 1: Consumption of hot drinks in the last 12 months, 2002-06
- Fewer people eating cold breakfast cereals
- But more people eating hot cereals
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- Figure 2: Consumption of breakfast cereal in the last 12 months, 2002-06
- Limiting the number of sweetening occasions at breakfast
- Are there opportunities for sugar and sweeteners around hot cereals?
- Home baking
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- Figure 3: UK market for home baking products, 2001-06
- Different sugars needed
- Growth in the number of consumers avoiding sugar
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- Figure 4: The number of people with diabetes in the UK, 1996-2010
- Obesity – the consumer’s response:
- A rise in those trying to slim…
- …and a rise in healthy eaters
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- Figure 5: Agreement with the statement ‘I avoid sugar’ by agreement with selected lifestyle statements on diet & health, 2006 (Column %)
- Growing number of ethical consumers
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- Figure 6: Agreement with the statements ‘It’s worth paying more for organic food’ and ‘I buy fair trade products when available’, 2002-06
Broader Market Environment
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- AB socio-economic status growing
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- Figure 7: Changes in socio-economic status, 2001-06
- Health concerns
- An older consumer base …but is it a wiser one?
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- Figure 8: Changes in the UK demographic profile, by age, 2001-06
- Reform of the EU sugar regime
- Worry about profitability
Competitive Context
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- Alternative sweeteners popularity has risen with GI diets
- Xylitol
- Sweetening with honey is becoming mainstream
- Using fruit instead of sugar
- Fructose sugars
- Fruit sugars
- Agave Nectar
Strengths and Weaknesses in the Market
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- Sugar
- Artificial sweeteners
Who’s Innovating?
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- The low-calorie sugar sector – the manufacturers’ response to health issues
- Developing the fruit sugar sectors
- Jockeying for position in the Artificial Sweetener market
- The search for more natural sweeteners
- Drawing on influences further afield
- Other developments that could come to the UK
- New Product Briefs
Market Value and Forecast
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- Figure 9: UK retail volume and value sales of sugar and artificial sweeteners, 2001-06
- Market performance determined by the sugar sector
- A spoonful of EDLP helps the value go down
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- Figure 10: UK retail value sales of sugar and artificial sweeteners, by sector, 2002-06
- Contradicting the health trends
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- Figure 11: UK retail volume sales of sugar and artificial sweeteners, by sector, 2002-06
- More equals less
- The future
- Forecast
- Struggling sales forecast
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- Figure 12: Forecast of the UK market for sugar and artificial sweeteners, by value, 2006-11
- Figure 13: Forecast of the UK market for sugar and artificial sweeteners, by volume, 2006-11
- Dissolving sugar sales
- Changes to the EU sugar regime…
- ... will force manufacturer to develop niche premium segments
- Changing the image of the artificial sweeteners sector is essential
- Greater number of slimmer should sustain growth
- Factors used in the forecast
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Segment Performance
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- Sugar
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- Figure 14: UK retail volume and value sales of sugar, 2001-06
- Dissolving volumes
- Fairtrade growing faster than organic
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- Figure 15: UK retail value sales of sugar, by type, 2002-06
- Speciality sugars shoring up market value
- White granulated
- Caster sugar
- Demerara
- Brown sugars
- Icing sugar
- Golden granulated
- Low calorie sugar
- Artificial sweeteners
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- Figure 16: UK retail sales of artificial sweeteners, 2001-06
- Imploding values
- Sweetening agents
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- Figure 17: Leading artificial sweetener brands, with main sweetening agents, 2006
- Don’t write off saccharin just yet!
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- Figure 18: UK retail sales of artificial sweeteners, by type, by value, 2002-06
- New-generation brands fighting for ascendancy
- What next?
- Potential threats from more natural sweeteners
- Is putting artificial sweetener suppliers on the back foot?
Market Share
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- Sugar
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- Figure 19: Brand shares in the UK retail sugar market, by value, 2002-06
- Leading brands losing ground
- Sweet success for Billington’s
- Low-calorie sugars
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- Figure 20: Brand shares in the UK retail light sugars market, 2006
- Silver Spoon developing the market
- Artificial sweetener
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- Figure 21: Brand shares in the UK retail artificial sweetener market, 2002-06
- Splenda continues to gain share
Companies and Products
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- Company profiles
- The Silver Spoon Company
- Tate & Lyle
- McNeil Nutritionals
- Napier Brown Foods
- Merisant
- Hermes Sweeteners
- Reckitt Benckiser
- Danisco
- Trade Aid
Brand Communication and Promotion
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- Figure 22: Main monitored media advertising expenditure on sugar and artificial sweeteners, 2002-06*
- Different pictures
- Not a lot happening for sugar
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- Figure 23: Main monitored media spend for sugar, by advertiser, 2002-06*
- The Splenda effect
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- Figure 24: Main monitored media spend for artifical sweetener, by advertiser, 2002-06*
- Seasonality
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- Figure 25: Main monitored media spend, by quarter, 2005
- New Year resolutions
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Channels to Market
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- Sugar
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- Figure 26: UK retail sales of sugar, by outlet type, 2002-06
- Artificial sweetener
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- Figure 27: UK retail sales of artificial sweetener, by outlet type, 2002-06
The Consumer – Sugar: Usage and Frequency
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- Figure 28: Usage of sugar by occasion, October 2006
- Hot drinks need sugar
- Older AB consumers use sugar to cook/home bake…
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- Figure 29: Usage of sugar, by socio-economic status, October 2006
- …as do women…
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- Figure 30: Propensity to use sugar in homebaking, by gender, age and lifestage, October 2006
- Younger consumers use sugar on cereals and in hot drinks…
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- Figure 31: Usage of sugar in hot drinks and cereals, by age, October 2006
- Opportunities for growth in declining markets
- Cereals are a bit different
- Children are a key determinant
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- Figure 32: Usage of sugar by occasion, by presence of own children in household, October 2006
- A little … but often
- Home bakers are the lightest users
- Sugar users use hot drinks most frequently
- Daily sugar users most likely to use in on sugar cereal
- Frequency of usage
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- Figure 34: Frequency of usage, October 2006
- Frequency of usage is dependent on usage occasion
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- Figure 35: Frequency of usage by gender, age and socio-economic status, October 2006
- Once a week or less
- Daily/twice three times a day
- Motivations for not using sugar
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- Figure 36: reasons for not eating sugar, October 2006
- But health reasons do play a part
- Non-users prefer natural rather than artificial sweeteners
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Consumer 2 – Artificial Sweeteners: Who – Usage and Frequency?
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- Artificial sweeteners
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- Figure 37: Usage of artificial sweeteners in the last 12 months, 2002-06
- More people using sweeteners
- Over-55s are the key user groups for artificial sweeteners
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- Figure 38: Usage of artificial sweeteners in the last 12 months, by gender, age, and socio-economic status, 2006
- DEs are the heaviest users…
- ABs are the lighter users, despite their health concerns
- Women are the key target audience for artificial sweeteners
- Targeting new mothers with Bounty packs
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- Figure 39: Attitudes towards health, slimming, sugar avoidance and artifical sweetener usage, by presence of children in household, 2006
- Locking them into the brand
- The relationship between sugar and sweeteners
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- Figure 40: Usage of artificial sweeteners, by agreement with the statement ‘I avoid sugar’, 2006
- Dual usage…
- …not a complete replacement
- Usage by slimmers
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- Figure 41: Usage of artificial sweeteners in the last 12 months, by adults who are trying to slim, 2006 (column %)
- Dieting is an important motivation
- Medium users are most likely to be slimmers
- Help for the obese
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- Figure 42: Usage of artificial sweeteners in the last 12 months, by BMI segments, 2006 (column %)
- Which other consumer groups use artificial sweeteners?
- Hot drink usage
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- Figure 43: Usage of artificial sweeteners, by consumption of hot drinks in the last 12 months, 2006 (row %)
- Coffee users are most likely to use artificial sweeteners
- Breakfast cereal
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- Figure 44: Usage of artificial sweeteners by consumption of breakfast cereal in the last 12 months, 2006 (row %)
- Hot breakfast cereal eaters use the most artificial sweeteners
- Changing their diets, but not using sweeteners
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- Figure 45: Usage of artificial sweeteners in the last 12 months, by agreement with selected lifestyle statements on diet & health, 2006
- Healthy eating versus slimming
Consumer 3 – Attitudes towards the Market
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- Sugar versus artificial sweeteners
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- Figure 46: Attitudes towards sugar compared to artificial sweeteners, by detailed demographics, October 2006
- Taste is the key barrier to growth for sweeteners
- But is it all in the mind?
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- Figure 47: Agreement with statement sugar is ‘better tasting’ than artifical sweeteners, by gender, age and socio-economic status, October 2006
- Older adults more suspicious
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- Figure 48: Agreement with statement sugar is ‘more natural’ and better for you than artificial sweeteners, by age group, October 2006
- Highlighting indulgence and naturalness are two key product attributes
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- Figure 49: Agreement with statement sugar is ‘more natural’ and ‘more indulgent’, by socio-economic status, October 2006
- Sweeteners fails to excite home bakers
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- Figure 50: Propensity to agrree that sugar is better than artifical sweeteners for baking/cooking, by gender, age and socio-economic status, October 2006
Appendix
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- Introduction
- Advertising data
- Abbreviations
- Internal market environment
- Hot drinks
- Situation is on-going
- Heavy users declining
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- Figure 51: Weight of usage for coffee, tea, milk drinks (including chocolate & cocoa), 2002-06
- Those that do consume are cutting back
- Sugar avoidance, by consumption of hot drinks
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- Figure 52: Agreement with the statement ‘I avoid sugar’, by consumption of hot drinks in the last 12 months, 2006
- Tea preferred to coffee by sugar users
- Cereals – Weight of usage declining
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- Figure 53: Usage of breakfast cereals by type, 2002-06
- Some like it hot
- Sugar avoidance
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- Figure 54: Agreement with the statement ‘I avoid sugar’, by consumption of breakfast cereal in the last 12 months, 2006
- Rising health and slimming concerns
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- Figure 55: Adults who are trying to slim, 2002-06
- Figure 56: Agreement with selected lifestyle statements on diet & health, 2002-06
- Overweight and obese and more likely to avoid sugar
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- Figure 57: Agreement with the statement ‘I avoid sugar’, by BMI segments, 2006
- But most are still consuming sugar
- Rise in diabetes
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- Figure 58: The number of people with diabetes in the UK, 1996-2010
- External market environment
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- Figure 59: Agreement with selected lifestyle statements, by demographic sub-group, 2006
- Figure 60: Adults who are trying to slim, by demographic sub-group, 2006
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- Figure 61: Agreement with the statement ‘I avoid sugar’, by demographic sub-group, 2002
- Figure 62: Agreement with the statements ‘It’s worth paying more for organic food’ and ‘I buy fair trade products when available’, by demographic sub-group, 2006
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- Figure 63: Agreement with the statement ‘I avoid sugar’, by demographic sub-group, 2006
- Brand Communication and Promotion
- Sugar
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- Figure 64: Main monitored media spend on sugar, by advertisers, 2002-06
- Artificial sweeteners
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- Figure 65: Main monitored media spend on artificial sweeteners, by advertisers, 2002-06
- Consumer 1 – Detailed Demographics
- Usage occasions
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- Figure 66: Usage of sugar by occasion, by detailed demographics, October 2006
- Frequency of usage
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- Figure 67: frequency of usage by detailed demographics, October 2006
- Key take-outs
- A daily fix
- Younger consumers stick to once a day
- Affluent groups are lighter users
- Consumer 2 – Detailed Demographics
- Artificial sweeteners
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- Figure 68: Usage of artificial sweeteners in the last 12 months, by demographic sub-group, 2006
- Consumer 3 – Detailed Demographics
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- Figure 69: Attitudes towards sugar compared to artficial sweetener, by detailed demographics, September 2006
- Figure 70: Attitudes towards sugar compared to artificial sweeteners, by detailed demographics, September 2006
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